Fair Value

6 Months Ended

Jun. 30, 2012

Fair Value [Abstract]

Fair Value

11. 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. 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 change in value of 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 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 7 - Derivative Financial Instruments for further disclosures regarding these contracts.
• Forward-starting interest rate swap agreements. Fair value was determined based on an assumed exchange, at the end of each period, in an orderly transaction with a market participant in the market in which the financial instrument is traded, adjusted for the effect of counterparty credit risk. We calculated the exchange value using present value techniques on estimated future cash flows based on forward interest rate curves.
• Debt. The fair value of our publicly traded notes was based on the prices of those notes at December 31, 2011 and June 30, 2012. The carrying amount of borrowings, if any, under our revolving credit facility approximates fair value due to the variable rates of that instrument.

     The following table reflects the carrying amounts and fair values of our financial instruments as of December 31, 2011 and June 30, 2012 (in thousands):

		December 31, 2011						June 30, 2012
		Carrying			Fair			Carrying			Fair
Assets (Liabilities)		Amount			Value			Amount			Value
Cash and cash equivalents	$	209,620		$	209,620		$	233,716		$	233,716
Energy commodity derivatives deposits (current assets)	$	26,917		$	26,917		$	8,239		$	8,239
Energy commodity derivatives deposits (current liabilities)
	$	—		$	—		$	(17,196	)	$	(17,196	)
Long-term receivables	$	2,534		$	2,510		$	3,097		$	3,065
Energy commodity derivatives contracts (current assets)	$	4,914		$	4,914		$	13,878		$	13,878
Forward-starting interest rate swap agreements
(noncurrent)	$	—		$	—		$	1,008		$	1,008
Energy commodity derivatives contracts (noncurrent
liabilities)	$	(6,457	)	$	(6,457	)	$	(2,008	)	$	(2,008	)
Debt	$	(2,151,775	)	$	(2,389,700	)	$	(2,148,432	)	$	(2,426,955	)

Fair Value Measurements

     The following tables summarize the recurring fair value measurements of our long-term receivables, NYMEX commodity contracts, forward-starting interest rate swap agreements and debt as of December 31, 2011 and June 30, 2012, based on the three levels established by ASC 820-10-50; Fair Value Measurements and Disclosures—Overall—Disclosure (in thousands):

					Fair Value Measurements as of
					December 31, 2011 using:
					Quoted Prices in			Significant
					Active Markets			Other		Significant
					for Identical			Observable		Unobservable
					Assets			Inputs		Inputs
Assets (Liabilities)		Total			(Level 1)			(Level 2)		(Level 3)
Long-term receivables	$	2,510		$	—		$	—	$	2,510
Energy commodity derivatives contracts (current assets)	$	4,914		$	4,914		$	—	$	—
Energy commodity derivatives contracts (noncurrent
liabilities)	$	(6,457	)	$	(6,457	)	$	—	$	—
Debt	$	(2,389,700	)	$	(2,389,700	)	$	—	$	—

					Fair Value Measurements as of
							June 30, 2012 using:
					Quoted Prices in			Significant
					Active Markets			Other		Significant
					for Identical			Observable		Unobservable
					Assets			Inputs		Inputs
Assets (Liabilities)		Total			(Level 1)			(Level 2)		(Level 3)
Long-term receivables	$	3,065		$	—		$	—	$	3,065
Energy commodity derivatives contracts (current assets)	$	13,878		$	13,878		$	—	$	—
Forward-starting interest rate swap agreements
(noncurrent)	$	1,008		$	—		$	1,008	$	—
Energy commodity derivatives contracts (noncurrent
liabilities)	$	(2,008	)	$	(2,008	)	$	—	$	—
Debt	$	(2,426,955	)	$	(2,426,955	)	$	—	$	—