Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

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
March 31, 2015
Assets:
Oil and natural gas derivative contracts – current	$	—	$	270,126	$	151,576	$	421,702
Oil and natural gas derivative contracts – long-term	—		6,017		13,439		19,456
Total Assets	$	—	$	276,143	$	165,015	$	441,158

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

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 months ended March 31, 2015 and 2014:



	Three Months Ended
	March 31,
In thousands	2015			2014
Fair value of Level 3 instruments, beginning of period	$	188,446		$	6,709
Fair value adjustments on commodity derivatives	25,085			(12,806		)
Receipt on settlements of commodity derivatives	(48,516		)	—
Fair value of Level 3 instruments, end of period	$	165,015		$	(6,097	)

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	$	23,099		$	(12,806	)

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 3/31/2015 (in thousands)		Valuation Technique	Unobservable Input	Range
Oil derivative contracts	$	165,015	Discounted cash flow / Black-Scholes	Volatility of Light Louisiana Sweet for settlement periods beginning after March 31, 2015	25.8% – 38.2%

- 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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