FAIR VALUE MEASUREMENTS

Derivative Financial Instruments

The accounting guidance for fair value measurements requires certain disclosures about assets and liabilities measured at fair value. A hierarchical framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. We record transfers, if necessary, between levels at the end of the reporting period for all of our financial instruments. For additional information see Notes 1, 3 and 4 included in our 2012 Annual Report on Form 10-K filed with the SEC.

Transfers into Level 3, if any, occur when significant inputs used to value the derivative instruments become less observable such as a significant decrease in the frequency and volume in which the instrument is traded, negatively impacting the availability of observable pricing inputs. Transfers out of Level 3, if any, occur when the significant inputs become more observable such as the time between the valuation date and the delivery date of a transaction becomes shorter, positively impacting the availability of observable pricing inputs.

Valuation Methodologies for Derivatives

Oil and Gas Segment:


•	The commodity option contracts for our Oil and Gas segment are valued under the market approach and can include calls and puts. Fair value was derived using quoted prices from third party brokers for similar instruments as to quantity and timing. The prices are then validated through third party sources and therefore support Level 2 disclosure.


•	The commodity basis swaps for our Oil and Gas segment are valued under the market approach using the instrument’s current forward price strip hedged for the same quantity and date and discounted based on the three-month LIBOR. We utilize observable inputs which support Level 2 disclosure.

Utilities Segments:

•

The commodity contracts for our Utilities Segments, valued using the market approach, include exchange-traded futures, options and basis swaps (Level 2) and OTC basis swaps (Level 3) for natural gas contracts. For Level 2 assets and liabilities, fair value was derived using broker quotes validated by the Chicago Mercantile Exchange pricing for similar instruments. For Level 3 assets and liabilities, fair value was derived using average price quotes from the OTC contract broker and an independent third party market participant because these instruments are not traded on an exchange.

Corporate Activities:

•

The interest rate swaps are valued using the market approach. We establish fair value by obtaining price quotes directly from the counterparty which are based on the floating three-month LIBOR curve for the term of the contract. The fair value obtained from the counterparty is then validated by utilizing a nationally recognized service that obtains observable inputs to compute fair value for the same instrument. In addition, the fair value for the interest rate swap derivatives includes a CVA component. The CVA considers the fair value of the interest rate swap and the probability of default based on the life of the contract. For the probability of a default component, we utilize observable inputs supporting Level 2 disclosure by using our credit default spread, if available, or a generic credit default spread curve that takes into account our credit ratings.

Recurring Fair Value Measurements

There have been no significant transfers between Level 1 and Level 2 derivative balances. The following tables set forth by level within the fair value hierarchy our gross assets and gross liabilities and related offsetting as permitted by GAAP that were accounted for at fair value on a recurring basis (in thousands):



	As of June 30, 2013
	Level 1		Level 2		Level 3		Cash Collateral and Counterparty Netting			Total
Assets:
Commodity derivatives — Oil and Gas
Options -- Oil	$	—	$	45	$	—	$	(6	)	$	39
Basis Swaps -- Oil	—		1,109		—		(538		)	571
Options -- Gas	—		—		—		—			—
Basis Swaps -- Gas	—		1,882		—		(1,589		)	293
Commodity derivatives — Utilities	—		1,378		—		(1,378		)	—
Cash equivalents ^(a)	30,633		—		—		—			30,633
Total	$	30,633	$	4,414	$	—	$	(3,511	)	$	31,536

Liabilities:
Commodity derivatives — Oil and Gas
Options -- Oil	$	—	$	181	$	—	$	(98	)	$	83
Basis Swaps -- Oil	—		350		—		(303		)	47
Options -- Gas	—		—		—		—			—
Basis Swaps -- Gas	—		445		—		(169		)	276
Commodity derivatives — Utilities	—		8,581		—		(8,581		)	—
Interest rate swaps	—		87,208		—		(5,960		)	81,248
Total	$	—	$	96,765	$	—	$	(15,111	)	$	81,654

__________


(a)	Level 1 assets and liabilities are described in Note 12.



