Fair Value Measurements and Disclosures (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Our fixed-price swaps, basis swaps and physical purchases are included in Level 2 and our collars and physical sales are included in Level 3. The following table presents, for each applicable level within the fair value hierarchy, our derivative assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis:



	March 31, 2016						December 31, 2015
	Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(in thousands)
Assets:
Commodity-based derivative contracts	$	144,968	$	74,109	$	219,077	$	174,657	$	91,288	$	265,945
Basis protection derivative contracts	48		—		48		101		—		101
Total assets	145,016		74,109		219,125		174,758		91,288		266,046
Liabilities:
Commodity-based derivative contracts	8,733		1,004		9,737		738		—		738
Basis protection derivative contracts	1,402		—		1,402		1,552		—		1,552
Total liabilities	10,135		1,004		11,139		2,290		—		2,290
Net asset	$	134,881	$	73,105	$	207,986	$	172,468	$	91,288	$	263,756

Fair Value Assets and Liabilities Unobservable Input Reconciliation

The following table presents a reconciliation of our Level 3 assets measured at fair value:



	Three Months Ended March 31,
	2016			2015
	(in thousands)
Fair value, net asset beginning of period	$	91,288		$	62,356
Changes in fair value included in statement of operations line item:
Commodity price risk management gain (loss), net	6,165			15,189
Sales from natural gas marketing	(20		)	1
Settlements included in statement of operations line items:
Commodity price risk management gain (loss), net	(24,258		)	(2,725		)
Sales from natural gas marketing	(70		)	(4		)
Fair value, net asset end of period	$	73,105		$	74,817

Net change in fair value of unsettled derivatives included in statement of operations line item:
Commodity price risk management gain (loss), net	$	4,185		$	14,494
Sales from natural gas marketing	—			—
Total	$	4,185		$	14,494

Concentration of Risk

The following table presents the counterparties that expose us to credit risk as of March 31, 2016 with regard to our derivative assets:



Counterparty Name	Fair Value of Derivative Assets
	(in thousands)
Canadian Imperial Bank of Commerce (1)	$	63,503
JP Morgan Chase Bank, N.A (1)	56,261
Bank of Nova Scotia (1)	41,254
Wells Fargo Bank, N.A. (1)	29,029
NATIXIS (1)	24,159
Other lenders in our revolving credit facility	4,919
Total	$	219,125

__________

(1)Major lender in our revolving credit facility. See Note 7, Long-Term Debt.

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table presents information regarding our note receivable outstanding as of March 31, 2016:



	Amount
	(in thousands)
Note receivable:
Principal outstanding, December 31, 2015	$	43,069
Paid-in-kind interest	969
Principal outstanding, March 31, 2016	44,038
Allowance for uncollectible notes receivable	(44,038		)
Note receivable, net	$	—

- Definition

Tabular disclosure of all significant concentrations of risk, including credit risk and market risk, arising from all financial instruments (as defined), whether from an individual counterparty or groups of counterparties. The disclosure concerning concentrations of risk may consist of the following information: (1) for concentrations of credit risk disclosure may include: (a) information about the (shared) activity, region, or economic characteristic that identifies the concentration, (b) the maximum amount of loss due to credit risk that, based on the gross fair value of the financial instrument, the entity would incur if parties to the financial instruments that make up the concentration failed completely to perform according to the terms of the contracts and the collateral or other security, if any, for the amount due proved to be of no value to the entity, (c) the policy of requiring collateral or other security to support financial instruments subject to credit risk, information about the entity's access to that collateral or other security, and the nature and a brief description of the collateral or other security supporting those financial instruments, and (d) the policy of entering into master netting arrangements to mitigate the credit risk of financial instruments, information about the arrangements for which the entity is a party, and a brief description of the terms of those arrangements, including the extent to which they would reduce the entity's maximum amount of loss due to credit risk and (2) for disclosure of quantitative information about the market risks of financial instruments that is consistent with the way the company manages or adjusts those risks, disclosure may include: (a) more details about current positions and perhaps activity during the period, (b) the hypothetical effects on comprehensive income (or net assets), or annual income, of several possible changes in market prices, (c) a gap analysis of interest rate re-pricing or maturity dates, (d) the duration of the financial instruments, (e) the entity's value at risk from derivatives and from other positions at the end of the reporting period and the average value at risk during the year, or (f) other ways of reporting quantitative information as internally developed.

+ References + Details