XML 27 R14.htm IDEA: XBRL DOCUMENT v3.5.0.2
Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS
At September 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 September 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
10/01/2016 - 12/31/2016
 
690,000

 
$
42.48

 
$
61.16

 
$
(788
)
Oil
01/01/2017 - 12/31/2017
 
2,160,000

 
$
39.56

 
$
50.36

 
(11,097
)
Natural Gas
10/01/2016 - 12/31/2016
 
4,660,000

 
$
2.65

 
$
3.68

 
(43
)
Natural Gas
01/01/2017 - 12/31/2017
 
16,860,000

 
$
2.40

 
$
3.59

 
(2,049
)
Total open derivative financial instruments
 
 
 
 
 
 
 
$
(13,977
)

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 September 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
September 30, 2016
 
 
 
 
 
   Current assets
$
3,498

 
$
(3,498
)
 
$
—

   Other assets
1,512

 
(1,512
)
 
—

   Current liabilities
(13,637
)
 
3,498

 
(10,139
)
   Other liabilities
(5,350
)
 
1,512

 
(3,838
)
      Total
$
(13,977
)
 
$
—

 
$
(13,977
)
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 
 September 30,
 
Nine Months Ended 
 September 30,
Type of Instrument
Location in Condensed Consolidated Statement of Operations
 
2016
 
2015
 
2016
 
2015
Derivative Instrument
 
 
 
 
 
 
 
 
 
Oil
Revenues: Realized gain on derivatives
 
$
837

 
$
17,056

 
$
6,861

 
$
42,013

Natural Gas
Revenues: Realized gain on derivatives
 
48

 
2,215

 
3,552

 
8,531

Natural Gas Liquids
Revenues: Realized gain on derivatives
 
—

 
591

 
—

 
1,602

Realized gain on derivatives
 
885

 
19,862

 
10,413

 
52,146

Oil
Revenues: Unrealized gain (loss) on derivatives
 
2,007

 
6,421

 
(24,967
)
 
(19,923
)
Natural Gas
Revenues: Unrealized gain (loss) on derivatives
 
1,196

 
808

 
(5,294
)
 
(4,035
)
Natural Gas Liquids
Revenues: Unrealized loss on derivatives
 
—

 
(496
)
 
—

 
(1,398
)
Unrealized gain (loss) on derivatives
 
3,203

 
6,733

 
(30,261
)
 
(25,356
)
Total
 
 
$
4,088

 
$
26,595

 
$
(19,848
)
 
$
26,790