Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Of Financial Instruments

Schedule of Fair Value, Derivative Assets and Liabilities

	Level 1		Level 2		Level 3		Total
March 31, 2013
Assets
Commodity swaps	$	-	$	1,141	$	14,102		$	15,243
Commodity options		-		7,735		4,712			12,447
Total assets		-		8,876		18,814			27,690
Liabilities
Commodity swaps		-		(7,156)		(2,309)			(9,465)
Total liabilities		-		(7,156)		(2,309)			(9,465)
Total derivatives	$	–	$	1,720	$	16,505		$	18,225
December 31, 2012
Assets
Commodity swaps	$	-	$	2,007	$	17,573		$	19,580
Commodity options		-		7,322		6,269			13,591
Total assets		-		9,329		23,842			33,171
Liabilities
Commodity swaps		-		(1,393)		(759)			(2,152)
Total liabilities		-		(1,393)		(759)			(2,152)
Total derivatives	$	–	$	7,936	$	23,083		$	31,019

Schedule of Change in Fair Value of Level 3 Derivative Instruments

	NGL Fixed Price Swaps			NGL Put Options			Total
	Gallons	Amount		Gallons	Amount		Amount
Balance – December 31, 2012	87,066	$	16,814	38,556	$	6,269	$	23,083
New contracts(1)	39,312		–	1,260		88		88
Cash settlements from unrealized gain (loss)(2)(3)	(14,490)		(3,888)	(7,308)		2,044		(1,844)
Net change in unrealized gain (loss)(2)	-		(1,133)	-		(1,290)		(2,423)
Deferred option premium recognition(3)	-		-	-		(2,399)		(2,399)
Balance – March 31, 2013	111,888	$	11,793	32,508	$	4,712	$	16,505
(1)Swaps are entered into with no value on the date of trade.  Options include premiums paid, which are included in the value of the derivatives on the date of trade.
(2)Included within derivative loss, net on the Partnership's consolidated statements of operations.
(3)Includes option premium cost reclassified from unrealized gain (loss) to realized gain (loss) at time of option expiration.

Schedule of Unobservable Inputs used in Fair Value Measurement

	Gallons	Third Party Quotes(1)		Adjustments(2)		Total Amount
As of March 31, 2013
Propane swaps	92,736	$	9,906	$	(319)	$	9,587
Isobutane swaps	630		48		78		126
Normal butane swaps	5,040		233		134		367
Natural gasoline swaps	13,482		3,978		(2,265)		1,713
Total NGL swaps – March 31, 2013	111,888	$	14,165	$	(2,372)	$	11,793
As of December 31, 2012
Propane swaps	69,678	$	16,302	$	(552)	$	15,750
Isobutane swaps	1,134		(219)		187		(32)
Normal butane swaps	6,174		(909)		242		(667)
Natural gasoline swaps	10,080		3,247		(1,484)		1,763
Total NGL swaps – December 31, 2012	87,066	$	18,421	$	(1,607)	$	16,814
(1)Based upon the difference between the quoted market price provided by the third party and the fixed price of the swap.
(2)    Product and location basis differentials calculated through the use of a regression model, which compares the difference between the settlement prices for the products and locations quoted by the third party and the settlement prices for the actual products and locations underlying the derivatives, using a three year historical period.

Schedule of Regression Coefficients utilized in Unobservable Input Adjustments

	Level 3 NGL Swap Fair		Adjustment based upon Regression Coefficient
	Value Adjustments		Lower 95%	Upper 95%	Average
As of March 31, 2013:
Propane	$	(319)	0.8969	0.9069	0.9019
Isobutane		78	1.1274	1.1366	1.1320
Normal butane		134	1.0384	1.0430	1.0407
Natural gasoline		(2,265)	0.9063	0.9251	0.9157
Total Level 3 adjustments – March 31, 2013	$	(2,372)
As of December 31, 2012:
Propane	$	(552)	0.9019	0.9122	0.9071
Isobutane		187	1.1285	1.1376	1.1331
Normal butane		242	1.0370	1.0416	1.0393
Natural gasoline		(1,484)	0.8988	0.9169	0.9078
Total Level 3 adjustments – December 31, 2012	$	(1,607)

Schedule of Change in Fair Value of NGL Linefill

	NGL Linefill
	Gallons	Amount
Balance – December 31, 2012	9,148	$	7,783
Net change in NGL linefill valuation(1)	-		(32)
Balance – March 31, 2013	9,148	$	7,751
(1)Included within natural gas and liquid sales on the Partnership's consolidated statements of operations.