Hedging Program and Derivatives

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Hedging Program and Derivatives

Hedging Program and Derivatives

The derivative contracts we utilize are based on index prices that may and often do differ from the actual oil and gas prices realized in our operations.  Our derivative contracts do not qualify for hedge accounting; therefore, fluctuations in the market value of the derivative contracts are recognized in earnings during the current period. There are no netting agreements relating to these derivative contracts and there is no policy to offset.

The following table sets forth the summary position of our derivative contracts as of June 30, 2017:

	Oil - WTI
Contract Periods	Daily Volume (Bbl)	Swap Price (per Bbl)
Fixed Swaps
2017	2,474	$	54.48
2018	1,960	$	48.02
2019	1,200	$	54.54
Basis Swap
2017	500	$	0.65

	Gas
Contract Period	Daily Volume (Mmbtu)	Floor (Put)		Ceiling (Call)
Collar Contracts
2017	5,000	$	3.00	$	3.90

The following table illustrates the impact of derivative contracts on the Company’s balance sheet:

Fair Value of Derivative Contracts as of June 30, 2017
	Asset Derivatives			Liability Derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity price derivatives	Derivatives – current	$	4,508	Derivatives – current	$	105
Commodity price derivatives	Derivatives – long-term	2,269		Derivatives – long-term	423
		$	6,777		$	528

Fair Value of Derivative Contracts as of December 31, 2016
	Asset Derivatives			Liability Derivatives
Derivatives not designated as hedging instruments	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Commodity price derivatives	Derivatives – current	$	54	Derivatives – current	$	2,382
Commodity price derivatives	Derivatives – long-term	—		Derivatives – long-term	6,630
		$	54		$	9,012