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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following fair value hierarchy tables present information about Energen’s assets and liabilities measured at fair value on a recurring basis:

 
June 30, 2015
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
145,979

$
1,810

$
147,789

Total assets
145,979

1,810

147,789

Liabilities:
 
 
 
Derivative instruments
1,069

(11,289
)
(10,220
)
Noncurrent derivative instruments
699

(4,584
)
(3,885
)
Total liabilities
1,768

(15,873
)
(14,105
)
Net derivative asset
$
147,747

$
(14,063
)
$
133,684


 
December 31, 2014
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
294,865

$
27,472

$
322,337

Total assets
294,865

27,472

322,337

Liabilities:
 
 
 
Derivative instruments
2,048

(3,036
)
(988
)
Total liabilities
2,048

(3,036
)
(988
)
Net derivative asset
$
296,913

$
24,436

$
321,349
Schedule of Changes in Fair Value of Derivative Instruments Classified as Level 3
The tables below set forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows:

 
Three months ended
 
June 30,
(in thousands)
2015
2014
Balance at beginning of period
$
2,413

$
1,378

Realized gains
661

785

Unrealized gains (losses) relating to instruments held at the reporting date*
(16,476
)
3,800

Settlements during period
(661
)
(756
)
Balance at end of period
$
(14,063
)
$
5,207


 
Six months ended
 
June 30,
(in thousands)
2015
2014
Balance at beginning of period
$
24,436

$
18,289

Realized gains (losses)
13,814

(2,158
)
Unrealized losses relating to instruments held at the reporting date*
(38,499
)
(13,111
)
Settlements during period
(13,814
)
2,187

Balance at end of period
$
(14,063
)
$
5,207

*Includes $15.8 million and $20.9 million in mark-to-market losses for the three months and six months ended June 30, 2015, respectively. Includes $5.2 million in mark-to-market gains and $4.2 million in mark-to-market losses for the three months and six months ended June 30, 2014, respectively.
Schedule of Fair Value Inputs, Derivatives, Quantitative Information
The table below sets forth quantitative information about Energen’s Level 3 fair value measurements of derivative commodity instruments as follows:

(in thousands, except price data)
Fair Value as of June 30, 2015
Valuation Technique*
Unobservable Input*
Range
Oil Basis - WTI/WTI
 
 
 
 
2015
$
(16,604
)
Discounted Cash Flow
Forward Basis
($0.05 - $0.35) Bbl
2016
$
(7,866
)
Discounted Cash Flow
Forward Basis
($0.80 - $0.88) Bbl
Oil Basis - WTS/WTI
 
 
 
 
2015
$
(5,427
)
Discounted Cash Flow
Forward Basis
$0.59 - $0.76 Bbl
2016
$
(2,676
)
Discounted Cash Flow
Forward Basis
($0.26-$0.80) Bbl
Natural Gas Basis - San Juan
 
 
 
 
2015
$
14,336

Discounted Cash Flow
Forward Basis
($0.09 - $0.10) Mcf
Natural Gas Basis - Permian
 
 
 
 
2015
$
4,174

Discounted Cash Flow
Forward Basis
($0.10) Mcf
*Discounted cash flow represents an income approach in calculating fair value including the referenced unobservable input and a discount reflecting credit quality of the counterparty.