XML 42 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2014
Summary of Outstanding Contracts with Respect to Natural Gas
Natural Gas - Henry Hub - as of September 30, 2014

Collars


Swaps Weighted Average Price

Floors

Ceilings







Weighted Average Price



Weighted Average Price
Period and Type of Contract

MMBtus


Range


Range

October 2014 - December 2014












Swaps - Henry Hub

30,820,000


$
4.20











January 2015 - December 2015












Swaps - Henry Hub

24,500,000


$
4.27











Collars - Henry Hub

29,200,000




$3.50 - $3.75

$
3.69


$4.89 - $5.48

$
5.04

January 2016 - December 2016












Swaps - Henry Hub

4,550,000


$
4.27
Cash and Non-Cash Gains and Losses on Derivative Instruments
The following table presents cash settlements on matured derivative instruments and non-cash gains and losses on open derivative instruments for the periods presented. Cash receipts and payments below reflect the gain or loss on derivative contracts which matured during the period, calculated as the difference between the contract price and the market settlement price of matured contracts. Non-cash gains and losses below represent the change in fair value of derivative instruments which continue to be held at period end and the reversal of previously recognized non-cash gains or losses on derivative contracts that matured during the period.
 
 
Three months ended September 30,
 
Nine months ended September 30,
In thousands
 
2014
 
2013
 
2014
 
2013
Cash received (paid) on derivatives:
 
 
 
 
 
 
 
 
Crude oil fixed price swaps
 
$
(4,126
)
 
$
(39,298
)
 
$
(77,148
)
 
$
(46,810
)
Crude oil collars
 
(233
)
 
(15,081
)
 
(2,270
)
 
(14,701
)
Natural gas fixed price swaps
 
4,549

 
14,030

 
(17,799
)
 
9,601

Cash received (paid) on derivatives, net
 
190

 
(40,349
)
 
(97,217
)
 
(51,910
)
Non-cash gain (loss) on derivatives:
 
 
 
 
 
 
 
 
Crude oil fixed price swaps
 
416,637

 
(146,782
)
 
228,845

 
(38,234
)
Crude oil collars
 
27,386

 
(13,243
)
 
28,300

 
(11,037
)
Natural gas fixed price swaps
 
25,851

 
(3,400
)
 
7,944

 
11,633

Natural gas collars
 
3,935

 
—

 
3,929

 
—

Non-cash gain (loss) on derivatives, net
 
473,809

 
(163,425
)
 
269,018

 
(37,638
)
Gain (loss) on derivative instruments, net
 
$
473,999

 
$
(203,774
)
 
$
171,801

 
$
(89,548
)
Gross Amounts of Recognized Derivative Assets and Liabilities
The following table presents the gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets for the periods presented, all at fair value. 
In thousands
 
September 30, 2014
 
December 31, 2013
Commodity derivative assets:
 
 
 
 
Gross amounts of recognized assets
 
$
174,478

 
$
4,213

Gross amounts offset on balance sheet
 
(208
)
 
(597
)
Net amounts of assets on balance sheet
 
174,270

 
3,616

Commodity derivative liabilities:
 
 
 
 
Gross amounts of recognized liabilities
 
—

 
(125,709
)
Gross amounts offset on balance sheet
 
—

 
27,345

Net amounts of liabilities on balance sheet
 
$
—

 
$
(98,364
)
Reconciles Net Amounts Derivative Assets and Liabilities
The following table reconciles the net amounts disclosed above to the individual financial statement line items in the condensed consolidated balance sheets. 
In thousands
 
September 30, 2014
 
December 31, 2013
Derivative assets
 
$
143,268

 
$
3,616

Noncurrent derivative assets
 
31,002

 
—

Net amounts of assets on balance sheet
 
174,270

 
3,616

Derivative liabilities
 
—

 
(90,535
)
Noncurrent derivative liabilities
 
—

 
(7,829
)
Net amounts of liabilities on balance sheet
 
—

 
(98,364
)
Total derivative assets (liabilities), net (1)
 
