Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v2.4.0.8
Derivative Instruments (Tables)
3 Months Ended
Mar. 31, 2014
Derivative Instruments  
Schedule of outstanding commodity derivatives

As of March 31, 2014, the Company has entered into fixed price natural gas and oil swaps in order to hedge a portion of its natural gas and oil production from April 1, 2014 through December 31, 2019 as summarized in the following table.

 

 

 

Natural gas
MMbtu/day

 

Oil
Bbls/day

 

Weighted
average index
price

 

Nine Months ending
December 31, 2014:

 

 

 

 

 

 

 

TCO

 

210,000

 

$

5.06

 

Dominion South

 

160,000

 

$

5.10

 

NYMEX

 

340,000

 

$

4.10

 

CGTLA

 

10,000

 

$

3.84

 

NYMEX-WTI

 

 

3,000

$

95.22

 

2014 Total

 

720,000

 

3,000

 

 

 

 

 

 

Natural gas
MMbtu/day

 

Oil
Bbls/day

 

Weighted
average index
price

 

Year ending December 31, 2015:

 

 

 

 

 

 

 

TCO

 

130,000

 

 

$

4.93

 

Dominion South

 

230,000

 

 

$

5.60

 

NYMEX

 

250,000

 

 

$

4.14

 

CGTLA

 

40,000

 

 

$

4.00

 

2015 Total

 

650,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ending December 31, 2016:

 

 

 

 

 

 

 

TCO

 

80,000

 

 

$

4.67

 

Dominion South

 

272,500

 

 

$

5.35

 

NYMEX

 

120,000

 

 

$

4.17

 

CGTLA

 

170,000

 

 

$

4.09

 

2016 Total

 

642,500

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ending December 31, 2017:

 

 

 

 

 

 

 

TCO

 

20,000

 

 

$

4.02

 

NYMEX

 

270,000

 

 

$

4.39

 

CGTLA

 

420,000

 

 

$

4.27

 

CCG

 

70,000

 

 

$

4.57

 

2017 Total

 

780,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ending December 31, 2018:

 

 

 

 

 

 

 

NYMEX

 

710,000

 

 

$

4.60

 

 

 

 

 

 

 

 

 

Year ending December 31, 2019:

 

 

 

 

 

 

 

NYMEX

 

467,500

 

 

$

4.41

 

 

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

 

 

 

 

December 31, 2013

 

March 31, 2014

 

 

 

Balance sheet
location

 

Fair value

 

Balance sheet
location

 

Fair value

 

 

 

 

 

(In thousands)

 

 

 

(In thousands)

 

Asset derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current assets

$

183,000

 

Current assets

$

130,679

 

Commodity contracts

 

Long-term assets

 

677,780

 

Long-term assets

 

500,882

 

 

 

 

 

 

 

 

 

 

 

Total asset derivatives

 

 

 

860,780

 

 

 

631,561

 

 

 

 

 

 

 

 

 

 

 

Liability derivatives not designated as hedges for accounting purposes:

 

 

 

 

 

 

 

 

 

Commodity contracts

 

Current liabilities

 

646

 

Current liabilities

 

17,623

 

Commodity contracts

 

Long-term liabilities

 

 

Long-term liabilities

 

1,662

 

 

 

 

 

 

 

 

 

 

 

Total liability derivatives

 

 

 

646

 

 

 

19,285

 

 

 

 

 

 

 

 

 

 

 

Net derivatives

 

 

$

860,134

 

 

$

612,276

 

 

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, 2013

 

March 31, 2014

 

 

 

Gross
amounts on
balance sheet

 

Gross amounts
offset on
balance sheet

 

Net amounts
on balance
sheet

 

Gross
amounts on
balance sheet

 

Gross amounts
offset on
balance sheet

 

Net amounts
of assets
(liabilities)
on balance
sheet

 

Commodity derivative assets

$

887,034

 

 

(26,254

)

 

860,780

 

$

700,418

 

 

(68,857

)

 

631,561

 

Commodity derivative liabilities

$

(646

)

 

 

 

(646

)

$

(21,031

)

 

1,746

 

 

(19,285

)

 

Summary of derivative fair value losses

The following is a summary of derivative fair losses and where such values are recorded in the consolidated statements of operations for the three months ended March 31, 2013 and 2014 (in thousands):

 

 

 

Statement of
operations
location

 

2013

 

2014

 

Commodity derivative fair value losses

 

Revenue

 

$

(71,941

)

 

(248,929

)