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Price Risk Management Assets And Liabilities (Tables)
9 Months Ended
Sep. 30, 2011
General Discussion of Derivative Instruments and Hedging Activities [Abstract] 
Outstanding Commodity-Related Derivatives
The following table details our outstanding commodity-related derivatives:
 
 
September 30, 2011
 
December 31, 2010
 
Notional
Volume
 
Maturity
 
Notional
Volume
 
Maturity
Mark-to-Market Derivatives
 
 
 
 
 
 
 
Natural Gas:
 
 
 
 
 
 
 
Basis Swaps IFERC/NYMEX (MMBtu)
(39,952,500
)
 
2011-2013
 
(38,897,500
)
 
2011
Swing Swaps IFERC (MMBtu)
30,517,500

 
2011-2013
 
(19,720,000
)
 
2011
Fixed Swaps/Futures (MMBtu)
(15,517,500
)
 
2011-2012
 
(2,570,000
)
 
2011
Forward Physical Contracts (MMBtu)
12,324,054

 
2011-2012
 
—

 
—
Options — Calls (MMBtu)
—

 
—
 
(3,000,000
)
 
2011
Propane:
 
 
 
 
 
 
 
Forwards/Swaps (Gallons)
52,668,000

 
2011-2012
 
1,974,000

 
2011
Fair Value Hedging Derivatives
 
 
 
 
 
 
 
Natural Gas:
 
 
 
 
 
 
 
Basis Swaps IFERC/NYMEX (MMBtu)
(19,685,000
)
 
2011-2012
 
(28,050,000
)
 
2011
Fixed Swaps/Futures (MMBtu)
(29,837,500
)
 
2011-2012
 
(39,105,000
)
 
2011
Hedged Item — Inventory (MMBtu)
29,837,500

 
2011
 
39,105,000

 
2011
Cash Flow Hedging Derivatives
 
 
 
 
 
 
 
Natural Gas:
 
 
 
 
 
 
 
Fixed Swaps/Futures (MMBtu)
460,000

 
2011
 
(210,000
)
 
2011
Options — Puts (MMBtu)
9,390,000

 
2011-2012
 
26,760,000

 
2011-2012
Options — Calls (MMBtu)
(9,390,000
)
 
2011-2012
 
(26,760,000
)
 
2011-2012
Propane:
 
 
 
 
 
 
 
Forwards/Swaps (Gallons)
—

 
—
 
32,466,000

 
2011
Interest Rate Swaps Outstanding
We had the following interest rate swaps outstanding as of September 30, 2011 and December 31, 2010, none of which were designated as hedges for accounting purposes:
 
Term
 
Type (1)
 
Notional Amount Outstanding
September 30, 2011
 
December 31, 2010
May 2012(2)
 
Forward starting to pay a fixed rate of 2.59% and receive a floating rate
 
$
350,000

 
$
—

August 2012(2)
 
Forward starting to pay a fixed rate of 3.51% and receive a floating rate
 
500,000

 
400,000

July 2013(2)
 
Forward starting to pay a fixed rate of 4.02% and receive a floating rate
 
300,000

 
—

July 2018
 
Pay a floating rate plus a spread of 4.01% and receive a fixed rate of 6.70%
 
500,000

 
500,000

 
(1) 
As of September 30, 2011. Floating rates are based on 3-month LIBOR.
(2) 
These forward starting swaps have a term of 10 years with a mandatory termination date the same as the effective date.
Fair Value Of Derivative Instruments
The following table provides a balance sheet overview of the Partnership’s derivative assets and liabilities as of September 30, 2011 and December 31, 2010:
 
 
Fair Value of Derivative Instruments
 
Asset Derivatives
 
Liability Derivatives
 
September 30, 2011
 
December 31, 2010
 
September 30, 2011
 
December 31, 2010
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
Commodity derivatives (margin deposits)
$
43,337

 
$
35,031

 
$
(461
)
 
$
(6,631
)
Commodity derivatives
158

 
6,589

 
(154
)
 
—

 
43,495

 
41,620

 
(615
)
 
(6,631
)
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity derivatives (margin deposits)
146,589

 
64,940

 
(149,598
)
 
(72,729
)
Commodity derivatives
815

 
275

 
(2,568
)
 
—

Interest rate derivatives
30,564

 
20,790

 
(98,580
)
 
(18,338
)
 
177,968

 
86,005

 
(250,746
)
 
(91,067
)
Total derivatives
$
221,463

 
$
127,625

 
$
(251,361
)
 
$
(97,698
)
Partnership's Derivative Assets And Liabilities
The following tables summarize the amounts recognized with respect to our derivative financial instruments for the periods presented:
 
 
Change in Value Recognized in OCI on Derivatives
(Effective Portion)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2011
 
2010
 
2011
 
2010
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
Commodity derivatives
$
6,127

 
$
36,035

 
$
14,470

 
$
60,992

Interest rate derivatives
—

 
(1,162
)
 
—

 
(1,367
)
Total
$
6,127

 
$
34,873

 
$
14,470

 
$
59,625

 
 
Location of Gain/(Loss)
Reclassified from
AOCI into Income
(Effective Portion)
 
Amount of Gain/(Loss)
Reclassified from AOCI into Income
(Effective Portion)
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2011
 
2010
 
2011
 
2010
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Commodity derivatives
Cost of products sold
 
$
5,116

 
$
6,780

 
$
27,069

 
$
19,153

Interest rate derivatives
Interest expense
 
—

 
(1,635
)
 
—

 
(1,493
)
Total
 
 
$
5,116

 
$
5,145

 
$
27,069

 
$
17,660

 
 
Location of Gain/(Loss)
Reclassified from
AOCI into Income
(Ineffective Portion)
 
Amount of Gain/(Loss) Recognized
in Income on Ineffective Portion
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2011
 
2010
 
2011
 
2010
Derivatives in cash flow hedging relationships:
 
 
 
 
 
 
 
 
Commodity derivatives
Cost of products sold
 
$
(112
)
 
$
241

 
$
351

 
$
346

Total
 
 
$
(112
)
 
$
241

 
$
351

 
$
346

 
 
Location of Gain/(Loss)
Recognized in Income
on Derivatives
 
Amount of Gain/(Loss) Recognized in
Income representing hedge ineffectiveness
and amount excluded from the assessment of
effectiveness
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2011
 
2010
 
2011
 
2010
Derivatives in fair value hedging relationships (including hedged item):
 
 
 
 
 
 
 
 
Commodity derivatives
Cost of products sold
 
$
(3,559
)
 
$
9,968

 
$
18,732

 
$
9,001

Total
 
 
$
(3,559
)
 
$
9,968

 
$
18,732

 
$
9,001


 
Location of Gain/(Loss)
Recognized in Income
on Derivatives
 
Amount of Gain/(Loss)
Recognized in Income
on Derivatives
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2011
 
2010
 
2011
 
2010
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
Commodity derivatives
Cost of products sold
 
$
9,175

 
$
9,438

 
$
4,174

 
$
10,110

Interest rate derivatives
Losses on non-hedged
interest rate
derivatives
 
(68,595
)
 
(11,963
)
 
(64,705
)
 
(11,963
)
Total
 
 
$
(59,420
)
 
$
(2,525
)
 
$
(60,531
)
 
$
(1,853
)