Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

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 table for assets and liabilities measured at fair value, on a recurring basis (in thousands):

	Fair Value Measurements at June 30, 2018 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 June 30, 2018
Trading securities held in the deferred compensation plans	$	68,876	$	—		$	—		$	68,876
Derivatives –swaps		—		(103,092	)		—			(103,092	)
–collars				12			—			12
–calls		—		(701	)		—			(701	)
–basis swaps		—		(4,285	)		264			(4,021	)
–freight swaps		—		166			—			166
–swaptions		—		—			(485	)		(485	)

	Fair Value Measurements at December 31, 2017 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, 2017
Trading securities held in the deferred compensation plans	$	67,117	$	—		$	—	$	67,117
Derivatives –swaps		—		3,910			—		3,910
–collars		—		3,039			85		3,124
–basis swaps		—		(9,025	)		39		(8,986	)
–freight swaps		—		276			—		276
–swaptions		—		—			6,534		6,534

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):

	As of June 30, 2018
Balance at December 31, 2017	$	6,658
Total losses:
Included in earnings		(2,956	)
Settlements		(1,781	)
Transfer out of Level 3 ⁽¹⁾		(2,142	)
Balance at June 30, 2018	$	(221	)

⁽¹⁾ During first six months 2018, we transferred $2.1 million of swaption contracts out of Level 3 due to the exercise of these swaptions by our counterparties.

Value of Assets Measured at Fair Value on Nonrecurring Basis

The following presents the value of these assets measured at fair value on a non-recurring basis at the time impairment was recorded (in thousands):

Three Months Ended

June 30, 2018

Six Months Ended

June 30, 2018

Fair Value

Impairment

Fair Value

Impairment

Natural gas and oil properties

—

15,302

32,516

22,614

Carrying Amounts and Fair Values of Financial Instruments

The following presents the carrying amounts and the fair values of our financial instruments as of June 30, 2018 and December 31, 2017 (in thousands):

	June 30, 2018						December 31, 2017
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Commodity swaps, options and basis swaps	$	3,295		$	3,295		$	58,880		$	58,880
Marketable securities ^(a)		68,876			68,876			67,117			67,117
(Liabilities):
Commodity swaps, options and basis swaps		(111,416	)		(111,416	)		(54,022	)		(54,022	)
Bank credit facility ^(b)		(1,314,000	)		(1,314,000	)		(1,211,000	)		(1,211,000	)
5.75% senior notes due 2021 ^(b)		(475,952	)		(487,741	)		(475,952	)		(493,872	)
5.00% senior notes due 2022 ^(b)		(580,032	)		(575,427	)		(580,032	)		(578,727	)
5.875% senior notes due 2022 ^(b)		(329,244	)		(334,551	)		(329,244	)		(339,200	)
Other senior notes due 2022 ^(b)		(590	)		(582	)		(590	)		(591	)
5.00% senior notes due 2023 ^(b)		(741,531	)		(716,808	)		(741,531	)		(735,614	)
4.875% senior notes due 2025 ^(b)		(750,000	)		(704,940	)		(750,000	)		(733,755	)
5.75% senior subordinated notes due 2021 ^(b)		(22,214	)		(22,699	)		(22,214	)		(22,192	)
5.00% senior subordinated notes due 2022 ^(b)		(19,054	)		(18,825	)		(19,054	)		(18,741	)
5.00% senior subordinated notes due 2023 ^(b)		(7,712	)		(7,484	)		(7,712	)		(7,614	)
Deferred compensation plan ^(c)		(116,629	)		(116,629	)		(114,414	)		(114,414	)

^(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 and our senior subordinated 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 at the closing price on the balance sheet date which is a Level 1 input.