Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

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, 2015 and the weighted average oil prices for those contracts:

	Three Months Ending December 31,		Year Ending December 31,
	2015		2016		2017
Swap contracts:
Volume (Bbl)	82,000		4,475		—
Price per Bbl	$	71.18	$	59.00	$	—
Collar contracts with short puts (a):
Volume (Bbl)	15,000		101,806		34,000
Price per Bbl:
Ceiling	$	97.69	$	75.93	$	70.42
Floor	$	82.97	$	65.30	$	57.65
Short put	$	69.67	$	46.08	$	47.65
Rollfactor swap contracts (b):
Volume (Bbl)	37,000		—		—
NYMEX roll price	$	0.06	$	—	$	—

 ____________________

(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) 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, 2015 and the weighted average NGL prices for those contracts:

	Three Months Ending December 31,		Year Ending December 31,
	2015		2016
Ethane swap contracts:
Volume (Bbl)	6,000		5,000
Price per Bbl	$	7.80	$	11.61
Propane swap contracts:
Volume (Bbl)	11,000		7,500
Price per Bbl	$	21.62	$	21.57

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, 2015 and the weighted average gas prices for those contracts:

	Three Months Ending December 31,			Year Ending December 31,
	2015			2016			2017
Swap contracts:
Volume (MMBtu)	20,000			70,000			—
Price per MMBtu	$	4.31		$	4.06		$	—
Collar contracts with short puts:
Volume (MMBtu)	285,000			180,000			—
Price per MMBtu:
Ceiling	$	5.07		$	4.01		$	—
Floor	$	4.00		$	3.24		$	—
Short put	$	3.00		$	2.78		$	—
Basis swap contracts:
Gulf Coast index swap volume (a)	20,000			10,000			—
Price differential ($/MMBtu)	$	—		$	—		$	—
Mid-Continent index swap volume (a)	95,000			15,000			45,000
Price differential ($/MMBtu)	$	(0.24	)	$	(0.32	)	$	(0.32	)
Permian Basin index swap volume (a)	10,000			—			—
Price differential ($/MMBtu)	$	(0.13	)	$	—		$	—
Permian Basin index swap volume (b)	30,000			—			—
Price differential ($/MMBtu)	$	0.19		$	—		$	—

____________________

(a) Represent swaps that fix the basis differentials between the index prices at which the Company sells its Gulf Coast, Mid-Continent and Permian Basin gas, respectively, and the HH 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 accompanying 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, 2015
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	$	634	$	(2	)	$	632
Commodity price derivatives	Derivatives - noncurrent	$	148	$	(1	)	147
							$	779
Liability Derivatives:
Commodity price derivatives	Derivatives - current	$	2	$	(2	)	$	—
Interest rate derivatives	Derivatives - current	$	2	$	—		2
Commodity price derivatives	Derivatives - noncurrent	$	2	$	(1	)	1
							$	3

Fair Value of Derivative Instruments as of December 31, 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	$	579	$	(1	)	$	578
Commodity price derivatives	Derivatives - noncurrent	$	182	$	(1	)	181
							$	759
Liability Derivatives:
Commodity price derivatives	Derivatives - current	$	1	$	(1	)	$	—
Interest rate derivatives	Derivatives - current	$	3	$	—		3
Commodity price derivatives	Derivatives - noncurrent	$	3	$	(1	)	2
							$	5

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	2015			2014		2015		2014
		(in millions)
Commodity price derivatives	Derivative gains, net	$	575		$	341	$	614	$	1
Interest rate derivatives	Derivative gains, net	(2		)	—		3		18
Total		$	573		$	341	$	617	$	19