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Risk Management and Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2014
Risk Management and Derivative Instruments  
Schedule of the entity's open commodity derivative contract positions

As of March 31, 2014, the Company had the following open commodity derivative contract positions:

 

 

 

Hedged

 

Weighted-Average

 

 

 

Volume

 

Fixed Price

 

Oil (Bbls):

 

 

 

 

 

WTI Swaps — 2014

 

3,274,950

 

$

88.85

 

WTI Swaps — 2015

 

1,820,000

 

$

86.55

 

 

 

 

 

 

 

WTI Collars — 2014

 

123,000

 

$

88.27

-

$

97.91

 

 

 

 

 

 

 

WTI to LLS Basis Differential Swaps — 2014 (1)

 

366,000

 

$

5.35

 

 

 

 

 

 

 

NGL (Bbls):

 

 

 

 

 

NGL Swaps — 2014

 

81,000

 

$

61.86

 

 

 

 

 

 

 

Natural Gas (MMBtu):

 

 

 

 

 

Swaps — 2014 (2)

 

13,475,000

 

$

4.17

 

Swaps — 2015

 

18,250,000

 

$

4.13

 

 

 

 

 

 

 

Collars — 2014 (3)

 

1,188,003

 

$

3.96

-

$

5.06

 

 

(1)         The Company enters into swap arrangements intended to fix the differential between the Louisiana Light Sweet (“LLS”) pricing and the West Texas Intermediate (“NYMEX WTI”) pricing.

(2)         Includes 1,470,000 MMBtus in natural gas swaps that priced during the period, but had not cash settled as of March 31, 2014.

(3)         Includes 64,667 MMBtus that priced during the period, but had not cash settled as of March 31, 2014.

 
Summary of location and fair values amounts of all derivative instruments as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited condensed consolidated balance sheets

The following table summarizes the gross fair values of derivative instruments by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s unaudited condensed consolidated balance sheets at March 31, 2014 and December 31, 2013, respectively (in thousands):

 

Type

 

Balance Sheet Location (1)

 

March 31, 2014

 

December 31, 2013

 

Oil Swaps

 

Derivative financial instruments — Current Liabilities

 

$

(32,667

)

$

(28,871

)

Oil Swaps

 

Derivative financial instruments — Non-Current Liabilities

 

(2,355

)

(3,338

)

NGL Swaps

 

Derivative financial instruments — Current Assets

 

391

 

469

 

NGL Swaps

 

Derivative financial instruments — Current Liabilities

 

(75

)

(74

)

Gas Swaps

 

Derivative financial instruments — Current Assets

 

—

 

469

 

Gas Swaps

 

Derivative financial instruments — Non-Current Assets

 

827

 

19

 

Gas Swaps

 

Derivative financial instruments — Current Liabilities

 

(5,391

)

(496

)

Gas Swaps

 

Derivative financial instruments — Non-Current Liabilities

 

—

 

(313

)

Oil Collars

 

Derivative financial instruments — Current Assets

 

4

 

64

 

Oil Collars

 

Derivative financial instruments — Current Liabilities

 

(352

)

(272

)

Gas Collars

 

Derivative financial instruments — Current Assets

 

261

 

751

 

Gas Collars

 

Derivative financial instruments — Current Liabilities

 

(64

)

(26

)

Basis Differential Swaps

 

Derivative financial instruments — Current Assets

 

746

 

806

 

Total derivative fair value at period end

 

 

 

$

(38,675

)

$

(30,812

)

 

(1)          The fair values of commodity derivative instruments reported in the Company’s condensed consolidated balance sheets are subject to netting arrangements and qualify for net presentation. The following table summarizes the location and fair value amounts of all derivative instruments in the unaudited condensed consolidated balance sheets, as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited condensed consolidated balance sheets at March 31, 2014 and December 31, 2013, respectively (in thousands):

 

 

 

 

 

March 31, 2014

 

Not Designated as ASC
815 Hedges:

 

Balance Sheet Classification

 

Gross Recognized
Assets/
Liabilities

 

Gross Amounts
Offset

 

Net Recognized Fair
Value Assets/
Liabilities

 

Derivative assets:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Derivative financial instruments - current

 

$

1,402

 

$

1,402

 

$

—

 

Commodity contracts

 

Derivative financial instruments - noncurrent

 

827

 

—

 

827

 

 

 

 

 

$

2,229

 

$

1,402

 

$

827

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Derivative financial instruments - current

 

$

38,549

 

$

1,402

 

$

37,147

 

Commodity contracts

 

Derivative financial instruments - noncurrent

 

2,355

 

—

 

2,355

 

 

 

 

 

$

40,904

 

$

1,402

 

$

39,502

 

 

 

 

 

 

December 31, 2013

 

Not Designated as ASC
815 Hedges:

 

Balance Sheet Classification

 

Gross Recognized
Assets/
Liabilities

 

Gross Amounts
Offset

 

Net Recognized Fair
Value Assets/
Liabilities

 

Derivative assets:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Derivative financial instruments - current

 

$

2,559

 

$

1,859

 

$

700

 

Commodity contracts

 

Derivative financial instruments - noncurrent

 

19

 

—

 

19

 

 

 

 

 

$

2,578

 

$

1,859

 

$

719

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Derivative financial instruments - current

 

$

29,739

 

$

1,859

 

$

27,880

 

Commodity contracts

 

Derivative financial instruments - noncurrent

 

3,651

 

—

 

3,651

 

 

 

 

 

$

33,390

 

$

1,859

 

$

31,531

 

 
Schedule of net losses and unrealized net (losses) gains recorded by the Company related to the change in fair value of the derivative instruments in losses on commodity derivative contracts - net for the periods

 

 

 

 

For the Three Months
Ended March 31,

 

 

 

2014

 

2013

 

 

 

(in thousands)

 

Realized net losses

 

$

(14,810

)

$

(5,004

)

Unrealized net losses

 

(7,863

)

(15,120

)