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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of oil derivative contracts volume and weighted average price
The following table sets forth the volumes per day associated with the Company's outstanding oil derivative contracts as of September 30, 2014 and the weighted average oil prices for those contracts: 
 
 
Three Months Ending December 31,
 
Year Ending December 31,
 
 
2014
 
2015
 
2016
Collar contracts with short puts:
 
 
 
 
 
 
Volume (BBL) (a)(b)
 
69,000

 
95,767

 
59,000

Price per BBL:
 
 
 
 
 
 
Ceiling
 
$
114.05

 
$
99.36

 
$
98.55

Floor
 
$
93.70

 
$
87.98

 
$
86.14

Short put
 
$
77.61

 
$
73.54

 
$
74.75

Swap contracts:
 
 
 
 
 
 
Volume (BBL)
 
15,000

 
—

 
—

Price per BBL
 
$
96.31

 
$
—

 
$
—

Rollfactor swap contracts:
 
 
 
 
 
 
Volume (BBL) (c)
 
6,630

 
5,000

 
—

NYMEX roll price (d)
 
$
1.10

 
$
0.60

 
$
—

 ____________________
(a)
Counterparties have the option to extend for an additional year 5,000 BBLs per day of 2015 collar contracts with short puts with a ceiling price of $100.08 per BBL, a floor price of $90.00 per BBL and a short put price of $80.00 per BBL. The option to extend is exercisable on December 31, 2015. These contracts give the counterparties the option to extend the contracts under the same terms for an additional year if the option to extend is exercised by the counterparties on December 31, 2015.
(b)
During the period from October 1, 2014 through October 30, 2014, the Company entered into an additional 11,000 BBL per day of 2016 collar contracts with short puts with a ceiling price of $87.76 per BBL, a floor price of $82.82 per BBL and a short put price of $72.82 per BBL.
(c)
During the period from October 1, 2014 through October 30, 2014, the Company entered into an additional 12,000 BBL per day of 2015 rollfactor swap contracts with a NYMEX roll price of $0.15 per BBL.
(d)
Represents swaps that fix the difference between (i) each day's price per BBL of WTI for the first nearby month less (ii) the price per BBL of WTI for the second nearby NYMEX month, multiplied by .6667; plus (iii) each day's price per BBL of WTI for the first nearby month less (iv) the price per BBL of WTI for the third nearby NYMEX month, multiplied by .3333.
Schedule of NGL derivative volumes and weighted average prices
The following table sets forth the volumes per day associated with the Company's outstanding NGL derivative contracts as of September 30, 2014 and the weighted average NGL prices for those contracts: 
 
 
Three Months Ending December 31,
 
Year Ending December 31,
 
 
2014
 
2015
 
2016
Natural gasoline collar contracts with short puts (a):
 
 
 
 
 
 
Volume (BBL)
 
3,500

 
—

 
—

Price per BBL:
 
 
 
 
 
 
Ceiling
 
$
97.93

 
$
—

 
$
—

Floor
 
$
90.14

 
$
—

 
$
—

Short put
 
$
81.36

 
$
—

 
$
—

Ethane collar contracts (a):
 
 
 
 
 
 
Volume (BBL)
 
3,000

 
—

 
—

Price per BBL:
 
 
 
 
 
 
Ceiling
 
$
13.72

 
$
—

 
$
—

Floor
 
$
10.78

 
$
—

 
$
—

Ethane swap contracts (a)(b):
 
 
 
 
 
 
Volume (BBL)
 
—

 
—

 
3,000

Average price per BBL
 
$
—

 
$
—

 
$
12.39

Propane swap contracts (a):
 
 
 
 
 
 
Volume (BBL)
 
1,674

 
—

 
—

Average price per BBL
 
$
47.95

 
$
—

 
$
—


____________________
(a)
Represent derivative contracts that reduce the price volatility of natural gasoline, ethane or propane forecasted for sale by the Company at Mont Belvieu, Texas-posted prices.
(b) During the period from October 1, 2014 through October 30, 2014, the Company entered into an additional 1,000 BBL per day of 2016 swap contracts for ethane with a fixed price of $11.97 per BBL.
Schedule of gas derivative volume and weighted average prices
The following table sets forth the volumes per day associated with the Company's outstanding gas derivative contracts as of September 30, 2014 and the weighted average gas prices for those contracts: 
 
 
Three Months Ending December 31,
 
Year Ending December 31,
 
 
2014
 
2015
 
2016
Collar contracts with short puts:
 
 
 
 
 
 
Volume (MMBTU)
 
115,000

 
285,000

 
20,000

Price per MMBTU:
 
 
 
 
 
