Annual report pursuant to Section 13 and 15(d)

Derivative Instruments (Tables)

v3.6.0.2
Derivative Instruments (Tables)
12 Months Ended
Dec. 31, 2016
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Open Fixed Price Swap Positions
Below is a summary of the Company's open fixed price swap positions as of December 31, 2016.
 
Location
Daily Volume (MMBtu/day)
 
Weighted
Average Price
2017
NYMEX Henry Hub
531,171

 
$
3.17

2018
NYMEX Henry Hub
296,438

 
$
3.10

2019
NYMEX Henry Hub
4,932

 
$
3.37

 
Location
Daily Volume (Bbls/day)
 
Weighted
Average Price
2017
ARGUS LLS
1,748

 
$
51.97

2017
NYMEX WTI
3,353

 
$
54.98

2018
NYMEX WTI
899

 
$
55.31

 
Location
Daily Volume (Bbls/day)
 
Weighted
Average Price
2017
Mont Belvieu C3
1,630

 
$
25.70

2017
Mont Belvieu C5
250

 
$
49.14


The Company sold call options and used the associated premiums to enhance the fixed price for a portion of the fixed price natural gas swaps listed above. Each short call option has an established ceiling price. When the referenced settlement price is above the price ceiling established by these short call options, the Company pays its counterparty an amount equal to the difference between the referenced settlement price and the price ceiling multiplied by the hedged contract volumes.
 
Location
Daily Volume (MMBtu/day)
 
Weighted
Average Price
2017
NYMEX Henry Hub
60,068

 
$
3.12

2018
NYMEX Henry Hub
4,932

 
$
2.91

Schedule of Natural Gas Basis Swap Positions
As of December 31, 2016, the Company had the following natural gas basis swap positions for Tetco M2.
 
Location
Daily Volume (MMBtu/day)
 
Weighted
Average Price
2017
Tetco M2
12,329

 
$
(0.59
)
Schedule of Derivative Instruments in Statement of Financial Position
The following table presents the fair value of the Company's derivative instruments on a gross basis at December 31, 2016 and 2015:
 
December 31,
 
2016
 
2015
 
(In thousands)
Short-term derivative instruments - asset
$
3,488

 
$
142,794

Long-term derivative instruments - asset
$
5,696

 
$
51,088

Short-term derivative instruments - liability
$
119,219

 
$
437

Long-term derivative instruments - liability
$
26,759

 
$
6,935

Schedule of Cash Flow Hedges
The following table presents the gain and loss recognized in Net (loss) gain on gas, oil and NGL derivatives in the accompanying consolidated statements of operations due to derivative instruments for the years ended December 31, 2016, 2015, and 2014.
 
Gain (loss) on derivative instruments
 
For the Year Ended December 31,
 
2016
 
2015
 
2014
 
(In thousands)
Natural gas derivatives
$
(165,933
)
 
$
182,993

 
$
103,128

Oil derivatives
(5,387
)
 
19,201

 
6,171

Natural gas liquids derivatives
(3,186
)
 
1,319

 

Total
$
(174,506
)
 
$
203,513

 
$
109,299

Recognized Derivative Assets
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.
 
As of December 31, 2016
 
Derivative instruments, gross
 
Netting adjustments
 
Derivative instruments, net
 
(In thousands)
Derivative assets
$
9,184

 
$
(9,184
)
 
$

Derivative liabilities
$
(145,978
)
 
$
9,184

 
$
(136,794
)
 
As of December 31, 2015
 
Derivative instruments, gross
 
Netting adjustments
 
Derivative instruments, net
 
(In thousands)
Derivative assets
$
193,882

 
$
(7,372
)
 
$
186,510

Derivative liabilities
$
(7,372
)
 
$
7,372

 
$

Recognized Derivative Liabilities
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.
 
As of December 31, 2016
 
Derivative instruments, gross
 
Netting adjustments
 
Derivative instruments, net
 
(In thousands)
Derivative assets
$
9,184

 
$
(9,184
)
 
$

Derivative liabilities
$
(145,978
)
 
$
9,184

 
$
(136,794
)
 
As of December 31, 2015
 
Derivative instruments, gross
 
Netting adjustments
 
Derivative instruments, net
 
(In thousands)
Derivative assets
$
193,882

 
$
(7,372
)
 
$
186,510

Derivative liabilities
$
(7,372
)
 
$
7,372

 
$