	As of Dec. 31, 2012
	Level 1		Level 2		Level 3			Cash Collateral and Counterparty Netting			Total
Assets:
Commodity derivatives — Oil and Gas
Options -- Oil	$	—	$	378	$	—		$	—		$	378
Basis Swaps -- Oil	—		1,325		—			—			1,325
Options -- Gas	—		—		—			—			—
Basis Swaps -- Gas	—		2,000		—			—			2,000
Commodity derivatives —Utilities	—		—		43		^(b)	—			43
Cash equivalents ^(a)	15,462		—		—			—			15,462
Total	$	15,462	$	3,703	$	43		$	—		$	19,208

Liabilities:
Commodity derivatives — Oil and Gas
Options -- Oil	$	—	$	1,131	$	—		$	(336	)	$	795
Basis Swaps -- Oil	—		502		—			(450		)	52
Options -- Gas	—		—		—			—			—
Basis Swaps -- Gas	—		1,127		—			(620		)	507
Commodity derivatives — Utilities	—		10,162		—			(10,162		)	—
Interest rate swaps	—		118,088		—			(5,960		)	112,128
Total	$	—	$	131,010	$	—		$	(17,528	)	$	113,482

__________


(a)	Level 1 assets and liabilities are described in Note 12.

(b)

The significant unobservable inputs used in the fair value measurement of the long-term OTC contracts are based on the average of price quotes from an independent third party market participant and the OTC contract broker. The unobservable inputs are long-term natural gas prices. Significant changes to these inputs along with the contract term would impact the derivative asset/liability and regulatory asset/liability, but will not impact the results of operations until the contract is settled under the original terms of the contract. The contracts will be classified as Level 2 once settlement is within 60 months of maturity and quoted market prices from a market exchange are available.



	As of June 30, 2012
	Level 1		Level 2			Level 3			Cash Collateral and Counterparty Netting			Total
Assets:
Commodity derivatives — Oil and Gas
Options -- Oil	$	—	$	1,014		$	—		$	—		$	1,014
Basis Swaps -- Oil	—		2,785			—			—			2,785
Options -- Gas	—		—			—			—			—
Basis Swaps -- Gas	—		4,641			—			—			4,641
Commodity derivatives — Utilities	—		(6,024		)	24		^(b)	15,925			9,925
Cash equivalents ^(a)	44,882		—			—			—			44,882
Total	$	44,882	$	2,416		$	24		$	15,925		$	63,247

Liabilities:
Commodity derivatives — Oil and Gas
Options -- Oil	$	—	$	901		$	—		$	457		$	1,358
Basis Swaps -- Oil	—		(76		)	—			156			80
Options -- Gas	—		—			—			—			—
Basis Swaps -- Gas	—		230			—			553			783
Commodity derivatives — Utilities	—		6,453			—			—			6,453
Interest rate swaps	—		125,239			—			(6,160		)	119,079
Total	$	—	$	132,747		$	—		$	(4,994	)	$	127,753

__________


(a)	Level 1 assets and liabilities are described in Note 12.

(b)

Fair Value Measures By Balance Sheet Classification

As required by accounting standards for derivatives and hedges, fair values within the following tables are presented on a gross basis and reflect the netting of asset and liability positions permitted in accordance with accounting standards for offsetting and under terms of our master netting agreements, however, the amounts do not include net cash collateral on deposit in margin accounts at June 30, 2013, Dec. 31, 2012, and June 30, 2012, to collateralize certain financial instruments, which are included in Derivative assets and/or Derivative liabilities. Therefore, the balances are not indicative of either our actual credit exposure or net economic exposure. Additionally, the amounts below will not agree with the amounts presented on our Condensed Consolidated Balance Sheets, nor will they correspond to the fair value measurements presented in Note 10.

The following tables present the fair value and balance sheet classification of our derivative instruments (in thousands):



As of June 30, 2013
	Balance Sheet Location	Fair Value of Asset Derivatives		Fair Value of Liability Derivatives
Derivatives designated as hedges:
Commodity derivatives	Derivative assets — current	$	1,225	$	—
Commodity derivatives	Derivative assets — non-current	1,651		—
Commodity derivatives	Derivative liabilities — current	—		889
Commodity derivatives	Derivative liabilities — non-current	—		41
Interest rate swaps	Derivative liabilities — current	—		6,965
Interest rate swaps	Derivative liabilities — non-current	—		12,384
Total derivatives designated as hedges		$	2,876	$	20,279

Derivatives not designated as hedges:
Commodity derivatives	Derivative assets — current	$	160	$	—
Commodity derivatives	Derivative assets — non-current	—		—
Commodity derivatives	Derivative liabilities — current	—		1,884
Commodity derivatives	Derivative liabilities — non-current	—		5,365
Interest rate swaps	Derivative liabilities — current	—		67,859
Interest rate swaps	Derivative liabilities — non-current	—		—
Total derivatives not designated as hedges		$	160	$	75,108



