W&T Offshore, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments (Tables)

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Instruments And Hedging Activities Disclosure [Abstract]

As of December 31, 2015, our open commodity derivative contracts were as follows:

Crude Oil: Two-way collars, Priced off WTI (NYMEX)

		Notional		Notional		Weighted Average Contract Price
		Quantity		Quantity		Put Option		Call Option
Termination Period		(Bbls/day) ⁽¹⁾		(Bbls) ⁽¹⁾		(Bought)		(Sold)
2016:	1st Quarter		5,000		455,000	$	40.00	$	81.47
	2nd Quarter		5,000		455,000		40.00		81.47
	3rd Quarter		5,000		460,000		40.00		81.47
	4th Quarter		5,000		460,000		40.00		81.47
					1,830,000		40.00		81.47

Natural Gas: Three-way collars, Priced off Henry Hub (NYMEX)

		Notional		Notional		Weighted Average Contract Price
		Quantity		Quantity		Put Option		Call Option		Call Option
Termination Period		(MMBTUs/day) ⁽¹⁾		(MMBTUs) ⁽¹⁾		(Bought)		(Sold)		(Bought)
2016:	1st Quarter ⁽²⁾		40,000		2,400,000	$	2.25	$	3.50	$	3.77
	2nd Quarter		40,000		3,640,000		2.25		3.50		3.77
	3rd Quarter		40,000		3,680,000		2.25		3.50		3.77
	4th Quarter		40,000		3,680,000		2.25		3.50		3.77
					13,400,000		2.25		3.50		3.77

(1)

Volume Measurements: Bbls – barrelsMMBTUs – million British Thermal Units.

(2)

The natural gas derivative contracts are priced and closed in the last week prior to the related production month. Natural gas derivative contracts related to January 2016 production were priced and closed in December 2015 and are excluded in the above table as these were closed contracts as of December 31, 2015.

Estimated Fair Value of Derivative Contracts

The following balance sheet line items included amounts related to the estimated fair value of our open commodity derivative contracts as reported in the following table (in thousands):

	December 31,
	2015		2014
Prepaid and other assets - current	$	7,672	$	—

Changes in Fair Value and Settlements of Commodity Derivative Contracts

Changes in the fair value and settlements of our commodity derivative contracts were as follows (in thousands):

	Year Ended December 31,
	2015			2014			2013
Derivative (gain) loss:	$	(14,375	)	$	(3,965	)	$	8,470

Cash Payments on Derivative Settlements, Net Included within Net Cash Provided by Operating Activities

Cash receipts (payments), net, on commodity derivative contract settlements are included within Net cash provided by operating activities on the Consolidated Statements of Cash Flows and were as follows (in thousands):

	Year Ended December 31,
	2015		2014			2013
Cash receipts (payments) on derivative settlements, net	$	6,703	$	(5,318	)	$	(8,589	)