Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Financial Instruments

Schedule of oil derivative contracts

			Weighted Average Dated Brent Price per Bbl
Term	Type of Contract	MBbl	Deferred Premium		Floor		Ceiling		Call
2013:
July - December	Three-way collars	750	$	4.82	$	95.00	$	105.00	$	125.00
July - December	Three-way collars	506	—		87.50		115.00		135.00
July - December	Three-way collars	500	—		90.00		115.39		135.00
July - December	Three-way collars	500	—		90.08		115.00		135.00
2014:
January - December	Three-way collars	1,500	1.22		85.00		115.00		140.00
January - December	Three-way collars	1,000	—		85.00		115.01		140.00

Schedule of interest rate swaps derivative contracts

Term	Weighted Average Notional Amount		Weighted Average Fixed Rate		Floating Rate
	(In thousands)
July 2013 — December 2013	$	200,617	1.99	%	6-month LIBOR
January 2014 — December 2014	133,434		1.99	%	6-month LIBOR
January 2015 — December 2015	45,319		2.03	%	6-month LIBOR
January 2016 — June 2016	12,500		2.27	%	6-month LIBOR

Schedule of derivative instruments by balance sheet location

		Estimated Fair Value Asset (Liability)
		June 30,			December 31,
Type of Contract	Balance Sheet Location	2013			2012
		(In thousands)
Derivatives not designated as hedging instruments:
Derivative assets:
Commodity(1)	Derivatives assets—current	$	1,254		$	1,061
Commodity (2)	Derivatives assets—long-term	2,135			—
Derivative liabilities:
Commodity(3)	Derivatives liabilities—current	(4,330		)	(17,005		)
Interest rate	Derivatives liabilities—current	(2,670		)	(3,372		)
Commodity(4)	Derivatives liabilities—long-term	—			(659		)
Interest rate	Derivatives liabilities—long-term	(1,202		)	(2,567		)
Total derivatives not designated as hedging instruments		$	(4,813	)	$	(22,542	)

(1) The commodity derivative asset represents $1.3 million of our oil derivative contracts as of June 30, 2013 and $1.1 million of our provisional oil sales contract as of December 31, 2012.

(2) Includes deferred premiums of $1.1 million related to commodity derivative contracts as of June 30, 2013.

(3) Includes $0.6 million and $3.4 million, as of June 30, 2013 and December 31, 2012, respectively of cash settlements made on our commodity derivative contracts which were settled in the month subsequent to period end. Also, includes deferred premiums of $5.0 million and $7.6 million related to commodity derivative contracts as of June 30, 2013 and December 31, 2012, respectively.

(4) Includes deferred premiums of $2.4 million related to commodity derivative contracts as of December 31, 2012.

Schedule of derivative instruments by location of gain/(loss)

		Amount of Gain/(Loss)						Amount of Gain/(Loss)
		Three Months Ended June 30,						Six Months Ended June 30,
Type of Contract	Location of Gain/(Loss)	2013			2012			2013			2012
		(In thousands)
Derivatives in cash flow hedging relationships:
Interest rate(1)	Interest expense	$	358		$	(214	)	$	717		$	(428	)
Total derivatives in cash flow hedging relationships		$	358		$	(214	)	$	717		$	(428	)
Derivatives not designated as hedging instruments:
Commodity(2)	Oil and gas revenue	$	(9,252	)	$	987		$	(4,664	)	$	3,727
Commodity	Derivatives, net	12,707			1,982			7,199			(1,878		)
Interest rate	Interest expense	23			(725		)	50			(1,435		)
Total derivatives not designated as hedging instruments		$	3,478		$	2,244		$	2,585		$	414

(1) Amounts were reclassified from AOCI into earnings upon settlement.

(2) Amounts represent the mark-to-market portion of our provisional oil sales contracts.