|
Derivative Instruments (Tables)
|
6 Months Ended |
|
Jun. 30, 2013
|
| Derivative Instruments |
|
| Derivatives designated and not designated as hedging instruments |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
(Thousands) |
|
|
Commodity derivatives designated as cash flow hedges |
|
|
|
|
|
|
|
|
|
|
Amount of gain (loss) recognized in OCI (effective portion), net of tax |
|
$ |
73,429 |
|
$ |
(8,930) |
|
$ |
20,828 |
|
$ |
98,558 |
|
|
Amount of gain reclassified from accumulated OCI into operating revenues (effective portion), net of tax |
|
$ |
10,490 |
|
$ |
55,286 |
|
$ |
36,323 |
|
$ |
103,272 |
|
|
Amount of loss recognized in operating revenues (ineffective portion) (a) |
|
$ |
(7,473) |
|
$ |
(212) |
|
$ |
(7,954) |
|
$ |
(243) |
|
|
Interest rate derivatives designated as cash flow hedges |
|
|
|
|
|
|
|
|
|
|
Amount of loss recognized in OCI (effective portion), net of tax |
|
$ |
– |
|
$ |
(6,670 |
) |
$ |
– |
|
$ |
(4,297 |
) |
|
Amount of loss reclassified from accumulated OCI, net of tax, into interest expense (effective portion) |
|
$ |
(36 |
) |
$ |
(64 |
) |
$ |
(72 |
) |
$ |
(129 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Commodity derivatives designated as fair value hedges (b) |
|
|
|
|
|
|
|
|
|
|
Amount of gain (loss) recognized in operating revenues for fair value commodity contracts |
|
$ |
2,700 |
|
$ |
(2,378 |
) |
$ |
(839 |
) |
$ |
4,694 |
|
|
Fair value (loss) gain recognized in operating revenues for inventory designated as hedged item |
|
$ |
(4,075 |
) |
$ |
8,388 |
|
$ |
462 |
|
$ |
(1,543 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments |
|
|
|
|
|
|
|
|
|
|
Amount of gain (loss) recognized in operating revenues |
|
$ |
1,512 |
|
$ |
(790 |
) |
$ |
1,250 |
|
$ |
1,673 |
|
(a) No amounts have been excluded from effectiveness testing of cash flow hedges.
(b) For the three months ended June 30, 2013, the net impact on operating revenues associated with commodity derivatives designated as fair value hedges was a $0.8 million gain which resulted from the Company’s election to exclude the spot/forward differential from the assessment of effectiveness of the fair value hedges and a $2.2 million loss due to changes in basis. For the three months ended June 30, 2012, the net impact on operating revenues associated with commodity derivatives designated as fair value hedges was a $6.0 million gain which resulted from the Company’s election to the exclude the spot/forward differential from the assessment of effectiveness of the fair value hedges. For the six months ended June 30, 2013, the net impact on operating revenues associated with commodity derivatives designated as fair value hedges was a $2.1 million gain which resulted from the Company’s election to exclude the spot/forward differential from the assessment of effectiveness of the fair value hedges and a $2.5 million loss due to changes in basis. For the six months ended June 30, 2012, the net impact on operating revenues associated with commodity derivatives designated as fair value hedges was a $2.8 million gain which resulted from the Company’s election to exclude the spot/forward differential from the assessment of effectiveness of the fair value hedges and a $0.4 million loss due to changes in basis. |
| Asset and liability derivatives |
|
|
|
As of
June 30, |
|
As of
December 31, |
|
|
|
|
2013 |
|
2012 |
|
|
|
|
(Thousands) |
|
|
Asset derivatives |
|
|
|
|
|
|
Commodity derivatives designated as hedging instruments |
|
$ |
206,776 |
|
$ |
259,459 |
|
|
Commodity derivatives not designated as hedging instruments |
|
23,363 |
|
44,778 |
|
|
Total asset derivatives |
|
$ |
230,139 |
|
$ |
304,237 |
|
|
|
|
|
|
|
|
|
Liability derivatives |
|
|
|
|
|
|
Commodity derivatives designated as hedging instruments |
|
$ |
12,301 |
|
$ |
27,946 |
|
|
Commodity derivatives not designated as hedging instruments |
|
24,170 |
|
47,616 |
|
|
Total liability derivatives |
|
$ |
36,471 |
|
$ |
75,562 |
| |
| Schedule of impact of netting agreements and margin deposits on gross derivative assets and liabilities |
|
As of June 30, 2013 |
|
Derivative
instruments,
recorded in the
Condensed
Consolidated
Balance
Sheet, gross |
|
Derivative
instruments
subject to
master
netting
agreements |
|
Margin
deposits
remitted to
counterparties |
|
Derivative
instruments,
net |
|
|
|
|
(Thousands) |
|
|
Asset derivatives: |
|
|
|
|
|
|
|
|
|
|
Derivative instruments, at fair value |
|
$ |
230,139 |
|
$ |
(35,437) |
|
$ |
– |
|
$ |
194,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability derivatives: |
|
|
|
|
|
|
|
|
|
|
Derivative instruments, at fair value |
|
$ |
36,471 |
|
$ |
(35,437) |
|
$ |
(656) |
|
$ |
378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2012 |
|
Derivative
instruments,
recorded in the
Condensed
Consolidated
Balance
Sheet, gross |
|
Derivative
instruments
subject to
master
netting
agreements |
|
Margin
deposits
remitted to
counterparties |
|
Derivative
instruments,
net |
|
|
|
|
(Thousands) |
|
|
Asset derivatives: |
|
|
|
|
|
|
|
|
|
|
Derivative instruments, at fair value |
|
$ |
304,237 |
|
$ |
(73,753) |
|
$ |
– |
|
$ |
230,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liability derivatives: |
|
|
|
|
|
|
|
|
|
|
Derivative instruments, at fair value |
|
$ |
75,562 |
|
$ |
(73,753) |
|
$ |
(736) |
|
$ |
1,073 |
| |