Derivatives (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Components of Gain (Loss) on Derivative Activity

The components of the unrealized gain (loss) on designated cash flow hedge related to changes in the fair value of our interest rate swaps were as follows (in millions):


			Three Months Ended March 31,
			2023						2022
Change in fair value of interest rate swaps			$	(1.6)					$	0.1
Tax benefit			0.4						—
Unrealized gain (loss) on designated cash flow hedge			$	(1.2)					$	0.1

The interest expense, recognized from accumulated other comprehensive loss from the monthly settlement of our interest rate swaps and amortization of the termination payments, included in our consolidated statements of operations were as follows (in millions):


			Three Months Ended March 31,
			2023						2022
Interest expense (income)			$	(0.5)					$	0.1

The components of gain (loss) on derivative activity in the consolidated statements of operations related to commodity derivatives are as follows (in millions):


			Three Months Ended March 31,
			2023						2022
Change in fair value of derivatives			$	(1.4)					$	(15.1)
Realized gain (loss) on derivatives			13.3						(16.1)
Gain (loss) on derivative activity			$	11.9					$	(31.2)

Fair Value of Derivative Assets and Liabilities Related to Commodity Swaps

The fair value of derivative assets and liabilities related to interest rate swaps are as follows (in millions):


			March 31, 2023						December 31, 2022
Fair value of derivative assets—current			$	3.1					$	—


Fair value of derivative liabilities—long-term			(4.7)						—
Net fair value of interest rate swaps			$	(1.6)					$	—

The fair value of derivative assets and liabilities related to commodity derivatives are as follows (in millions):


			March 31, 2023						December 31, 2022
Fair value of derivative assets—current			$	65.4					$	68.4
Fair value of derivative assets—long-term			13.6						2.9
Fair value of derivative liabilities—current			(41.1)						(42.9)
Fair value of derivative liabilities—long-term			(13.6)						(2.7)
Net fair value of commodity derivatives			$	24.3					$	25.7

Notional Amount and Fair Value of Derivative Instruments

Set forth below are the summarized notional volumes and fair values of all instruments related to commodity derivatives that we held for price risk management purposes and the related physical offsets at March 31, 2023 (in millions, except volumes). The remaining term of the contracts extend no later than January 2028.

Commodity

Instruments

Unit

Volume

Net Fair Value

NGL (short contracts)

Swaps

MMgals

(144.3)

$

9.1

Natural gas (short contracts)

Swaps and futures

Bbtu

(118.6)

37.4

Natural gas (long contracts)

Swaps and futures

Bbtu

89.3

(21.4)

Crude and condensate (short contracts)

Swaps and futures

MMbbls

(8.9)

4.3

Crude and condensate (long contracts)

Swaps and futures

MMbbls

1.2

(5.1)

Total fair value of commodity derivatives

$

24.3