DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2013

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Outstanding Commodity Derivatives

As of June 30, 2013, the Company had the following outstanding commodity derivatives:

				Collars
				Floor				Ceiling				Swaps
Type of Contract	Volume		Contract Period	Range (1)		Weighted Average (1)		Range (1)		Weighted Average (1)		(Weighted Average) (1)
Natural gas collars	8.9	Bcf	Jul. 2013 - Dec. 2013	$	—	$	5.15	$	6.18-$6.23	$	6.20
Natural gas collars	109.0	Bcf	Jul. 2013 - Dec. 2013	$	3.09-$4.37	$	3.63	$	3.98-$5.02	$	4.27
Natural gas collars	53.3	Bcf	Jul. 2013 - Dec. 2014	$	3.60-$3.96	$	3.78	$	4.55-$4.59	$	4.57
Natural gas collars	124.1	Bcf	Jan. 2014 - Dec. 2014	$	3.86-$4.37	$	4.19	$	4.63-$4.80	$	4.70
Crude oil swaps	552	Mbbl	Jul. 2013 - Dec. 2013									$	101.90

(1)    Natural gas prices are stated per Mcf and crude oil prices are stated per barrel.

Effect of Derivatives Instruments on the Consolidated Balance Sheet

		Fair Values of Derivative Instruments
		Derivative Assets				Derivative Liabilities
(In thousands)	Balance Sheet Location	June 30, 2013		December 31, 2012		June 30, 2013		December 31, 2012
Derivatives Designated as Hedging Instruments
Commodity contracts	Derivative instruments (current assets)	$	69,644	$	50,824	$	—	$	—
Commodity contracts	Derivative instruments (non-current assets)	17,963		—		—		—
Commodity contracts	Accrued liabilities	—		—		—		192
Commodity contracts	Derivative instruments (non-current liabilities)	—		—		—		—
		$	87,607	$	50,824	$	—	$	192

Schedule of offsetting of derivative assets and liabilities in the condensed consolidated balance sheet

(In thousands)	June 30, 2013			December 31, 2012
Derivative Assets
Gross amounts of recognized assets	$	89,840		$	54,454
Gross amounts offset in the statement of financial position	(2,233		)	(3,630		)
Net amounts of assets presented in the statement of financial position	87,607			50,824
Gross amounts of financial instruments not offset in the statement of financial position	549			1,892
Net amount	$	88,156		$	52,716
Derivative Liabilities
Gross amounts of recognized liabilities	$	2,233		$	3,822
Gross amounts offset in the statement of financial position	(2,233		)	(3,630		)
Net amounts of liabilities presented in the statement of financial position	—			192
Gross amounts of financial instruments not offset in the statement of financial position	—			—
Net amount	$	—		$	192

Effect of Derivatives Designated as Hedging Instruments on the Consolidated Statement of Operations

	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)
	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2013		2012		2013		2012
Commodity Contracts	$	115,113	$	18,376	$	54,167	$	89,104

Location of Gain (Loss)	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Reclassified from Accumulated OCI into	Three Months Ended June 30,					Six Months Ended June 30,
Income (In thousands)	2013			2012		2013		2012
Natural gas revenues	$	(272	)	$	69,732	$	13,056	$	126,728
Crude oil and condensate revenues	2,094			3,110		4,136		1,784
	$	1,822		$	72,842	$	17,192	$	128,512

Effect of Derivatives Not Designated as Hedging Instruments on the Consolidated Statement of Operations

	Location of Gain (Loss) Recognized in Income on	Three Months Ended  June 30,					Six Months Ended  June 30,
(In thousands)	Derivatives	2013		2012			2013		2012
Commodity Contracts	Natural gas revenues	$	—	$	(342	)	$	—	$	(300	)