DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2013

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Outstanding Commodity Derivatives

As of September 30, 2013, the Company had the following outstanding commodity derivatives:

				Collars							Swaps
				Floor				Ceiling
Type of Contract	Volume		Contract Period	Range		Weighted- Average		Range	Weighted- Average		Weighted- Average
Collar Agreements
Natural gas	4.5	Bcf	Oct. 2013 - Dec. 2013	$	—	$	5.15	$6.18-$6.23	$	6.20
Natural gas	54.5	Bcf	Oct. 2013 - Dec. 2013	$3.09-$4.37		$	3.63	$3.98-$5.02	$	4.27
Natural gas	44.4	Bcf	Oct. 2013 - Dec. 2014	$3.60-$3.96		$	3.78	$4.55-$4.59	$	4.57
Natural gas	124.1	Bcf	Jan. 2014 - Dec. 2014	$3.86-$4.37		$	4.19	$4.63-$4.80	$	4.70
Swap Agreements
Crude oil	276	Mbbl	Oct. 2013 - Dec. 2013								$	101.90

Natural gas prices are stated per Mcf and crude oil prices are stated per barrel.

Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet

		Fair Values of Derivative Instruments
		Derivative Assets				Derivative Liabilities
(In thousands)	Balance Sheet Location	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Derivatives Designated as Hedging Instruments
Commodity contracts	Derivative instruments (current assets)	$	56,831	$	50,824	$	—	$	—
Commodity contracts	Derivative instruments (non-current assets)	8,708		—		—		—
Commodity contracts	Accrued Liabilities	—		—		—		192
		$	65,539	$	50,824	$	—	$	192

Schedule of offsetting of derivative assets and liabilities in the condensed consolidated balance sheet

(In thousands)	September 30, 2013			December 31, 2012
Derivative Assets
Gross amounts of recognized assets	$	66,473		$	54,454
Gross amounts offset in the statement of financial position	(934		)	(3,630		)
Net amounts of assets presented in the statement of financial position	65,539			50,824
Gross amounts of financial instruments not offset in the statement of financial position	—			1,892
Net amount	$	65,539		$	52,716
Derivative Liabilities
Gross amounts of recognized liabilities	$	934		$	3,822
Gross amounts offset in the statement of financial position	(934		)	(3,630		)
Net amounts of liabilities presented in the statement of financial position	—			192
Gross amounts of financial instruments not offset in the statement of financial position	390			—
Net amount	$	390		$	192

Effect of Derivatives Designated as Hedging Instruments on the Condensed Consolidated Statement of Operations

	Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)
	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2013			2012			2013		2012
Commodity Contracts	$	(2,384	)	$	(39,805	)	$	51,783	$	49,299

	Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)
Location of Gain (Loss) Reclassified	Three Months Ended September 30,					Nine Months Ended September 30,
from Accumulated OCI into Income	2013			2012		2013		2012
Natural gas revenues	$	20,766		$	57,139	$	33,822	$	183,867
Crude oil and condensate revenues	(1,082		)	3,799		3,054		5,583
	$	19,684		$	60,938	$	36,876	$	189,450

Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statement of Operations

	Location of Gain (Loss) Recognized in Income on	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	Derivatives	2013		2012			2013		2012
Commodity Contracts	Natural gas revenues	$	—	$	(149	)	$	—	$	(449	)