Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Carrying Amount and Estimated Fair Values of Financial Instruments


	September 30,				December 31,
	2012				2011
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
	(in thousands)

Cash and cash equivalents	$	18,560	$	18,560	$	15,627	$	15,627
Restricted cash	$	127,074	$	127,074	$	–	$	–
Unsecured revolving credit facility	$	26,500	$	26,500	$	671,500	$	671,500
Senior notes	$	1,670,042	$	1,878,983	$	671,800	$	773,578
Derivative instruments	$	347,753	$	347,753	$	704,830	$	704,830

Summary Assets and Liabilities Measured at Fair Value on Recurring Basis


	September 30, 2012

	Fair Value Measurements Using:
	Quoted Prices		Significant
	in Active		Other		Significant
	Markets		Observable Inputs		Unobservable Inputs		Assets (Liabilities)
	(Level 1)		(Level 2)		(Level 3)		at Fair Value
Derivative assets	$	–	$	302,610	$	47,199	$	349,809
Derivative liabilities		–		(1,818)		(238)		(2,056)
Total	$	–	$	300,792	$	46,961	$	347,753

	December 31, 2011

	Fair Value Measurements Using:
	Quoted Prices		Significant
	in Active		Other		Significant
	Markets		Observable Inputs		Unobservable Inputs		Assets (Liabilities)
	(Level 1)		(Level 2)		(Level 3)		at Fair Value
Derivative assets	$	–	$	534,560	$	182,783	$	717,343
Derivative liabilities		–		(11,849)		(664)		(12,513)
Total	$	–	$	522,711	$	182,119	$	704,830

Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3), Reconciliation


	For the three months ended				For the nine months ended
	September 30,				September 30,
	2012		2011		2012		2011
	(in thousands)

Balance at beginning of period	$	106,222	$	89,395	$	182,119	$	97,677
Total gains or losses (realized/unrealized):
Included in earnings		53,465		11,102		177,201		38,694
Included in other comprehensive income		(57,614)		35,223		(135,055)		23,913
Purchases, issuances, and settlements:
Purchases		–		–		–		–
Issuances		–		–		–		–
Settlements		(55,112)		(13,895)		(177,304)		(38,601)
Transfers into/out of Level 3		–		–		–		142
Balance at end of period	$	46,961	$	121,825	$	46,961	$	121,825
Change in unrealized gains included in earnings relating to derivatives still held as of September 30	$	(1,647)	$	(2,793)	$	(103)	$	93

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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