XML 52 R20.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Derivative Commodity Instruments (Tables)
 6 Months Ended
Jun. 30, 2011
Derivative [Line Items]  
Schedule of Fair Values of Commodity Contracts by business Segment on Balance Sheet
The following tables detail the fair values of commodity contracts by business segment on the balance sheets:


(in thousands)
June 30, 2011
 
Oil and Gas Operations
 
Natural Gas Distribution


Total
Derivative assets or (liabilities) designated as hedging instruments
 
 
 
 
Accounts receivable
$
49,182


 
$
—


$
49,182


Long-term asset derivative instruments
10,427


*
—


10,427


Total derivative assets
59,609


 
—


59,609


Accounts receivable
(37,177
)
*
—


(37,177
)
Accounts payable
(54,926
)
 
—


(54,926
)
Long-term liability derivative instruments
(120,273
)
 
—


(120,273
)
Total derivative liabilities
(212,376
)
 
—


(212,376
)
Total derivatives designated
(152,767
)
 
—


(152,767
)
Derivative assets or (liabilities) not designated as hedging instruments
 
 
 
 
Accounts payable
(68
)
 
(32,159
)
(32,227
)
Long-term liability derivative instruments
—


 
(17,657
)
(17,657
)
Total derivative liabilities
(68
)
 
(49,816
)
(49,884
)
Total derivatives not designated
(68
)
 
(49,816
)
(49,884
)
Total derivatives
$
(152,835
)
 
$
(49,816
)
$
(202,651
)


(in thousands)
December 31, 2010
 
Oil and Gas Operations
 
Natural Gas Distribution


Total
Derivative assets or (liabilities) designated as hedging instruments
 
 
 
 
Accounts receivable
$
85,867


 
$
—


$
85,867


Long-term asset derivative instruments
3,156


*
—


3,156


Total derivative assets
89,023


 
—


89,023


Accounts receivable
(25,315
)
*
—


(25,315
)
Accounts payable
(50,508
)
 
—


(50,508
)
Long-term liability derivative instruments
(83,631
)
 
—


(83,631
)
Total derivative liabilities
(159,454
)
 
—


(159,454
)
Total derivatives designated
(70,431
)
 
—


(70,431
)
Derivative assets or (liabilities) not designated as hedging instruments
 
 
 
 
Accounts payable
(110
)
 
(27,906
)
(28,016
)
Long-term liability derivative instruments
—


 
(32,461
)
(32,461
)
Total derivative liabilities
(110
)
 
(60,367
)
(60,477
)
Total derivatives not designated
(110
)
 
(60,367
)
(60,477
)
Total derivatives
$
(70,541
)
 
$
(60,367
)
$
(130,908
)


* Amounts classified in accordance with accounting guidance which permits offsetting fair value amounts recognized for multiple derivative instruments executed with the same counterparty under a master netting arrangement.
Schedule of Cash Flow Hedging Relationships on Financial Statements
The following table details the effect of derivative commodity instruments in cash flow hedging relationships on the financial statements:


(in thousands)
Location on Income Statement
Three months

ended

June 30, 2011
Three months

ended

June 30, 2010
Gain recognized in OCI on derivative (effective portion), net of tax of $30.3 million and $26.3 million
—
$
49,449


$
42,917


Gain (loss) reclassified from accumulated OCI into income (effective portion)
Operating revenues
$
(5,770
)
$
56,666


Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Operating revenues
$
(740
)
$
175




(in thousands)
Location on Income Statement
Six months

ended

June 30, 2011
Six months

ended

June 30, 2010
Gain (loss) recognized in OCI on derivative (effective portion), net of tax of ($29.1) million and $60.3 million
—
$
(47,425
)
$
98,385


Gain reclassified from accumulated OCI into income (effective portion)
Operating revenues
$
1,821


$
93,390


Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
Operating revenues
$
(2,391
)
$
1,879
Schedule of Derivatives Not Designated as Hedging Instruments on Income Statements
The following table details the effect of derivative commodity instruments not designated as hedging instruments on the income statements:


(in thousands)
Location on Income Statement
Three months

ended

June 30, 2011
Three months

ended

June 30, 2010
Loss recognized in income on derivative
Operating revenues
$
(1
)
$
(1
)
 
 
 
