Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Commodity volumes under derivative contracts

The Company had the following commodity volumes under derivative contracts as of March31, 2013:

TypeofContract	Remaining Contractual Volume(Mcf)	Term	Price		Price Index(1)
FixedPriceSwap	1,650,000	01/13-12/13	$5.16			NYMEX
Costless Collar	1,650,000	01/13-12/13	$5.00	floor		NYMEX
			$5.35	ceiling
Costless Collar	1,620,000	01/13-12/13	$3.25	floor		NYMEX
			$4.00	ceiling
Fixed Price Swap	1,825,000	01/14-12/14	$4.27			NYMEX
Fixed Price Swap	1,800,000	01/14-12/14	$4.20			NYMEX
Costless Collar	1,800,000	01/14-12/14	$4.00	floor		NYMEX
			$4.50	ceiling
Total	10,345,000

(1)New York Mercantile Exchange (“NYMEX”).

Summary of Interest Rate Swaps with a Third Party

As of March31, 2013, the Company had the following interest rate swap in place with a third party to manage the risk associated with the floating interest rate on its credit facility:

TypeofContract	Contractual Amount	Term	Rate(LIBOR)	Effective InterestRate(1)
InterestRateSwap	$30,000	12/31/12-9/30/16	1.050%	3.55%

(1)In accordance with its credit facility, the Company pays interest amounts based upon the Eurodollar LIBOR rate or Prime rate and plus a spread ranging from 0.75% to 2.75% depending on its outstanding borrowings. The effective rate shown reflects the interest rate based on the outstanding borrowings at March31, 2013.

Summary of derivatives not designated as hedging instruments on the consolidated balance sheet

The table below contains a summary of all the Company’s derivative positions reported on the consolidated balance sheet as of March31, 2013, presented gross of any master netting arrangements:

Derivativesnotdesignated as hedginginstrumentsunderASC815	BalanceSheetLocation	FairValue
Assets
Commodityderivatives	Assetsfrompriceriskmanagement-current	$3,222
	Assetsfrompriceriskmanagement-longterm	177
Liabilities
Commodity derivatives	Liabilities from price risk management - current	$(648)
Interest rate swap	Other current liabilities	(222)
	Other long term liabilities	(311)
Total		$2,218

Before-tax effect of derivative instruments not designated as hedging instruments on the consolidated statements of operations

The before-tax effect of derivative instruments not designated as hedging instruments on the consolidated statements of operations for the three months ended March 31, 2013 and 2012 was as follows:

	AmountofGain(Loss)Recognized in Three Months Ended March31,
	2013	2012
Unrealized gain (loss) on commodity contracts1	$(4,673)	$2,597
Realized gain on commodity contracts1	1,869	3,175
Unrealized gain (loss) on interest rate swap2	37	(23)
Realized losson interest rate swap2	(63)	(23)
Total activity for derivatives not designated as hedging instruments	$(2,830)	$5,726

1Included in price risk management activities, net on the consolidated statements of operations. Price risk management activities totaled $(2,804) and $5,772 for the three months ended March31, 2013 and 2012, respectively.

2 Included in interest expense, net on the consolidated statements of operations.