Derivative Commodity Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Gain (Loss) on Derivative Instruments

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

Years ended December 31, (in thousands)	2015			2014		2013
Open non-cash mark-to-market gains (losses) on derivative instruments	$	(281,752	)	$	315,445	$	(47,832	)
Closed gains (losses) on derivative instruments	397,045			19,574		(2,192		)
Gain (loss) on derivative instruments, net	$	115,293		$	335,019	$	(50,024	)

Schedule of Derivative Assets and 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)	December 31, 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	$	72,563	$	(15,600	)	$	56,963	$	—	$	—	$	56,963
Liabilities
Derivative instruments	16,059		(15,600		)	459		—		—		459
Total derivatives	$	56,504	$	—		$	56,504	$	—	$	—	$	56,504

(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
Liabilities
Derivative instruments	18,628		(17,640		)	988		—		—		988
Total derivatives	$	321,349	$	—		$	321,349	$	—	$	—	$	321,349

*All derivative instruments were current at December 31, 2015 and 2014.

The following fair value hierarchy tables present information about Energen’s assets and liabilities measured at fair value on a recurring basis:

	December 31, 2015
(in thousands)	Level 2		Level 3			Total
Assets
Derivative instruments	$	69,864	$	(12,901	)	$	56,963
Liabilities
Derivative instruments	2,699		(3,158		)	(459		)
Net derivative asset (liability)	$	72,563	$	(16,059	)	$	56,504

	December 31, 2014
(in thousands)	Level 2		Level 3			Total
Assets
Derivative instruments	$	294,865	$	27,472		$	322,337
Liabilities
Derivative instruments	2,048		(3,036		)	(988		)
Net derivative asset	$	296,913	$	24,436		$	321,349

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

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

Years ended December 31, (in thousands)	Location on Statements of Income	2014		2013
Net gain (loss) recognized in other comprehensive income on derivatives (effective portion), net of tax of $23 and ($6,660)	—	$	37	$	(10,866	)
Gain reclassified from accumulated other comprehensive income into income (effective portion)	Gain (loss) on derivative instruments, net	$	21,612	$	34,293
Gain (loss) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Gain (loss) on derivative instruments, net	$	—	$	835

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

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

Years ended December 31, (in thousands)	Location on Statements of Income	2015		2014		2013
Gain (loss) recognized in income on derivatives	Gain (loss) on derivative instruments, net	$	115,293	$	313,408	$	(73,980	)

Schedule of Hedging Transactions

As of December 31, 2015, Energen entered into the following transactions for 2016 and subsequent years:

Production Period	Total Hedged Volumes		Average Contract Price	Description
Oil
2016	1,086	MBbl	$63.80 Bbl	NYMEX Swaps
Oil Basis Differential
2016	7,524	MBbl	$(1.92) Bbl	WTI/WTI Basis Swaps
2016	2,117	MBbl	$(1.63) Bbl	WTS/WTI Basis Swaps
WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing
WTS - West Texas Sour/Midland, WTI - West Texas Intermediate/Cushing