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Derivative Instruments (Tables)
 6 Months Ended
Jun. 30, 2012
Derivative Instruments [Abstract]  
Outstanding trading contracts
                         
    Quantity in     Estimated Market     Weighted Average  

At June 30, 2012

   Gallons     Prices     Contract Prices  

Forward Contracts

                        

Sale

     5,754,000     $ 0.7200 — $1.3775     $ 0.8933  

Purchase

     5,670,000     $ 0.6825 — $1.3300     $ 0.8724  
Fair values of the derivative contracts recorded in the condensed consolidated balance sheet
                     
   

Asset Derivatives

  
        Fair Value  

(in thousands)

  

Balance Sheet Location

   June 30, 2012     December 31, 2011  

Derivatives not designated as hedging instruments

                    

Forward contracts

   Mark-to-market energy assets   $ 462     $ 1,686  

Derivatives designated as fair value hedges

                    

Put option (1)

   Mark-to-market energy assets     —         68  

Call option (2)

   Mark-to-market energy assets     123       —    
       

 

 

    

 

 

  

Total asset derivatives

       $ 585     $ 1,754  
       

 

 

    

 

 

  
   
   

Liability Derivatives

  
        Fair Value  

(in thousands)

  

Balance Sheet Location

   June 30, 2012     December 31, 2011  

Derivatives not designated as hedging instruments

                    

Forward contracts

   Mark-to-market energy liabilities   $ 504     $ 1,496  
       

 

 

    

 

 

  

Total liability derivatives

       $ 504     $ 1,496  
       

 

 

    

 

 

  

 

(1) We purchased a put option for the Pro-Cap Plan in August 2011. The put option, which expired in March 2012, had a fair value of $0 at June 30, 2012.
(2) As a fair value hedge with no ineffective portion, the unrealized gains and losses associated with this call option are recorded in cost of sales, offset by the corresponding change in the value of propane inventory (hedged item), which is also recorded in cost of sales. The amounts in cost of sales offset to zero and the unrealized gains and losses of this call option effectively changed the value of propane inventory.
Effects of gains and losses from derivative instruments on the condensed consolidated financial statements
                                     
        Amount of Gain (Loss) on Derivatives  
    Location of Gain   For the Three Months Ended June 30,     For the Six Months Ended June 30,  

(in thousands)

   (Loss) on Derivatives   2012     2011     2012     2011  

Derivatives not designated as hedging instruments:

                                    

Unrealized gain (loss) on forward contracts

   Revenue   $ (172 )    $ (112 )    $ (232 )    $ (30 ) 
           

Derivatives designated as fair value hedges:

                                    

Put Option

   Cost of sales     —         —         27       —    

Call Option (1)

   Inventory     (16 )      —         (16 )      —    
       

 

 

    

 

 

    

 

 

    

 

 

  

Total

       $ (188 )    $ (112 )    $ (221 )    $ (30 ) 
       

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) 

The change in fair value of the call option effectively adjusts the propane inventory balance until it is exercised, at which point the proceeds, if any, reduce cost of sales. There is no ineffective portion of this call option.

Effects of trading activities on the condensed consolidated statements of income
                                         
    Location in the     Three Months Ended June 30,     Six Months Ended June 30,  

(in thousands)

   Statement of Income     2012     2011     2012     2011  

Realized gains on forward contracts/put option

     Revenue     $ 807     $ 647     $ 1,321     $ 1,554  

Unrealized loss on forward contracts

     Revenue       (172 )      (112 )      (232 )      (30 ) 
           

 

 

    

 

 

    

 

 

    

 

 

  

Total

           $ 635     $ 535     $ 1,089     $ 1,524