As of Dec. 31, 2012
	Balance Sheet Location	Fair Value of Asset Derivatives		Fair Value of Liability Derivatives
Derivatives designated as hedges:
Commodity derivatives	Derivative assets — current	$	2,874	$	—
Commodity derivatives	Derivative assets — non-current	510		—
Commodity derivatives	Derivative liabilities — current	—		1,993
Commodity derivatives	Derivative liabilities — non-current	—		821
Interest rate swaps	Derivative liabilities — current	—		7,038
Interest rate swaps	Derivative liabilities — non-current	—		16,941
Total derivatives designated as hedges		$	3,384	$	26,793

Derivatives not designated as hedges:
Commodity derivatives	Derivative assets — current	$	362	$	—
Commodity derivatives	Derivative assets — non-current	—		—
Commodity derivatives	Derivative liabilities — current	1,180		4,957
Commodity derivatives	Derivative liabilities — non-current	406		5,153
Interest rate swaps	Derivative liabilities — current	—		94,108
Interest rate swaps	Derivative liabilities — non-current	—		—
Total derivatives not designated as hedges		$	1,948	$	104,218



As of June 30, 2012
	Balance Sheet Location	Fair Value of Asset Derivatives		Fair Value of Liability Derivatives
Derivatives designated as hedges:
Commodity derivatives	Derivative assets — current	$	6,869	$	—
Commodity derivatives	Derivative assets — non-current	1,571		—
Commodity derivatives	Derivative liabilities — current	—		1,304
Commodity derivatives	Derivative liabilities — non-current	—		2,082
Interest rate swaps	Derivative liabilities — current	—		6,766
Interest rate swaps	Derivative liabilities — non-current	—		18,976
Total derivatives designated as hedges		$	8,440	$	29,128

Derivatives not designated as hedges:
Commodity derivatives	Derivative assets — current	$	—	$	6,199
Commodity derivatives	Derivative assets — non-current	—		(199		)
Commodity derivatives	Derivative liabilities — current	—		—
Commodity derivatives	Derivative liabilities — non-current	—		6,453
Interest rate swaps	Derivative liabilities — current	—		78,001
Interest rate swaps	Derivative liabilities — non-current	—		21,496
Total derivatives not designated as hedges		$	—	$	111,950

Derivatives Offsetting

It is our policy to offset in our Condensed Consolidated Balance Sheets contracts which provide for legally enforceable netting of our accounts receivable and payable and derivative activities.

As required by accounting standards for derivatives and hedges, fair values within the following tables reconcile the gross basis to the net, reflect the netting of asset and liability positions permitted in accordance with accounting standards for offsetting and under the terms of our master netting agreements. Additionally, the amounts reflect cash collateral on deposit in margin accounts at June 30, 2013, Dec. 31, 2012, and June 30, 2012, to collateralize certain financial instruments, which are included in Derivative assets and/or Derivative liabilities. Therefore, the gross balances are not indicative of either our actual credit exposure or net economic exposure.

Offsetting of derivative assets and derivative liabilities on our Condensed Consolidated Balance Sheets was as follows:



	As of June 30, 2013
Derivative Assets	Gross Amounts of Derivative Assets		Gross Amounts Offset on Condensed Consolidated Balance Sheets			Cash Collateral included in Derivatives			Net Amount of Total Derivative Assets on Condensed Consolidated Balance Sheets
	(in thousands)
Subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	$	538	$	—		$	(538	)	$	—
Oil and Gas - Crude Options	6		—			(6		)	—
Oil and Gas - Natural Gas Basis Swaps	1,589		—			(1,589		)	—
Utilities	1,378		(1,378		)	—			—
Total derivative assets subject to a master netting agreement or similar arrangement	3,511		(1,378		)	(2,133		)	—

Not subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	571		—			—			571
Oil and Gas - Crude Options	39		—			—			39
Oil and Gas - Natural Gas Basis Swaps	293		—			—			293
Utilities	—		—			—			—
Total derivative assets not subject to a master netting agreement or similar arrangement	903		—			—			903

