DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
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6 Months Ended |
Jun. 30, 2022 |
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| DERIVATIVE FINANCIAL INSTRUMENTS |
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| Schedule of contracts on the balance sheet |
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As of |
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June 30, 2022 |
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December 31, 2021 |
Commodity derivative instruments |
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$ |
1,353,196 |
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$ |
— |
Derivative assets, current |
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$ |
1,353,196 |
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$ |
— |
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Commodity derivative instruments |
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$ |
785,389 |
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$ |
— |
Derivative assets, noncurrent |
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$ |
785,389 |
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$ |
— |
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Commodity derivative instruments |
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$ |
32,700,566 |
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$ |
29,241,588 |
Derivative liabilities, current |
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$ |
32,700,566 |
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$ |
29,241,588 |
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| Schedule of components of (Loss) on derivative contracts |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2022 |
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2021 |
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2022 |
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2021 |
(Loss) on oil derivative |
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$ |
(7,457,018) |
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$ |
(35,277,240) |
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$ |
(35,053,159) |
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$ |
(66,667,190) |
(Loss) on natural gas derivatives |
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— |
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— |
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— |
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|
(198,689) |
(Loss) on derivative contracts |
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$ |
(7,457,018) |
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$ |
(35,277,240) |
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$ |
(35,053,159) |
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$ |
(66,865,879) |
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| Schedule of components of Cash (paid) received for commodity derivative settlements |
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2022 |
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2021 |
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2022 |
|
2021 |
Cash flows from operating activites: |
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Cash (paid) on oil derivatives |
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$ |
(19,617,265) |
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$ |
(12,436,333) |
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$ |
(33,732,766) |
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$ |
(19,100,302) |
Cash received on natural gas derivatives |
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— |
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— |
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— |
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|
743,178 |
Cash (paid) for derivative settlements, net |
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$ |
(19,617,265) |
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$ |
(12,436,333) |
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$ |
(33,732,766) |
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$ |
(18,357,124) |
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| Schedule of put and call prices of those contracts |
During 2020, 2021, and early 2022, the Company entered into additional derivative contracts in the form of swaps for the 2022 calendar period for oil. Additionally, on June 28 and 29, 2022, the Company entered into twelve new derivative contracts in the form of put options. The following tables reflect the details of current contracts as of June 30, 2022:
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Type of |
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Barrels |
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Swap |
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Strike |
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Deferred |
Date entered into |
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Period covered |
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Contract |
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per day |
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Index |
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price |
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price |
|
premium |
Oil derivative contracts: |
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12/04/2020 |
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Calendar year 2022 |
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Swap |
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500 |
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WTI |
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$ |
44.22 |
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12/07/2020 |
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Calendar year 2022 |
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Swap |
|
500 |
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WTI |
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44.75 |
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12/10/2020 |
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Calendar year 2022 |
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Swap |
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500 |
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WTI |
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44.97 |
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12/17/2020 |
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Calendar year 2022 |
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Swap |
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250 |
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WTI |
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45.98 |
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01/04/2021 |
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Calendar year 2022 |
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Swap |
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250 |
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WTI |
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47.00 |
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02/04/2021 |
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Calendar year 2022 |
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Swap |
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250 |
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WTI |
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50.05 |
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05/11/2021 |
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Calendar year 2022 |
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Swap |
|
879 |
(1) |
WTI |
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49.03 |
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02/01/2022 |
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02/01/2022 - 12/31/2022 |
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Swap |
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1,000 |
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WTI |
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82.01 |
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06/28/2022 |
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07/01/2022 - 09/30/2022 |
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Put |
|
1,000 |
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WTI |
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$ |
107.90 |
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$ |
6.95 |
06/28/2022 |
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10/01/2022 - 12/31/2022 |
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Put |
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1,000 |
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WTI |
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100.60 |
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11.71 |
06/28/2022 |
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01/01/2023 - 03/31/2023 |
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Put |
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1,000 |
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WTI |
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95.75 |
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13.96 |
06/28/2022 |
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04/01/2023 - 06/30/2023 |
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Put |
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1,000 |
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WTI |
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92.70 |
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15.20 |
06/28/2022 |
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07/01/2023 - 09/30/2023 |
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Put |
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1,000 |
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WTI |
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90.00 |
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16.00 |
06/28/2022 |
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10/01/2023 - 12/31/2023 |
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Put |
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1,000 |
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WTI |
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87.70 |
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16.53 |
06/29/2022 |
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01/01/2023 - 03/31/2023 |
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Put |
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500 |
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WTI |
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95.25 |
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14.25 |
06/29/2022 |
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04/01/2023 - 06/30/2023 |
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Put |
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500 |
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WTI |
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91.85 |
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15.58 |
06/29/2022 |
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07/01/2023 - 09/30/2023 |
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Put |
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500 |
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WTI |
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89.10 |
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16.45 |
06/29/2022 |
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10/01/2023 - 12/31/2023 |
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Put |
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500 |
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WTI |
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86.90 |
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16.93 |
06/29/2022 |
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01/01/2024 - 03/31/2024 |
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Put |
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500 |
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WTI |
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84.70 |
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17.15 |
06/29/2022 |
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04/01/2024 - 06/30/2024 |
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Put |
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500 |
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WTI |
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82.80 |
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17.49 |
| (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.
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