Derivative Financial Instruments (Tables)
|
9 Months Ended |
Sep. 30, 2012
|
Derivative Financial Instruments |
|
Schedule of oil derivative contracts |
|
|
|
|
|
|
Weighted Average Price per Bbl |
|
Term(1) |
|
Type of Contract |
|
MBbl |
|
Deferred
Premium |
|
Swaps |
|
Floor |
|
Ceiling |
|
Calls |
|
2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October - December |
|
Purchased puts |
|
426 |
|
$ |
6.86 |
|
$ |
— |
|
$ |
61.48 |
|
$ |
— |
|
$ |
— |
|
October - December |
|
Swaps with calls |
|
600 |
|
— |
|
97.21 |
|
— |
|
— |
|
110.00 |
|
2013: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January - December |
|
Three-way collars |
|
1,500 |
|
$ |
4.82 |
|
$ |
— |
|
$ |
95.00 |
|
$ |
105.00 |
|
$ |
125.00 |
|
January - December |
|
Three-way collars |
|
1,004 |
|
— |
|
— |
|
87.50 |
|
115.00 |
|
135.00 |
|
(1) In October 2012, we entered into costless three-way collar contracts for 1.0 MMBbl from January 2013 through December 2013 with a floor price of $90.00 per Bbl, a weighted average ceiling price of $115.39 per Bbl and a call price of $135.00 per Bbl. The three-way collar contracts are indexed to Dated Brent prices.
| |
|
Schedule of interest rate swaps derivative contracts |
Term |
|
Weighted Average
Notional Amount |
|
Weighted Average
Fixed Rate |
|
Floating Rate |
|
|
|
(In thousands) |
|
|
|
|
|
October 2012 — December 2012 |
|
$ |
306,420 |
|
1.98 |
% |
6-month LIBOR |
|
January 2013 — December 2013 |
|
|
227,103 |
|
2.06 |
% |
6-month LIBOR |
|
January 2014 — December 2014 |
|
|
133,434 |
|
1.99 |
% |
6-month LIBOR |
|
January 2015 — December 2015 |
|
|
45,319 |
|
2.03 |
% |
6-month LIBOR |
|
January 2016 — June 2016 |
|
|
12,500 |
|
2.27 |
% |
6-month LIBOR |
|
| |
|
Schedule of derivative instruments by balance sheet location |
|
|
|
|
Estimated Fair Value |
|
|
|
|
|
Asset (Liability) |
|
|
|
|
|
September 30, |
|
December 31, |
|
Type of Contract |
|
Balance Sheet Location |
|
2012 |
|
2011 |
|
|
|
|
|
(In thousands) |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
Derivative asset: |
|
|
|
|
|
|
|
Commodity |
|
Derivatives assets — current |
|
$ |
3,185 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
Derivative liability: |
|
|
|
|
|
|
|
Commodity(1)(2) |
|
Derivatives liabilities — current |
|
(20,306 |
) |
(20,303 |
) |
Interest rate |
|
Derivatives liabilities — current |
|
(4,416 |
) |
(4,104 |
) |
Commodity(3) |
|
Derivatives liabilities — long-term |
|
(2,715 |
) |
(4,457 |
) |
Interest rate |
|
Derivatives liabilities — long-term |
|
(3,379 |
) |
(3,970 |
) |
|
|
|
|
|
|
|
|
Total derivatives not designated as hedging instruments |
|
|
|
$ |
(27,631 |
) |
$ |
(32,834 |
) |
(1) Includes $3.5 million and $3.2 million, as of September 30, 2012 and December 31, 2011, of cash settlements made on our purchased puts and swaps with calls which were settled in the month subsequent to period end.
(2) Includes deferred premiums of $8.7 million related to various purchased puts and three-way collar contracts.
(3) Includes deferred premiums of $2.4 million related to three-way collar contracts. | |
|
Schedule of derivative instruments by location of gain/(loss) |
|
|
|
|
Amount of Gain/(Loss) |
|
Amount of Gain/(Loss) |
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine months Ended
September 30, |
|
Type of Contract |
|
Location of Gain/(Loss) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
(In thousands) |
|
Derivatives in cash flow hedging relationships: |
|
|
|
|
|
|
|
|
|
|
|
Interest rate(1) |
|
Interest expense |
|
$ |
133 |
|
$ |
(1,193 |
) |
$ |
(295 |
) |
$ |
(2,934 |
) |
Total derivatives in cash flow hedging relationships |
|
|
|
$ |
133 |
|
$ |
(1,193 |
) |
$ |
(295 |
) |
$ |
(2,934 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
Commodity(2) |
|
Oil and gas revenue |
|
$ |
11,494 |
|
$ |
1,320 |
|
$ |
15,221 |
|
$ |
1,171 |
|
Commodity |
|
Derivatives, net |
|
(24,529 |
) |
4,984 |
|
(26,407 |
) |
(5,250 |
) |
Interest rate |
|
Interest expense |
|
(931 |
) |
(3,921 |
) |
(2,366 |
) |
(9,933 |
) |
Total derivatives not designated as hedging instruments |
|
|
|
$ |
(13,966 |
) |
$ |
2,383 |
|
$ |
(13,552 |
) |
$ |
(14,012 |
) |
(1) Amounts were reclassified from AOCI into earnings.
(2) Amounts represent the mark-to-market portion of our provisional oil sales contracts. | |
|