Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of December 31, 2012, the Company had entered into the following gas hedge contracts:



Production Period	Instrument Type	Daily Volumes	Weighted Average Price
Natural Gas:
2013	3-way collar	10,000 Mmbtu	$2.00-$3.00-$4.09
2013	Swap	5,000 Mmbtu	$4.00

At December 31, 2012, the Company had recognized a net asset of approximately $0.6 million related to the estimated fair value of these derivative instruments. Based on estimated future commodity prices as of December 31, 2012, the Company would realize a $0.4 million gain, net of taxes, during the next 12 months. These gains are expected to be reclassified to oil and gas sales based on the schedule of gas volumes stipulated in the derivative contracts.

During January and February 2013, we entered into the following additional hedge contracts accounted for as cash flow hedges:



Production Period	Instrument Type	Daily Volumes	Weighted Average Price
Crude Oil:
February - December 2013	Swap	250 Bbls	$104.75
Natural Gas:
February - December 2013	Swap	10,000 Mmbtu	$3.71
March - December 2013	Swap	5,000 Mmbtu	$3.50
April - December 2013	Swap	5,000 Mmbtu	$3.74
January - December 2014	Swap	10,000 Mmbtu	$4.08

Effect of Cash Flow Hedges on the Consolidated Balance Sheet

Effect of Cash Flow Hedges on the Consolidated Balance Sheet at December 31, 2012 and December 31, 2011:



	Commodity Derivatives
Period	Balance Sheet Location	Fair Value
December 31, 2012	Derivative asset	$	830
December 31, 2011	Derivative asset	$	6,418

Effect of Cash Flow Hedges on the Consolidated Statement of Operations

Effect of Cash Flow Hedges on the Consolidated Statement of Operations for the years ended December 31, 2012, 2011 and 2010:



Instrument	Amount of Gain (Loss) Recognized in Other Comprehensive Income			Location of Gain Reclassified into Income	Amount of Gain Reclassified into Income
Commodity Derivatives at December 31, 2012	$	(3,510	)	Oil and gas sales	$	9,097
Commodity Derivatives at December 31, 2011	$	5,120		Oil and gas sales	$	2,417
Commodity Derivatives at December 31, 2010	$	(2,857	)	Oil and gas sales	$	17,538

Effect of Non-designated Derivative Instruments

Effect of Non-designated Derivative Instrument on the Consolidated Balance Sheet at December 31, 2012 and December 31, 2011:



	Commodity Derivatives
Period	Balance Sheet Location	Fair Value
December 31, 2012	Derivative liability	$	(233	)
December 31, 2011		$	—

Effect of Non-designated Derivative Instrument on the Consolidated Statement of Operations for the twelve months ended December 31, 2012, 2011 and 2010:



Instrument	Amount of Unrealized Loss Recognized in Derivative Expense
Commodity Derivatives at December 31, 2012	$	(233	)
Commodity Derivatives at December 31, 2011	$	—
Commodity Derivatives at December 31, 2010	$	—

- 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.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details