Fair Value Measurements

12 Months Ended

Mar. 31, 2014

Fair Value Measurements

Fair Value Measurements

13. Fair Value Measurements

        The following table shows the fair values of the Company's risk management assets and liabilities:

As at March 31, 2014	Energy Contracts			Currency Contracts			Total
Short-term risk management assets	$	18,939		$	2,010		$	20,949
Long-term risk management assets		4,260			546			4,806
Short-term risk management liabilities		(18,945	)		(160	)		(19,105	)
Long-term risk management liabilities		(12,209	)		—			(12,209	)
	$	(7,955	)	$	2,396		$	(5,559	)

As at March 31, 2013	Energy Contracts			Currency Contracts			Total
Short-term risk management assets	$	20,383		$	776		$	21,159
Long-term risk management assets		6,593			—			6,593
Short-term risk management liabilities		(19,792	)		(213	)		(20,005	)
Long-term risk management liabilities		(4,477	)		(97	)		(4,574	)
	$	2,707		$	466		$	3,173

        Information about the Company's risk management assets and liabilities that had netting or rights of offset arrangements are as follows:

As at March 31, 2014	Gross Amounts Recognized			Gross Amounts Offset in the Balance Sheet			Net Amounts Presented in the Balance Sheet			Margin Deposits not Offset in the Balance Sheet			Net Amounts
Assets
Commodity derivatives	$	113,175		$	(89,976	)	$	23,199		$	(15,101	)	$	8,098
Currency derivatives		2,851			(295	)		2,556			(2,556	)		—
Total assets		116,026			(90,271	)		25,755			(17,657	)		8,098
Liabilities
Commodity derivatives		121,130			(89,976	)		31,154			(21,705	)		9,449
Currency derivatives		455			(295	)		160			(160	)		—
Total liabilities		121,585			(90,271	)		31,314			(21,865	)		9,449
Net	$	(5,559	)	$	—		$	(5,559	)	$	4,208		$	(1,351	)

As at March 31, 2013	Gross Amounts Recognized		Gross Amounts Offset in the Balance Sheet			Net Amounts Presented in the Balance Sheet		Margin Deposits not Offset in the Balance Sheet			Net Amounts
Assets
Commodity derivatives	$	88,682	$	(61,706	)	$	26,976	$	(15,030	)	$	11,946
Currency derivatives		881		(105	)		776		(776	)		—
Total assets		89,563		(61,811	)		27,752		(15,806	)		11,946
Liabilities
Commodity derivatives		85,975		(61,706	)		24,269		(16,861	)		7,408
Currency derivatives		415		(105	)		310		(164	)		146
Total liabilities		86,390		(61,811	)		24,579		(17,025	)		7,554
Net	$	3,173	$	—		$	3,173	$	1,219		$	4,392

        The following amounts represent the Company's expected realization into earnings for derivative instruments, based upon the fair value of these derivatives as of March 31, 2014:

Fiscal year ending March 31,	Energy Contracts			Currency Contracts		Total
2015	$	(6	)	$	1,850	$	1,844
2016 and beyond		(7,949	)		546		(7,403	)
	$	(7,955	)	$	2,396	$	(5,559	)

        Net realized and unrealized optimization gains and losses from the settlement of risk management contracts are summarized as follows:

	Year ended March 31,
	2014			2013			2012			Classification
Energy contracts
Realized	$	(78,778	)	$	41,304		$	59,264		Optimization, net
Unrealized		(10,662	)		(90,641	)		77,132		Optimization, net
Currency contracts
Realized		3,177			1,377			(6,064	)	Optimization, net
Unrealized		1,930			790			6,027		Optimization, net
	$	(84,333	)	$	(47,170	)	$	136,359

        The carrying amount of cash and cash equivalents, margin deposits, trade receivables, accrued receivables, trade payables and accrued liabilities reported on the consolidated balance sheet approximate fair value.

        Fair values have been determined as follows for the Company's financial assets and liabilities that were accounted for or disclosed at fair value on a recurring basis as of March 31, 2014 and 2013:

As at March 31, 2014	Level 1		Level 2		Level 3		Total
Assets
Commodity derivatives	$	—	$	23,199	$	—	$	23,199
Currency derivatives		—		2,556		—		2,556
Total assets	$	—	$	25,755	$	—	$	25,755
Liabilities
Commodity derivatives	$	—	$	31,154	$	—	$	31,154
Currency derivatives		—		160		—		160
Long-term debt		—		570,700		—		570,700
Total liabilities	$	—	$	602,014	$	—	$	602,014

As at March 31, 2013	Level 1		Level 2		Level 3		Total
Assets
Commodity derivatives	$	—	$	26,976	$	—	$	26,976
Currency derivatives		—		776		—		776
Total assets	$	—	$	27,752	$	—	$	27,752
Liabilities
Commodity derivatives	$	—	$	24,269	$	—	$	24,269
Currency derivatives		—		310		—		310
Long-term debt		—		669,500		—		669,500
Total liabilities	$	—	$	694,079	$	—	$	694,079

        The Company's financial assets and liabilities recorded at fair value on a recurring basis have been categorized as Level 2. The determination of the fair value of assets and liabilities for Level 2 valuations is generally based on a market approach. The key inputs used in Niska Partners' valuation models include transaction-specific details such as notional volumes, contract prices, and contract terms as well as forward market prices and basis differentials for natural gas obtained from third-party service providers (typically the New York Mercantile Exchange, or NYMEX). There were no changes in Niska Partners' approach to determining fair value and there were no transfers out of Level 2 during the three-year period ended March 31, 2014.

        The fair value of debt is the estimated amount the Company would have to pay to transfer its debt, including any premium or discount attributable to the difference between the stated interest rate and market rate of interest at the balance sheet date. Fair values are supported by observable market transactions when available.

        In accordance with authoritative guidance, non-financial assets and liabilities could be remeasured at fair value on a non-recurring basis. As of March 31, 2014 and 2013, there were no non-financial assets and liabilities recorded at fair value.