Derivatives	9 Months Ended
Sep. 30, 2014
Derivatives
DERIVATIVES	NOTE 4.DERIVATIVES Objective & Strategy We only occasionally hedge our oil and gas production, and, when we do so, the volumes are usually insignificant. Cash-Flow Hedges We entered into financial swap agreements in November 2012 for the sale of a portion of our natural gas production. These swap agreements hedged 50 MMcf of natural gas per day beginning in January 2013 and extending through March 2014 and qualified as cash-flow hedges. The weighted-average strike price of these swaps was $4.30. The gross and net fair values of these derivatives as of December 31, 2013 were not material, as determined using Level 2 inputs in the fair value hierarchy. There were no cash-flow hedges as of September 30, 2014. The after-tax gains and losses recognized in, and reclassified to income from, Accumulated Other Comprehensive Income (AOCI) for derivative instruments classified as cash-flow hedges for the nine month periods ended September 30, 2014 and 2013, and the ending AOCI balances for each period were not material. The gains and losses reclassified to income were recognized in net sales, and the amount of the ineffective portion of cash-flow hedges was immaterial for the nine months ended September 30, 2014 and 2013. There were no fair value hedges as of and during the three and nine month periods ended September 30, 2014 and 2013.

Derivatives

9 Months Ended

Sep. 30, 2014

NOTE 4.DERIVATIVES

Objective & Strategy

We only occasionally hedge our oil and gas production, and, when we do so, the volumes are usually insignificant.

Cash-Flow Hedges

We entered into financial swap agreements in November 2012 for the sale of a portion of our natural gas production. These swap agreements hedged 50 MMcf of natural gas per day beginning in January 2013 and extending through March 2014 and qualified as cash-flow hedges. The weighted-average strike price of these swaps was $4.30. The gross and net fair values of these derivatives as of December 31, 2013 were not material, as determined using Level 2 inputs in the fair value hierarchy. There were no cash-flow hedges as of September 30, 2014.

The after-tax gains and losses recognized in, and reclassified to income from, Accumulated Other Comprehensive Income (AOCI) for derivative instruments classified as cash-flow hedges for the nine month periods ended September 30, 2014 and 2013, and the ending AOCI balances for each period were not material. The gains and losses reclassified to income were recognized in net sales, and the amount of the ineffective portion of cash-flow hedges was immaterial for the nine months ended September 30, 2014 and 2013.

There were no fair value hedges as of and during the three and nine month periods ended September 30, 2014 and 2013.