Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following table presents, by level within the fair value hierarchy, the Company’s assets and liabilities that are measured at fair value on a recurring basis. The carrying amounts reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the nature of the instrument and/or the short-term maturity of these instruments.

The fair value of the Company’s derivatives is based on third-party pricing models which utilize inputs that are readily available in the public market, such as natural gas and crude oil forward curves. These values are compared to the values given by counterparties for reasonableness. Since the Company’s derivative instruments do not include optionality and therefore generally have no unobservable inputs, they are classified as Level 2.

	Level 1		Level 2		Level 3		Total Fair Value
As of September 30, 2015: (in thousands)
Commodity derivative instruments	$	—	$	25,094	$	—	$	25,094
Total	$	—	$	25,094	$	—	$	25,094
	Level 1		Level 2		Level 3		Total Fair Value
As of December 31, 2014: (in thousands)
Commodity derivative instruments	$	—	$	19,034	$	—	$	19,034
Total	$	—	$	19,034	$	—	$	19,034