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Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding commodity derivatives
As of December 31, 2016, the Company had the following outstanding commodity derivatives instruments:
 
 
 
 
 
 
 
Collars
 
 
 
 
 
 
 
 
 
 
 
Floor
 
Ceiling
 
Swaps
 
Basis Swaps
Type of Contract
 
Volume
 
Contract Period
 
Range
 
Weighted-Average
 
Range
 
Weighted- Average
 
Weighted- Average
 
Weighted- Average
Natural gas
 
35.5

Bcf
 
Jan. 2017 - Dec. 2017
 

 


 

 


 
$
3.12

 
 
Natural gas
 
16.2

Bcf
 
Feb. 2017 - Dec. 2017
 
 
 
 
 
 
 
 
 
$
3.46

 
 
Natural gas
 
35.5

Bcf
 
Jan. 2017 - Dec. 2017
 
$—
 
$
3.09

 
$3.42-$3.45
 
$
3.43

 


 


Natural gas
 
21.3

Bcf
 
Jan. 2018 - Dec. 2019
 

 


 

 


 


 
$
0.42

Crude oil
 
1.8

Mmbbl
 
Jan. 2017 - Dec. 2017
 
$—
 
$
50.00

 
$56.25-$56.50
 
$
56.39

 


 
 
Effect of Derivative Instruments on the Consolidated Balance Sheet
Effect of Derivative Instruments on the Consolidated Balance Sheet
 
 
 
 
Fair Values of Derivative Instruments
 
 
 
 
Derivative Assets
 
Derivative Liabilities
 
 
 
 
December 31,
 
December 31,
(In thousands)
 
Balance Sheet Location
 
2016
 
2015
 
2016
 
2015
Commodity contracts
 
Other assets (non-current)
 
$
2,991

 
$
—

 
$
—

 
$
—

Commodity contracts
 
Derivative instruments (current)
 
—

 
—

 
40,259

 
—

 
 
 
 
$
2,991

 
$
—

 
$
40,259

 
$
—
Schedule of offsetting of derivative liabilities in the condensed consolidated balance sheet
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
 
 
December 31,
(In thousands)
 
2016
 
2015
Derivative assets
 
 

 
 

Gross amounts of recognized assets
 
$
2,991

 
$
—

Gross amounts offset in the statement of financial position
 
—

 
—

Net amounts of assets presented in the statement of financial position
 
2,991

 
—

Gross amounts of financial instruments not offset in the statement of financial position
 
—

 
—

Net amount
 
$
2,991

 
$
—

 
 
 
 
 
Derivative liabilities
 
 
 
 
Gross amounts of recognized liabilities
 
$
40,259

 
$
—

Gross amounts offset in the statement of financial position
 
—

 
—

Net amounts of liabilities presented in the statement of financial position
 
40,259

 
—

Gross amounts of financial instruments not offset in the statement of financial position
 
757

 
—

Net amount
 
$
41,016

 
$
—
Schedule of offsetting of derivative assets in the condensed consolidated balance sheet
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
 
 
December 31,
(In thousands)
 
2016
 
2015
Derivative assets
 
 

 
 

Gross amounts of recognized assets
 
$
2,991

 
$
—

Gross amounts offset in the statement of financial position
 
—

 
—

Net amounts of assets presented in the statement of financial position
 
2,991

 
—

Gross amounts of financial instruments not offset in the statement of financial position
 
—

 
—

Net amount
 
$
2,991

 
$
—

 
 
 
 
 
Derivative liabilities
 
 
 
 
Gross amounts of recognized liabilities
 
$
40,259

 
$
—

Gross amounts offset in the statement of financial position
 
—

 
—

Net amounts of liabilities presented in the statement of financial position
 
40,259

 
—

Gross amounts of financial instruments not offset in the statement of financial position
 
757

 
—

Net amount
 
$
41,016

 
$
—
Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Loss)
The effective portion of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives is as follows:
 
Year Ended December 31,
(In thousands)
2016
 
2015
 
2014
Commodity contracts
$
—

 
$
—

 
$
(133,310
)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss)

The effective portion of gain (loss) reclassified from accumulated other comprehensive income (loss) into income is as follows:
 
Year Ended December 31,
(In thousands)
2016
 
2015
 
2014(1)
Natural gas revenues
$
—

 
$
—

 
$
(143,577
)
Crude oil and condensate revenues
—

 
—

 
(626
)
 
$
—

 
$
—

 
$
(144,203
)
 
(1) The Company ceased hedge accounting effective April 1, 2014. As a result, a loss of approximately $73.4 million related to amounts previously frozen in accumulated other comprehensive income (loss) was reclassified into income during 2014.
Effect of Derivative Instruments on the Consolidated Statement of Operations
Effect of Derivative Instruments on the Consolidated Statement of Operations
 
 
Year Ended December 31,
(In thousands)
 
2016
 
2015
 
2014
Derivatives Designated as Hedges
 
 
 
 
 
 
Cash received (paid) on settlement of derivative instruments
 
 
 
 
 
 
Natural gas
 
$
—

 
$
—

 
$
(70,557
)
Crude oil and condensate
 
—

 
—

 
(218
)
 
 
$
—

 
$
—

 
$
(70,775
)
Derivatives Not Designated as Hedges
 
 
 
 
 
 
Cash received (paid) on settlement of derivative instruments
 
 
 
 
 
 
Natural gas(1)
 
$
—

 
$
—

 
$
(73,020
)
Crude oil and condensate(1)
 
—

 
—

 
(408
)
Gain (loss) on derivative instruments
 
(1,682
)
 
194,289

 
81,716

Non-cash gain (loss) on derivative instruments
 
 
 
 
 
 
Gain (loss) on derivative instruments
 
(37,268
)
 
(137,603
)
 
137,603

 
 
$
(38,950
)
 
$
56,686

 
$
145,891

 
 
$
(38,950
)
 
$
56,686

 
$
75,116


 
(1) Relates entirely to the reclassification from accumulated other comprehensive income (loss) of previously frozen losses associated with derivatives that were de-designated as cash flow hedges on April 1, 2014.