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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
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:

 
March 31, 2018
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
—

$
4,984

$
4,984

Noncurrent derivative instruments
(2,283
)
5,544

3,261

Total assets
(2,283
)
10,528

8,245

Liabilities:
 
 
 
Derivative instruments
68,782

(11,304
)
57,478

Noncurrent derivative instruments
14,233

(2,670
)
11,563

Total liabilities
83,015

(13,974
)
69,041

Net derivative asset (liability)
$
(85,298
)
$
24,502

$
(60,796
)

 
December 31, 2017
(in thousands)
Level 2
Level 3
Total
Liabilities:
 
 
 
Derivative instruments
43,241

28,138

71,379

Noncurrent derivative instruments
7,736

1,150

8,886

Total liabilities
50,977

29,288

80,265

Net derivative liability
$
(50,977
)
$
(29,288
)
$
(80,265
)
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
 
March 31,
(in thousands)
2018
2017
Balance at beginning of period
$
(29,288
)
$
(8,852
)
Realized losses
(8,881
)
(3,253
)
Unrealized gains relating to instruments held at the reporting date*
54,832

14,416

Settlements during period
7,839

3,263

Balance at end of period
$
24,502

$
5,574


*Includes $42.9 million and $10.9 million in gains related to open contracts held at the reporting date for the three months ended March 31, 2018 and 2017, 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 March 31, 2018
Valuation Technique*
Unobservable Input*
Range
Oil Basis - WTI/WTI
 
 
 
 
2018
$
22,319

Discounted Cash Flow
Forward Basis
($4.41) - ($3.94) Bbl
2019
$
13,338

Discounted Cash Flow
Forward Basis
($3.05) - ($2.96) Bbl
Natural Gas Liquids
 
 
 
 
2018
$
(10,489
)
Discounted Cash Flow
Forward Basis
$0.70 Gal
2019
$
(666
)
Discounted Cash Flow
Forward Basis
$0.64 - $0.65 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.