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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 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:

 
September 30, 2014
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
16,355

$
13,840

$
30,195

Noncurrent derivative instruments
4,763

995

5,758

Total assets
21,118

14,835

35,953

Liabilities:
 
 
 
Derivative instruments
(1,499
)
691

(808
)
Noncurrent derivative instruments
—

(640
)
(640
)
Total liabilities
(1,499
)
51

(1,448
)
Net derivative asset
$
19,619

$
14,886

$
34,505


 
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)
September 30, 2014
September 30, 2013
Balance at beginning of period
$
5,207

$
51,131

Realized gains
10,769

10,852

Unrealized gains (losses) relating to instruments held at the reporting date*
9,348

(10,947
)
Settlements during period
(10,438
)
(9,830
)
Balance at end of period
$
14,886

$
41,206


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

$
89,019

Realized gains
8,581

41,952

Unrealized losses relating to instruments held at the reporting date*
(3,734
)
(48,835
)
Settlements during period
(8,250
)
(40,930
)
Balance at end of period
$
14,886

$
41,206

*Includes $12.2 million and $9.6 million in mark-to-market gains for the three months and nine months ended September 30, 2014, respectively. Includes $0.8 million and $4.7 million in mark-to-market gains for the three months and nine months ended September 30, 2013, respectively.
Schedule of Fair Value Inputs, Derivatives, Quantitative Information
The table below sets forth quantitative information about Energen’s Level 3 fair value measurements of derivative commodity instruments as follows:

(in thousands, except price data)
Fair Value as of September 30, 2014
Valuation Technique*
Unobservable Input*
Range
Oil Basis - WTS/WTI
 
 
 
 
2014
$
1,115

Discounted Cash Flow
Forward Basis
($6.62) Bbl
2015
(181
)
Discounted Cash Flow
Forward Basis
($4.20 - $4.24) Bbl
Oil Basis - WTI/WTI
 
 
 
 
2014
$
2,736

Discounted Cash Flow
Forward Basis
($7.07 - $7.18) Bbl
2015
(1,979
)
Discounted Cash Flow
Forward Basis
($4.60 - $4.97) Bbl
Natural Gas Liquids
 
 
 
 
2014
$
1,600

Discounted Cash Flow
Forward Price
 $0.67 - $0.90 Gal
Natural Gas Basis - San Juan
 
 
 
 
2014
$
4,946

Discounted Cash Flow
Forward Basis
($0.05 - $0.12) Mcf
2015
$
5,097

Discounted Cash Flow
Forward Basis
($0.09 - $0.10) Mcf
Natural Gas Basis - Permian
 
 
 
 
2014
$
(372
)
Discounted Cash Flow
Forward Basis
($0.09 - $0.10) Mcf
2015
$
1,924

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.