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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Significant Unobservable Inputs - Guarantees
The significant unobservable input used in the fair value measurement of the Company’s financial guarantee liability at December 31, 2014 is included in the table below (in thousands).
Unobservable Input
 
 
Estimated future payments for plugging and abandonment
 
$
372,034
Significant Unobservable Inputs - Derivative Contracts
The significant unobservable inputs and the range and weighted average of these inputs used in the fair value measurements of the Company’s natural gas basis swaps at December 31, 2014 are included in the table below. All of the outstanding oil basis swaps contractually matured during December 31, 2013.
Unobservable Input
 
Range
 
Weighted Average
 
Fair Value
 
 
(Price per Mcf)
 
(In thousands)
December 31, 2014
 
 
 
 
 
 
 
 
Natural gas basis differential forward curve
 
$
(0.03
)
–
$
(0.38
)
 
$
(0.29
)
 
$
350
Assets and Liabilities Measured at Fair Value on Recurring Basis
The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis by the fair value hierarchy (in thousands):

December 31, 2014
 
Fair Value Measurements
 
Netting(1)
 
Assets/Liabilities at Fair Value
 
Level 1
 
Level 2
 
Level 3
 
 
Assets
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
—

 
$
338,067

 
$
350

 
$
—

 
$
338,417

Investments
11,106

 
—

 
—

 
—

 
11,106

 
$
11,106

 
$
338,067

 
$
350

 
$
—

 
$
349,523

Liabilities
 
 
 
 
 
 
 
 
 
Guarantees
$
—

 
$
—

 
$
5,104

 
$
—

 
$
5,104

 
$
—

 
$
—

 
$
5,104

 
$
—

 
$
5,104


December 31, 2013
 
Fair Value Measurements
 
Netting(1)
 
Assets/Liabilities at Fair Value
 
Level 1
 
Level 2
 
Level 3
 
 
Assets
 
 
 
 
 
 
 
 
 
Restricted deposits
$
27,955

 
$
—

 
$
—

 
$
—

 
$
27,955

Commodity derivative contracts
—

 
50,274

 
—

 
(23,369
)
 
26,905

Investments
13,708

 
—

 
—

 
—

 
13,708

 
$
41,663

 
$
50,274

 
$
—

 
$
(23,369
)
 
$
68,568

Liabilities
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
—

 
$
78,200

 
$
—

 
$
(23,369
)
 
$
54,831

 
$
—

 
$
78,200

 
$
—

 
$
(23,369
)
 
$
54,831

____________________
(1)Represents the impact of netting assets and liabilities with counterparties with which the right of offset exists.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the year ended December 31, 2014 (in thousands): 
Level 3 Fair Value Measurements - Guarantees
Year Ended December 31, 2014
Beginning balance
$
—

Issuances(1)
9,446

Gain on guarantees
(4,342
)
Ending balance
$
5,104

____________________
(1)
Represents the fair value of the guarantees of certain plugging and abandonment obligations on behalf of Fieldwood as of February 25, 2014, the closing date for the sale of the Gulf Properties.
Reconciliation of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for commodity derivative contracts during the years ended December 31, 2014, 2013 and 2012 (in thousands): 
 
2014
 
2013
 
2012
Level 3 commodity derivative contracts at January 1
$
—

 
$
(512
)
 
$
(4,252
)
Loss on derivative contracts
—

 
(133
)
 
(5,460
)
Purchases
350

 
—

 
5,697

Settlements paid
—

 
645

 
3,503

Level 3 commodity derivative contracts at December 31
$
350

 
$
—

 
$
(512
)
Estimated Fair Value and Carrying Value of Senior Notes
The estimated fair values and carrying values of the Company’s senior notes at December 31, 2014 and 2013 were as follows (in thousands):
 
December 31, 2014
 
December 31, 2013
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
8.75% Senior Notes due 2020(1)
$
303,750

 
$
445,402

 
$
486,000

 
$
444,736

7.5% Senior Notes due 2021(2)
$
752,000

 
$
1,178,486

 
$
1,230,813

 
$
1,178,922

8.125% Senior Notes due 2022
$
472,500

 
$
750,000

 
$
795,000

 
$
750,000

7.5% Senior Notes due 2023(3)
$
519,750

 
$
821,548

 
$
837,375

 
$
821,249

___________________
(1)
Carrying value is net of $4,598 and $5,264 discount at December 31, 2014 and 2013, respectively.
(2)
Carrying value includes a premium, applicable to notes issued in August 2012, of $3,486 and $3,922 at December 31, 2014 and 2013, respectively.
(3)
Carrying value is net of $3,452 and $3,751 discount at December 31, 2014 and 2013, respectively.