Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2014 and 2013:



	Fair Value Measurements Using:
	Quoted Prices in Active Markets		Significant Other Observable Inputs			Significant Unobservable Inputs
In thousands	(Level 1)		(Level 2)			(Level 3)			Total
December 31, 2014
Assets
Oil and natural gas derivative contracts – current	$	—	$	283,238		$	157,121		$	440,359
Oil and natural gas derivative contracts – long-term	—		34,862			31,325			66,187
Total Assets	$	—	$	318,100		$	188,446		$	506,546

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 years ended December 31, 2014 and 2013:



	Year Ended December 31,
In thousands	2014		2013
Fair value of Level 3 instruments, beginning of year	$	6,709	$	—
Fair value adjustments on commodity derivatives	181,737		6,709
Fair value of Level 3 instruments, end of year	$	188,446	$	6,709

The amount of total gains for the period included in earnings attributable to the change in unrealized gains relating to assets still held at the reporting date	$	181,737	$	6,709

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 12/31/2014 (in thousands)		Valuation Technique	Unobservable Input	Range
Oil derivative contracts	$	188,446	Discounted cash flow / Black-Scholes	Volatility of Light Louisiana Sweet for settlement periods beginning after January 1, 2015	29.3% – 44.2%

- 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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