Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block]

At September 30, 2011, the Company had the following derivative instruments that were designated as cash flow hedges.

	2011 Gross Notional
(In millions)	Volume (A)
Enogex processing hedges
NGLs sales	0.3
Natural gas purchases	1.3
Enogex marketing hedges
Natural gas sales	1.9

(A) Natural gas in million British thermal units; NGLs in barrels.

At September 30, 2011, the Company had the following derivative instruments that were not designated as hedging instruments.

(In millions)	Gross Notional Volume (A)
	Purchases	Sales
Natural gas (B)
Physical (C)(D)	16.5	58.0
Fixed Swaps/Futures	48.6	47.3
Options	19.2	13.0
Basis Swaps	7.7	8.1

(A) Natural gas in million British thermal units.  

(B) 85.5 percent of the natural gas contracts have durations of one year or less, 6.5 percent have durations of more than one year and less than two years and 8.0 percent have durations of more than two years.

(C) Of the natural gas physical purchases and sales volumes not designated as hedges, the majority are priced based on a monthly or daily index and the fair value is subject to little or no market price risk.

(D) Natural gas physical sales volumes exceed natural gas physical purchase volumes due to the marketing of natural gas volumes purchased via Enogex's processing contracts, which are not derivative instruments and are excluded from the table above.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair value of the derivative instruments that are presented in the Company's Condensed Consolidated Balance Sheet at September 30, 2011 are as follows:

		Fair Value
	Balance Sheet
Instrument	Location	Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments
NGLs
Financial Options	Current PRM	$	1.5	$	—
Natural Gas
Financial Futures/Swaps	Current PRM	—		8.0
	Other Current Assets	1.9		0.2
Total		$	3.4	$	8.2
Derivatives Not Designated as Hedging Instruments
Natural Gas
Financial Futures/Swaps	Current PRM	$	0.1	$	0.1
	Other Current Assets	33.5		31.7
Physical Purchases/Sales	Current PRM	1.8		0.4
	Non-Current PRM	0.3		0.1
Financial Options	Other Current Assets	0.3		0.2
Total		$	36.0	$	32.5
Total Gross Derivatives (A)		$	39.4	$	40.7

(A) See Note 5 for a reconciliation of the Company's total derivatives fair value to the Company's Condensed Consolidated Balance Sheet at September 30, 2011.

The fair value of the derivative instruments that are presented in the Company's Condensed Consolidated Balance Sheet at December 31, 2010 are as follows:

		Fair Value
	Balance Sheet
Instrument	Location	Assets		Liabilities
		(In millions)
Derivatives Designated as Hedging Instruments
NGLs
Financial Options	Current PRM	$	13.3	$	—
Natural Gas
Financial Futures/Swaps	Current PRM	—		28.8
	Other Current Assets	0.6		0.3
Total		$	13.9	$	29.1
Derivatives Not Designated as Hedging Instruments
Natural Gas
Financial Futures/Swaps	Current PRM	$	—	$	0.1
	Other Current Assets	20.0		19.8
Physical Purchases/Sales	Current PRM	1.4		1.2
	Non-Current PRM	0.8		—
Financial Options	Other Current Assets	0.5		0.7
Total		$	22.7	$	21.8
Total Gross Derivatives (A)		$	36.6	$	50.9

(A) See Note 5 for a reconciliation of the Company's total derivatives fair value to the Company's Condensed Consolidated Balance Sheet at December 31, 2010.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block]

The following tables present the effect of derivative instruments on the Company's Condensed Consolidated Statement of Income for the three months ended September 30, 2011.

Derivatives in Cash Flow Hedging Relationships

			Amount Reclassified
	Amount Recognized		from Accumulated Other			Amount
	in Other		Comprehensive Income			Recognized in
(In millions)	Comprehensive Income (A)		into Income			Income
NGLs Financial Options	$	0.2	$	(2.6	)	$	—
Natural Gas Financial Futures/Swaps	0.2		(7.5		)	—
Total	$	0.4	$	(10.1	)	$	—

(A) The estimated net amount of gains or losses included in Accumulated Other Comprehensive Income at September 30, 2011 that is expected to be reclassified into income within the next 12 months is a loss of $8.4 million.

Derivatives Not Designated as Hedging Instruments

	Amount
	Recognized in
(In millions)	Income
Natural Gas Physical Purchases/Sales	$	(2.2	)
Natural Gas Financial Futures/Swaps	0.2
Total	$	(2.0	)

The following tables present the effect of derivative instruments on the Company's Condensed Consolidated Statement of Income for the three months ended September 30, 2010.

Derivatives in Cash Flow Hedging Relationships

				Amount Reclassified
	Amount Recognized			from Accumulated Other			Amount
	in Other			Comprehensive Income			Recognized in
(In millions)	Comprehensive Income			into Income			Income
NGLs Financial Options	$	(12.2	)	$	1.5		$	—
NGLs Financial Futures/Swaps	(1.2		)	(0.3		)	—
Natural Gas Financial Futures/Swaps	(5.5		)	(6.7		)	—
Total	$	(18.9	)	$	(5.5	)	$	—

Derivatives Not Designated as Hedging Instruments

	Amount
	Recognized in
(In millions)	Income
Natural Gas Physical Purchases/Sales	$	(2.3	)
Natural Gas Financial Futures/Swaps	0.6
Total	$	(1.7	)

The following tables present the effect of derivative instruments on the Company's Condensed Consolidated Statement of Income for the nine months ended September 30, 2011.

Derivatives in Cash Flow Hedging Relationships

				Amount Reclassified
	Amount Recognized			from Accumulated Other			Amount
	in Other			Comprehensive Income			Recognized in
(In millions)	Comprehensive Income (A)			into Income			Income
NGLs Financial Options	$	(9.0	)	$	(8.3	)	$	—
Natural Gas Financial Futures/Swaps	—			(22.2		)	—
Total	$	(9.0	)	$	(30.5	)	$	—

(A) The estimated net amount of gains or losses included in Accumulated Other Comprehensive Income at September 30, 2011 that is expected to be reclassified into income within the next 12 months is a loss of $8.4 million.

Derivatives Not Designated as Hedging Instruments

	Amount
	Recognized in
(In millions)	Income
Natural Gas Physical Purchases/Sales	$	(7.1	)
Natural Gas Financial Futures/Swaps	(0.2		)
Total	$	(7.3	)

The following tables present the effect of derivative instruments on the Company's Condensed Consolidated Statement of Income for the nine months ended September 30, 2010.

Derivatives in Cash Flow Hedging Relationships

				Amount Reclassified
	Amount Recognized			from Accumulated Other			Amount
	in Other			Comprehensive Income			Recognized in
(In millions)	Comprehensive Income			into Income			Income
NGLs Financial Options	$	(1.2	)	$	2.0		$	—
NGLs Financial Futures/Swaps	2.1			(2.2		)	—
Natural Gas Financial Futures/Swaps	(15.4		)	(18.7		)	0.1
Total	$	(14.5	)	$	(18.9	)	$	0.1

Derivatives Not Designated as Hedging Instruments

	Amount
	Recognized in
(In millions)	Income
Natural Gas Physical Purchases/Sales	$	(6.4	)
Natural Gas Financial Futures/Swaps	0.8
Total	$	(5.6	)