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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 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 at December 31, 2014 and 2013:

December 31, 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 at December 31, 2014
Assets
Commodity derivative contracts		$	—			$	—			$	16,901			$	16,901
Interest rate derivative contracts			—				—				26				26
Total assets		$	—			$	—			$	16,927			$	16,927
Liabilities
Interest rate derivative contracts		$	—			$	—			$	(170	)		$	(170	)
Total liabilities		$	—			$	—			$	(170	)		$	(170	)
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 at 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 years ended December 31, 2014 and 2013.

		Year Ended December 31,
(Thousands of dollars)		2014				2013
Net liabilities at beginning of period		$	(865	)		$	(78	)
Total realized and unrealized gains (losses):
Included in earnings (a)			17,420				(1,971	)
Included in other comprehensive income (loss)			48				(138	)
Purchases, sales, issuances and settlements			154				1,322
Net assets (liabilities) at end of period		$	16,757			$	(865	)

(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 Consolidated Balance Sheets

The following table sets forth the effect of derivative instruments on the consolidated balance sheets at December 31, 2014 and 2013:

				Fair Value at December 31,
(Thousands of dollars)		Balance Sheet Location		2014				2013
Asset Derivatives:
Derivatives designated as cash-flow hedging instruments:
Interest rate swap contracts		Derivative contracts		$	12			$	—
Interest rate swap contracts		Derivative contracts long-term			13				86
Derivatives not designated as cash-flow hedging instruments:
Crude oil commodity contracts		Derivative contracts			14,629				307
Natural gas commodity contracts		Derivative contracts			2,273				50
Crude oil commodity contracts		Derivative contracts long-term			—				980
Total				$	16,927			$	1,423
Liability Derivatives:
Derivatives designated as cash-flow hedging instruments:
Interest rate swap contracts		Derivative liability short-term		$	(170	)		$	(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			—				(1,667	)
Natural gas commodity contracts		Derivative liability short-term			—				(318	)
Crude oil commodity contracts		Derivative liability long-term			—				(25	)
Total				$	(170	)		$	(2,288	)
Total derivative instruments				$	16,757			$	(865	)

Effect of Derivative Instruments on Consolidated Statements of Operations

The following table sets forth the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2014 and 2013:

		Location of gain/loss recognized in income		Amount of gain/loss recognized in income
(Thousands of dollars)				2014				2013
Derivative designated as cash-flow hedge instruments:
Interest rate swap contracts		Interest expense		$	(289	)		$	—
Derivatives not designated as cash-flow hedge instruments:
Natural gas commodity contracts		Unrealized gain (loss) on derivative instruments, net			2,542				(1,309	)
Crude oil commodity contracts		Unrealized gain on derivative instruments, net			15,032				660
Natural gas commodity contracts (a)		Realized gain (loss) on derivative instruments, net			(529	)			796
Crude oil commodity contracts (a)		Realized gain (loss) on derivative instruments, net			664				(2,118	)
				$	17,420			$	(1,971	)

(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 year ended December 31, 2014.

X

- 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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-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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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

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4B

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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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