Derivatives (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

At September 30, 2013, we had the following outstanding cash flow hedges:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Oct'13 - Dec'13	Crude oil – swap	5,500 Bbl/day	$99.71	WTI – NYMEX
Oct'13 - Dec'13	Natural gas – swap	60,000 MMBtu/day	$3.56	IF – NYMEX (HH)
Oct'13 - Dec'13	Natural gas – collar	20,000 MMBtu/day	$3.25-3.72	IF – NYMEX (HH)

Non-designated hedges outstanding

At September 30, 2013, we had the following outstanding non-designated hedges:



Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Oct'13 - Dec'13	Crude oil – swap	3,000 Bbl/day	$94.59	WTI – NYMEX
Jan'14 - Dec'14	Crude oil – swap	3,000 Bbl/day	$91.77	WTI – NYMEX
Jan'14 - Jun'14	Crude oil – swap	500 Bbl/day	$100.03	WTI – NYMEX
Jan'14 - Dec'14	Crude oil – collar	4,000 Bbl/day	$90.00-96.08	WTI – NYMEX
Oct'13 - Dec'13	Natural gas – swap	20,000 MMBtu/day	$3.94	IF – NYMEX (HH)
Jan'14 - Dec'14	Natural gas – swap	50,000 MMBtu/day	$4.24	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	September 30, 2013		December 31, 2012
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative asset	$	486	$	13,674
Long-term	Non-current derivative asset	—		—
Total derivatives designated as hedging instruments		486		13,674



Derivatives not designated as hedging instruments
Commodity derivatives:
Current	Current derivative asset	4,028		2,878
Long-term	Non-current derivative asset	1,133		—
Total derivatives not designated as hedging instruments		5,161		2,878
Total derivative assets		$	5,647	$	16,552



		Derivative Liabilities
		Fair Value
	Balance Sheet Location	September 30, 2013		December 31, 2012
		(In thousands)
Derivatives designated as hedging instruments
Commodity derivatives:
Current	Current derivative liabilities	$	1,750	$	1,005
Long-term	Non-current derivative liabilities	—		—
Total derivatives designated as hedging instruments		1,750		1,005



Derivatives not designated as hedging instruments
Commodity derivatives:
Current	Current derivative liabilities	4,730		943
Long-term	Non-current derivative liabilities	938		562
Total derivatives not designated as hedging instruments		5,668		1,505
Total derivative liabilities		$	7,418	$	2,510

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

This table shows the effect of derivative instruments on our Unaudited Condensed Consolidated Statements of Income (cash flow hedges) for the nine months ended September 30:



Derivatives in Cash Flow Hedging Relationships	Amount of Gain or (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) ⁽¹⁾
	2013			2012
	(In thousands)
Commodity derivatives	$	(963	)	$	9,912

(1) Net of taxes.

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

This table shows the effect of derivative instruments on our Unaudited Condensed Consolidated Statements of Income (cash flow hedges) for the three months ended September 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⁾
		2013			2012		2013			2012
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	(3,210	)	$	14,243	$	—		$	—
Commodity derivatives	Loss on derivatives not designated as hedges and hedge ineffectiveness, net	—			—		(252		)	(4,015		)
Total		$	(3,210	)	$	14,243	$	(252	)	$	(4,015	)


(1)	Effective portion of gain (loss).


(2)	Ineffective portion of gain (loss).

This table shows the effect of derivative instruments on our Unaudited Condensed Consolidated Statements of Income (cash flow hedges) for the nine months ended September 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⁾
		2013			2012		2013		2012
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	(202	)	$	38,088	$	—	$	—
Commodity derivatives	Loss on derivatives not designated as hedges and hedge ineffectiveness, net	—			—		116		(4,621		)
Total		$	(202	)	$	38,088	$	116	$	(4,621	)


(1)	Effective portion of gain (loss).


(2)	Ineffective portion of gain (loss).

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

This table shows the effect of derivative instruments on our Unaudited Condensed Consolidated Statements of Income (derivatives not designated as hedging instruments) for the three months ended September 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 ⁽¹⁾
		2013			2012
		(In thousands)
Commodity derivatives	Loss on derivatives not designated as hedges and hedge ineffectiveness, net	$	(13,508	)	$	—
Total		$	(13,508	)	$	—


(1)	Amount settled during the period is a loss of ($2.434) and $0, respectively.



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 ⁽¹⁾
		2013			2012
		(In thousands)
Commodity derivatives	Loss on derivatives not designated as hedges and hedge ineffectiveness, net	$	(3,456	)	$	—
Total		$	(3,456	)	$	—


(1)	Amount settled during the period is a loss of ($1.575) and $0, respectively.