Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021 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, 2021
Trading securities held in the deferred compensation plans	$	67,433	$	—		$	—			$	67,433

Commodity price derivatives –swaps		—		(20,164	)		—				(20,164	)
–collars		—		1,029			(4,618	)			(3,589	)
–three-way collars		—		(14,030	)		—				(14,030	)
–basis swaps		—		9,989			—				9,989
–swaptions		—		—			(7,146	)			(7,146	)
Derivatives–freight swaps		—		125			—				125
Divestiture contingent consideration		—		19,890			—				19,890

	Fair Value Measurements at December 31, 2020 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, 2020
Trading securities held in the deferred compensation plans	$	63,942	$	—		$	—		$	63,942
Commodity price derivatives –swaps		—		6,642			—			6,642
–calls		—		—			(546	)		(546	)
–collars		—		7,016			(3,487	)		3,529
–three-way collars		—		(17,818	)		—			(17,818	)
–basis swaps		—		4,491			—			4,491
–swaptions		—		—			(9,803	)		(9,803	)
Derivatives–freight swaps		—		1,104			—			1,104
Divesture contingent consideration		—		15,960			—			15,960

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

For our swaptions, we used a weighted average implied volatility of 22% for natural gas and 29% for crude oil. We also utilized a range of implied volatilities from 50% to 86% for our propane collars with a weighted average implied volatility of 65%. 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 March 31, 2021
Balance at December 31, 2020	$	(13,836	)
Total losses:
Included in earnings		(1,227	)
Settlements, net		3,299
Transfers in and/or out of Level 3		—
Balance at March 31, 2021	$	(11,764	)

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, 2021 and December 31, 2020 (in thousands):

	March 31, 2021						December 31, 2020
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Commodity swaps, collars and basis swaps	$	9,463		$	9,463		$	24,052		$	24,052
Divestiture contingent consideration		19,890			19,890			15,960			15,960
Marketable securities ^(a)		67,433			67,433			63,942			63,942
(Liabilities):
Commodity swaps, collars and basis swaps		(44,278	)		(44,278	)		(36,453	)		(36,453	)
Bank credit facility ^(b)		(124,000	)		(124,000	)		(702,000	)		(702,000	)
5.75% senior notes due 2021 ^(b)		(25,496	)		(25,496	)		(25,496	)		(25,474	)
5.00% senior notes due 2022 ^(b)		(169,589	)		(172,513	)		(169,589	)		(170,128	)
5.875% senior notes due 2022 ^(b)		(48,528	)		(49,117	)		(48,528	)		(48,471	)
Other senior notes due 2022 ^(b)		(490	)		(490	)		(490	)		(490	)
5.00% senior notes due 2023 ^(b)		(532,335	)		(541,800	)		(532,335	)		(521,699	)
4.875% senior notes due 2025 ^(b)		(750,000	)		(742,485	)		(750,000	)		(707,918	)
9.25% senior notes due 2026 ^(b)		(850,000	)		(922,837	)		(850,000	)		(888,208	)
8.25% senior notes due 2029 ^(b)		(600,000	)		(642,132	)		—			—
5.75% senior subordinated notes due 2021 ^(b)		(19,896	)		(19,896	)		(19,896	)		(19,589	)
5.00% senior subordinated notes due 2022 ^(b)		(9,730	)		(9,730	)		(9,730	)		(9,247	)
5.00% senior subordinated notes due 2023 ^(b)		(7,712	)		(7,712	)		(7,712	)		(6,604	)
Deferred compensation plan ^(c)		(121,121	)		(121,121	)		(96,563	)		(96,563	)

^(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 to the closing price on the balance sheet date which is a Level 1 input.