12. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

Our net income and cash flows are subject to volatility stemming from changes in interest rates on our variable rate debt obligations and fluctuations in commodity prices of natural gas, NGLs, condensate, crude oil and fractionation margins. Fractionation margins represent the relative difference between the price we receive from NGL and condensate sales and the corresponding commodity costs of natural gas and natural gas liquids we purchase for processing. Our interest rate risk exposure results from changes in interest rates on our variable rate debt and exists at the corporate level where our variable rate debt obligations are issued. Our exposure to commodity price risk exists within each of our segments. We use derivative financial instruments, such as futures, forwards, swaps, options and other financial instruments with similar characteristics, to manage the risks associated with market fluctuations in interest rates and commodity prices, as well as to reduce volatility in our cash flows. Based on our risk management policies, all of our derivative financial instruments, including those that do not qualify for hedge accounting treatment, are employed in connection with an underlying asset, liability or forecasted transaction and are not entered into with the objective of speculating on interest rates or commodity prices. We have hedged a portion of our exposure to the variability in future cash flows associated with the risks discussed above in future periods in accordance with our risk management policies. Our derivative instruments that are designated for hedge accounting under authoritative guidance are classified as cash flow hedges.

Derivative Positions

Our derivative financial instruments are included at their fair values in the consolidated statements of financial position as follows:


	June 30, 2015			December 31, 2014
	(in millions)
Other current assets	$	126.8		$	185.5
Other assets, net		54.0			93.3
Accounts payable and other⁽¹⁾		(305.1	)		(315.4	)
Other long-term liabilities		(112.2	)		(124.6	)
Due from general partner and affiliates		—			0.3
	$	(236.5	)	$	(160.9	)

(1)

Includes $11.5 million and $28.4 million held of cash collateral at June 30, 2015 and December 31, 2014, respectively.

The changes in the assets and liabilities associated with our derivatives are primarily attributable to the effects of new derivative transactions we have entered at prevailing market prices, settlement of maturing derivatives and the change in forward market prices of our remaining hedges. Our portfolio of derivative financial instruments is largely comprised of natural gas, NGL and crude oil sales and purchase contracts.

In September 2014, we amended the maturity date on certain interest rate hedges of future debt issuances that were originally set to mature in 2014 and 2016 to better reflect the expected timing of future debt issuances. The ineffective portion of the hedges fair value in relation to the hedged future debt issuances is recognized in income at the amendment date and each quarter end. For the three and six months ended June 30, 2015, we recognized in interest expense unrealized gains for hedge ineffectiveness of approximately $3.7 million and $29.8 million, respectively, associated with interest rate hedges that were originally set to mature in 2014 and 2016.

During the first quarter of 2014, we determined that a portion of forecasted short term debt transactions were not expected to occur, due to changing funding requirements. Since we will require less short-term debt than previously forecasted, we terminated several of our existing interest rate hedges used to lock-in interest rates on our short-term debt issuances as these hedges no longer met the cash flow hedging requirements. These terminations resulted in realized losses of $0.8 million for the six months ended June 30, 2014. We had no similar terminations of our cash flow hedges for the six months ended June 30, 2015.

The table below summarizes our derivative balances by counterparty credit quality (negative amounts represent our net obligations to pay the counterparty).


	June 30, 2015			December 31, 2014
	(in millions)
Counterparty Credit Quality⁽¹⁾
AAA	$	0.1		$	0.1
AA⁽²⁾		(68.5	)		(49.8	)
A		(84.5	)		(129.1	)
Lower than A		(83.6	)		17.9
	$	(236.5	)	$	(160.9	)

(1)

As determined by nationally-recognized statistical ratings organizations.

(2)

Includes $11.5 million and $28.4 million held of cash collateral at June 30, 2015 and December 31, 2014, respectively.

As the net value of our derivative financial instruments has decreased in response to changes in forward commodity prices and interest rates, our outstanding financial exposure to third parties has also decreased. When credit thresholds are met pursuant to the terms of our International Swaps and Derivatives Association, Inc., or ISDA®, financial contracts, we have the right to require collateral from our counterparties. We include any cash collateral received or posted in the balances listed above. At June 30, 2015 and December 31, 2014, we held $11.5 million and $28.4 million of cash collateral on our asset exposures, respectively. Cash collateral is classified as “Restricted cash” in our consolidated statements of financial position. When we are in a position of posting collateral to cover our counterparties' exposure to our non-performance, the collateral is provided through letters of credit, which are not reflected above.

