Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments (Tables)

v2.4.0.8
Derivative Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2013
Open Commodity Derivatives

As of December 31, 2013, our open commodity derivative contracts were as follows:

 

 

  

Swaps – Oil

 

 

  

Priced off Brent
(ICE)

 

  

Priced off WTI
(NYMEX)

 

  

Priced off LLS
(ARGUS)

 

Termination Period

  

Notional
Quantity

(Bbls)

 

  

Weighted
Average
Contract

Price

 

  

Notional
Quantity

(Bbls)

 

  

Weighted
Average
Contract

Price

 

  

Notional
Quantity

(Bbls)

 

  

Weighted
Average
Contract

Price

 

2014:

  

1st Qtr

  

 

180,000

  

  

$

97.38

  

  

 

762,000

  

  

$

97.39

  

  

 

180,000

  

  

$

98.20

  

 

  

2nd Qtr

  

 

172,900

  

  

 

97.38

  

  

 

455,000

  

  

 

97.17

  

  

 

364,000

  

  

 

97.88

  

 

  

3rd Qtr

  

 

165,600

  

  

 

97.38

  

  

 

155,000

  

  

 

97.00

  

  

 

552,000

  

  

 

97.65

  

 

  

4th Qtr

  

 

156,400

  

  

 

97.37

  

  

 

  

  

 

  

  

 

368,000

  

  

 

97.88

  

 

  

 

  

 

674,900

  

  

$

97.38

  

  

 

1,372,000

  

  

$

97.27

  

  

 

1,464,000

  

  

$

97.83

  

 

Estimated Fair Value of Derivative Contracts

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

 

 

  

December 31,

 

 

  

2013

 

  

2012

 

Prepaid and other assets

  

$

141

  

  

$

  

Accrued liabilities

  

 

9,423

  

  

 

6,355

  

Other liabilities (noncurrent)

  

 

  

  

 

3,046

  

 

Changes in Fair Value of Commodity Derivative Contracts Recognized in Earnings

Changes in the fair value of our commodity derivative contracts are recognized currently in earnings and were as follows (in thousands):

 

 

  

Year Ended December 31,

 

Derivative (gain) loss:

  

2013

 

  

2012

 

  

2011

 

Realized

  

$

8,589

  

  

$

7,665

  

  

$

9,873

  

Unrealized

  

 

(119

)  

  

 

6,289

  

  

 

(11,769

Total

  

$

8,470

  

  

$

13,954

  

  

$

(1,896

 

Reconciliation of Gross Assets and Liabilities and Netting Agreements on Fair Value of Open Derivative Contracts

The following table provides a reconciliation of the gross assets and liabilities reflected in the balance sheet and the potential effects of master netting agreements on the fair value of open derivative contracts as of December 31, 2013 (in thousands):

 

 

  

Derivative
Assets

 

 

Derivative
Liabilities

 

Gross amounts presented in the balance sheet

  

$

141

  

 

$

9,423

  

Amounts not offset in the balance sheet

  

 

(141

 

 

(141

Net amounts

  

$

  

 

$

9,282