Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements

Fair Value Measurements
6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
Fair Value Measurements

6.  Fair Value Measurements

We measure the fair value of our open derivative financial instruments by applying the income approach, using models with inputs that are classified within Level 2 of the valuation hierarchy.  The inputs used for the fair value measurement of our derivative financial instruments are the exercise price, the expiration date, the settlement date, notional quantities, the implied volatility, the discount curve with spreads and published commodity futures prices.  The fair values of our 8.50% Senior Notes and 9.00% Term Loan were based on quoted prices, although the market is not an active market; therefore, the fair value is classified within Level 2.  The carrying amount of debt under our revolving bank credit facility approximates fair value because the interest rates are variable and reflective of market rates.

The following table presents the fair value of our derivatives and long-term debt, all of which are reported as liabilities on the Condensed Consolidated Balance Sheets (in thousands):





June 30, 2015



December 31, 2014



Level 2








8.50% Senior Notes due 2019 (1)

Level 2









9.00% Term Loan due 2020 (1)

Level 2








Revolving bank credit facility (1)

Level 2












The long-term debt items are reported on the Condensed Consolidated Balance Sheets at their carrying value as described in Note 5.