We have provided letters of credit totaling $316.6 million and $329.6 million relating to our liability exposures pursuant to the margin thresholds in effect at June 30, 2015 and December 31, 2014, respectively, under our ISDA® agreements. The ISDA® agreements and associated credit support, which govern our financial derivative transactions, contain no credit rating downgrade triggers that would accelerate the maturity dates of our outstanding transactions. A change in ratings is not an event of default under these instruments, and the maintenance of a specific minimum credit rating is not a condition to transacting under the ISDA® agreements. In the event of a credit downgrade, additional collateral may be required to be posted under the agreement if we are in a liability position to our counterparty, but the agreement will not automatically terminate and require immediate settlement of all future amounts due.

The ISDA® agreements, in combination with our master netting agreements, and credit arrangements governing our interest rate and commodity swaps require that collateral be posted per tiered contractual thresholds based on the credit rating of each counterparty. We generally provide letters of credit to satisfy such collateral requirements under our ISDA® agreements. These agreements will require additional collateral postings of up to 100% on net liability positions in the event of a credit downgrade below investment grade. Automatic termination clauses which exist are related only to non-performance activities, such as the refusal to post collateral when contractually required to do so. When we are holding an asset position, our counterparties are likewise required to post collateral on their liability (our asset) exposures, also determined by tiered contractual collateral thresholds. Counterparty collateral may consist of cash or letters of credit, both of which must be fulfilled with immediately available funds.

In the event that our credit ratings were to decline to the lowest level of investment grade, as determined by Standard & Poor's and Moody's, we would be required to provide additional amounts under our existing letters of credit to meet the requirements of our ISDA® agreements. For example, if our credit ratings had been at the lowest level of investment grade at June 30, 2015, we would have been required to provide additional letters of credit in the amount of $7.1 million.

At June 30, 2015 and December 31, 2014, we had credit concentrations in the following industry sectors, as presented below:


	June 30, 2015			December 31, 2014
	(in millions)
United States financial institutions and investment banking entities⁽¹⁾	$	(186.9	)	$	(147.1	)
Non-United States financial institutions		(77.3	)		(54.2	)
Other		27.7			40.4
	$	(236.5	)	$	(160.9	)

(1)

Includes $11.5 million and $28.4 million held of cash collateral at June 30, 2015 and December 31, 2014, respectively.

Gross derivative balances are presented below before the effects of collateral received or posted and without the effects of master netting arrangements. Both our assets and liabilities are adjusted for non-performance risk, which is statistically derived. This credit valuation adjustment model considers existing derivative asset and liability balances in conjunction with contractual netting and collateral arrangements, current market data such as credit default swap rates and bond spreads and probability of default assumptions to quantify an adjustment to fair value. For credit modeling purposes, collateral received is included in the calculation of our assets, while any collateral posted is excluded from the calculation of the credit adjustment. Our credit exposure for these over-the-counter, or OTC, derivatives is directly with our counterparty and continues until the maturity or termination of the contracts.

Effect of Derivative Instruments on the Consolidated Statements of Financial Position

		Asset Derivatives				Liability Derivatives
		Fair Value at				Fair Value at
	Financial Position	June 30,		December 31,		June 30,			December 31,
	Location	2015		2014		2015			2014
		(in millions)
Derivatives designated as hedging instruments:⁽¹⁾
Interest rate contracts	Other current assets	$	—	$	—	$	—		$	—
Interest rate contracts	Other assets		4.3		—		—			—
Interest rate contracts	Accounts payable and other		—		—		(261.2	)		(241.0	)
Interest rate contracts	Other long-term liabilities		—		—		(95.8	)		(102.0	)
Commodity contracts	Other current assets		12.9		26.1		—			—
Commodity contracts	Other assets		—		2.1		—			—
			17.2		28.2		(357.0	)		(343.0	)
Derivatives not designated as hedging instruments:
Commodity contracts	Other current assets		113.9		159.4		—			—
Commodity contracts	Other assets		49.7		91.2		—			—
Commodity contracts	Accounts payable and other⁽²⁾		—		—		(32.4	)		(46.0	)
Commodity contracts	Other long-term liabilities		—		—		(16.4	)		(22.6	)
Commodity contracts	Due from general partner and affiliates		—		0.3		—			—
			163.6		250.9		(48.8	)		(68.6	)
Total derivative instruments		$	180.8	$	279.1	$	(405.8	)	$	(411.6	)

⁽¹⁾	Includes items currently designated as hedging instruments. Excludes the portion of de-designated hedges which may have a component remaining in AOCI.
⁽²⁾	Liability derivatives exclude $11.5 million and $28.4 million held of cash collateral at June 30, 2015 and December 31, 2014, respectively.

Accumulated Other Comprehensive Income

We record the change in fair value of our highly effective cash flow hedges in AOCI until the derivative financial instruments are settled, at which time they are reclassified to earnings. Also included in AOCI, as of June 30, 2015 and December 31, 2014, are unrecognized losses of approximately $25.4 million and $28.4 million, respectively, associated with derivative financial instruments that qualified for and were classified as cash flow hedges of forecasted transactions that were subsequently de-designated, settled, or terminated. These losses are reclassified to earnings over the periods during which the originally hedged forecasted transactions affect earnings.

