FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

Forest’s assets and liabilities measured at fair value on a recurring basis at June 30, 2014 and December 31, 2013 are set forth in the table below.

	June 30, 2014		December 31, 2013
	Using Significant Other Observable Inputs (Level 2)(1)
	(In Thousands)
Assets:
Derivative instruments(2):
Commodity	$	758	$	5,592
Liabilities:
Derivative instruments(2):
Commodity	$	15,443	$	4,542

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(1) The authoritative accounting guidance regarding fair value measurements for assets and liabilities measured at fair value establishes a three-tier fair value hierarchy, which prioritizes the inputs used to measure fair value. These tiers consist of: Level 1, defined as unadjusted quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for use when relevant observable inputs are not available. There were no transfers between levels of the fair value hierarchy during the three and six months ended June 30, 2014. Forest’s policy is to recognize transfers between levels of the fair value hierarchy as of the beginning of the reporting period in which the event or change in circumstances caused the transfer.

(2) Forest’s currently outstanding derivative assets and liabilities include commodity derivatives (see Note 8 for more information on these instruments). Forest utilizes present value techniques and option-pricing models for valuing its derivatives. Inputs to these valuation techniques include published forward prices, volatilities, and credit risk considerations, including the incorporation of published interest rates and credit spreads. All of the significant inputs are observable, either directly or indirectly; therefore, Forest’s derivative instruments are included within the Level 2 fair value hierarchy.

Schedule of fair values and carrying amounts of financial instruments

The fair values and carrying amounts of Forest’s financial instruments are summarized below as of the dates indicated.

	June 30, 2014
					Fair Value Measurements
	Carrying Amount		Total Fair Value(1)		Using Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Using Significant Other Observable Inputs (Level 2)
	(In Thousands)
Assets:
Derivative instruments	$	758	$	758	$	—	$	758
Liabilities:
Derivative instruments	15,443		15,443		—		15,443
7¼% senior notes due 2019	578,076		572,499		572,499		—
7½% senior notes due 2020	222,087		221,116		221,116		—

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(1) Forest used various assumptions and methods in estimating the fair values of its financial instruments. The fair values of the senior notes were estimated based on quoted market prices.The methods used to determine the fair values of the derivative instruments are discussed above. See also Note 8 for more information on the derivative instruments.

	December 31, 2013
					Fair Value Measurements
	Carrying Amount		Total Fair Value(1)		Using Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Using Significant Other Observable Inputs (Level 2)
	(In Thousands)
Assets:
Derivative instruments	$	5,592	$	5,592	$	—	$	5,592
Liabilities:
Derivative instruments	4,542		4,542		—		4,542
7¼% senior notes due 2019	578,092		568,147		568,147		—
7½% senior notes due 2020	222,087		224,030		224,030		—

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(1) Forest used various assumptions and methods in estimating the fair values of its financial instruments. The fair values of the senior notes were estimated based on quoted market prices. The methods used to determine the fair values of the derivative instruments are discussed above. See also Note 8 for more information on the derivative instruments.