Derivative Financial Instruments (Tables)

1 Months Ended

12 Months Ended

Feb. 12, 2014

Dec. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

Commodity Derivative Contracts Entered into After December 31, 2013

The following tables summarize all commodity derivative contracts entered between January 1, 2014 and February 12, 2014:

Gas Contracts

Gas Swaps



Contract Period	Volumes	Weighted- Average Contract Price
	(MMBtu)	(per MMBtu)
First quarter 2014	261,000	$	4.39
Second quarter 2014	365,000	$	3.84
Third quarter 2014	341,000	$	3.89
Fourth quarter 2014	321,000	$	3.97
2015	1,133,000	$	3.72
2016	69,000	$	4.12
All gas swaps*	2,490,000

*Natural gas swaps are comprised of IF NNG Ventura (30%) and IF CIG N System (70%).

NGL Contracts

NGL Swaps



Contract Period	Volumes	Weighted- Average Contract Price
	(Bbls)	(per Bbl)
First quarter 2014	516,000	$	54.85
Second quarter 2014	531,000	$	52.53
Third quarter 2014	416,000	$	52.47
Fourth quarter 2014	334,000	$	52.52
All NGL swaps*	1,797,000

*NGL swaps are comprised of OPIS Natural Gasoline Mt Belv Non TET (17%) and OPIS Propane Mt Belv TET (83%).

The following tables summarize the approximate volumes and average contract prices of contracts the Company had in place as of December 31, 2013:

Oil Contracts

Oil Swaps



Contract Period	Volumes	Weighted- Average Contract Price
	(Bbls)	(per Bbl)
First quarter 2014	2,600,000	$	96.92
Second quarter 2014	2,373,000	$	94.95
Third quarter 2014	973,000	$	95.25
Fourth quarter 2014	891,000	$	95.16
2015	2,911,000	$	89.06
2016	2,704,000	$	85.19
All oil swaps*	12,452,000

*Oil swaps are comprised of NYMEX WTI (97%) and Argus LLS (3%).

Oil Collars



Contract Period	NYMEX WTI Volumes	Weighted- Average Floor Price		Weighted- Average Ceiling Price
	(Bbls)	(per Bbl)		(per Bbl)
First quarter 2014	694,000	$	80.97	$	115.07
Second quarter 2014	431,000	$	85.00	$	102.50
Third quarter 2014	973,000	$	85.00	$	102.58
Fourth quarter 2014	923,000	$	85.00	$	102.63
2015	3,366,000	$	85.00	$	94.25
All oil collars	6,387,000

Natural Gas Contracts

Gas Swaps



Contract Period	Volumes	Weighted- Average Contract Price
	(MMBtu)	(per MMBtu)
First quarter 2014	33,651,000	$	4.25
Second quarter 2014	25,729,000	$	3.96
Third quarter 2014	26,398,000	$	4.01
Fourth quarter 2014	23,965,000	$	4.01
2015	63,317,000	$	4.03
2016	39,014,000	$	4.18
2017	23,430,000	$	4.21
2018	10,200,000	$	4.31
All gas swaps*	245,704,000

*Natural gas swaps are comprised of IF El Paso Permian (3%), IF HSC (77%), IF NGPL TXOK (3%), IF NNG Ventura (2%), IF PEPL (6%), IF Reliant N/S (8%), and IF NGPL MidCon (1%).

Gas Collars



Contract Period	Volumes	Weighted- Average Floor Price		Weighted- Average Ceiling Price
	(MMBtu)	(per MMBtu)		(per MMBtu)
First quarter 2014	1,540,000	$	4.39	$	5.58
Second quarter 2014	4,194,000	$	4.38	$	5.29
2015	14,480,000	$	3.96	$	4.30
All gas collars*	20,214,000

*Natural gas collars are comprised of IF El Paso Permian (2%), IF HSC (57%), IF NGPL TXOK (3%), IF NNG Ventura (5%), IF PEPL (7%), IF Reliant N/S (14%), and IF TETCO STX (12%).

