|
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables)
|
12 Months Ended |
|
Dec. 31, 2014
|
| DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT [Abstract] |
|
| Open commodity swap contracts |
The following table reflects open commodity swap contracts as of December 31, 2014, the associated volumes and the corresponding fixed price.
Settlement Period |
|
Oil (Barrels) |
|
|
Fixed Price |
|
Swaps-Crude Oil |
|
|
|
|
|
|
01/01/15 – 06/30/15 |
|
|
360,000 |
|
|
|
89.15 |
|
01/01/15 – 06/30/15 |
|
|
60,000 |
|
|
|
90.50 |
|
01/01/15 – 06/30/15 |
|
|
180,000 |
|
|
|
88.55 |
|
01/01/15 – 06/30/15 |
|
|
180,000 |
|
|
|
88.00 |
|
01/01/15 – 06/30/15 |
|
|
60,000 |
|
|
|
90.75 |
|
01/01/15 – 06/30/15 |
|
|
60,000 |
|
|
|
90.25 |
|
01/01/15 – 06/30/15 |
|
|
90,000 |
|
|
|
89.00 |
|
01/01/15 – 06/30/15 |
|
|
90,000 |
|
|
|
89.00 |
|
01/01/15 – 12/31/15 |
|
|
720,000 |
|
|
|
89.00 |
|
01/01/15 – 12/31/15 |
|
|
360,000 |
|
|
|
89.00 |
|
01/01/15 – 12/31/15 |
|
|
360,000 |
|
|
|
89.02 |
|
01/01/15 – 12/31/15 |
|
|
180,000 |
|
|
|
89.00 |
|
01/01/15 – 12/31/15 |
|
|
180,000 |
|
|
|
89.00 |
|
07/01/15 – 12/31/15(1)
|
|
|
180,000 |
|
|
|
90.75 |
|
07/01/15 – 12/31/15(1)
|
|
|
180,000 |
|
|
|
91.00 |
|
07/01/15 – 12/31/15(1)
|
|
|
180,000 |
|
|
|
91.25 |
|
07/01/15 – 06/30/16 |
|
|
360,000 |
|
|
|
89.00 |
|
07/01/15 – 06/30/16 |
|
|
360,000 |
|
|
|
90.00 |
|
07/01/15 – 06/30/16 |
|
|
360,000 |
|
|
|
91.00 |
|
01/01/16 – 06/30/16 |
|
|
180,000 |
|
|
|
90.00 |
|
01/01/16 – 06/30/16 |
|
|
90,000 |
|
|
|
90.00 |
|
01/01/16 – 06/30/16 |
|
|
90,000 |
|
|
|
90.00 |
|
_________________
(1) |
The Company has entered into crude oil derivative contracts that give counterparties the option to extend certain current derivative contracts for an additional six-month period. Options covering a notional volume of 90,000 barrels per month are exercisable on or about December 31, 2015. If the counterparties exercise all such options, the notional volume of the Company’s existing crude oil derivative contracts will increase by 90,000 barrels per month at an average price of $91.00 per barrel for each month during the period January 1, 2016 through June 30, 2016. |
|
| Schedule of weighted average price of open commodity derivative contracts |
The following table reflects the weighted average price of open commodity derivative contracts as of December 31, 2014, by year with associated volumes.
