Risk Management and Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Risk Management and Derivative Instruments

Schedule of entity's open commodity derivative contract positions

As of June 30, 2013, the Company had the following open commodity derivative contract positions:

	Hedged Volume	Weighted-Average Fixed Price
Oil (Bbls):
WTI Swaps — 2013	2,172,214				$	94.12
WTI Swaps — 2014	4,344,450				$	88.76
WTI Swaps — 2015	1,820,000				$	86.55
WTI Collars — 2013	101,502	$	85.27	-	$	100.70
WTI Collars — 2014	164,400	$	88.49	-	$	97.94
WTI to LLS Basis Differential Swaps — 2013 (1)	743,794				$	5.78
WTI to LLS Basis Differential Swaps — 2014 (1)	501,000				$	5.35
Natural Gas (Mmbtu):
Swaps — 2013 (2)	7,360,000				$	4.09
Swaps — 2014	9,125,000				$	4.23
Collars — 2013	1,116,498	$	3.68	-	$	4.91
Collars — 2014	1,685,004	$	3.99	-	$	5.09
NGL (Bbls):
NGL Swaps — 2013	129,000				$	63.42
NGL Swaps — 2014	151,500				$	62.16

(1) The Company enters into swap arrangements intended to fix the positive differential between the Louisiana Light Sweet (“LLS”) pricing and West Texas Intermediate (“NYMEX WTI”) pricing.

(2) Includes 1,240,000 Mmbtu that priced in the second quarter of 2013, but have yet to be cash settled.

Schedule of location and fair values amounts of all derivative instruments as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited condensed consolidated balance sheets

The following table summarizes the gross fair values of derivative instruments by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s condensed consolidated balance sheets at June 30, 2013 and December 31, 2012, respectively (in thousands):

Type	Balance Sheet Location (1)	June 30, 2013			December 31, 2012
Oil Swaps	Derivative financial instruments — Current Assets	$	8,805		$	16,004
Oil Swaps	Derivative financial instruments — Non-Current Assets	2,623			129
Oil Swaps	Derivative financial instruments — Current Liabilities	(16,872		)	(11,485		)
Oil Swaps	Derivative financial instruments — Non-Current Liabilities	(558		)	(3,606		)
NGL Swaps	Derivative financial instruments — Current Assets	3,031			1,624
NGL Swaps	Derivative financial instruments — Non-Current Assets	430			729
NGL Swaps	Derivative financial instruments — Current Liabilities	—			(336		)
NGL Swaps	Derivative financial instruments — Non-Current Liabilities	—			(122		)
Gas Swaps	Derivative financial instruments — Current Assets	4,473			—
Gas Swaps	Derivative financial instruments — Non-Current Assets	1,197			—
Gas Swaps	Derivative financial instruments — Current Liabilities	—			—
Gas Swaps	Derivative financial instruments — Non-Current Liabilities	—			—
Oil Collars	Derivative financial instruments — Current Assets	206			221
Oil Collars	Derivative financial instruments — Non-Current Assets	282			207
Oil Collars	Derivative financial instruments — Current Liabilities	(118		)	(238		)
Oil Collars	Derivative financial instruments — Non-Current Liabilities	—			(49		)
Gas Collars	Derivative financial instruments — Current Assets	1,169			1,129
Gas Collars	Derivative financial instruments — Non-Current Assets	370			897
Gas Collars	Derivative financial instruments — Current Liabilities	(48		)	(112		)
Gas Collars	Derivative financial instruments — Non-Current Liabilities	—			(73		)
Basis Differential Swaps	Derivative financial instruments — Current Assets	147			2,625
Basis Differential Swaps	Derivative financial instruments — Non-Current Assets	—			36
Basis Differential Swaps	Derivative financial instruments — Current Liabilities	(670		)	(11,319		)
Basis Differential Swaps	Derivative financial instruments — Non-Current Liabilities	(208		)	(374		)
Total		$	4,259		$	(4,113	)

(1) The fair value of derivative instruments reported in the Company’s condensed consolidated balance sheets are subject to netting arrangements and qualify for net presentation. The following table summarizes the location and fair value amounts of all derivative instruments in the unaudited condensed consolidated balance sheets, as well as the gross recognized derivative assets, liabilities and amounts offset in the unaudited condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012, respectively (in thousands):

		June 30, 2013
Not Designated as ASC 815 Hedges:	Balance Sheet Classification	Gross Recognized Assets/ Liabilities		Gross Amounts Offset		Net Recognized Fair Value Assets/ Liabilities
Derivative assets:
Commodity contracts	Derivative financial instruments - current	$	17,831	$	8,825	$	9,006
Commodity contracts	Derivative financial instruments - noncurrent	4,902		271		4,631
		$	22,733	$	9,096	$	13,637
Derivative liabilities:
Commodity contracts	Derivative financial instruments - current	$	17,708	$	8,825	$	8,883
Commodity contracts	Derivative financial instruments - noncurrent	766		271		495
		$	18,474	$	9,096	$	9,378

		December 31, 2012
Not Designated as ASC 815 Hedges:	Balance Sheet Classification	Gross Recognized Assets/ Liabilities		Gross Amounts Offset		Net Recognized Fair Value Assets/ Liabilities
Derivative assets:
Commodity contracts	Derivative financial instruments - current	$	21,603	$	15,908	$	5,695
Commodity contracts	Derivative financial instruments - noncurrent	1,998		281		1,717
		$	23,601	$	16,189	$	7,412
Derivative liabilities:
Commodity contracts	Derivative financial instruments - current	$	23,490	$	15,908	$	7,582
Commodity contracts	Derivative financial instruments - noncurrent	4,224		281		3,943
		$	27,714	$	16,189	$	11,525

Schedule of net losses and unrealized net gains (losses) recorded by the entity related to the change in fair value of the derivative instruments in "Losses on commodity derivative contracts - net" for the periods

The following table presents realized net losses and unrealized net gains (losses) recorded by the Company related to the change in fair value of the derivative instruments in “Gains on commodity derivative contracts — net” for the periods presented (in thousands):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2012			2013			2012
Realized net gains (losses)	$	(1,071	)	$	(5,180	)	$	(6,075	)	$	(11,679	)
Unrealized net gains (losses)	23,492			53,323			8,372			35,157