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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2014
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following fair value hierarchy tables present information about Energen’s assets and liabilities measured at fair value on a recurring basis:

 
June 30, 2014
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
(2,992
)
$
3,516

$
524

Noncurrent derivative instruments
—

623

623

Total assets
(2,992
)
4,139

1,147

Liabilities:
 
 
 
Derivative instruments
(95,999
)
(214
)
(96,213
)
Noncurrent derivative instruments
(22,987
)
1,282

(21,705
)
Total liabilities
(118,986
)
1,068

(117,918
)
Net derivative asset (liability)
$
(121,978
)
$
5,207

$
(116,771
)

 
December 31, 2013
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
(1,658
)
$
19,121

$
17,463

Noncurrent derivative instruments
4,383

1,056

5,439

Total assets
2,725

20,177

22,902

Liabilities:
 
 
 
Derivative instruments
(28,414
)
(1,888
)
(30,302
)
Total liabilities
(28,414
)
(1,888
)
(30,302
)
Net derivative asset (liability)
$
(25,689
)
$
18,289

$
(7,400
)
Schedule of Changes in Fair Value of Derivative Instruments Classified as Level 3
The tables below set forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows:

 
Three months ended
Three months ended
(in thousands)
June 30, 2014
June 30, 2013
Balance at beginning of period
$
1,378

$
26,459

Realized gains
785

6,183

Unrealized gains relating to instruments held at the reporting date*
3,800

23,404

Settlements during period
(756
)
(4,915
)
Balance at end of period
$
5,207

$
51,131


 
Six months ended
Six months ended
(in thousands)
June 30, 2014
June 30, 2013
Balance at beginning of period
$
18,289

$
89,019

Realized gains (losses)
(2,158
)
32,368

Unrealized losses relating to instruments held at the reporting date*
(13,111
)
(39,156
)
Settlements during period
2,187

(31,100
)
Balance at end of period
$
5,207

$
51,131
Schedule of Fair Value Inputs, Derivatives, Quantitative Information
The tables below set forth quantitative information about the Energen’s Level 3 fair value measurements of derivative commodity instruments as follows:

(in thousands, except price data)
Fair Value as of June 30, 2014
Valuation Technique*
Unobservable Input*
Range
Oil Basis - WTS/WTI
 
 
 
 
2014
$
1,119

Discounted Cash Flow
Forward Basis
($5.01) Bbl
Oil Basis - WTI/WTI
 
 
 
 
2014
$
3,072

Discounted Cash Flow
Forward Basis
($5.42 - $5.57) Bbl
Natural Gas Liquids
 
 
 
 
2014
$
91

Discounted Cash Flow
Forward Price
 $0.74 - $0.97 Gal
Natural Gas Basis - San Juan
 
 
 
 
2014
$
2,817

Discounted Cash Flow
Forward Basis
($0.03 - $0.07) Mcf
2015
$
579

Discounted Cash Flow
Forward Basis
($0.11 - $0.12) Mcf
Natural Gas Basis - Permian
 
 
 
 
2014
$
(3,073
)
Discounted Cash Flow
Forward Basis
($0.06 - $0.07) Mcf
2015
$
602

Discounted Cash Flow
Forward Basis
($0.13) Mcf
*Discounted cash flow represents an income approach in calculating fair value including the referenced unobservable input and a discount reflecting credit quality of the counterparty.