XML 58 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments Not Designated as Hedging Instruments [Abstract]  
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]
The following table presents the balance sheet location and fair value amounts of our derivative instruments on the condensed consolidated balance sheets as of September 30, 2014 and December 31, 2013:
 
 
 
 
 
Fair Value
Derivative instruments:
 
Balance sheet line item
 
September 30, 2014
 
December 31, 2013
 
 
 
 
 
(in thousands)
Derivative assets:
Current
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
Related to crude oil and natural gas sales
 
Fair value of derivatives
 
$
8,761

 
$
1,086

 
Related to natural gas marketing
 
Fair value of derivatives
 
386

 
361

 
Basis protection contracts
 
 
 
 
 
 
 
Related to crude oil and natural gas sales
 
Fair value of derivatives
 
—

 
74

 
 
 
 
 
9,147

 
1,521

 
Non-current
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
Related to crude oil and natural gas sales
 
Fair value of derivatives
 
17,855

 
4,225

 
Related to natural gas marketing
 
Fair value of derivatives
 
184

 
278

 
 
 
 
 
18,039

 
4,503

Total derivative assets
 
 
 
 
$
27,186

 
$
6,024

 
 
 
 
 
 
 
 
Derivative liabilities:
Current
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
Related to crude oil and natural gas sales
 
Fair value of derivatives
 
$
1,948

 
$
14,437

 
Related to natural gas marketing
 
Fair value of derivatives
 
334

 
247

 
Basis protection contracts
 
 
 
 
 
 
 
Related to crude oil and natural gas sales
 
Fair value of derivatives
 
74

 
—

 
Related to natural gas marketing
 
Fair value of derivatives
 
—

 
5

 
 
 
 
 
2,356

 
14,689

 
Non-current
 
 
 
 
 
 
 
Commodity contracts
 
 
 
 
 
 
 
Related to crude oil and natural gas sales
 
Fair value of derivatives
 
2,077

 
2,609

 
Related to natural gas marketing
 
Fair value of derivatives
 
157

 
233

 
Basis protection contracts
 
 
 
 
 
 
 
Related to crude oil and natural gas sales
 
Fair value of derivatives
 
7

 
—

 
 
 
 
 
2,241

 
2,842

Total derivative liabilities
 
 
 
 
$
4,597

 
$
17,531



    
The following table presents the impact of our derivative instruments on our condensed consolidated statements of operations:

 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Condensed consolidated statement of operations line item
 
2014
 
2013
 
2014
 
2013
 
 
(in thousands)
Commodity price risk management income (loss), net
 
 
 
 
 
 
 
 
Net settlements
 
$
(4,459
)
 
$
(2,051
)
 
$
(21,511
)
 
$
9,629

Net change in fair value of unsettled derivatives
 
94,672

 
(22,087
)
 
34,172

 
(31,704
)
Total commodity price risk management income (loss), net
 
$
90,213

 
$
(24,138
)
 
$
12,661

 
$
(22,075
)
Sales from natural gas marketing
 
 
 
 
 
 
 
 
Net settlements
 
$
210

 
$
240

 
$
(376
)
 
$
267

Net change in fair value of unsettled derivatives
 
170

 
(311
)
 
123

 
340

Total sales from natural gas marketing
 
$
380

 
$
(71
)
 
$
(253
)
 
$
607

Cost of natural gas marketing
 
 
 
 
 
 
 
 
Net settlements
 
$
(182
)
 
$
(188
)
 
$
502

 
$
(125
)
Net change in fair value of unsettled derivatives
 
(191
)
 
278

 
(199
)
 
(281
)
Total cost of natural gas marketing
 
$
(373
)
 
$
90

 
$
303

 
$
(406
)
 
 
 
 
 
 
 
 
 

All of our financial derivative agreements contain master netting provisions that provide for the net settlement of all contracts through a single payment in the event of early termination. Our fixed-price physical purchase and sale agreements that qualify as derivative contracts are not subject to master netting provisions and are not significant. We have elected not to offset the fair value positions recorded on our condensed consolidated balance sheets.

The following table reflects the impact of netting agreements on gross derivative assets and liabilities as of September 30, 2014 and December 31, 2013:
As of September 30, 2014
 
Derivative instruments, recorded in condensed consolidated balance sheet, gross
 
Effect of master netting agreements
 
Derivative instruments, net
 
 
(in thousands)
Asset derivatives:
 
 
 
 
 
 
Derivative instruments, at fair value
 
$
27,186

 
$
(4,106
)
 
$
23,080

 
 
 
 
 
 
 
Liability derivatives:
 
 
 
 
 
 
Derivative instruments, at fair value
 
$
4,597

 
$
(4,106
)
 
$
491

 
 
 
 
 
 
 

As of December 31, 2013
 
Derivative instruments, recorded in condensed consolidated balance sheet, gross
 
Effect of master netting agreements
 
Derivative instruments, net
 
 
(in thousands)
Asset derivatives:
 
 
 
 
 
 
Derivative instruments, at fair value
 
$
6,024

 
$
(4,637
)
 
$
1,387

 
 
 
 
 
 
 
Liability derivatives:
 
 
 
 
 
 
Derivative instruments, at fair value
 
$
17,531

 
$
(4,637
)
 
$
12,894

 
 
 
 
 
 
 

Derivative activity related to PDCM is included in Note 12, Assets Held for Sale, Divestitures and Discontinued Operations.