During the six months ended June 30, 2015 and 2014, unrealized commodity hedge gains of $0.6 million and losses of $0.2 million, respectively, were de-designated as a result of the hedges no longer meeting hedge accounting criteria. We estimate that approximately $252.9 million, representing unrealized net losses from our cash flow hedging activities based on pricing and positions at June 30, 2015, will be reclassified from AOCI to earnings during the next 12 months.

Effect of Derivative Instruments on the Consolidated Statements of Income and Accumulated Other Comprehensive Income

									Amount of Gain
									(Loss) Recognized in
								Location of Gain	Earnings on
								(Loss) Recognized in	Derivative
								Earnings on Derivative	(Ineffective Portion
	Amount of Gain			Location of Gain (Loss)	Amount of Gain (Loss)			(Ineffective Portion	and Amount
Derivatives in Cash	(Loss) Recognized in			Reclassified from	Reclassified from			and Amount	Excluded from
Flow Hedging	AOCI on Derivative			AOCI to Earnings	AOCI to Earnings			Excluded from	Effectiveness
Relationships	(Effective Portion)			(Effective Portion)	(Effective Portion)			Effectiveness Testing)⁽¹⁾	Testing)⁽¹⁾
(in millions)
For the three months ended June 30, 2015
Interest rate contracts	$	103.2		Interest expense	$	(2.9	)	Interest expense	$	3.7
Commodity contracts		(7.7	)	Commodity Costs		7.1		Commodity Costs		—
Total	$	95.5			$	4.2			$	3.7
For the three months ended June 30, 2014
Interest rate contracts	$	(65.4	)	Interest expense	$	(3.4	)	Interest expense	$	(5.3	)
Commodity contracts		(3.2	)	Commodity Costs		(3.8	)	Commodity Costs		(1.1	)
Total	$	(68.6	)		$	(7.2	)		$	(6.4	)
For the six months ended June 30, 2015
Interest rate contracts	$	(42.0	)	Interest expense	$	(8.3	)	Interest expense	$	32.4
Commodity contracts		(11.3	)	Commodity Costs		15.5		Commodity Costs		(4.0	)
Total	$	(53.3	)		$	7.2			$	28.4
For the six months ended June 30, 2014
Interest rate contracts	$	(137.1	)	Interest expense	$	(8.1	)	Interest expense	$	(11.0	)
Commodity contracts		(3.3	)	Commodity Costs		(10.3	)	Commodity Costs		0.6
Total	$	(140.4	)		$	(18.4	)		$	(10.4	)

⁽¹⁾	Includes only the ineffective portion of derivatives that are designated as hedging instruments and does not include net gains or losses associated with derivatives that do not qualify for hedge accounting treatment.

Components of Accumulated Other Comprehensive Income/(Loss)

	Cash Flow Hedges
	2015			2014
	(in millions)
Balance at January 1,	$	(211.4	)	$	(76.6	)
Other Comprehensive Income before reclassifications⁽¹⁾		(44.1	)		(152.4	)
Amounts reclassified from AOCI^{(2) (3)}		(3.5	)		16.6
Net other comprehensive loss	$	(47.6	)	$	(135.8	)
Balance at June 30,	$	(259.0	)	$	(212.4	)

⁽¹⁾	Excludes NCI gain of $1.1 million and NCI loss of $2.1 million reclassified from AOCI at June 30, 2015 and 2014, respectively.
⁽²⁾	Excludes NCI loss of $3.7 million and NCI gain of $1.8 million reclassified from AOCI at June 30, 2015 and 2014, respectively.
⁽³⁾	For additional details on the amounts reclassified from AOCI, reference the Reclassifications from Accumulated Other Comprehensive Income table below.

Reclassifications from Accumulated Other Comprehensive Income

	For the three months ended June 30,					For the six months ended June 30,
	2015			2014		2015			2014
	(in millions)
Losses (gains) on cash flow hedges:
Interest Rate Contracts⁽¹⁾	$	2.9		$	3.4	$	8.3		$	8.1
Commodity Contracts^(2)(3)(4)		(5.4	)		3.2		(11.8	)		8.5
Total Reclassifications from AOCI	$	(2.5	)	$	6.6	$	(3.5	)	$	16.6

⁽¹⁾	Loss reported within "Interest expense, net" in the consolidated statements of income.
⁽²⁾	Loss (gain) reported within "Commodity costs" in the consolidated statements of income.
⁽³⁾	Excludes NCI loss of $1.7 million and gain of $0.6 million reclassified from AOCI for the three months ending June 30, 2015 and 2014, respectively.
⁽⁴⁾	Excludes NCI loss of $3.7 million and gain of $1.8 million reclassified from AOCI for the six months ending June 30, 2015 and 2014, respectively.

