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

Quarterly report pursuant to Section 13 or 15(d)

Derivative Financial Instruments (Tables)

Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Open Commodity Derivatives

As of September 30, 2016, our open commodity derivative contracts were as follows:

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

Notional ⁽¹⁾

Weighted Average Contract Price

Quantity

Put Option

Call Option

Termination Period

(Bbls/day)

(Bbls)

(Bought)

(Sold)

2016:

4th Quarter

5,000

460,000

40.00

81.47

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

Notional ⁽¹⁾

Weighted Average Contract Price

Quantity

Put Option

Call Option

Termination Period

(MMBTUs/day)

(MMBTUs)

(Bought)

(Sold)

(Bought)

2016:

4th Quarter ⁽²⁾

40,000

2,440,000

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 October 2016 production were priced and closed in September 2016 and are not included in the above table as these were not open derivative contracts as of September 30, 2016.

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 indicated in the following table (in thousands):

	September 30,		December 31,
	2016		2015
Prepaid and other assets	$	112	$	7,672
Accrued liabilities		47		—

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):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2016		2015			2016		2015
Derivative (gain) loss	$	412	$	(10,231	)	$	2,861	$	(9,153	)

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

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

	Nine Months Ended
	September 30,
	2016		2015
Cash receipts on derivative settlements, net	$	4,746	$	2,139