Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of reconciliation of the changes in fair value of Legacy's commodity derivatives

The following table sets forth a reconciliation of the changes in fair value of Legacy's commodity derivatives for the period of December 11, 2019 through December 31, 2019 (Successor), the period of January 1, 2019 through December 10, 2019 (Predecessor), for the years ended December 31, 2018 (Predecessor), and 2017 (Predecessor).


	Successor		Predecessor
	Period from December 11, 2019 to December 31,		Period from January 1, 2019 to December 10,		December 31,
	2019		2019		2018		2017
(In thousands)
Beginning fair value of commodity derivatives	$	(6,776)	$	67,205	$	6,318	$	12,698
Total gain (loss) crude oil derivatives	(7,477)		(48,146)		54,380		(15,325)
Total gain (loss) natural gas derivatives	1,185		(2,148)		(5,208)		33,101
Crude oil derivative cash settlements paid (received)	(67)		(8,773)		16,845		(11,840)
Natural gas derivative cash settlements received	(9)		(14,914)		(5,130)		(12,316)
Ending fair value of commodity derivatives	$	(13,144)	$	(6,776)	$	67,205	$	6,318

Schedule of notional amounts of outstanding derivative positions

As of December 31, 2019, Legacy had the following NYMEX WTI crude oil swaps paying floating prices and receiving fixed prices for a portion of its future oil production as indicated below:


Calendar Year	Volumes (Bbls)	Average Price per Bbl	Price Range per Bbl
2020	3,660,000	$55.62	$54.10	-	$56.00
2021	2,555,000	$52.80	$52.40	-	$53.22

As of December 31, 2019, Legacy had the following Midland-to-Cushing crude oil differential swaps paying a floating differential and receiving a fixed differential for a portion of its future oil production as indicated below:


Calendar Year	Volumes (Bbls)	Average Price per Bbl	Price Range per Bbl
2020	732,000	$0.90	$0.90
2021	730,000	$1.05	$1.05

As of December 31, 2019, Legacy had the following NYMEX Henry Hub natural gas swaps paying floating natural gas prices and receiving fixed prices for a portion of its future natural gas production as indicated below:


		Average	Price Range
Calendar Year	Volumes (MMBtu)	Price per MMBtu	per MMBtu
2020	32,940,000	$2.35	$2.32	-	$2.40
2021	29,200,000	$2.41	$2.37	-	$2.44

Schedule of total impact on interest expense from the mark-to-market and settlements

The total impact on interest expense from the mark-to-market and settlements was as follows:


	Successor		Predecessor
	Period from December 11, 2019 to December 31,		Period from January 1, 2019 to December 10,		Years Ended December 31,
	2019		2019		2018		2017
(In thousands)
Beginning fair value of interest rate swaps	$	—	$	2,044	$	2,117	$	183
Total gain (loss) loss on interest rate swaps	—		(119)		1,213		1,168
Cash settlements paid	—		(1,925)		(1,286)		766
Ending fair value of interest rate swaps	$	—	$	—	$	2,044	$	2,117

Legacy Reserves Inc. 10-K