Derivative Commodity Instruments (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments, Gain (Loss)

The following table details gain (loss) on derivative instruments, net, as follows:

	Three months ended						Six months ended
	June 30,						June 30,
(in thousands)	2015			2014			2015			2014
Open non-cash mark-to-market losses on derivative instruments	$	(116,867	)	$	(59,621	)	$	(176,518	)	$	(93,302	)
Closed gains (losses) on derivative instruments	65,903			(25,225		)	159,590			(44,935		)
Loss on derivative instruments, net	$	(50,964	)	$	(84,846	)	$	(16,928	)	$	(138,237	)

Schedule of Derivative Liabilities at Fair Value

The following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets:

(in thousands)	June 30, 2015
								Gross Amounts Not Offset in the Balance Sheets
	Gross Amounts Recognized at Fair Value		Gross Amounts Offset in the Balance Sheets			Net Amount Presented in the Balance Sheets		Financial Instruments		Cash Collateral Received		Net Fair Value Presented in the Balance Sheets
Derivatives not designated as hedging instruments
Assets
Derivative instruments	$	165,556	$	(17,767	)	$	147,789	$	—	$	—	$	147,789
Noncurrent derivative instruments	707		(707		)	—		—		—		—
Total derivative assets	166,263		(18,474		)	147,789		—		—		147,789
Liabilities
Derivative instruments	27,987		(17,767		)	10,220		—		—		10,220
Noncurrent derivative instruments	4,592		(707		)	3,885		—		—		3,885
Total derivative liabilities	32,579		(18,474		)	14,105		—		—		14,105
Total derivatives	$	133,684	$	—		$	133,684	$	—	$	—	$	133,684

(in thousands)	December 31, 2014
								Gross Amounts Not Offset in the Balance Sheets
	Gross Amounts Recognized at Fair Value		Gross Amounts Offset in the Balance Sheets			Net Amount Presented in the Balance Sheets		Financial Instruments		Cash Collateral Received		Net Fair Value Presented in the Balance Sheets
Derivatives not designated as hedging instruments
Assets
Derivative instruments	$	339,977	$	(17,640	)	$	322,337	$	—	$	—	$	322,337
Noncurrent derivative instruments	—		—			—		—		—		—
Total derivative assets	339,977		(17,640		)	322,337		—		—		322,337
Liabilities
Derivative instruments	18,628		(17,640		)	988		—		—		988
Noncurrent derivative instruments	—		—			—		—		—		—
Total derivative liabilities	18,628		(17,640		)	988		—		—		988
Total derivatives	$	321,349	$	—		$	321,349	$	—	$	—	$	321,349

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables detail the effect of derivative commodity instruments in cash flow hedging relationships on the financial statements:

(in thousands)	Location on Statements of Income	Three months ended June 30, 2014
Net gain recognized in other comprehensive income on derivatives (effective portion), net of tax of $6	—	$	9
Gain reclassified from accumulated other comprehensive income into income (effective portion)	Gain (loss) on derivative instruments, net	$	5,735

(in thousands)	Location on Statements of Income	Six months ended June 30, 2014
Net gain recognized in other comprehensive income on derivatives (effective portion), net of tax of $7	—	$	11
Gain reclassified from accumulated other comprehensive income into income (effective portion)	Gain (loss) on derivative instruments, net	$	9,789

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables detail the effect of open and closed derivative commodity instruments not designated as hedging instruments on the income statement:

(in thousands)	Location on Statements of Income	Three months ended June 30, 2015			Three months ended June 30, 2014
Loss recognized in income on derivatives	Gain (loss) on derivative instruments, net	$	(50,964	)	$	(90,581	)

(in thousands)	Location on Statements of Income	Six months ended June 30, 2015			Six months ended June 30, 2014
Loss recognized in income on derivatives	Gain (loss) on derivative instruments, net	$	(16,928	)	(148,026	)

Schedule of Hedging Transactions

As of June 30, 2015, Energen had entered into the following transactions for the remainder of 2015 and subsequent years:

Production Period	Total Hedged Volumes		Average Contract Price	Description
Oil
2015	7,040	MBbl	$78.24 Bbl	NYMEX Swaps
2016	1,086	MBbl	$63.80 Bbl	NYMEX Swaps
Oil Basis Differential
2015	3,780	MBbl	$(4.55) Bbl	WTI/WTI Basis Swaps
2015	1,080	MBbl	$(4.30) Bbl	WTS/WTI Basis Swaps
2016	7,524	MBbl	$(1.92) Bbl	WTI/WTI Basis Swaps
2016	2,117	MBbl	$(1.63) Bbl	WTS/WTI Basis Swaps
Natural Gas
2015	10.8	Bcf	$4.14 Mcf	Basin Specific Swaps - San Juan
2015	3.0	Bcf	$4.20 Mcf	Basin Specific Swaps - Permian
WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing
WTS - West Texas Sour/Midland, WTI - West Texas Intermediate/Cushing