XML 54 R42.htm IDEA: XBRL DOCUMENT v3.7.0.1
Derivative Instruments and Hedging Activities (Tables)
6 Months Ended
Jun. 30, 2017
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Notional Volume of Commodity Hedges

At June 30, 2017, the notional volumes of our commodity derivative contracts were:

 

Commodity

Instrument

Unit

2017

 

2018

 

2019

 

Natural Gas

Swaps

MMBtu/d

 

154,828

 

 

115,327

 

 

76,136

 

Natural Gas

Basis Swaps

MMBtu/d

 

121,739

 

 

3,226

 

 

-

 

Natural Gas

Futures

MMBtu/d

 

-

 

 

1,103

 

 

-

 

Natural Gas

Options

MMBtu/d

 

22,900

 

 

9,486

 

 

-

 

NGL

Swaps

Bbl/d

 

16,682

 

 

7,208

 

 

5,889

 

NGL

Futures

Bbl/d

 

18,587

 

 

7,616

 

 

-

 

NGL

Options

Bbl/d

 

2,007

 

 

2,986

 

 

410

 

Condensate

Swaps

Bbl/d

 

2,690

 

 

2,190

 

 

1,063

 

Condensate

Options

Bbl/d

 

1,380

 

 

691

 

 

590

 

 

Fair Values of Derivative Instruments

The following schedules reflect the fair values of our derivative instruments and their location in our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis:

 

 

 

 

 

Fair Value as of June 30, 2017

 

 

Fair Value as of December 31, 2016

 

 

 

Balance Sheet

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

 

Location

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

35.4

 

 

$

8.6

 

 

$

16.7

 

 

$

48.6

 

 

 

Long-term

 

 

17.3

 

 

 

5.5

 

 

 

5.1

 

 

 

26.1

 

Total derivatives designated as hedging instruments

 

 

 

$

52.7

 

 

$

14.1

 

 

$

21.8

 

 

$

74.7

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current

 

$

0.3

 

 

$

0.9

 

 

$

0.1

 

 

$

0.5

 

Total derivatives not designated as hedging instruments

 

 

 

$

0.3

 

 

$

0.9

 

 

$

0.1

 

 

$

0.5

 

Total current position

 

 

 

$

35.7

 

 

$

9.5

 

 

$

16.8

 

 

$

49.1

 

Total long-term position

 

 

 

 

17.3

 

 

 

5.5

 

 

 

5.1

 

 

 

26.1

 

Total derivatives

 

 

 

$

53.0

 

 

$

15.0

 

 

$

21.9

 

 

$

75.2

 

 

Pro Forma Impact of Derivatives Net in Consolidated Balance Sheet

The pro forma impact of reporting derivatives in our Consolidated Balance Sheets on a net basis is as follows:

 

 

 

Gross Presentation

 

 

Pro forma net presentation

 

June 30, 2017

Asset

 

 

Liability

 

 

Collateral

 

 

Asset

 

 

Liability

 

Current Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

$

34.6

 

 

$

(9.2

)

 

$

(5.5

)

 

$

26.0

 

 

$

(6.1

)

 

Counterparties without offsetting positions - assets

 

1.1

 

 

 

-

 

 

 

-

 

 

 

1.1

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(0.3

)

 

 

-

 

 

 

-

 

 

 

(0.3

)

 

 

 

35.7

 

 

 

(9.5

)

 

 

(5.5

)

 

 

27.1

 

 

 

(6.4

)

Long Term Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

16.5

 

 

 

(4.6

)

 

 

-

 

 

 

11.9

 

 

 

-

 

 

Counterparties without offsetting positions - assets

 

0.8

 

 

 

-

 

 

 

-

 

 

 

0.8

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(0.9

)

 

 

-

 

 

 

-

 

 

 

(0.9

)

 

 

 

17.3

 

 

 

(5.5

)

 

 

-

 

 

 

12.7

 

 

 

(0.9

)

Total Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

51.1

 

 

 

(13.8

)

 

 

(5.5

)

 

 

37.9

 

 

 

(6.1

)

 

Counterparties without offsetting positions - assets

 

1.9

 

 

 

-

 

 

 

-

 

 

 

1.9

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(1.2

)

 

 

-

 

 

 

-

 

 

 

(1.2

)

 

 

$

53.0

 

 

$

(15.0

)

 

$

(5.5

)

 

$

39.8

 

 

$

(7.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Presentation

 

 

Pro forma net presentation

 

December 31, 2016

Asset

 

 

Liability

 

 

Collateral

 

 

Asset

 

 

Liability

 

Current Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

$

16.8

 

 

$

(46.1

)

 

$

7.0

 

 

$

5.7

 

 

$

(28.0

)

 

Counterparties without offsetting positions - assets

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(3.0

)

 

 

-

 

 

 

-

 

 

 

(3.0

)

 

 

 

16.8

 

 

 

(49.1

)

 

 

7.0

 

 

 

5.7

 

 

 

(31.0

)

Long Term Position

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

5.1

 

 

 

(18.7

)

 

 

-

 

 

 

-

 

 

 

(13.6

)

 

Counterparties without offsetting positions - assets

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(7.4

)

 

 

-

 

 

 

-

 

 

 

(7.4

)

 

 

 

5.1

 

 

 

(26.1

)

 

 

-

 

 

 

-

 

 

 

(21.0

)

Total Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Counterparties with offsetting positions or collateral

 

21.9

 

 

 

(64.8

)

 

 

7.0

 

 

 

5.7

 

 

 

(41.6

)

 

Counterparties without offsetting positions - assets

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

Counterparties without offsetting positions - liabilities

 

-

 

 

 

(10.4

)

 

 

-

 

 

 

-

 

 

 

(10.4

)

 

 

$

21.9

 

 

$

(75.2

)

 

$

7.0

 

 

$

5.7

 

 

$

(52.0

)

 

Amounts Recorded in Other Comprehensive Income and Amounts Reclassified from OCI to Revenue and Expense

The following tables reflect amounts recorded in Other Comprehensive Income and amounts reclassified from OCI to revenue and expense for the periods indicated:

 

 

Gain (Loss) Recognized in OCI on

Derivatives (Effective Portion)

 

Derivatives in Cash Flow

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Hedging Relationships

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Commodity contracts

 

$

29.8

 

 

$

(60.2

)

 

$

96.0

 

 

$

(53.5

)

 

 

 

Gain (Loss) Reclassified from OCI into

Income (Effective Portion)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Location of Gain (Loss)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenues

 

$

5.7

 

 

$

18.3

 

 

$

(0.4

)

 

$

42.4

 

 

Gain (Loss) Recognized in Income on Derivatives

The use of mark-to-market accounting for financial instruments can cause non-cash earnings volatility due to changes in the underlying commodity price indices.

 

 

 

Location of Gain

 

Gain (Loss) Recognized in Income on Derivatives

 

Derivatives Not Designated

 

Recognized in Income on

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

as Hedging Instruments

 

Derivatives

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Commodity contracts

 

Revenue

 

$

(0.3

)

 

$

(0.3

)

 

$

(1.0

)

 

$

1.6