Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments (Tables)

v2.4.0.8
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Open Commodity Derivatives

As of September 30, 2014, our open commodity derivative contracts were as follows:

 

 

 

 

Swaps – Oil

 

 

 

 

Priced off Brent

 

 

Priced off LLS

 

 

 

 

(ICE)

 

 

(ARGUS)

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

Weighted

 

 

 

 

Notional

 

 

Average

 

 

Notional

 

 

Average

 

 

 

 

Quantity

 

 

Contract

 

 

Quantity

 

 

Contract

 

Termination Period

 

(Bbls)

 

 

Price

 

 

(Bbls)

 

 

Price

 

2014:

4th Quarter

 

 

156,400

 

 

$

97.37

 

 

 

460,000

 

 

$

98.12

 

 
Estimated Fair Value of Derivative Contracts

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

 

 

September 30,

 

 

December 31,

 

 

2014

 

 

2013

 

Prepaid and other assets

$

2,470

 

 

$

141

 

Accrued liabilities

 

—

 

 

 

9,423

 

 
Changes in Fair Value of Commodity Derivative Contracts Recognized in Earnings

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

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Derivative (gain) loss:

$

(13,781

)

 

$

15,659

 

 

$

6,790

 

 

$

6,186

 

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

Cash payments on derivative settlements, net, 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

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

 

2014

 

 

2013

 

 

2014

 

 

2013

 

Cash payments on derivative settlements, net

$

4,233

 

 

$

4,545

 

 

$

18,543

 

 

$

6,855

 

 
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 (in thousands):

 

 

September 30, 2014

 

 

December 31, 2013

 

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

Derivative

 

 

Assets

 

 

Liabilities

 

 

Assets

 

 

Liabilities

 

Gross amounts presented in the balance sheet

$

2,470

 

 

$

—

 

 

$

141

 

 

$

9,423

 

Amounts not offset in the balance sheet

 

—

 

 

 

—

 

 

 

(141

)

 

 

(141

)

Net Amounts

$

2,470

 

 

$

—

 

 

$

—

 

 

$

9,282