XML 81 R44.htm IDEA: XBRL DOCUMENT v2.4.0.6
Derivatives (Tables)
 12 Months Ended
Dec. 31, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Contracts
The following table presents the fair value of the Company’s derivative contracts as of December 31, 2012 and 2011 on a gross basis without regard to same-counterparty netting (in thousands):
 
 
 
 
December 31,
Type of Contract
 
Balance Sheet Classification
 
2012
 
2011
Derivative assets
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts—current
 
$
88,052

 
$
6,095

Natural gas price swaps
 
Derivative contracts—current
 
—

 
6,585

Oil basis swaps
 
Derivative contracts—current
 
183

 
—

Natural gas collars
 
Derivative contracts—current
 
3,111

 
313

Diesel price swaps
 
Derivative contracts—current
 
—

 
397

Oil price swaps
 
Derivative contracts—noncurrent
 
37,983

 
48,718

Oil collars—three way
 
Derivative contracts—noncurrent
 
190

 
—

Natural gas collars
 
Derivative contracts—noncurrent
 
884

 
1,035

Derivative liabilities
 
 
 
 
 
 
Oil price swaps
 
Derivative contracts—current
 
(31,991
)
 
(116,243
)
Oil basis swaps
 
Derivative contracts—current
 
(695
)
 
—

Oil collars—two way
 
Derivative contracts—current
 
(103
)
 
—

Diesel price swaps
 
Derivative contracts—current
 
—

 
(41
)
Interest rate swap
 
Derivative contracts—current
 
(2,395
)
 
(8,475
)
Oil price swaps
 
Derivative contracts—noncurrent
 
(67,900
)
 
(66,451
)
Natural gas basis swaps
 
Derivative contracts—noncurrent
 
—

 
(4,609
)
Oil collars—three way
 
Derivative contracts—noncurrent
 
(7,327
)
 
—

Interest rate swap
 
Derivative contracts—noncurrent
 
—

 
(1,973
)
Total net derivative contracts
 
 
 
$
19,992

 
$
(134,649
)
Cash Settlements and Valuation Gains and Losses on Derivative Contracts and Interest Rate Swaps
The following table summarizes the cash settlements and valuation gain and loss on the Company’s commodity derivative contracts and interest rate swaps, which are included in (gain) loss on derivative contracts and interest expense, respectively, in the accompanying consolidated statements of operations for the years ended December 31, 2012, 2011 and 2010 (in thousands):
 
Year Ended December 31,
 
2012
 
2011
 
2010
Commodity Derivatives
 
 
 
 
 
Realized (gain) loss(1)
$
(31,718
)
 
$
50,713

 
$
(224,337
)
Unrealized (gain) loss
$
(209,701
)
 
$
(94,788
)
 
$
275,209

(Gain) loss on commodity derivative contracts
$
(241,419
)
 
$
(44,075
)
 
$
50,872

Interest Rate Swaps
 
 
 
 
 
Realized loss
$
9,243

 
$
9,414

 
$
8,145

Unrealized (gain) loss
(8,054
)
 
(6,246
)
 
8,395

Loss on interest rate swaps
$
1,189

 
$
3,168

 
$
16,540

____________________
(1)
The year ended December 31, 2012 includes $59.5 million of net realized gain related to settlements of commodity derivative contracts with contractual maturities after the quarterly period in which they were settled (“early settlements”) and a $117.1 million non-cash realized loss on derivative contracts amended in January 2012. The years ended December 31, 2011 and 2010 include $48.1 million ($111.0 million realized gain and $62.9 million realized loss) and $114.5 million of realized gain, respectively, related to early settlements.

Open Commodity Derivative Contracts
At December 31, 2012, the Company’s open commodity derivative contracts consisted of the following:

Oil Price Swaps 
 
Notional (MBbls)
 
Weighted Average
Fixed Price
January 2013 — December 2013
18,515

 
$
96.24

January 2014 — December 2014
7,511

 
$
92.43

January 2015 — December 2015
5,076

 
$
83.69


Oil Basis Swaps
 
Notional (MBbls)
 
Weighted Average
Fixed Price
January 2013 — December 2013
543

 
$
13.83


Oil Collars - Two-way
 
Notional (MBbls)
 
Collar Range
January 2013 — December 2013
168

 
$80.00
—
$102.50

Oil Collars - Three-way
 
Notional (MBbls)
 
Sold Put
Purchased Put
Sold Call
January 2014 — December 2014
8,213

 
$70.00
$90.20
$100.00
January 2015 — December 2015
2,920

 
$73.13
$90.82
$103.13

Natural Gas Collars
 
Notional (MMcf)
 
Collar Range
January 2013 — December 2013
6,858

 
$3.78
—
$6.71
January 2014 — December 2014
937

 
$4.00
—
$7.78
January 2015 — December 2015
1,010

 
$4.00
—
$8.55