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Fair Value Measurements
 3 Months Ended
Mar. 31, 2014
Fair Value Measurements [Abstract]  
Fair Value Measurements
FAIR VALUE MEASUREMENTS:
We have commodity derivatives, interest rate derivatives and embedded derivatives in the Regency Preferred Units that are accounted for as assets and liabilities at fair value in our consolidated balance sheets. We determine the fair value of our assets and liabilities subject to fair value measurement by using the highest possible “level” of inputs. Level 1 inputs are observable quotes in an active market for identical assets and liabilities. We consider the valuation of commodity derivatives transacted through a clearing broker with a published price from the appropriate exchange as a Level 1 valuation. Level 2 inputs are inputs observable for similar assets and liabilities. We consider OTC commodity derivatives entered into directly with third parties as a Level 2 valuation since the values of these derivatives are quoted on an exchange for similar transactions. Additionally, we consider our options transacted through our clearing broker as having Level 2 inputs due to the level of activity of these contracts on the exchange in which they trade. We consider the valuation of our interest rate derivatives as Level 2 as the primary input, the LIBOR curve, is based on quotes from an active exchange of Eurodollar futures for the same period as the future interest swap settlements, and we discount the future cash flows accordingly, including the effects of credit risk. Level 3 inputs are unobservable. Derivatives related to the Regency Preferred Units are valued using a binomial lattice model. The market inputs utilized in the model include credit spread, probabilities of the occurrence of certain events, common unit price, dividend yield, and expected value, and are considered Level 3.
Based on the estimated borrowing rates currently available to us and our subsidiaries for loans with similar terms and average maturities, the aggregate fair value of our consolidated debt obligations as of March 31, 2014 and December 31, 2013 was $27.64 billion and $23.97 billion, respectively. As of March 31, 2014 and December 31, 2013, the aggregate carrying amount of our consolidated debt obligations was $26.29 billion and $23.20 billion, respectively. The fair value of our consolidated debt obligations is a Level 2 valuation based on the observable inputs used for similar liabilities.
The following tables summarize the fair value of our financial assets and liabilities measured and recorded at fair value on a recurring basis as of March 31, 2014 and December 31, 2013 based on inputs used to derive their fair values:
 
Fair Value Measurements at
March 31, 2014
 
Fair Value
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Interest rate derivatives
$
4

 
$
—

 
$
4

 
$
—

Commodity derivatives:
 
 
 
 
 
 
 
Condensate — Forward Swaps
—

 
—

 
—

 
—

Natural Gas:
 
 
 
 
 
 
 
Basis Swaps IFERC/NYMEX
5

 
5

 
—

 
—

Swing Swaps IFERC
1

 
1

 
—

 
—

Fixed Swaps/Futures
118

 
118

 
—

 
—

NGLs — Forwards/Swaps
6

 
3

 
3

 
—

Power:
 
 
 
 
 
 
 
Forwards
5

 
—

 
5

 
—

Futures
1

 
1

 
—

 


Refined Products — Futures
1

 
1

 
—

 
—

Crude — Futures
1

 
1

 
—

 
—

Total commodity derivatives
138

 
130

 
8

 
—

Total assets
$
142

 
$
130

 
$
12

 
$
—

Liabilities:
 
 
 
 
 
 
 
Interest rate derivatives
$
(96
)
 
$
—

 
$
(96
)
 
$
—

Embedded derivatives in the Regency Preferred Units
(20
)
 
—

 
—

 
(20
)
Commodity derivatives:
 
 
 
 
 
 
 
Natural Gas:
 
 
 
 
 
 
 
Basis Swaps IFERC/NYMEX
(3
)
 
(3
)
 
—

 
—

Swing Swaps IFERC
(4
)
 
(4
)
 
—

 
—

Fixed Swaps/Futures
(145
)
 
(135
)
 
(10
)
 
—

NGLs — Forwards/Swaps
(6
)
 
(5
)
 
(1
)
 
—

Power:
 
 
 
 
 
 
 
Forwards
(2
)
 
—

 
(2
)
 
—

Futures
(3
)
 
(3
)
 
—

 
—

Refined Products — Futures
(1
)
 
(1
)
 
—

 
—

Total commodity derivatives
(164
)
 
(151
)
 
(13
)
 
—

Total liabilities
$
(280
)
 
$
(151
)
 
$
(109
)
 
$
(20
)


 
Fair Value Measurements at
December 31, 2013
 
Fair Value
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Interest rate derivatives
$
47

 
$
—

 
$
47

 
$
—

Commodity derivatives:
 
 
 
 
 
 
 
Natural Gas:
 
 
 
 
 
 
 
Basis Swaps IFERC/NYMEX
5

 
5

 
—

 
—

Swing Swaps IFERC
8

 
1

 
7

 
—

Fixed Swaps/Futures
203

 
201

 
2

 
—

NGLs — Swaps
7

 
5

 
2

 
—

Power — Forwards
3

 
—

 
3

 
—

Refined Products — Futures
5

 
5

 
—

 
—

Total commodity derivatives
231

 
217

 
14

 
—

Total Assets
$
278

 
$
217

 
$
61

 
$
—

Liabilities:
 
 
 
 
 
 
 
Interest rate derivatives
$
(95
)
 
$
—

 
$
(95
)
 
$
—

Embedded derivatives in the Regency Preferred Units
(19
)
 
—

 
—

 
(19
)
Commodity derivatives:
 
 
 
 
 
 
 
Condensate — Forward Swaps
(1
)
 
—

 
(1
)
 
—

Natural Gas:
 
 
 
 
 
 
 
Basis Swaps IFERC/NYMEX
(4
)
 
(4
)
 
—

 
—

Swing Swaps IFERC
(6
)
 
—

 
(6
)
 
—

Fixed Swaps/Futures
(206
)
 
(201
)
 
(5
)
 
—

Forward Physical Contracts
(1
)
 
—

 
(1
)
 
—

NGLs — Swaps
(9
)
 
(5
)
 
(4
)
 
—

Power — Forwards
(1
)
 
—

 
(1
)
 
—

Refined Products — Futures
(5
)
 
(5
)
 
—

 
—

Total commodity derivatives
(233
)
 
(215
)
 
(18
)
 
—

Total Liabilities
$
(347
)
 
$
(215
)
 
$
(113
)
 
$
(19
)

The following table presents a reconciliation of the beginning and ending balances for our Level 3 financial instruments measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2014. There were no transfers between the fair value hierarchy levels during the three months ended March 31, 2014 or 2013.
Balance, December 31, 2013
$
(19
)
Net unrealized loss included in other income (expense)
(1
)
Balance, March 31, 2014
$
(20
)