Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities [Abstract]

Notional volume of commodity hedges

At March 31, 2013, the notional volumes of the Partnership's commodity hedges for equity volumes were:

Commodity	Instrument	Unit	2013		2014		2015		2016
Natural Gas	Swaps	MMBtu/d		31,108		25,500		12,001		5,000
NGL	Swaps	Bbl/d		5,650		1,000		-		-
Condensate	Swaps	Bbl/d		1,962		1,450		-		-

Fair values of derivative instruments

The Partnership's derivative contracts are subject to netting arrangements that allow net cash settlement of offsetting asset and liability positions with the same counterparty. We record derivative assets and liabilities on our Consolidated Balance Sheets on a gross basis, without considering the effect of master netting arrangements. The following schedules reflect the fair values of our derivative instruments and their location in our Consolidated Balance Sheets as well as pro forma reporting assuming that we reported derivatives subject to master netting agreements on a net basis: 

		Fair Value as of March 31, 2013						Fair Value as of December 31, 2012
Balance Sheet		Derivative			Derivative			Derivative			Derivative
Location		Assets			Liabilities			Assets			Liabilities
Derivatives designated as hedging instruments
Commodity contracts	Current		$	18.1		$	8.1		$	29.2		$	7.2
Long-term				3.2			5.0			5.1			4.8
Total derivatives designated as hedging instruments			$	21.3		$	13.1		$	34.3		$	12.0
Derivatives not designated as hedging instruments
Commodity contracts	Current		$	0.1		$	0.1		$	0.1		$	0.2
Long-term				-			-			-			-
Total derivatives not designated as hedging instruments			$	0.1		$	0.1		$	0.1		$	0.2
Total current position			$	18.2		$	8.2		$	29.3		$	7.4
Total long-term position				3.2			5.0			5.1			4.8
Total derivatives			$	21.4		$	13.2		$	34.4		$	12.2

Pro forma impact of derivatives net in Consolidated Balance Sheet

The pro forma impact of reporting derivatives in the Consolidated Balance Sheet is determined as follows:
	Gross Presentation						Pro forma Net Presentation
	Asset			Liability			Asset			Liability
March 31, 2013	Position			Position			Position			Position
Current position
Counterparties with offsetting position		$	16.3		$	7.1		$	9.2		$	-
Counterparties without offsetting position - assets			1.9			-			1.9			-
Counterparties without offsetting position - liabilities			-			1.1			-			1.1
			18.2			8.2			11.1			1.1
Long-term position
Counterparties with offsetting position			3.2			0.9			2.3			-
Counterparties without offsetting position - assets			-			-			-			-
Counterparties without offsetting position - liabilities			-			4.1			-			4.1
			3.2			5.0			2.3			4.1
Total derivatives
Counterparties with offsetting position			19.5			8.0			11.5			-
Counterparties without offsetting position - assets			1.9			-			1.9			-
Counterparties without offsetting position - liabilities			-			5.2			-			5.2
		$	21.4		$	13.2		$	13.4		$	5.2
December 31, 2012
Current position
Counterparties with offsetting position		$	23.8		$	7.4		$	16.4		$	-
Counterparties without offsetting position - assets			5.5			-			5.5			-
Counterparties without offsetting position - liabilities			-			-			-			-
			29.3			7.4			21.9			-
Long-term position
Counterparties with offsetting position			4.4			2.8			1.6			-
Counterparties without offsetting position - assets			0.7			-			0.7			-
Counterparties without offsetting position - liabilities			-			2.0			-			2.0
			5.1			4.8			2.3			2.0
Total derivatives
Counterparties with offsetting position			28.2			10.2			18.0			-
Counterparties without offsetting position - assets			6.2			-			6.2			-
Counterparties without offsetting position - liabilities			-			2.0			-			2.0
		$	34.4		$	12.2		$	24.2		$	2.0

Cash flow hedges included in accumulated other comprehensive income (loss)

The following tables reflect amounts recorded in other comprehensive income ("OCI") and amounts reclassified from OCI to revenue and expense for the periods indicated:

	Gain (Loss) Recognized in OCI on Derivatives
Derivatives in	(Effective Portion)
Cash Flow Hedging	Three Months Ended March 31,
Relationships	2013			2012
Commodity contracts		(7.6	)		15.5
	$	(7.6	)	$	15.5
	Gain (Loss) Reclassified from OCI into Income
	(Effective Portion)
	Three Months Ended March 31,
Location of Gain (Loss)		2013			2012
Interest expense, net	$	(1.7	)	$	(2.3	)
Revenues		6.6			2.5
	$	4.9		$	0.2

Schedule of gain (loss) on financial instruments

The following table shows the deferred gains (losses) included in accumulated OCI that will be reclassified into earnings through the end of 2016:

	March 31, 2013			December 31, 2012
Commodity hedges, before tax	$	1.1		$	3.2
Commodity hedges, after tax		0.6			1.9
Interest rate swaps, before tax		(1.0	)		(1.2	)
Interest rate swaps, after tax		(0.6	)		(0.7	)