XML 56 R30.htm IDEA: XBRL DOCUMENT v2.4.1.9
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding derivative instruments
The following table summarizes our crude oil derivatives outstanding as of December 31, 2014: 
 
 
 
 
Weighted average fixed price per Bbl
Period and type of contract
 
Volume
MBbls
 
Swaps
 
Sold puts
 
Purchased puts
 
Sold calls
 
Average Premium
2015
 
 
 
 
 
 
 
 
 
 
 
 
Swaps
 
600

 
$
96.02

 
$
—

 
$
—

 
$
—

 
$
—

Swaps with deferred premium (1)
 
6,058

 
$
92.92

 
$
—

 
$
—

 
$
—

 
$
14.06

2016
 
 
 
 
 
 
 
 
 
 
 
 
Three-way collars
 
240

 
$
—

 
$
84.00

 
$
92.00

 
$
101.01

 
$
—

Enhanced swaps (2)
 
3,720

 
$
92.94

 
$
80.52

 
$
—

 
$
—

 
$
—

Purchased puts (2)
 
3,720

 
$
—

 
$
—

 
$
60.00

 
$
—

 
$
5.54

____________
(1)
Prior to December 8, 2014, we had outstanding swaps scheduled to mature in 2015 for 5,548,000 barrels of crude oil production that had an associated sold put at $80/barrel and a purchased put at $60/barrel. We also had outstanding swaps scheduled to mature in 2015 for 510,000 barrels of crude oil production that had an associated sold put at $80/barrel and no associated purchased put. On December 8, 2014, we entered into offsetting positions to the sold put and purchased put legs of the swaps described above, effectively terminating those puts and ending with a swap on the associated volumes. Payment of $83,951 for the premiums on the offsetting positions has been deferred until 2015 to coincide with the maturity of the swaps. Premiums of $1,220 were also deferred on the initial $60 purchased puts that are now offset. This results in a total of $85,171 or $14.06 per barrel of deferred premiums related to the above 6,058,000 barrels of crude oil. As a result of offsetting the puts and deferring payment, we now have the above 6,058,000 barrels of crude oil production hedged in 2015 at an effective price of $78.86/barrel.
(2)
Total premiums of $20,609 for the purchased puts were paid at contract inception in December 2014. Excluding the premiums and utilizing an average NYMEX strip price of $62.63 for 2016 as of December 31, 2014, the average realized price from our 3,720,000 barrels of hedged production that have associated sold puts and purchased puts is $75.05/barrel. In the event of further declines in crude oil prices below $60.00/barrel, the purchase of these put options allows us to establish a floor on the realized price for these hedged volumes of $72.42/barrel.
The following tables summarize our natural gas derivative instruments outstanding as of December 31, 2014: 
Period and type of contract
 
Volume
BBtu
 
Weighted
average
fixed price
per MMBtu
2015
 
 
 
 
Natural gas swaps
 
19,770

 
$
4.20

Natural gas basis protection swaps
 
14,400

 
$
0.24

2016
 
 
 
 
Natural gas swaps
 
14,400

 
$
4.18

Natural gas basis protection swaps
 
8,400

 
$
0.36
Derivative instruments recorded on the balance sheet at fair value
The estimated fair values of derivative instruments are provided below. The carrying amounts of these instruments are equal to the estimated fair values. 
 
As of December 31, 2014
 
As of December 31, 2013
 
Assets
 
Liabilities
 
Net value
 
Assets
 
Liabilities
 
Net value
Natural gas swaps
$
32,939

 
$
—

 
$
32,939

 
$
1,457

 
$
(3,706
)
 
$
(2,249
)
Oil swaps
23,465

 
—

 
23,465

 
112

 
(2,807
)
 
(2,695
)
Oil collars
1,175

 
—

 
1,175

 
2,776

 
(4
)
 
2,772

Oil enhanced swaps
100,724

 
—

 
100,724

 
6,988

 
(6,212
)
 
776

Oil put options
93,268

 
—

 
93,268

 
74

 
—

 
74

Natural gas basis differential swaps
292

 
(309
)
 
(17
)
 
1,706

 
(63
)
 
1,643

Total derivative instruments
251,863

 
(309
)
 
251,554

 
13,113

 
(12,792
)
 
321

Less:
 
 
 
 
 
 
 
 
 
 
 
Netting adjustments (1)
232

 
(232
)
 
—

 
4,558

 
(4,558
)
 
—

Current portion asset (liability)
179,921

 
(77
)
 
179,844

 
2,152

 
(8,234
)
 
(6,082
)
 
$
71,710

 
$
—

 
$
71,710

 
$
6,403

 
$
—

 
$
6,403

___________
(1)
Amounts represent the impact of master netting agreements that allow us to net settle positive and negative positions with the same counterparty. Positive and negative positions with a counterparty are netted only to the extent that they relate to the same current versus noncurrent classification on the balance sheet.
Derivative settlements outstanding
Derivative settlements outstanding were as follows at December 31: 
 
2014
 
2013
Derivative settlements receivable included in accounts receivable
$
19,678

 
$
4,616

Derivative settlements payable included in accounts payable and accrued liabilities
$
—

 
$
377
Non-hedge derivative gains (losses) in the consolidated statements of operations
Non-hedge derivative gains (losses) in the consolidated statements of operations are comprised of the following: 
 
 
2014
 
2013
 
2012
Change in fair value of commodity price swaps
 
$
59,627

 
$
(20,717
)
 
$
(8,440
)
Change in fair value of collars
 
(1,597
)
 
(23,459
)
 
21,182

Change in fair value of enhanced swaps and put options
 
172,533

 
186

 
—

Change in fair value of natural gas basis differential contracts
 
(1,660
)
 
3,242

 
(331
)
Receipts from (payments on) settlement of commodity price swaps
 
(6,607
)
 
5,122

 
28,716

Receipts from settlement of collars
 
7,382

 
14,548

 
10,229

Receipts from settlement of commodity enhanced swaps and put options
 
2,221

 
—

 
—

Payments on settlement of natural gas basis differential contracts
 
(579
)
 
(557
)
 
(1,671
)
 
 
$
231,320

 
$
(21,635
)
 
$
49,685