Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Open Option Contracts Written [Line Items]

Summary of gross asset balances of derivative instruments

The following table presents the gross asset balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its unaudited condensed consolidated balance sheet as of December 31, 2012 (in thousands).



Derivative Instruments	Gross amounts of recognized assets		Gross amounts netted in the condensed consolidated balance sheet			Net amounts of assets presented in the consolidated balance sheet		Amounts subject to master netting arrangements presented on a gross basis
Counterparty A
Current assets	$	6,445	$	(2,373	)	$	4,072	$	—
Other assets	1,096		(370		)	726		—
Counterparty B
Current assets	530		(224		)	306		82
Other assets	384		(339		)	45		—
Total	$	8,455	$	(3,306	)	$	5,149	$	82



Derivative Instruments	Gross amounts of recognized assets		Gross amounts netted in the consolidated balance sheet			Net amounts of assets presented in the consolidated balance sheet		Amounts subject to master netting arrangements presented on a gross basis
Counterparty A
Current assets	$	2,104	$	(2,104	)	$	—	$	—
Other assets	1,034		(909		)	125		—
Counterparty B
Current assets	1,741		(1,289		)	452		138
Other assets	1,553		(1,039		)	514		—
Counterparty C
Current assets	2,874		(2,289		)	585		301
Other assets	1,478		(1,122		)	356		—
Total	$	10,784	$	(8,752	)	$	2,032	$	439

Summary of gross liability balances of derivative instruments

The following table presents the gross liability balances of the Company’s derivative financial instruments, the amounts subject to master netting arrangements, the amounts that the Company has presented on a net basis, the amounts subject to master netting across different commodity types that were presented on a gross basis and the location of these balances in its unaudited condensed consolidated balance sheet as of September 30, 2013 (in thousands).



Derivative Instruments	Gross amounts of recognized liabilities		Gross amounts netted in the consolidated balance sheet			Net amounts of liabilities presented in the consolidated balance sheet		Amounts subject to master netting arrangements presented on a gross basis
Counterparty A
Current liabilities	$	3,329	$	(2,104	)	$	1,225	$	—
Long-term liabilities	909		(909		)	—		—
Counterparty B
Current liabilities	2,749		(1,289		)	1,460		138
Long-term liabilities	1,039		(1,039		)	—		—
Counterparty C
Current liabilities	3,782		(2,289		)	1,493		301
Long-term liabilities	1,122		(1,122		)	—		—
Total	$	12,930	$	(8,752	)	$	4,178	$	439



Derivative Instruments	Gross amounts of recognized liabilities		Gross amounts netted in the condensed consolidated balance sheet			Net amounts of liabilities presented in the condensed consolidated balance sheet		Amounts subject to master netting arrangements presented on a gross basis
Counterparty A
Current liabilities	$	2,373	$	(2,373	)	$	—	$	—
Long-term liabilities	370		(370		)	—		—
Counterparty B
Current liabilities	894		(224		)	670		82
Long-term liabilities	339		(339		)	—		—
Total	$	3,976	$	(3,306	)	$	670	$	82

Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations

The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations for the periods presented (in thousands).



		Three Months Ended September 30,						Nine Months Ended September 30,
Type of Instrument	Location in Condensed Consolidated Statement of Operations	2013			2012			2013			2012
Derivative Instrument
Oil	Revenues: Realized (loss) gain on derivatives	$	(1,519	)	$	374		$	(1,984	)	$	1,093
Natural Gas	Revenues: Realized gain on derivatives	161			2,996			790			10,053
NGL’s	Revenues: Realized gain on derivatives	193			1			675			1
Realized (loss) gain on derivatives		(1,165		)	3,371			(519		)	11,147
Oil	Revenues: Unrealized loss on derivatives	(8,132		)	(9,053		)	(6,818		)	(7,364		)
Natural Gas	Revenues: Unrealized gain (loss) on derivatives	57			(3,985		)	(132		)	6,170
NGL’s	Revenues: Unrealized (loss) gain on derivatives	(1,252		)	45			324			45
Unrealized loss on derivatives		(9,327		)	(12,993		)	(6,626		)	(1,149		)
Total		$	(10,492	)	$	(9,622	)	$	(7,145	)	$	9,998

Open costless collar contracts [Member]

Open Option Contracts Written [Line Items]

Summary of contracts for oil and natural gas

The following is a summary of the Company’s open costless collar contracts for oil and natural gas and open swap contracts for oil and natural gas liquids at September 30, 2013.



Commodity	Calculation Period	Notional Quantity (Bbl/month)	Price Floor ($/Bbl)	Price Ceiling ($/Bbl)	Fair Value of Asset (Liability) (thousands)
Oil	10/01/2013 - 12/31/2013	20,000	85.00	102.25	$	(131	)
Oil	10/01/2013 - 12/31/2013	20,000	85.00	108.80	(22		)
Oil	10/01/2013 - 12/31/2013	20,000	85.00	110.40	(13		)
Oil	10/01/2013 - 12/31/2013	20,000	90.00	102.80	(105		)
Oil	10/01/2013 - 12/31/2013	20,000	90.00	115.00	13
Oil	10/01/2013 - 06/30/2014	8,000	90.00	114.00	101
Oil	10/01/2013 - 06/30/2014	12,000	90.00	115.50	163
Oil	10/01/2013 - 12/31/2014	12,200	85.00	100.40	(249		)
Oil	01/01/2014 - 12/31/2014	15,000	85.00	97.50	(399		)
Oil	01/01/2014 - 12/31/2014	30,000	85.00	98.00	(767		)
Oil	01/01/2014 - 12/31/2014	12,000	85.00	100.00	(154		)
Oil	01/01/2014 - 12/31/2014	15,000	87.00	97.00	(357		)
Oil	01/01/2014 - 12/31/2014	20,000	88.00	95.60	(593		)
Oil	01/01/2014 - 12/31/2014	20,000	90.00	97.00	(294		)
Oil	01/01/2014 - 12/31/2014	12,000	90.00	97.90	(97		)
Oil	01/01/2014 - 12/31/2014	15,000	90.00	97.90	(124		)
Oil	01/01/2014 - 12/31/2014	15,000	90.00	98.00	(135		)
Oil	01/01/2014 - 12/31/2014	15,000	90.00	101.15	133
Total open oil costless collar contracts					(3,030		)



