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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2013
Derivative Instruments  
Derivatives designated and not designated as hedging instruments

 

 

 

 

Years Ended December 31,

 

 

2013

 

2012

 

2011

 

 

 

 

(Thousands)

 

 

Commodity derivatives designated as cash flow hedges

 

 

 

 

 

 

Amount of gain recognized in OCI (effective portion), net of tax

 

$

10,669

 

$

86,259

 

$

239,019

Amount of gain reclassified from accumulated OCI, net of tax into operating revenues (effective portion)

 

87,158

 

180,137

 

72,179

Amount of (loss) recognized in operating revenues (ineffective portion) (a)

 

(21,335)

 

(75)

 

(181)

 

 

 

 

 

 

 

Interest rate derivatives designated as cash flow hedges

 

 

 

 

 

 

Amount of (loss) recognized in OCI (effective portion), net of tax

 

$

–

 

$

(7,138)

 

$

(7,573)

Amount of (loss) reclassified from accumulated OCI, net of tax, into interest expense due to forecasted transactions no longer being probable

 

–

 

(13,266)

 

–

Amount of (loss) reclassified from accumulated OCI, net of tax, into interest expense (effective portion)

 

(144)

 

(241)

 

(140)

 

 

 

 

 

 

 

Commodity derivatives designated as fair value hedges (b)

 

 

 

 

 

 

Amount of (loss) gain recognized in operating revenues for fair value commodity contracts

 

$

(1,341)

 

$

3,878

 

$

12,263

Fair value gain (loss) recognized in operating revenues for inventory designated as hedged item

 

386

 

3,292

 

(6,059)

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

Amount of gain recognized in operating revenues

 

$

2,834

 

$

2,176

 

$

4,209

 

(a)         No amounts have been excluded from effectiveness testing of cash flow hedges.

 

(b)         For the year ended December 31, 2013, the net impact on operating revenues consisted of a $0.5 million gain due to the exclusion of the spot/forward differential from the assessment of effectiveness and a $1.5 million loss due to changes in basis. For the year ended December 31, 2012, the net impact on operating revenues consisted of a $7.6 million gain due to the exclusion of the spot/forward differential from the assessment of effectiveness and a $0.4 million loss due to changes in basis. For the year ended December 31, 2011, the net impact on operating revenues consisted of a $7.6 million gain due to the exclusion of the spot/forward differential from the assessment of effectiveness and a $1.4 million loss due to changes in basis.

 

 

 
Asset and liability derivatives

 

 

 

 

As of December 31,

 

 

2013

 

2012

 

 

(Thousands)

Asset derivatives

 

 

 

 

Commodity derivatives designated as hedging instruments

 

$

104,430

 

$

259,459

Commodity derivatives not designated as hedging instruments

 

3,217

 

44,778

Total asset derivatives

 

$

107,647

 

$

304,237

 

 

 

 

 

Liability derivatives

 

 

 

 

Commodity derivatives designated as hedging instruments

 

$

27,618

 

$

27,946

Commodity derivatives not designated as hedging instruments

 

2,033

 

47,616

Total liability derivatives

 

$

29,651

 

$

75,562

 
Schedule of impact of netting agreements and margin deposits on gross derivative assets and liabilities

 

 

As of December 31, 2013

 

Derivative
instruments,
recorded in the
Consolidated
Balance
Sheet, gross

 

Derivative
instruments
subject to
master
netting
agreements

 

Margin
deposits
remitted to
counterparties

 

Derivative
instruments,
net

 

 

(Thousands)

Asset derivatives:

 

 

 

 

 

 

 

 

Derivative instruments, at fair value

 

$

107,647

 

$

(20,843)

 

$

–

 

$

86,804

 

 

 

 

 

 

 

 

 

Liability derivatives:

 

 

 

 

 

 

 

 

Derivative instruments, at fair value

 

$

29,651

 

$

(20,843)

 

$

(266)

 

$

8,542

 

As of December 31, 2012

 

Derivative
instruments,
recorded in the
Consolidated
Balance
Sheet, gross

 

Derivative
instruments
subject to
master
netting
agreements

 

Margin
deposits
remitted to
counterparties

 

Derivative
instruments,
net

 

 

 

(Thousands)

 

Asset derivatives:

 

 

 

 

 

 

 

 

 

Derivative instruments, at fair value

 

     $

304,237

 

  $

(73,753)

 

    $

–

 

  $

230,484

 

 

 

 

 

 

 

 

 

 

 

Liability derivatives:

 

 

 

 

 

 

 

 

 

Derivative instruments, at fair value

 

     $

75,562

 

  $

(73,753)

 

    $

(736)

 

  $

1,073