Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis

The following tables summarize the Company's fair value hierarchy by commodity on a gross basis and the net presentation on the unaudited consolidated balance sheets for derivative assets and liabilities measured at fair value on a recurring basis for the periods presented:



(in thousands)	Level 1		Level 2			Level 3			Total gross fair value			Amounts offset			Net fair value presented on the consolidated balance sheets
As of June 30, 2015:
Assets
Current:
Oil derivatives	$	—	$	124,414		$	—		$	124,414		$	(3,100	)	$	121,314
Natural gas derivatives	—		7,554			—			7,554			—			7,554
Oil deferred premiums	—		—			—			—			(4,695		)	(4,695		)
Natural gas deferred premiums	—		—			—			—			(350		)	(350		)
Noncurrent:
Oil derivatives	$	—	$	85,079		$	—		$	85,079		$	—		$	85,079
Natural gas derivatives	—		2,514			—			2,514			—			2,514
Oil deferred premiums	—		—			—			—			(7,042		)	(7,042		)
Natural gas deferred premiums	—		—			—			—			—			—
Liabilities
Current:
Oil derivatives	$	—	$	(3,100	)	$	—		$	(3,100	)	$	3,100		$	—
Natural gas derivatives	—		—			—			—			—			—
Oil deferred premiums	—		—			(4,695		)	(4,695		)	4,695			—
Natural gas deferred premiums	—		—			(350		)	(350		)	350			—
Noncurrent:
Oil derivatives	$	—	$	—		$	—		$	—		$	—		$	—
Natural gas derivatives	—		—			—			—			—			—
Oil deferred premiums	—		—			(7,042		)	(7,042		)	7,042			—
Natural gas deferred premiums	—		—			—			—			—			—
Net derivative position	$	—	$	216,461		$	(12,087	)	$	204,374		$	—		$	204,374



(in thousands)	Level 1		Level 2		Level 3			Total gross fair value			Amounts offset			Net fair value presented on the consolidated balance sheets
As of December 31, 2014:
Assets
Current:
Oil derivatives	$	—	$	190,303	$	—		$	190,303		$	—		$	190,303
Natural gas derivatives	—		9,647		—			9,647			—			9,647
Oil deferred premiums	—		—		—			—			(4,653		)	(4,653		)
Natural gas deferred premiums	—		—		—			—			(696		)	(696		)
Noncurrent:
Oil derivatives	$	—	$	117,963	$	—		$	117,963		$	—		$	117,963
Natural gas derivatives	—		3,646		—			3,646			—			3,646
Oil deferred premiums	—		—		—			—			(3,821		)	(3,821		)
Natural gas deferred premiums	—		—		—			—			—			—
Liabilities
Current:
Oil derivatives	$	—	$	—	$	—		$	—		$	—		$	—
Natural gas derivatives	—		—		—			—			—			—
Oil deferred premiums	—		—		(4,768		)	(4,768		)	4,653			(115		)
Natural gas deferred premiums	—		—		(696		)	(696		)	696			—
Noncurrent:
Oil derivatives	$	—	$	—	$	—		$	—		$	—		$	—
Natural gas derivatives	—		—		—			—			—			—
Oil deferred premiums	—		—		(3,821		)	(3,821		)	3,821			—
Natural gas deferred premiums	—		—		—			—			—			—
Net derivative position	$	—	$	321,559	$	(9,285	)	$	312,274		$	—		$	312,274

Actual cash payments required for deferred premium contracts

The following table presents actual cash payments required for deferred premiums as of June 30, 2015, and for the calendar years following:



(in thousands)
Remaining 2015	$	2,497
2016	4,471
2017	4,967
2018	426
Total	$	12,361

Summary of changes in assets (liability) classified as Level 3 measurements

A summary of the changes in assets classified as Level 3 measurements for the periods presented are as follows:



	Three months ended June 30,						Six months ended June 30,
(in thousands)	2015			2014			2015			2014
Balance of Level 3 at beginning of period	$	(8,882	)	$	(10,790	)	$	(9,285	)	$	(12,684	)
Change in net present value of deferred premiums for derivatives	(45		)	(55		)	(88		)	(120		)
Total purchases and settlements:
Purchases	(4,409		)	—			(5,384		)	—
Settlements	1,249			1,820			2,670			3,779
Balance of Level 3 at end of period	$	(12,087	)	$	(9,025	)	$	(12,087	)	$	(9,025	)