XML 54 R22.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Derivative instruments | 9 Months Ended
--- | ---
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative instruments The Company's policy allows the use of derivative instruments as part of an overall energy price, foreign currency and interest rate risk management program to efficiently manage and minimize commodity price, foreign currency and interest rate risk. As of September 30, 2014, the Company had no outstanding foreign currency or interest rate hedges. The fair value of derivative instruments must be estimated as of the end of each reporting period and is recorded on the Consolidated Balance Sheets as an asset or a liability. Fidelity At September 30, 2014 and 2013, and December 31, 2013, Fidelity held oil swap and collar agreements with total forward notional volumes of 1.4 million, 3.9 million and 2.9 million Bbl, respectively, and natural gas swap agreements with total forward notional volumes of 7.3 million, 16.5 million and 18.3 million MMBtu, respectively. Fidelity utilizes these derivative instruments to manage a portion of the market risk associated with fluctuations in the price of oil and natural gas on its forecasted sales of oil and natural gas production. Effective April 1, 2013, Fidelity elected to de-designate all commodity derivative contracts previously designated as cash flow hedges and elected to discontinue hedge accounting prospectively for all of its commodity derivative instruments. When the criteria for hedge accounting is not met or when hedge accounting is not elected, realized gains and losses and unrealized gains and losses are both recorded in operating revenues on the Consolidated Statements of Income. As a result of discontinuing hedge accounting on commodity derivative instruments, gains and losses on the oil and natural gas derivative instruments remain in accumulated other comprehensive income (loss) as of the de-designation date and are reclassified into earnings in future periods as the underlying hedged transactions affect earnings. At April 1, 2013, accumulated other comprehensive income (loss) included $1.8 million of unrealized gains, representing the mark-to-market value of the Company's commodity derivative instruments that qualified as cash flow hedges as of the balance sheet date. The Company expects to reclassify into earnings from accumulated other comprehensive income (loss) the remaining value related to de-designating commodity derivative instruments over the next 3 months. Prior to April 1, 2013, changes in the fair value attributable to the effective portion of the hedging instruments, net of tax, were recorded in stockholders' equity as a component of accumulated other comprehensive income (loss). To the extent that the hedges were not effective or did not qualify for hedge accounting, the ineffective portion of the changes in fair market value was recorded directly in earnings. Gains and losses on the oil and natural gas derivative instruments were reclassified from accumulated other comprehensive income (loss) into operating revenues on the Consolidated Statements of Income at the date the oil and natural gas quantities were settled. There were no components of the derivative instruments' gain or loss excluded from the assessment of hedge effectiveness. Gains and losses must be reclassified into earnings as a result of the discontinuance of cash flow hedges if it is probable that the original forecasted transactions will not occur, and there were no such reclassifications. Certain of Fidelity's derivative instruments contain cross-default provisions that state if Fidelity or any of its affiliates fails to make payment with respect to certain indebtedness, in excess of specified amounts, the counterparties could require early settlement or termination of the derivative instruments in liability positions. The aggregate fair value of Fidelity's derivative instruments with credit-risk-related contingent features that are in a liability position at September 30, 2014 and 2013, and December 31, 2013, were $44,000, $9.9 million and $7.5 million, respectively. The aggregate fair value of assets that would have been needed to settle the instruments immediately if the credit-risk-related contingent features were triggered on September 30, 2014 and 2013, and December 31, 2013, were $44,000, $9.9 million and $7.5 million, respectively. Centennial Centennial has historically entered into interest rate derivative instruments to manage a portion of its interest rate exposure on the forecasted issuance of long-term debt. As of September 30, 2014 and 2013, and December 31, 2013, Centennial had no outstanding interest rate swap agreements. Fidelity and Centennial The gains and losses on derivative instruments were as follows:
