Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Risk Management Activities (Tables)

v2.4.0.8
Derivative Instruments and Risk Management Activities (Tables)
9 Months Ended
Sep. 30, 2013
Derivative Instruments and Risk Management Activities  
Schedule of outstanding commodity derivatives

 

 

 

 

MMbtu/day

 

Bbls/day

 

Price

 

Three Months ending December 31, 2013:

 

 

 

 

 

 

 

CGTAP-TCO

 

260,000

 

 

 

$

4.56

 

Dominion South

 

190,844

 

 

 

4.89

 

NYMEX-WTI

 

 

4,300

 

103.97

 

2013 Total

 

450,844

 

4,300

 

 

 

Year ending December 31, 2014:

 

 

 

 

 

 

 

CGLA

 

10,000

 

 

 

$

3.87

 

CGTAP-TCO

 

210,000

 

 

 

5.11

 

Dominion South

 

160,000

 

 

 

5.15

 

NYMEX

 

120,000

 

 

 

4.00

 

NYMEX-WTI

 

 

3,000

 

96.53

 

2014 Total

 

500,000

 

3,000

 

 

 

Year ending December 31, 2015:

 

 

 

 

 

 

 

CGLA

 

40,000

 

 

 

$

4.00

 

CGTAP-TCO

 

130,000

 

 

 

4.93

 

Dominion South

 

230,000

 

 

 

5.60

 

NYMEX

 

80,000

 

 

 

4.10

 

2015 Total

 

480,000

 

 

 

 

 

Year ending December 31, 2016:

 

 

 

 

 

 

 

CGLA

 

170,000

 

 

 

$

4.09

 

CGTAP-TCO

 

80,000

 

 

 

4.67

 

Dominion South

 

272,500

 

 

 

5.35

 

NYMEX

 

60,000

 

 

 

4.25

 

2016 Total

 

582,500

 

 

 

 

 

Year ending December 31, 2017:

 

 

 

 

 

 

 

CGLA

 

420,000

 

 

 

$

4.27

 

NYMEX

 

220,000

 

 

 

4.44

 

CCG

 

70,000

 

 

 

4.57

 

CGTAP-TCO

 

20,000

 

 

 

4.02

 

2017 Total

 

730,000

 

 

 

 

 

Year ending December 31, 2018:

 

 

 

 

 

 

 

NYMEX

 

530,000

 

 

 

$

4.73

 

Year ending December 31, 2019:

 

 

 

 

 

 

 

NYMEX

 

87,500

 

 

 

$

4.75

 

Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes

The following is a summary of the fair values of our derivative instruments, which are not designated as hedges for accounting purposes and where such values are recorded in the consolidated balance sheets as of December 31, 2012 and September 30, 2013 (in thousands):

 

 

 

December 31, 2012

 

September 30, 2013

 

 

 

Balance

 

 

 

Balance

 

 

 

 

 

sheet

 

 

 

sheet

 

 

 

 

 

location

 

Fair value

 

location

 

Fair value

 

Asset derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current assets

 

$

160,579

 

Current assets

 

$

204,857

 

Commodity contracts

 

Long-term assets

 

371,436

 

Long-term assets

 

503,666

 

Total asset derivatives

 

 

 

532,015

 

 

 

708,523

 

Liability derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current liabilities

 

 

Current liabilities

 

309

 

Net asset fair value of derivatives

 

 

 

$

532,015

 

 

 

$

708,214

 

Summary of realized and unrealized gains (losses) on derivative instruments

The following is a summary of realized and unrealized gains (losses) on derivative instruments and where such values are recorded in the consolidated statements of operations for the three months ended and nine months ended September 30, 2012 and 2013 (in thousands):

 

 

 

Statement of

 

Three months ended

 

Nine months ended

 

 

 

operations

 

September 30,

 

September 30,

 

 

 

location

 

2012

 

2013

 

2012

 

2013

 

Commodity derivative fair value gains (losses)

 

Revenue

 

$

(159,004

)

161,968

 

52,210

 

285,510

 

Commodity derivative fair value gains (losses)

 

Discontinued operations

 

(18,880

)

 

46,358

 

 

Total gains (losses) on commodity contracts

 

 

 

$

(177,884

)

161,968

 

98,568

 

285,510

 

Summary of the valuation of investments and financial instruments by the fair value hierarchy

The following table summarizes the valuation of investments and financial instruments by the fair value hierarchy described in note 1 at September 30, 2013 (in thousands):

 

 

 

Fair value measurements using

 

 

 

Quoted

 

 

 

 

 

 

 

 

 

prices

 

 

 

 

 

 

 

 

 

in active

 

Significant

 

 

 

 

 

 

 

markets for

 

other

 

Significant

 

 

 

 

 

identical

 

observable

 

unobservable

 

 

 

 

 

assets

 

inputs

 

inputs

 

 

 

Description

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Total

 

Net derivatives asset:

 

 

 

 

 

 

 

 

 

Fixed price commodity swaps

 

$

 

708,214

 

 

708,214

 

Schedule of gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts

The following tables present the gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets for the periods presented, all at fair value (in thousands):

 

 

 

December 31, 2012

 

September 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

Net amounts

 

 

 

 

 

 

 

Net amounts

 

 

 

 

 

of assets

 

 

 

Gross amounts

 

Gross amounts

 

of assets

 

Gross amounts

 

Gross amounts

 

(liabilities)

 

 

 

of recognized

 

offset on

 

on balance

 

of recognized

 

offset on

 

on balance

 

 

 

assets

 

balance sheet

 

sheet

 

assets

 

balance sheet

 

sheet

 

Commodity derivative assets

 

$

597,359

 

(65,344

)

532,015

 

715,960

 

(7,437

)

708,523

 

Commodity derivative liabilities

 

 

 

 

 

(309

)

(309

)