Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 08/09/2016
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includes both cash and non-cash changes in fair value, are included in “Net investment gains (losses)” in the accompanying Condensed Consolidated Statements of Operations with a corresponding increase or decrease in the Condensed Consolidated Balance Sheets fair value amounts.
The following table presents Compass’ volumes and fair value of the oil and natural gas Derivative Financial Instruments as of June 30, 2016 (presented on a calendar-year basis): 

 
Volume Mmbtus/Mbbls
 
Weighted average strike price per Mmbtu/Bbl
 
Fair Value at June 30, 2016
Natural gas:
 
 
 
 
 
 
Two-way collars:
 
 
 
 
 
 
     June - December 2016
 
1,840

 
 
 
$
(0.5
)
Short call
 
 
 
$
2.77

 
 
Long put
 
 
 
2.15

 
 
     June - October 2016
 
1,230

 
 
 
(0.5
)
Short call
 
 
 
2.48

 
 
Long put
 
 
 
2.15

 
 
     November 2016 - March 2017
 
2,265

 
 
 
(0.6
)
Short call
 
 
 
3.36

 
 
Long put
 
 
 
2.70

 
 
     January 2017 - March 2017
 
450

 
 
 
—

Short call
 
 
 
3.80

 
 
Long put
 
 
 
3.05

 
 
Swaps:
 
 
 
 
 
 
     January 2017 - March 2017
 
450

 
 
 
—

Short call
 
 
 
3.35

 
 
Total natural gas
 
6,235

 
 
 
(1.6
)
Oil:
 
 
 
 
 
 
Three-way collars:
 
 
 
 
 
 
     July - December 2016
 
18

 
 
 
—

Short call
 
 
 
$
54.00

 
 
Long put
 
 
 
40.00

 
 
     May - December 2016
 
92

 
 
 
0.3

Short call
 
 
 
76.00

 
 
Long put
 
 
 
56.00

 
 
Short put
 
 
 
42.00

 
 
Total oil
 
110

 
 
 
0.3

Total oil and natural gas Derivative Financial Instruments
 
 
 
 
 
$
(1.3
)
At September 30, 2015, Compass had outstanding Derivative Financial Instruments to mitigate price volatility covering 3,380 Billion British Thermal Units (“Mmbtus”) of natural gas and 273 Thousand Barrels (“Mbbls”) of oil. At June 30, 2016, the average forward NYMEX oil prices per Bbl for the next 12 months was $50.94, and the average forward NYMEX natural gas prices per Mmbtu for the next 12 months was $3.13. Compass’ Derivative Financial Instruments covered approximately 36% and 42% of production volumes for the three and nine months ended June 30, 2016, respectively, and 64% and 58% of production volumes for the three and nine months ended June 30, 2015, respectively.
Credit Risk
Spectrum Brands is exposed to the risk of default by the counterparties with which Spectrum Brands transacts and generally does not require collateral or other security to support financial instruments subject to credit risk. Spectrum Brands monitors counterparty credit risk on an individual basis by periodically assessing each such counterparty’s credit rating exposure. The maximum loss due to credit risk equals the fair value of the gross asset derivatives that are concentrated with certain domestic and foreign financial institution counterparties. Spectrum Brands considers these exposures when measuring its credit reserve on its derivative assets, which was insignificant as of June 30, 2016 and September 30, 2015.
Spectrum Brands’ standard contracts do not contain credit risk related contingent features whereby Spectrum Brands would be required to post additional cash collateral as a result of a credit event. However, Spectrum Brands is typically required to post

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