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Fair Value (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value  
Schedule of financial instruments carried at fair value

The following table presents the financial instruments carried at fair value as of December 31, 2013 and 2012 and by the valuation hierarchy (in thousands):

As of December 31, 2013
  Assets   Liabilities  

Significant other observable inputs (Level 2)

              

Commodity contracts

   $ 544   $ (4,691 )

Significant unobservable inputs (Level 3)

              

Commodity contracts

     8,142     (13,602 )

Embedded derivatives in commodity contracts

     3,276     (38,308 )
           
​ ​ ​ ​ ​ ​ ​ ​

Total carrying value in Consolidated Balance Sheet

   $ 11,962   $ (56,601 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

 

As of December 31, 2012
  Assets   Liabilities  

Significant other observable inputs (Level 2)

              

Commodity contracts

   $ 8,441   $ (15,970 )

Significant unobservable inputs (Level 3)

              

Commodity contracts

     15,795     (3,346 )

Embedded derivatives in commodity contracts

     6,146     (40,103 )
           
​ ​ ​ ​ ​ ​ ​ ​

Total carrying value in Consolidated Balance Sheet

   $ 30,382   $ (59,419 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
Schedule of information about significant unobservable inputs used in the valuation of Level 3 instruments
Level 3 Instrument
  Balance
Sheet
Classification		   Unobservable Inputs   Value Range   Time Period

Commodity contracts

   Assets   Forward propane prices (per gallon)(1)   $1.07 - $1.26   Jan. 2014 - Dec. 2014

       Forward isobutane prices (per gallon)(1)   $1.32 - $1.40   Jan. 2014 - Dec. 2014

       Forward normal butane prices (per gallon)(1)   $1.26 - $1.36   Jan. 2014 - Dec. 2014

       Forward natural gasoline prices (per gallon)(1)   $2.02 - $2.13   Jan. 2014 - Dec. 2014

       Crude option volatilities (%)   10.43% - 19.76%   Jan. 2014 - Dec. 2014

 

  

Liabilities

  

Forward propane prices (per gallon)(1)

  

$1.07 - $1.26

  

Jan. 2014 - Dec. 2014

 

       Forward isobutane prices (per gallon)(1)   $1.32 - $1.40   Jan. 2014 - Dec. 2014

 

       Forward normal butane prices (per gallon)(1)   $1.26 - $1.36   Jan. 2014 - Dec. 2014

 

       Forward natural gasoline prices (per gallon)(1)   $2.02 - $2.13   Jan. 2014 - Dec. 2014

 

       Crude option volatilities (%)   8.92% - 21.29%   Jan. 2014 - Jul. 2014

Embedded derivatives in commodity contracts

  

Asset

  

ERCOT Pricing (per Megawatt Hour)(2)

  

$33.98 - $62.96

  

Jan. 2014 - Dec. 2014

 

  

Liability

  

Forward propane prices (per gallon)(1)

  

$0.91 - $1.26

  

Jan. 2014 - Dec. 2022

 

       Forward isobutane prices (per gallon)(1)   $1.27 - $1.40   Jan. 2014 - Dec. 2022

 

       Forward normal butane prices (per gallon)(1)   $1.19 - $1.36   Jan. 2014 - Dec. 2022

 

       Forward natural gasoline prices (per gallon)(1)   $1.82 - $2.13   Jan. 2014 - Dec. 2022

 

       Forward natural gas prices (per MMBtu)(3)   $3.50 - $4.59   Jan. 2014 - Dec. 2022

 

       Probability of renewal(4)   0%    
(1)
NGL prices decrease over the respective periods.

(2)
The forward ERCOT prices utilized in the valuations are generally flat at the low end of the range with a seasonal spike in pricing in the summer months.

(3)
Natural gas prices used in the valuations are generally at the lower end of the range in the early years and increase over time.

(4)
The producer counterparty to the embedded derivative has the option to renew the gas purchase agreement and the related keep-whole processing agreement for two successive five-year terms after 2022. The embedded gas purchase agreement cannot be renewed without the renewal of the related keep-whole processing agreement. Due to the significant number of years until the renewal options are exercisable and the high level of uncertainty regarding the counterparty's future business strategy, the future commodity price environment, and the future competitive environment for midstream services in the Appalachia area, management determined that a 0% probability of renewal is an appropriate assumption.
Schedule of changes in Level 3 fair value measurements

The tables below include a roll forward of the balance sheet amounts for the years ended December 31, 2013 and 2012 (including the change in fair value) for assets and liabilities classified by the Partnership within Level 3 of the valuation hierarchy (in thousands):

 
   Year Ended December 31, 2013  
 
   Commodity
Derivative
Contracts (net)		   Embedded
Derivatives
in Commodity
Contracts (net)		  

Fair value at beginning of period

   $ 12,449   $ (33,957 )

Total loss (realized and unrealized) included in earnings(1)

     (19,157 )   (10,336 )

Settlements

     1,248     9,261  
           
​ ​ ​ ​ ​ ​ ​ ​

Fair value at end of period

   $ (5,460 ) $ (35,032 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

The amount of total losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at end of period

   $ (13,040 ) $ (8,559 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

 

 
   Year Ended December 31, 2012  
 
   Commodity
Derivative
Contracts (net)		   Embedded
Derivatives
in Commodity
Contracts (net)		  

Fair value at beginning of period

   $ (2,965 ) $ (53,904 )

Total gain (realized and unrealized) included in earnings(1)

     17,153     9,199  

Settlements

     (1,739 )   10,748  
           
​ ​ ​ ​ ​ ​ ​ ​

Fair value at end of period

   $ 12,449   $ (33,957 )
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

The amount of total gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at end of period

   $ 8,213   $ 8,175  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           
(1)
Gains and losses on Commodity Derivative Contracts classified as Level 3 are recorded in Derivative (loss) gain—revenue in the accompanying Consolidated Statements of Operations. Gains and losses on Embedded Derivatives in Commodity Contracts are recorded in Purchased product costs, Derivative (gain) loss related to purchased product costs and Derivative loss (gain) related to facility expenses.