| Commodity Derivative Positions |
The following table sets forth our commodity derivative positions, presented on a net basis by period of maturity, as of June 30, 2022:
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3Q2022 |
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4Q2022 |
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1Q2023 |
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2Q2023 |
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3Q2023 |
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4Q2023 |
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1Q2024 |
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2Q2024 |
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| NYMEX WTI Crude Swaps |
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| Average Volume Per Day (bbl) |
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3,000 |
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3,000 |
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2,500 |
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2,400 |
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2,807 |
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2,657 |
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462 |
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462 |
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| Weighted Average Swap Price ($/bbl) |
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$ |
73.01 |
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$ |
69.20 |
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$ |
54.40 |
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$ |
54.26 |
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$ |
54.92 |
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$ |
54.93 |
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$ |
58.75 |
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$ |
58.75 |
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| NYMEX WTI Crude Collars |
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| Average Volume Per Day (bbl) |
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15,625 |
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12,636 |
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7,917 |
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6,181 |
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4,891 |
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2,446 |
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| Weighted Average Purchased Put Price ($/bbl) |
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$ |
59.22 |
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$ |
58.06 |
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$ |
55.79 |
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$ |
50.67 |
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$ |
70.00 |
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$ |
65.00 |
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| Weighted Average Sold Call Price ($/bbl) |
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$ |
84.70 |
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$ |
82.23 |
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$ |
74.85 |
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$ |
65.65 |
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$ |
92.37 |
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$ |
85.75 |
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| NYMEX WTI Crude CMA Roll Basis Swaps |
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| Average Volume Per Day (bbl) |
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7,337 |
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1,630 |
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| Weighted Average Swap Price ($/bbl) |
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$ |
1.172 |
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$ |
1.020 |
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| NYMEX HH Swaps |
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| Average Volume Per Day (MMBtu) |
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12,500 |
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12,500 |
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10,000 |
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7,500 |
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| Weighted Average Swap Price ($/MMBtu) |
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$ |
3.745 |
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$ |
3.793 |
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$ |
3.620 |
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$ |
3.690 |
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| NYMEX HH Collars |
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| Average Volume Per Day (MMBtu) |
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15,679 |
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14,511 |
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6,417 |
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11,538 |
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11,413 |
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11,413 |
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11,538 |
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11,538 |
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| Weighted Average Purchased Put Price ($/MMBtu) |
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$ |
3.088 |
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$ |
2.854 |
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$ |
6.000 |
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$ |
2.500 |
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$ |
2.500 |
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$ |
2.500 |
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$ |
2.500 |
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$ |
2.328 |
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| Weighted Average Sold Call Price ($/MMBtu) |
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$ |
4.141 |
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$ |
3.791 |
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$ |
10.000 |
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$ |
2.682 |
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$ |
2.682 |
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$ |
2.682 |
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$ |
3.650 |
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$ |
3.000 |
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| OPIS Mt Belv Ethane Swaps |
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| Average Volume per Day (gal) |
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27,717 |
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27,717 |
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98,901 |
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34,239 |
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34,239 |
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34,615 |
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| Weighted Average Fixed Price ($/gal) |
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$ |
0.2500 |
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$ |
0.2500 |
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$ |
0.2288 |
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$ |
0.2275 |
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$ |
0.2275 |
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$ |
0.2275 |
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_______________________
1 NYMEX WTI refers to New York Mercantile Exchange West Texas Intermediate that serves as the benchmark for crude oil. NYMEX HH refers to NYMEX Henry Hub that serves as the benchmark for natural gas. OPIS Mt Belv refers to Oil Price Information Service Mt. Belvieu that serves as the benchmark for ethane which represents a commodity proxy for NGLs. As of June 30, 2022, we also had 50,000 bbls/month of incremental WTI Long Calls at $125/bbl in August and September 2022 as well as 25,000 bbls/month of incremental WTI Long Puts at $85/bbl in August and September 2022.
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| Impact of Derivative Activities on Condensed Consolidated Statements of Income |
The following table summarizes the effects of our derivative activities for the periods presented:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2022 |
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2021 |
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2022 |
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2021 |
| Interest Rate Swap gains (losses) recognized in the condensed consolidated statements of operations |
$ |
(19) |
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$ |
4 |
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$ |
64 |
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$ |
36 |
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| Commodity losses recognized in the condensed consolidated statements of operations |
(44,923) |
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(54,231) |
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(212,893) |
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(98,631) |
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$ |
(44,942) |
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$ |
(54,227) |
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$ |
(212,829) |
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$ |
(98,595) |
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| Interest rate cash settlements recognized in the condensed consolidated statements of cash flows |
$ |
(477) |
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$ |
(956) |
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$ |
(1,415) |
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$ |
(1,878) |
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| Commodity cash settlements and premiums paid recognized in the condensed consolidated statements of cash flows |
(74,037) |
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(15,678) |
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(102,507) |
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(21,925) |
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$ |
(74,514) |
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$ |
(16,634) |
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$ |
(103,922) |
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$ |
(23,803) |
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| Fair Value of Derivative Instruments on Condensed Consolidated Balance Sheets |
The following table summarizes the fair values of our derivative instruments, which we elect to present on a gross basis, as well as the locations of these instruments on our condensed consolidated balance sheets as of the dates presented:
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Fair Values |
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June 30, 2022 |
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December 31, 2021 |
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Derivative |
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Derivative |
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Derivative |
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Derivative |
| Type |
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Balance Sheet Location |
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Assets |
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Liabilities |
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Assets |
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Liabilities |
| Interest rate contracts |
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Derivative assets/liabilities – current |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
1,480 |
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| Commodity contracts |
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Derivative assets/liabilities – current |
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15,006 |
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144,541 |
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11,478 |
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48,892 |
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| Interest rate contracts |
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Derivative assets/liabilities – non-current |
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— |
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— |
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— |
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— |
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| Commodity contracts |
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Derivative assets/liabilities – non-current |
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5,597 |
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28,604 |
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2,092 |
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23,815 |
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$ |
20,603 |
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$ |
173,145 |
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$ |
13,570 |
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$ |
74,187 |
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