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Derivative Instruments (Tables)
9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Values of Derivative Contracts Recorded in Condensed Consolidated Balance Sheet
air values of the derivative contracts recorded in the condensed consolidated balance sheets as of September 30, 2016 and December 31, 2015, are as follows: 
 
 
Asset Derivatives
 
 
 
 
Fair Value As Of
(in thousands)
 
Balance Sheet Location
 
September 30, 2016
 
December 31, 2015
Derivatives not designated as hedging instruments
 
 
 
 
 
 
Forward & Future contracts
 
Mark-to-market energy assets
 
$
—

 
$
1

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

 
152

Derivatives designated as cash flow hedges
 
 
 
 
 
 
Natural gas futures contracts
 
Mark-to-market energy assets
 
240

 
—

Propane swap agreements
 
Mark-to-market energy assets
 
237

 
—

Total asset derivatives
 
 
 
$
477

 
$
153



 
 
 
Liability Derivatives
 
 
 
 
Fair Value As Of
(in thousands)
 
Balance Sheet Location
 
September 30, 2016
 
December 31, 2015
Derivatives not designated as hedging instruments
 
 
 
 
 
 
Forward contracts
 
Mark-to-market energy liabilities
 
$
—

 
$
1

Natural gas futures contracts
 
Mark-to-market energy liabilities
 
29

 
—

Derivatives designated as fair value hedges
 
 
 
 
 
 
Natural gas futures contracts
 
Mark-to-market energy liabilities
 
—

 
—

Derivatives designated as cash flow hedges
 
 
 
 
 
 
Propane swap agreements
 
Mark-to-market energy liabilities
 
—

 
323

Natural gas futures contracts
 
Mark-to-market energy liabilities
 
—

 
109

Total liability derivatives
 
 
 
$
29

 
$
433


 
 
 
Three Months Ended
 
Nine Months Ended
(in thousands)
 
 
September 30, 2016 (1)
 
September 30, 2016 (1)
Commodity contracts
 
$
—

 
$
(233
)
Fair value adjustment for natural gas inventory designated as the hedged item
 
—

 
681

Total increase in purchased gas cost
 
$
—

 
$
448

 
 
 
 
 
 
The increase in purchased gas cost is comprised of the following:
 
 
 
 
Basis ineffectiveness
 
$
—

 
$
(83
)
Timing ineffectiveness
 
—

 
531

Total ineffectiveness
 
$
—

 
$
448

Effects of Gains and Losses from Derivative Instruments on Condensed Consolidated Financial Statements
The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows: 
  
 
 
 
Amount of Gain (Loss) on Derivatives:
 
 
Location of Gain
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
(in thousands)
 
(Loss) on Derivatives
 
2016
 
2015
 
2016
 
2015
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Realized gain (loss) on forward contracts (1)
 
Revenue
 
$
(231
)
 
$
187

 
$
44

 
$
393

Unrealized gain (loss) on forward contracts (1)
 
Revenue
 
(2
)
 
(7
)
 
—

 
71

Natural gas futures contracts
 
Cost of sales
 
205

 
—

 
205

 
—

Propane swap agreements
 
Cost of sales
 
—

 
—

 
—

 
18

Derivatives designated as fair value hedges
 
 
 
 
 
 
 
 
 
 
Put /Call options
 
Cost of sales
 
—

 
—

 
73

 
506

Put /Call options (2)
 
Propane Inventory
 
—

 
(46
)
 
—

 
(79
)
       Natural gas futures contracts
 
Natural Gas Inventory
 
—

 
—

 
(233
)
 
—

Derivatives designated as cash flow hedges
 
 
 
 
 
 
 
 
 
 
Propane swap agreements
 
Cost of sales
 
—

 
—

 
(364
)
 
—

Propane swap agreements
 
Other Comprehensive Gain (Loss)
 
213

 
(126
)
 
559

 
(128
)
Call options
 
Cost of sales
 
—

 
—

 
—

 
(81
)
       Natural gas futures contracts
 
Cost of sales
 
105

 
—

 
464

 
—

       Natural gas futures contracts
 
Other Comprehensive Gain (Loss)
 
(123
)
 
—

 
349

 
—

Total
 
 
 
$
167

 
$
8

 
$
1,097

 
$
700