W&T Offshore, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments (Tables)

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

As of March 31, 2016, our open commodity derivative contracts were as follows:

Crude Oil: Two-way collars, Priced off WTI (NYMEX)

		Notional ⁽¹⁾		Notional ⁽¹⁾		Weighted Average Contract Price
		Quantity		Quantity		Put Option		Call Option
Termination Period		(Bbls/day)		(Bbls)		(Bought)		(Sold)
2016:	2nd Quarter		5,000		455,000	$	40.00	$	81.47
	3rd Quarter		5,000		460,000		40.00		81.47
	4th Quarter		5,000		460,000		40.00		81.47
					1,375,000		40.00		81.47


Natural Gas: Three-way collars, Priced off Henry Hub (NYMEX)

		Notional ⁽¹⁾		Notional ⁽¹⁾		Weighted Average Contract Price
		Quantity		Quantity		Put Option		Call Option		Call Option
Termination Period		(MMBTUs/day)		(MMBTUs)		(Bought)		(Sold)		(Bought)
2016:	2nd Quarter ⁽²⁾		40,000		2,440,000	$	2.25	$	3.50	$	3.77
	3rd Quarter		40,000		3,680,000		2.25		3.50		3.77
	4th Quarter		40,000		3,680,000		2.25		3.50		3.77
					9,800,000		2.25		3.50		3.77

(1)

Volume Measurements: Bbls – barrelsMMBTUs – million British Thermal Units.

(2)

The natural gas derivative contracts are priced and closed in the last week prior to the related production month. Natural gas derivative contracts related to April 2016 production were priced and closed in March 2016 and are not included in the above table as these were not open derivative contracts as of March 31, 2016.

Estimated Fair Value of Derivative Contracts

The following balance sheet line items included amounts related to the estimated fair value of our open commodity derivative contracts as indicated in the following table (in thousands):

	March 31,		December 31,
	2016		2015
Prepaid and other assets	$	6,060	$	7,672

Changes in Fair Value and Settlements of Commodity Derivative Contracts

Changes in the fair value and settlements of our commodity derivative contracts were as follows (in thousands):

	Three Months Ended
	March 31,
	2016			2015
Derivative gain	$	(2,493	)	$	—

Cash Receipts on Derivative Settlements, Net Included within Net Cash Provided by Operating Activities

Cash receipts, net, on commodity derivative contract settlements are included within Net cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows and were as follows (in thousands):

	Three Months Ended
	March 31,
	2016		2015
Cash receipts on derivative settlements, net	$	4,105	$	—