Total derivative assets	$	4,414	$	(1,378	)	$	(2,133	)	$	903



	As of June 30, 2013
Derivative Liabilities	Gross Amounts of Derivative Liabilities		Gross Amounts Offset on Condensed Consolidated Balance Sheets			Cash Collateral included in Derivatives			Net Amount of Total Derivative Liabilities on Condensed Consolidated Balance Sheets
	(in thousands)
Subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	$	303	$	—		$	(303	)	$	—
Oil and Gas - Crude Options	98		—			(98		)	—
Oil and Gas - Natural Gas Basis Swaps	169		—			(169		)	—
Utilities	8,581		(1,378		)	(7,203		)	—
Interest Rate Swaps	—		—			—			—
Total derivative liabilities subject to a master netting agreement or similar arrangement	9,151		(1,378		)	(7,773		)	—

Not subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	47		—			—			47
Oil and Gas - Crude Options	82		—			—			82
Oil and Gas - Natural Gas Basis Swaps	277		—			—			277
Utilities	—		—			—			—
Interest Rate Swaps	87,208		—			(5,960		)	81,248
Total derivative liabilities not subject to a master netting agreement or similar arrangement	87,614		—			(5,960		)	81,654

Total derivative liabilities	$	96,765	$	(1,378	)	$	(13,733	)	$	81,654



	As of Dec. 31, 2012
Derivative Assets	Gross Amounts of Derivative Assets		Gross Amounts Offset on Condensed Consolidated Balance Sheets			Cash Collateral included in Derivatives		Net Amount of Total Derivative Assets on Condensed Consolidated Balance Sheets
	(in thousands)
Subject to master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	$	76	$	—		$	—	$	76
Oil and Gas - Crude Options	93		—			—		93
Oil and Gas - Natural Gas Basis Swaps	172		—			—		172
Utilities	1,629		(1,586		)	—		43
Total derivative assets subject to a master netting agreement or similar arrangement	1,970		(1,586		)	—		384

Not subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	1,249		—			—		1,249
Oil and Gas - Crude Options	285		—			—		285
Oil and Gas - Natural Gas Basis Swaps	1,828		—			—		1,828
Utilities	—		—			—		—
Total derivative assets not subject to a master netting agreement or similar arrangement	3,362		—			—		3,362

Total derivative assets	$	5,332	$	(1,586	)	$	—	$	3,746



	As of Dec. 31, 2012
Derivative Liabilities	Gross Amounts of Derivative Liabilities		Gross Amounts Offset on Condensed Consolidated Balance Sheets			Cash Collateral included in Derivatives			Net Amount of Total Derivative Liabilities on Condensed Consolidated Balance Sheets
	(in thousands)
Subject to a master netting agreement or similar arrangement
Commodity derivative:
Oil and Gas - Crude Basis Swaps	$	449	$	—		$	(449	)	$	—
Oil and Gas - Crude Options	337		—			(337		)	—
Oil and Gas - Natural Gas Basis Swaps	620		—			(620		)	—
Utilities	10,162		(1,586		)	(8,576		)	—
Interest Rate Swaps	—		—			—			—
Total derivative liabilities subject to a master netting agreement or similar arrangement	11,568		(1,586		)	(9,982		)	—

Not subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	52		—			—			52
Oil and Gas - Crude Options	795		—			—			795
Oil and Gas - Natural Gas Basis Swaps	507		—			—			507
Utilities	—		—			—			—
Interest Rate Swaps	118,088		—			(5,960		)	112,128
Total derivative liabilities not subject to a master netting agreement or similar arrangement	119,442		—			(5,960		)	113,482

Total derivative liabilities	$	131,010	$	(1,586	)	$	(15,942	)	$	113,482



	As of June 30, 2012
Derivative Assets	Gross Amounts of Derivative Assets			Gross Amounts Offset on Condensed Consolidated Balance Sheets		Cash Collateral included in Derivatives		Net Amount of Total Derivative Assets on Condensed Consolidated Balance Sheets
	(in thousands)
Subject to master netting agreements or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	$	—		$	—	$	—	$	—
Oil and Gas - Crude Options	343			—		—		343
Oil and Gas - Natural Gas Basis Swaps	—			—		—		—
Utilities	(6,000		)	—		15,925		9,925
Total derivative assets subject to a master netting agreement or similar arrangement	(5,657		)	—		15,925		10,268

Not subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	2,785			—		—		2,785
Oil and Gas - Crude Options	671			—		—		671
Oil and Gas - Natural Gas Basis Swaps	4,641			—		—		4,641
Utilities	—			—		—		—
Total derivative assets not subject to a master netting agreement or similar arrangement	8,097			—		—		8,097

