Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2012

Derivative [Line Items]

Schedule of changes in allowance for credit losses on Financing Receivables

The following table sets forth a summary of changes in the allowance for credit losses as follows:

(in thousands)
Allowance for credit losses as of December 31, 2010	$	447
Provision	(26		)
Allowance for credit losses as of December 31, 2011	421
Provision	49
Allowance for credit losses as of December 31, 2012	$	470

Schedule of fair values of commodity contracts by business segment on balance sheet

The following table details the fair values of commodity contracts by business segment on the balance sheets:

(in thousands)	December 31, 2012
	Oil and Gas Operations				Natural Gas Distribution			Total
Derivative assets or (liabilities) designated as hedging instruments
Accounts receivable	$	87,514			$	—		$	87,514
Long-term asset derivative instruments	37,954				—			37,954
Total derivative assets	125,468				—			125,468
Accounts receivable	(37,326		)	*	—			(37,326		)
Long-term asset derivative instruments	(6,810		)	*	—			(6,810		)
Long-term liability derivative instruments	(8,726		)		—			(8,726		)
Total derivative liabilities	(52,862		)		—			(52,862		)
Total derivatives designated	72,606				—			72,606
Derivative assets or (liabilities) not designated as hedging instruments
Accounts receivable	14,604				—			14,604
Long-term asset derivative instruments	9,433				—			9,433
Total derivative assets	24,037				—			24,037
Accounts payable	—				(2,593		)	(2,593		)
Long-term liability derivative instruments	(874		)		—			(874		)
Total derivative liabilities	(874		)		(2,593		)	(3,467		)
Total derivatives not designated	23,163				(2,593		)	20,570
Total derivatives	$	95,769			$	(2,593	)	$	93,176

(in thousands)	December 31, 2011
	Oil and Gas Operations				Natural Gas Distribution			Total
Derivative assets or (liabilities) designated as hedging instruments
Accounts receivable	$	73,636			$	—		$	73,636
Long-term asset derivative instruments	75,982				—			75,982
Total derivative assets	149,618				—			149,618
Accounts receivable	(48,174		)	*	—			(48,174		)
Long-term asset derivative instruments	(36,341		)	*	—			(36,341		)
Accounts payable	(37,070		)		—			(37,070		)
Long-term liability derivative instruments	(20,386		)		—			(20,386		)
Total derivative liabilities	(141,971		)		—			(141,971		)
Total derivatives designated	7,647				—			7,647
Derivative assets or (liabilities) not designated as hedging instruments
Accounts receivable	(3,670		)	*	—			(3,670		)
Long-term asset derivative instruments	(8,585		)	*	—			(8,585		)
Total derivative assets	(12,255		)		—			(12,255		)
Accounts payable	(13,416		)		(56,804		)	(70,220		)
Long-term liability derivative instruments	(10,922		)		(3,070		)	(13,992		)
Total derivative liabilities	(24,338		)		(59,874		)	(84,212		)
Total derivatives not designated	(36,593		)		(59,874		)	(96,467		)
Total derivatives	$	(28,946	)		$	(59,874	)	$	(88,820	)

* 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 designated as hedging instruments on the financial statements:

Years ended December 31, (in thousands)	Location on Income Statement	2012			2011			2010
Net gain recognized in OCI on derivative (effective portion), net of tax of $40.7 million, $41.4 million and $19.5 million	—	$	66,438		$	67,547		$	31,801
Gain reclassified from accumulated OCI into income (effective portion)	Operating revenues	$	52,694		$	26,326		$	200,324
Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)	Operating revenues	$	(5,340	)	$	(2,767	)	$	1,082

Schedule of derivatives not designated as hedging instruments on income statements

The following table details the effect of open and closed derivative commodity instruments not designated as hedging instruments on the income statements:

Years ended December 31, (in thousands)	Location on Income Statement	2012		2011			2010
Gain (loss) recognized in income on derivative	Operating revenues	$	61,841	$	(37,587	)	$	(3	)

Schedule of hedging transactions

As of December 31, 2012, Energen Resources entered into the following transactions for 2013 and subsequent years:

