Fair Value Measurements

3 Months Ended

Jun. 30, 2013

Fair Value Measurements

Fair Value Measurements

5. Fair Value Measurements

The carrying amount of cash and cash equivalents, margin deposits, trade receivables, accrued receivables, trade payables, and accrued liabilities reported on the unaudited consolidated balance sheet approximate fair value. 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 based on valuations of similar debt at the balance sheet date and supported by observable market transactions when available. See Note 3 for disclosures regarding the fair value of debt.

Fair values have been determined as follows for Niska Partners financial assets and liabilities that were accounted for at fair value on a recurring basis:

June 30, 2013	Level 1		Level 2		Level 3		Total
Assets
Commodity derivatives	$	—	$	43,170	$	—	$	43,170
Currency derivatives	—		1,507		—		1,507
Total assets	—		44,677		—		44,677
Liabilities
Commodity derivatives	—		21,375		—		21,375
Currency derivatives	—		13		—		13
Total liabilities	—		21,388		—		21,388
Net	$	—	$	23,289	$	—	$	23,289

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
Total liabilities	—		24,579		—		24,579
Net	$	—	$	3,173	$	—	$	3,173

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 periods ended June 30, 2013 and March 31, 2013.