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Derivative Contracts (Tables)
 9 Months Ended
Sep. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Volumes and Average Prices
QEP Energy Derivative Contracts
The following table sets forth QEP Energy’s quantities and average prices for its commodity derivative contracts as of September 30, 2013:
 
Insert Title Here
Year
 
Type of Contract
 
Index
 
Total
Volumes
 
Average Swap price per unit
 
 
 
 
 
 
(in millions)
 
 
Natural gas
 
 
 
 
 
(MMBtu)

 
 
2013
 
Swap
 
IFNPCR(1)
 
18.4

 
$
5.49

2013
 
Swap
 
NYMEX
 
14.7

 
$
3.81

2014
 
Swap
 
IFNPCR(1)
 
32.9

 
$
4.00

2014
 
Swap
 
NYMEX
 
25.6

 
$
4.19

Crude oil
 
 
 
 
 
(Bbls)

 
 

2013
 
Swap
 
NYMEX WTI
 
2.1

 
$
98.27

2013
 
Swap
 
BRENT ICE
 
0.1

 
$
107.80

2014
 
Swap
 
NYMEX WTI
 
8.8

 
$
93.63

(1) 
Inside FERC monthly settlement index for the Northwest Pipeline Corp. Rocky Mountains.

QEP Marketing Derivative Contracts
QEP Marketing enters into commodity derivative transactions to lock in a margin on natural 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, 2013:
Year
 
Type of Contract
 
Index
 
Total
Volumes
 
Average Swap price
per MMBtu
 
 
 
 
 
 
(in millions)
 
 
Natural gas sales
 
 
 
 
 
(MMBtu)

 
 
2013
 
Swap
 
IFNPCR
 
1.6

 
$
3.91

2014
 
Swap
 
IFNPCR
 
3.8

 
$
3.71

Natural gas purchases
 
 
 
 
 
(MMBtu)

 
 

2013
 
Swap
 
IFNPCR
 
1.7

 
$
3.46

2014
 
Swap
 
IFNPCR
 
0.2

 
$
3.82


QEP's Derivative Contracts
The following table sets forth QEP’s notional amount and interest rate for its interest rate swaps outstanding as of September 30, 2013:
Notional amount
 
Type of Contract
 
Maturity
 
Fixed Rate Paid
 
Variable Rate Received
(in millions)
 
 
 
 
 
 
 
 
$300.0
 
Swap
 
March 2017
 
1.07%
 
One month LIBOR
 
Fair values of Derivatives by Balance Sheet Location
The following table identifies the 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,
2013
 
December 31, 2012
 
September 30,
2013
 
December 31, 2012
 
 
 
(in millions)
 
(in millions)
Current:
 
 
 
 
 
 
 
 
 
Commodity
Fair value of derivative contracts
 
$
58.0

 
$
189.7

 
$
26.2

 
$
1.0

Interest rate swaps
Fair value of derivative contracts
 
—

 
—

 
2.5

 
2.6

Long-term:
 
 
 

 
 

 
 

 
 

Commodity
Fair value of derivative contracts
 
5.8

 
4.2

 
—

 
0.1

Interest rate swaps
Fair value of derivative contracts
 
—

 
—

 
—

 
3.6

Total derivative instruments
 
$
63.8

 
$
193.9

 
$
28.7

 
$
7.3
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) gains 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,
 
2013
 
2012
 
2013
 
2012
Realized gains (losses) on commodity derivative contracts
 
(in millions)
QEP Energy
 
 
 
 
 
 
 
 
Natural gas derivative contracts
 
$
42.5

 
$
86.2

 
$
112.0

 
$
283.8

Oil derivative contracts
 
(15.3
)
 
2.7

 
(3.7
)
 
2.2

NGL derivative contracts
 
—

 
3.4

 
—

 
6.5

QEP Field Services
 
 

 
 

 
 

 
 

NGL derivative contracts
 
—

 
1.9

 
—

 
6.3

QEP Marketing
 
 

 
 

 
 

 
 

Natural gas derivative contracts
 
(0.3
)
 
(0.4
)
 
0.7

 
3.7

Total realized gains on commodity derivative contracts
 
26.9

 
93.8

 
109.0

 
302.5

Unrealized gains (losses) on commodity derivative contracts
QEP Energy
 
 

 
 

 
 

 
 

Natural gas derivative contracts
 
(6.6
)
 
(50.6
)
 
(9.6
)
 
3.3

Oil derivative contracts
 
(46.2
)
 
4.1

 
(49.1
)
 
31.2

NGL derivative contracts
 
—

 
(4.4
)
 
—

 
3.4

QEP Field Services
 
 

 
 

 
 

 
 

NGL derivative contracts
 
—

 
(2.5
)
 
—

 
2.0

QEP Marketing
 
 

 
 

 
 

 
 

Natural gas derivative contracts
 
0.1

 
(1.4
)
 
(0.3
)
 
(0.5
)
Total unrealized (losses) gains on commodity derivative contracts
 
(52.7
)
 
(54.8
)
 
(59.0
)
 
39.4

Total realized and unrealized (losses) gains on commodity derivative contracts
 
$
(25.8
)
 
$
39.0

 
$
50.0

 
$
341.9

 
 
 
 
 
 
 
 
 
Realized gains (losses) on interest rate swaps
Realized losses on interest rate swaps
 
$
(0.6
)
 
$
(0.6
)
 
$
(1.9
)
 
$
(0.6
)
Unrealized gains (losses) on interest rate swaps
Unrealized (losses) gains on interest rate swaps
 
(1.4
)
 
(2.3
)
 
3.5

 
(6.6
)
Total realized and unrealized (losses) gains on interest rate swaps
 
$
(2.0
)
 
$
(2.9
)
 
$
1.6

 
$
(7.2
)
Total net realized gains on derivative contracts
 
$
26.3

 
$
93.2

 
$
107.1

 
$
301.9

Total net unrealized (losses) gains on derivative contracts
 
(54.1
)
 
(57.1
)
 
(55.5
)
 
32.8

Grand Total
 
$
(27.8
)
 
$
36.1

 
$
51.6

 
$
334.7