CONCENTRATION OF RISK

12 Months Ended

Dec. 31, 2013

Concentration Risks, Types, No Concentration Percentage [Abstract]

Concentration Risk Disclosure [Text Block]

CONCENTRATION OF RISK

Accounts Receivable. The following table presents the components of accounts receivable, net of allowance for doubtful accounts:

	As of December 31,
	2013			2012
	(in thousands)
Crude oil, natural gas and NGLs sales	$	66,257		$	39,837
Joint interest billings	20,558			6,896
Natural gas marketing	6,210			8,209
Reimbursements for title defects	—			7,579
Other	2,321			3,385
Allowance for doubtful accounts	(1,261		)	(1,026		)
Accounts receivable, net	$	94,085		$	64,880

Our accounts receivable primarily relates to sales of our crude oil, natural gas and NGLs production, derivative counterparties and other third parties that own working interests in the properties we operate. Inherent to our industry is the concentration of crude oil, natural gas and NGLs sales to a limited number of customers. This concentration has the potential to impact our overall exposure to credit risk in that our customers may be similarly affected by changes in economic and financial conditions, commodity prices or other conditions. We record an allowance for doubtful accounts representing our best estimate of probable losses from our existing accounts receivable. In making our estimate, we consider, among other things, our historical write-offs and overall creditworthiness of our customers. Further, consideration is given to well production data for receivables related to well operations. Our estimate of uncollectible amounts changes periodically. For the each of the years in the three-year period ended December 31, 2013, amounts written off to allowance for doubtful accounts were not material. As of December 31, 2013, we had twocustomers representing 10% or greater of our accounts receivable balance: Suncor Energy Marketing and DCP Midstream, representing 26.3% and 10.8%, respectively, of our accounts receivable balance. The $7.6 million of accounts receivable at December 31, 2012 related to reimbursements for title defects discovered subsequent to closing of the Merit Acquisition. The reimbursement was received in January 2013.

Major Customers. The following table presents the individual customers constituting 10% or more of total revenues:

	Year Ended December 31,
Customer	2013		2012		2011
Suncor Energy Marketing, Inc.	31.3	%	29.8	%	25.7	%
DCP Midstream, LP	14.6	%	12.2	%	11.5	%

Derivative Counterparties. A significant portion of our liquidity is concentrated in derivative instruments that enable us to manage a portion of our exposure to price volatility from producing crude oil and natural gas. These arrangements expose us to credit risk of nonperformance by our counterparties. We primarily use financial institutions who are also major lenders under our revolving credit facility as counterparties to our derivative contracts. To date, we have had no derivative counterparty default losses. We have evaluated the credit risk of our derivative assets from our counterparties using relevant credit market default rates, giving consideration to amounts outstanding for each counterparty and the duration of each outstanding derivative position. Based on our evaluation, we have determined that the potential impact of nonperformance of our current counterparties on the fair value of our derivative instruments is not significant.

The following table presents the counterparties that expose us to credit risk as of December 31, 2013, with regard to our derivative assets:

	Fair Value of Derivative Assets
Counterparty Name	As of December 31, 2013
	(in thousands)
Wells Fargo Bank, N.A. (1)	$	2,496
Bank of Montreal (1)	1,102
Canadian Imperial Bank of Commerce (1)	1,054
Other lenders in our revolving credit facility	3,380
Various (2)	141
Total	$	8,173

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(1)Major lender in our revolving credit facility. See Note 8, Long-Term Debt.

(2)Represents a total of 19 counterparties.