Derivative Financial Instruments

3 Months Ended

Mar. 31, 2016

Derivative Financial Instruments

Derivative Financial Instruments

10.Derivative Financial Instruments

The Company’s Bankruptcy Petition in July 2015 represented an event of default under Sabine’s existing derivative agreements resulting in a termination right by counterparties on all derivative positions at July 15, 2015. Additionally, certain of the Company’s derivative positions were terminated prior to July 15, 2015 as a result of defaults under Sabine’s derivate agreements that occurred prior to the filing of the Bankruptcy Petition. As a result, the Company no longer has any derivatives beyond July 2015.

The table below presents the Company’s “Gain on derivative instruments” located in Other income (expenses) in the Condensed Consolidated Statements of Operations:

	For the Three Months Ended
	March 31,
	2016		2015
	(in thousands)
Gain on derivative instruments	$	—	$	36,124

Sabine received zero and $46.0 million on settlements of derivatives in three months ended March 31, 2016 and 2015, respectively.