Effect of Derivative Instruments on Consolidated Statements of Income

		For the three months						For the six months
		ended June 30,						ended June 30,
		2015			2014			2015			2014
Derivatives Not Designated	Location of Gain or (Loss)	Amount of Gain or (Loss)						Amount of Gain or (Loss)
as Hedging Instruments	Recognized in Earnings	Recognized in Earnings⁽¹⁾⁽²⁾						Recognized in Earnings⁽¹⁾⁽²⁾
		(in millions)
Commodity contracts	Transportation and other services⁽³⁾	$	(2.7	)	$	(5.5	)	$	—		$	(7.6	)
Commodity contracts	Commodity sales		2.1			3.1			(15.2	)		3.1
Commodity contracts	Commodity sales - affiliate		(0.1	)		0.1			(0.3	)		0.5
Commodity contracts	Commodity costs⁽⁴⁾		(8.6	)		(13.4	)		3.5			(19.4	)
Commodity contracts	Power		—			0.2			—			0.5
Total		$	(9.3	)	$	(15.5	)	$	(12.0	)	$	(22.9	)

⁽¹⁾	Does not include settlements associated with derivative instruments that settle through physical delivery.
⁽²⁾	Includes only net gains or losses associated with those derivatives that do not qualify for hedge accounting treatment and does not include the ineffective portion of derivatives that are designated as hedging instruments.
⁽³⁾	Includes settlement gains (losses) of $5.6 million and $(0.1) million for the three months ended June 30, 2015 and 2014, respectively, and settlement gains of $12.2 million and $0.3 million for the six months ended June 30, 2015 and 2014, respectively.
⁽⁴⁾	Includes settlement gains (losses) of $18.0 million and $(0.3) million for the three months ended June 30, 2015 and 2014, respectively, and settlement gains (losses) of $43.7 million and $(8.8) million for the six months ended June 30, 2015 and 2014, respectively.

We record the fair market value of our derivative financial and physical instruments in the consolidated statements of financial position as current and long-term assets or liabilities on a gross basis. However, the terms of the ISDA, which govern our financial contracts and our other master netting agreements, allow the parties to elect in respect of all transactions under the agreement, in the event of a default and upon notice to the defaulting party, for the non-defaulting party to set-off all settlement payments, collateral held and any other obligations (whether or not then due), which the non-defaulting party owes to the defaulting party. The effect of the rights of set-off are outlined below.

Offsetting of Financial Assets and Derivative Assets


	As of June 30, 2015
	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Financial Position		Net Amount of Assets Presented in the Statement of Financial Position		Gross Amount Not Offset in the Statement of Financial Position⁽¹⁾			Net Amount
	(in millions)
Description:
Derivatives	$	180.8	$	—	$	180.8	$	(56.1	)	$	124.7


	As of December 31, 2014
	Gross Amount of Recognized Assets		Gross Amount Offset in the Statement of Financial Position		Net Amount of Assets Presented in the Statement of Financial Position		Gross Amount Not Offset in the Statement of Financial Position⁽¹⁾			Net Amount
	(in millions)
Description:
Derivatives	$	279.1	$	—	$	279.1	$	(91.8	)	$	187.3

(1)

Includes $11.5 million and $28.4 million of cash collateral held at June 30, 2015 and December 31, 2014, respectively.

Offsetting of Financial Liabilities and Derivative Liabilities


	As of June 30, 2015
	Gross Amount of Recognized Liabilities⁽¹⁾			Gross Amount Offset in the Statement of Financial Position		Net Amount of Liabilities Presented in the Statement of Financial Position			Gross Amount Not Offset in the Statement of Financial Position⁽¹⁾		Net Amount
	(in millions)
Description:
Derivatives	$	(417.3	)	$	—	$	(417.3	)	$	56.1	$	(361.2	)


	As of December 31, 2014
	Gross Amount of Recognized Liabilities⁽¹⁾			Gross Amount Offset in the Statement of Financial Position		Net Amount of Liabilities Presented in the Statement of Financial Position			Gross Amount Not Offset in the Statement of Financial Position⁽¹⁾		Net Amount
	(in millions)
Description:
Derivatives	$	(440.0	)	$	—	$	(440.0	)	$	91.8	$	(348.2	)

(1)

Includes $11.5 million and $28.4 million of cash collateral at June 30, 2015 and December 31, 2014, respectively.

Inputs to Fair Value Derivative Instruments

The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2015 and December 31, 2014. We classify financial assets and liabilities in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect our valuation of the financial assets and liabilities and their placement within the fair value hierarchy.

