DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The table below sets forth Forest’s outstanding commodity swaps as of December 31, 2013.



Commodity Swaps
	Natural Gas (NYMEX HH)			Oil (NYMEX WTI)
Swap Term	Bbtu Per Day	Weighted Average Hedged Price per MMBtu		Barrels Per Day	Weighted Average Hedged Price per Bbl
Calendar 2014	70	$	4.38	3,500	$	95.34
Calendar 2015	20	4.20		—	—

Schedule of outstanding commodity options

The table below sets forth the outstanding commodity options as of December 31, 2013.



Commodity Options
		Natural Gas (NYMEX HH)			Oil (NYMEX WTI)
Underlying Term	Option Expiration	Underlying Bbtu Per Day	Underlying Hedged Price per MMBtu		Underlying Barrels Per Day	Underlying Hedged Price per Bbl
Gas Swaptions:
Calendar 2016	December 2014	10	$	4.18	—	$	—
Oil Swaptions:
Calendar 2015	December 2014	—	—		3,000	100.00
Calendar 2015	December 2014	—	—		1,000	106.00
Calendar 2015	December 2014	—	—		1,000	99.75
Calendar 2015	December 2014	—	—		1,000	99.00
Oil Put Options:
Monthly Calendar 2014	Monthly Calendar 2014	—	—		2,000	70.00

Schedule of commodity collars granted subsequent to the balance sheet date

Subsequent to December 31, 2013, through February 19, 2014, Forest entered into the following derivative instruments:

____________________________________________


(1)	Represents the hedged floor and ceiling price per MMBtu.

Summary of location and fair value amounts of derivative instruments reported in the Condensed Consolidated Balance Sheets

The table below summarizes the location and fair value amounts of Forest’s derivative instruments reported in the Consolidated Balance Sheets as of the dates indicated. These derivative instruments are not designated as hedging instruments for accounting purposes. For financial reporting purposes, Forest does not offset asset and liability fair value amounts recognized for derivative instruments with the same counterparty under its master netting arrangements. See “Credit Risk” below for more information regarding Forest’s master netting arrangements and gross and net presentation of derivative instruments. See also Note 8 for more information on the fair values of Forest’s derivative instruments.



	December 31,
	2013		2012
	(In Thousands)
Current assets:
Derivative instruments:
Commodity	$	5,192	$	28,690
Interest rate	—		11,500
Total current assets	$	5,192	$	40,190
Long-term assets:
Derivative instruments:
Commodity	$	400	$	6,775
Interest rate	—		1,560
Total long-term assets	$	400	$	8,335
Current liabilities:
Derivative instruments:
Commodity	$	4,542	$	9,347
Long-term liabilities:
Derivative instruments:
Commodity	$	—	$	7,204

Summary of the amount of derivative instrument gains and losses reported in the condensed consolidated statements of operations

The table below summarizes the amount of derivative instrument gains and losses reported in the Consolidated Statements of Operations as realized and unrealized (gains) losses on derivative instruments, net, for the periods indicated. Realized gains and losses represent cash settlements on derivative instruments and unrealized gains and losses represent changes in fair value of derivative instruments. These derivative instruments are not designated as hedging instruments for accounting purposes.



	Year Ended December 31,
	2013			2012			2011
	(In Thousands)
Commodity derivatives:
Realized gains	$	(14,252	)	$	(100,420	)	$	(37,535	)
Unrealized losses (gains)	17,863			31,630			(37,542		)
Interest rate derivatives:
Realized gains	(12,885		)	(11,352		)	(11,442		)
Unrealized losses (gains)	13,060			7,496			(1,545		)
Realized and unrealized losses (gains) on derivative instruments, net	$	3,786		$	(72,646	)	$	(88,064	)

Offsetting Assets

The following tables disclose information regarding the potential effect of netting arrangements on Forest’s Consolidated Balance Sheets as of the dates indicated.



	Derivative Assets
	December 31, 2013			December 31, 2012
	(In Thousands)
Gross amounts of recognized assets	$	5,592		$	48,525
Gross amounts offset in the balance sheet	—			—
Net amounts of assets presented in the balance sheet	5,592			48,525
Gross amounts not offset in the balance sheet:
Derivative instruments	(1,049		)	(13,537		)
Cash collateral received	—			—
Net amount	$	4,543		$	34,988

Offsetting Liabilities



	Derivative Liabilities
	December 31, 2013			December 31, 2012
	(In Thousands)
Gross amounts of recognized liabilities	$	4,542		$	16,551
Gross amounts offset in the balance sheet	—			—
Net amounts of liabilities presented in the balance sheet	4,542			16,551
Gross amounts not offset in the balance sheet:
Derivative instruments	(1,049		)	(13,537		)
Cash collateral pledged	—			—
Net amount	$	3,493		$	3,014

Commodity Collars

Natural Gas (NYMEX HH)

Collar Term

Bbtu
Per Day

Hedged Price
per MMBtu

January 2015 - March 2015

$ 4.50/5.31