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Derivatives (Tables) (Linn Energy, LLC [Member])
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Linn Energy, LLC [Member]
   
Derivative Instruments, Gain (Loss) [Line Items]    
Schedule of Derivative Instruments
The following table summarizes derivative positions for the periods indicated as of March 31, 2013:
 
April 1 - December 31, 2013
 
2014
 
2015
 
2016
 
2017
 
2018
Natural gas positions:
 
 
 
 
 
 
 
 
 
 
 
Fixed price swaps:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
65,766

 
97,401

 
118,041

 
121,841

 
120,122

 
36,500

Average price ($/MMBtu)
$
5.22

 
$
5.25

 
$
5.19

 
$
4.20

 
$
4.26

 
$
5.00

Puts: (1)
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
64,944

 
79,628

 
71,854

 
76,269

 
66,886

 

Average price ($/MMBtu)
$
5.37

 
$
5.00

 
$
5.00

 
$
5.00

 
$
4.88

 
$

Total:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
130,710

 
177,029

 
189,895

 
198,110

 
187,008

 
36,500

Average price ($/MMBtu)
$
5.29

 
$
5.14

 
$
5.12

 
$
4.51

 
$
4.48

 
$
5.00

Oil positions:
 
 
 
 
 
 
 
 
 
 
 
Fixed price swaps: (2)
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
8,944

 
11,903

 
11,599

 
11,464

 
4,755

 

Average price ($/Bbl)
$
94.97

 
$
92.92

 
$
96.23

 
$
90.56

 
$
89.02

 
$

Puts:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
2,339

 
3,960

 
3,426

 
3,271

 
384

 

Average price ($/Bbl)
$
97.86

 
$
91.30

 
$
90.00

 
$
90.00

 
$
90.00

 
$

Total:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
11,283

 
15,863

 
15,025

 
14,735

 
5,139

 

Average price ($/Bbl)
$
95.57

 
$
92.52

 
$
94.81

 
$
90.44

 
$
89.10

 
$

Natural gas basis differential positions: (3)
 
 
 
 
 
 
 
 
 
 
 
Panhandle basis swaps:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
58,508

 
79,388

 
87,162

 
19,764

 

 

Hedged differential ($/MMBtu)
$
(0.56
)
 
$
(0.33
)
 
$
(0.33
)
 
$
(0.31
)
 
$

 
$

NWPL Rockies basis swaps:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
26,208

 
36,026

 
38,362

 
39,199

 

 

Hedged differential ($/MMBtu)
$
(0.20
)
 
$
(0.20
)
 
$
(0.20
)
 
$
(0.20
)
 
$

 
$

MichCon basis swaps:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
7,233

 
9,490

 
9,344

 

 

 

Hedged differential ($/MMBtu)
$
0.10

 
$
0.08

 
$
0.06

 
$

 
$

 
$

Houston Ship Channel basis swaps:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
4,318

 
5,256

 
4,891

 
4,575

 

 

Hedged differential ($/MMBtu)
$
(0.10
)
 
$
(0.10
)
 
$
(0.10
)
 
$
(0.10
)
 
$

 
$

Permian basis swaps:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
3,493

 
4,891

 
5,074

 

 

 

Hedged differential ($/MMBtu)
$
(0.20
)
 
$
(0.21
)
 
$
(0.21
)
 
$

 
$

 
$

Oil basis differential positions: (3)
 
 
 
 
 
 
 
 
 
 
 
Midland - Cushing basis swaps:
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
1,513

 

 

 

 

 

Hedged differential ($/Bbl)
$
(0.95
)
 
$

 
$

 
$

 
$

 
$

Oil timing differential positions:
 
 
 
 
 
 
 
 
 
 
 
Trade month roll swaps: (4)
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
5,232

 
7,254

 
7,251

 
7,446

 
6,486

 

Hedged differential ($/Bbl)
$
0.22

 
$
0.22

 
$
0.24

 
$
0.25

 
$
0.25

 
$


(1)
Includes certain outstanding natural gas puts of approximately 7,964 MMMBtu for the period April 1, 2013, through December 31, 2013, 10,570 MMMBtu for each of the years ending December 31, 2014, and December 31, 2015, and 10,599 MMMBtu for the year ending December 31, 2016, used to hedge revenues associated with NGL production.
(2)
Includes certain outstanding fixed price oil swaps of approximately 5,384 MBbls which may be extended annually at a price of $100.00 per Bbl for each of the years ending December 31, 2017, and December 31, 2018, and $90.00 per Bbl for the year ending December 31, 2019, if the counterparties determine that the strike prices are in-the-money on a designated date in each respective preceding year. The extension for each year is exercisable without respect to the other years.
(3)
Settle on the respective pricing index to hedge basis differential associated with natural gas and oil production.
(4)
The Company hedges the timing risk associated with the sales price of oil in the Mid-Continent, Hugoton Basin and Permian Basin regions. In these regions, the Company generally sells oil for the delivery month at a sales price based on the average NYMEX price of light crude oil during that month, plus an adjustment calculated as a spread between the weighted average prices of the delivery month, the next month and the following month during the period when the delivery month is prompt (the “trade month roll”).
The following table summarizes derivative positions for the periods indicated as of December 31, 2012:
 
 
2013
 
2014
 
2015
 
2016
 
2017
 
2018
Natural gas positions:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed price swaps:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
 
87,290

 
97,401

 
118,041

 
121,841

 
120,122

 
36,500

Average price ($/MMBtu)
 
