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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 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:

 
September 30, 2015
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
164,475

$
(10,659
)
$
153,816

Noncurrent derivative instruments
3,487

(970
)
2,517

Total assets
167,962

(11,629
)
156,333

Liabilities:
 
 
 
Derivative instruments
—

(3,079
)
(3,079
)
Noncurrent derivative instruments
—

(2,924
)
(2,924
)
Total liabilities
—

(6,003
)
(6,003
)
Net derivative asset (liability)
$
167,962

$
(17,632
)
$
150,330


 
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
 
September 30,
(in thousands)
2015
2014
Balance at beginning of period
$
(14,063
)
$
5,207

Realized gains (losses)
(2,820
)
10,769

Unrealized gains (losses) relating to instruments held at the reporting date*
(3,569
)
9,348

Settlements during period
2,820

(10,438
)
Balance at end of period
$
(17,632
)
$
14,886


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

$
18,289

Realized gains
10,994

8,581

Unrealized losses relating to instruments held at the reporting date*
(42,068
)
(3,734
)
Settlements during period
(10,994
)
(8,250
)
Balance at end of period
$
(17,632
)
$
14,886

*Includes $5.4 million and $20.2 million in mark-to-market losses for the three months and nine months ended September 30, 2015, respectively. Includes $12.2 million and $9.6 million in mark-to-market gains for the three months and nine months ended September 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 September 30, 2015
Valuation Technique*
Unobservable Input*
Range
Oil Basis - WTI/WTI
 
 
 
 
2015
$
(9,731
)
Discounted Cash Flow
Forward Basis
$0.09 - $0.23 Bbl
2016
$
(13,298
)
Discounted Cash Flow
Forward Basis
($0.05 - $0.16) Bbl
Oil Basis - WTS/WTI
 
 
 
 
2015
$
(2,762
)
Discounted Cash Flow
Forward Basis
$0.32 - $0.37 Bbl
2016
$
(3,427
)
Discounted Cash Flow
Forward Basis
($0.17) - $0.19 Bbl
Natural Gas Basis - San Juan
 
 
 
 
2015
$
9,018

Discounted Cash Flow
Forward Basis
($0.09 - $0.10) Mcf
Natural Gas Basis - Permian
 
 
 
 
2015
$
2,568

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.