Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2013

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities

(9) Derivative Instruments and Hedging Activities

We enter into derivative instruments to reduce exposure to fluctuations in the price of oil and natural gas for a portion of our production. Our fixed-price swaps fix the sales price for a limited amount of our production and, for the contracted volumes, eliminate our ability to benefit from increases in the sales price of the production. Derivative instruments are carried at their fair value on the consolidated balance sheets as Fair value of commodity derivative instruments and all gains and losses due to changes in fair market value and contract settlements are recorded in Gain (loss) on derivative instruments in Other income (expense) in the consolidated statements of operations. See Note 10 for information regarding fair values of our derivative instruments.

The following tables set forth our derivative instruments outstanding as of December 31, 2013.

Oil Contracts

	Fixed-Price Swaps
	Daily Average				Average
	Volume		Volume		Swap Price
Remaining Contract Term	(Bbls)		(Bbls)		($/Bbl)
January 2014		16,350		506,850		93.11
February 2014		16,350		457,800		93.11
March 2014		16,350		506,850		93.11
April 2014		15,350		460,500		94.27
May 2014		15,350		475,850		94.27
June 2014		15,350		460,500		94.27
July 2014		14,350		444,850		93.56
August 2014		8,750		271,250		94.28
September 2014		8,750		262,500		94.28
October 2014		8,750		271,250		94.28
November 2014		8,750		262,500		94.28
December 2014		11,700		362,700		91.90
2014 Total		12,996		4,743,400		93.67
January 2015 - December 2015		1,500		547,500		97.70

Gas Contracts

	Fixed-Price Swaps
	Daily Average				Average
	Volume		Volume		Swap Price
Remaining Contract Term	(Mmbtu)		(Mmbtu)		($/Mmbtu)
January 2014 - December 2014		5,000		1,825,000		4.01
January 2015 - December 2015		4,300		1,569,500		4.31

The following table presents information about the components of loss on derivative instruments.

	Year Ended December 31,
	2013		2012		2011
	(in thousands)
Change in fair market value	$	(20,884)	$	(9,491)	$	11,475
Loss on settlement		(11,477)		(3,814)		(17,345)
Total loss on derivative instruments	$	(32,361)	$	(13,305)	$	(5,870)