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Amounts recognized against the Company’s allowance for doubtful accounts related to receivables arising from contracts with customers were immaterial for the years ended December 31, 2018 and 2017. The Company has no contract assets or contract liabilities associated with its revenues from contracts with customers. 

## (5) DERIVATIVES AND RISK MANAGEMENT 

The Company is exposed to volatility in market prices and basis differentials for natural gas, oil and NGLs which impacts the predictability of its cash flows related to the sale of those commodities. These risks are managed by the Company’s use of certain derivative financial instruments. As of December 31, 2018, the Company’s derivative financial instruments consisted of fixed price swaps, two-way costless collars, three-way costless collars, basis swaps, call options and interest rate swaps. During 2016, the Company settled all of its purchased put options. A description of the Company’s derivative financial instruments is provided below: 

<img src='content_image/1045477.jpg'>

