| Schedule of fair value of derivatives in accompanying balance sheets |
The following table details the fair value of derivatives recorded in the accompanying balance sheets, by category:
| | | | | | | | | | | | | | As of September 30, 2012 | | Derivative Assets | | Derivative Liabilities | | Balance Sheet Classification | | Fair Value | | Balance Sheet Classification | | Fair Value | | (in thousands) | Commodity Contracts | Current Assets | | $ | 41,865 |
| | Current Liabilities | | $ | 19,352 |
| Commodity Contracts | Noncurrent Assets | | 22,383 |
| | Noncurrent Liabilities | | 8,802 |
| Derivatives not designated as hedging instruments | | | $ | 64,248 |
| | | | $ | 28,154 |
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| | | | | | | | | | | | | | As of December 31, 2011 | | Derivative Assets | | Derivative Liabilities | | Balance Sheet Classification | | Fair Value | | Balance Sheet Classification | | Fair Value | | (in thousands) | Commodity Contracts | Current Assets | | $ | 55,813 |
| | Current Liabilities | | $ | 42,806 |
| Commodity Contracts | Noncurrent Assets | | 31,062 |
| | Noncurrent Liabilities | | 12,875 |
| Derivatives not designated as hedging instruments | | | $ | 86,875 |
| | | | $ | 55,681 |
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| Schedule of unrealized and realized gains and losses on derivative instruments in the statement of operations |
The following table summarizes the components of unrealized and realized derivative (gain) loss presented in the accompanying statements of operations:
| | | | | | | | | | | | | | | | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | 2012 | | 2011 | | 2012 | | 2011 | | (in thousands) | Cash settlement (gain) loss: | | | | | | | | Oil contracts | $ | 2,472 |
| | $ | 1,058 |
| | $ | 13,142 |
| | $ | 18,421 |
| Gas contracts | (9,031 | ) | | (1,434 | ) | | (40,495 | ) | | (3,751 | ) | NGL contracts | (4,362 | ) | | 4,131 |
| | (5,450 | ) | | 9,478 |
| Total cash settlement (gain) loss | $ | (10,921 | ) | | $ | 3,755 |
| | $ | (32,803 | ) | | $ | 24,148 |
| | | | | | | | | Unrealized (gain) loss on change in fair value: | | | | | | | | Oil contracts | $ | 30,667 |
| | $ | (106,780 | ) | | $ | (32,616 | ) | | $ | (90,629 | ) | Gas contracts | 28,231 |
| | (19,083 | ) | | 40,464 |
| | (21,504 | ) | NGL contracts | 7,879 |
| | (6,317 | ) | | (15,085 | ) | | 4,113 |
| Total net unrealized (gain) loss on change in fair value | $ | 66,777 |
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| $ | (132,180 | ) |
| $ | (7,237 | ) |
| $ | (108,020 | ) | Total unrealized and realized derivative (gain) loss | $ | 55,856 |
| | $ | (128,425 | ) | | $ | (40,040 | ) | | $ | (83,872 | ) |
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| Detail of the effect of derivative instruments reclassified from AOCI to the statement of operations (net of income tax) |
The following table summarizes the effect of derivative instruments on AOCIL and the accompanying statements of operations (net of income tax):
| | | | | | | | | | | | | | | | | | | | | | | | Location in Statements of Operations | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | Derivatives | | | 2012 | | 2011 | | 2012 | | 2011 | | | | | | (in thousands) | Amount reclassified from AOCIL | Commodity Contracts | | Realized hedge gain (loss) | | $ | (315 | ) | | $ | 4,271 |
| | $ | (1,465 | ) | | $ | 9,149 |
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