Derivative Activities(Tables)

3 Months Ended

Mar. 31, 2014

Derivative Volumes Hedged and Average Hedge Prices

The following table sets forth our derivative volumes by year as of March 31, 2014:

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
Natural Gas
2014	Collars	447,500 Mmbtu/day	$ 3.84–$ 4.48
2015	Collars	145,000 Mmbtu/day	$ 4.07–$ 4.56
2014	Swaps	240,145 Mmbtu/day	$ 4.18
2015	Swaps	234,966 Mmbtu/day	$ 4.19
2016	Swaps	60,000 Mmbtu/day	$ 4.18
Crude Oil
2014	Collars	2,000 bbls/day	$ 85.55–$ 100.00
2014	Swaps	9,169 bbls/day	$ 94.40
2015	Swaps	6,000 bbls day	$ 89.48
NGLs (C3-Propane)
2014	Swaps	12,000 bbls/day	$ 1.02/gallon
NGLs (NC4-Normal butane)
2014	Swaps	4,000 bbls/day	$ 1.34/gallon
NGLs (C5-Natural Gasoline)
2014	Swaps	1,000 bbls/day	$ 2.11/gallon

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of March 31, 2014 and December 31, 2013 is summarized below. The assets and liabilities are netted where derivatives with both gain and loss positions are held by a single counterparty and we have master netting arrangements. The tables below provide additional information relating to our master netting arrangements with our derivative counterparties (in thousands):

		March 31, 2014
		Gross  Amounts of Recognized  Assets		Gross Amounts Offset in the Balance Sheet			Net Amounts of Assets  Presented in the Balance Sheet
Derivative assets:
Natural gas	–swaps	$	8,347	$	—		$	8,347
	–collars		7,328		(584	)		6,744
	–basis swaps		3,123		(3,123	)		—
Crude oil	–swaps		1,179		(273	)		906
NGLs	–C3 swaps		1,877		(1,877	)		—
	–C4 swaps		3,159		(3,159	)		—
		$	25,013	$	(9,016	)	$	15,997

		March 31, 2014
		Gross Amounts of Recognized (Liabilities)			Gross  Amounts Offset in the Balance Sheet		Net Amounts of (Liabilities)  Presented in the Balance Sheet
Derivative (liabilities):
Natural gas	–swaps	$	(27,720	)	$	—	$	(27,720	)
	–collars		(26,738	)		584		(26,154	)
	–basis swaps		(6,762	)		3,123		(3,639	)
Crude oil	–swaps		(10,027	)		273		(9,754	)
	–collars		(972	)		—		(972	)
NGLs	–C3 swaps		(9,692	)		1,877		(7,815	)
	–C4 swaps		—			3,159		3,159
	–C5 swaps		(101	)		—		(101	)
		$	(82,012	)	$	9,016	$	(72,996	)

		December 31, 2013
		Gross Amounts of Recognized  Assets		Gross  Amounts Offset in the Balance Sheet			Net Amounts of Assets  Presented in the Balance Sheet
Derivative assets:
Natural gas	–swaps	$	4,240	$	(1,218	)	$	3,022
	–collars		16,057		(7,671	)		8,386
	–basis swaps		7,686		(7,686	)		—
Crude oil	–swaps		3,567		(1,321	)		2,246
NGLs	–C3 swaps		826		(826	)		—
	–C4 swaps		863		(863	)		—
	–C5 swaps		121		(121	)		—
		$	33,360	$	(19,706	)	$	13,654

		December 31, 2013
		Gross Amounts of Recognized  (Liabilities)			Gross  Amounts Offset in the Balance Sheet		Net Amounts of (Liabilities)  Presented in the Balance Sheet
Derivative (liabilities):
Natural gas	–swaps	$	(4,790	)	$	1,218	$	(3,572	)
	–collars		(13,345	)		7,671		(5,674	)
	–basis swaps		(3,756	)		7,686		3,930
Crude oil	–swaps		(4,711	)		1,321		(3,390	)
	–collars		(398	)		—		(398	)
NGLs	–C3 swaps		(18,172	)		826		(17,346	)
	–C4 swaps		(757	)		863		106
	–C5 swaps		—			121		121
		$	(45,929	)	$	19,706	$	(26,223	)

Effects of Cash Flow Hedges and Other Hedges on Accumulated Other Comprehensive Income

The effects of our cash flow hedges (or those derivatives that previously qualified for hedge accounting) on AOCI in the accompanying consolidated balance sheets is summarized below (in thousands):

	Three Months Ended March 31,
	Change in Hedge Derivative Fair Value					Realized Gain (Loss) Reclassified from OCI into Revenue (a)
	2014		2013			2014			2013
Swaps	$	—	$	125		$	836		$	8,047
Collars		—		(7,015	)		1,328			30,732
Income taxes		—		2,687			(924	)		(15,124	)
	$	—	$	(4,203	)	$	1,240		$	23,655

Effects of Non-Hedge Derivatives on Consolidated Statements of Operations

The effects of our non-hedge derivatives (or those derivatives that do not qualify for hedge accounting) and the ineffective portion of our hedge derivatives on our consolidated statements of operations is summarized below (in thousands):

	Three Months Ended March 31,
	Gain (Loss) Recognized in Income (Non-hedge Derivatives)						Gain (Loss) Recognized in Income (Ineffective Portion)					Derivative Fair Value Income (Loss)
	2014			2013			2014		2013			2014			2013
Swaps	$	(44,073	)	$	(43,076	)	$	—	$	(1,995	)	$	(44,073	)	$	(45,071	)
Re-purchased swaps		—			1,185			—		—			—			1,185
Collars		(39,148	)		(55,003	)		—		(896	)		(39,148	)		(55,899	)
Call options		(63,629	)		(90	)		—		—			(63,629	)		(90	)
Total	$	(146,850	)	$	(96,984	)	$	—	$	(2,891	)	$	(146,850	)	$	(99,875	)