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Risk Management and Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2014
Risk Management and Derivative Instruments  
Schedule of the entity's open commodity derivative contract positions

 

 

 

Hedged
Volume

 

Weighted-Average
Fixed Price

 

 

 

 

 

 

 

 

 

Oil (Bbls):

 

 

 

 

 

 

 

WTI Swaps — 2014

 

1,097,000

 

 

 

$

89.04

 

WTI Swaps — 2015

 

2,908,000

 

 

 

$

89.42

 

 

 

 

 

 

 

 

 

WTI Collars — 2014

 

40,200

 

$

86.49

-

$

97.71

 

 

 

 

 

 

 

 

 

WTI to LLS Basis Differential Swaps — 2014 (1)

 

91,500

 

 

 

$

5.35

 

 

 

 

 

 

 

 

 

Natural Gas (MMBtu):

 

 

 

 

 

 

 

Swaps — 2014 (2)

 

4,508,000

 

 

 

$

4.17

 

Swaps — 2015

 

18,250,000

 

 

 

$

4.13

 

 

 

 

 

 

 

 

 

Collars — 2014

 

194,001

 

$

3.39

-

$

4.57

 

 

(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 September 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 September 30, 2014 and December 31, 2013, respectively (in thousands):

 

Type

 

Balance Sheet Location (1)

 

September 30, 2014

 

December 31, 2013

 

Oil Swaps

 

Derivative financial instruments — Current Assets

 

$

6,557

 

$

—

 

Oil Swaps

 

Derivative financial instruments — Current Liabilities

 

(3,823

)

(28,871

)

Oil Swaps

 

Derivative financial instruments — Non-Current Liabilities

 

(101

)

(3,338

)

NGL Swaps

 

Derivative financial instruments — Current Assets

 

—

 

469

 

NGL Swaps

 

Derivative financial instruments — Current Liabilities

 

—

 

(74

)

Gas Swaps

 

Derivative financial instruments — Current Assets

 

1,985

 

469

 

Gas Swaps

 

Derivative financial instruments — Non-Current Assets

 

436

 

19

 

Gas Swaps

 

Derivative financial instruments — Current Liabilities

 

(75

)

(496

)

Gas Swaps

 

Derivative financial instruments — Non-Current Liabilities

 

—

 

(313

)

Oil Collars

 

Derivative financial instruments — Current Assets

 

30

 

64

 

Oil Collars

 

Derivative financial instruments — Current Liabilities

 

—

 

(272

)

Gas Collars

 

Derivative financial instruments — Current Assets

 

15

 

751

 

Gas Collars

 

Derivative financial instruments — Current Liabilities

 

(6

)

(26

)

Basis Differential Swaps

 

Derivative financial instruments — Current Assets

 

221

 

806

 

Total derivative fair value at period end

 

$

5,239

 

$

(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 September 30, 2014 and December 31, 2013, respectively (in thousands):

 

 

 

 

 

September 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

 

$

8,808

 

$

1,475

 

$

7,333

 

Commodity contracts

 

Derivative financial instruments - noncurrent

 

436

 

—

 

436

 

 

 

 

 

$

9,244

 

$

1,475

 

$

7,769

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Derivative financial instruments - current

 

$

3,904

 

$

1,475

 

$

2,429

 

Commodity contracts

 

Derivative financial instruments - noncurrent

 

101

 

—

 

101

 

 

 

 

 

$

4,005

 

$

1,475

 

$

2,530

 

 

 

 

 

 

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 September 30,

 

For the Nine Months
Ended September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

(in thousands)

 

(in thousands)

 

Realized net losses

 

$

(7,265

)

$

(9,927

)

$

(39,213

)

$

(16,002

)

Unrealized net gains (losses)

 

58,243

 

(35,369

)

36,051

 

(26,997

)

Gains (losses) on commodity derivative contracts - net

 

$

50,978

 

$

(45,296

)

$

(3,162

)

$

(42,999

)