Production Period	Total Hedged Volumes		Average Contract Price	Description
Natural Gas
2013	12.7	Bcf	$4.82 Mcf	NYMEX Swaps
	32.8	Bcf	$4.56 Mcf	Basin Specific Swaps - San Juan
	4.6	Bcf	$3.45 Mcf	Basin Specific Swaps - Permian
2014	10.6	Bcf	$4.55 Mcf	NYMEX Swaps
	25.7	Bcf	$4.72 Mcf	Basin Specific Swaps - San Juan
	9.7	Bcf	$3.81 Mcf	Basin Specific Swaps - Permian
Oil
2013	8,858	MBbl	$90.95 Bbl	NYMEX Swaps
2014	9,796	MBbl	$92.64 Bbl	NYMEX Swaps
Oil Basis Differential
2013	3,592	MBbl	$(3.03) Bbl	WTS/WTI Basis Swaps*
	2,760	MBbl	$(1.01) Bbl	WTI/WTI Basis Swaps**
Natural Gas Liquids
2013	44.5	MMGal	$1.02 Gal	Liquids Swaps
*WTS - West Texas Sour/Midland, WTI - West Texas Intermediate/Cushing
**WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing

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:

	December 31, 2012
(in thousands)	Level 2*			Level 3*			Total
Current assets	$	(3,629	)	$	68,421		$	64,792
Noncurrent assets	18,899			21,678			40,577
Current liabilities	(2,593		)	—			(2,593		)
Noncurrent liabilities	(8,520		)	(1,080		)	(9,600		)
Net derivative asset	$	4,157		$	89,019		$	93,176

	December 31, 2011
(in thousands)	Level 2*			Level 3*			Total
Current assets	$	(14,843	)	$	36,635		$	21,792
Noncurrent assets	(8,382		)	39,438			31,056
Current liabilities	(98,468		)	(8,822		)	(107,290		)
Noncurrent liabilities	(32,928		)	(1,450		)	(34,378		)
Net derivative asset (liability)	$	(154,621	)	$	65,801		$	(88,820	)

* 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 table below sets forth a summary of changes in the fair value of the Company’s Level 3 derivative commodity instruments as follows:

Years ended December 31, (in thousands)	2012			2011			2010
Balance at beginning of period	$	65,801		$	42,755		$	64,517
Realized gains (losses)	63,720			52,716			111,107
Unrealized gains relating to instruments held at the reporting date*	22,160			23,980			(21,521		)
Purchases and settlements during period	(62,662		)	(53,650		)	(111,348		)
Balance at end of period	$	89,019		$	65,801		$	42,755

Schedule of level three fair value measurements of derivative commodity instruments

The tables below set forth quantitative information about the Company’s Level 3 fair value measurements of derivative commodity instruments as follows:

(in thousands)	Fair Value as of December 31, 2012			Valuation Technique*	Unobservable Input*	Range
Natural Gas Basis - San Juan
2013	$	38,254		Discounted Cash Flow	Forward Basis	($0.15 - $0.16) Mcf
2014	$	21,100		Discounted Cash Flow	Forward Basis	($0.13 - $0.17) Mcf
Natural Gas Basis - Permian
2013	$	160		Discounted Cash Flow	Forward Basis	($0.13) Mcf
2014	$	(871	)	Discounted Cash Flow	Forward Basis	($0.12 - $0.13) Mcf
Oil Basis - WTS/WTI
2013	$	10,338		Discounted Cash Flow	Forward Basis	($5.19) Bbl
Oil Basis - WTI/WTI
2013	$	8,217		Discounted Cash Flow	Forward Basis	($2.92 - $3.62) Bbl
Natural Gas Liquids
2013	$	11,821		Discounted Cash Flow	Forward Price	$0.73 - $0.82 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.

Alabama Gas Corporation

Derivative [Line Items]

Schedule of hedging transactions

Alagasco entered into the following natural gas transactions for 2013:

Production Period	Total Hedged Volumes	Description
2013	1.5 Bcf	NYMEX Swaps