Total derivative assets	$	2,440		$	—	$	15,925	$	18,365



	As of June 30, 2012
Derivative Liabilities	Gross Amounts of Derivative Liabilities		Gross Amounts Offset on Condensed Consolidated Balance Sheets		Cash Collateral included in Derivatives			Net Amount of Total Derivative Liabilities on Condensed Consolidated Balance Sheets
	(in thousands)
Subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	$	156	$	—	$	(156	)	$	—
Oil and Gas - Crude Options	457		—		(457		)	—
Oil and Gas - Natural Gas Basis Swaps	553		—		(553		)	—
Utilities	6,453		—		—			6,453
Interest Rate Swaps	—		—		—			—
Total derivative liabilities subject to a master netting agreement or similar arrangement	7,619		—		(1,166		)	6,453

Not subject to a master netting agreement or similar arrangement:
Commodity derivative:
Oil and Gas - Crude Basis Swaps	80		—		—			80
Oil and Gas - Crude Options	1,358		—		—			1,358
Oil and Gas - Natural Gas Basis Swaps	782		—		—			782
Utilities	—		—		—			—
Interest Rate Swaps	125,239		—		(6,160		)	119,079
Total derivative liabilities not subject to a master netting agreement or similar arrangement	127,459		—		(6,160		)	121,299

Total derivative liabilities	$	135,078	$	—	$	(7,326	)	$	127,752

Derivative assets and derivative liabilities and collateral held by counterparty on our Condensed Consolidated Balance Sheets were (in thousands):



		As of June 30, 2013
				Gross Amounts Not Offset on Condensed Consolidated Balance Sheets
Contract Type		Net Amount of Total Derivative Assets		Cash Collateral Received		Net Amount with Counterparty
Asset:
Oil and Gas	Counterparty A	$	—	$	—	$	—
Oil and Gas	Counterparty B	903		—		903
Utilities	Counterparty A	—		—		—
		$	903	$	—	$	903



		As of June 30, 2013
				Gross Amounts Not Offset on Condensed Consolidated Balance Sheets
Contract Type		Net Amount of Total Derivative Liabilities		Cash Collateral Paid			Net Amount with Counterparty
Liabilities
Oil and Gas	Counterparty A	$	—	$	(1,156	)	$	(1,156	)
Oil and Gas	Counterparty B	406		—			406
Utilities	Counterparty A	—		(2,938		)	(2,938		)
Interest Rate Swap	Counterparty D	3,727		—			3,727
Interest Rate Swap	Counterparty E	21,318		—			21,318
Interest Rate Swap	Counterparty F	10,232		—			10,232
Interest Rate Swap	Counterparty G	20,497		—			20,497
Interest Rate Swap	Counterparty H	9,782		—			9,782
Interest Rate Swap	Counterparty I	15,692		—			15,692
		$	81,654	$	(4,094	)	$	77,560



		As of Dec. 31, 2012
				Gross Amounts Not Offset on Condensed Consolidated Balance Sheets
Contract Type		Net Amount of Total Derivative Assets		Cash Collateral Received		Net Amount with Counterparty
Assets:
Oil and Gas	Counterparty A	$	341	$	—	$	341
Oil and Gas	Counterparty B	3,362		—		3,362
Utilities	Counterparty A	43		—		43
		$	3,746	$	—	$	3,746



		As of Dec. 31, 2012
				Gross Amounts Not Offset on Condensed Consolidated Balance Sheets
Contract Type		Net Amount of Total Derivative Liabilities		Cash Collateral Paid			Net Amount with Counterparty
Liabilities:
Oil and Gas	Counterparty A	$	—	$	(1,787	)	$	(1,787	)
Oil and Gas	Counterparty B	1,354		—			1,354
Utilities	Counterparty A	—		(4,354		)	(4,354		)
Interest Rate Swap	Counterparty D	4,588		—			4,588
Interest Rate Swap	Counterparty E	29,245		—			29,245
Interest Rate Swap	Counterparty F	12,721		—			12,721
Interest Rate Swap	Counterparty G	26,520		—			26,520
Interest Rate Swap	Counterparty H	16,809		—			16,809
Interest Rate Swap	Counterparty I	22,245		—			22,245
		$	113,482	$	(6,141	)	$	107,341



		As of June 30, 2012
				Gross Amounts Not Offset on Condensed Consolidated Balance Sheets
Contract Type		Net Amount of Total Derivative Assets		Cash Collateral Received		Net Amount with Counterparty
Assets:
Oil and Gas	Counterparty A	$	343	$	—	$	343
Oil and Gas	Counterparty B	8,097		—		8,097
Utilities	Counterparty A	9,925		—		9,925
		$	18,365	$	—	$	18,365



