Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

The following tables set forth our recurring fair value measurements:



	June 30, 2014
	Level 2			Level 3			Gross Amounts			Effect of Netting		Net Amounts Presented
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	—		$	—		$	—		$	—	$	—
Liabilities	(10,084		)	(6,081		)	(16,165		)	—		(16,165		)
	$	(10,084	)	$	(6,081	)	$	(16,165	)	$	—	$	(16,165	)



	December 31, 2013
	Level 2			Level 3			Gross Amounts			Effect of Netting			Net Amounts Presented
	(In thousands)
Financial assets (liabilities):
Commodity derivatives:
Assets	$	1,978		$	20		$	1,998		$	(1,483	)	$	515
Liabilities	(4,429		)	(2,615		)	(7,044		)	1,483			(5,561		)
	$	(2,451	)	$	(2,595	)	$	(5,046	)	$	—		$	(5,046	)

Reconciliations Of Level 3 Fair Value Measurements

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



	Commodity Collars
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(In thousands)
Beginning of period	$	(4,464	)	$	(2,536	)	$	(2,595	)	$	(595	)
Total gains or losses (realized and unrealized):
Included in earnings ⁽¹⁾	(4,401		)	3,346			(7,829		)	1,405
Included in other comprehensive income (loss)	—			—			—			—
Settlements	2,784			636			4,343			636
End of period	$	(6,081	)	$	1,446		$	(6,081	)	$	1,446
Total gains (losses) for the period included in earnings attributable to the change in unrealized gain relating to assets still held at end of period	$	(1,617	)	$	3,982		$	(3,486	)	$	2,041

_______________________


(1)	Commodity collars are reported in the Unaudited Condensed Consolidated Statements of Income in oil and natural gas revenues (for cash flow hedges) and gain (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 June 30, 2014:



Commodity ⁽¹⁾	Fair Value			Valuation Technique	Unobservable Input	Range
	(In thousands)
Oil collars	$	(5,674	)	Discounted cash flow	Forward commodity price curve	$0.06 - $10.27
Natural gas collar	$	(407	)	Discounted cash flow	Forward commodity price curve	$0.00 - $0.40

_______________________


(1)	The commodity contracts detailed in this category include non-exchange-traded crude oil and natural gas 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.

+ References+ Details