Derivatives (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

At June 30, 2012, the following cash flow hedges were outstanding:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Jul’12 – Dec’12	Crude oil – swap	6,250 Bbl/day	$97.72	WTI – NYMEX
Jan’13 – Dec’13	Crude oil – swap	4,000 Bbl/day	$102.68	WTI – NYMEX

Jul’12 – Dec’12	Natural gas – swap	30,000 MMBtu/day	$5.05	IF – NYMEX (HH)
Jul’12 – Dec’12	Natural gas – swap	15,000 MMBtu/day	$5.62	IF – PEPL
Jul’12 – Sep’12	Natural gas – swap	20,000 MMBtu/day	$2.98	IF – NYMEX (HH)
Jan’13 – Dec’13	Natural gas – swap	30,000 MMBtu/day	$3.44	IF – NYMEX (HH)
Jan’13 – Dec’13	Natural gas – collar	20,000 MMBtu/day	$3.25-3.72	IF – NYMEX (HH)

Jul’12 – Dec’12	Liquids – swap (1)	180,006 Gal/mo	$2.11	OPIS – Conway
Jul’12 – Dec’12	Liquids – swap (2)	310,000 Gal/mo	$0.69	OPIS – Mont Belvieu

(1)Types of liquids involved are natural gasoline.

(2)Types of liquids involved are ethane.

Schedule Of Cash Flow Hedges Entered

After June 30, 2012, we entered into the following cash flow hedges:



Term	Commodity	Hedged Volume	Price	Hedged Market
Jan’13 – Dec’13	Crude oil – swap	1,000 Bbl/day	$90.20	WTI – NYMEX
Jan’13 – Dec’13	Natural gas – swap	30,000 MMBtu/day	$3.67	IF – NYMEX (HH)

Fair Value Of Derivative Instruments And Locations In Balance Sheets

The following tables present the fair values and locations of the derivative transactions recorded in our unaudited condensed consolidated balance sheets:



		Derivative Assets
		Fair Value
	Balance Sheet Location	June 30, 2012		December 31, 2011
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative asset	$	42,846	$	31,938
Long-term	Non-current derivative asset	9,507		4,514
Total derivatives designated as hedging instruments		52,353		36,452
Total derivative assets		$	52,353	$	36,452



		Derivative Liabilities
		Fair Value
	Balance Sheet Location	June 30, 2012		December 31, 2011
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current portion of derivative liabilities	$	—	$	2,657
Long-term	Non-current derivative liabilities	635		—
Total derivatives designated as hedging instruments		635		2,657
Total derivative liabilities		$	635	$	2,657

Amount Of Gain Or (Loss) Recognized In Accumulated OCI On Derivative

Effect of Derivative Instruments on the Unaudited Condensed Consolidated Statements of Operations (cash flow hedges) for the six months ended June 30:



Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) ⁽¹⁾
	2012		2011
	(In thousands)
Commodity derivatives	$	30,314	$	(3,163	)
Total	$	30,314	$	(3,163	)

(1) Net of taxes.

Gain Or Loss Of Reclassified Accumulated Other Comprehensive Income And Recognized In Income

Effect of Derivative Instruments on the Unaudited Condensed Consolidated Statements of Operations (cash flow hedges) for the three months ended June 30:



Derivative Instrument	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income ⁽¹⁾					Amount of Gain or (Loss) Recognized in Income ⁽²⁾
		2012		2011			2012		2011
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	15,670	$	(3,520	)	$	1,387	$	3,731
Interest rate swaps	Interest, net	—		(1,431		)	—		—
Total		$	15,670	$	(4,951	)	$	1,387	$	3,731


(1)	Effective portion of gain (loss).


(2)	Ineffective portion of gain (loss).

Effect of Derivative Instruments on the Unaudited Condensed Consolidated Statements of Operations (cash flow hedges) for the six months ended June 30:



Derivative Instrument	Location of Gain or (Loss) Reclassified from Accumulated OCI into Income & Location of Gain or (Loss) Recognized in Income	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income ⁽¹⁾					Amount of Gain or (Loss) Recognized in Income ⁽²⁾
		2012		2011			2012			2011
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	23,846	$	(2,885	)	$	(606	)	$	1,822
Interest rate swaps	Interest, net	—		(1,734		)	—			—
Total		$	23,846	$	(4,619	)	$	(606	)	$	1,822


(1)	Effective portion of gain (loss).


(2)	Ineffective portion of gain (loss).

Effect Of Derivative Instruments Recognized In Statement Of Income, Not Designated As Hedging Instruments

Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations (derivatives not designated as hedging instruments) for the six months ended June 30:



Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		2012		2011
		(In thousands)
Commodity derivatives (basis swaps)	Oil and natural gas revenue	$	—	$	(947	)
Total		$	—	$	(947	)

Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations (derivatives not designated as hedging instruments) for the three months ended June 30:



Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		2012		2011
		(In thousands)
Commodity derivatives (basis swaps)	Oil and natural gas revenue	$	—	$	(346	)
Total		$	—	$	(346	)