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Financial Instruments (Tables)

9 Months Ended

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



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-Publisher FASB

-Name Accounting Standards Codification

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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



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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

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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

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