 
Ceiling
 
$
4.70

 
$
5.07

 
$
5.36

Floor
 
$
4.00

 
$
4.00

 
$
4.00

Short put
 
$
3.00

 
$
3.00

 
$
3.00

Swap contracts:
 
 
 
 
 
 
Volume (MMBTU)
 
195,000

 
20,000

 
70,000

Price per MMBTU
 
$
4.04

 
$
4.31

 
$
4.06

Basis swap contracts:
 
 
 
 
 
 
Mid-Continent index swap volume (a)
 
120,000

 
95,000

 
—

Price differential ($/MMBTU)
 
$
(0.22
)
 
$
(0.24
)
 
$
—

Permian Basin index swap volume (a)
 
10,000

 
10,000

 
—

Price differential ($/MMBTU)
 
$
(0.15
)
 
$
(0.13
)
 
$
—

Permian Basin index swap volume (b)
 
16,630

 
—

 
—

Price differential ($/MMBTU)
 
$
0.34

 
$
—

 
$
—

____________________
(a)
Represent swaps that fix the basis differentials between the index prices at which the Company sells its Mid-Continent and Permian Basin gas, respectively, and the NYMEX Henry Hub index price used in gas swap and collar contracts.
(b)
Represent swaps that fix the basis differentials between Permian Basin index prices and southern California index prices for Permian Basin gas forecasted for sale in southern California.
Offsetting Asset and Liability
The aggregate fair value of the Company's derivative instruments reported in the consolidated balance sheets by type and counterparty, including the classification between current and noncurrent assets and liabilities, consists of the following:
 
Fair Value of Derivative Instruments as of September 30, 2014
Type
 
Consolidated Balance Sheet
Location
 
Fair
Value
 
Gross Amounts Offset in the Consolidated Balance Sheet
 
Net Fair Value Presented in the Consolidated Balance Sheet
 
 
 
 
(in millions)
Derivatives not designated as hedging instruments
 
 
 
 
 
 
Asset Derivatives:
 
 
 
 
 
 
Commodity price derivatives
 
Derivatives - current
 
$
132

 
$
(4
)
 
$
128

Commodity price derivatives
 
Derivatives - noncurrent
 
$
62

 
$
(5
)
 
57

 
 
 
 
 
 
 
 
$
185

Liability Derivatives:
 

 
 
 
 
Commodity price derivatives
 
Derivatives - current
 
$
5

 
$
(4
)
 
$
1

Commodity price derivatives
 
Derivatives - noncurrent
 
$
5

 
$
(5
)
 
—

 
 
 
 
 
 
 
 
$
1


Fair Value of Derivative Instruments as of December 31, 2013
Type
 
Consolidated Balance Sheet
Location
 
Fair
Value
 
Gross Amounts Offset in the Consolidated Balance Sheet
 
Net Fair Value Presented in the Consolidated Balance Sheet
 
 
 
 
(in millions)
Derivatives not designated as hedging instruments
 
 
 
 
 
 
Asset Derivatives:
 
 
 
 
 
 
Commodity price derivatives
 
Derivatives - current
 
$
73

 
$
(7
)
 
$
66

Interest rate derivatives
 
Derivatives - current
 
$
10

 
$
—

 
10

Commodity price derivatives
 
Derivatives - noncurrent
 
$
95

 
$
(4
)
 
91

Interest rate derivatives
 
Derivatives - noncurrent
 
$
15

 
$
(15
)
 
—

 
 
 
 
 
 
 
 
$
167

Liability Derivatives:
 
 
 
 
 
 
Commodity price derivatives
 
Derivatives - current
 
$
19

 
$
(7
)
 
$
12

Commodity price derivatives
 
Derivatives - noncurrent
 
$
4

 
$
(4
)
 
—

Interest rate derivatives
 
Derivatives - noncurrent
 
$
25

 
$
(15
)
 
10

 
 
 
 
 
 
 
 
$
22
Schedule of derivative gains and losses recognized on statement of operations
The following table details the location of gains and losses recognized on the Company's derivative contracts in the accompanying consolidated statements of operations:
 
 
 
 
 
 
 
 
 
Derivatives Not Designated as Hedging
 
Location of Gain / (Loss) Recognized in
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
Instruments
 
Earnings on Derivatives
 
2014
 
2013
 
2014
 
2013
 
 
 
 
(in millions)
Commodity price derivatives
 
Derivative gains (losses), net
 
$
341

 
$
(108
)
 
$
1

 
$
(17
)
Interest rate derivatives
 
Derivative gains (losses), net
 
—

 
6

 
18

 
17

Total
 
$
341

 
$
(102
)
 
$
19

 
$
—