Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities [Abstract]

Notional Volume of Commodity Hedges

At March 31, 2015, the notional volumes of the Partnership’s commodity hedges were:

Commodity	Instrument	Unit	2015		2016		2017
Natural Gas	Swaps	MMBtu/d		125,439		68,205		23,082
Natural Gas	Basis Swaps	MMBtu/d		23,782		-		-
NGL	Swaps	Bbl/d		5,928		2,254		658
NGL	Options	Bbl/d		899		790		790
Condensate	Swaps	Bbl/d		1,991		1,082		500
Condensate	Options	Bbl/d		1,198		380		380

Fair Values of Derivative Instruments

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, 2015				Fair Value as of December 31, 2014
	Balance Sheet Location	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Derivatives designated as hedging instruments
Commodity contracts	Current	$	117.8	$	0.4	$	44.4	$	-
	Long-term		51.2		1.8		15.8		-
Total derivatives designated as hedging instruments		$	169.0	$	2.2	$	60.2	$	-
Derivatives not designated as hedging instruments
Commodity contracts	Current	$	8.2	$	0.2	$	-	$	5.2
Total derivatives not designated as hedging instruments		$	8.2	$	0.2	$	-	$	5.2
Total current position		$	126.0	$	0.6	$	44.4	$	5.2
Total long-term position			51.2		1.8		15.8		-
Total derivatives		$	177.2	$	2.4	$	60.2	$	5.2

Pro Forma Impact of Derivatives Net In Consolidated Balance Sheet

The pro forma impact of reporting derivatives in the Consolidated Balance Sheets on a net basis is as follows:

	Gross Presentation				Pro Forma Net Presentation
March 31, 2015	Asset Position		Liability Position		Asset Position		Liability Position
Current position
Counterparties with offsetting position	$	54.0	$	0.6	$	53.4	$	-
Counterparties without offsetting position - assets		72.0		-		72.0		-
Counterparties without offsetting position - liabilities		-		-		-		-
		126.0		0.6		125.4		-
Long-term position
Counterparties with offsetting position		19.4		1.8		17.6		-
Counterparties without offsetting position - assets		31.8		-		31.8		-
Counterparties without offsetting position - liabilities		-		-		-		-
		51.2		1.8		49.4		-
Total derivatives
Counterparties with offsetting position		73.4		2.4		71.0		-
Counterparties without offsetting position - assets		103.7		-		103.8		-
Counterparties without offsetting position - liabilities		-		-		-		-
	$	177.2	$	2.4	$	174.8	$	-
December 31, 2014
Current position
Counterparties with offsetting position	$	35.5	$	4.4	$	31.1	$	-
Counterparties without offsetting position - assets		8.9		-		8.9		-
Counterparties without offsetting position - liabilities		-		0.8		-		0.8
		44.4		5.2		40.0		0.8
Long-term position
Counterparties with offsetting position		-		-		-		-
Counterparties without offsetting position - assets		15.8		-		15.8		-
Counterparties without offsetting position - liabilities		-		-		-		-
		15.8		-		15.8		-
Total derivatives
Counterparties with offsetting position		35.5		4.4		31.1		-
Counterparties without offsetting position - assets		24.7		-		24.7		-
Counterparties without offsetting position - liabilities		-		0.8		-		0.8
	$	60.2	$	5.2	$	55.8	$	0.8

Amounts Recorded in OCI and Amounts Reclassified from OCI to Revenue and Expense

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 (Effective Portion)
Derivatives in Cash Flow	Three Months Ended March 31,
Hedging Relationships	2015		2014
Commodity contracts	$	25.2	$	(11.8	)
	Gain (Loss) Reclassified from OCI into Income (Effective Portion)
	Three Months Ended March 31,
Location of Gain (Loss)		2015		2014
Interest expense, net	$	-	$	(1.3	)
Revenues		8.1		(6.3	)
	$	8.1	$	(7.6	)

Gain (Loss) Recognized in Income on Derivatives

		Gain (Loss) Recognized in Income on Derivatives
Derivatives Not Designated as Hedging Instruments	Location of Gain Recognized in Income on Derivatives	March 31, 2015			March 31, 2014
Commodity contracts	Revenue		$	7.2		$	(0.2	)

Deferred Gains (Losses) Included in Accumulated OCI

The following table shows the deferred gains (losses) included in accumulated OCI, which will be reclassified into earnings before income taxes through the end of 2017 based on year-end valuations.

	March 31, 2015			December 31, 2014
Commodity hedges, before tax (1)		$	77.4		$	60.3

(1) Includes deferred net gains of $53.3 million as of March 31, 2015 related to contracts that will be settled and reclassified to revenue over the next 12 months.