	June 30, 2015										December 31, 2014
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
	(in millions)
Interest rate contracts	$	—	$	(352.6	)	$	—	$	(352.6	)	$	—	$	(343.0	)	$	—	$	(343.0	)
Commodity contracts:
Financial		—		19.2			20.1		39.3			—		41.6			42.7		84.3
Physical		—		—			12.3		12.3			—		—			19.5		19.5
Commodity options		—		—			76.0		76.0			—		—			106.7		106.7
		—		(333.4	)		108.4		(225.0	)		—		(301.4	)		168.9		(132.5	)
Cash collateral									(11.5	)									(28.4	)
Total								$	(236.5	)								$	(160.9	)

Qualitative Information about Level 2 Fair Value Measurements

We categorize, as Level 2, the fair value of assets and liabilities that we measure with either directly or indirectly observable inputs as of the measurement date, where pricing inputs are other than quoted prices in active markets for the identical instrument. This category includes both OTC transactions valued using exchange traded pricing information in addition to assets and liabilities that we value using either models or other valuation methodologies derived from observable market data. These models are primarily industry-standard models that consider various inputs including: (1) quoted prices for assets and liabilities; (2) time value; and (3) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the assets and liabilities, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace.

Qualitative Information about Level 3 Fair Value Measurements

Data from pricing services and published indices are used to value our Level 3 derivative instruments, which are fair-valued on a recurring basis. We may also use these inputs with internally developed methodologies that result in our best estimate of fair value. The inputs listed in the table below would have a direct impact on the fair values of the listed instruments. The significant unobservable inputs used in the fair value measurement of the commodity derivatives (Natural Gas, NGLs, Crude and Power) are forward commodity prices. The significant unobservable inputs used in determining the fair value measurement of options are price and volatility. Increases/(decreases) in the forward commodity price in isolation would result in significantly higher/(lower) fair values for long positions, with offsetting impacts to short positions. Increases/(decreases) in volatility would increase/(decrease) the value for the holder of the option. Generally, a change in the estimate of forward commodity prices is unrelated to a change in the estimate of volatility of prices. A change to the credit valuation adjustment would change the fair value of the positions in opposite directions.

Quantitative Information About Level 3 Fair Value Measurements

	Fair Value at					Range ⁽¹⁾
	June 30,			Valuation	Unobservable							Weighted
Contract Type	2015 ⁽²⁾			Technique	Input	Lowest			Highest			Average			Units
	(in millions)
Commodity Contracts - Financial
Natural Gas	$	0.7		Market Approach	Forward Gas Price		2.54			3.59			2.96		MMBtu
NGLs	$	19.4		Market Approach	Forward NGL Price		0.20			1.25			0.60		Gal
Commodity Contracts - Physical
Natural Gas	$	2.0		Market Approach	Forward Gas Price		2.52			4.29			2.91		MMBtu
Crude Oil	$	(0.2	)	Market Approach	Forward Crude Price		47.45			63.00			59.84		Bbl
NGLs	$	10.5		Market Approach	Forward NGL Price		0.20			1.31			0.49		Gal
Commodity Options
Natural Gas, Crude and NGLs	$	76.0		Option Model	Option Volatility		10	%		62	%		35	%
Total Fair Value	$	108.4

⁽¹⁾	Prices are in dollars per Millions of British Thermal Units, or MMBtu, for Natural Gas; dollars per Gallon, or Gal, for NGLs; and dollars per barrel, or Bbl, for Crude Oil.
⁽²⁾	Fair values include credit valuation adjustment losses of approximately $0.3 million.

Quantitative Information About Level 3 Fair Value Measurements

	Fair Value at					Range⁽¹⁾
	December 31,			Valuation	Unobservable							Weighted
Contract Type	2014⁽²⁾			Technique	Input	Lowest			Highest			Average			Units
	(in millions)
*Commodity Contracts - Financial*
Natural Gas	$	0.6		Market Approach	Forward Gas Price		2.55			3.72			3.04		MMBtu
NGLs	$	42.1		Market Approach	Forward NGL Price		0.48			1.14			0.64		Gal
*Commodity Contracts - Physical*
Natural Gas	$	1.5		Market Approach	Forward Gas Price		1.55			4.08			3.08		MMBtu
Crude Oil	$	(0.9	)	Market Approach	Forward Crude Price		49.57			55.60			53.51		Bbl
NGLs	$	18.9		Market Approach	Forward NGL Price		0.06			1.21			0.54		Gal
*Commodity Options*
Natural Gas, Crude and NGLs	$	106.7		Option Model	Option Volatility		19	%		94	%		36	%
*Total Fair Value*	$	168.9

⁽¹⁾	Prices are in dollars per MMBtu for Natural Gas, Gal for NGLs and Bbl for Crude Oil.
⁽²⁾	Fair values include credit valuation adjustment losses of approximately $1.0 million.

Level 3 Fair Value Reconciliation

The table below provides a reconciliation of changes in the fair value of our Level 3 financial assets and liabilities measured on a recurring basis from January 1, 2015 to June 30, 2015. No transfers of assets between any of the Levels occurred during the period.

