Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Outstanding Trading Contracts

As of September 30, 2013, we had the following outstanding trading contracts which we accounted for as derivatives:

At September 30, 2013	Quantity in Gallons	Estimated Market Prices	Weighted Average Contract Prices
Forward Contracts
Sale	1,682,000	$0.9625 - $1.1338	$	1.0370
Purchase	1,682,000	$0.9038 - $1.3176	$	0.9861

Fair Values of Derivative Contracts Recorded in Condensed Consolidated Balance Sheet

Fair values of the derivative contracts recorded in the condensed consolidated balance sheet as of September 30, 2013 and December 31, 2012, are as follows:

	Asset Derivatives
		Fair Value
(in thousands)	Balance Sheet Location	September 30, 2013		December 31, 2012
Derivatives not designated as hedging instruments
Forward contracts	Mark-to-market energy assets	$	214	$	182
Call Option	Mark-to-market energy assets	102		$	—
Derivatives designated as fair value hedges
Call options (1)	Mark-to-market energy assets	—		28
Put Options(2)	Mark-to-market energy assets	63		—
Total asset derivatives		$	379	$	210

	Liability Derivatives
		Fair Value
(in thousands)	Balance Sheet Location	September 30, 2013		December 31, 2012
Derivatives not designated as hedging instruments
Forward contracts	Mark-to-market energy liabilities	$	124	$	331
Total liability derivatives		$	124	$	331

⁽¹⁾  We purchased call options for the propane price cap program in May 2012. The call options expired in March 2013.

⁽²⁾  As a fair value hedge with no ineffective portion, the unrealized gains and losses associated with these put options are recorded in cost of sales, offset by the corresponding change in the value of propane inventory (hedged item), which is also recorded in cost of sales. The amounts in cost of sales offset to zero and the unrealized gains and losses of this call option effectively changed the value of propane inventory.

Effects of Gains and Losses from Derivative Instruments on Condensed Consolidated Financial Statements

The effects of gains and losses from derivative instruments on the condensed consolidated financial statements are as follows:

		Amount of Gain (Loss) on Derivatives:
	Location of Gain	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in thousands)	(Loss) on Derivatives	2013			2012			2013			2012
Derivatives not designated as hedging instruments:
Unrealized gain (loss) on forward contracts	Revenue	$	86		86			239			(147		)
Call Option	Cost of sales	38			—			29			—
Derivatives designated as fair value hedges:
Put/Call Option	Cost of sales	—			—			(28		)	27
Put/Call Options	Inventory	(43		)	(2		)	(57		)	(17		)
Total		$	81		$	84		$	183		$	(137	)

Effects of Trading Activities on Condensed Consolidated Statements of Income

The effects of trading activities on the condensed consolidated statements of income are the following:

	Location in the	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	Statements of Income	2013		2012		2013		2012
Realized gain on forward contracts and options	Revenue	$	321	$	911	$	506	$	2,233
Unrealized gain (loss) on forward contracts	Revenue	86		86		239		(147		)
Total		$	407	$	997	$	745	$	2,086