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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.