Derivative Commodity Instruments Derivative Commodity Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Liabilities at Fair Value

The following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets:

(in thousands)	June 30, 2014
										Gross Amounts Not Offset in the Balance Sheets
	Gross Amounts Recognized at Fair Value			Gross Amounts Offset in the Balance Sheets			Net Amount Presented in the Balance Sheets			Financial Instruments		Cash Collateral Received		Net Fair Value Presented in the Balance Sheets
Derivatives not designated as hedging instruments
Assets
Derivative instruments	$	14,540		$	(14,016	)	$	524		$	—	$	—	$	524
Noncurrent derivative instruments	2,076			(1,453		)	623			—		—		623
Total derivative assets	16,616			(15,469		)	1,147			—		—		1,147
Liabilities
Derivative instruments	110,229			(14,016		)	96,213			—		—		96,213
Noncurrent derivative instruments	23,158			(1,453		)	21,705			—		—		21,705
Total derivative liabilities	133,387			(15,469		)	117,918			—		—		117,918
Total derivatives	$	(116,771	)	$	—		$	(116,771	)	$	—	$	—	$	(116,771	)

he following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets:

(in thousands)	June 30, 2014
										Gross Amounts Not Offset in the Balance Sheets
	Gross Amounts Recognized at Fair Value			Gross Amounts Offset in the Balance Sheets			Net Amount Presented in the Balance Sheets			Financial Instruments		Cash Collateral Received		Net Fair Value Presented in the Balance Sheets
Derivatives not designated as hedging instruments
Assets
Derivative instruments	$	14,540		$	(14,016	)	$	524		$	—	$	—	$	524
Noncurrent derivative instruments	2,076			(1,453		)	623			—		—		623
Total derivative assets	16,616			(15,469		)	1,147			—		—		1,147
Liabilities
Derivative instruments	110,229			(14,016		)	96,213			—		—		96,213
Noncurrent derivative instruments	23,158			(1,453		)	21,705			—		—		21,705
Total derivative liabilities	133,387			(15,469		)	117,918			—		—		117,918
Total derivatives	$	(116,771	)	$	—		$	(116,771	)	$	—	$	—	$	(116,771	)

(in thousands)	December 31, 2013
										Gross Amounts Not Offset in the Balance Sheets
	Gross Amounts Recognized at Fair Value			Gross Amounts Offset in the Balance Sheets			Net Amount Presented in the Balance Sheets			Financial Instruments		Cash Collateral Received		Net Fair Value Presented in the Balance Sheets
Derivatives not designated as hedging instruments
Assets
Derivative instruments	$	36,223		$	(18,760	)	$	17,463		$	—	$	—	$	17,463
Noncurrent derivative instruments	7,992			(2,553		)	5,439			—		—		5,439
Total derivative assets	44,215			(21,313		)	22,902			—		—		22,902
Liabilities
Derivative instruments	49,062			(18,760		)	30,302			—		—		30,302
Noncurrent derivative instruments	2,553			(2,553		)	—			—		—		—
Total derivative liabilities	51,615			(21,313		)	30,302			—		—		30,302
Total derivatives	$	(7,400	)	$	—		$	(7,400	)	$	—	$	—	$	(7,400	)

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following table details the effect of derivative commodity instruments in cash flow hedging relationships on the financial statements:

(in thousands)	Location on Statements of Income	Three months ended June 30, 2014		Three months ended June 30, 2013
Net gain recognized in other comprehensive income on derivatives (effective portion), net of tax of $6 and $9,713	—	$	9	$	15,847
Gain reclassified from accumulated other comprehensive income into income (effective portion)	Gain (loss) on derivative instruments, net	$	5,735	$	3,112
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Gain (loss) on derivative instruments, net	$	—	$	1,392

(in thousands)	Location on Statements of Income	Six months ended June 30, 2014		Six months ended June 30, 2013
Net gain (loss) recognized in other comprehensive income on derivatives (effective portion), net of tax of $7 and ($6,712)	—	$	11	$	(10,951	)
Gain reclassified from accumulated other comprehensive income into income (effective portion)	Gain (loss) on derivative instruments, net	$	9,789	$	20,935
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Gain (loss) on derivative instruments, net	$	—	$	858

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

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

(in thousands)	Location on Statements of Income	Three months ended June 30, 2014			Three months ended June 30, 2013
Gain (loss) recognized in income on derivatives	Gain (loss) on derivative instruments, net	$	(90,581	)	$	53,078

(in thousands)	Location on Statements of Income	Six months ended June 30, 2014			Six months ended June 30, 2013
Gain (loss) recognized in income on derivatives	Gain (loss) on derivative instruments, net	$	(148,026	)	$	21,577

Schedule of Hedging Transactions

Energen had entered into the following transactions for the remainder of 2014 and subsequent years:

Production Period	Total Hedged Volumes		Average Contract Price	Description
Oil
2014	4,958	MBbl	$92.65 Bbl	NYMEX Swaps
2015	8,280	MBbl	$89.30 Bbl	NYMEX Swaps
Oil Basis Differential
2014	600	MBbl	$(3.30) Bbl	WTS/WTI Basis Swaps*
2014	1,200	MBbl	$(3.08) Bbl	WTI/WTI Basis Swaps**
Natural Gas Liquids
2014	35.8	MMgal	$0.93 Gal	Liquids Swaps
Natural Gas
2014	5.2	Bcf	$4.56 Mcf	NYMEX Swaps
2014	15.4	Bcf	$4.61 Mcf	Basin Specific Swaps - San Juan
2014	5.0	Bcf	$3.81 Mcf	Basin Specific Swaps - Permian
2015	23.0	Bcf	$4.13 Mcf	Basin Specific Swaps - San Juan
2015	6.0	Bcf	$4.20 Mcf	Basin Specific Swaps - Permian
Natural Gas Basis Differential
2014	3.1	Bcf	$(0.09) Mcf	San Juan Basis Swaps
2014	1.2	Bcf	$(0.17) Mcf	Permian Basis Swaps
*WTS - West Texas Sour/Midland, WTI - West Texas Intermediate/Cushing
**WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing