XML 45 R28.htm IDEA: XBRL DOCUMENT v2.4.1.9
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2015
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 March 31, 2015 and 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 March 31, 2015 and December 31, 2014 are included in the table below.
Unobservable Input
 
Range
 
Weighted Average
 
Fair Value
 
 
(Price per Mcf)
 
(In thousands)
March 31, 2015
 
 
 
 
 
 
 
 
Natural gas basis differential forward curve
 
$
(0.21
)
–
$
(0.47
)
 
$
(0.34
)
 
$
1,332

December 31, 2014
 
 
 
 
 
 
 
 
Natural gas basis differential forward curve
 
$
(0.03
)
–
$
(0.38
)
 
$
(0.29
)
 
$
350
Assets and Liabilities Measured 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):

March 31, 2015
 
Fair Value Measurements
 
Netting(1)
 
Assets/Liabilities at Fair Value
 
Level 1
 
Level 2
 
Level 3
 
 
Assets
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
—

 
$
249,955

 
$
1,735

 
$
(284
)
 
$
251,406

Investments
11,679

 
—

 
—

 
—

 
11,679

 
$
11,679

 
$
249,955

 
$
1,735

 
$
(284
)
 
$
263,085

Liabilities
 
 
 
 
 
 
 
 
 
Guarantees
$
—

 
$
—

 
$
4,791

 
$
—

 
$
4,791

Commodity derivative contracts
—

 
—

 
403

 
(284
)
 
119

 
$
—

 
$
—

 
$
5,194

 
$
(284
)
 
$
4,910


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

____________________
(1)Represents the effect of netting assets and liabilities for counterparties with which the right of offset exists.
Fair Value, Reconciliation of Level 3 Fair Value Measurements for Guarantees
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the three-month periods ended March 31, 2015 and 2014 (in thousands): 
 
Three Months Ended March 31,
Level 3 Fair Value Measurements - Guarantees
2015
 
2014
Beginning balance
$
5,104

 
$
—

Issuances(1)
—

 
9,446

(Gain) loss on guarantees
(313
)
 
34

Ending balance
$
4,791

 
$
9,480

____________________
(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, for the three-month period ended March 31, 2014.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for commodity derivative contracts during the three-month period ended March 31, 2015 (in thousands): 
Level 3 Fair Value Measurements - Commodity Derivative Contracts
Three Months Ended March 31, 2015
Beginning balance
$
350

Purchases
347

Loss on derivative contracts
635

Ending balance
$
1,332
Senior Notes Carrying Amount and Fair Value Table
The estimated fair values and carrying values of the Company’s Senior Notes at March 31, 2015 and December 31, 2014 were as follows (in thousands):
 
March 31, 2015
 
December 31, 2014
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
8.75% Senior Notes due 2020(1)
$
292,500

 
$
445,580

 
$
303,750

 
$
445,402

7.5% Senior Notes due 2021(2)
$
728,500

 
$
1,178,372

 
$
752,000

 
$
1,178,486

8.125% Senior Notes due 2022
$
460,125

 
$
750,000

 
$
472,500

 
$
750,000

7.5% Senior Notes due 2023(3)
$
503,250

 
$
821,626

 
$
519,750

 
$
821,548

____________________
(1)
Carrying value is net of $4,420 and $4,598 discount at March 31, 2015 and December 31, 2014, respectively.
(2)
Carrying value includes a premium of $3,372 and $3,486 at March 31, 2015 and December 31, 2014, respectively.
(3)
Carrying value is net of $3,374 and $3,452 discount at March 31, 2015 and December 31, 2014, respectively.