Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2013

Fair Value Hierarchy Table for Assets and Liabilities Measured at Fair Value

We use a market approach for our recurring fair value measurements and endeavor to use the best information available.The following tables present the fair value hierarchy table for assets and liabilities measured at fair value, on a recurring basis (in thousands):

		Fair Value Measurements at September30, 2013 using:
		QuotedPrices in Active Markets for IdenticalAssets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Carrying Valueasof September30, 2013
Trading securities held in the deferred compensation plans		$	65,663	$	—		$	—	$	65,663
Derivatives	–swaps		—		(2,320	)		—		(2,320	)
	–collars		—		68,313			—		68,313

		Fair Value Measurements at December31, 2012 using:
		Quoted Prices in Active Markets for IdenticalAssets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Carrying Value as of December31, 2012
Trading securities held in the deferred compensation plans		$	57,776		$	—		$	—		$	57,776
Derivatives	–swaps			—			23,326			—			23,326
	–collars			—			121,014			—			121,014
	–basis swaps			—			993			—			993

Value of Assets Measured at Fair Value on Non Recurring Basis

We review our long-lived assets to be held and used for impairment including proved natural gas and oil properties, whenever events or circumstances indicate the carrying value of those assets may not be recoverable. In third quarter 2013, we recognized an impairment expense of $7.0 million on certain of our oil and gas properties in South Texas due to reduction in reserves due to a failed well recompletion. Their fair value was measured using an income approach based upon internal estimates of future production levels, drilling and operating costs as well as discount rates, which are Level 3 inputs.  In second quarter 2013, we evaluated certain surface property we own which included consideration of the potential sale of the assets and recognized an impairment charge of $741,000. The following table presents the fair value of these assets at September 30, 2013 measured at fair value on a non-recurring basis (in thousands):

	Three Months Ended September 30,								Nine Months Ended September 30,
	2013				2012				2013					2012
		Fair Value		Impairment		Fair Value		Impairment		Fair Value		Impairment			Fair Value		Impairment
Natural gas and oil properties	$	500	$	7,012	$	—	$	—	$	500	$	7,012	$		—	$	—
Surface property	$	—	$	—	$	6,269	$	1,281	$	—	$	741	$		6,269	$	1,281

Carrying Amounts and Fair Values of Financial Instruments

The following table presents the carrying amounts and the fair values of our financial instruments as of September 30, 2013 and December31, 2012 (in thousands):

	September30,2013						December31,2012
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Commodity swaps and collars	$	74,067		$	74,067		$	153,267		$	153,267
Marketable securities(a)		65,663			65,663			57,776			57,776
Liabilities:
Commodity swaps and collars		(8,074	)		(8,074	)		(7,934	)		(7,934	)
Bank credit facility(b)		(427,000	)		(427,000	)		(739,000	)		(739,000	)
Deferred compensation plan(c)		(207,404	)		(204,404	)		(187,604	)		(187,604	)
7.25% senior subordinated notes due 2018(b)		—			—			(250,000	)		(262,500	)
8.00% senior subordinated notes due 2019(b)		(290,170	)		(322,125	)		(289,185	)		(332,250	)
6.75% senior subordinated notes due 2020(b)		(500,000	)		(538,750	)		(500,000	)		(542,500	)
5.75% senior subordinated notes due 2021(b)		(500,000	)		(525,000	)		(500,000	)		(535,000	)
5.00% senior subordinated notes due 2022(b)		(600,000	)		(580,500	)		(600,000	)		(627,000	)
5.00% senior subordinated notes due 2023(b)		(750,000	)		(720,000	)		—			—

(a)Marketable securities, which are held in our deferred compensation plans, are actively traded on major exchanges. Refer to Note 13 for additional information.

(b)The book value of our bank debt approximates fair value because of its floating rate structure. The fair value of our senior subordinated notes is based on end of period market quotes which are Level 2 market values. Refer to Note 8 for additional information.

(c)The fair value of our deferred compensation plan is updated on the closing price on the balance sheet date which is a Level 1 market value.