$
5.22

 
$
5.25

 
$
5.19

 
$
4.20

 
$
4.26

 
$
5.00

Puts: (1)
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
 
86,198

 
79,628

 
71,854

 
76,269

 
66,886

 

Average price ($/MMBtu)
 
$
5.37

 
$
5.00

 
$
5.00

 
$
5.00

 
$
4.88

 
$

Total:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
 
173,488

 
177,029

 
189,895

 
198,110

 
187,008

 
36,500

Average price ($/MMBtu)
 
$
5.29

 
$
5.14

 
$
5.12

 
$
4.51

 
$
4.48

 
$
5.00

 
 
 
 
 
 
 
 
 
 
 
 
 
Oil positions:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed price swaps: (2)
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
 
11,871

 
11,903

 
11,599

 
11,464

 
4,755

 

Average price ($/Bbl)
 
$
94.97

 
$
92.92

 
$
96.23

 
$
90.56

 
$
89.02

 
$

Puts:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
 
3,105

 
3,960

 
3,426

 
3,271

 
384

 

Average price ($/Bbl)
 
$
97.86

 
$
91.30

 
$
90.00

 
$
90.00

 
$
90.00

 
$

Total:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
 
14,976

 
15,863

 
15,025

 
14,735

 
5,139

 

Average price ($/Bbl)
 
$
95.57

 
$
92.52

 
$
94.81

 
$
90.44

 
$
89.10

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Natural gas basis differential positions: (3)
 
 
 
 
 
 
 
 
 
 
 
 
Panhandle basis swaps:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
 
77,800

 
79,388

 
87,162

 
19,764

 

 

Hedged differential ($/MMBtu)
 
$
(0.56
)
 
$
(0.33
)
 
$
(0.33
)
 
$
(0.31
)
 
$

 
$

NWPL - Rockies basis swaps:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
 
34,785

 
36,026

 
38,362

 
39,199

 

 

Hedge differential ($/MMBtu)
 
$
(0.20
)
 
$
(0.20
)
 
$
(0.20
)
 
$
(0.20
)
 
$

 
$

MichCon basis swaps:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
 
9,600

 
9,490

 
9,344

 

 

 

Hedged differential ($/MMBtu)
 
$
0.10

 
$
0.08

 
$
0.06

 
$

 
$

 
$

Houston Ship Channel basis swaps:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
 
5,731

 
5,256

 
4,891

 
4,575

 

 

Hedged differential ($/MMBtu)
 
$
(0.10
)
 
$
(0.10
)
 
$
(0.10
)
 
$
(0.10
)
 
$

 
$

Permian basis swaps:
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MMMBtu)
 
4,636

 
4,891

 
5,074

 

 

 

Hedged differential ($/MMBtu)
 
$
(0.20
)
 
$
(0.21
)
 
$
(0.21
)
 
$

 
$

 
$

 
 
 
 
 
 
 
 
 
 
 
 
 
Oil timing differential positions:
 
 
 
 
 
 
 
 
 
 
 
 
Trade month roll swaps: (4)
 
 
 
 
 
 
 
 
 
 
 
 
Hedged volume (MBbls)
 
6,944

 
7,254

 
7,251

 
7,446

 
6,486

 

Hedged differential ($/Bbl)
 
$
0.22

 
$
0.22

 
$
0.24

 
$
0.25

 
$
0.25

 
$

(1) 
Includes certain outstanding natural gas puts of approximately 10,570 MMMBtu for each of the years ending December 31, 2013, December 31, 2014, and December 31, 2015, and 10,599 MMMBtu for the year ending December 31, 2016, used to hedge revenues associated with NGL production.
(2) 
Includes certain outstanding fixed price oil swaps of approximately 5,384 MBbls which may be extended annually at a price of $100.00 per Bbl for each of the years ending December 31, 2017, and December 31, 2018, and $90.00 per Bbl for the year ending December 31, 2019, if the counterparties determine that the strike prices are in-the-money on a designated date in each respective preceding year. The extension for each year is exercisable without respect to the other years.
(3) 
Settle on the respective pricing index to hedge basis differential associated with natural gas production.
(4) 
The Company hedges the timing risk associated with the sales price of oil in the Mid-Continent, Hugoton Basin and Permian Basin regions. In these regions, the Company generally sells oil for the delivery month at a sales price based on the average NYMEX price of light crude oil during that month, plus an adjustment calculated as a spread between the weighted average prices of the delivery month, the next month and the following month during the period when the delivery month is prompt (the “trade month roll”).
Fair Value of Derivatives Outstanding on a Gross Basis by Location on the Balance Sheet
The Company’s commodity derivatives are presented on a net basis in “derivative instruments” on the condensed consolidated balance sheets. The following summarizes the fair value of derivatives outstanding on a gross basis:
 
March 31,
2013
 
December 31,
2012
 
(in thousands)
Assets:
 
 
 
Commodity derivatives
$
1,034,866

 
$
1,282,390

Liabilities:
 
 
 
Commodity derivatives
$
352,259

 
$
405,619

The following summarizes the fair value of derivatives outstanding on a gross basis:
 
 
December 31,
 
 
2012
 
2011
 
 
(in thousands)
Assets:
 
 
 
 
Commodity derivatives
 
$
1,282,390

 
$
880,175

Liabilities:
 
 
 
 
Commodity derivatives
 
$
405,619

 
$
320,835