Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

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, 2017
(in thousands)	Level 2		Level 3			Total
Assets:
Derivative instruments	$	33,437	$	5,626		$	39,063
Noncurrent derivative instruments	7,587		1,947			9,534
Total assets	41,024		7,573			48,597
Liabilities:
Derivative instruments	481		—			481
Noncurrent derivative instruments	574		(72		)	502
Total liabilities	1,055		(72		)	983
Net derivative asset	$	39,969	$	7,645		$	47,614



	December 31, 2016
(in thousands)	Level 2			Level 3			Total
Assets:
Derivative instruments	$	50		$	—		$	50
Liabilities:
Derivative instruments	57,927			7,540			65,467
Noncurrent derivative instruments	1,694			1,312			3,006
Total liabilities	59,621			8,852			68,473
Net derivative liability	$	(59,571	)	$	(8,852	)	$	(68,423	)

Schedule of Changes in Fair Value of Derivative Commodity Instruments

The table below sets 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)	2017			2016
Balance at beginning of period	$	5,574		$	(8,154	)
Realized gains (losses)	417			(1,398		)
Unrealized gains (losses) relating to instruments held at the reporting date*	1,876			(2,496		)
Settlements during period	(222		)	1,398
Balance at end of period	$	7,645		$	(10,650	)



	Six months ended
	June 30,
(in thousands)	2017			2016
Balance at beginning of period	$	(8,852	)	$	(16,059	)
Realized losses	(2,845		)	(6,916		)
Unrealized gains relating to instruments held at the reporting date*	16,301			5,409
Settlements during period	3,041			6,916
Balance at end of period	$	7,645		$	(10,650	)

*Includes $3.1 million and $11.0 million in gains for the three months and six months ended June 30, 2017, respectively. Includes $3.7 million and $6.1 million in losses for the three months and six months ended June 30, 2016, respectively.

Quantitative Information About Level 3 Fair Value Measurements of Derivative Commodity Instruments

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, 2017			Valuation Technique*	Unobservable Input*	Range
Oil Basis - WTI/WTI
2017	$	3,087		Discounted Cash Flow	Forward Basis	($1.34 - $1.26) Bbl
2018	$	(387	)	Discounted Cash Flow	Forward Basis	($1.07 - $1.04) Bbl
Natural Gas Liquids
2017	$	393		Discounted Cash Flow	Forward Basis	$0.57 Gal
2018	$	4,552		Discounted Cash Flow	Forward Basis	$0.55 Gal

*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.