Fair Value Measurements of Financial Instruments

3 Months Ended

Mar. 31, 2015

Fair Value Measurements of Financial Instruments

Fair Value Measurements of Financial Instruments

4. Fair Value Measurements of Financial Instruments

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Derivative Instruments

Commodity derivative contracts reflected in the condensed consolidated balance sheets are recorded at estimated fair value. At March 31, 2015 and December 31, 2014, all of the Company’s commodity derivative contracts were with seven bank counterparties and were classified as Level 2 in the fair value input hierarchy.

Derivative instruments listed below are presented gross and include swaps that are carried at fair value. The Company records the net change in the fair value of these positions in “Gains (losses) on commodity derivative contracts — net” in the Company’s unaudited condensed consolidated statements of operations.

	Fair Value Measurements at March 31, 2015
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Assets:
Commodity derivative oil swaps	$	—	$	79,344	$	—	$	79,344
Commodity derivative gas swaps	—		16,129		—		16,129
Total assets	$	—	$	95,473	$	—	$	95,473
Liabilities:
Commodity derivative oil swaps	$	—	$	—	$	—	$	—
Commodity derivative gas swaps	—		—		—		—
Total liabilities	$	—	$	—	$	—	$	—

	Fair Value Measurements at December 31, 2014
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Assets:
Commodity derivative oil swaps	$	—	$	106,450	$	—	$	106,450
Commodity derivative gas swaps	—		20,259		—		20,259
Total assets	$	—	$	126,709	$	—	$	126,709
Liabilities:
Commodity derivative oil swaps	$	—	$	—	$	—	$	—
Commodity derivative gas swaps	—		—		—		—
Total liabilities	$	—	$	—	$	—	$	—