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Derivative Instruments and Hedging Activities | 12 Months Ended
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Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company periodically enters into commodity derivatives to manage its exposure to price fluctuations on natural gas and crude oil production. The Company’s credit agreement restricts the ability of the Company to enter into commodity derivatives other than to hedge or mitigate risks to which the Company has actual or projected exposure or as permitted under the Company’s risk management policies and where such derivatives do not subject the Company to material speculative risks. All of the Company’s derivatives are used for risk management purposes and are not held for trading purposes. Through March 31, 2014, the Company elected to designate its commodity derivatives as cash flow hedges for accounting purposes. Effective April 1, 2014, the Company elected to discontinue hedge accounting for its commodity derivatives on a prospective basis. As a result of discontinuing hedge accounting, the unrealized loss included in accumulated other comprehensive income (loss) as of April 1, 2014 of $73.4 million ($44.2 million net of tax) was frozen and reclassified into natural gas and crude oil and condensate revenues in the Statement of Operations throughout 2014 as the underlying hedged transactions occurred. As of December 31, 2014, there are no gains or losses deferred in accumulated other comprehensive income (loss) associated with the Company’s commodity derivatives. As of December 31, 2014, the Company had the following outstanding commodity derivatives instruments:
|  |  |  |  |  |  |  | Collars |  | Swaps
|  |  |  |  |  |  |  | Floor |  | Ceiling |  |
Type of Contract |  | Volume |  | Contract Period |  | Range |  | Weighted- Average |  | Range |  | Weighted- Average |  | Weighted- Average
Natural gas |  | 70.9 |  | Bcf |  | Jan. 2015 - Dec. 2015 |  | $3.86 - $3.91 |  | $ | 3.87 |  |  | $4.27 - $4.43 |  | $ | 4.35 |  |  |  |
Natural gas |  | 70.9 |  | Bcf |  | Jan. 2015 - Dec. 2015 |  |  |  |  |  |  |  |  |  |  |  | $ | 3.92 |
Natural gas |  | 5.2 |  | Bcf |  | Jan. 2015 - Mar. 2015 |  |  |  |  |  |  |  |  |  | $ | 4.62 |
Natural gas |  | 10.4 |  | Bcf |  | Apr. 2015 - Oct. 2015 |  |  |  |  |  |  |  |  |  | $ | 3.86 |
In the above table, natural gas prices are stated per Mcf. Effect of Derivative Instruments on the Consolidated Balance Sheet
|  |  | Fair Values of Derivative Instruments
|  |  | Derivative Assets |  | Derivative Liabilities
|  |  | December 31, |  | December 31,
(In thousands) | Balance Sheet Location |  | 2014 |  | 2013 |  | 2014 |  | 2013
Derivatives Designated as Hedges |  |  |  |  |  |  |  |
Commodity contracts | Derivative instruments (current assets) |  | $ | — |  |  | $ | 3,019 |  |  | $ | — |  |  | $ | — |
Commodity contracts | Derivative instruments (current liabilities) |  | — |  |  | — |  |  | — |  |  | 13,912 |
Derivatives Not Designated as Hedges |  |  |  |  |  |  |  |
Commodity contracts | Derivative instruments (current assets) |  | 137,603 |  |  | — |  |  | — |  |  | — |
|  |  | $ | 137,603 |  |  | $ | 3,019 |  |  | $ | — |  |  | $ | 13,912 |
Offsetting of Derivative Assets and Liabilities in the Consolidated Balance Sheet
| December 31,
(In thousands) | 2014 |  | 2013
Derivative Assets |  |  |  |  |
Gross amounts of recognized assets | $ | 137,603 |  |  | $ | 13,792 |
Gross amounts offset in the statement of financial position | — |  |  | (10,773 | )
Net amounts of assets presented in the statement of financial position | 137,603 |  |  | 3,019 |
Gross amounts of financial instruments not offset in the statement of financial position | 2,338 |  |  | 373 |
Net amount | $ | 139,941 |  |  | $ | 3,392 |
Derivative Liabilities |  |  |
Gross amounts of recognized liabilities | $ | — |  |  | $ | 24,685 |
Gross amounts offset in the statement of financial position | — |  |  | (10,773 | )
Net amounts of liabilities presented in the statement of financial position | — |  |  | 13,912 |
Gross amounts of financial instruments not offset in the statement of financial position | — |  |  | — |
Net amount | $ | — |  |  | $ | 13,912 |
