DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The table below sets forth Forest’s outstanding commodity swaps as of June 30, 2014.



Commodity Swaps
	Natural Gas (NYMEX HH)			Oil (NYMEX WTI)
Remaining Swap Term	Bbtu Per Day	Weighted Average Hedged Price per MMBtu		Barrels Per Day	Weighted Average Hedged Price per Bbl
July 2014 - December 2014	70	$	4.38	3,500	$	95.34
Calendar 2015	50	4.21		1,000	89.25

Schedule of outstanding commodity collars

The table below sets forth Forest’s outstanding commodity collars as of June 30, 2014.



Commodity Collars
	Natural Gas (NYMEX HH)
Collar Term	Bbtu Per Day	Hedged Floor and Ceiling Price per MMBtu
January 2015 - March 2015	20	$ 4.50/5.31
Calendar 2015	10	4.10/4.30

Schedule of outstanding commodity options

The table below sets forth the outstanding options as of June 30, 2014.



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
Natural 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	99.00
Calendar 2016	December 2015	—	—		1,000	98.00
Oil Put Options:
Monthly Calendar 2014	Monthly Calendar 2014	—	—		2,000	70.00

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 Condensed 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 7 for more information on the fair values of Forest’s derivative instruments.



	June 30, 2014		December 31, 2013
	(In Thousands)
Current assets:
Derivative instruments:
Commodity	$	395	$	5,192
Long-term assets:
Derivative instruments:
Commodity	$	363	$	400
Current liabilities:
Derivative instruments:
Commodity	$	13,503	$	4,542
Long-term liabilities:
Derivative instruments:
Commodity	$	1,940	$	—

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 Condensed Consolidated Statements of Operations as realized and unrealized losses (gains) 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 the fair value of derivative instruments. These derivative instruments are not designated as hedging instruments for accounting purposes.



	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2014		2013			2014		2013
	(In Thousands)
Commodity derivatives:
Realized losses (gains)	$	4,296	$	1,106		$	8,756	$	(8,543	)
Unrealized losses (gains)	7,345		(32,823		)	15,736		2,338
Interest rate derivatives:
Realized gains	—		(9,803		)	—		(12,885		)
Unrealized losses	—		9,910			—		13,060
Realized and unrealized losses (gains) on derivative instruments, net	$	11,641	$	(31,610	)	$	24,492	$	(6,030	)

Offsetting Derivative Assets

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



	Derivative Assets
	June 30, 2014			December 31, 2013
	(In Thousands)
Gross amounts of recognized assets	$	758		$	5,592
Gross amounts offset in the balance sheet	—			—
Net amounts of assets presented in the balance sheet	758			5,592
Gross amounts not offset in the balance sheet:
Derivative instruments	(641		)	(1,049		)
Cash collateral received	—			—
Net amount	$	117		$	4,543

Offsetting Derivative Liabilities



	Derivative Liabilities
	June 30, 2014			December 31, 2013
	(In Thousands)
Gross amounts of recognized liabilities	$	15,443		$	4,542
Gross amounts offset in the balance sheet	—			—
Net amounts of liabilities presented in the balance sheet	15,443			4,542
Gross amounts not offset in the balance sheet:
Derivative instruments	(641		)	(1,049		)
Cash collateral pledged	—			—
Net amount	$	14,802		$	3,493