Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

v3.23.2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
6 Months Ended
Jun. 30, 2023
Notes Tables  
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 June 30, 2023:

Average

Instrument

Daily

Total

Weighted

Weighted

Weighted

Period

    

Type

    

Volumes

    

Volumes

    

Strike Price

    

Put Price

    

Call Price

Natural Gas - Henry Hub (NYMEX)

(MMbtu)(1)

(MMbtu)(1)

($/MMbtu)(1)

($/MMbtu)(1)

($/MMbtu)(1)

July 2023 - Dec 2023

calls

35,288

12,880,000

$

$

$

7.50

Jan 2024 - Dec 2024

calls

65,000

23,790,000

$

$

$

6.13

Jan 2025 - Mar 2025

calls

62,000

5,580,000

$

$

$

5.50

July 2023 - Dec 2023(2)

swaps

36,164

13,200,000

$

2.43

$

$

Jan 2024 - Dec 2024(2)

swaps

65,574

24,000,000

$

2.46

$

$

Jan 2025 - Mar 2025(2)

swaps

63,333

5,700,000

$

2.72

$

$

Apr 2025 - Dec 2025(2)

puts

62,182

17,100,000

$

$

2.27

$

Jan 2026 - Dec 2026(2)

puts

55,890

20,400,000

$

$

2.35

$

Jan 2027 - Dec 2027(2)

puts

52,603

19,200,000

$

$

2.37

$

Jan 2028 - Apr 2028(2)

puts

49,587

6,000,000

$

$

2.50

$

(1)

MMbtu – Million British Thermal Units

(2)

These contracts were entered into by the Company’s wholly owned subsidiary, A-I LLC, in conjunction with the Term Loan (see Note 5 – Subsidiary Borrowers).

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]

The following fair value of derivative financial instruments amounts were recorded in the Condensed Consolidated Balance Sheets (in thousands):

    

June 30, 2023

    

December 31, 2022

Prepaid expenses and other current assets

$

1,778

$

4,954

Other assets (long-term)

 

17,184

 

23,236

Accrued liabilities

 

18,518

 

46,595

Other liabilities (long-term)

17,417

43,061

The impact of commodity derivative contracts on the Condensed Consolidated Statements of Operations were as follows (in thousands):

Three Months Ended June 30, 

Six Months Ended June 30, 

    

2023

    

2022

    

2023

    

2022

Realized loss (gain)(1)

$

300

$

(79,667)

$

530

$

(35,973)

Unrealized (gain) loss

(1,129)

70,813

(40,599)

107,116

Derivative (gain) loss, net

$

(829)

$

(8,854)

$

(40,069)

$

71,143

(1) The three and six months ended June 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.
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):

Six Months Ended June 30, 

    

2023

    

2022

Derivative (gain) loss, net

$

(40,069)

$

71,143

Derivative cash (receipts) payments, net(1)

(4,427)

70,227

Derivative cash premium payments, net

(46,111)

(1) The six months ended June 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.