Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities

The following table sets forth the volumes in barrels underlying the Company’s outstanding oil derivative contracts and the weighted average Dated Brent prices per Bbl for those contracts as of December 31, 2016. Volumes are net of any offsetting derivative contracts entered into.


			Weighted Average Dated Brent Price per Bbl
			Net Deferred
			Premium
Term	Type of Contract	MBbl	Payable		Swap		Sold Put		Floor		Ceiling		Call
2017:
January — December	Swap with puts/calls	2,000	$	2.13	$	72.50	$	55.00	$	—	$	—	$	90.00
January — December	Swap with puts	2,000		—		64.95		50.00		—		—		—
January — December	Three-way collars	3,002		2.29		—		30.00		45.00		57.50		—
January — December	Sold calls(1)	2,000		—		—		—		—		85.00		—
2018:
January — December	Three-way collars	2,913	$	0.74	$	—	$	41.57	$	56.57	$	65.90	$	—
January — December	Sold calls(1)	2,000		—		—		—		—		65.00		—
2019:
January — December	Sold calls(1)	913	$	—	$	—	$	—	$	—	$	80.00	$	—

(1)

Represents call option contracts sold to counterparties to enhance other derivative positions.

Schedule of interest rate derivative contracts

The following table summarizes our capped interest rate swaps whereby we pay a fixed rate of interest if LIBOR is below the cap, and pay the market rate less the spread between the cap (sold call) and the fixed rate of interest if LIBOR is above the cap as of December 31, 2016:

Weighted Average

Term

Type of Contract

Floating Rate

Notional

Swap

Sold Call

(In thousands)

January 2017 — December 2018

Capped swap

1-month LIBOR

200,000

1.23

3.00

Schedule of derivative instruments by balance sheet location


		Estimated Fair Value
		Asset (Liability)
		December 31,
Type of Contract	Balance Sheet Location	2016		2015
		(In thousands)
Derivatives not designated as hedging instruments:
Derivative assets:
Commodity(1)	Derivatives assets—current	$	31,698	$	182,640
Commodity(2)	Derivatives assets—long-term		3,226		59,197
Interest rate	Derivatives assets—long-term		582		659
Derivative liabilities:
Commodity(3)	Derivatives liabilities—current		(19,163)		—
Interest rate	Derivatives liabilities—current		(529)		(1,155)
Commodity(4)	Derivatives liabilities—long-term		(14,123)		(4,196)
Total derivatives not designated as hedging instruments		$	1,691	$	237,145

(1)

Includes net deferred premiums payable of $3.9 million and $6.2 million related to commodity derivative contracts as of December 31, 2016 and 2015, respectively.

(2)

Includes net deferred premiums payable of $2.5 million and $6.9 million related to commodity derivative contracts as of December 31, 2016 and 2015, respectively.

(3)

Includes $30.9 thousand and zero as of December 31, 2016 and December 31, 2015, respectively which represents our provisional oil sales contract. Also, includes net deferred premiums payable of $6.2 million and zero related to commodity derivative contracts as of December 31, 2016 and 2015, respectively.

(4)

Includes net deferred premiums payable of $0.6 million and zero related to commodity derivative contracts as of December 31, 2016 and 2015, respectively.

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


		Amount of Gain/(Loss)
		Years Ended December 31,
Type of Contract	Location of Gain/(Loss)	2016		2015		2014
		(In thousands)
Derivatives in cash flow hedging relationships:
Interest rate(1)	Interest expense	$	—	$	767	$	1,391
Total derivatives in cash flow hedging relationships		$	—	$	767	$	1,391
Derivatives not designated as hedging instruments:
Commodity(2)	Oil and gas revenue	$	2,538	$	3	$	(11,661)
Commodity	Derivatives, net		(48,021)		210,649		281,853
Interest rate	Interest expense		(1,076)		(462)		(285)
Total derivatives not designated as hedging instruments		$	(46,559)	$	210,190	$	269,907

(1)

Amounts were reclassified from AOCI into earnings upon settlement.

(2)

Amounts represent the change in fair value of our provisional oil sales contracts.