|
Weighted Average Price
Of Open Commodity Swap Contracts
|
|
Year |
|
Volumes (Bbl) |
|
|
Weighted
Average Price
|
|
2015 |
|
|
3,960,000 |
|
|
|
89.43 |
|
2016 |
|
|
900,000 |
|
|
|
90.00 |
|
|
| Derivatives instruments balance sheet location |
The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at December 31, 2014 and 2013, respectively. Certain amounts may be presented on a net basis on the consolidated financial statements when such amounts are with the same counterparty and subject to a master netting arrangement:
Type of Crude Oil Contract |
|
Balance Sheet Location |
|
|
December 31,
Estimated Fair Value
|
| |
2014 |
|
|
|
2013 |
| |
|
|
|
|
|
|
|
|
|
|
Derivative Assets: |
|
|
|
|
|
|
|
|
|
|
Swap Contracts |
|
Current Assets |
|
|
$ |
128,893,220 |
|
|
$ |
62,890 |
Swap Contracts |
|
Non-Current Assets |
|
|
|
25,013,011 |
|
|
|
1,745,405 |
Total Derivative Assets |
|
|
|
|
$ |
153,906,231 |
|
|
$ |
1,808,295 |
| |
|
|
|
|
|
|
|
|
|
|
Derivative Liabilities: |
|
|
|
|
|
|
|
|
|
|
Swap Contracts |
|
Current Liabilities |
|
|
|
- |
|
|
|
(19,111,820) |
Costless Collars |
|
Current Assets/Liabilities |
|
|
|
- |
|
|
|
(7,826) |
Swap Contracts |
|
Non-Current Liabilities |
|
|
|
- |
|
|
|
(637,208) |
Swaption Contracts |
|
Non-Current Liabilities |
|
|
$ |
(579,070) |
|
|
$ |
- |
Total Derivative Liabilities |
|
|
|
|
$ |
(579,070) |
|
|
$ |
(19,756,854) |
|
| Gain (loss) in statement of income |
The following disclosures are applicable to the Company’s financial statements, as of December 31, 2014, 2013 and 2012:
Derivative Type |
|
Location of Loss for Effective and Ineffective Portion of Derivative in Income |
|
Amount of Loss Reclassified from AOCI into Income |
|
| |
|
|
|
Year Ended December 31, |
|
| |
|
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
Commodity – Cash Flow |
|
Loss on Settled Derivatives |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
101,309 |
|
|
| Reconciliation between gross assets and liabilities and the amounts reflected on balance sheet |
The tables presented below provide reconciliation between the gross assets and liabilities and the amounts reflected on the balance sheet. The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates.
| |
|
Estimated Fair Value at December 31, 2014 |
|
| |
|
Gross Amounts of Recognized Assets |
|
|
Gross Amounts Offset in the
Balance Sheet
|
|
|
Net Amounts of Assets Presented in the Balance Sheet |
|
| |
|
|
|
|
|
|
|
|
|
Offsetting of Derivative Assets: |
|
|
|
|
Current Assets |
|
$ |
128,893,220 |
|
|
$ |
- |
|
|
$ |
128,893,220 |
|
Non-Current Assets |
|
|
25,013,011 |
|
|
|
- |
|
|
|
25,013,011 |
|
Total Derivative Assets |
|
$ |
153,906,231 |
|
|
$ |
- |
|
|
$ |
153,906,231 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Offsetting of Derivative Liabilities: |
|
|
|
|
|
Current Liabilities |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Non-Current Liabilities |
|
|
(579,070 |
) |
|
|
- |
|
|
|
(579,070 |
) |
Total Derivative Liabilities |
|
$ |
(579,070 |
) |
|
$ |
- |
|
|
$ |
(579,070 |
) |
| |
|
Estimated Fair Value at December 31, 2013 |
|
| |
|
Gross Amounts of Recognized Assets |
|
|
Gross Amounts Offset in the
Balance Sheet
|
|
|
Net Amounts of Assets Presented in the Balance Sheet |
|
| |
|
|
|
|
|
|
|
|
|
Offsetting of Derivative Assets: |
|
|
|
|
Current Assets |
|
$ |
629,178 |
|
|
$ |
(566,288 |
) |
|
$ |
62,890 |
|
Non-Current Assets |
|
|
2,589,079 |
|
|
|
(843,674 |
) |
|
|
1,745,405 |
|
Total Derivative Assets |
|
$ |
3,218,257 |
|
|
$ |
(1,409,962 |
) |
|
$ |
1,808,295 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Offsetting of Derivative Liabilities: |
|
|
|
|
|
Current Liabilities |
|
$ |
(19,685,934 |
) |
|
$ |
566,288 |
|
|
$ |
(19,119,646 |
) |
Non-Current Liabilities |
|
|
(1,480,882 |
) |
|
|
843,674 |
|
|
|
(637,208 |
) |
Total Derivative Liabilities |
|
$ |
(21,166,816 |
) |
|
$ |
1,409,962 |
|
|
$ |
(19,756,854 |
) |
|