Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis at September 30, 2012, December 31, 2011 and September 30, 2011:



(in thousands)	September 30, 2012
Assets (liabilities)	Level 1		Level 2			Level 3		Total
Cash equivalents	$	39,904	$	—		$	—	$	39,904
Restricted cash	160		—			—		160
Commodity derivatives, net	15,619		113,513			—		129,132
Convertible preferred securities (b)	—		—			17,350		17,350
Other assets and liabilities (a)	7,515		(1,966		)	—		5,549
Total	$	63,198	$	111,547		$	17,350	$	192,095



(in thousands)	December 31, 2011
Assets (liabilities)	Level 1		Level 2		Level 3			Total
Cash equivalents	$	183	$	—	$	—		$	183
Restricted cash	18,651		—		—			18,651
Commodity derivatives, net	43,503		22,876		2,467			68,846
Convertible preferred securities (b)	—		—		20,360			20,360
Other assets and liabilities (a)	6,224		—		(2,178		)	4,046
Total	$	68,561	$	22,876	$	20,649		$	112,086



(in thousands)	September 30, 2011
Assets (liabilities)	Level 1		Level 2			Level 3			Total
Cash equivalents	$	21,481	$	—		$	—		$	21,481
Restricted cash	11,920		—			—			11,920
Commodity derivatives, net	84,365		(2,988		)	3,283			84,660
Convertible preferred securities (b)	—		—			15,790			15,790
Other assets and liabilities (a)	5,748		—			(2,238		)	3,510
Total	$	123,514	$	(2,988	)	$	16,835		$	137,361


(a)	Included in other assets and liabilities is interest rate and foreign currency derivatives, swaptions and deferred compensation assets.


(b)	Recorded in “Other noncurrent assets” on the Company’s Condensed Consolidated Balance Sheets.

Beginning and ending balances for the Company's fair value measurements using Level 3 inputs

A reconciliation of beginning and ending balances for the Company’s fair value measurements using Level 3 inputs is as follows:



	2012									2011
(in thousands)	Interest rate derivatives and swaptions			Convertible preferred securities			Commodity derivatives, net			Interest rate derivatives and swaptions			Convertible preferred securities		Commodity derivatives, net
Asset (liability) at December 31,	$	(2,178	)	$	20,360		$	2,467		$	(2,156	)	$	15,790	$	12,406
Gains (losses) included in earnings:
New contracts	—			—			—			—			—		442
Change in market prices	—			—			—			(2		)	—		1,877
Settled contracts	—			—			—			—			—		(2,242		)
Unrealized gains (losses) included in other comprehensive income	—			—			—			149			—		—
New contracts entered into	—			—			—			507			—		—
Transfers to level 2	2,178			—			(2,467		)	—			—		—
Transfers from level 2	—			—			—			—			—		2,500
Asset (liability) at March 31,	$	—		$	20,360		$	—		$	(1,502	)	$	15,790	$	14,983
Gains (losses) included in earnings:
New contracts	—			—			—			—			—		(290		)
Change in market prices	—			—			—			(310		)	—		(5,179		)
Settled contracts	—			—			—			—			—		(929		)
Unrealized gains (losses) included in other comprehensive income	—			(3,010		)	—			(120		)	—		—
New contracts entered into	—			—			—			49			—		—
Transfers from level 2	—			—			—			—			—		209
Asset (liability) at June 30,	$	—		$	17,350		$	—		$	(1,883	)	$	15,790	$	8,794
Gains (losses) included in earnings:
New contracts	—			—			—			—			—		(43		)
Change in market prices	—			—			—			(234		)	—		(5,519		)
Settled contracts	—			—			—			—			—		(19		)
Unrealized gains (losses) included in other comprehensive income	—			—			—			(165		)	—		—
New contracts entered into	—			—			—			44			—		—
Transfers from level 2	—			—			—			—			—		70
Asset (liability) at September 30,	$	—		$	17,350		$	—		$	(2,238	)	$	15,790	$	3,283

Fair value of long-term debt estimated using quoted market prices or discounted future cash flows



(in thousands)	September 30, 2012		December 31, 2011
Fair value of long-term debt	$	358,112	$	279,001
Fair value in excess of carrying value	13,053		7,908