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Fair Value
9 Months Ended
Sep. 30, 2011
Fair Value [Abstract] 
Fair Value
13.
Fair Value
Fair Value of Financial Instruments
We used the following methods and assumptions in estimating our fair value disclosure for financial instruments:
•
Cash and cash equivalents and restricted cash. The carrying amounts reported on our consolidated balance sheets approximate fair value due to the short-term maturity or variable rates of these instruments.
•
Energy commodity derivatives deposits. This asset (liability) represents short-term deposits we paid (held) associated with our energy commodity derivatives contracts. The carrying amount reported on our consolidated balance sheets approximates fair value as the deposits paid (held) change daily in relation to the associated contracts.
•
Long-term receivables. Fair value was determined by estimating the present value of future cash flows using a risk-free rate of interest.
•
Energy commodity derivatives contracts. These include NYMEX and butane price swap purchase agreements related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets and are valued based on quoted prices in active markets. See Note 9 - Derivative Financial Instruments for further disclosures regarding these contracts.
•
Debt. The fair value of our publicly traded notes, excluding the value of interest rate swaps qualifying as fair value hedges, was based on the prices of those notes at December 31, 2010 and September 30, 2011. The carrying amount of borrowings under our revolving credit facility approximates fair value due to the variable rates of that instrument. See Note 8 - Debt for further disclosures of our debt instruments.
 
The following table reflects the carrying amounts and fair values of our financial instruments as of December 31, 2010 and September 30, 2011 (in thousands):
Assets (Liabilities)
December 31, 2010
 
September 30, 2011
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Cash and cash equivalents
$
7,483

 
$
7,483

 
$
198,065

 
$
198,065

Restricted cash
$
14,379

 
$
14,379

 
$
—

 
$
—

Energy commodity derivatives deposits
$
22,302

 
$
22,302

 
$
(7,059
)
 
$
(7,059
)
Long-term receivables
$
1,167

 
$
1,161

 
$
3,862

 
$
3,830

Energy commodity derivatives contracts (current)
$
(11,790
)
 
$
(11,790
)
 
$
36,205

 
$
36,205

Energy commodity derivatives contracts (noncurrent)
$
(4,920
)
 
$
(4,920
)
 
$
1,030

 
$
1,030

Debt
$
(1,906,148
)
 
$
(2,048,895
)
 
$
(2,153,437
)
 
$
(2,401,380
)
Fair Value Measurements
The following tables summarize the recurring fair value measurements of our NYMEX commodity contracts as of December 31, 2010 and September 30, 2011, based on the three levels established by ASC 820-10-50; Fair Value Measurements and Disclosures—Overall—Disclosure (in thousands):
Assets (Liabilities)
 
 
Fair Value Measurements as of
December 31, 2010 using:
Total
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Energy commodity derivatives contracts (current)
$
(11,790
)
 
$
(11,790
)
 
$
—

 
$
—

Energy commodity derivatives contracts (noncurrent)
$
(4,920
)
 
$
(4,920
)
 
$
—

 
$
—

Assets (Liabilities)
 
 
Fair Value Measurements as of
September 30, 2011 using:
Total
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Energy commodity derivatives contracts (current)
$
36,205

 
$
36,205

 
$
—

 
$
—

Energy commodity derivatives contracts (noncurrent)
$
1,030

 
$
1,030

 
$
—

 
$
—