Derivative Activities (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Volumes Hedged and Average Hedge Prices

The following table sets forth the derivative volumes by year as of December 31, 2014:

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
Natural Gas
2015	Collars	145,000 Mmbtu/day	$4.07–$4.56
2015	Swaps	412,390 Mmbtu/day	$4.15
2016	Swaps	120,000 Mmbtu/day	$4.15
Crude Oil
2015	Swaps	9,626 bbls/day	$90.57
2016	Swaps	1,000 bbls/day	$91.43
NGLs (C3 - Propane)
2015	Swaps	2,245 bbls/day	$0.95/gallon

NGLs (C5 - Natural Gasoline)
2015-First Quarter	Swaps	500 bbls/day	$2.14/gallon

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of December 31, 2014 and 2013 is summarized below. As of December 31, 2014, we are conducting derivative activities with fifteen financial institutions, of which all but one are secured lenders in our bank credit facility. We believe all of these institutions are acceptable credit risks. At times, such risks may be concentrated with certain counterparties. The credit worthiness of our counterparties is subject to periodic review. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements (in thousands).

		December 31, 2014
		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets Presented in the Balance Sheet
Derivative assets:
Natural gas	–swaps	$	198,740	$	¾		$	198,740
	–collars		57,460		¾			57,460
	–basis swaps		2,442		(755	)		1,687
Crude oil	–swaps		128,578		¾			128,578
NGLs	–C3 swaps		14,727		¾			14,727
	–C5 swaps		2,171		¾			2,171
		$	404,118	$	(755	)	$	403,363

		December 31, 2014
		Gross Amounts of Recognized (Liabilities)			Gross Amounts Offset in the Balance Sheet		Net Amounts of (Liabilities) Presented in the Balance Sheet
Derivative (liabilities):
Natural gas	–basis swaps	$	(755	)	$	755	$	−
		$	(755	)	$	755	$	−

		December 31, 2013
		Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets Presented in the Balance Sheet
Derivative assets:
Natural gas	–swaps	$	4,240	$	(1,218	)	$	3,022
	–collars		16,057		(7,671	)		8,386
	–basis swaps		7,686		(7,686	)		¾
Crude oil	–swaps		3,567		(1,321	)		2,246
NGLs	–C3 swaps		826		(826	)		¾
	–C4 swaps		863		(863	)		¾
	–C5 swaps		121		(121	)		¾
		$	33,360	$	(19,706	)	$	13,654

		December 31, 2013
		Gross Amounts of Recognized (Liabilities)			Gross Amounts Offset in the Balance Sheet		Net Amounts of (Liabilities) Presented in the Balance Sheet
Derivative (liabilities):
Natural gas	–swaps	$	(4,790	)	$	1,218	$	(3,572	)
	–collars		(13,345	)		7,671		(5,674	)
	–basis swaps		(3,756	)		7,686		3,930
Crude oil	–swaps		(4,711	)		1,321		(3,390	)
	–collars		(398	)		¾		(398	)
NGLs	–C3 swaps		(18,172	)		826		(17,346	)
	–C4 swaps		(757	)		863		106
	–C5 swaps		¾			121		121
		$	(45,929	)	$	19,706	$	(26,223	)

Effects of Cash Flow Hedges and Other Hedges on Accumulated Other Comprehensive Income

The effects of our cash flow hedges (or those derivatives that qualified for hedge accounting) on AOCI in the accompanying consolidated balance sheets is summarized below (in thousands):

	Year Ended December 31,
	Change in Hedge Derivative Fair Value					Realized Gain Reclassified from OCI Into Revenue (a)
	2014		2013			2014			2013
Swaps	$	¾	$	125		$	4,544		$	15,171
Collars		¾		(7,015	)		5,678			105,272
Income taxes		¾		2,687			(3,986	)		(46,973	)
	$	¾	$	(4,203	)	$	6,236		$	73,470

^(a) For gains upon contract settlement, the reduction in AOCI is offset by an increase in natural gas, NGLs and oil sales. For losses upon contract settlement, the increase in AOCI is offset by a decrease in natural gas, NGLs and oil sales.

Effects of Non-Hedge Derivatives on Consolidated Statements of Operations

The effects of our non-hedge derivatives (or those derivatives that do not qualify or are not designated for hedge accounting) and the ineffective portion of our hedge derivatives on our consolidated statements of income are summarized below (in thousands):

	Year Ended December 31,
	Gain (Loss) Recognized in Income (Non-hedge Derivatives)									Gain (Loss) Recognized in Income (Ineffective Portion)								Derivative Fair Value Income (Loss)
	2014			2013			2012			2014		2013			2012			2014			2013			2012
Swaps	$	367,484		$	(48,492	)	$	11,601		$	¾	$	(2,034	)	$	(657	)	$	367,484		$	(50,526	)	$	10,944
Re-purchased swaps		¾			1,323			9,313			¾		¾			¾			¾			1,323			9,313
Collars		42,836			(15,166	)		5,126			¾		(896	)		1,782			42,836			(16,062	)		6,908
Call options		¾			¾			13,178			¾		¾			—			¾			¾			13,178
Put options		¾			¾			(30	)		¾		¾			—			¾			¾			(30	)
Basis swaps		(26,800	)		3,440			1,124			¾		¾			—			(26,800	)		3,440			1,124
Total	$	383,520		$	(58,895	)	$	40,312		$	¾	$	(2,930	)	$	1,125		$	383,520		$	(61,825	)	$	41,437