Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of derivatives instruments

The following table summarizes derivative positions for the periods indicated as of June 30, 2014:

	July 1 - December31, 2014		2015
Oil positions:
Fixed price swaps (NYMEX WTI):
Hedged volume (MBbls)	2,484		—
Average price ($/Bbl)	$	91.26	$	—
Collars (NYMEX WTI):
Hedged volume (MBbls)	368		—
Average floor price ($/Bbl)	$	90.00	$	—
Average ceiling price ($/Bbl)	$	102.87	$	—
Three-way collars (NYMEX WTI):
Hedged volume (MBbls)	1,564		1,095
Short put ($/Bbl)	$	72.11	$	70.00
Long put ($/Bbl)	$	93.76	$	90.00
Short call ($/Bbl)	$	109.79	$	101.62
Three-way collars (ICE Brent):
Hedged volume (MBbls)	184		—
Short put ($/Bbl)	$	80.00	$	—
Long put ($/Bbl)	$	100.00	$	—
Short call ($/Bbl)	$	114.05	$	—
Oil basis differential positions:
ICE Brent - NYMEX WTI basis swaps:
Hedged volume (MBbls)	1,840		2,920
Hedged differential ($/Bbl)	$	11.60	$	11.60
Oil timing differential positions:
Trade month roll swaps (NYMEX WTI): (1)
Hedged volume (MBbls)	920		—
Hedged differential ($/Bbl)	$	0.32	$	—

⁽¹⁾  The Company hedges the timing risk associated with the sales price of oil in the Permian Basin. In this operating area, the Company generally sells oil for the delivery month at a sales price based on the average NYMEX WTI price during that month, plus an adjustment calculated as a spread between the weighted average prices of the delivery month, the next month and the following month during the period when the delivery month is prompt (the “trade month roll”).

Schedule of derivatives assets and liabilities

The Company’s commodity derivatives are presented on a net basis in “derivative instruments” on the condensed balance sheets. The following summarizes the fair value of derivatives outstanding on a gross basis:

	June 30, 2014		December 31, 2013
	(in thousands)
Assets:
Commodity derivatives	$	17,004	$	28,291
Liabilities:
Commodity derivatives	$	45,299	$	45,226