XML 27 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS
At June 30, 2016, the Company had various costless collar contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling. Each contract is set to expire at varying times during 2016 and 2017.
The following is a summary of the Company’s open costless collar contracts for oil and natural gas at June 30, 2016.
Commodity
Calculation Period
 
Notional Quantity (Bbl or MMBtu)
 
Weighted Average Price Floor ($/Bbl or
$/MMBtu)
 
Weighted Average Price Ceiling ($/Bbl or
$/MMBtu)
 
Fair Value of Asset (Liability) (thousands)
Oil
07/01/2016 - 12/31/2016
 
1,380,000

 
$
42.48

 
$
61.16

 
$
(2,091
)
Oil
01/01/2017 - 12/31/2017
 
1,560,000

 
$
38.62

 
$
47.62

 
(11,801
)
Natural Gas
07/01/2016 - 12/31/2016
 
7,200,000

 
$
2.63

 
$
3.61

 
(228
)
Natural Gas
01/01/2017 - 12/31/2017
 
14,580,000

 
$
2.38

 
$
3.48

 
(3,061
)
Total open derivative financial instruments
 
 
 
 
 
 
 
$
(17,181
)

These derivative financial instruments are subject to master netting arrangements; all but one counterparty allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its interim unaudited condensed consolidated balance sheets.
 The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of June 30, 2016 and December 31, 2015 (in thousands).
Derivative Instruments
Gross
amounts
recognized
 
Gross amounts
netted in the condensed
consolidated
balance sheets
 
Net amounts presented in the condensed
consolidated
balance sheets
June 30, 2016
 
 
 
 
 
   Current assets
$
4,316

 
$
(4,199
)
 
$
117

   Other assets
2,421

 
(2,421
)
 
—

   Current liabilities
(13,959
)
 
4,199

 
(9,760
)
   Other liabilities
(9,959
)
 
2,421

 
(7,538
)
      Total
$
(17,181
)
 
$
—

 
$
(17,181
)
December 31, 2015
 
 
 
 
 
   Current assets
$
16,767

 
$
(483
)
 
$
16,284

   Current liabilities
(483
)
 
483

 
—

      Total
$
16,284

 
$
—

 
$
16,284


The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments.
 
 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
Type of Instrument
Location in Condensed Consolidated Statement of Operations
 
2016
 
2015
 
2016
 
2015
Derivative Instrument
 
 
 
 
 
 
 
 
 
Oil
Revenues: Realized gain on derivatives
 
$
561

 
$
10,524

 
$
6,024

 
$
24,957

Natural Gas
Revenues: Realized gain on derivatives
 
1,904

 
2,716

 
3,504

 
6,315

Natural Gas Liquids
Revenues: Realized gain on derivatives
 
—

 
540

 
—

 
1,013

Realized gain on derivatives
 
2,465

 
13,780

 
9,528

 
32,285

Oil
Revenues: Unrealized loss on derivatives
 
(19,319
)
 
(19,880
)
 
(26,974
)
 
(26,345
)
Natural Gas
Revenues: Unrealized loss on derivatives
 
(7,306
)
 
(3,281
)
 
(6,490
)
 
(4,843
)
Natural Gas Liquids
Revenues: Unrealized loss on derivatives
 
—

 
(371
)
 
—

 
(902
)
Unrealized loss on derivatives
 
(26,625
)
 
(23,532
)
 
(33,464
)
 
(32,090
)
Total
 
 
$
(24,160
)
 
$
(9,752
)
 
$
(23,936
)
 
$
195