Derivatives

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

Commodity Derivatives

From time to time, we utilize commodity derivatives, consisting of swaps, floors and collars, to attempt to optimize the price received for our oil and gas production.  When using swaps to hedge oil and natural gas production, we receive a fixed price for the respective commodity and pay a floating market price as defined in each contract, generally New York Mercantile Exchange (“NYMEX”) futures prices, resulting in a net amount due to or from the counterparty.  In floor transactions, we receive a fixed price (put strike price) if the market price falls below the put strike price for the respective commodity.  If the market price is greater than the put strike price, no payments are due from either party.  Costless collars are a combination of puts and calls, and contain a fixed floor price (put strike price) and ceiling price (call strike price).  If the market price for the respective commodity exceeds the call strike price or falls below the put strike price, then we receive the fixed price and pay the market price.  If the market price is between the call and the put strike prices, no payments are due from either party. Commodity derivatives are settled monthly as the contract production periods mature.

The following summarizes information concerning our net positions in open commodity derivatives applicable to periods subsequent to December 31, 2016.  Settlement prices of commodity derivatives are based on NYMEX futures prices.

Swaps:

	Oil
	MBbls	Price
Production Period:
1st Quarter 2017	178	$	44.85
2nd Quarter 2017	165	$	44.65
3rd Quarter 2017	37	$	50.00
4th Quarter 2017	27	$	50.00
	407

Costless Collars:

	Oil
	MBbls	Weighted Average Floor Price		Weighted Average Ceiling Price
Production Period:
1st Quarter 2017	355	$	42.26	$	51.67
2nd Quarter 2017	354	$	42.27	$	51.67
3rd Quarter 2017	356	$	42.27	$	51.65
4th Quarter 2017	350	$	42.27	$	51.66
	1,415

Accounting for Commodity Derivatives

We did not designate any of our commodity derivatives as cash flow hedges; therefore, all changes in the fair value of these contracts prior to maturity, plus any realized gains or losses at maturity, were recorded as other income (expense) in our consolidated statements of operations and comprehensive income (loss). 

Effect of Commodity Derivative Instruments on the Consolidated Balance Sheets

	Fair Value of Commodity Derivative Instruments as of December 31, 2016
	Asset Commodity Derivatives			Liability Commodity Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
		(In thousands)			(In thousands)
Commodity derivatives not designated as hedging instruments:
Commodity derivatives	Fair value of commodity derivatives:			Fair value of commodity derivatives:
	Current	$	—	Current	$	12,895
	Non-current	—		Non-current	—
Total		$	—		$	12,895

	Fair Value of Commodity Derivative Instruments as of December 31, 2015
	Asset Commodity Derivatives			Liability Commodity Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
		(In thousands)			(In thousands)
Commodity derivatives not designated as hedging instruments:
Commodity derivatives	Fair value of commodity derivatives:			Fair value of commodity derivatives:
	Current	$	—	Current	$	—
	Non-current	—		Non-current	—
Total		$	—		$	—

Gross to Net Presentation Reconciliation of Commodity Derivative Assets and Liabilities

	December 31, 2016
	Assets		Liabilities
	(In thousands)
Fair value of commodity derivatives — gross presentation	$	—	$	12,895
Effects of netting arrangements	—		—
Fair value of commodity derivatives — net presentation	$	—	$	12,895

	December 31, 2015
	Assets		Liabilities
	(In thousands)
Fair value of commodity derivatives — gross presentation	$	—	$	—
Effects of netting arrangements	—		—
Fair value of commodity derivatives — net presentation	$	—	$	—

Our commodity derivative contracts are with JPMorgan Chase Bank, N.A. and Shell Trading Risk Management LLC.

Effect of Commodity Derivative Instruments Recognized in Earnings on the Consolidated Statements of Operations and Comprehensive Income (Loss)

	Amount of Gain or (Loss) Recognized in Earnings
	Year Ended December 31,
Location of Gain or (Loss) Recognized in Earnings	2016			2015		2014
	(In thousands)
Commodity derivatives not designated as hedging instruments:
Commodity derivatives:
Other income (expense) -
Gain (loss) on commodity derivatives	$	(20,289	)	$	12,519	$	4,789
Total	$	(20,289	)	$	12,519	$	4,789