Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.3.0.814
Derivative Instruments (Tables)
9 Months Ended
Sep. 30, 2015
Schedule of outstanding commodity derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas
MMbtu/day

 

Oil
Bbls/day

 

Propane
Bbls/day

 

Weighted
average index
price

 

Three months ending December 31, 2015:

 

 

 

 

 

 

 

 

 

 

TCO ($/MMBtu)

 

120,000

 

 —

 

 —

 

$

5.14

 

Dominion South ($/MMBtu)

 

230,000

 

 —

 

 —

 

$

5.74

 

NYMEX ($/MMBtu)

 

770,000

 

 —

 

 —

 

$

3.92

 

CGTLA ($/MMBtu)

 

40,000

 

 —

 

 —

 

$

4.09

 

NYMEX-WTI ($/Bbl)

 

 —

 

3,000

 

 —

 

$

65.67

 

Mont Belvieu-TET ($/Gallon)

 

 —

 

 —

 

23,000

 

$

0.64

 

Total

 

1,160,000

 

3,000

 

23,000

 

 

 

 

Year ending December 31, 2016:

 

 

 

 

 

 

 

 

 

 

TCO ($/MMBtu)

 

60,000

 

 

 

 —

 

$

4.91

 

Dominion South ($/MMBtu)

 

272,500

 

 

 

 —

 

$

5.35

 

NYMEX ($/MMBtu)

 

1,110,000

 

 

 

 —

 

$

3.49

 

CGTLA ($/MMBtu)

 

170,000

 

 

 

 —

 

$

4.09

 

Mont Belvieu-TET ($/Gallon)

 

 —

 

 

 

30,000

 

$

0.59

 

Total

 

1,612,500

 

 

 

30,000

 

 

 

 

Year ending December 31, 2017:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,000,000

 

 

 

 —

 

$

3.58

 

CGTLA ($/MMBtu)

 

420,000

 

 

 

 —

 

$

4.27

 

CCG ($/MMBtu)

 

70,000

 

 

 

 —

 

$

4.57

 

Mont Belvieu-TET ($/Gallon)

 

 —

 

 

 

2,000

 

$

0.64

 

Total

 

1,490,000

 

 

 

2,000

 

 

 

 

Year ending December 31, 2018:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,732,500

 

 

 

 —

 

$

4.05

 

Mont Belvieu-TET ($/Gallon)

 

 —

 

 

 

2,000

 

$

0.65

 

Total

 

1,732,500

 

 

 

2,000

 

 

 

 

Year ending December 31, 2019:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,800,000

 

 

 

 

 

$

3.94

 

Year ending December 31, 2020:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

1,212,500

 

 

 

 

 

$

3.75

 

Year ending December 31, 2021:

 

 

 

 

 

 

 

 

 

 

NYMEX ($/MMBtu)

 

235,000

 

 

 

 

 

$

3.67

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

September 30, 2015

 

 

 

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

 

$

692,554

 

Current assets

 

$

834,482

 

Commodity contracts

 

Long-term assets

 

 

899,997

 

Long-term assets

 

 

2,007,828

 

 

 

 

 

 

 

 

 

 

 

 

 

Total asset derivatives

 

 

 

 

1,592,551

 

 

 

 

2,842,310

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liability derivatives

 

 

 

 

 —

 

 

 

 

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Net derivatives

 

 

 

$

1,592,551

 

 

 

$

2,842,310

 

 

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 table presents the gross amounts of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the consolidated balance sheets as of the dates presented, all at fair value (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

September 30, 2015

 

 

 

Gross
amounts on
balance sheet

 

Gross amounts
offset on
balance sheet

 

Net amounts

of assets 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

 

$

1,621,665

 

 

(29,114)

 

 

1,592,551

 

$

2,885,279

 

 

(42,969)

 

 

2,842,310

 

Commodity derivative liabilities

 

$

 —

 

 

 —

 

 

 —

 

$

 —

 

 

 —

 

 

 —

 

 

Summary of derivative fair value gains (losses)

The following is a summary of derivative fair value gains (losses) and where such values are recorded in the condensed consolidated statements of operations for three and nine months ended September 30, 2014 and 2015 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Statement of
operations

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

 

location

 

2014

 

2015

 

2014

 

2015

 

Commodity derivative fair value gains (losses)

 

Revenue

 

$

308,975

 

 

1,079,071

 

 

(63,720)

 

 

1,836,398

 

 

TCOminusNYMEX  
Tabular disclosure of commodity derivatives basis differential positions which settle on the pricing index to basis differential of Columbia Gas (TCO) to the NYMEX Henry Hub natural gas price.

 

 

 

 

 

 

 

 

 

Natural gas
MMbtu/day

 

Hedged
Differential

 

 

 

 

 

 

 

 

Three months ending December 31, 2015:

 

390,000

 

$

(0.35)

 

 

 

 

 

 

 

 

Year ending December 31, 2016:

 

290,000

 

$

(0.42)

 

 

 

 

 

 

 

 

Year ending December 31, 2017:

 

125,000

 

$

(0.49)

 

 

NYMEXminusTCO  
Tabular disclosure of commodity derivatives basis differential positions which settle on the pricing index to basis differential of NYMEX Henry Hub to the Columbia Gas (TCO) natural gas price

 

 

 

 

 

 

 

 

 

Natural gas
MMbtu/day

 

Hedged
Differential

 

 

 

 

 

 

 

 

Three months ending December 31, 2015:

 

10,000

 

$

0.14

 

 

 

 

 

 

 

 

Year ending December 31, 2016:

 

160,000

 

$

0.26

 

 

 

 

 

 

 

 

Year ending December 31, 2017:

 

125,000

 

$

0.30