Derivative Activities (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Volumes Hedged and Average Hedge Prices

The following table sets forth the derivative volumes by year as of December 31, 2016, excluding our basis and freight swaps which are discussed separately below:

Period	Contract Type	Volume Hedged	Weighted Average Hedge Price
Natural Gas
2017	Swaps (1)	840,692 Mmbtu/day	$ 3.19
2018	Swaps	276,712 Mmbtu/day	$ 3.12
2017	Collar (1)	42,750 Mmbtu/day	$ 3.48-$ 4.15
2017	Purchased Put (1)	175,890 Mmbtu/day	$ 3.48 (2)
2017	Sold Call	9,041 Mmbtu/day	$ 3.75 (3)
Crude Oil
2017	Swaps (1)	8,542 bbls/day	$ 55.77
2018	Swaps	2,750 bbls/day	$ 54.24
NGLs (C2-Ethane)
2017	Swaps	3,000 bbls/day	$ 0.27/gallon
NGLs (C3-Propane)
2017	Swaps	11,610 bbls/day	$ 0.55/gallon
2018	Swaps	5,699 bbls/day	$ 0.65/gallon
NGLs (NC4-Normal Butane)
2017	Swaps	7,000 bbls/day	$ 0.73/gallon
2018	Swaps	2,000 bbls/day	$ 0.78/gallon
NGLs (C5-Natural Gasoline)
2017	Swaps	5,250 bbls/day	$ 1.06/gallon
2018	Swaps	1,000 bbls/day	$ 1.18/gallon

⁽¹⁾ Includes derivative instruments assumed in connection with the MRD Merger.

⁽²⁾ Weighted average deferred premium is ($0.32).

⁽³⁾ Weighted average deferred premium is $0.31.

Combined Fair Value of Derivatives, by Consolidated Balance Sheets

The combined fair value of derivatives included in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 is summarized below (in thousands). As of December 31, 2016, we are conducting derivative activities with twenty-two counterparties, of which all but five are secured lenders in our bank credit facility. We believe all of these counterparties are acceptable credit risks. At times, such risks may be concentrated with certain counterparties. The credit worthiness of our counterparties is subject to periodic review. 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.

		December 31, 2016
		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	$	13,213	$	(11,425	)	$	1,788
	–basis swaps		12,535		(9,437	)		3,098
	–collars		6,298		(6,298	)		—
	–puts		18,159		(15,429	)		2,730
Crude oil	–swaps		9,356		(3,489	)		5,867
NGLs	–C2 ethane swaps		53		(53	)		—
	–C3 propane spread swaps		17,396		(17,396	)		—
	–NC4 butane swaps		4		(4	)		—
Freight	–swaps		65		(65	)		—
		$	77,079	$	(63,596	)	$	13,483

		December 31, 2016
		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	$	(158,359	)	$	11,425	$	(146,934	)
	–basis swaps		(687	)		9,437		8,750
	–collars		(2,625	)		6,298		3,673
	–puts		—			15,429		15,429
	–calls		(1,041	)		—		(1,041	)
Crude oil	–swaps		(13,206	)		3,489		(9,717	)
NGLs	–C2 ethane swaps		(1,008	)		53		(955	)
	–C3 propane swaps		(32,437	)		—		(32,437	)
	–C3 propane spread swaps		(18,138	)		17,396		(742	)
	–NC4 butane swaps		(13,419	)		4		(13,415	)
	–C5 natural gasoline swaps		(12,176	)		—		(12,176	)
Freight	–swaps		—			65		65
		$	(253,096	)	$	63,596	$	(189,500	)

		December 31, 2015
		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	$	219,357	$	(10,245	)	$	209,112
	–natural gas basis swaps		8,251		(2,765	)		5,486
Crude oil	–swaps		38,699		—			38,699
NGLs	–C3 swaps		15,884		—			15,884
	–C3 propane spread swaps		2,497		(2,497	)		—
	–C4 swaps		6,968		—			6,968
	–C5 swaps		12,694		(81	)		12,613
		$	304,350	$	(15,588	)	$	288,762

		December 31, 2015
		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	$	(10,245	)	$	10,245	$	—
	–natural gas basis swaps		(2,786	)		2,765		(21	)
NGLs	–C3 propane spread swaps		(3,633	)		2,497		(1,136	)
	–C5 swaps		(81	)		81		—
		$	(16,745	)	$	15,588	$	(1,157	)

Effects of Derivatives on Consolidated Statements of Operations

The effects of our derivatives on our consolidated statements of operations for the last three years are summarized below (in thousands).

	Year Ended December 31,
	Derivative Fair Value Income (Loss)
	2016			2015		2014
Commodity Swaps	$	(265,466	)	$	398,020	$	367,484
Re-purchased swaps		—			851		—
Collars		(6,926	)		16,539		42,836
Basis swaps		29,154			954		(26,800	)
Puts		(18,201	)		—		—
Calls		(18	)		—		—
Freight swaps		66			—		—
Total	$	(261,391	)	$	416,364	$	383,520