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Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2014
Fair Value Disclosures [Abstract] |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following fair value hierarchy table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013:
September 30, 2014 (Thousands of dollars) |  | Quoted Prices in Active Markets For Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Balance as of September 30, 2014 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity derivative contracts |  | $ | — |  |  | $ | — |  |  | $ | 1,774 |  |  | $ | 1,774 |
Interest rate derivative contracts |  |  | — |  |  |  | — |  |  |  | 42 |  |  |  | 42 |
Total assets |  | $ | — |  |  | $ | — |  |  | $ | 1,816 |  |  | $ | 1,816 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity derivative contracts |  | $ | — |  |  | $ | — |  |  | $ | (86 | ) |  | $ | (86 | )
Interest rate derivative contracts |  |  | — |  |  |  | — |  |  |  | (229 | ) |  |  | (229 | )
Total liabilities |  | $ | — |  |  | $ | — |  |  | $ | (315 | ) |  | $ | (315 | )
December 31, 2013 (Thousands of dollars) |  | Quoted Prices in Active Markets For Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Balance as of December 31, 2013 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity derivative contracts |  | $ | — |  |  | $ | — |  |  | $ | 1,337 |  |  | $ | 1,337 |
Interest rate derivative contracts |  |  | — |  |  |  | — |  |  |  | 86 |  |  |  | 86 |
Total assets |  | $ | — |  |  | $ | — |  |  | $ | 1,423 |  |  | $ | 1,423 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity derivative contracts |  | $ | — |  |  | $ | — |  |  | $ | (2,010 | ) |  | $ | (2,010 | )
Interest rate derivative contracts |  |  | — |  |  |  | — |  |  |  | (278 | ) |  |  | (278 | )
Total liabilities |  | $ | — |  |  | $ | — |  |  | $ | (2,288 | ) |  | $ | (2,288 | )
Schedule of Changes in Fair Value of Financial Assets and Liabilities Classified as Level 3 | The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2014.
(Thousands of dollars) |  |  |
Net liabilities – December 31, 2013 |  | $ | (865 | )
Total realized and unrealized gains / losses: |  |  |  |
Included in earnings (a) |  |  | (421 | )
Included in other comprehensive income |  |  | 5 |
Purchases, sales, issuances and settlements |  |  | 2,782 |
Net assets – September 30, 2014 |  | $ | 1,501 |
(a) | Derivative instruments are reported in revenues as realized gain/loss and on a separately reported line item captioned unrealized gain/loss on derivative instruments, and interest rate swap instruments are reported as an increase or reduction to interest expense.
Effect of Derivative Instruments on Condensed Consolidated Balance Sheets | The following table sets forth the effect of derivative instruments on the condensed consolidated balance sheets at September 30, 2014 and December 31, 2013:
|  |  |  | Fair Value |
(Thousands of dollars) |  | Balance Sheet Location |  | September 30, 2014 |  |  | December 31, 2013 |
Asset Derivatives: |  |  |  |  |  |  |  |  |  |
Derivatives designated as cash-flow hedging instruments: |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts |  | Other assets |  | $ | 42 |  |  | $ | 86 |
Derivatives not designated as cash-flow hedging instruments: |  |  |  |  |  |  |  |  |  |
Crude oil commodity contracts |  | Other current assets |  |  | 1,041 |  |  |  | 307 |
Natural gas commodity contracts |  | Other current assets |  |  | 308 |  |  |  | 50 |
Crude oil commodity contracts |  | Other assets |  |  | 362 |  |  |  | 980 |
Natural gas commodity contracts |  | Other assets |  |  | 63 |  |  |  | — |
Total |  |  |  | $ | 1,816 |  |  | $ | 1,423 |
Liability Derivatives: |  |  |  |  |  |  |  |  |  |
Derivatives designated as cash-flow hedging instruments: |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts |  | Derivative liability short-term |  | $ | (229 | ) |  | $ | (209 | )
Interest rate swap contracts |  | Derivative liability long-term |  |  | — |  |  |  | (69 | )
Derivatives not designated as cash-flow hedging instruments: |  |  |  |  |  |  |  |  |  |
Crude oil commodity contracts |  | Derivative liability short-term |  |  | (12 | ) |  |  | (1,667 | )
Natural gas commodity contracts |  | Derivative liability short-term |  |  | (72 | ) |  |  | (318 | )
Crude oil commodity contracts |  | Derivative liability long-term |  |  | — |  |  |  | (25 | )
Natural gas commodity contracts |  | Derivative liability long-term |  |  | (2 | ) |  |  | — |
Total |  |  |  | $ | (315 | ) |  | $ | (2,288 | )
Total derivative instruments |  |  |  | $ | 1,501 |  |  | $ | (865 | )
Effect of Derivative Instruments on Condensed Consolidated Statement of Operations | The following table sets forth the effect of derivative instruments on the condensed consolidated statement of operations for the nine-month periods ended September 30, 2014 and 2013:
(Thousands of dollars) |  | Location of gain/loss recognized in income |  | Amount of gain/loss recognized in income |
|  | 2014 |  |  | 2013 |
Derivative designated as cash-flow hedge instruments: |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts |  | Interest expense |  | $ | (210 | ) |  | $ | — |
Derivatives not designated as cash-flow hedge instruments |  |  |  |  |  |  |  |  |  |
Natural gas commodity contracts |  | Unrealized loss on derivative instruments, net |  |  | 565 |  |  |  | (437 | )
Crude oil commodity contracts |  | Unrealized gain (loss) on derivative instruments, net |  |  | 1,796 |  |  |  | 2,834 |
Natural gas commodity contracts (a) |  | Realized gain (loss) on derivative instruments, net |  |  | (580 | ) |  |  | 331 |
Crude oil commodity contracts |  | Realized loss on derivative instruments, net |  |  | (1,992 | ) |  |  | (257 | )
|  |  |  | $ | (421 | ) |  | $ | 2,471 |
(a) | In January 2014, the Company unwound and monetized natural gas swaps with original settlement dates from January 2015 through December 2015 for net proceeds of $276,000. In September 2014, the Company unwound and monetized crude oil swaps with original settlement dates from January 2016 through December 2016 for net proceeds of $703,000. The $979,000 gains associated with these early settlement transactions are included in realized gain on derivative instruments for the nine months ended September 30, 2014.

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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959 Reference 2: 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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- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: 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 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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