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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
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)
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 Changes in Fair Value of Derivative Instruments Classified as Level 3
The table below sets forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows:

Years ended December 31, (in thousands)
2015
2014
2013
Balance at beginning of period
$
24,436

$
18,289

$
89,019

Realized gains
13,145

22,208

55,210

Unrealized gains (losses) relating to instruments held at the reporting date*
(40,495
)
2,981

(71,367
)
Settlements during period
(13,145
)
(19,042
)
(54,573
)
Balance at end of period
$
(16,059
)
$
24,436

$
18,289


*Includes $16.1 million in mark-to-market losses, $20.2 million in mark-to-market gains and $7.6 million in mark-to-market losses for the years ended December 31, 2015, 2014 and 2013, respectively.

Schedule of Level Three Fair Value Measurements of Derivative Commodity Instruments
The tables below set 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 December 31, 2015
Valuation Technique*
Unobservable Input*
Range
Oil Basis - WTI/WTI
 
 
 
 
2016
$
(13,181
)
Discounted Cash Flow
Forward Basis
($0.07 - $0.28) Bbl
Oil Basis - WTS/WTI
 
 
 
 
2016
$
(2,878
)
Discounted Cash Flow
Forward Basis
($0.19 - $0.31) Bbl
*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.