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

 
September 30, 2016
(in thousands)
Level 2
Level 3
Total
Assets:
 
 
 
Derivative instruments
$
4,094

$
(441
)
$
3,653

Total assets
4,094

(441
)
3,653

Liabilities:
 
 
 
Derivative instruments
(21,782
)
(3,127
)
(24,909
)
Noncurrent derivative instruments
(5,314
)
(729
)
(6,043
)
Total liabilities
(27,096
)
(3,856
)
(30,952
)
Net derivative liability
$
(23,002
)
$
(4,297
)
$
(27,299
)

 
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
 
September 30,
(in thousands)
2016
2015
Balance at beginning of period
$
(10,650
)
$
(14,063
)
Realized gains (losses)
(4,610
)
(2,820
)
Unrealized gains (losses) relating to instruments held at the reporting date*
6,353

(3,569
)
Settlements during period
4,610

2,820

Balance at end of period
$
(4,297
)
$
(17,632
)

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

Realized gains (losses)
(11,526)

10,994

Unrealized gains (losses) relating to instruments held at the reporting date*
11,762

(42,068
)
Settlements during period
11,526

(10,994
)
Balance at end of period
$
(4,297
)
$
(17,632
)
*Includes $1.5 million in mark-to-market gains and $1.6 million in mark-to-market losses for the three months and nine months ended September 30, 2016, respectively. Includes $5.4 million and $20.2 million in mark-to-market losses for the three months and nine months ended September 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 September 30, 2016
Valuation Technique*
Unobservable Input*
Range
Oil Basis - WTI/WTI
 
 
 
 
2016
$
(1,845
)
Discounted Cash Flow
Forward Basis
($0.45 - $0.82) Bbl
Oil Basis - WTS/WTI
 
 
 
 
2016
$
(36
)
Discounted Cash Flow
Forward Basis
($1.50 - $1.53) Bbl
Natural Gas Liquids
 
 
 
 
2017
$
(954
)
Discounted Cash Flow
Forward Basis
 $0.54 Gal
Natural Gas Basis - Permian
 
 
 
 
2016
$
(997
)
Discounted Cash Flow
Forward Basis
($0.07 - $0.11) Mcf
2017
$
(465
)
Discounted Cash Flow
Forward Basis
($0.19 - $0.21) 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.