Derivative Commodity Instruments Derivative Commodity Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Liabilities at Fair Value

The following tables detail the offsetting of derivative assets and liabilities as well as the fair values of derivatives on the balance sheets:

(in thousands)	September 30, 2014
								Gross Amounts Not Offset in the Balance Sheets
	Gross Amounts Recognized at Fair Value		Gross Amounts Offset in the Balance Sheets			Net Amount Presented in the Balance Sheets		Financial Instruments		Cash Collateral Received		Net Fair Value Presented in the Balance Sheets
Derivatives not designated as hedging instruments
Assets
Derivative instruments	$	37,039	$	(6,844	)	$	30,195	$	—	$	—	$	30,195
Noncurrent derivative instruments	6,581		(823		)	5,758		—		—		5,758
Total derivative assets	43,620		(7,667		)	35,953		—		—		35,953
Liabilities
Derivative instruments	7,652		(6,844		)	808		—		—		808
Noncurrent derivative instruments	1,463		(823		)	640		—		—		640
Total derivative liabilities	9,115		(7,667		)	1,448		—		—		1,448
Total derivatives	$	34,505	$	—		$	34,505	$	—	$	—	$	34,505

(in thousands)	December 31, 2013
										Gross Amounts Not Offset in the Balance Sheets
	Gross Amounts Recognized at Fair Value			Gross Amounts Offset in the Balance Sheets			Net Amount Presented in the Balance Sheets			Financial Instruments		Cash Collateral Received		Net Fair Value Presented in the Balance Sheets
Derivatives not designated as hedging instruments
Assets
Derivative instruments	$	36,223		$	(18,760	)	$	17,463		$	—	$	—	$	17,463
Noncurrent derivative instruments	7,992			(2,553		)	5,439			—		—		5,439
Total derivative assets	44,215			(21,313		)	22,902			—		—		22,902
Liabilities
Derivative instruments	49,062			(18,760		)	30,302			—		—		30,302
Noncurrent derivative instruments	2,553			(2,553		)	—			—		—		—
Total derivative liabilities	51,615			(21,313		)	30,302			—		—		30,302
Total derivatives	$	(7,400	)	$	—		$	(7,400	)	$	—	$	—	$	(7,400	)

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables detail the effect of derivative commodity instruments in cash flow hedging relationships on the financial statements:

(in thousands)	Location on Statements of Income	Three months ended September 30, 2014		Three months ended September 30, 2013
Net gain recognized in other comprehensive income on derivatives (effective portion), net of tax of $18 and $42	—	$	29	$	69
Gain reclassified from accumulated other comprehensive income into income (effective portion)	Gain (loss) on derivative instruments, net	$	5,992	$	8,455
Loss recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Gain (loss) on derivative instruments, net	$	—	$	(22	)

(in thousands)	Location on Statements of Income	Nine months ended September 30, 2014		Nine months ended September 30, 2013
Net gain (loss) recognized in other comprehensive income on derivatives (effective portion), net of tax of $25 and ($6,669)	—	$	40	$	(10,882	)
Gain reclassified from accumulated other comprehensive income into income (effective portion)	Gain (loss) on derivative instruments, net	$	15,781	$	29,391
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)	Gain (loss) on derivative instruments, net	$	—	$	835

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following tables detail the effect of open and closed derivative commodity instruments not designated as hedging instruments on the income statement:

(in thousands)	Location on Statements of Income	Three months ended September 30, 2014		Three months ended September 30, 2013
Gain (loss) recognized in income on derivatives	Gain (loss) on derivative instruments, net	$	141,743	$	(92,313	)

(in thousands)	Location on Statements of Income	Nine months ended September 30, 2014			Nine months ended September 30, 2013
Loss recognized in income on derivatives	Gain (loss) on derivative instruments, net	$	(6,283	)	$	(70,735	)

Schedule of Hedging Transactions

As of September 30, 2014, Energen had entered into the following transactions for the remainder of 2014 and subsequent years:

Production Period	Total Hedged Volumes		Average Contract Price	Description
Oil
2014	2,502	MBbl	$92.66 Bbl	NYMEX Swaps
2015	8,280	MBbl	$89.30 Bbl	NYMEX Swaps
Oil Basis Differential
2014	300	MBbl	$(3.30) Bbl	WTS/WTI Basis Swaps*
2014	600	MBbl	$(3.08) Bbl	WTI/WTI Basis Swaps**
2015	2,160	MBbl	$(4.30) Bbl	WTS/WTI Basis Swaps*
2015	6,120	MBbl	$(5.11) Bbl	WTI/WTI Basis Swaps**
Natural Gas Liquids
2014	18.5	MMgal	$0.93 Gal	Liquids Swaps
Natural Gas
2014	2.6	Bcf	$4.57 Mcf	NYMEX Swaps
2014	7.6	Bcf	$4.62 Mcf	Basin Specific Swaps - San Juan
2014	2.6	Bcf	$3.81 Mcf	Basin Specific Swaps - Permian
2015	23.0	Bcf	$4.13 Mcf	Basin Specific Swaps - San Juan
2015	6.0	Bcf	$4.20 Mcf	Basin Specific Swaps - Permian
Natural Gas Basis Differential
2014	1.5	Bcf	$(0.09) Mcf	San Juan Basis Swaps
2014	0.6	Bcf	$(0.17) Mcf	Permian Basis Swaps
*WTS - West Texas Sour/Midland, WTI - West Texas Intermediate/Cushing
**WTI - West Texas Intermediate/Midland, WTI - West Texas Intermediate/Cushing