Derivatives (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

At June 30, 2013, the following cash flow hedges were outstanding:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Jul’13 – Dec’13	Crude oil – swap	5,500 Bbl/day	$99.71	WTI – NYMEX
Jul’13 – Dec’13	Natural gas – swap	60,000 MMBtu/day	$3.56	IF – NYMEX (HH)
Jul’13 – Dec’13	Natural gas – collar	20,000 MMBtu/day	$3.25-3.72	IF – NYMEX (HH)

Non-designated hedges outstanding

At June 30, 2013, the following non-designated hedges were outstanding:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Jul’13 – Dec’13	Crude oil – swap	3,000 Bbl/day	$94.59	WTI – NYMEX
Jan’14 – Dec’14	Crude oil – swap	3,000 Bbl/day	$91.77	WTI – NYMEX
Jan’14 – Dec’14	Crude oil – collar	2,000 Bbl/day	$90.00-95.00	WTI – NYMEX
Jul’13 – Dec’13	Natural gas – swap	20,000 MMBtu/day	$3.94	IF – NYMEX (HH)
Jan’14 – Dec’14	Natural gas – swap	50,000 MMBtu/day	$4.24	IF – NYMEX (HH)

After June 30, 2013, we entered into following non-designated hedges:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Jan’14 – Dec’14	Crude oil – collar	2,000 Bbl/day	$90.00-97.15	WTI – NYMEX

Fair Value Of Derivative Instruments And Locations In Balance Sheets

The following tables present the fair values and locations of the derivative transactions recorded in our Unaudited Condensed Consolidated Balance Sheets:



		Derivative Assets
		Fair Value
	Balance Sheet Location	June 30, 2013		December 31, 2012
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative asset	$	4,215	$	13,674
Long-term	Non-current derivative asset	—		—
Total derivatives designated as hedging instruments		4,215		13,674



Derivatives not designated as hedging instruments
Commodity derivatives:
Current	Current derivative asset	$	5,680	$	2,878
Long-term	Non-current derivative asset	4,887		—
Total derivatives not designated as hedging instruments		10,567		2,878
Total derivative assets		$	14,782	$	16,552



		Derivative Liabilities
		Fair Value
	Balance Sheet Location	June 30, 2013		December 31, 2012
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative liabilities	$	879	$	1,005
Long-term	Non-current derivative liabilities	—		—
Total derivatives designated as hedging instruments		879		1,005



Derivatives not designated as hedging instruments
Commodity derivatives:
Current	Current derivative liabilities	$	—	$	943
Long-term	Non-current derivative liabilities	—		562
Total derivatives not designated as hedging instruments		—		1,505
Total derivative liabilities		$	879	$	2,510

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

These gains (losses) at June 30 are as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2013			2012		2013		2012
	(In thousands)
Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net:
Realized gains (losses) on derivatives not designated as hedges	$	(181	)	$	—	$	859	$	—
Unrealized gains on derivatives not designated as hedges	14,808			—		9,193		—
Unrealized gains (losses) on ineffectiveness of cash flow hedges	1,717			1,387		368		(606		)
	$	16,344		$	1,387	$	10,420	$	(606	)

Amount Of Gain Or (Loss) Recognized In Accumulated OCI On Derivative

Effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations (cash flow hedges) for the six months ended June 30:



Derivatives in Cash Flow Hedging Relationships	Amount of Gain Recognized in Accumulated OCI on Derivative (Effective Portion) ⁽¹⁾
	2013		2012
	(In thousands)
Commodity derivatives	$	1,709	$	30,314

(1) Net of taxes.

Gain Or Loss Of Reclassified Accumulated Other Comprehensive Income And Recognized In Income

Effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations (cash flow hedges) for the six months ended June 30:



Derivative Instrument	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income	Amount of Gain Reclassified from Accumulated OCI into Income ⁽¹⁾				Amount of Gain or (Loss) Recognized in Income ⁽²⁾
		2013		2012		2013		2012
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	3,008	$	23,846	$	—	$	—
Commodity derivatives	Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net	—		—		368		(606		)
Total		$	3,008	$	23,846	$	368	$	(606	)


(1)	Effective portion of gain (loss).


(2)	Ineffective portion of gain (loss).

Effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations (cash flow hedges) for the three months ended June 30:



Derivative Instrument	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income ⁽¹⁾					Amount of Gain Recognized in Income ⁽²⁾
		2013			2012		2013		2012
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	(823	)	$	15,670	$	—	$	—
Commodity derivatives	Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net	—			—		1,717		1,387
Total		$	(823	)	$	15,670	$	1,717	$	1,387


(1)	Effective portion of gain (loss).


(2)	Ineffective portion of gain (loss).

Effect Of Derivative Instruments Recognized In Statement Of Operations, Not Designated As Hedging Instruments

Effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations (derivatives not designated as hedging instruments) for the three months ended June 30:



Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain Recognized in Income on Derivative
		2013		2012
		(In thousands)
Commodity derivatives	Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net	$	14,627	$	—
Total		$	14,627	$	—

Effect of derivative instruments on the Unaudited Condensed Consolidated Statements of Operations (derivatives not designated as hedging instruments) for the six months ended June 30:



Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain Recognized in Income on Derivative
		2013		2012
		(In thousands)
Commodity derivatives	Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net	$	10,052	$	—
Total		$	10,052	$	—

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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