Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Hierarchy Table for Assets and Liabilities Measured at Fair Value

We use a market approach for our recurring fair value measurements and endeavor to use the best information available. The following tables present the fair value hierarchy for assets and liabilities measured at fair value, on a recurring basis (in thousands):

		Fair Value Measurements at March 31, 2024 using:
		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Carrying Value as of March 31, 2024
Trading securities held in the deferred compensation plan		$	65,100	$	—		$	—		$	65,100
Derivatives	–swaps		—		228,060			—			228,060
	–collars		—		146,378			—			146,378
	–three-way collars		—		21,635			—			21,635
	–basis swaps		—		(26,987	)		—			(26,987	)
	–swaptions		—		—			(2,220	)		(2,220	)

		Fair Value Measurements at December 31, 2023 using:
		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total Carrying Value as of December 31, 2023
Trading securities held in the deferred compensation plan		$	71,989	$	—	$	—		$	71,989
Derivatives	–swaps		—		247,580		—			247,580
	–collars		—		152,540		—			152,540
	–three-way collars		—		25,406		—			25,406
	–basis swaps		—		18,277		—			18,277
	–swaptions		—		—		(1,161	)		(1,161	)

Reconciliation of the Beginning and Ending Balances for Derivative Instruments Classified as Level 3 in the Fair Value Hierarchy

The following is a reconciliation of the beginning and ending balances for derivative instruments classified as Level 3 in the fair value hierarchy (in thousands):

	Three Months Ended March 31, 2024
Balance at December 31, 2023	$	(1,161	)
Total gains included in earnings	803
Additions		(1,862	)
Balance at March 31, 2024	$	(2,220	)

Carrying Amounts and Fair Values of Financial Instruments

The following presents the carrying amounts and the fair values of our financial instruments as of March 31, 2024 and December 31, 2023 (in thousands):

	March 31, 2024						December 31, 2023
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Commodity derivatives	$	378,080		$	378,080		$	442,971		$	442,971
Marketable securities (a)		65,100			65,100			71,989			71,989
(Liabilities):
Commodity derivatives		(11,214	)		(11,214	)		(329	)		(329	)
Bank credit facility (b)		—			—			—			—
4.875% senior notes due 2025 (b)		(669,017	)		(664,019	)		(688,388	)		(679,363	)
8.25% senior notes due 2029 (b)		(600,000	)		(624,066	)		(600,000	)		(624,816	)
4.75% senior notes due 2030 (b)		(500,000	)		(466,280	)		(500,000	)		(463,085	)
Deferred compensation plan (c)		(115,487	)		(115,487	)		(117,125	)		(117,125	)

(a)Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges.

(b)The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior notes is based on end of period market quotes which are Level 2 inputs.

(c)The fair value of our deferred compensation plan is updated to the closing price on the balance sheet date, which is a Level 1 input.