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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2014
Text Block [Abstract]  
Outstanding Trading Contracts
As of December 31, 2014 and December 31, 2013, we had the following outstanding trading contracts, which we accounted for as derivatives:
 
 
Quantity in
 
Estimated Market
 
Weighted Average
At December 31, 2014
Gallons
 
Prices
 
Contract Prices
Forward Contracts
 
 
 
 
 
Sale
4,200,000

 
 $0.5400 - $0.7900
 
$
0.6714

Purchase
4,201,000

 
$0.4700 - $1.3176
 
$
0.6416



Estimated market prices and weighted average contract prices are in dollars per gallon. All contracts expire by the end of the first quarter of 2015.

At December 31, 2013
Quantity in
Gallons
 
Estimated Market
Prices
 
Weighted Average Contract Prices
Forward Contracts
 
 
 
 
 
Sale
1,892,000

 
 $0.9900 - $1.4750
 
$
1.2786

Purchase
1,991,000

 
$0.9411 - $1.4600
 
$
1.2444
Fair Values of Derivative Contracts Recorded in Consolidated Balance Sheets
Fair values of the derivative contracts recorded in the consolidated balance sheets as of December 31, 2014 and 2013, are as follows:
 
Asset Derivatives
 
 
 
Fair Value As Of
(in thousands)
Balance Sheet Location
 
December 31, 2014
 
December 31, 2013
Derivatives not designated as hedging instruments
 
 
 
 
 
Forward contracts
Mark-to-market energy assets
 
$
407

 
$
196

Call option
Mark-to-market energy assets
 
—

 
169

Derivatives designated as fair value hedges
 
 
 
 
 
Put options
Mark-to-market energy assets
 
622

 
20

Derivatives designated as cash flow hedges
 
 
 
 
 
Call options
Mark-to-market energy assets
 
26

 
—

Total asset derivatives
 
 
$
1,055

 
$
385

 

 
Liability Derivatives
 
 
 
Fair Value As Of
(in thousands)
Balance Sheet Location
 
December 31, 2014
 
December 31, 2013
Derivatives not designated as hedging instruments
 
 
 
 
 
Forward contracts
Mark-to-market energy liabilities
 
$
283

 
$
127

Propane swap agreements
Mark-to-market energy liabilities
 
735

 
—

Total liability derivatives
 
 
$
1,018

 
$
127
Effects of Gains and Losses from Derivative Instruments
The effects of gains and losses from derivative instruments are as follows:

 
Amount of Gain (Loss) on Derivatives:
  
Location of Gain
(Loss) on Derivatives
 
For the Year Ended December 31,
(in thousands)
2014
 
2013
 
2012
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Realized gain on forward contracts and options (1)
Revenue
 
$
1,423

 
$
1,127

 
$
2,695

Unrealized gain (loss) on forward contracts (1)
Revenue
 
57

 
217

 
(339
)
Call Options
Cost of Sales
 
—

 
97

 
—

Propane swap agreements
Cost of Sales
 
(735
)
 
—

 
—

Derivatives designated as fair value hedges:
 
 
 
 
 
 
 
Put/Call Option
Cost of Sales
 
235

 
(28
)
 
27

Put/Call Option (2)
Propane Inventory
 
517

 
(100
)
 
(40
)
Derivatives designated as cash flow hedges
 
 
 
 
 
 
 
Propane swap agreements
Cost of Sales
 
(341
)
 
—

 
—

Call Options
Cost of Sales
 
(17
)
 
—

 
—

Call Options
Other Comprehensive Income (Loss)
 
(55
)
 
—

 
—

Total
 
 
$
1,084

 
$
1,313

 
$
2,343


(1)
All of the realized and unrealized gain (loss) on forward contracts represents the effect of trading activities on our consolidated statements of income.
(2)
As a fair value hedge with no ineffective portion, the unrealized gains and losses associated with this call option are recorded in cost of sales, offset by the corresponding change in the value of propane inventory (hedged item), which is also recorded in cost of sales. The amounts in cost of sales offset to zero and the unrealized gains and losses of this call option effectively changed the value of propane inventory.