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Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Values of Derivative Contracts Recorded in Condensed Consolidated Balance Sheet
The fair values of the derivative contracts recorded in the condensed consolidated balance sheets as of September 30, 2017 and December 31, 2016, are as follows: 
 
 

 
 
 
 
Fair Value As Of
(in thousands)
 
Balance Sheet Location
 
September 30, 2017
 
December 31, 2016
Derivatives not designated as hedging instruments
 
 
 
 
 
 
Propane swap agreements
 
Derivative assets, at fair value
 
$
15

 
$
8

Put options
 
Derivative assets, at fair value
 
—

 
9

       Natural gas swap contracts
 
Derivative assets, at fair value
 
1

 
—

Derivatives designated as cash flow hedges
 
 
 
 
 
 
Natural gas futures contracts
 
Derivative assets, at fair value
 
—

 
113

Propane swap agreements
 
Derivative assets, at fair value
 
1,510

 
693

Total asset derivatives
 
 
 
$
1,526

 
$
823



 
 
 
Liability Derivatives
 
 
 
 
Fair Value As Of
(in thousands)
 
Balance Sheet Location
 
September 30, 2017
 
December 31, 2016
Derivatives not designated as hedging instruments
 
 
 
 
 
 
Natural gas futures contracts
 
Derivative liabilities, at fair value
 
$
13

 
$773
Derivatives designated as cash flow hedges
 
 
 
 
 
 
Natural gas swap contracts
 
Derivative liabilities, at fair value
 
412

 
—

Natural gas futures contracts
 
Derivative liabilities, at fair value
 
1,307

 
—

Total liability derivatives
 
 
 
$
1,732

 
$
773
Effects of Gains and Losses from Derivative Instruments on Condensed Consolidated Financial Statements
The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows: 
  
 
 
 
Amount of Gain (Loss) on Derivatives:
 
 
Location of Gain
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
(in thousands)
 
(Loss) on Derivatives
 
2017
 
2016
 
2017
 
2016
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Realized gain on forward contracts and options (1)
 
Revenue
 
$
—

 
$
(231
)
 
$
112

 
$
44

Unrealized gain (loss) on forward contracts (1)
 
Revenue
 
—

 
(2
)
 
—

 
—

Natural gas futures contracts
 
Cost of sales
 
286

 
205

 
907

 
205

Propane swap agreements
 
Cost of sales
 
15

 
—

 
11

 
—

Natural gas swap contracts
 
Cost of sales
 
1

 
—

 
1

 
—

Derivatives designated as fair value hedges
 
 
 
 
 
 
 
 
 
 
Put /Call option (2)
 
Cost of sales
 
—

 
—

 
(9
)
 
73

       Natural gas futures contracts
 
Natural gas inventory
 
—

 
—

 
—

 
(233
)
Derivatives designated as cash flow hedges
 
 
 
 
 
 
 
 
 
 
Propane swap agreements
 
Cost of sales
 
198

 
—

 
663

 
(364
)
Propane swap agreements
 
Other comprehensive income
 
1,590

 
213

 
814

 
559

       Natural gas futures contracts
 
Cost of sales
 
(852
)
 
105

 
929

 
464

       Natural gas futures contracts
 
Other comprehensive income (loss)
 
(1,296
)
 
(123
)
 
(1,420
)
 
349

       Natural gas swap agreements
 
Cost of sales
 
1

 
—

 
1

 
—

       Natural gas swap agreements
 
Other comprehensive loss
 
(413
)
 
—

 
(413
)
 
—

Total
 
 
 
$
(470
)
 
$
167

 
$
1,596

 
$
1,097



(1) 
All of the realized and unrealized gain (loss) on forward contracts represents the effect of trading activities on our condensed consolidated statements of income.
(2) 
As a fair value hedge with no ineffective portion, the unrealized gains and losses associated with this call option are recorded in cost of sales, offset by the corresponding change in the value of propane inventory (hedged item), which is also recorded in cost of sales. The amounts in cost of sales offset to zero, and the unrealized gains and losses of this put option effectively changed the value of propane inventory on the condensed consolidated balance sheets.