	Commodity			Commodity
	Financial			Physical			Commodity
	Contracts			Contracts			Options			Total
	(in millions)
Beginning balance as of January 1, 2015	$	42.7		$	19.5		$	106.7		$	168.9
Transfer in (out) of Level 3⁽¹⁾		—			—			—			—
Gains or losses included in earnings:
Reported in Commodity sales		—			3.8			—			3.8
Reported in Commodity costs		(2.2	)		13.2			(3.9	)		7.1
Gains or losses included in other comprehensive income:
Reported in Other comprehensive income (loss), net of tax		(0.4	)		—			—			(0.4	)
Purchases, issuances, sales and settlements:
Purchases		—			—			—			—
Sales		—			—			2.0			2.0
Settlements⁽²⁾		(20.0	)		(24.2	)		(28.8	)		(73.0	)
Ending balance as June 30, 2015	$	20.1		$	12.3		$	76.0		$	108.4
Amounts reported in Commodity sales	$	—		$	(15.5	)	$	—		$	(15.5	)
Amount of changes in net assets attributable to the change in derivative gains or losses related to assets and liabilities still held at the reporting date:
Reported in Commodity sales	$	—		$	5.6		$	—		$	5.6
Reported in Commodity costs	$	(2.0	)	$	5.8		$	(0.9	)		2.9

⁽¹⁾	Our policy is to recognize transfers as of the last day of the reporting period.
⁽²⁾	Settlements represent the realized portion of forward contracts.

Fair Value Measurements of Commodity Derivatives

The following table provides summarized information about the fair values of expected cash flows of our outstanding commodity based swaps and physical contracts at June 30, 2015 and December 31, 2014.

	At June 30, 2015													At December 31, 2014
					Wtd. Average Price⁽²⁾				Fair Value⁽³⁾					Fair Value⁽³⁾
	Commodity		Notional ⁽¹⁾		Receive			Pay	Asset		Liability			Asset			Liability
									(in millions)
*Portion of contracts maturing in 2015*
Swaps
Receive variable/pay fixed		Natural Gas		1,558,292	$	2.77	$	2.83	$	0.1	$	(0.2	)	$	—	$	(0.7	)
		NGL		901,000	$	32.48	$	36.64	$	0.1	$	(3.8	)	$	—	$	(6.8	)
		Crude Oil		504,000	$	60.30	$	84.19	$	—	$	(12.0	)	$	—	$	(27.4	)
Receive fixed/pay variable		Natural Gas		2,550,938	$	3.00	$	2.83	$	0.5	$	—		$	3.7	$	—
		NGL		1,720,600	$	38.80	$	28.84	$	17.4	$	(0.3	)	$	39.2	$	—
		Crude Oil		961,064	$	91.18	$	60.31	$	29.5	$	—		$	65.0	$	—
Receive variable/pay variable		Natural Gas		47,491,500	$	2.73	$	2.72	$	1.5	$	(1.2	)	$	1.5	$	(1.7	)
Physical Contracts
Receive variable/pay fixed		Natural Gas		106,700	$	2.66	$	2.70	$	—	$	—		$	—	$	—
		NGL		767,000	$	11.59	$	11.40	$	0.2	$	(0.1	)	$	—	$	(3.6	)
		Crude Oil		33,400	$	59.60	$	59.45	$	—	$	—		$	—	$	—
