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Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2014
Derivative Instruments  
Derivatives designated and not designated as hedging instruments

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2014

 

2013

 

 

 

(Thousands)

 

Commodity derivatives designated as cash flow hedges

 

 

 

 

 

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

 

$

(39,194)

 

$

(52,601)

 

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

 

(17,263)

 

25,833

 

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

 

(22,260)

 

(481)

 

 

 

 

 

 

 

Interest rate derivatives designated as cash flow hedges

 

 

 

 

 

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

 

$

–

 

$

–

 

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

 

(36)

 

(36)

 

 

 

 

 

 

 

Commodity derivatives designated as fair value hedges (b)

 

 

 

 

 

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

 

$

–

 

$

(3,539)

 

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

 

–

 

4,537

 

 

 

 

 

 

 

Derivatives not designated as hedging instruments

 

 

 

 

 

Amount of loss recognized in operating revenues

 

$

(9,354)

 

$

(262)

 

 

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

 

(b)         For the three months ended March 31, 2013, the net impact on operating revenues consisted of a $1.3 million gain due to the exclusion the spot/forward differential from the assessment of effectiveness of fair value hedges and a $0.3 million loss due to changes in basis.
Asset and liability derivatives

 

 

 

As of
March 31,

 

As of
December 31,

 

 

 

2014

 

2013

 

 

 

(Thousands)

 

Asset derivatives

 

 

 

 

 

Commodity derivatives designated as hedging instruments

 

$

74,953

 

$

104,430

 

Commodity derivatives not designated as hedging instruments

 

4,868

 

3,217

 

Total asset derivatives

 

$

79,821

 

$

107,647

 

 

 

 

 

 

 

Liability derivatives

 

 

 

 

 

Commodity derivatives designated as hedging instruments

 

$

57,426

 

$

27,618

 

Commodity derivatives not designated as hedging instruments

 

1,907

 

2,033

 

Total liability derivatives

 

$

59,333

 

$

29,651
Schedule of impact of netting agreements and margin deposits on gross derivative assets and liabilities

 

As of March 31, 2014

 

Derivative
instruments,
recorded in the
Condensed
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

 

   $

79,821

 

   $

(26,095)

 

   $

–

 

   $

53,726

 

 

 

 

 

 

 

 

 

 

 

Liability derivatives:

 

 

 

 

 

 

 

 

 

Derivative instruments, at fair value

 

   $

59,333

 

   $

(26,095)

 

   $

(53)

 

   $

33,185

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

Derivative
instruments,
recorded in the
Condensed
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