Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

The following tables set forth our recurring fair value measurements:



	June 30, 2012
	Level 2			Level 3			Total
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	46,177		$	8,951		$	55,128
Liabilities	(2,589		)	(821		)	(3,410		)
	$	43,588		$	8,130		$	51,718



	December 31, 2011
	Level 2			Level 3			Total
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	9,698		$	34,321		$	44,019
Liabilities	(9,518		)	(706		)	(10,224		)
	$	180		$	33,615		$	33,795

Reconciliations Of Level 3 Fair Value Measurements

The following tables are reconciliations of our level 3 fair value measurements:



	Net Derivatives
	For the three months ended June 30, 2012					For the six months ended June 30, 2012
	Interest Rate Swaps		Commodity Swaps			Interest Rate Swaps		Commodity Swaps
	(In thousands)
Beginning of period	$	—	$	13,912		$	—	$	33,615
Total gains or losses (realized and unrealized):
Included in earnings ⁽¹⁾	—		5,456			—		16,874
Included in other comprehensive income (loss)	—		(5,687		)	—		(3,576		)
Settlements	—		(5,551		)	—		(16,859		)
Transfers out of Level 3 into Level 2	—		—			—		(21,924		)
End of period	$	—	$	8,130		$	—	$	8,130
Total gains for the period included in earnings attributable to the change in unrealized gain relating to assets still held at end of period	$	—	$	(95	)	$	—	$	15


(1)	Commodity swaps and collars are reported in the unaudited condensed consolidated statements of operations in revenues.



	Net Derivatives
	For the three months ended June 30, 2011						For the six months ended June 30, 2011
	Interest Rate Swaps			Commodity Swaps			Interest Rate Swaps			Commodity Swaps
	(In thousands)
Beginning of period	$	(1,361	)	$	9,368		$	(1,614	)	$	10,868
Total gains or losses (realized and unrealized):
Included in earnings ⁽¹⁾	(1,431		)	3,572			(1,734		)	7,877
Included in other comprehensive income (loss)	1,361			1,847			1,614			82
Settlements	1,431			(3,038		)	1,734			(7,078		)
Transfers out of Level 3 into Level 2	—			—			—			—
End of period	$	—		$	11,749		$	—		$	11,749
Total gains for the period included in earnings attributable to the change in unrealized gain relating to assets still held at end of period	$	—		$	534		$	—		$	799


(1)	Interest rate swaps and commodity swaps are reported in the unaudited condensed consolidated statements of operations in interest, net and revenues, respectively.

Schedule Of Quantitative Information About Unobservable Inputs

The following table provides quantitative information about our Level 3 unobservable inputs at June 30, 2012:



	Fair Value		Valuation Technique	Unobservable Input	Range
	(In thousands)
Commodity contracts ⁽¹⁾	$	8,130	Discounted cash flow	Forward commodity price curve	$2.64-$3.22


(1)	The commodity contracts detailed in this category include non-exchange-traded natural gas swaps that are valued based on regional pricing other than NYMEX. The forward pricing range represents the low and high price expected to be received within the settlement period.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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