Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following table illustrates our derivative positions for calendar years 2015 and 2016 as of August 5, 2015:


	Fixed-Price Swaps (NYMEX)
	Natural Gas				Oil
	Daily Volume (MMBtus/d)		Swap Price ($)		Daily Volume (Bbls/d)		Swap Price ($)
2015		10,000		4.005		1,000		89.00
2015		10,000		4.120		1,000		90.00
2015		10,000		4.150		1,000		90.25
2015		10,000		4.165		1,000		90.40
2015		10,000		4.220		1,000		91.05
2015		10,000		4.255		1,000		93.28
2015						1,000		93.37
2015						1,000		94.85
2015						1,000		95.00

2016		10,000		4.110		1,000		90.00
2016		10,000		4.120

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 June 30, 2015 and December 31, 2014:


Fair Value of Derivatives Qualifying as Hedging Instruments at June 30, 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	$	67.5	Current liabilities: Fair value of derivative contracts	$	—
	Long-term assets: Fair value of derivative contracts		8.2	Long-term liabilities: Fair value of derivative contracts		—

		$	75.7		$	—


Fair Value of Derivatives Qualifying as Hedging Instruments at December 31, 2014 (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	$	127.0	Current liabilities: Fair value of derivative contracts	$	—
	Long-term assets: Fair value of derivative contracts		14.3	Long-term liabilities: Fair value of derivative contracts		—

		$	141.3		$	—

Before Tax Effect of Derivative Instruments in Statement of Operations

The following tables disclose the before tax effect of derivatives qualifying as hedging instruments, as reported in the statement of operations, for the three and six months ended June 30, 2015 and 2014:


Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Three Months Ended June 30, 2015 and 2014 (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)
	2015			2014			Location	2015		2014			Location	2015			2014
Commodity contracts	($	18.8	)	($	26.0	)	Operating revenue - oil/gas production	$	30.4	($	9.2	)	Derivative income (expense), net	($	0.4	)	($	1.0	)

Total	($	18.8	)	($	26.0	)		$	30.4	($	9.2	)		($	0.4	)	($	1.0	)

(a)

For the three months ended June 30, 2015, effective hedging contracts increased oil revenue by $26.4 million and increased gas revenue by $4.0 million. For the three months ended June 30, 2014, effective hedging contracts decreased oil revenue by $6.1 million and decreased gas revenue by $3.1 million.


Effect of Derivatives Qualifying as Hedging Instruments on the Statement of Operations for the Six Months Ended June 30, 2015 and 2014 (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)
	2015		2014			Location	2015		2014			Location	2015		2014
Commodity contracts	$	4.1	($	43.4	)	Operating revenue - oil/gas production	$	67.2	($	16.3	)	Derivative income (expense), net	$	0.5	($	1.6	)

Total	$	4.1	($	43.4	)		$	67.2	($	16.3	)		$	0.5	($	1.6	)

(a)	For the six months ended June 30, 2015, effective hedging contracts increased oil revenue by $60.4 million and increased gas revenue by $6.8 million. For the six months ended June 30, 2014, effective hedging contracts decreased oil revenue by $8.6 million and decreased gas revenue by $7.7 million.

Location and Fair Value Amounts of Derivative Instruments Not Qualifying as Hedging Instruments Reported in Balance Sheet

The following table discloses the location and fair value amounts of our derivatives not qualifying as hedging instruments, as reported in our balance sheet, at June 30, 2015 and December 31, 2014:


Fair Value of Derivatives Not Qualifying as Hedging Instruments (In millions)
Description	Balance Sheet Location	June 30, 2015		December 31, 2014
Commodity contracts	Current assets: Fair value of derivative contracts	$	6.8	$	12.1

Gains or Losses Related to Changes in Fair Value and Cash Settlements on Derivatives Not Qualifying as Hedging Instruments

Gains or losses related to changes in fair value and cash settlements for derivatives not qualifying as hedging instruments are recorded as derivative income (expense) in the statement of operations. The following table discloses the before tax effect of our derivatives not qualifying as hedging instruments on the statement of operations, for the three and six months ended June 30, 2015 and 2014.


Amount of Gain (Loss) Recognized in Derivative Income (Expense) (In millions)
	Three Months Ended June 30,						Six Months Ended June 30,
Description	2015			2014			2015			2014
Commodity contracts:
Cash settlements	$	4.1		$	—		$	7.2		$	—
Change in fair value		(4.4	)		(1.5	)		(5.3	)		(1.5	)

Total gains (losses) on non-qualifying hedges	($	0.3	)	($	1.5	)	$	1.9		($	1.5	)