Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2017 |
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| Fair Value Disclosures [Abstract] |
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| 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 |
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| | | | | | | | | | | | 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 | ) |
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| 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.
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| 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. |