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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
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, 2015 and 2014 are included in the table below.
Unobservable Input
 
Range
 
Weighted Average
 
Fair Value
 
 
(Price per Mcf)
 
(In thousands)
December 31, 2015
 
 
 
 
 
 
 
 
Natural gas basis differential forward curve
 
$
(0.06
)
–
$
(0.28
)
 
$
(0.22
)
 
$
(1,748
)
December 31, 2014
 
 
 
 
 
 
 
 
Natural gas basis differential forward curve
 
$
(0.03
)
–
$
(0.38
)
 
$
(0.29
)
 
$
350
Significant Unobservable Inputs - Liabilities

The significant unobservable inputs and range and weighted average of these inputs used in the fair value measurement of the conversion features at December 31, 2015 are included in the table below.
Unobservable Input
 
Range
 
Weighted Average
 
Fair Value
 
 
 
 
(In thousands)
December 31, 2015
 
 
 
 
 
 
 
 
Long-term debt conversion feature hazard rate
 
114.0
%
–
135.2
%
 
119.2
%
 
$
29,355
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, 2015
 
Fair Value Measurements
 
Netting(1)
 
Assets/Liabilities at Fair Value
 
Level 1
 
Level 2
 
Level 3
 
 
Assets
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
—

 
$
85,524

 
$
—

 
$
(1,175
)
 
$
84,349

Investments
10,106

 
—

 
—

 
—

 
10,106

 
$
10,106

 
$
85,524

 
$
—

 
$
(1,175
)
 
$
94,455

Liabilities
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
—

 
$
—

 
$
1,748

 
$
(1,175
)
 
$
573

Long-term debt holder conversion feature
—

 
—

 
29,355

 
—

 
29,355

Mandatory prepayment feature - PGC Senior Secured Notes
—

 
2,941

 
—

 
—

 
2,941

 
$
—

 
$
2,941

 
$
31,103

 
$
(1,175
)
 
$
32,869


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
 
 
 
 
 
 
 
 
 
Guarantee
$
—

 
$
—

 
$
5,104

 
$
—

 
$
5,104

 
$
—

 
$
—

 
$
5,104

 
$
—

 
$
5,104

____________________
(1)Represents the impact of netting assets and liabilities with counterparties with which the right of offset exists.
Fair Value, Reconciliation of Level 3 Fair Value Measurements for Commodity Derivatives
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, 2015, 2014 and 2013 (in thousands): 
Level 3 Fair Value Measurements - Commodity Derivative Contracts
2015
 
2014
 
2013
Beginning balance
$
350

 
$
—

 
$
(512
)
Loss on commodity derivative contracts
(350
)
 
—

 
(133
)
Purchases
(1,748
)
 
350

 
—

Settlements paid
—

 
—

 
645

Level 3 commodity derivative contracts at December 31
$
(1,748
)
 
$
350

 
$
—
Fair Value, Reconciliation of Level 3 Fair Value Measurements - Liabilities
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for guarantees during the years ended December 31, 2015 and 2014 (in thousands): 
Level 3 Fair Value Measurements - Guarantee
2015
 
2014
Beginning balance
$
5,104

 
$
—

Issuances
—

 
9,446

Loss on guarantee
—

 
(4,342
)
Settlements
(5,104
)
 
—

Ending balance
$
—

 
$
5,104

The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for long-term debt holder conversion features during the year ended December 31, 2015 (in thousands):
Level 3 Fair Value Measurements - Long-Term Debt Holder Conversion Feature
 
 
Beginning balance
 
$
—

Issuances
 
31,200

Gain on derivative holder conversion feature
 
10,198

Conversions
 
(12,043
)
Ending balance
 
$
29,355
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, 2015 and 2014 were as follows (in thousands):
 
December 31, 2015
 
December 31, 2014
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
8.75% Senior Secured Notes due 2020(1)
$
403,098

 
$
1,301,098

 
$
—

 
$
—

Senior Unsecured Notes
 
 
 
 
 
 
 
8.75% Senior Notes due 2020(2)
$
39,740

 
$
392,666

 
$
303,750

 
$
445,402

7.5% Senior Notes due 2021(3)
$
79,812

 
$
759,711

 
$
752,000

 
$
1,178,486

8.125% Senior Notes due 2022
$
57,749

 
$
527,737

 
$
472,500

 
$
750,000

7.5% Senior Notes due 2023(4)
$
58,799

 
$
541,572

 
$
519,750

 
$
821,548

Convertible Senior Unsecured Notes
 
 
 
 
 
 
 
8.125% Convertible Senior Notes due 2022(5)
$
44,199

 
$
82,294

 
$
—

 
$
—

7.5% Convertible Senior Notes due 2023(6)
$
15,125

 
$
26,428

 
$
—

 
$
—

___________________
(1)
Carrying value includes mandatory prepayment feature liabilities with fair value of $2,941 and is net of $29,842 discount at December 31, 2015.
(2)
Carrying value is net of $3,269 and $4,598 discount at December 31, 2015 and 2014, respectively.
(3)
Carrying value includes a premium of $1,944 and $3,486 at December 31, 2015 and 2014, respectively.
(4)
Carrying value is net of $1,989 and $3,452 discount at December 31, 2015 and 2014, respectively.
(5)
Carrying value includes holder conversion feature liabilities with fair value of $21,874 and is net of $180,751 discount at December 31, 2015.
(6)
Carrying value includes holder conversion feature liabilities with fair value of $7,481 and is net of $59,549 discount at December 31, 2015.