Fair Value Measurement

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurement

FAIR VALUE MEASUREMENT:

The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis:

	Fair Value as of		Fair Value Measurements at June 30, 2013 Using Fair Value Hierarchy
	June 30, 2013		Level 1		Level 2		Level 3
Assets:
Commodity derivatives	$	1	$	—	$	1	$	—
Total	$	1	$	—	$	1	$	—
Liabilities:
Commodity derivatives	$	5	$	—	$	5	$	—
Interest rate swaps	49		—		49		—
Total	$	54	$	—	$	54	$	—

The Company’s Level 2 instruments primarily include natural gas price swaps and interest rate swap derivatives that are valued using pricing models based on an income approach that discounts future cash flows to a present value amount.  The significant pricing model inputs for natural gas price swaps include published NYMEX forward index prices for delivery of natural gas at Henry Hub, Permian Basin and Waha.  The significant pricing model inputs for interest rate swaps include published rates for U.S. Dollar LIBOR interest rate swaps.  The pricing models also adjust for nonperformance risk associated with the counterparty or Company, as applicable, through the use of credit risk adjusted discount rates based on published default rates.  The Company did not have any Level 3 fair value measurements at June 30, 2013. During the period ended June 30, 2013, no transfers were made between any levels within the fair value hierarchy.