Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

PRICE RISK MANAGEMENT ASSETS AND LIABILITIES:

Interest Rate Contracts

The Company had no outstanding interest rate swap agreements as of December 31, 2014.

The Company previously used interest rate swap agreements to hedge floating rate notes with an aggregate notional amount.  The Company settled $50 million of five-year swaps during the third quarter of 2013, $175 million of ten-year swaps during the fourth quarter of 2013, $25 million of five-year swaps during the fourth quarter of 2013, $150 million of ten-year swaps during the third quarter of 2014, and the remaining $125 million of ten-year swaps during the fourth quarter of 2014. The Company paid interest on the floating rate notes based on three-month LIBOR plus a credit spread of 3.0175%.

Credit Risk

Credit risk refers to the risk that a shipper may default on its contractual obligations resulting in a credit loss to the Company. A credit policy has been approved and implemented to govern the Company’s portfolio of shippers with the objective of mitigating credit losses. This policy establishes guidelines, controls, and limits, consistent with FERC filed tariffs, to manage credit risk within approved tolerances by mandating an appropriate evaluation of the financial condition of existing and potential shippers, monitoring agency credit ratings, and by implementing credit practices that limit credit exposure according to the risk profiles of the shippers. Furthermore, the Company may, at times, require collateral under certain circumstances in order to mitigate credit risk as necessary.

The Company’s shippers consist of a diverse portfolio of customers across the energy industry, including oil and gas producers, midstream companies, municipalities, utilities, and commercial and industrial end users. Our overall exposure may be affected positively or negatively by macroeconomic or regulatory changes that could impact our shippers to one extent or another. Currently, management does not anticipate a material adverse effect in our financial position or results of operations as a consequence of shipper non-performance.

Summary Financial Statement Information

The following table summarizes the fair value amounts of the Company’s asset and liability derivative instruments and their location reported in the consolidated balance sheets:

	Fair Value
	Asset Derivatives				Liability Derivatives
Balance Sheet Location	December 31, 2014		December 31, 2013		December 31, 2014		December 31, 2013
Economic Hedges:
Interest rate contracts:
Price risk management liabilities	$	—	$	—	$	—	$	10
Non-current price management liabilities	—		—		—		15
Total	$	—	$	—	$	—	$	25

The following table summarizes the location and amount (excluding income tax effects) of derivative instrument gains and losses reported in the Company’s consolidated financial statements:

	Successor									Predecessor
	Year Ended December 31, 2014			Year Ended December 31, 2013			Period from Acquisition (March 26, 2012) to December 31, 2012			Period from January 1, 2012 to March 25, 2012
Cash Flow Hedges:
Interest rate contracts:
Change in fair value – increase in accumulated other comprehensive income	$	—		$	—		$	—		$	6
Reclassification of unrealized loss from accumulated other comprehensive income – increase of interest expense	—			—			—			8
Commodity contracts — Gathering and Processing:
Change in fair value – increase (decrease) in accumulated other comprehensive income	—			(3		)	(6		)	5
Reclassification of unrealized gain from accumulated other comprehensive income	—			—			1			2
Economic Hedges:
Interest rate contracts:
Change in fair value — increase (decrease) in interest expense	(7		)	29			12			—
Commodity contracts:
Change in fair value — decrease in deferred natural gas purchases	—			(7		)	(32		)	(2		)