		As of June 30, 2012
				Gross Amounts Not Offset on Condensed Consolidated Balance Sheets
Contract Type		Net Amount of Total Derivative Liabilities		Cash Collateral Paid			Net Amount with Counterparty
Liabilities:
Oil and Gas	Counterparty A	$	—	$	(318	)	$	(318	)
Oil and Gas	Counterparty B	2,220		—			2,220
Utilities	Counterparty A	6,453		—			6,453
Interest Rate Swap	Counterparty D	4,915		—			4,915
Interest Rate Swap	Counterparty E	31,491		—			31,491
Interest Rate Swap	Counterparty F	13,472		—			13,472
Interest Rate Swap	Counterparty G	27,153		—			27,153
Interest Rate Swap	Counterparty H	24,070		—			24,070
Interest Rate Swap	Counterparty I	17,978		—			17,978
		$	127,752	$	(318	)	$	127,434

A description of our derivative activities is included in Note 10. The following tables present the impact that derivatives had on our Condensed Consolidated Statements of Income (Loss).

Cash Flow Hedges

The impacts of cash flow hedges on our Condensed Consolidated Statements of Income (Loss) were as follows (in thousands):



Three Months Ended June 30, 2013
Derivatives in Cash Flow Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion)		Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	Amount of Reclassified Gain/(Loss) from AOCI into Income (Effective Portion)			Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)	Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)
Interest rate swaps	$	1,067	Interest expense	$	(1,820	)		$	—
Commodity derivatives	4,985		Revenue	(28		)		—
Total	$	6,052		$	(1,848	)		$	—



Three Months Ended June 30, 2012
Derivatives in Cash Flow Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion)			Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	Amount of Reclassified Gain/(Loss) from AOCI into Income (Effective Portion)			Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)	Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)
Interest rate swaps	$	(2,251	)	Interest expense	$	(1,843	)		$	—
Commodity derivatives	2,429			Revenue	2,894				—
Total	$	178			$	1,051			$	—



Six Months Ended June 30, 2013
Derivatives in Cash Flow Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion)		Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	Amount of Reclassified Gain/(Loss) from AOCI into Income (Effective Portion)			Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)	Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)
Interest rate swaps	$	1,048	Interest expense	$	(3,616	)		$	—
Commodity derivatives	2,226		Revenue	1,064				—
Total	$	3,274		$	(2,552	)		$	—



Six Months Ended June 30, 2012
Derivatives in Cash Flow Hedging Relationships	Amount of Gain/(Loss) Recognized in AOCI Derivative (Effective Portion)			Location of Gain/(Loss) Reclassified from AOCI into Income (Effective Portion)	Amount of Reclassified Gain/(Loss) from AOCI into Income (Effective Portion)			Location of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)	Amount of Gain/(Loss) Recognized in Income on Derivative (Ineffective Portion)
Interest rate swaps	$	(3,013	)	Interest expense	$	(3,665	)		$	—
Commodity derivatives	3,712			Revenue	5,903				—
Total	$	699			$	2,238			$	—

Derivatives Not Designated as Hedge Instruments

The impacts of derivative instruments not designated as hedge instruments on our Condensed Consolidated Statements of Income (Loss) were as follows (in thousands):



		Three Months Ended			Six Months Ended
		June 30, 2013			June 30, 2013
Derivatives Not Designated as Hedging Instruments	Location of Gain/(Loss) on Derivatives Recognized in Income	Amount of Gain/(Loss) on Derivatives Recognized in Income			Amount of Gain/(Loss) on Derivatives Recognized in Income
Interest rate swaps - unrealized	Unrealized gain (loss) on interest rate swaps, net	$	18,793		$	26,249
Interest rate swaps - realized	Interest expense	(3,329		)	(6,756		)
		$	15,464		$	19,493



		Three Months Ended			Six Months Ended
		June 30, 2012			June 30, 2012
Derivatives Not Designated as Hedging Instruments	Location of Gain/(Loss) on Derivatives Recognized in Income	Amount of Gain/(Loss) on Derivatives Recognized in Income			Amount of Gain/(Loss) on Derivatives Recognized in Income
Interest rate swaps - unrealized	Unrealized gain (loss) on interest rate swaps, net	$	(15,552	)	$	(3,507	)
Interest rate swaps - realized	Interest expense	(3,242		)	(6,447		)
		$	(18,794	)	$	(9,954	)