Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments (Tables)

v3.5.0.2
Derivative Instruments (Tables)
 9 Months Ended
Sep. 30, 2016
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule Of Derivative Instruments
Below is a summary of the Company's open fixed price swap positions as of September 30, 2016. 
 
Location
Daily Volume
(Bbls/day)
 
Weighted
Average Price
October 2016 - June 2017
ARGUS LLS
2,000

 
$
51.10

 
Location
Daily Volume (MMBtu/day)
 
Weighted
Average Price
October 2016
NYMEX Henry Hub
570,000

 
$
3.05

November 2016 - December 2016
NYMEX Henry Hub
525,000

 
$
3.18

January 2017 - February 2017
NYMEX Henry Hub
442,500

 
$
3.14

March 2017
NYMEX Henry Hub
422,500

 
$
3.13

April 2017 - June 2017
NYMEX Henry Hub
367,500

 
$
3.15

July 2017 - October 2017
NYMEX Henry Hub
305,000

 
$
2.99

November 2017 - December 2017
NYMEX Henry Hub
435,000

 
$
3.06

January 2018 - March 2018
NYMEX Henry Hub
290,000

 
$
3.10

April 2018 - December 2018
NYMEX Henry Hub
160,000

 
$
3.01

January 2019 - March 2019
NYMEX Henry Hub
20,000

 
$
3.37



 
Location
Daily Volume
(Bbls/day)
 
Weighted
Average Price
October 2016 - December 2016
Mont Belvieu
1,500

 
$
19.95


The Company sold call options and used the associated premiums to enhance the fixed price for a portion of the fixed price natural gas swaps listed above. Each short call option has an established ceiling price. When the referenced settlement price is above the price ceiling established by these short call options, the Company pays its counterparty an amount equal to the difference between the referenced settlement price and the price ceiling multiplied by the hedged contract volume.
 
Location
Daily Volume (MMBtu/day)
 
Weighted Average Price
January 2017 - March 2017
NYMEX Henry Hub
105,000

 
$
3.27

April 2017 - December 2017
NYMEX Henry Hub
125,000

 
$
3.21

January 2018 - March 2018
NYMEX Henry Hub
20,000

 
$
2.91

Schedule of Natural Gas Basis Swap Position Derivatives
As of September 30, 2016, the Company had the following natural gas basis swap positions for MichCon and Tetco M2, respectively.
 
Location
Daily Volume (MMBtu/day)
 
Hedged Differential
October 2016 - December 2016
MichCon
40,000

 
$
0.02

November 2016 - March 2017
Tetco M2
50,000

 
$
(0.59
)
Schedule Of Derivative Instruments In Statement Of Financial Position
The following table presents the fair value of the Company's derivative instruments on a gross basis at September 30, 2016:
 
(In thousands)
Short-term derivative instruments - asset
$
39,363

Long-term derivative instruments - asset
$
15,262

Short-term derivative instruments - liability
$
37,220

Long-term derivative instruments - liability
$
14,907

Derivative Instruments, Gain (Loss)
The following table presents the net gain and loss recognized in gas sales, oil and condensate sales and natural gas liquids sales in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015.
 
Net gain (loss) on derivative instruments
 
Three months ended September 30,
 
Nine months ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Gas sales
$
33,167

 
$
79,684

 
$
(43,454
)
 
$
118,137

Oil and condensate sales
1,708

 
12,072

 
362

 
13,641

Natural gas liquids sales
406

 
—

 
(1,284
)
 
—

Total net gain (loss)
$
35,281

 
$
91,756

 
$
(44,376
)
 
$
131,778