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Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Hedging Positions
The following tables illustrate our derivative positions for calendar year 2016 as of May 4, 2016:
 
Fixed-Price Swaps (NYMEX)
 
Natural Gas
 
Oil
 
Daily Volume
(MMBtus/d)
 
Swap Price
($)
 
Daily Volume
(Bbls/d)
 
Swap Price
($)
2016
10,000

 
4.110

 
1,000

 
49.75

2016
10,000

 
4.120

 
1,000

 
52.78

2016


 


 
1,000

 
90.00

 
 
Costless Collar (NYMEX)
 
Oil
 
Daily Volume
(Bbls/d)
 
Floor Price ($)
 
Ceiling Price ($)
2016
1,000

 
45.00

 
54.75
Location and Fair Value Amounts of Derivative Instruments Reported in Balance Sheet
The following tables disclose the location and fair value amounts of derivatives qualifying as hedging instruments, as reported in our balance sheet, at March 31, 2016 and December 31, 2015:
Fair Value of Derivatives Qualifying as Hedging Instruments at
March 31, 2016
(In millions)
 
Asset Derivatives
 
Liability Derivatives
Description
Balance Sheet Location
 
Fair
Value
 
Balance Sheet Location
 
Fair
Value
Commodity contracts
Current assets: Fair value of
derivative contracts
 
$
30.2

 
Current liabilities: Fair value
of derivative contracts
 
$
—

 
Long-term assets: Fair value
of derivative contracts
 
—

 
Long-term liabilities: Fair
value of derivative contracts
 
—

 
 
 
$
30.2

 
 
 
$
—

 
 
 
 
 
 
 
 
Fair Value of Derivatives Qualifying as Hedging Instruments at
December 31, 2015
(In millions)
 
Asset Derivatives
 
Liability Derivatives
Description
Balance Sheet Location
 
Fair
Value
 
Balance Sheet Location
 
Fair
Value
Commodity contracts
Current assets: Fair value of
derivative contracts
 
$
38.6

 
Current liabilities: Fair value
of derivative contracts
 
$
—

 
Long-term assets: Fair value
of derivative contracts
 
—

 
Long-term liabilities: Fair
value of derivative contracts
 
—

 
 
 
$
38.6

 
 
 
$
—
Before Tax Effect of Derivative Instruments in Statement of Operations
The following table discloses the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three month periods ended March 31, 2016 and 2015:
Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations
for the Three Months Ended March 31, 2016 and 2015
(In millions)
Derivatives in
Cash Flow Hedging
Relationships
 
Amount of Gain
(Loss) Recognized
in Other
Comprehensive
Income on
Derivatives
 
Gain (Loss) Reclassified from
Accumulated Other Comprehensive
Income into Income
(Effective Portion) (a)
 
Gain (Loss) Recognized in Income
on Derivatives
(Ineffective Portion)
 
 
2016
 
2015
 
Location
 
2016
 
2015
 
Location
 
2016
 
2015
Commodity contracts
 
$
4.6

 
$
22.9

 
Operating revenue -
oil/natural gas production
 
$
12.8

 
$
36.8

 
Derivative income
(expense), net
 
$
0.1

 
$
0.9

Total
 
$
4.6

 
$
22.9

 
 
 
$
12.8

 
$
36.8

 
 
 
$
0.1

 
$
0.9


(a)
For the three months ended March 31, 2016, effective hedging contracts increased oil revenue by $9.3 million and increased natural gas revenue by $3.5 million. For the three months ended March 31, 2015, effective hedging contracts increased oil revenue by $34.0 million and increased natural gas revenue by $2.8 million.
Gains or Losses Related to Changes in Fair Value and Cash Settlements on Derivatives Not Qualifying as Hedging Instruments
The following table discloses the before tax effect of our derivatives not qualifying as hedging instruments on the statement of operations, for the three month periods ended March 31, 2016 and 2015.
Gain (Loss) Recognized in Derivative Income (Expense)
(In millions)
 
 
Three Months Ended
March 31,
 
Description
2016
 
2015
 
Commodity contracts:
 
 
 
 
Cash settlements
$
—

 
$
3.1

 
Change in fair value
—

 
(0.9
)
 
Total gain on non-qualifying hedges
$
—

 
$
2.2