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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2016
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, 2016
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
4,705

$
(1,470
)
$
3,235

Total assets
4,705

(1,470
)
3,235

Liabilities:
 
 
 
Derivative instruments
(38,177
)
(8,275
)
(46,452
)
Noncurrent derivative instruments
(11,970
)
(905
)
(12,875
)
Total liabilities
(50,147
)
(9,180
)
(59,327
)
Net derivative liability
$
(45,442
)
$
(10,650
)
$
(56,092
)

 
December 31, 2015
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
69,864

$
(12,901
)
$
56,963

Liabilities:
 
 
 
Derivative instruments
2,699

(3,158
)
(459
)
Net derivative asset (liability)
$
72,563

$
(16,059
)
$
56,504
Schedule of Changes in Fair Value of Derivative Commodity Instruments
The table below sets forth a summary of changes in the fair value of Energen’s Level 3 derivative commodity instruments as follows:

 
Three months ended
 
June 30,
(in thousands)
2016
2015
Balance at beginning of period
$
(8,154
)
$
2,413

Realized gains (losses)
(1,398
)
661

Unrealized losses relating to instruments held at the reporting date*
(2,496
)
(16,476
)
Settlements during period
1,398

(661
)
Balance at end of period
$
(10,650
)
$
(14,063
)

 
Six months ended
 
June 30,
(in thousands)
2016
2015
Balance at beginning of period
$
(16,059
)
$
24,436

Realized gains (losses)
(6,916)

13,814

Unrealized gains (losses) relating to instruments held at the reporting date*
5,409

(38,499
)
Settlements during period
6,916

(13,814
)
Balance at end of period
$
(10,650
)
$
(14,063
)
*Includes $3.7 million and $6.1 million in mark-to-market losses for the three months and six months ended June 30, 2016, respectively. Includes $15.8 million and $20.9 million in mark-to-market losses for the three months and six months ended June 30, 2015, respectively.

Quantitative Information About Level 3 Fair Value Measurements of Derivative Commodity Instruments
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 June 30, 2016
Valuation Technique*
Unobservable Input*
Range
Oil Basis - WTI/WTI
 
 
 
 
2016
$
(5,273
)
Discounted Cash Flow
Forward Basis
($0.46 - $0.57) Bbl
Oil Basis - WTS/WTI
 
 
 
 
2016
$
(923
)
Discounted Cash Flow
Forward Basis
($0.69 - $0.78) Bbl
Natural Gas Basis - Permian
 
 
 
 
2016
$
(1,991
)
Discounted Cash Flow
Forward Basis
($0.12) Mcf
2017
$
(2,463
)
Discounted Cash Flow
Forward Basis
($0.13 - $0.14) 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.