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Derivative Instruments and Hedging Activities (Tables)
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9 Months Ended |
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Sep. 30, 2014
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| 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:
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Balance Sheet Presentation
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Asset Fair Value
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Liability Fair Value
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Net Derivative Fair Value
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Commodity
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Classification
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Line Description
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09/30/14
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12/31/2013
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09/30/2014
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12/31/2013
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09/30/2014
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12/31/2013
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Natural gas
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Current
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Fair value of derivatives
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$
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—
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$
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—
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$
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(47)
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$
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—
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$
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(47)
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$
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—
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Natural gas
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Current
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Fair value of derivatives
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—
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60
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—
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—
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—
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60
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Natural gas
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Non-current
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Other long-term liabilities
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—
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—
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(41)
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(72)
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(41)
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(72)
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Oil
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Current
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Fair value of derivatives
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4,842
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—
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(418)
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(1,036)
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4,424
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(1,036)
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Oil
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Non-current
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Other long-term assets
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1,169
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—
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—
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—
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1,169
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—
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Oil
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Non-current
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Other long-term liabilities
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—
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—
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(824)
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—
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(824)
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—
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Totals
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$
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6,011
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$
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60
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$
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(1,330)
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$
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(1,108)
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$
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4,681
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$
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(1,048)
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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 September 30, 2014:
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Presented without
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As Presented with
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Effects of Netting
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Effects of Netting
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Effects of Netting
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Current assets: Fair value of derivatives
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$
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4,968
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$
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(126)
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$
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4,842
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Long-term assets: Fair value of derivatives
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1,169
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—
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1,169
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Current liabilities: Fair value of derivatives
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$
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(591)
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$
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126
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$
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(465)
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Long-term liabilities: Fair value of derivatives
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(865)
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—
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(865)
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| Schedule of Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance |
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2014
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2013
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2014
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2013
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Natural gas derivatives
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Net gain (loss) on settlements
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$
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35
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$
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(16)
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$
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(144)
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$
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(123)
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Net gain (loss) on fair value adjustments
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55
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81
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(77)
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178
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Total gain (loss)
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$
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90
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$
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65
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$
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(221)
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$
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55
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Oil derivatives
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Net gain (loss) on settlements
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$
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(497)
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$
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(618)
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$
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(2,838)
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$
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804
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Net gain (loss) on fair value adjustments
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10,351
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(3,133)
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5,805
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(2,982)
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Total gain (loss)
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$
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9,854
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$
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(3,751)
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$
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2,967
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$
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(2,178)
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Total gain (loss) on derivative instruments
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$
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9,944
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$
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(3,686)
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$
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2,746
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$
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(2,123)
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| Schedule of Outstanding Oil and Natural Gas Derivative Contracts |
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For the Three Months Ended
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December 31,
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March 31,
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June 30,
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September 30,
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December 31,
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Oil contracts
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2014
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2015
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2015
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2015
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2015
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Collar contracts combined with short
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puts (three-way collar):
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Volume (MBbls)
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—
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158
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159
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—
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—
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Price per Bbl
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Ceiling (short call)
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$
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—
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$
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99.10
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$
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99.10
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$
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—
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$
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—
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Floor (long put)
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$
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—
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$
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90.00
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$
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90.00
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$
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—
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$
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—
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Short put
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$
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—
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$
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75.00
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$
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75.00
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$
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—
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$
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—
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Swap contracts:
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Total volume (MBbls)
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267
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171
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136
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129
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74
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Weighted average price per Bbl
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$
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93.66
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$
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92.25
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$
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92.18
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$
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92.25
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$
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92.20
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Put spreads:
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Volume (MBbls)
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—
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—
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—
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138
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138
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Long put price per Bbl
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$
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—
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$
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—
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$
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—
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$
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90.00
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$
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90.00
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Short put price per Bbl
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$
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—
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$
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—
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$
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—
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$
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75.00
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$
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75.00
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Swap contracts combined with short put:
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Volume (MBbls)
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92
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—
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—
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—
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—
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Swap price per Bbl
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$
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93.35
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$
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—
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$
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—
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$
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—
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$
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—
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Short put price per Bbl
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$
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70.00
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$
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—
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$
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—
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$
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—
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$
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—
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For the Three Months Ended
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December 31,
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March 31,
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June 30,
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September 30,
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December 31,
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Natural gas contracts
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2014
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2015
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2015
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2015
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2015
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Collar contracts combined with short
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puts (three-way collar):
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Volume (BBtu)
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—
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248
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227
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207
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161
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Weighted average price per MMBtu
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Ceiling (short call)
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$
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—
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$
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4.67
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$
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4.32
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$
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4.32
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$
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4.32
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Floor (long put)
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$
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—
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$
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4.00
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$
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3.85
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$
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3.85
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$
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3.85
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Short put
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$
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—
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$
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3.50
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$
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3.25
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$
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3.25
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$
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3.25
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Swap contracts:
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Total volume (BBtu)
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414
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248
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227
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207
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161
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Weighted average price per MMBtu
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$
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4.04
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$
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3.98
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$
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3.98
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$
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3.98
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$
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3.98
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Call contracts:
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Volume (BBtu)
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115
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—
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—
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—
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—
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Short call price per MMBtu (a)
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$
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4.75
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$
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—
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$
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—
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$
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—
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$
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—
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Long call price per MMBtu (a)
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$
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4.75
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$
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—
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$
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—
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$
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—
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$
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—
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Swap contracts combined with short calls:
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Swap volume (BBtu)
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184
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—
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—
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—
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—
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Swap price per MMBtu
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$
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4.25
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$
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—
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$
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—
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$
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—
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$
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—
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Short call volume (BBtu)
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—
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108
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109
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110
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111
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Short call price per MMBtu
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$
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—
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$
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5.00
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$
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5.00
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$
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5.00
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$
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5.00
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(a)
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Offsetting contracts.
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Subsequent Event
The following derivative contracts were executed subsequent to September 30, 2014:
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For the Three Months Ended
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March 31,
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June 30,
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September 30,
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December 31,
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Natural gas contracts
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2015
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2015
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2015
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2015
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Swap contracts:
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Total volume (BBtu)
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23
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10
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12
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67
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Weighted average price per MMBtu
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$
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3.91
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$
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3.91
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$
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3.91
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$
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3.91
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