Derivatives (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Non-designated hedges outstanding

At September 30, 2014, the following non-designated hedges were outstanding:

Term	Commodity	Hedged Volume	Weighted Average Fixed Price for Swaps	Hedged Market
Oct’14 – Dec’14	Crude oil – swap	3,000 Bbl/day	$91.77	WTI – NYMEX
Oct’14 – Dec’14	Crude oil – collar	4,000 Bbl/day	$90.00-96.08	WTI – NYMEX
Jan’15 – Dec’15	Crude oil – swap	1,000 Bbl/day	$95.00	WTI – NYMEX
Oct’14 – Dec’14	Natural gas – swap	80,000 MMBtu/day	$4.24	NYMEX (HH)
Oct’14 – Dec’14	Natural gas – collar	10,000 MMBtu/day	$3.75-4.37	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, 2014		December 31, 2013
		(In thousands)
Commodity derivatives:
Current	Current derivative asset	$	4,047	$	515
Long-term	Non-current derivative asset	658		—
Total derivative assets		$	4,705	$	515

		Derivative Liabilities
		Fair Value
	Balance Sheet Location	September 30, 2014		December 31, 2013
		(In thousands)
Commodity derivatives:
Current	Current derivative liabilities	$	—	$	5,561
Long-term	Non-current derivative liabilities	—		—
Total derivative liabilities		$	—	$	5,561

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

Effect of derivative instruments on the 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)
	2014		2013
	(In thousands)
Commodity derivatives	$	—	$	(963	)

_______________________

(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 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)
		2014		2013			2014		2013
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	—	$	(202	)	$	—	$	—
Commodity derivatives	Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net	—		—			—		116
Total		$	—	$	(202	)	$	—	$	116

 _______________________

(1) Effective portion of gain (loss).

(2) Ineffective portion of gain (loss).

Effect of derivative instruments on the 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)
		2014		2013			2014		2013
		(In thousands)
Commodity derivatives	Oil and natural gas revenue	$	—	$	(3,210	)	$	—	$	—
Commodity derivatives	Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net	—		—			—		(252		)
Total		$	—	$	(3,210	)	$	—	$	(252	)

 _______________________

(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 Unaudited Condensed Consolidated Statements of Income (derivatives not designated as hedging instruments) for the nine 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
		2014			2013
		(In thousands)
Commodity derivatives	Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net (1)	$	(9,234	)	$	(3,456	)
Total		$	(9,234	)	$	(3,456	)

_______________________

(1) Amounts settled during the 2014 and 2013 periods include losses of $19.0 million and $1.6 million, respectively.

Effect of derivative instruments on the 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
		2014		2013
		(In thousands)
Commodity derivatives	Gain (loss) on derivatives not designated as hedges and hedge ineffectiveness, net (1)	$	19,841	$	(13,508	)
Total		$	19,841	$	(13,508	)

_______________________

(1) Amounts settled during the 2014 and 2013 periods include losses of $1.0 million and $2.4 million, respectively.