DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
|---|
| DERIVATIVE FINANCIAL INSTRUMENTS |
|
| Schedule of derivative contracts for WTI |
Throughout 2020 and 2021, the Company entered into additional derivative contracts in the form of oil swaps for 2022. The following tables reflect the details of those contracts:
Oil derivative contracts
|
|
|
|
|
|
|
|
|
|
|
|
Barrels |
|
|
|
Date entered into |
|
Period covered |
|
per day |
|
Swap price |
|
|
|
|
|
|
|
|
2022 swaps |
|
|
|
|
|
|
|
12/4/2020 |
|
Calendar year 2022 |
|
500 |
|
$ |
44.22 |
12/7/2020 |
|
Calendar year 2022 |
|
500 |
|
|
44.75 |
12/10/2020 |
|
Calendar year 2022 |
|
500 |
|
|
44.97 |
12/17/2020 |
|
Calendar year 2022 |
|
250 |
|
|
45.98 |
1/4/2021 |
|
Calendar year 2022 |
|
250 |
|
|
47.00 |
2/4/2021 |
|
Calendar year 2022 |
|
250 |
|
|
50.05 |
5/11/2021 |
|
Calendar year 2022 |
|
879 (1) |
|
|
49.03 |
|
(1) |
The notional quantity per the swap contract entered into on May 11, 2021 is for 26,750 barrels of oil per month. The 879 represents the daily amount on an annual basis. |
|
| Schedule of contracts on the balance sheet |
The following presents the impact of the Company’s contracts on its balance sheets for the periods indicated.
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
2021 |
|
2020 |
Liabilities |
|
|
|
|
|
|
Commodity derivative instruments |
|
$ |
29,241,588 |
|
$ |
3,287,328 |
Derivative liabilities, current |
|
$ |
29,241,588 |
|
$ |
3,287,328 |
|
|
|
|
|
|
|
Commodity derivative instruments |
|
$ |
— |
|
$ |
869,273 |
Derivative liabilities, non-current |
|
$ |
— |
|
$ |
869,273 |
|
| Schedule of components of Gain (loss) on derivative contracts |
The components of “Gain (loss) on derivative contracts” are as follows for the respective periods:
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, |
|
|
2021 |
|
2020 |
|
2019 |
Gain (loss) on oil derivative |
|
$ |
(77,654,452) |
|
$ |
20,357,812 |
|
$ |
(3,000,078) |
Gain (loss) on natural gas derivatives |
|
|
(198,689) |
|
|
1,008,256 |
|
|
— |
Gain (loss) on derivative contracts |
|
$ |
(77,853,141) |
|
$ |
21,366,068 |
|
$ |
(3,000,078) |
|
| Schedule of components of Cash (paid) received for commodity derivative settlements |
The components of “Cash (paid) received for derivative settlements, net” are as follows for the respective periods:
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, |
|
|
2021 |
|
2020 |
|
2019 |
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
Cash (paid) received on oil derivatives |
|
$ |
(53,511,332) |
|
$ |
22,522,591 |
|
$ |
63,054 |
Cash (paid) received on natural gas derivatives |
|
|
743,178 |
|
|
— |
|
|
— |
Cash (paid) received from derivative settlements |
|
$ |
(52,768,154) |
|
$ |
22,522,591 |
|
$ |
63,054 |
|