NGL Contracts

NGL Swaps



Contract Period	Volumes	Weighted- Average Contract Price
	(Bbls)	(per Bbl)
First quarter 2014	913,000	$	59.72
Second quarter 2014	565,000	$	63.22
Third quarter 2014	544,000	$	62.34
Fourth quarter 2014	527,000	$	61.57
All NGL swaps*	2,549,000

*NGL swaps are comprised of OPIS IsoButane Mt Belv Non TET (2%), OPIS Natural Gasoline Mt Belv Non TET (34%), OPIS NButane Mt Belv Non TET (3%), and OPIS Propane Mt Belv TET (61%).

Schedule of fair value of derivatives in accompanying balance sheets

The following tables detail the fair value of derivatives recorded in the accompanying balance sheets, by category:



	As of December 31, 2013
	Derivative Assets			Derivative Liabilities
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
	(in thousands)
Commodity Contracts	Current assets	$	21,559	Current liabilities	$	26,380
Commodity Contracts	Noncurrent assets	30,951		Noncurrent liabilities	4,640
Derivatives not designated as hedging instruments		$	52,510		$	31,020



	As of December 31, 2012
	Derivative Assets			Derivative Liabilities
	Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
	(in thousands)
Commodity Contracts	Current assets	$	37,873	Current liabilities	$	8,999
Commodity Contracts	Noncurrent assets	16,466		Noncurrent liabilities	6,645
Derivatives not designated as hedging instruments		$	54,339		$	15,644

Schedule of the potential effects of master netting arrangements

The following table provides a reconciliation between the gross assets and liabilities reflected on the accompanying balance sheets and the potential effects of master netting arrangements on the fair value of the Company's derivative contracts:



	Derivative Assets						Derivative Liabilities
	As of December 31,						As of December 31,
Offsetting of Derivative Assets and Liabilities	2013			2012			2013			2012
	(in thousands)
Gross amounts presented in the accompanying balance sheets	$	52,510		$	54,339		$	(31,020	)	$	(15,644	)
Amounts not offset in the accompanying balance sheets	(30,652		)	(13,400		)	30,652			13,400
Net amounts	$	21,858		$	40,939		$	(368	)	$	(2,244	)

Schedule of unrealized and realized gains and losses on derivative instruments in the statement of operations

The following table summarizes the components of derivative (gain) loss presented in the accompanying statements of operations:



	For the Years Ended December 31,
	2013			2012			2011
	(in thousands)
Derivative cash settlement (gain) loss:
Oil contracts	$	15,161		$	11,893		$	22,633
Gas contracts	(30,338		)	(47,270		)	(10,711		)
NGL contracts	(6,885		)	(8,887		)	13,749
Total derivative cash settlement (gain) loss ⁽¹⁾	(22,062		)	(44,264		)	25,671

Derivative (gain) loss:
Oil contracts	(496		)	(31,981		)	(3,391		)
Gas contracts	16,285			31,777			(64,310		)
NGL contracts	3,193			(11,162		)	4,944
Total derivative gain ⁽²⁾	$	(3,080	)	$	(55,630	)	$	(37,086	)


⁽¹⁾	Total derivative cash settlement gain (loss) is reported in the derivative cash settlement gain (loss) line item on the consolidated statements of cash flows within net cash provided by operating activities.


⁽²⁾	Total derivative gain is reported in the derivative gain line item on the consolidated statements of cash flows within net cash provided by operating activities.

Detail of the effect of derivative instruments reclassified from AOCI to the statement of operations (net of income tax)

The following table details the effect of derivative instruments on AOCIL and the accompanying statements of operations (net of income tax):



		Location on Accompanying Statements of Operations	For the Years Ended December 31,
	Derivatives	Location on Accompanying Statements of Operations	2013		2012			2011
			(in thousands)
Amount reclassified from AOCIL	Commodity Contracts	Realized hedge gain (loss)	$	1,115	$	(2,264	)	$	12,997

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details