Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of outstanding commodity derivatives

As of September 30, 2016, the Company’s fixed price natural gas and NGLs swap contracts from October 1, 2016 through December 31, 2022 were as follows (abbreviations in the table refer to the index to which the swap position is tied, as follows: TCO=Columbia Gas Transmission; NYMEX=Henry Hub; CGTLA=Columbia Gas Louisiana Onshore; CCG=Chicago City Gate; Mont Belvieu-Ethane=Mont Belvieu Purity Ethane; Mont Belvieu-Propane=Mont Belvieu Propane; NYMEX-WTI=West Texas Intermediate):


	Natural gas MMbtu/day	Oil Bbls/day	Natural Gas Liquids Bbls/day	Weighted average index price
Three months ending December 31, 2016:
TCO ($/MMBtu)	60,000		—	$	5.01
Dominion South ($/MMBtu)	272,500		—	$	5.47
NYMEX ($/MMBtu)	1,110,000		—	$	3.57
CGTLA ($/MMBtu)	170,000		—	$	4.20
Mont Belvieu-Propane ($/Gallon)	—		30,000	$	0.61
Total	1,612,500		30,000
Year ending December 31, 2017:
NYMEX ($/MMBtu)	1,370,000	—	—	$	3.39
CGTLA ($/MMBtu)	420,000	—	—	$	4.27
CCG ($/MMBtu)	70,000	—	—	$	4.57
NYMEX-WTI ($/Bbl)	—	1,000	—	$	51.90
Mont Belvieu-Ethane ($/Gallon)	—	—	20,000	$	0.25
Mont Belvieu-Propane ($/Gallon)	—	—	27,500	$	0.39
Total	1,860,000	1,000	47,500
Year ending December 31, 2018:
NYMEX ($/MMBtu)	2,002,500		—	$	3.91
Mont Belvieu-Propane ($/Gallon)	—		2,000	$	0.65
Total	2,002,500		2,000
Year ending December 31, 2019:
NYMEX ($/MMBtu)	2,330,000			$	3.70
Year ending December 31, 2020:
NYMEX ($/MMBtu)	1,377,500			$	3.66
Year ending December 31, 2021:
NYMEX ($/MMBtu)	660,000			$	3.35
Year ending December 31, 2022:
NYMEX ($/MMBtu)	470,000			$	3.26

Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes


	December 31, 2015			September 30, 2016
	Balance sheet location	Fair value		Balance sheet location	Fair value
		(In thousands)			(In thousands)
Asset derivatives not designated as hedges for accounting purposes:
Commodity contracts	Current assets	$	1,009,030	Current assets	$	417,605
Commodity contracts	Long-term assets		2,108,450	Long-term assets		2,015,090

Total asset derivatives			3,117,480			2,432,695

Liability derivatives not designated as hedges for accounting purposes:
Commodity contracts	Current liabilities		—	Current liabilities		3,110
Commodity contracts	Long-term liabilities		—	Long-term liabilities		40

Total liability derivatives			—			3,150

Net derivatives		$	3,117,480		$	2,429,545

Schedule of gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts

The following table presents the gross amounts of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets as of the dates presented, all at fair value (in thousands):


	December 31, 2015						September 30, 2016
	Gross amounts on balance sheet		Gross amounts offset on balance sheet		Net amounts of assets on balance sheet		Gross amounts on balance sheet		Gross amounts offset on balance sheet		Net amounts of assets (liabilities) on balance sheet
Commodity derivative assets	$	3,163,639		(46,159)		3,117,480	$	2,578,640		(145,945)		2,432,695
Commodity derivative liabilities	$	—		—		—	$	(3,183)		33		(3,150)

Summary of derivative fair value gains (losses)

The following is a summary of derivative fair value gains and where such values are recorded in the condensed consolidated statements of operations for the three and nine months ended September 30, 2015 and 2016 (in thousands):


	Statement of operations	Three months ended September 30,				Nine months ended September 30,
	location	2015		2016		2015		2016
Commodity derivative fair value gains	Revenue	$	1,079,071		530,334	$	1,836,398		125,624

TCOminusNYMEX

Tabular disclosure of commodity derivatives basis differential positions which settle on the pricing index to basis differential of Columbia Gas (TCO) to the NYMEX Henry Hub natural gas price.

NYMEXminusTCO

Tabular disclosure of pertinent information about commodity derivatives basis differential positions which settle on the pricing index to basis differential of Columbia Gas (TCO) to the NYMEX Henry Hub natural gas price

Natural gas
MMbtu/day

Hedged
Differential

Three months ending December 31, 2016:

Year ending December 31, 2017: