Balance Sheet
At December 31, 2011 and 2010, we had the following outstanding commodity derivative contracts
recorded in our balance sheet (in thousands):
Estimated Fair Value
Year Ended December 31,
Instrument Type
Balance Sheet Classification
2011
2010
Crude oil puts Commodity derivative contracts - current assets
$
- $ 23,910
Crude oil collars Commodity derivative contracts - current assets (liabilities)
10,623
(317)
Natural gas puts Commodity derivative contracts - current assets
41,335
-
Natural gas collars Commodity derivative contracts - current assets (liabilities)
13,163
(10,469)
Crude oil puts Commodity derivative contracts - non-current assets
48,306
64,266
Natural gas puts Commodity derivative contracts - non-current assets
-
15,254
Natural gas swaps Commodity derivative contracts - non-current assets
12,951
-
Total derivative instruments
$ 126,378 $ 92,644
The following table provides supplemental information to reconcile the fair value of our derivative
contracts to our balance sheet at December 31, 2011 and 2010, considering the deferred premiums,
accrued interest and related settlement payable/receivable amounts which are not included in the fair
value amounts disclosed in the table above (in thousands):
Year Ended December 31,
2011
2010
Net fair value asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 126,378 $ 92,644
Deferred premium and accrued interest on derivative contracts . . . . . .
(62,430)
(164,155)
Settlement payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5,106)
(6,200)
Settlement receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
216
-
Net commodity derivative asset (liability) . . . . . . . . . . . . . . . . . . . . . . . . $ 59,058 $
(77,711)
Commodity derivative contracts - current asset . . . . . . . . . . . . . . . . . . . $ 50,964 $
-
Commodity derivative contracts - non-current asset . . . . . . . . . . . . . . .
12,678
-
Commodity derivative contracts - current liability . . . . . . . . . . . . . . . . . .
(3,761)
(52,971)
Commodity derivative contracts - non-current liability . . . . . . . . . . . . . .
(823)
(24,740)
$ 59,058 $
(77,711)
We present the fair value of our derivative contracts on a net basis where the right of offset is
provided for in our counterparty agreements.
Income Statement
During the years ended December 31, 2011, 2010 and 2009, pre-tax amounts recognized in our
income statements for derivative transactions were as follows (in thousands):
Year Ended December 31,
2011
2010
2009
Gain (loss) on mark-to-market derivative contracts . . . . . . . . . . . . . . . . $ 81,981 $ (60,695) $ (7,017)
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