XML 54 R32.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Oil and gas contracts
As of December 31, 2013, the Company had entered into the following gas hedge contracts:
Production Period
 
Instrument
Type
 
Daily Volumes
 
Weighted
Average Price
Natural Gas:
 
 
 
 
 
 
2014
 
Swap
 
40,000 Mmbtu
 
$4.12
Crude Oil:
 
 
 
 
 
 
January - June 2014
 
Swap (LLS)
 
450 Bbls
 
$100.58
2014
 
Swap (LLS)
 
400 Bbls
 
$101.15
2014
 
Swap (WTI)
 
350 Bbls
 
$93.26
LLS - Louisiana Light Sweet
WTI - West Texas Intermediate    
At December 31, 2013, the Company had recognized a net liability of approximately $1.1 million related to the estimated fair value of these derivative instruments. Based on estimated future commodity prices as of December 31, 2013, the Company would realize a $0.7 million loss, net of taxes, during the next 12 months. These losses are expected to be reclassified to oil and gas sales based on the schedule of oil and gas volumes stipulated in the derivative contracts.
During January 2014, the Company entered into the following additional hedge contract accounted for as a cash flow hedge:
Production Period
 
Instrument Type
 
Daily Volumes
 
Weighted Average Price
Natural Gas:
 
 
 
 
 
 
March - December 2014
 
Swap
 
5,000 Mmbtu
 
$4.285
Effect of Cash Flow Hedges on the Consolidated Balance Sheet
Effect of Cash Flow Hedges on the Consolidated Balance Sheet at December 31, 2013 and December 31, 2012:
 
Commodity Derivatives
Period
Balance Sheet
Location
Fair Value
December 31, 2013
Derivative asset
$
521

December 31, 2013
Derivative liability
$
(1,617
)
December 31, 2012
Derivative asset
$
830
Effect of Cash Flow Hedges on the Consolidated Statement of Operations
Effect of Cash Flow Hedges on the Consolidated Statement of Operations for the twelve months ended December 31, 2013, 2012 and 2011:
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, 2013
$
(1,617
)
 
Oil and gas sales
 
$
994

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
Effect of Non-designated Derivative Instruments
Effect of Non-designated Derivative Instrument on the Consolidated Balance Sheet at December 31, 2012:
 
Commodity Derivatives
Period
Balance Sheet Location
Fair Value
December 31, 2012
Derivative liability
$
(233
)
Effect of Non-designated Derivative Instrument on the Consolidated Statement of Operations for the twelve months ended December 31, 2013, 2012 and 2011:
Instrument
Amount of Gain (Loss)
Recognized in Derivative
Income (Expense)
Commodity Derivatives at December 31, 2013
$
233

Commodity Derivatives at December 31, 2012
$
(233
)
Commodity Derivatives at December 31, 2011
$
—