Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities (Tables)

v2.4.0.6
Derivative Instruments and Hedging Activities (Tables)
3 Months Ended
Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Outstanding Oil and Natural Gas Derivative Contracts
In the first quarter of 2013, the Company monetized the remaining portion (covering the period Feb13-Dec13) of its 2013 crude oil collar positions of 40 Bbls per month. The proceeds from this transaction, combined with the proceeds from the sale of the below listed put for 30 Bbls per month, were used to finance the uplift in the crude oil swap for the period Feb13-Dec13.

Listed in the table below are the outstanding crude oil and natural gas derivative contracts as of March 31, 2013:
Commodity
 
Instrument
 
Average Notional Volumes per Month
 
Quantity Type
 
Put/Call Price
 
Fixed-Price Swap
 
Period
 
Designation under ASC 815
Natural gas
 
Swap
 
91
 
MMbtu
 
n/a

 
$
3.52

 
Apr13 - Dec13
 
Not Designated
Natural gas
 
Put Option
 
91
 
MMbtu
 
$
3.00

 
n/a

 
Apr13 - Dec13
 
Not Designated
Crude oil
 
Swap
 
40
 
Bbls
 
n/a

 
$
101.30

 
Apr13 - Dec13
 
Not Designated
Natural gas
 
Call Option
 
38
 
MMbtu
 
$
4.75

 
n/a

 
Jan14 - Dec14
 
Not Designated
Crude oil
 
Swap
 
30
 
Bbls
 
n/a

 
$
93.35

 
Jan14 - Dec14
 
Not Designated
Crude oil
 
Put
 
30
 
Bbls
 
$
70.00

 
n/a

 
Jan14 - Dec14
 
Not Designated

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table reflects the fair values of the Company's derivative instruments for the periods presented (none of which were designated as hedging instruments under ASC 815):
 
 
Balance Sheet Presentation
 
Asset Fair Value
 
Liability Fair Value
 
Net Derivative Fair Value
Commodity
 
Classification
 
Line Description
 
03/31/13
 
12/31/12
 
03/31/13
 
12/31/12
 
03/31/13
 
12/31/12
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural gas
 
Current
 
Fair market value of derivatives
 
$

 
$

 
$
(537
)
 
$
(125
)
 
$
(537
)
 
$
(125
)
Natural gas
 
Non-current
 
Other long-term liabilities
 

 

 
(92
)
 
(116
)
 
(92
)
 
(116
)
Crude oil
 
Current
 
Fair market value of derivatives
 
1,511

 
1,674

 

 

 
1,511

 
1,674

Crude oil
 
Non-current
 
Other long-term assets
 

 
250

 

 

 

 
250

Crude oil
 
Non-current
 
Other long-term liabilities
 

 

 
(239
)
 

 
(239
)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Totals
 
 
 
$
1,511

 
$
1,924

 
$
(868
)
 
$
(241
)
 
$
643

 
$
1,683


Offsetting Assets and Liabilities
The following presents the impact of this presentation to the Company's recognized assets and liabilities at March 31, 2013:
 
 
Presented without
 
 
 
As Presented with
 
 
Effects of Netting
 
Effects of Netting
 
Effects of Netting
Current assets: Fair value of hedging contracts
 
$
2,347

 
$
(836
)
 
$
1,511

Long-term assets: Fair value of hedging contracts
 
286

 
(286
)
 

Current liabilities: Fair value of hedging contracts
 
(1,373
)
 
836

 
(537
)
Long-term liabilities: Fair value of hedging contracts
 
(617
)
 
286

 
(331
)
Schedule of Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance
For the periods indicated, the Company recorded the following related to its derivative instruments that were not designated as accounting hedges:
 
 
Three Months Ended March 31,
 
 
2013
 
2012
Natural gas derivatives
 
 
 
 
     Realized gain (loss), net
 
$
49

 
$

     Unrealized gain (loss), net
 
(388
)
 

          Sub-total gain (loss), net
 
$
(339
)
 
$

 
 
 
 
 
Crude oil derivatives
 
 
 
 
     Realized gain (loss), net
 
$
573

 
$

     Unrealized gain (loss), net
 
(652
)
 
70

          Sub-total gain (loss), net
 
$
(79
)
 
$
70

 
 
 
 
 
Total gain (loss) on derivative instruments, net
 
$
(418
)
 
$
70

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location
The tables below present the effect of the Company's derivative financial instruments on the consolidated statements of operations as an increase (decrease) to crude oil revenues for the effective portion and as an increase (decrease) to other (income) expense for the ineffective portion and amounts excluded from effectiveness testing:
 
 
Three Months Ended March 31,
 
 
2013
 
2012
Amount of gain (loss) reclassified from OCI into income (effective portion)
 
$

 
$

Amount of gain (loss) recognized in income (ineffective portion and amount excluded from effectiveness testing)
 

 
230