 
(in thousands)
Location on Income Statement
Six months

ended

June 30, 2011
Six months

ended

June 30, 2010
Loss recognized in income on derivative
Operating revenues
$
(1
)
$
(4
)
Schedule of Hedging Transactions
Energen Resources entered into the following transactions for the remainder of 2011 and subsequent years:


Production Period
Total Hedged Volumes
Average Contract
Price


Description
Natural Gas
 
 
 
2011
7.1 Bcf
$6.47 Mcf
NYMEX Swaps
 
19.4 Bcf
$5.65 Mcf
Basin Specific Swaps
2012
11.0 Bcf
$5.07 Mcf
NYMEX Swaps
 
29.5 Bcf
$4.60 Mcf
Basin Specific Swaps
2013
8.8 Bcf
$5.30 Mcf
NYMEX Swaps
 
25.1 Bcf
$4.88 Mcf
Basin Specific Swaps
2014
3.0 Bcf
$5.72 Mcf
NYMEX Swaps
 
6.0 Bcf
$5.34 Mcf
Basin Specific Swaps
Oil
 
 
 
2011
2,242 MBbl
$80.47 Bbl
NYMEX Swaps
2012
3,881 MBbl
$83.53 Bbl
NYMEX Swaps
2013
3,296 MBbl
$85.97 Bbl
NYMEX Swaps
2014
2,818 MBbl
$87.92 Bbl
NYMEX Swaps
Oil Basis Differential
 
 
 
2011
1,103 MBbl
*
Basis Swaps
2012
753 MBbl
*
Basis Swaps
Natural Gas Liquids
 
 
 
2011
21.1 MMGal
 $0.90 Gal
Liquids Swaps
2012
39.9 MMGal
 $0.86 Gal
Liquids Swaps
2013
35.2 MMGal
 $1.02 Gal
Liquids Swaps
* Average contract prices are not meaningful due to the varying nature of each contract.
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following sets forth derivative assets and liabilities that were measured at fair value on a recurring basis:


 
June 30, 2011
(in thousands)
Level 2*
Level 3*
Total
Current assets
$
(7,773
)
$
19,778


$
12,005


Noncurrent assets
78


$
924


$
1,002


Current liabilities
(81,752
)
(5,401
)
(87,153
)
Noncurrent liabilities
(126,650
)
(1,855
)
(128,505
)
Net derivative asset (liability)
$
(216,097
)
$
13,446


$
(202,651
)


 
December 31, 2010
(in thousands)
Level 2*
Level 3*
Total
Current assets
$
10,316


$
50,236


$
60,552


Current liabilities
(76,527
)
(1,997
)
(78,524
)
Noncurrent liabilities
(107,452
)
(5,484
)
(112,936
)
Net derivative asset (liability)
$
(173,663
)
$
42,755


$
(130,908
)


* Amounts classified in accordance with accounting guidance which permits offsetting fair value amounts recognized for multiple derivative instruments executed with the same counterparty under a master netting arrangement.
Schedule of Changes in Fair Value of Derivative Instruments Classified as Level 3
The tables below set forth a summary of changes in the fair value of the Company’s Level 3 derivative commodity instruments as follows:


 
Three months ended
Three months ended
(in thousands)
June 30, 2011
June 30, 2010
Balance at beginning of period
$
16,927


$
114,440


Realized (gains) losses
1,204


(303
)
Unrealized gains (losses) relating to instruments held at the reporting date
7,720


9,215


Settlements during period
(12,405
)
(31,535
)
Balance at end of period
$
13,446


$
91,817




 
Six months ended
Six months ended
(in thousands)
June 30, 2011
June 30, 2010
Balance at beginning of period
$
42,755


$
64,517


Realized (gains) losses
1,204


(303
)
Unrealized gains (losses) relating to instruments held at the reporting date
(3,554
)
75,886


Settlements during period
(26,959
)
(48,283
)
Balance at end of period
$
13,446


$
91,817
Alabama Gas Corporation
  
Derivative [Line Items]  
Schedule of Hedging Transactions
Alagasco entered into the following natural gas transactions for the remainder of 2011 and subsequent years:


Production Period
Total Hedged Volumes
 
Description
2011
6.0 Bcf
 
NYMEX Swaps
2012
17.2 Bcf
 
NYMEX Swaps
2013
1.5 Bcf
 
NYMEX Swaps