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Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Outstanding commodity derivatives
As of September 30, 2014, the Company had the following outstanding commodity derivatives:
 
 
 
 
 
 
 
 
Collars
 
Swaps
 
 
 
 
 
 
 
 
Floor
 
Ceiling
 
 
Type of Contract
 
Volume
 
Contract Period
 
Range
 
Weighted-Average
 
Range
 
Weighted- Average
 
Weighted- Average
Natural gas
 
84.9
 
Bcf
 
Oct. 2014 - Dec. 2014
 
$3.60-$4.37

 
$
4.13

 
$4.22-$4.80
 
$
4.51

 
 

Natural gas
 
26.8
 
Bcf
 
Oct. 2014 - Dec. 2014
 
 

 
 

 
 
 
 

 
$
4.05

Natural gas
 
35.5
 
Bcf
 
Jan. 2015 - Dec. 2015
 
—

 
$
3.86

 
$4.36-$4.43
 
$
4.40

 
 
Natural gas
 
35.5
 
Bcf
 
Jan. 2015 - Dec. 2015
 
 
 
 
 
 
 
 
 
$
4.12

Crude oil
 
184.0
 
Mbbl
 
Oct. 2014 - Dec. 2014
 
 

 
 

 
 
 
 

 
$
97.00
Effect of derivative instruments on the condensed consolidated balance sheet
Effect of Derivative Instruments on the Condensed Consolidated Balance Sheet
 
 
 
 
Fair Values of Derivative Instruments
 
 
 
 
Derivative Assets
 
Derivative Liabilities
(In thousands)
 
Balance Sheet Location
 
September 30,
2014
 
December 31,
2013
 
September 30,
2014
 
December 31,
2013
Derivatives Designated as Hedges
 
 
 
 

 
 

 
 

 
 

Commodity contracts
 
Other current assets
 
$
—

 
$
3,019

 
$
—

 
$
—

Commodity contracts
 
Accrued liabilities
 
—

 
—

 
—

 
13,912

Derivatives Not Designated as Hedges
 
 
 
 

 
 

 
 

 
 

Commodity contracts
 
Other current assets
 
16,503

 
—

 
—

 
—

Commodity contracts
 
Accrued liabilities
 
—

 
—

 
102

 
—

Commodity contracts
 
Other liabilities
 
—

 
—

 
549

 
—

 
 
 
 
$
16,503

 
$
3,019

 
$
651

 
$
13,912
Schedule of offsetting of derivative assets and liabilities in the condensed consolidated balance sheet
Offsetting of Derivative Assets and Liabilities in the Condensed Consolidated Balance Sheet
(In thousands)
 
September 30,
2014
 
December 31,
2013
Derivative Assets
 
 

 
 

Gross amounts of recognized assets
 
$
19,445

 
$
13,792

Gross amounts offset in the statement of financial position
 
(2,942
)
 
(10,773
)
Net amounts of assets presented in the statement of financial position
 
16,503

 
3,019

Gross amounts of financial instruments not offset in the statement of financial position
 
238

 
373

Net amount
 
$
16,741

 
$
3,392

 
 
 
 
 
Derivative Liabilities
 
 

 
 

Gross amounts of recognized liabilities
 
$
3,593

 
$
24,685

Gross amounts offset in the statement of financial position
 
(2,942
)
 
(10,773
)
Net amounts of liabilities presented in the statement of financial position
 
651

 
13,912

Gross amounts of financial instruments not offset in the statement of financial position
 
—

 
—

Net amount
 
$
651

 
$
13,912
Amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives
The amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives (effective portion) is as follows:
 
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
(In thousands)
 
2014
 
2013
 
2014
 
2013
Commodity contracts
 
$
—

 
$
(2,384
)
 
$
(133,310
)
 
$
51,783
Amount of gain (loss) reclassified from accumulated other comprehensive income (loss)
The amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) is as follows:
 
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
(In thousands)
 
2014 (1)
 
2013
 
2014 (1)
 
2013
Natural gas revenues
 
$
(21,427
)
 
$
20,766

 
$
(114,304
)
 
$
33,822

Crude oil and condensate revenues
 
(130
)
 
(1,082
)
 
(984
)
 
3,054

 
 
$
(21,557
)
 
$
19,684

 
$
(115,288
)
 
$
36,876

 
(1)
The Company ceased hedge accounting effective April 1, 2014. For the three and nine months ended September 30, 2014, a loss of approximately $21.6 million and $44.5 million, respectively, were reclassified into income. These amounts were previously frozen in accumulated other comprehensive income (loss).
Effect of derivatives not designated as hedging instruments on the condensed consolidated statement of operations
The amount of gain (loss) recognized in the Condensed Consolidated Statement of Operations on derivative instruments is as follows:
 
 
Three Months Ended 
 September 30,
 
Nine Months Ended 
 September 30,
(In thousands)
 
2014
 
2013
 
2014
 
2013
Derivatives Designated as Hedges
 
 

 
 

 
 

 
 

Realized
 
 

 
 

 
 

 
 

Natural gas
 
$
—

 
$
20,766

 
$
(70,557
)
 
$
33,822

Crude oil and condensate
 
—

 
(1,082
)
 
(218
)
 
3,054

 
 
$
—

 
$
19,684

 
$
(70,775
)
 
$
36,876

Derivatives Not Designated as Hedges
 
 

 
 

 
 

 
 

Realized
 
 

 
 

 
 

 
 

Natural gas
 
$
(21,427
)
 
$
—

 
$
(43,747
)
 
$
—

Crude oil and condensate
 
(130
)
 
—

 
(766
)
 
—

Gain (loss) on derivative instruments
 
40,073

 
—

 
24,811

 
—

Unrealized
 
 

 
 

 
 

 
 

Gain (loss) on derivative instruments
 
31,833

 
—

 
44,766

 
—

 
 
$
50,349

 
$
—

 
$
25,064

 
$
—

 
 
 
 
 
 
 
 
 
 
 
$
50,349

 
$
19,684

 
$
(45,711
)
 
$
36,876