Derivative And Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Derivative And Financial Instruments

Summary Of Derivative Contracts In Place

MTM Fixed Price Swaps – NYMEX (Henry Hub)

	For the Year Ended December 31, (volume in MMBtu)
	March 31,			June 30,			September 30,			December 31,			Total
		Average			Average			Average			Average			Average
	Volume	Price		Volume	Price		Volume	Price		Volume	Price		Volume	Price
2017	309,181	$	5.42	287,439	$	5.45	271,368	$	5.45	257,234	$	5.45	1,125,222	$	5.44
2018	260,841	$	3.18	248,018	$	3.18	235,810	$	3.18	225,208	$	3.18	969,877	$	3.18
2019	224,303	$	3.10	214,186	$	3.10	205,533	$	3.10	197,455	$	3.10	841,477	$	3.10
2020	188,696	$	2.85	176,946	$	2.85	170,637	$	2.85	164,747	$	2.85	701,026	$	2.85
													3,637,602

MTM Fixed Price Basis Swaps – West Texas Intermediate (WTI)

	For the Year Ended December 31, (volume in Bbls)
	March 31,			June 30,			September 30,			December 31,			Total
		Average			Average			Average			Average			Average
	Volume	Price		Volume	Price		Volume	Price		Volume	Price		Volume	Price
2017	102,339	$	61.03	94,005	$	61.25	87,304	$	61.42	81,702	$	61.55	365,350	$	61.30
2018	88,854	$	60.82	83,976	$	60.90	79,683	$	60.96	75,864	$	61.02	328,377	$	60.92
2019	78,667	$	61.48	75,326	$	61.53	72,279	$	61.57	69,480	$	61.61	295,752	$	61.54
2020	66,914	$	53.50	64,477	$	53.50	62,251	$	53.50	60,224	$	53.50	253,866	$	53.50
													1,243,345

Fair Value for Risk Management Assets and Liabilities

The following table sets forth a reconciliation of the changes in fair value of the Partnership’s commodity derivatives for the years ended December 31, 2016 and 2015 (in thousands):

	December 31,
	2016		2015
Beginning fair value of commodity derivatives	$	31,018	$	22,829
Net gains (losses) on crude oil derivatives		(8,355)		22,410
Net gains on natural gas derivatives		1,116		6,148
Net settlements on derivative contracts:
Crude oil		(13,622)		(13,191)
Natural gas		(6,919)		(7,178)
Net premiums on derivative contracts		3,197		—
Ending fair value of commodity derivatives	$	6,435	$	31,018

Schedule Of Effect Of Derivative Instruments On Consolidated Statements Of Operations

The effect of derivative instruments on our consolidated statements of operations was as follows (in thousands):

	Location of Gain(Loss)	Year Ended  December 31,
Derivative Type	in Income	2016		2015
Commodity – Mark-to-Market	Oil sales	$	(8,355)	$	19,146
Commodity – Mark-to-Market	Natural gas sales		1,116		6,003
		$	(7,239)	$	25,149

Reconciliation Of Changes In Fair Value Of Embedded Derivative

The following table sets forth a reconciliation of the changes in fair value of the Partnership’s embedded derivative for the years ended December 31, 2016 and 2015 (in thousands):

	December 31,
	2016		2015
Beginning fair value of embedded derivative	$	(193,077)	$	—
Initial fair value of embedded derivative - bifurcated from mezzanine equity		—		(183,095)
Gain (loss) on embedded derivative		47,794		(9,982)
Transfer to mezzanine equity		145,283		—
Ending fair value of embedded derivative	$	—	$	(193,077)