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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2016
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 September 30, 2016 and December 31, 2015 are included in the table below.
Unobservable Input
 
Range
 
Weighted Average
 
Fair Value
 
 
(Price per Mcf)
 
(In thousands)
September 30, 2016
 
 
 
 
 
 
 
 
Natural gas basis differential forward curve
 
$
(0.13
)
–
$
(0.25
)
 
$
(0.20
)
 
$
(170
)
December 31, 2015
 
 
 
 
 
 
 
 
Natural gas basis differential forward curve
 
$
(0.06
)
–
$
(0.28
)
 
$
(0.22
)
 
$
(1,748
)
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 options at December 31, 2015 are included in the table below.
Unobservable Input
 
Range
 
Weighted Average
 
Fair Value
 
 
 
 
(In thousands)
Debt conversion feature hazard rate
 
114.0
%
–
135.2
%
 
119.2
%
 
$
29,355
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):

September 30, 2016
 
Fair Value Measurements
 
Netting(1)
 
Assets/Liabilities at Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
—

 
$
11,429

 
$
—

 
$
(1,167
)
 
$
10,262

Investments
7,263

 
—

 
—

 
—

 
7,263

 
$
7,263

 
$
11,429

 
$
—

 
$
(1,167
)
 
$
17,525

Liabilities
 
 
 
 
 
 
 
 
 
Commodity derivative contracts
$
—

 
$
4,914

 
$
170

 
$
(1,167
)
 
$
3,917

 
$
—

 
$
4,914

 
$
170

 
$
(1,167
)
 
$
3,917


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

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

____________________
(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 Commodity Derivatives
The table below sets forth a reconciliation of the Company’s Level 3 fair value measurements for commodity derivative contracts during the three and nine-month periods ended September 30, 2016 and 2015 (in thousands): 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
Beginning balance
 
$
(356
)
 
$
(2,207
)
 
$
(1,748
)
 
$
350

Purchases
 
—

 
—

 
—

 
(2,894
)
Gain (loss) on commodity derivative contracts
 
186

 
(1,229
)
 
1,578

 
(892
)
Ending balance
 
$
(170
)
 
$
(3,436
)
 
$
(170
)
 
$
(3,436
)
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 debt holder conversion features during the three and nine-month periods ended September 30, 2015 and the nine-month period ended September 30, 2016 (in thousands):
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2015
 
2016
 
2015
Beginning balance
 
$
—

 
$
29,355

 
$
—

Issuances
 
16,994

 
—

 
16,994

Gain on derivative holder conversion feature
 
(10,146
)
 
(880
)
 
(10,146
)
Conversions
 
(1,374
)
 
(21,194
)
 
(1,374
)
Write off of derivative holder conversion feature to reorganization items
 
—

 
(7,281
)
 
—

Ending balance
 
$
5,474

 
$
—

 
$
5,474
Senior Notes Carrying Amount and Fair Value Table
The estimated fair values and carrying values of the Company’s senior notes at September 30, 2016 and December 31, 2015 were as follows (in thousands):
 
September 30, 2016 (1)
 
December 31, 2015
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
8.75% Senior Secured Notes
$
487,207

 
$
1,328,000

 
$
403,098

 
$
1,265,814

Senior Unsecured Notes
 
 
 
 
 
 
 
8.75% Senior Notes due 2020
$
28,579

 
$
395,935

 
$
39,740

 
$
389,232

7.5% Senior Notes due 2021
$
47,019

 
$
757,767

 
$
79,812

 
$
751,087

8.125% Senior Notes due 2022
$
30,047

 
$
527,737

 
$
57,749

 
$
518,693

7.5% Senior Notes due 2023
$
34,589

 
$
543,561

 
$
58,799

 
$
534,869

Convertible Senior Unsecured Notes
 
 
 
 
 
 
 
8.125% Convertible Senior Notes due 2022
$
2,339

 
$
40,694

 
$
44,199

 
$
78,290

7.5% Convertible Senior Notes due 2023
$
28

 
$
46,900

 
$
15,125

 
$
24,393


____________________
(1)
Includes write-off of discounts and derivatives associated with the 8.75% Senior Secured Notes and the Convertible Senior Unsecured Notes, discounts associated with the 8.75% Senior Notes due 2020 and the 7.5% Senior Notes due 2023, and premium associated with the 7.5% Senior Notes due 2021 due to the Company's Chapter 11 proceedings.