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Financial Instruments and Risk Management (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
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, 2011
$
421

Provision
49

Allowance for credit losses as of December 31, 2012
470

Provision
(47
)
Allowance for credit losses as of December 31, 2013
$
423
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, 2013
 
Oil and Gas Operations
 
Natural Gas Distribution

Total
Derivative assets or (liabilities) not designated as hedging instruments
 
 
 
Accounts receivable
36,224

 
—

36,224

Long-term asset derivative instruments
7,992

 
—

7,992

Total derivative assets
44,216

 
—

44,216

Accounts receivable
(18,761
)
*
—

(18,761
)
Long-term asset derivative instruments
(2,553
)
*
—

(2,553
)
Accounts payable
(30,302
)
 
—

(30,302
)
Total derivative liabilities
(51,616
)
 
—

(51,616
)
Total derivatives not designated
(7,400
)
 
—

(7,400
)

(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

* 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
2013
2012
2011
Net gain (loss) recognized in OCI on derivative (effective portion), net of tax of ($6,660), $40,720 and $41,399
—
$
(10,866
)
$
66,438

$
67,547

Gain reclassified from accumulated OCI into
income (effective portion)
Operating revenues
$
34,293

$
52,694

$
26,326

Gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)

Operating revenues
$
835

$
(5,340
)
$
(2,767
)
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 statement:


Years ended December 31, (in thousands)
Location on Income Statement
2013
2012
2011
Gain (loss) recognized in income on derivative
Operating revenues
$
(73,980
)
$
61,841

$
(37,587
)
Schedule of hedging transactions
As of December 31, 2013, Energen Resources entered into the following transactions for 2014 and subsequent years:

Production Period
Total Hedged Volumes
Average Contract
Price

Description
Natural Gas
2014
10.6
 Bcf
$4.55 Mcf
NYMEX Swaps
 
31.4
 Bcf
$4.60 Mcf
Basin Specific Swaps - San Juan
 
9.7
 Bcf
$3.81 Mcf
Basin Specific Swaps - Permian
2015
6.0
 Bcf
$4.07 Mcf
Basin Specific Swaps - San Juan
Oil
2014
9,796
 MBbl
$92.64 Bbl
NYMEX Swaps
2015
5,760
 MBbl
$88.85 Bbl
NYMEX Swaps
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, 2013
(in thousands)
Level 2*
Level 3*
Total
Current assets
$
(1,658
)
$
19,121

$
17,463

Noncurrent assets
4,383

1,056

5,439

Current liabilities
(28,414
)
(1,888
)
(30,302
)
Net derivative asset (liability)
$
(25,689
)
$
18,289

$
(7,400
)

 
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

* 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)
2013
2012
2011
Balance at beginning of period
$
89,019

$
65,801

$
42,755

Realized gains
55,210

63,720

52,716

Unrealized gains (losses) relating to instruments held at the reporting date*
(71,367
)
22,160

23,980

Settlements during period
(54,573
)
(62,662
)
(53,650
)
Balance at end of period
$
18,289

$
89,019

$
65,801


*Includes $7.6 million in mark-to-market losses, $19.9 million in mark-to-market gains and $5.2 million in mark-to-market losses for the years ended December 31, 2013, 2012 and 2011, respectively.
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, 2013
Valuation Technique*
Unobservable Input*
Range
Natural Gas Basis - San Juan
 
 
 
 
2014
$
18,159

Discounted Cash Flow
Forward Basis
($0.17 - $0.20) Mcf
2015
$
1,056

Discounted Cash Flow
Forward Basis
($0.26) Mcf
Natural Gas Basis - Permian
 
 
 
 
2014
$
(1,948
)
Discounted Cash Flow
Forward Basis
($0.18 - $0.20) Mcf
Natural Gas Liquids
 
 
 
 
2014
$
1,022

Discounted Cash Flow
Forward Price
 $0.80 - $0.81 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.
Offsetting Assets and Liabilities
The tables below set forth information about the offsetting of derivative assets and liabilities as follows:

 
December 31, 2013
 
 
 
 
Gross Amounts Not Offset in the Balance Sheets
 
(in thousands)
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheets
Net Amount Presented in the Balance Sheets
Financial Instruments
Cash Collateral Received
Net Amount
Derivative assets
$
44,215

$
(21,313
)
$
22,902

$
—

$
—

$
22,902

Derivative liabilities
$
51,615

$
(21,313
)
$
30,302

$
—

$
—

$
30,302


 
December 31, 2012
 
 
 
 
Gross Amounts Not Offset in the Balance Sheets
 
(in thousands)
Gross Amounts Recognized
Gross Amounts Offset in the Balance Sheets
Net Amount Presented in the Balance Sheets
Financial Instruments
Cash Collateral Received
Net Amount
Derivative assets
$
149,504

$
(44,135
)
$
105,369

$
—

$
—

$
105,369

Derivative liabilities
$
56,328

$
(44,135
)
$
12,193

$
—

$
—

$
12,193