Effect of Derivative Instruments on Accumulated Other Comprehensive Income (Loss) The amount of gain (loss) recognized in accumulated other comprehensive income (loss) on derivatives (effective portion) is as follows:
| Year Ended December 31,
(In thousands) | 2014 |  | 2013 |  | 2012
Commodity contracts | $ | (133,310 | ) |  | $ | (4,523 | ) |  | $ | 88,705 |
The amount of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (effective portion) is as follows:
| Year Ended December 31,
(In thousands) | 2014(1) |  | 2013 |  | 2012
Natural gas revenues | $ | (143,577 | ) |  | $ | 52,733 |  |  | $ | 225,108 |
Crude oil and condensate revenues | (626 | ) |  | 4,269 |  |  | 11,218 |
| $ | (144,203 | ) |  | $ | 57,002 |  |  | $ | 236,326 |
(1) The Company ceased hedge accounting effective April 1, 2014. As a result, a loss of approximately $73.4 million related to amounts previously frozen in accumulated other comprehensive income (loss) were reclassified into income during 2014. Effect of Derivative Instruments on the Consolidated Statement of Operations The amount of gain (loss) recognized in the Consolidated Statement of Operations on derivative instruments is as follows:
|  | Year Ended December 31,
(In thousands) |  | 2014 |  | 2013 |  | 2012
Derivatives Designated as Hedges |  |  |  |  |  |
Realized |  |  |  |  |  |
Natural gas |  | $ | (70,557 | ) |  | $ | 52,733 |  |  | $ | 225,108 |
Crude oil and condensate |  | (218 | ) |  | 4,269 |  |  | 11,218 |
|  | $ | (70,775 | ) |  | $ | 57,002 |  |  | $ | 236,326 |
Derivatives Not Designated as Hedges |  |  |  |  |  |
Realized |  |  |  |  |  |
Natural gas(1) |  | $ | (73,020 | ) |  | $ | — |  |  | $ | — |
Crude oil and condensate(1) |  | (408 | ) |  | — |  |  | — |
Gain (loss) on derivative instruments |  | 81,716 |  |  | — |  |  | — |
Unrealized |  |  |  |  |  |
Gain (loss) on derivative instruments |  | 137,603 |  |  | — |  |  | (494 | )
|  | $ | 145,891 |  |  | $ | — |  |  | $ | (494 | )
|  | $ | 75,116 |  |  | $ | 57,002 |  |  | $ | 235,832 |
(1) Relates entirely to the reclassification from accumulated other comprehensive income (loss) of previously frozen losses associated with derivatives that were de-designated as cash flow hedges on April 1, 2014. For the years ended December 31, 2014, 2013 and 2012, respectively, there was no ineffectiveness recorded in the Company’s Consolidated Statement of Operations related to its derivative instruments designated as cash flow hedges. Additional Disclosures about Derivative Instruments and Hedging Activities The use of derivative instruments involves the risk that the counterparties will be unable to meet their obligations under the agreements. The Company's counterparties are primarily commercial banks and financial service institutions that management believes present minimal credit risk and our derivative contracts are with multiple counterparties to minimize our exposure to any individual counterparty. The Company performs both quantitative and qualitative assessments of these counterparties based on their credit ratings and credit default swap rates where applicable. The Company has not incurred any losses related to non-performance risk of its counterparties and does not anticipate any material impact on its financial results due to non-performance by third parties. Certain counterparties to the Company's derivative instruments are also lenders under its revolving credit facility. The Company's revolving credit facility and derivative instruments contain certain cross default and acceleration provisions that may require immediate payment of its derivative liabilities in certain situations. The Company also has netting arrangements with each of its counterparties that allow it to offset assets and liabilities from separate derivative contracts with that counterparty.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708775-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624181-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624258-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5708773-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624177-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959 + Details
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