Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities (Tables)

v2.4.0.8
Derivative Instruments and Hedging Activities (Tables)
6 Months Ended
Jun. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

 

The following table reflects the fair value of the Company’s derivative instruments for the periods presented:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Presentation

 

Asset Fair Value

 

Liability Fair Value

 

Net Derivative Fair Value

Commodity

 

Classification

 

Line Description

 

06/30/14

 

12/31/2013

 

06/30/2014

 

12/31/2013

 

06/30/2014

 

12/31/2013

Natural gas

 

Current

 

Fair value of derivatives

 

$

 

$

 

$

(114)

 

$

 

$

(114)

 

$

Natural gas

 

Current

 

Other current assets

 

 

 

 

60 

 

 

 

 

 

 

 

 

60 

Natural gas

 

Non-current

 

Other long-term liabilities

 

 

 

 

 

 

(29)

 

 

(72)

 

 

(29)

 

 

(72)

Oil

 

Current

 

Fair value of derivatives

 

 

 

 

 

 

(5,192)

 

 

(1,036)

 

 

(5,192)

 

 

(1,036)

Oil

 

Non-current

 

Other long-term assets

 

 

851 

 

 

 

 

 

 

 

 

851 

 

 

Oil

 

Non-current

 

Other long-term liabilities

 

 

 

 

 

 

(1,242)

 

 

 

 

(1,242)

 

 

 

 

Totals

 

 

 

$

851 

 

$

60 

 

$

(6,577)

 

$

(1,108)

 

$

(5,726)

 

$

(1,048)

 

As previously discussed, the Company’s derivative contracts are subject to master netting arrangements. The Company’s policy is to present the fair value of derivative contracts on a net basis in the consolidated balance sheet. The following presents the impact of this presentation to the Company’s recognized assets and liabilities at June 30, 2014:

 

 

 

 

 

 

 

 

 

 

 

 

Presented without

 

 

 

As Presented with

 

 

Effects of Netting

 

Effects of Netting

 

Effects of Netting

Current assets: Fair value of derivatives

 

$

26 

 

$

(26)

 

$

Long-term assets: Fair value of derivatives

 

 

851 

 

 

 

 

851 

Current liabilities: Fair value of derivatives

 

 

(5,332)

 

 

26 

 

 

(5,306)

Long-term liabilities: Fair value of derivatives

 

$

(1,271)

 

$

 

$

(1,271)

 

Schedule of Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2014

 

 

2013

 

 

2014

 

 

2013

Natural gas derivatives

 

 

 

 

 

 

 

 

 

 

 

 

Net loss on settlements

 

$

(77)

 

$

(156)

 

$

(179)

 

$

(107)

Net gain (loss) on fair value adjustments

 

 

58 

 

 

485 

 

 

(132)

 

 

97 

Total gain (loss)

 

$

(19)

 

$

329 

 

$

(311)

 

$

(10)

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil derivatives

 

 

 

 

 

 

 

 

 

 

 

 

Net gain (loss) on settlements

 

$

(1,569)

 

$

849 

 

$

(2,341)

 

$

1,422 

Net gain (loss) on fair value adjustments

 

 

(3,097)

 

 

803 

 

 

(4,546)

 

 

151 

Total gain (loss)

 

$

(4,666)

 

$

1,652 

 

$

(6,887)

 

$

1,573 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gain (loss) on derivative instruments

 

$

(4,685)

 

$

1,981 

 

$

(7,198)

 

$

1,563 

 

Schedule of Outstanding Oil and Natural Gas Derivative Contracts

Listed in the tables below are the outstanding oil and natural gas derivative contracts as of June 30, 2014:

 

 

 

 

 

 

 

 

 

 

For the Six Months Ending December 31,

 

For the Year Ending December 31,

Oil contracts

 

2014

 

2015

Collar contracts combined with short puts (three-way collar):

 

 

 

 

 

 

  Volume (MBbls)

 

 

 

 

317 

  Price per Bbl

 

 

 

 

 

 

     Ceiling (short call)

 

 

 

$

99.10 

     Floor (long put)

 

 

 

$

90.00 

     Short put

 

 

 

$

75.00 

Swap contracts:

 

 

 

 

 

 

  Total volume (MBbls)

 

 

304 

 

 

  Weighted average price per Bbl

 

$

95.10 

 

 

Put spreads:

 

 

 

 

 

 

  Volume (MBbls)

 

 

 

 

276 

  Long put price per Bbl

 

 

 

$

90.00 

  Short put price per Bbl

 

 

 

$

75.00 

Swap contracts combined with short put:

 

 

 

 

 

 

  Volume (MBbls)

 

 

184 

 

 

  Swap price per Bbl

 

$

93.35 

 

 

  Short put price per Bbl

 

$

70.00 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ending December 31,

 

For the Year Ending December 31,

Natural gas contracts

 

2014

 

2015

Call contracts:

 

 

 

 

 

 

  Volume (MMBtu)

 

 

230 

 

 

     Short call price per MMBtu (a)

 

$

4.75 

 

 

     Long call price per MMBtu (a)

 

$

4.75 

 

 

Swap contracts combined with short calls:

 

 

 

 

 

 

  Swap volume (MMBtu)

 

 

368 

 

 

  Swap price per MMBtu

 

$

4.25 

 

 

  Short call volume (MMBtu)

 

 

 

 

438 

  Short call price per MMBtu

 

 

 

$

5.00 

 

(a)Offsetting contracts.