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Fair value measurements (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair value hierarchy for our financial assets and liabilities
The fair value hierarchy for our financial assets and liabilities is shown by the following table:
 
 
As of September 30, 2019
 
As of December 31, 2018
 
 
Derivative
assets
 
Derivative
liabilities
 
Net assets
(liabilities)
 
Derivative
assets
 
Derivative
liabilities
 
Net assets
(liabilities)
Significant other observable inputs (Level 2)
 
$
14,006

 
$
(6,635
)
 
$
7,371

 
$
29,370

 
$
(4,718
)
 
$
24,652

Significant unobservable inputs (Level 3)
 
2,094

 
—

 
2,094

 
252

 
(222
)
 
30

Netting adjustments (1)
 
(3,543
)
 
3,543

 
—

 
(3,398
)
 
3,398

 
—

 
 
$
12,557

 
$
(3,092
)
 
9,465

 
$
26,224

 
$
(1,542
)
 
$
24,682

________________________________
(1)
Amounts represent the impact of master netting agreements that allow us to net settle positive and negative positions with the same counterparty. Positive and negative positions with counterparties are netted on the balance sheet only to the extent that they relate to the same current versus noncurrent classification.
Level 3 rollforward
Changes in the fair value of our derivative instruments, classified as Level 3 in the fair value hierarchy, were as follows for the periods presented:
 
 
Nine months ended September 30,
Net derivative assets (liabilities)
 
2019
 
2018
Beginning balance
 
$
30

 
$
(295
)
Realized and unrealized gains (losses) included in derivative losses
 
2,371

 
(1,069
)
Settlements (received) paid
 
(307
)
 
959

Ending balance
 
$
2,094

 
$
(405
)
Gains (losses) relating to instruments still held at the reporting date included in derivative gains (losses) for the period
 
$
2,094

 
$
(342
)
Inflation and discount rate assumptions
The table below discloses the inflation and discount rate assumptions for the periods presented:

 
 
Nine months ended September 30, 2019
 
Nine months ended September 30, 2018
 
 
Low
 
High
 
Low
 
High
Inflation rate (1)
 
2.25
%
 
2.25
%
 
2.26
%
 
2.26
%
Credit-adjusted risk-free discount rate
 
12.35
%
 
21.79
%
 
6.92
%
 
8.77
%
________________________________
(1)
The inflation rate is measured as a single rate on an annual basis.
Carrying value and estimated fair value of debts
The carrying value and estimated fair value of our debt were as follows:
 
 
September 30, 2019
 
December 31, 2018
Level 2
 
Carrying
value (1)
 
Estimated
fair value
 
Carrying
value (1)
 
Estimated
fair value
8.75% Senior Notes due 2023
 
$
300,000

 
$
124,389

 
$
300,000

 
$
213,618

Credit facility
 
110,000

 
110,000

 
—

 
—

Other secured debt (2)
 
433

 
433

 
8,942

 
8,942

________________________________
(1)
The carrying value excludes deductions for debt issuance costs.
(2)
The balance on September 30, 2019, consisted of only equipment installment notes while the balance on December 31, 2018, consisted of real estate and equipment installment notes.
Offsetting assets
The following table summarizes our derivative assets and liabilities which are offset in the consolidated balance sheets under our master netting agreements. It also reflects the amounts outstanding under our credit facilities that are available to offset our net derivative assets due from counterparties that are lenders under our credit facilities. 
 
 
Offset in the consolidated balance sheets
 
Gross amounts not offset in the consolidated balance sheets
 
 
Gross assets
(liabilities)
 
Offsetting assets
(liabilities)
 
Net assets
(liabilities)
 
Derivatives (1)
 
Amounts
outstanding
under credit
facilities (2)
 
Net amount
September 30, 2019
 
 

 
 

 
 

 
 

 
 

 
 

Derivative assets
 
$
16,100

 
$
(3,543
)
 
$
12,557

 
$
(1,757
)
 
$
(10,800
)
 
$
—

Derivative liabilities
 
(6,635
)
 
3,543

 
(3,092
)
 
1,757

 
—

 
(1,335
)
 
 
$
9,465

 
$
—

 
$
9,465

 
$
—

 
$
(10,800
)
 
$
(1,335
)
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 
$
29,622

 
$
(3,398
)
 
$
26,224

 
$
(1,542
)
 
$
—

 
$
24,682

Derivative liabilities
 
(4,940
)
 
3,398

 
(1,542
)
 
1,542

 
—

 
—

 
 
$
24,682

 
$
—

 
$
24,682

 
$
—

 
$
—

 
$
24,682

________________________________
(1)
Since positive and negative positions with a counterparty are netted on the balance sheet only to the extent that they relate to the same current versus noncurrent classification, these represent remaining amounts that could have been offset under our master netting agreements.
(2)
The amount outstanding under our credit facility that is available to offset our net derivative assets due from counterparties that are lenders under our credit facility.
Offsetting liabilities
The following table summarizes our derivative assets and liabilities which are offset in the consolidated balance sheets under our master netting agreements. It also reflects the amounts outstanding under our credit facilities that are available to offset our net derivative assets due from counterparties that are lenders under our credit facilities. 
 
 
Offset in the consolidated balance sheets
 
Gross amounts not offset in the consolidated balance sheets
 
 
Gross assets
(liabilities)
 
Offsetting assets
(liabilities)
 
Net assets
(liabilities)
 
Derivatives (1)
 
Amounts
outstanding
under credit
facilities (2)
 
Net amount
September 30, 2019
 
 

 
 

 
 

 
 

 
 

 
 

Derivative assets
 
$
16,100

 
$
(3,543
)
 
$
12,557

 
$
(1,757
)
 
$
(10,800
)
 
$
—

Derivative liabilities
 
(6,635
)
 
3,543

 
(3,092
)
 
1,757

 
—

 
(1,335
)
 
 
$
9,465

 
$
—

 
$
9,465

 
$
—

 
$
(10,800
)
 
$
(1,335
)
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Derivative assets
 
$
29,622

 
$
(3,398
)
 
$
26,224

 
$
(1,542
)
 
$
—

 
$
24,682

Derivative liabilities
 
(4,940
)
 
3,398

 
(1,542
)
 
1,542

 
—

 
—

 
 
$
24,682

 
$
—

 
$
24,682

 
$
—

 
$
—

 
$
24,682

________________________________
(1)
Since positive and negative positions with a counterparty are netted on the balance sheet only to the extent that they relate to the same current versus noncurrent classification, these represent remaining amounts that could have been offset under our master netting agreements.
(2)
The amount outstanding under our credit facility that is available to offset our net derivative assets due from counterparties that are lenders under our credit facility.