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Derivative Contracts (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Volumes and Average Prices

Year
 
Type of Contract
 
Index
 
Total
Volumes
 
Average Swap price per unit
 
 
 
 
 
 
(in millions)
 
 
Gas sales
 
 
 
 
 
(MMBtu)

 
 
2014
 
SWAP
 
 NYMEX
 
7.4

 
$
4.22

2014
 
SWAP
 
 IFNPCR
 
20.2

 
$
4.08

2015
 
SWAP
 
NYMEX
 
25.6

 
$
4.14

2015
 
SWAP
 
IFNPCR
 
11.0

 
$
4.06

Oil sales
 
 
 
 
 
(Bbls)

 
 

2014
 
SWAP
 
NYMEX WTI
 
3.1

 
$
93.54

2015
 
SWAP
 
NYMEX WTI
 
7.7

 
$
90.04

2015
 
SWAP
 
BRENT ICE
 
0.4

 
$
104.95

2016
 
SWAP
 
NYMEX WTI
 
0.4

 
$
90.00



The following table sets forth QEP Energy's oil basis swaps as of September 30, 2014:
Year
 
Index
 
Index Less Differential
 
Total Volumes
 
Weighted Average Differential
 
 
 
 
 
 
(in millions)
 
 
Oil basis swaps
 
 
 
 
 
(Bbls)

 
 
2014
 
NYMEX WTI
 
ICE Brent
 
0.2

 
$
13.78

2014
 
NYMEX WTI
 
LLS
 
0.2

 
$
4.03

2015
 
NYMEX WTI
 
LLS
 
0.1

 
$
4.03


QEP Marketing Derivative Contracts
QEP Marketing enters into commodity derivative transactions to lock in a margin on gas volumes placed into storage and for marketing transactions in which QEP Marketing sells gas volumes at a fixed price. The following table sets forth QEP Marketing’s volumes and swap prices for its commodity derivative contracts as of September 30, 2014:
Year
 
Type of Contract
 
Index
 
Total
Volumes
 
Average Swap price
per MMBtu
 
 
 
 
 
 
(in millions)
 
 
Gas sales
 
 
 
 
 
(MMBtu)

 
 
2014
 
SWAP
 
IFNPCR
 
1.4

 
$
4.03

2015
 
SWAP
 
IFNPCR
 
2.5

 
4.07

Gas purchases
 
 
 
 
 
(MMBtu)

 
 

2014
 
SWAP
 
IFNPCR
 
0.6

 
$
3.86
Schedule of Interest Rate Derivatives
Notional amount
 
Type of Contract
 
Maturity
 
Fixed Rate Paid
 
Variable Rate Received
(in millions)
 
 
 
 
 
 
 
 
$300.0
 
Swap
 
March 2017
 
1.07%
 
One-month LIBOR
$300.0
 
Swap
 
March 2017
 
0.86%
 
One-month LIBOR
$600.0
 
 
 
 
 
0.96%
 
 
Fair Values of Derivatives by Balance Sheet Location
The following table identifies the condensed consolidated balance sheet location of QEP’s outstanding derivative contracts on a gross contract basis as opposed to the net contract basis presentation in the Condensed Consolidated Balance Sheets and the related fair values at the balance sheet dates:
 
 
 
Gross asset derivative
instruments fair value
 
Gross liability derivative
instruments fair value
 
Balance Sheet
line item
 
September 30,
2014
 
December 31, 2013
 
September 30,
2014
 
December 31, 2013
 
 
 
(in millions)
 
(in millions)
Current:
 
 
 
 
 
 
 
 
 
Commodity
Fair value of derivative contracts
 
$
36.6

 
$
5.5

 
$
4.2

 
$
29.4

Interest rate swaps
Fair value of derivative contracts
 
—

 
—

 
4.3

 
2.6

Long-term:
 
 
 

 
 

 
 

 
 

Commodity
Fair value of derivative contracts
 
9.6

 
0.4

 
0.6

 
—

Interest rate swaps
Fair value of derivative contracts
 
3.5

 
0.6

 
—

 
—

Total derivative instruments
 
$
49.7

 
$
6.5

 
$
9.1

 
$
32.0
Effects of Derivative Transactions
The effects of the change in fair value and settlement of QEP's derivative contracts recorded in "Realized and unrealized losses on derivative contracts" on the Condensed Consolidated Statements of Operations are summarized in the following tables:
 
 
Three Months Ended
 
Nine Months Ended
Derivative instruments not designated as cash flow hedges
 
September 30,
 
September 30,
 
2014
 
2013
 
2014
 
2013
Realized gains (losses) on commodity derivative contracts
 
(in millions)
QEP Energy
 
 
 
 
 
 
 
 
Gas derivative contracts
 
$
5.5

 
$
42.5

 
$
(23.3
)
 
$
112.0

Oil derivative contracts
 
(12.2
)
 
(15.3
)
 
(50.2
)
 
(3.7
)
QEP Marketing
 
 

 
 

 
 

 
 

Gas derivative contracts
 
(0.4
)
 
(0.3
)
 
(2.4
)
 
0.7

Total realized gains (losses) on commodity derivative contracts
 
(7.1
)
 
26.9

 
(75.9
)
 
109.0

Unrealized gains (losses) on commodity derivative contracts
QEP Energy
 
 

 
 

 
 

 
 

Gas derivative contracts
 
27.6

 
(6.6
)
 
9.5

 
(9.6
)
Oil derivative contracts
 
133.2

 
(46.2
)
 
54.3

 
(49.1
)
QEP Marketing
 
 

 
 

 
 

 
 

Gas derivative contracts
 
0.7

 
0.1

 
1.0

 
(0.3
)
Total unrealized gains (losses) on commodity derivative contracts
 
161.5

 
(52.7
)
 
64.8

 
(59.0
)
Total realized and unrealized gains (losses) on commodity derivative contracts
 
$
154.4

 
$
(25.8
)
 
$
(11.1
)
 
$
50.0

 
 
 
 
 
 
 
 
 
Realized gains (losses) on interest rate swaps
Realized losses on interest rate swaps
 
$
(1.3
)
 
$
(0.6
)
 
$
(3.2
)
 
$
(1.9
)
Unrealized gains (losses) on interest rate swaps
Unrealized gains (losses) on interest rate swaps
 
2.6

 
(1.4
)
 
1.1

 
3.5

Total realized and unrealized gains (losses) on interest rate swaps
 
$
1.3

 
$
(2.0
)
 
$
(2.1
)
 
$
1.6

Total net realized gains (losses) on derivative contracts
 
$
(8.4
)
 
$
26.3

 
$
(79.1
)
 
$
107.1

Total net unrealized gains (losses) on derivative contracts
 
164.1

 
(54.1
)
 
65.9

 
(55.5
)
Grand Total
 
$
155.7

 
$
(27.8
)
 
$
(13.2
)
 
$
51.6