Derivatives (Tables)

9 Months Ended

Sep. 30, 2011

Derivatives

Cash Flow Hedges Outstanding

Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Oct'11– Dec'11	Crude oil – swap	4,000 Bbl/day	$84.28	WTI – NYMEX
Jan'12– Dec'12	Crude oil – swap	4,500 Bbl/day	$95.91	WTI – NYMEX
Jan'13 – Dec'13	Crude oil – swap	2,000 Bbl/day	$102.05	WTI – NYMEX
Oct'11 – Dec'11	Natural gas – swap	10,000 MMBtu/day	$4.43	CEGT
Oct'11– Dec'11	Natural gas – swap	70,000 MMBtu/day	$4.87	IF – NYMEX (HH)
Oct'11– Dec'11	Natural gas – basis differential swap	15,000 MMBtu/day	($0.14)	Tenn Zone 0 – NYMEX
Jan'12 – Dec'12	Natural gas – swap	30,000 MMBtu/day	$5.05	IF – NYMEX (HH)
Jan'12– Dec'12	Natural gas – swap	15,000 MMBtu/day	$5.62	IF – PEPL
Oct'11– Dec'11	Liquids – swap (1)	2,024,418 Gal/mo	$1.07	OPIS – Conway
Oct'11– Dec'11	Liquids – swap (1)	1,240,068 Gal/mo	$1.00	OPIS – Mont Belvieu
Jan'12– Mar'12	Liquids – swap (1)	1,350,014 Gal/mo	$1.10	OPIS – Conway
Jan'12– Mar'12	Liquids – swap (1)	1,155,018 Gal/mo	$0.91	OPIS – Mont Belvieu
Apr'12 – Dec'12	Liquids – swap (2)	180,006 Gal/mo	$2.11	OPIS – Conway
Apr'12– Jun'12	Liquids – swap (3)	690,028 Gal/mo	$0.79	OPIS – Mont Belvieu

(1) Types of liquids involved are natural gasoline, ethane, propane, isobutane and normal butane.

(2) Types of liquids involved are natural gasoline.

(3) Types of liquids involved are natural gasoline and ethane.

Non-qualifying Cash Flow Derivatives Outstanding

Term	Commodity	Hedged Volume	Basis Differential	Hedged Market
Oct'11– Dec'11	Natural gas – basis differential swap	15,000 MMBtu/day	($0.14)	Tenn Zone 0 – NYMEX
Oct'11– Dec'11	Natural gas – basis differential swap	10,000 MMBtu/day	($0.21)	CEGT – NYMEX
Oct'11– Dec'11	Natural gas – basis differential swap	10,000 MMBtu/day	($0.23)	PEPL – NYMEX

Fair Value Of Derivative Instruments And Locations In Balance Sheets

		Derivative Assets
		Fair Value
	Balance Sheet Location	September 30, 2011		December 31, 2010
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative assets	$	41,257	$	5,091
Long-term	Non-current derivative assets		23,989		2,537
Total derivatives designated as hedging instruments			65,246		7,628
Derivatives not designated as hedging instruments
Commodity derivatives:
Current	Current derivative assets		0		477
Total derivatives not designated as hedging instruments			0		477
Total derivative assets		$	65,246	$	8,105

		Derivative Liabilities
		Fair Value
	Balance Sheet Location	September 30, 2011		December 31, 2010
		(In thousands)
Derivatives designated as hedging instruments
Interest rate swaps:
Current	Current derivative liabilities	$	0	$	1,139
Long-term	Non-current derivative liabilities		0		475
Commodity derivatives:
Current	Current derivative liabilities		342		13,166
Long-term	Non-current derivative liabilities		0		3,884
Total derivatives designated as hedging instruments			342		18,664
Derivatives not designated as hedging instruments
Commodity derivatives (basis swaps):
Current	Current derivative liabilities		210		141
Total derivatives not designated as hedging instruments			210		141
Total derivative liabilities		$	552	$	18,805

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

Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Accumulated OCI on  Derivative (Effective Portion) (1)
	2011		2010
	(In thousands)
Interest rate swaps	$	0	$	(1,193	)
Commodity derivatives		37,323		13,459
Total	$	37,323	$	12,266

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

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 or (Loss) Recognized in Income (2)
		2011		2010			2011		2010
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	2,003	$	14,760		$	2,336	$	176
Interest rate swaps	Interest, net		0		(298	)		0		0
	Total	$	2,003	$	14,462		$	2,336	$	176

(1) Effective portion of gain (loss).

(2) Ineffective portion of gain (loss).  

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 or (Loss) Recognized in Income (2)
		2011			2010			2011		2010
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	(882	)	$	36,447		$	4,158	$	605
Interest rate swaps	Interest, net		(1,734	)		(907	)		0		0
	Total	$	(2,616	)	$	35,540		$	4,158	$	605

(1) Effective portion of gain (loss).

(2) Ineffective portion of gain (loss).

Amount Of Gain (Loss) Recognized In Income On Derivative

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		2011			2010
		(In thousands)
Commodity derivatives (basis swaps)	Oil and natural gas revenue	$	(61	)	$	(427	)
Total		$	(61	)	$	(427	)

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		2011			2010
		(In thousands)
Commodity derivatives (basis swaps)	Oil and natural gas revenue	$	(1,008	)	$	597
Total		$	(1,008	)	$	597