Receive fixed/pay variable		Natural Gas		209,936	$	2.81	$	2.73	$	—	$	—		$	—	$	—
		NGL		3,396,447	$	21.07	$	19.97	$	4.9	$	(1.2	)	$	19.8	$	—
		Crude Oil		107,000	$	59.58	$	59.69	$	—	$	(0.1	)	$	0.5	$	—
Receive variable/pay variable		Natural Gas		136,481,498	$	2.80	$	2.79	$	1.1	$	(0.2	)	$	2.2	$	(1.0	)
		NGL		8,585,747	$	23.33	$	22.75	$	5.6	$	(0.6	)	$	3.7	$	(1.0	)
		Crude Oil		911,227	$	58.61	$	58.91	$	1.1	$	(1.4	)	$	0.3	$	(1.7	)
*Portion of contracts maturing in 2016*
Swaps
Receive variable/pay fixed		Natural Gas		363,514	$	2.83	$	3.41	$	—	$	(0.2	)	$	—	$	(0.1	)
		NGL		823,500	$	28.45	$	30.70	$	—	$	(1.8	)	$	—	$	—
		Crude Oil		415,950	$	62.01	$	82.69	$	—	$	(8.6	)	$	—	$	(8.1	)
Receive fixed/pay variable		Natural Gas		1,898,100	$	3.21	$	3.24	$	0.1	$	(0.1	)	$	—	$	—
		NGL		883,500	$	38.48	$	28.05	$	9.2	$	—		$	9.3	$	—
		Crude Oil		769,270	$	74.36	$	62.04	$	9.5	$	(0.1	)	$	9.1	$	—
Receive variable/pay variable		Natural Gas		50,739,000	$	3.01	$	2.99	$	1.6	$	(1.0	)	$	0.5	$	(0.3	)
Physical Contracts
Receive variable/pay fixed		NGL		—	$	—	$	—	$	—	$	—		$	—	$	—
Receive fixed/pay variable		Natural Gas		63,850	$	3.11	$	3.06	$	—	$	—		$	—	$	—
		NGL		38,963	$	32.99	$	31.84	$	0.1	$	—		$	—	$	—
Receive variable/pay variable		Natural Gas		99,005,643	$	3.13	$	3.12	$	0.8	$	—		$	0.7	$	(0.4	)
		NGL		9,676,152	$	21.94	$	21.76	$	1.8	$	—		$	—	$	—
		Crude Oil		30,400	$	61.65	$	59.30	$	0.1	$	—		$	—	$	—
*Portion of contracts maturing in 2017*
Swaps
Receive variable/pay fixed		Natural Gas		24,030	$	3.27	$	3.48	$	—	$	—		$	—	$	—
		NGL		547,500	$	23.14	$	25.86	$	—	$	(1.5	)	$	—	$	—
		Crude Oil		547,500	$	63.62	$	66.72	$	—	$	(1.7	)	$	—	$	—
Receive fixed/pay variable		NGL		547,500	$	23.59	$	23.14	$	0.6	$	(0.3	)	$	0.7	$	—
		Crude Oil		547,500	$	66.78	$	63.62	$	2.1	$	(0.4	)	$	0.8	$	—
Receive variable/pay variable		Natural Gas		5,910,000	$	3.24	$	3.20	$	0.2	$	—		$	—	$	—
Physical Contracts
Receive variable/pay variable		Natural Gas		28,097,550	$	3.39	$	3.38	$	0.2	$	—		$	0.2	$	(0.1	)
*Portion of contracts maturing in 2018*
Physical Contracts
Receive variable/pay variable		Natural Gas		5,787,810	$	3.57	$	3.56	$	0.1	$	—		$	—	$	—
*Portion of contracts maturing in 2019*
Physical Contracts
Receive variable/pay variable		Natural Gas		2,187,810	$	3.54	$	3.51	$	—	$	—		$	—	$	—
*Portion of contracts maturing in 2020*
Physical Contracts
Receive variable/pay variable		Natural Gas		359,640	$	3.86	$	3.83	$	—	$	—		$	—	$	—

