DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table illustrates our derivative positions for calendar years 2015 and 2016 as of February 24, 2015:


	Fixed-Price Swaps (NYMEX)
	Natural Gas				Oil
	Daily Volume (MMBtus/d)		Swap Price ($/MMBtu)		Daily Volume (Bbls/d)		Swap Price ($/Bbl)
2015		10,000		4.005		1,000		89.00
2015		10,000		4.120		1,000		90.00
2015		10,000		4.150		1,000		90.25
2015		10,000		4.165		1,000		90.40
2015		10,000		4.220		1,000		91.05
2015		10,000		4.255		1,000		93.28
2015						1,000		93.37
2015						1,000		94.85
2015						1,000		95.00
2016		10,000		4.110		1,000		90.00
2016		10,000		4.120

Location and Fair Value Amounts of Derivative Instruments Reported in Balance Sheet

The following tables disclose the location and fair value amounts of derivatives qualifying as hedging instruments, as reported in our balance sheet, at December 31, 2014 and 2013:

Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2014

Asset Derivatives

Liability Derivatives

Description

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Commodity contracts

Current assets: Fair value of derivative contracts

$127,033

Current liabilities: Fair value of derivative contracts

$ -

Long-term assets: Fair value of derivative contracts

14,333

Long-term liabilities: Fair value of derivative contracts

$141,366

$ -

Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2013

Asset Derivatives

Liability Derivatives

Description

Balance Sheet Location

Fair Value

Balance Sheet Location

Fair Value

Commodity contracts

Current assets: Fair value of derivative contracts

$4,549

Current liabilities: Fair value of derivative contracts

$7,753

Long-term assets: Fair value of derivative contracts

1,378

Long-term liabilities: Fair value of derivative contracts

470

$5,927

$8,223

Before Tax Effect of Derivative Instruments in Statement of Operations

The following table discloses the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the years ended December 31, 2014, 2013 and 2012:

Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations

for the Years Ended December 31, 2014, 2013 and 2012

Derivatives in Cash

Flow Hedging

Relationships

Amount of Gain
(Loss) Recognized
in Other
Comprehensive
Income on
Derivatives

Gain (Loss) Reclassified from

Accumulated Other Comprehensive Income
into Income

(Effective Portion) (a)

Gain (Loss) Recognized in Income

on Derivatives

(Ineffective Portion)

Location

2014

Commodity contracts

$136,097

Operating revenue -
oil/gas production

$526

Derivative income, net

$5,721

Total

$136,097

$526

$5,721

2013

Commodity contracts

($26,945)

Operating revenue -
oil/gas production

$20,289

Derivative expense, net

($2,090)

Total

($26,945)

$20,289

($2,090)

2012

Commodity contracts

$41,209

Operating revenue -
oil/gas production

$30,326

Derivative income, net

$3,428

Total

$41,209

$30,326

$3,428

(a)

For the year ended December 31, 2014, effective hedging contracts increased oil revenue by $7,929 and decreased gas revenue by $7,403. For the year ended December 31, 2013, effective hedging contracts increased oil revenue by $3,520 and increased gas revenue by $16,769. For the year ended December 31, 2012, effective hedging contracts increased oil revenue by $8,546 and increased gas revenue by $21,780.

Location and Fair Value Amounts of Derivative Instruments Not Qualifying as Hedging Instruments Reported in Balance Sheet

The following table discloses the location and fair value amounts of our derivatives not qualifying as hedging instruments, as reported in our balance sheet, at December 31, 2014. All of our derivatives at December 31, 2013 qualified as hedging instruments.

Gains or Losses Related to Changes in Fair Value and Cash Settlements on Derivatives Not Qualifying as Hedging Instruments

Gains or losses related to changes in fair value and cash settlements for derivatives not qualifying as hedging instruments are recorded as derivative income (expense) in the statement of operations. The following table discloses the before tax effect of our derivatives not qualifying as hedging instruments on the statement of operations for the year ended December 31, 2014:


Amount of Gain Recognized in Derivative Income
Description	Year Ended December 31, 2014
Commodity contracts:
Cash settlements		$1,484
Change in fair value		12,146

Total gains on non-qualifying hedges		$13,630

Impact of Rights of Offset Associated with Recognized Assets and Liabilities

The following presents the potential impact of the rights of offset associated with our recognized assets and liabilities at December 31, 2013:


	As Presented Without Netting		Effects of Netting		With Effects of Netting
Current assets: Fair value of derivative contracts		$4,549		($4,043)		$506
Long-term assets: Fair value of derivative contracts		1,378		(274)		1,104
Current liabilities: Fair value of derivative contracts		(7,753)		4,043		(3,710)
Long-term liabilities: Fair value of derivative contracts		(470)		274		(196)

Fair Value of Derivatives Not Qualifying as Hedging Instruments at December 31, 2014

Description

Balance Sheet Location

Fair Value

Commodity contracts

Current assets: Fair value of derivative contracts