Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair value hierarchy of financial assets and liabilities

The following table sets forth, by level within the fair value hierarchy, our financial assets and liabilities that were accounted for at fair value on a recurring basis as of the periods indicated:



	Fair Value Measurements Using:
In thousands	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
September 30, 2014
Assets:
Oil and natural gas derivative contracts – current	$	—	$	18,609		$	11,253		$	29,862
Oil and natural gas derivative contracts – long-term	—		15,422			11,042			26,464
Total Assets	$	—	$	34,031		$	22,295		$	56,326

Liabilities:
Oil and natural gas derivative contracts – current	$	—	$	(534	)	$	—		$	(534	)
Oil and natural gas derivative contracts – long-term	—		—			—			—
Total Liabilities	$	—	$	(534	)	$	—		$	(534	)

December 31, 2013
Assets:
Oil and natural gas derivative contracts – current	$	—	$	5		$	—		$	5
Oil and natural gas derivative contracts – long-term	—		3,034			6,908			9,942
Total Assets	$	—	$	3,039		$	6,908		$	9,947

Liabilities:
Oil and natural gas derivative contracts – current	$	—	$	(53,822	)	$	—		$	(53,822	)
Oil and natural gas derivative contracts – long-term	—		(3,214		)	(199		)	(3,413		)
Total Liabilities	$	—	$	(57,036	)	$	(199	)	$	(57,235	)

Changes in fair value of Level 3 assets and liabilities

The following table summarizes the changes in the fair value of our Level 3 assets and liabilities for the three and nine months ended September 30, 2014 and 2013:



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
In thousands	2014			2013			2014		2013
Fair value of Level 3 instruments, beginning of period	$	(39,116	)	$	3,096		$	6,709	$	—
Fair value adjustments on commodity derivatives	61,411			(2,950		)	15,586		146
Fair value of Level 3 instruments, end of period	$	22,295		$	146		$	22,295	$	146

The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets or liabilities still held at the reporting date	$	61,411		$	(2,950	)	$	15,586	$	146

Quantitative valuation techniques for assets and liabilities measured on a recurring basis (Level 3)

The following table details fair value inputs related to implied volatilities utilized in the valuation of our Level 3 oil derivative contracts:



	Fair Value at 9/30/2014 (in thousands)		Valuation Technique	Unobservable Input	Range
Oil derivative contracts	$	22,295	Discounted cash flow / Black-Scholes	Volatility of Light Louisiana Sweet index for settlement periods beginning after January 1, 2015	14.7% – 23.8%

- 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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