| 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. |