DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
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9 Months Ended |
Sep. 30, 2023 |
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| Notes Tables |
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| Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] |
The following table reflects the contracted volumes and weighted average prices under the terms of the Company’s open derivative contracts as of September 30, 2023:
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Average |
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Instrument |
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Daily |
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Total |
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Weighted |
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Weighted |
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Weighted |
Period |
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Type |
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Volumes |
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Volumes |
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Strike Price |
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Put Price |
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Call Price |
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Natural Gas - Henry Hub (NYMEX) |
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(MMbtu)(1) |
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(MMbtu)(1) |
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($/MMbtu)(1) |
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($/MMbtu)(1) |
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($/MMbtu)(1) |
Oct 2023 - Dec 2023 |
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calls |
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70,000 |
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6,440,000 |
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$ |
— |
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$ |
— |
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$ |
7.50 |
Jan 2024 - Dec 2024 |
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calls |
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65,000 |
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23,790,000 |
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$ |
— |
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$ |
— |
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$ |
6.13 |
Jan 2025 - Mar 2025 |
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calls |
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62,000 |
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5,580,000 |
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$ |
— |
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$ |
— |
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$ |
5.50 |
Oct 2023 - Dec 2023 (2) |
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swaps |
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71,739 |
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6,600,000 |
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$ |
2.50 |
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$ |
— |
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$ |
— |
Jan 2024 - Dec 2024 (2) |
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swaps |
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65,573 |
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24,000,000 |
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$ |
2.46 |
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$ |
— |
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$ |
— |
Jan 2025 - Mar 2025 (2) |
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swaps |
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63,333 |
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5,700,000 |
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$ |
2.72 |
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$ |
— |
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$ |
— |
Apr 2025 - Dec 2025 (2) |
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puts |
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62,183 |
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17,100,000 |
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$ |
— |
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$ |
2.27 |
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$ |
— |
Jan 2026 - Dec 2026 (2) |
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puts |
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55,895 |
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20,400,000 |
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$ |
— |
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$ |
2.35 |
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$ |
— |
Jan 2027 - Dec 2027 (2) |
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puts |
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52,607 |
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19,200,000 |
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$ |
— |
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$ |
2.37 |
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$ |
— |
Jan 2028 - Apr 2028 (2) |
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puts |
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49,725 |
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6,000,000 |
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$ |
— |
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$ |
2.42 |
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$ |
— |
(1) |
MMbtu – Million British Thermal Units |
(2) |
These contracts were entered into by Aquasition LLC in conjunction with the Term Loan (see Note 6 – Subsidiary Borrowers). |
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| Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] |
The fair value of the Company’s derivative financial instruments was recorded in the Condensed Consolidated Balance Sheets as follows (in thousands):
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September 30, |
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December 31, |
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2023 |
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2022 |
Prepaid expenses and other current assets |
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$ |
1,294 |
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$ |
4,954 |
Other assets |
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14,372 |
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23,236 |
Accrued liabilities |
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17,659 |
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46,595 |
Other liabilities |
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11,790 |
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43,061 |
The impact of commodity derivative contracts on the Condensed Consolidated Statements of Operations were as follows (in thousands):
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Realized loss (1) |
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$ |
1,971 |
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$ |
132,289 |
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$ |
2,501 |
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$ |
96,315 |
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Unrealized (gain) loss |
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(3,462) |
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(93,540) |
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(44,061) |
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13,577 |
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Derivative (gain) loss, net |
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$ |
(1,491) |
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$ |
38,749 |
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$ |
(41,560) |
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$ |
109,892 |
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| (1) |
The nine months ended September 30, 2022 includes the effect of the $138.0 million realized gain related to the monetization of certain natural gas call contracts through restructuring of strike prices.
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| Schedule of Cash Receipts and Payments on Commodity Derivative Contract Settlements [Table Text Block] |
Cash payments on commodity derivative contract settlements, net, are included within Net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows and were as follows (in thousands):
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Nine Months Ended September 30, |
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2023 |
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2022 |
Derivative (gain) loss |
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$ |
(41,560) |
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$ |
109,892 |
Derivative cash payments, net (1) |
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(6,123) |
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(1,022) |
Derivative cash premium payments, net |
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— |
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(46,111) |
| (1) |
The nine months ended September 30, 2022 includes $105.3 million of net cash receipts related to the monetization of certain natural gas call contracts through restructuring of strike prices.
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