Commodity	Calculation Period	Notional Quantity (MMBtu/month)	Price Floor ($/MMBtu)	Price Ceiling ($/MMBtu)	Fair Value of Asset (Liability) (thousands)
Natural Gas	10/01/2013 - 12/31/2013	100,000	3.00	3.83	(16	)
Natural Gas	10/01/2013 - 12/31/2013	100,000	3.00	4.95	1
Natural Gas	10/01/2013 - 12/31/2013	100,000	3.00	4.96	1
Natural Gas	10/01/2013 - 12/31/2013	150,000	3.00	4.24	(5	)
Natural Gas	10/01/2013 - 12/31/2013	100,000	3.25	4.41	3
Natural Gas	10/01/2013 - 12/31/2013	100,000	3.25	4.44	3
Natural Gas	10/01/2013 - 12/31/2013	100,000	3.50	4.37	15
Natural Gas	10/01/2013 - 12/31/2013	80,000	3.75	4.57	54
Natural Gas	01/01/2014 - 12/31/2014	100,000	3.00	5.15	(2	)
Natural Gas	01/01/2014 - 12/31/2014	100,000	3.25	5.21	59
Natural Gas	01/01/2014 - 12/31/2014	100,000	3.25	5.22	60
Natural Gas	01/01/2014 - 12/31/2014	100,000	3.25	5.37	76
Natural Gas	01/01/2014 - 12/31/2014	100,000	3.25	5.42	79
Natural Gas	01/01/2014 - 12/31/2014	100,000	3.50	4.90	118
Natural Gas	01/01/2014 - 12/31/2014	100,000	3.75	4.77	227
Natural Gas	01/01/2015 - 12/31/2015	200,000	3.75	5.04	331
Total open natural gas costless collar contracts					1,004

Open Swap Contracts [Member]

Open Option Contracts Written [Line Items]

Summary of contracts for oil and natural gas



Commodity	Calculation Period	Notional Quantity (Bbl/month)	Fixed Price ($/Bbl)	Fair Value of Liability (thousands)
Oil	10/01/2013 - 12/31/2013	10,000	90.20	(341	)
Oil	10/01/2013 - 12/31/2013	10,000	90.65	(327	)
Total open oil swap contracts				(668	)



Commodity	Calculation Period	Notional Quantity (Gal/month)	Fixed Price ($/Gal)	Fair Value of Asset (Liability) (thousands)
Purity Ethane	10/01/2013 - 12/31/2013	110,000	0.335	28
Purity Ethane	10/01/2013 - 12/31/2013	110,000	0.355	35
Propane	10/01/2013 - 12/31/2013	53,000	0.953	(20		)
Propane	10/01/2013 - 12/31/2013	106,000	0.960	(37		)
Propane	10/01/2013 - 12/31/2013	53,000	1.001	(12		)
Propane	10/01/2013 - 12/31/2013	150,000	1.103	16
Propane	01/01/2014 - 12/31/2014	116,000	0.950	(87		)
Propane	01/01/2014 - 12/31/2014	116,000	1.003	8
Propane	01/01/2014 - 12/31/2014	60,000	1.015	13
Normal Butane	10/01/2013 - 12/31/2013	14,700	1.455	3
Normal Butane	10/01/2013 - 12/31/2013	14,700	1.560	8
Normal Butane	10/01/2013 - 12/31/2013	21,000	1.575	12
Normal Butane	10/01/2013 - 12/31/2013	117,000	1.575	63
Normal Butane	01/01/2014 - 12/31/2014	17,500	1.540	57
Normal Butane	01/01/2014 - 12/31/2014	45,500	1.550	143
Isobutane	10/01/2013 - 12/31/2013	7,000	1.515	2
Isobutane	10/01/2013 - 12/31/2013	7,000	1.625	4
Isobutane	10/01/2013 - 12/31/2013	43,500	1.675	34
Isobutane	10/01/2013 - 12/31/2013	23,000	1.675	18
Isobutane	01/01/2014 - 12/31/2014	22,000	1.640	87
Isobutane	01/01/2014 - 12/31/2014	37,000	1.640	156
Natural Gasoline	10/01/2013 - 12/31/2013	12,000	2.025	(3		)
Natural Gasoline	10/01/2013 - 12/31/2013	12,000	2.085	—
Natural Gasoline	10/01/2013 - 12/31/2013	12,000	2.102	—
Natural Gasoline	10/01/2013 - 12/31/2013	36,000	2.105	1
Natural Gasoline	10/01/2013 - 12/31/2013	90,500	2.148	20
Natural Gasoline	01/01/2014 - 12/31/2014	30,000	1.970	(7		)
Natural Gasoline	01/01/2014 - 12/31/2014	41,000	2.000	6
Total open NGL swap contracts				548
Total open derivative financial instruments				$	(2,146	)

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details