Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of December 31, 2014, the Company had entered into the following gas hedge contracts:

At December 31, 2014, the Company had recognized an asset of approximately $8.6 million related to the estimated fair value of these derivative contracts. Based on estimated future commodity prices as of December 31, 2014, the Company would realize a $5.4 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 volumes stipulated in the derivative contracts.

During January and February 2015, the Company entered into the following additional derivative contracts accounted for as a cash flow hedges:



Production Period	Instrument Type	Daily Volumes	Weighted Average Price
Natural Gas:
February - December 2015	Swap	10,000 Mmbtu	$2.93
July 2015 - June 2016	Swap	10,000 Mmbtu	$3.22
March 2015 - December 2015	Swap	15,000 Mmbtu	$2.99
Crude Oil:
February - December 2015	Swap (LLS)	250 Bbls	$54.00
March 2015 - December 2015	Swap (LLS)	250 Bbls	$59.35
Propane:
March 2015 - December 2015	Swap	250 Bbls	$25.62

LLS - Louisiana Light Sweet

Effect of Cash Flow Hedges on the Consolidated Balance Sheet

Effect of Cash Flow Hedges on the Consolidated Balance Sheet at December 31, 2014 and December 31, 2013:



	Commodity Derivatives
Period	Balance Sheet Location	Fair Value
December 31, 2014	Derivative asset	$	8,631
December 31, 2013	Derivative asset	$	521
December 31, 2013	Derivative liability	$	(1,617	)

Effect of Cash Flow Hedges on the Consolidated Statement of Operations

Effect of Cash Flow Hedges on the Consolidated Statement of Operations for years ended December 31, 2014, 2013 and 2012:



Instrument	Amount of Gain (Loss) Recognized in Other Comprehensive Income			Location of Gain Reclassified into Income	Amount of Gain (Loss) Reclassified into Income
Commodity Derivatives at December 31, 2014	$	6,516		Oil and gas sales	$	(3,044	)
Commodity Derivatives at December 31, 2013	$	(1,617	)	Oil and gas sales	$	927
Commodity Derivatives at December 31, 2012	$	(3,510	)	Oil and gas sales	$	9,097

Effect of Non-designated Derivative Instruments

Effect of Non-designated Derivative Instrument on the Consolidated Statement of Operations for the years ended December 31, 2013 and 2012:



Instrument	Amount of Gain (Loss) Recognized in Derivative Income (Expense)
Commodity Derivatives at December 31, 2013	$	233
Commodity Derivatives at December 31, 2012	$	(233	)

Production Period

Instrument Type

Daily Volumes

Weighted Average Price

Natural Gas:

30,000 Mmbtu