Risk Management and Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Risk Management and Derivative Instruments

Schedule of the entity's open commodity derivative contract positions

	Hedged	Weighted-Average
	Volume	Fixed Price
Oil (Bbls):
WTI Swaps — 2014	2,194,000	$ 89.04
WTI Swaps — 2015	2,000,000	$87.60
WTI Collars — 2014	81,600	$ 87.83    -    $ 97.86
WTI to LLS Basis Differential Swaps — 2014 (1)	229,500	$  5.35
NGL (Bbls):
NGL Swaps — 2014	34,500	$ 61.43
Natural Gas (MMBtu):
Swaps — 2014 (2)	9,016,000	$ 4.17
Swaps — 2015	18,250,000	$ 4.13
Collars — 2014 (3)	691,002	$   3.88   -   $   4.99

(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 1,519,000 MMBtus in natural gas swaps that priced during the period, but had not cash settled as of June 30, 2014.

(3) Includes 101,000 MMBtus in natural gas collars that priced during the period, but had not cash settled as of June 30, 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 June 30, 2014 and December 31, 2013, respectively (in thousands):

Type	Balance Sheet Location (1)	June 30, 2014			December 31, 2013
Oil Swaps	Derivative financial instruments — Current Liabilities	(43,714		)	(28,871		)
Oil Swaps	Derivative financial instruments — Non-Current Liabilities	(5,741		)	(3,338		)
NGL Swaps	Derivative financial instruments — Current Assets	153			469
NGL Swaps	Derivative financial instruments — Current Liabilities	(66		)	(74		)
Gas Swaps	Derivative financial instruments — Current Assets	—			469
Gas Swaps	Derivative financial instruments — Non-Current Assets	17			19
Gas Swaps	Derivative financial instruments — Current Liabilities	(3,702		)	(496		)
Gas Swaps	Derivative financial instruments — Non-Current Liabilities	(128		)	(313		)
Oil Collars	Derivative financial instruments — Current Assets	—			64
Oil Collars	Derivative financial instruments — Current Liabilities	(528		)	(272		)
Gas Collars	Derivative financial instruments — Current Assets	124			751
Gas Collars	Derivative financial instruments — Current Liabilities	(32		)	(26		)
Basis Differential Swaps	Derivative financial instruments — Current Assets	613			806
Total derivative fair value at period end		$	(53,004	)	$	(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 June 30, 2014 and December 31, 2013, respectively (in thousands):

		June 30, 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	$	890	$	890	$	—
Commodity contracts	Derivative financial instruments - noncurrent	17		—		17
		$	907	$	890	$	17
Derivative liabilities:
Commodity contracts	Derivative financial instruments - current	$	48,042	$	890	$	47,152
Commodity contracts	Derivative financial instruments - noncurrent	5,869		—		5,869
		$	53,911	$	890	$	53,021

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

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)						(in thousands)
Realized net losses	$	(17,138	)	$	(1,071	)	$	(31,948	)	$	(6,075	)
Unrealized net gains (losses)	(14,329		)	23,492			(22,192		)	8,372
Gains (losses) on commodity derivative contracts - net	$	(31,467	)	$	22,421		$	(54,140	)	$	2,297