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Derivatives (Tables)
 12 Months Ended
Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents derivative positions for the periods indicated as of December 31, 2015:
 
2016
 
2017
 
2018
Natural gas positions:
 
 
 
 
 
Fixed price swaps (NYMEX Henry Hub):
 
 
 
 
 
Hedged volume (MMMBtu)
121,841

 
120,122

 
36,500

Average price ($/MMBtu)
$
4.20

 
$
4.26

 
$
5.00

Put options (NYMEX Henry Hub):
 
 
 
 
 
Hedged volume (MMMBtu)
76,269

 
66,886

 
—

Average price ($/MMBtu)
$
5.00

 
$
4.88

 
$
—

Oil positions:
 
 
 
 
 
Fixed price swaps (NYMEX WTI): (1)
 
 
 
 
 
Hedged volume (MBbls)
11,465

 
4,755

 
—

Average price ($/Bbl)
$
90.56

 
$
89.02

 
$
—

Put options (NYMEX WTI):
 
 
 
 
 
Hedged volume (MBbls)
3,271

 
384

 
—

Average price ($/Bbl)
$
90.00

 
$
90.00

 
$
—

Natural gas basis differential positions: (2)
 
 
 
 
 
Panhandle basis swaps: (3)
 
 
 
 
 
Hedged volume (MMMBtu)
59,954

 
59,138

 
16,425

Hedged differential ($/MMBtu)
$
(0.32
)
 
$
(0.33
)
 
$
(0.33
)
 
2016
 
2017
 
2018
NWPL Rockies basis swaps: (3)
 
 
 
 
 
Hedged volume (MMMBtu)
65,794

 
38,880

 
10,804

Hedged differential ($/MMBtu)
$
(0.24
)
 
$
(0.19
)
 
$
(0.19
)
MichCon basis swaps: (3)
 
 
 
 
 
Hedged volume (MMMBtu)
7,768

 
7,437

 
2,044

Hedged differential ($/MMBtu)
$
0.05

 
$
0.05

 
$
0.05

Houston Ship Channel basis swaps: (3)
 
 
 
 
 
Hedged volume (MMMBtu)
34,364

 
36,730

 
986

Hedged differential ($/MMBtu)
$
(0.02
)
 
$
(0.02
)
 
$
(0.08
)
Permian basis swaps: (3)
 
 
 
 
 
Hedged volume (MMMBtu)
2,975

 
2,629

 
1,314

Hedged differential ($/MMBtu)
$
(0.20
)
 
$
(0.20
)
 
$
(0.20
)
SoCal basis swaps: (4)
 
 
 
 
 
Hedged volume (MMMBtu)
32,940

 
—

 
—

Hedged differential ($/MMBtu)
$
(0.03
)
 
$
—

 
$
—

Oil timing differential positions:
 
 
 
 
 
Trade month roll swaps (NYMEX WTI): (5)
 
 
 
 
 
Hedged volume (MBbls)
2,652

 
2,654

 
—

Hedged differential ($/Bbl)
$
0.25

 
$
0.25

 
$
—

(1) 
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 the year ending December 31, 2018, and $90.00 per Bbl for the year ending December 31, 2019, at counterparty election on a designated date in each respective preceding year. The extension for each year is exercisable without respect to the other years.
(2) 
Settle on the respective pricing index to hedge basis differential to the NYMEX Henry Hub natural gas price.
(3) 
For positions which hedge exposure to differentials in producing areas, the Company receives the NYMEX Henry Hub natural gas price plus the respective spread and pays the specified index price. Cash settlements are made on a net basis.
(4) 
For positions which hedge exposure to differentials in consuming areas, the Company pays the NYMEX Henry Hub natural gas price plus the respective spread and receives the specified index price. Cash settlements are made on a net basis.
(5) 
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 WTI price 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 following table summarizes the fair value of derivatives outstanding on a gross basis:
 
December 31,
 
2015
 
2014
 
(in thousands)
Assets:
 
 
 
Commodity derivatives
$
1,812,375

 
$
2,014,815

Liabilities:
 
 
 
Commodity derivatives
$
28,842

 
$
90,260
Derivative Instruments, Gain (Loss)
A summary of gains and losses on derivatives included on the consolidated statements of operations is presented below:
 
Year Ended December 31,
 
2015
 
2014
 
2013
 
(in thousands)
 
 
 
 
 
 
Gains on oil and natural gas derivatives
$
1,056,189

 
$
1,206,179

 
$
177,857

Lease operating expenses (1)
6,893

 
—

 
—

Total gains on oil and natural gas derivatives
$
1,063,082

 
$
1,206,179

 
$
177,857

(1) 
Consists of gains and (losses) on derivatives used to hedge exposure to differentials in consuming areas, which were entered into in March 2015.