Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

The following tables set forth our recurring fair value measurements:



	September 30, 2013
	Level 2			Level 3			Gross Amounts			Effect of Netting			Net Amounts Presented
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	8,473		$	—		$	8,473		$	(2,826	)	$	5,647
Liabilities	(7,622		)	(2,622		)	(10,244		)	2,826			(7,418		)
	$	851		$	(2,622	)	$	(1,771	)	$	—		$	(1,771	)



	December 31, 2012
	Level 2			Level 3			Gross Amounts			Effect of Netting			Net Amounts Presented
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	18,555		$	—		$	18,555		$	(2,003	)	$	16,552
Liabilities	(3,918		)	(595		)	(4,513		)	2,003			(2,510		)
	$	14,637		$	(595	)	$	14,042		$	—		$	14,042

Reconciliations Of Level 3 Fair Value Measurements

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




	Commodity Collars
	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(In thousands)
Beginning of period	$	1,446		$	8,130		$	(595	)	$	33,615
Total gains or losses:
Included in earnings ⁽¹⁾	(3,949		)	2,241			(2,544		)	19,114
Included in other comprehensive income (loss)	(119		)	(4,194		)	(119		)	(7,770		)
Settlements	—			(4,574		)	636			(21,432		)
Transfers out of Level 3 into Level 2	—			—			—			(21,924		)
End of period	$	(2,622	)	$	1,603		$	(2,622	)	$	1,603
Total losses for the period included in earnings attributable to the change in unrealized loss relating to assets still held at end of period	$	(3,949	)	$	(2,333	)	$	(1,908	)	$	(2,318	)


(1)	Commodity collars are reported in the Unaudited Condensed Consolidated Statements of Income in oil and natural gas revenues (for cash flow hedges) and loss on derivatives not designated as hedges and hedge ineffectiveness, net, respectively.

Schedule Of Quantitative Information About Unobservable Inputs

The following table provides quantitative information about our Level 3 unobservable inputs at September 30, 2013:



Commodity ⁽¹⁾	Fair Value			Valuation Technique	Unobservable Input	Range
	(In thousands)
Oil collars	$	(2,503	)	Discounted cash flow	Forward commodity price curve	($7.79) - $6.86
Natural gas collar	$	(119	)	Discounted cash flow	Forward commodity price curve	($0.19) - $0.03


(1)	The commodity contracts detailed in this category include non-exchange-traded natural gas and crude oil collars that are valued based on NYMEX. The forward pricing range represents the low and high price expected to be paid or 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 (loss), 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, issues, 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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