XML 101 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivatives (Tables)
 6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity Swap
The components of (gain) loss on derivatives in the condensed consolidated statements of operations relating to commodity swaps are provided below (in thousands):
 
 
Three Months Ended  
 June 30,
 
Six Months Ended 
 June 30,
 
2013
 
2012
 
2013
 
2012
Change in fair value of derivatives that are not designated as hedging
    instruments
$
388

 
$
(7,095
)
 
$
(244
)
 
$
(5,913
)
Realized (gains) losses on derivatives
(802
)
 
2,213

 
314

 
3,238

Ineffective portion of derivatives designated as hedging instruments
(31
)
 
(23
)
 
(43
)
 
(61
)
(Gain) loss on derivatives
$
(445
)
 
$
(4,905
)
 
$
27

 
$
(2,736
)
Fair Value of Derivative Assets and Liabilities relating to commodity swaps
The fair value of derivative assets and liabilities relating to commodity swaps are as follows (in thousands):
 
 
June 30, 2013
 
December 31, 2012
Fair value of derivative assets — current, designated
$
1,070


$
724

Fair value of derivative assets — current, non-designated
2,218


2,510

Fair value of derivative assets — long term, designated
112


—

Fair value of derivative liabilities — current, designated
(3
)

(105
)
Fair value of derivative liabilities — current, non-designated
(670
)

(1,205
)
Net fair value of derivatives
$
2,727

 
$
1,924
Notional Amount and Fair Value of Derivative Instruments
Set forth below are the summarized notional volumes and fair value of all instruments held for price risk management purposes and related physical offsets as of June 30, 2013 (all gas volumes are expressed in million British thermal units, liquids volumes are expressed in gallons and condensate volumes are expressed in barrels). The remaining terms of the contracts extend no later than December 2014.
 
 
June 30, 2013
Transaction Type
 
Volume
 
Fair Value
 
 
(In thousands)
Cash Flow Hedges:
 
 
 
 

Liquids swaps (short contracts)
 
(9,285
)
 
$
1,179

Total swaps designated as cash flow hedges
 
 
 
$
1,179

 
 
 
 

Mark to Market Derivatives:*
 
 
 
 
Swing swaps (long contracts)
 
930

 
$
135

Physical offsets to swing swap transactions (short contracts)
 
(930
)
 
(112
)
Swing swaps (short contracts)
 
(1,008
)
 
—

Physical offsets to swing swap transactions (long contracts)
 
1,008

 
—

 
 
 
 
 
Basis swaps (long contracts)
 
636

 
(35
)
Physical offsets to basis swap transactions (short contracts)
 
(636
)
 
2,042

Basis swaps (short contracts)
 
(636
)
 
4

Physical offsets to basis swap transactions (long contracts)
 
636

 
(2,255
)
 
 
 
 

Processing margin hedges — liquids (short contracts)
 
(4,634
)
 
1,182

Processing margin hedges — gas (long contracts)
 
494

 
(89
)
 
 
 
 

Liquids swaps - non-designated (short contracts)
 
(2,559
)
 
837

 
 
 
 

Storage swap transactions — gas (short contracts)
 
(100
)
 
14

Storage swap transactions — liquids inventory (short contracts)
 
(1,890
)
 
16

  Storage swap transactions — condensate inventory (short contracts)
 
(31
)
 
(191
)
Total mark to market derivatives
 
 
 
$
1,548

__________________________________________________
*                 All are gas contracts except for liquids swaps (designated or non-designated), processing margin hedges - liquids, storage swap transactions - liquids inventory and storage swap transactions - condensate inventory.
Impact of Cash Flow Hedges
The impact of realized gains or losses from derivatives designated as cash flow hedge contracts in the condensed consolidated statements of operations is summarized below (in thousands):
 
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
Increase in Midstream Revenue
 
2013
 
2012
 
2013
 
2012
Liquids realized gain included in Midstream revenue
 
$
380

 
$
407

 
$
660

 
$
395
Derivatives Other than Cash Flow Hedges
The estimated fair value of energy trading contracts by maturity date was as follows (in thousands):
 
 
Maturity Periods
 
Less than one year
 
One to two years
 
More than two years
 
Total fair value
June 30, 2013
$
1,548

 
$
—

 
$
—

 
$
1,548