⁽¹⁾	Volumes of natural gas are measured in MMBtu, whereas volumes of NGL and crude oil are measured in Bbl.
⁽²⁾	Weighted average prices received and paid are in $/MMBtu for natural gas and $/Bbl for NGL and crude oil.
⁽³⁾	The fair value is determined based on quoted market prices at June 30, 2015 and December 31, 2014, respectively, discounted using the swap rate for the respective periods to consider the time value of money. Fair values exclude credit valuation adjustment losses of approximately $0.0 million and $0.5 million at June 30, 2015 and December 31, 2014, respectively, as well as cash collateral received.

The following table provides summarized information about the fair values of expected cash flows of our outstanding commodity options at June 30, 2015 and December 31, 2014.

	At June 30, 2015													At December 31, 2014
					Strike		Market		Fair Value⁽³⁾					Fair Value⁽³⁾
	Commodity		Notional ⁽¹⁾		Price ⁽²⁾		Price ⁽²⁾		Asset		Liability			Asset		Liability
									(in millions)
*Portion of option contracts maturing in 2015*
Puts (purchased)		Natural Gas		2,024,000	$	3.90	$	2.90	$	2.1	$	—		$	3.8	$	—
		NGL		1,159,200	$	43.32	$	25.70	$	20.6	$	—		$	40.2	$	—
		Crude Oil		368,000	$	81.56	$	60.38	$	7.9	$	—		$	18.8	$	—
Calls (written)		Natural Gas		644,000	$	5.05	$	2.90	$	—	$	—		$	—	$	—
		NGL		745,200	$	45.80	$	24.93	$	—	$	(0.1	)	$	—	$	(0.6	)
		Crude Oil		368,000	$	88.39	$	60.38	$	—	$	—		$	—	$	(0.4	)
Puts (written)		Natural Gas		2,024,000	$	3.90	$	2.91	$	—	$	(2.1	)	$	—	$	(3.8	)
		NGL		46,000	$	77.28	$	51.86	$	—	$	(1.2	)	$	—	$	—
Calls (purchased)		Natural Gas		644,000	$	5.05	$	2.90	$	—	$	—		$	—	$	—
*Portion of option contracts maturing in 2016*
Puts (purchased)		Natural Gas		1,647,000	$	3.75	$	3.17	$	1.2	$	—		$	1.0	$	—
		NGL		2,836,500	$	39.24	$	27.06	$	38.9	$	—		$	39.3	$	—
		Crude Oil		805,200	$	75.91	$	62.08	$	12.9	$	—		$	14.7	$	—
Calls (written)		Natural Gas		1,647,000	$	4.98	$	3.17	$	—	$	(0.1	)	$	—	$	(0.1	)
		NGL		2,836,500	$	45.14	$	27.06	$	—	$	(2.8	)	$	—	$	(3.2	)
		Crude Oil		805,200	$	86.68	$	62.08	$	—	$	(0.8	)	$	—	$	(2.7	)
Puts (written)		Natural Gas		1,647,000	$	3.75	$	3.17	$	—	$	(1.2	)	$	—	$	(1.0	)
		NGL		91,500	$	39.06	$	29.66	$	—	$	(1.1	)	$	—	$	—
Calls (purchased)		Natural Gas		1,647,000	$	4.98	$	3.17	$	0.1	$	—		$	0.1	$	—
		NGL		91,500	$	46.41	$	29.66	$	0.1	$	—		$	—	$	—
*Portion of option contracts maturing in 2017*
Puts (purchased)		NGL		547,500	$	21.70	$	23.14	$	0.8	$	—		$	1.2	$	—
		Crude Oil		547,500	$	63.00	$	63.62	$	4.3	$	—		$	4.1	$	—
Calls (written)		NGL		547,500	$	25.34	$	23.14	$	—	$	(0.6	)	$	—	$	(0.7	)
		Crude Oil		547,500	$	71.45	$	63.62	$	—	$	(2.7	)	$	—	$	(3.3	)

⁽¹⁾	Volumes of natural gas are measured in MMBtu, whereas volumes of NGL and crude oil are measured in Bbl.
⁽²⁾	Strike and market prices are in $/MMBtu for natural gas and in $/Bbl for NGL and crude oil.
⁽³⁾	The fair value is determined based on quoted market prices at June 30, 2015 and December 31, 2014, respectively, discounted using the swap rate for the respective periods to consider the time value of money. Fair values exclude credit valuation adjustment losses of approximately $0.2 million and $0.7 million at June 30, 2015 and December 31, 2014, respectively, as well as cash collateral received.

Fair Value Measurements of Interest Rate Derivatives

We enter into interest rate swaps, caps and derivative financial instruments with similar characteristics to manage the cash flow associated with future interest rate movements on our indebtedness. The following table provides information about our current interest rate derivatives for the specified periods.

					Average			Fair Value⁽²⁾ at
Date of Maturity & Contract Type	Accounting Treatment		Notional		Fixed Rate ⁽¹⁾			June 30, 2015			December 31, 2014
					(dollars in millions)
Contracts maturing in 2015
Interest Rate Swaps – Pay Fixed		Cash Flow Hedge	$	510		1.53	%	$	—		$	(0.2	)
Contracts maturing in 2016
Interest Rate Swaps – Pay Fixed		Cash Flow Hedge	$	90		0.55	%	$	(0.1	)	$	(0.1	)
Contracts maturing in 2017
Interest Rate Swaps – Pay Fixed		Cash Flow Hedge	$	500		2.21	%	$	(11.5	)	$	(12.9	)
Contracts maturing in 2018
Interest Rate Swaps – Pay Fixed		Cash Flow Hedge	$	810		2.24	%	$	(5.1	)	$	(1.3	)
Contracts maturing in 2019
Interest Rate Swaps – Pay Fixed		Cash Flow Hedge	$	620		2.96	%	$	(4.0	)	$	(3.3	)
Contracts settling prior to maturity
2015 – Pre-issuance Hedges		Cash Flow Hedge	$	1,000		5.48	%	$	(254.6	)	$	(258.3	)
2016 – Pre-issuance Hedges		Cash Flow Hedge	$	500		4.21	%	$	(57.1	)	$	(63.4	)
2017 – Pre-issuance Hedges		Cash Flow Hedge	$	500		3.69	%	$	(25.6	)	$	(36.0	)
2018 – Pre-issuance Hedges		Cash Flow Hedge	$	350		3.08	%	$	3.7		$	(4.9	)

⁽¹⁾	Interest rate derivative contracts are based on the one-month or three-month London Interbank Offered Rate, or LIBOR.
⁽²⁾	The fair value is determined from quoted market prices at June 30, 2015 and December 31, 2014, respectively, discounted using the swap rate for the respective periods to consider the time value of money. Fair values exclude credit valuation adjustment gains of approximately $1.7 million and $37.4 million at June 30, 2015 and December 31, 2014, respectively.