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Fair Value Measurements
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

8.  FAIR VALUE MEASUREMENTS:

As required by FASB ASC Topic 820, Fair Value Measurements and Disclosures (“FASB ASC 820”), the Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three level hierarchy for measuring fair value. Fair value measurements are classified and disclosed in one of the following categories:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 include non-exchange traded derivatives such as over-the-counter forwards and swaps.

Level 3: Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.

The valuation assumptions the Company has used to measure the fair value of its commodity derivatives were observable inputs based on market data obtained from independent sources and are considered Level 2 inputs (quoted prices for similar assets, liabilities (adjusted) and market-corroborated inputs).

Level 1Level 2Level 3Total
Assets:
Current derivative asset$-$ 1,415$-$ 1,415
Liabilities:
Current derivative liability$-$ 27,291$-$ 27,291

In consideration of counterparty credit risk, the Company assessed the possibility of whether each counterparty to the derivative would default by failing to make any contractually required payments as scheduled in the derivative instrument in determining the fair value. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions.

Fair Value of Long-Lived Assets

The Company recognized impairments of $92.5 million during the year ended December 31, 2012 related to the decline in fair value as defined in FASB ASC 820 as a result of forecast decreased throughput volumes on its gathering facilities in Pennsylvania due to the decline in commodity prices. These facilities are included in Property, Plant and Equipment in the Consolidated Balance Sheets and were impaired to a fair value of $82.6 million based on the income approach, estimated using Level 3 fair value inputs.

Fair Value of Financial Instruments

The estimated fair value of financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount of floating-rate debt approximates fair value because the interest rates are variable and reflective of market rates. We use available market data and valuation methodologies to estimate the fair value of our fixed rate debt. The inputs utilized to estimate the fair value of the Company’s fixed rate debt are considered Level 2 fair value inputs. This disclosure is presented in accordance with FASB ASC Topic 825, Financial Instruments, and does not impact our financial position, results of operations or cash flows.

December 31, 2013December 31, 2012
CarryingEstimatedCarryingEstimated
AmountFair ValueAmountFair Value
Long-Term Debt:
5.45% Notes due 2015, issued 2008$ 100,000$ 105,913$ 100,000$ 107,801
7.31% Notes due 2016, issued 2009 62,000 70,228 62,000 72,046
4.98% Notes due 2017, issued 2010 116,000 126,342 116,000 127,109
5.92% Notes due 2018, issued 2008 200,000 226,127 200,000 230,062
5.75% Notes due 2018, issued 2013 450,000 466,946 - -
7.77% Notes due 2019, issued 2009 173,000 211,877 173,000 219,045
5.50% Notes due 2020, issued 2010 207,000 229,068 207,000 234,552
4.51% Notes due 2020, issued 2010 315,000 323,732 315,000 331,329
5.60% Notes due 2022, issued 2010 87,000 95,736 87,000 98,526
4.66% Notes due 2022, issued 2010 35,000 35,494 35,000 36,361
5.85% Notes due 2025, issued 2010 90,000 99,142 90,000 102,096
4.91% Notes due 2025, issued 2010 175,000 175,744 175,000 179,677
Credit Facility 460,000 460,000 277,000 277,000
$ 2,470,000$ 2,626,349$ 1,837,000$ 2,015,604