$
174,270

 
$
(94,748
)

(1) As discussed above, subsequent to September 30, 2014 the Company settled substantially all of its outstanding crude oil derivative contracts prior to their contractual maturities. As of October 31, 2014, the fair value of the Company's remaining derivative contracts was a net asset of approximately $20 million, representing a net asset of $27 million associated with natural gas derivatives partially offset by a net liability of $7 million associated with remaining crude oil derivatives.
Summary of Outstanding Contracts with Respect to Crude Oil Following Liquidations
The tables below set forth the Company's remaining crude oil derivative contracts in place as of October 31, 2014 after settlement of matured October 2014 contracts and the liquidations referred to above.
Crude Oil - NYMEX WTI - as of October 31, 2014
 
Ceilings
 
 
 
 
 
 
Weighted Average
Price
Period and Type of Contract
 
Bbls
 
Range
 
January 2015 - December 2015
 
 
 
 
 
 
Written call options - WTI (1)
 
4,380,000

 
$95.85 - $103.75
 
$
98.36

Crude Oil - ICE Brent - as of October 31, 2014
 
Floors
 
Ceilings
 
 
 
 
 
 
Weighted Average
Price
 
 
 
Weighted Average
Price
Period and Type of Contract
 
Bbls
 
Range
 
 
Range
 
November 2014 - December 2014
 
 
 
 
 
 
 
 
 
 
Collars - ICE Brent
 
366,000

 
$90.00 - $95.00
 
$
90.83

 
$104.70 - $108.85

 
$
107.13

January 2015 - December 2015
 
 
 
 
 
 
 
 
 
 
Written call options - ICE Brent (1)
 
730,000

 
 
 
 
 
$
107.40

 
$
107.40

January 2016 - December 2016
 
 
 
 
 
 
 
 
 
 
Written call options - ICE Brent (1)
 
1,464,000

 
 
 
 
 
$
107.70

 
$
107.70

(1)
The written call options represent the ceiling positions remaining from the Company's crude oil collar contracts. The floor positions of the collars were liquidated. For these written call options, the Company is required to make a payment to the counterparty if the settlement price for any settlement period is above the ceiling price, and neither party is required to make a payment to the other party if the settlement price for any settlement period is below the ceiling price.
NYMEX WTI [Member]
  
Summary of Outstanding Contracts with Respect to Crude Oil
At September 30, 2014, the Company had outstanding derivative contracts as set forth in the tables below. Subsequent to September 30, 2014, the Company settled substantially all of its outstanding crude oil derivative contracts prior to their contractual maturities as discussed below under the heading Derivative liquidations.
 
 
 
 
 
 
Collars
Crude Oil - NYMEX WTI - as of September 30, 2014

Swaps Weighted Average
Price

Floors

Ceilings
 

 


 

Weighted Average
Price

 

Weighted Average
Price
Period and Type of Contract

Bbls


Range


Range

October 2014 - December 2014












Swaps - WTI

3,335,000


$
96.22









January 2015 - December 2015














Collars - WTI

4,380,000




$
87.00


$
87.00


$95.85 - $103.75

$
98.36
ICE Brent [Member]
  
Summary of Outstanding Contracts with Respect to Crude Oil


 

 

Collars
Crude Oil - ICE Brent - as of September 30, 2014
Swaps Weighted Average Price

Floors

Ceilings
 

 


 

Weighted Average
Price

 

Weighted Average
Price
Period and Type of Contract

Bbls


Range


Range

October 2014 - December 2014












Swaps - ICE Brent

4,508,000


$
103.29









Collars - ICE Brent

552,000




$90.00 - $95.00


$
90.83


$104.70 - $108.85


$
107.13

January 2015 - December 2015












Swaps - ICE Brent

24,637,500


$
100.85









Collars - ICE Brent

730,000




$
95.00


$
95.00


$
107.40


$
107.40

January 2016 - December 2016

















Collars - ICE Brent
 
1,464,000

 
 
 
$
90.00

 
$
90.00

 
$
107.70

 
$
107.70