Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

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 June 30, 2014 using:
		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Carrying Value as of June 30, 2014
Trading securities held in the deferred compensation plans	$	68,129	$	—		$	—	$	68,129
Derivatives –swaps		—		(54,665	)		—		(54,665	)
–collars		—		(13,849	)		—		(13,849	)
–basis swaps		—		6,319			2,353		8,672

	Fair Value Measurements at December 31, 2013 using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Carrying Value as of December 31, 2013
Trading securities held in the deferred compensation plans	$	67,766	$	—		$	—	$	67,766
Derivatives –swaps		—		(18,812	)		—		(18,812	)
–collars		—		2,314			—		2,314
–basis swaps		—		3,381			548		3,929

Value of Assets Measured at Fair Value on Non Recurring Basis

The following table presents the value of these assets measured at fair value on a non-recurring basis at the time impairment was recorded (in thousands):

	Three Months Ended June 30,								Six Months Ended June 30,
	2014				2013				2014				2013
		Fair Value		Impairment		Fair Value		Impairment		Fair Value		Impairment		Fair Value		Impairment
Natural gas and oil properties	$	18,086	$	24,991	$	¾	$	¾	$	18,086	$	24,991	$	¾	$	¾
Surface property	$	¾	$	¾	$	5,550	$	741	$	¾	$	¾	$	5,550	$	741

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 June 30, 2014 and December 31, 2013 (in thousands):

	June 30, 2014						December 31, 2013
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets:
Commodity swaps, collars and basis swaps	$	10,223		$	10,223		$	13,654		$	13,654
Marketable securities(a)		68,129			68,129			67,766			67,766
(Liabilities):
Commodity swaps, collars and basis swaps		(70,066	)		(70,066	)		(26,223	)		(26,223	)
Bank credit facility(b)		(480,000	)		(480,000	)		(500,000	)		(500,000	)
Deferred compensation plan(c)		(276,868	)		(276,868	)		(271,738	)		(271,738	)
8.00% senior subordinated notes due 2019(b)		¾			¾			(290,516	)		(319,500	)
6.75% senior subordinated notes due 2020(b)		(500,000	)		(539,375	)		(500,000	)		(541,250	)
5.75% senior subordinated notes due 2021(b)		(500,000	)		(540,000	)		(500,000	)		(530,625	)
5.00% senior subordinated notes due 2022(b)		(600,000	)		(636,000	)		(600,000	)		(588,750	)
5.00% senior subordinated notes due 2023(b)		(750,000	)		(798,750	)		(750,000	)		(732,188	)

^(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 inputs. 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 input.