DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
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9 Months Ended |
Sep. 30, 2022 |
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| DERIVATIVE FINANCIAL INSTRUMENTS |
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| Schedule of impact of Company's contracts on its Balance Sheets |
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As of |
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September 30, 2022 |
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December 31, 2021 |
Commodity derivative instruments, marked to market: |
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Derivative assets, current |
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$ |
24,206,887 |
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$ |
— |
Discounted deferred premiums |
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(10,884,874) |
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— |
Derivative assets, current, net of premiums |
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$ |
13,322,013 |
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$ |
— |
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Derivative assets, noncurrent |
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15,204,782 |
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— |
Discounted deferred premiums |
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(3,658,800) |
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— |
Derivative assets, noncurrent, net of premiums |
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$ |
11,545,982 |
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$ |
— |
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Derivative liabilities, current |
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$ |
23,767,689 |
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$ |
29,241,588 |
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Derivative liabilities, noncurrent |
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$ |
8,734,388 |
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$ |
— |
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| Schedule of components of gain (loss) on derivative contracts |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2022 |
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2021 |
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2022 |
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2021 |
Oil derivatives: |
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Realized gain (loss) on oil derivatives |
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(13,958,195) |
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(14,921,008) |
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(47,690,961) |
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(34,021,310) |
Unrealized gain (loss) on oil derivatives |
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49,680,492 |
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8,200,688 |
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48,360,099 |
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(39,366,200) |
Gain (loss) on oil derivatives |
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$ |
35,722,297 |
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$ |
(6,720,320) |
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$ |
669,138 |
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$ |
(73,387,510) |
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Natural gas derivatives: |
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Realized gain (loss) on natural gas derivatives |
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(902,921) |
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— |
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(902,921) |
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743,178 |
Unrealized gain (loss) on natural gas derivatives |
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(1,968,187) |
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— |
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(1,968,187) |
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(941,867) |
Gain (loss) on natural gas derivatives |
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$ |
(2,871,108) |
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$ |
— |
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$ |
(2,871,108) |
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$ |
(198,689) |
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Gain (loss) on derivative contracts |
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$ |
32,851,189 |
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$ |
(6,720,320) |
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$ |
(2,201,970) |
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$ |
(73,586,199) |
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| Schedule of components of cash (paid) for derivative settlements, net |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2022 |
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2021 |
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2022 |
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2021 |
Cash flows from operating activities: |
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Cash (paid) on oil derivatives |
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$ |
(13,958,195) |
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$ |
(14,921,008) |
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$ |
(47,690,961) |
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$ |
(34,030,310) |
Cash received (paid) on natural gas derivatives |
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(902,921) |
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— |
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(902,921) |
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743,178 |
Cash (paid) for derivative settlements, net |
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$ |
(14,861,116) |
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$ |
(14,921,008) |
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$ |
(48,593,882) |
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$ |
(33,287,132) |
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| Schedule of current derivative contracts |
The following tables reflect the details of current derivative contracts as of September 30, 2022(Quantities are in barrels for the oil derivative contracts and in million British thermal units (MMBtu) for the natural gas derivative contracts.):
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Oil Hedges (WTI) |
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2022 |
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2023 |
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2024 |
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Swaps: |
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Hedged volume (BBL) |
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379,250 |
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389,250 |
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526,000 |
Weighted average swap price |
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$ |
54.89 |
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$ |
77.55 |
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$ |
65.90 |
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Deferred premium puts: |
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Hedged volume (BBL) |
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138,000 |
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773,500 |
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91,000 |
Weighted average strike price |
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$ |
97.93 |
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$ |
90.64 |
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$ |
83.75 |
Weighted average deferred premium price |
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$ |
11.81 |
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$ |
15.25 |
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$ |
17.32 |
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Two-way collars: |
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Hedged volume (BBL) |
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97,201 |
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487,622 |
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475,350 |
Weighted average put price |
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$ |
53.93 |
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$ |
52.16 |
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$ |
67.88 |
Weighted average call price |
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$ |
67.68 |
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$ |
62.94 |
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$ |
83.32 |
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Three-way collars: |
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Hedged volume (BBL) |
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89,985 |
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66,061 |
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— |
Weighted average first put price |
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$ |
40.00 |
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$ |
45.00 |
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$ |
— |
Weighted average second put price |
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$ |
50.00 |
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$ |
55.00 |
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$ |
— |
Weighted average call price |
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$ |
62.03 |
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$ |
80.05 |
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$ |
— |
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Gas Hedges (Henry Hub) |
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2022 |
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2023 |
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2024 |
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NYMEX Swaps: |
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Hedged volume (MMBtu) |
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46,313 |
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175,421 |
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— |
Weighted average swap price |
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$ |
2.51 |
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$ |
2.40 |
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$ |
— |
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Two-way collars: (1) |
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Put hedged volume (MMBtu) |
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715,661 |
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2,486,514 |
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1,712,250 |
Weighted average put price |
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$ |
3.76 |
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$ |
3.18 |
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$ |
4.00 |
Call hedged volume (MMBtu) |
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435,061 |
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2,306,514 |
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1,712,250 |
Weighted average call price |
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$ |
10.22 |
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$ |
5.03 |
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$ |
6.29 |
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Three-way collar: |
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Hedged volume (MMBtu) |
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304,250 |
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— |
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— |
Weighted average first put price |
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$ |
2.20 |
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$ |
— |
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$ |
— |
Weighted average second put price |
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$ |
2.50 |
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$ |
— |
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$ |
— |
Weighted average call price |
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$ |
3.25 |
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$ |
— |
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$ |
— |
Weighted average deferred premium price |
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$ |
0.19 |
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$ |
— |
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$ |
— |
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Gas Hedges (basis differential) |
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2022 |
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2023 |
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2024 |
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Waha basis swaps: |
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Hedged volume (MMBtu) |
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505,024 |
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1,339,685 |
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— |
Weighted average swap price |
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(2) |
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(3) |
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$ |
— |
| (1) |
The two-way collars for the fourth quarter of 2022 and first quarter of 2023 include 2x1 collars where the put volumes of 561,200 and 360,000 are two times the call volumes of 280,600 and 180,000, respectively.
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| (2) |
The WAHA basis swaps in place for the remainder of 2022 consist of five derivative contracts, each with a fixed price of the Henry Hub natural gas price less a fixed amount (weighted average of $0.57 per MMBtu).
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| (3) |
The WAHA basis swaps in place for the calendar year of 2023 consist of two derivative contracts, each with a fixed price of the Henry Hub natural gas price less a fixed amount (weighted average of $0.55 per MMBtu).
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