| Three Months Ended | Nine Months Ended
| September 30, | September 30,
| 2014 | 2013 | 2014 | 2013
| (In thousands)
Commodity derivatives designated as cash flow hedges: |  |  |  |
Amount of loss recognized in accumulated other comprehensive loss (effective portion), net of tax | $ | — |  | $ | — |  | $ | — |  | $ | (6,153 | )
Amount of (gain) loss reclassified from accumulated other comprehensive loss into operating revenues (effective portion), net of tax | (18 | ) | (634 | ) | 140 |  | (4,349 | )
Amount of loss recognized in operating revenues (ineffective portion), before tax | — |  | — |  | — |  | (1,422 | )
Interest rate derivatives designated as cash flow hedges: |  |  |  |
Amount of gain recognized in accumulated other comprehensive loss (effective portion), net of tax | — |  | — |  | — |  | 559 |
Amount of loss reclassified from accumulated other comprehensive loss into interest expense (effective portion), net of tax | 100 |  | 124 |  | 299 |  | 671 |
Amount of loss recognized in interest expense (ineffective portion), before tax | — |  | — |  | — |  | (769 | )
Commodity derivatives not designated as hedging instruments: |  |  |  |
Amount of gain (loss) recognized in operating revenues, before tax | 28,755 |  | (12,594 | ) | 16,847 |  | (3,957 | )
Over the next 12 months net losses of approximately $553,000 (after tax) are estimated to be reclassified from accumulated other comprehensive income (loss) into earnings, as the hedged transactions affect earnings. The location and fair value of the gross amount of the Company's derivative instruments on the Consolidated Balance Sheets were as follows:
Asset Derivatives | Location on Consolidated Balance Sheets | Fair Value at September 30, 2014 | Fair Value at September 30, 2013 | Fair Value at December 31, 2013
|  | (In thousands)
Not designated as hedges: |  |  |  |
Commodity derivatives | Commodity derivative instruments | $ | 11,322 |  | $ | 4,373 |  | $ | 1,447 |
| Other assets - noncurrent | 259 |  | 1,771 |  | 503 |
Total asset derivatives |  | $ | 11,581 |  | $ | 6,144 |  | $ | 1,950 |
Liability Derivatives | Location on Consolidated Balance Sheets | Fair Value at September 30, 2014 | Fair Value at September 30, 2013 | Fair Value at December 31, 2013
|  | (In thousands)
Not designated as hedges: |  |  |  |  |  |
Commodity derivatives | Commodity derivative instruments | $ | 44 |  | $ | 9,740 |  | $ | 7,483 |
| Other liabilities - noncurrent | — |  | 149 |  | — |
Total liability derivatives |  | $ | 44 |  | $ | 9,889 |  | $ | 7,483 |
All of the Company's commodity derivative instruments at September 30, 2014 and 2013, and December 31, 2013, were subject to legally enforceable master netting agreements. However, the Company's policy is to not offset fair value amounts for derivative instruments and, as a result, the Company's derivative assets and liabilities are presented gross on the Consolidated Balance Sheets. The gross derivative assets and liabilities (excluding settlement receivables and payables that may be subject to the same master netting agreements) presented on the Consolidated Balance Sheets and the amount eligible for offset under the master netting agreements is presented in the following table:
September 30, 2014 | Gross Amounts Recognized on the Consolidated Balance Sheets | Gross Amounts Not Offset on the Consolidated Balance Sheets | Net
| (In thousands)
Assets: |  |  |
Commodity derivatives | $ | 11,581 |  | $ | (44 | ) | $ | 11,537 |
Total assets | $ | 11,581 |  | $ | (44 | ) | $ | 11,537 |
Liabilities: |  |  |
Commodity derivatives | $ | 44 |  | $ | (44 | ) | $ | — |
Total liabilities | $ | 44 |  | $ | (44 | ) | $ | — |
September 30, 2013 | Gross Amounts Recognized on the Consolidated Balance Sheets | Gross Amounts Not Offset on the Consolidated Balance Sheets | Net
| (In thousands)
Assets: |  |  |
Commodity derivatives | $ | 6,144 |  | $ | (4,939 | ) | $ | 1,205 |
Total assets | $ | 6,144 |  | $ | (4,939 | ) | $ | 1,205 |
Liabilities: |  |  |
Commodity derivatives | $ | 9,889 |  | $ | (4,939 | ) | $ | 4,950 |
Total liabilities | $ | 9,889 |  | $ | (4,939 | ) | $ | 4,950 |
December 31, 2013 | Gross Amounts Recognized on the Consolidated Balance Sheets | Gross Amounts Not Offset on the Consolidated Balance Sheets | Net
| (In thousands)
Assets: |  |  |
Commodity derivatives | $ | 1,950 |  | $ | (1,950 | ) | $ | — |
Total assets | $ | 1,950 |  | $ | (1,950 | ) | $ | — |
Liabilities: |  |  |
Commodity derivatives | $ | 7,483 |  | $ | (1,950 | ) | $ | 5,533 |
Total liabilities | $ | 7,483 |  | $ | (1,950 | ) | $ | 5,533 |

X
- Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration