Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2014

Commodity Volumes Under Derivative Contracts

The Company had the following commodity volumes under derivative contracts as of March 31, 2014:

Type of Contract	Remaining Contractual Volume (Mcf)		Term	Price			Price Index (1)
Fixed Price Swap		1,375,000	01/14-12/14	$	4.27		NYMEX
Costless Collar		1,350,000	01/14-12/14	$	4.00	floor	NYMEX
				$	4.50	ceiling
Fixed Price Swap		1,350,000	01/14-12/14	$	4.20		NYMEX
Fixed Price Swap		405,000	01/14-12/14	$	4.17		NYMEX
Fixed Price Swap		3,000,000	01/15-12/15	$	4.28		NYMEX
Fixed Price Swap		3,600,000	01/15-12/15	$	4.15		NYMEX
Fixed Price Swap		1,830,000	01/16-12/16	$	4.07		NYMEX
Total		12,910,000

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

Summary of Interest Rate Swaps with Third Party

As of March 31, 2014, 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:

Type of Contract	Contractual Amount		Term	Rate (LIBOR)			Effective InterestRate(1)
Interest Rate Swap	$	30,000	12/31/12-9/30/16		1.050	%		3.55	%

(1) In accordance with its credit facility, the Company pays interest at a daily rate equal to (a) the higher of the Federal Funds rate for such day, plus 0.5%, the Prime Rate for such day or the One-Month Eurodollar LIBOR rate for such day, plus (b) a spread ranging from 0.75% to 2.75% depending on its outstanding borrowings. The effective interest rate shown reflects the interest rate based on the outstanding borrowings at March 31, 2014.

Summary of Derivatives on Consolidated Balance Sheet

The table below contains a summary of all of the Company’s derivative positions reported on the consolidated balance sheet as of March 31, 2014 presented gross of any master netting arrangements:

	Balance Sheet Location	As of March 31, 2014			As of December 31, 2013
Assets
Commodity derivatives	Assets from price risk management - current	$	—		$	218
	Assets from price risk management - long term		694			402
Total derivative assets		$	694		$	620
Liabilities
Commodity derivatives	Liabilities from price risk management - current	$	(1,626	)	$	(13	)
	Liabilities from price risk management -long term		(134	)		(97	)
Interest rate swap	Other current liabilities		(231	)		(222	)
	Other long term liabilities		(44	)		(90	)
Total derivative liabilities		$	(2,035	)	$	(422	)

Before-tax Effect of Derivative Instruments Not Designated as Hedging Instruments on 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, 2014 and 2013 was as follows:

	Three Months Ended March 31,
	2014			2013
Unrealized loss on commodity contracts (1)	$	(1,575	)	$	(4,673	)
Realized gain (loss) on commodity contracts (1)		(941	)		1,869
Unrealized gain on interest rate swap (2)		37			37
Realized loss on interest rate swap (2)		(67	)		(63	)
Total activity for derivatives not designated as hedging instruments	$	(2,546	)	$	(2,830	)

(1) Included in price risk management activities on the consolidated statements of operations. Price risk management activities totaled $(2,516) and $(2,804) for the three months ended March 31, 2014 and 2013, respectively.

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