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Fair value measurements (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair value hierarchy for financial instruments measured at fair value on a recurring basis
The fair value hierarchy for our financial assets and liabilities is shown by the following table:
 
 
As of December 31, 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)
 
$
6,576

 
$
(22,895
)
 
$
(16,319
)
 
$
29,370

 
$
(4,718
)
 
$
24,652

Significant unobservable inputs (Level 3)
 
235

 
(1
)
 
234

 
252

 
(222
)
 
30

Netting adjustments (1)
 
(5,864
)
 
5,864

 
—

 
(3,398
)
 
3,398

 
—

 
 
$
947

 
$
(17,032
)
 
$
(16,085
)
 
$
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:
 
 
For the Year Ended December 31,
Net derivative assets (liabilities)
 
2019
 
2018
Beginning balance
 
$
30

 
$
(295
)
Realized and unrealized gains (losses) included in derivative (losses) gains
 
1,009

 
(1,101
)
Settlements (received) paid
 
(805
)
 
1,426

Ending balance
 
$
234

 
$
30

Gains relating to instruments still held at the reporting date included in derivative (losses) gains for the period
 
$
234

 
$
30
Inflation and discount rate assumptions
The table below discloses the inflation and discount rate assumptions for the periods presented:
 
 
Year ended December 31,
 
 
2019
 
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
%
 
11.94
%
__________________________________________
(1) The inflation rate is measured as a single rate on an annual basis.
Fair value of other financial instruments
The carrying value and estimated fair value of our debt at December 31, 2019 and 2018 were as follows:
 
 
 
December 31, 2019
 
December 31, 2018
Level 2
 
Carrying
value (1)
 
Estimated
fair value
 
Carrying
value (1)
 
Estimated
fair value
Credit facility
 
$
130,000

 
$
130,000

 
$
—

 
$
—

Other secured debt (2)
 
371

 
371

 
8,942

 
8,942

8.75% Senior Notes due 2023
 
300,000

 
133,050

 
300,000

 
213,618

 ____________________________________________________________
(1)
The carrying value excludes deductions for debt issuance costs and discounts.
(2)
The balance on December 31, 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.
 
 
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
December 31, 2019
 
 

 
 

 
 

 
 

 
 

 
 

Derivative assets
 
$
6,811

 
$
(5,864
)
 
$
947

 
$
—

 
$
(947
)
 
$
—

Derivative liabilities
 
(22,896
)
 
5,864

 
(17,032
)
 
—

 
947

 
(16,085
)
 
 
$
(16,085
)
 
$
—

 
$
(16,085
)
 
$
—

 
$
—

 
$
(16,085
)
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 related 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 facilities that is available to offset out net derivative assets due from counterparties that are lenders under our credit facilities.
Offsetting liabilities
The following table summarizes our derivative assets and liabilities, which are offset in the consolidated balance sheets under our master netting agreements.
 
 
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
December 31, 2019
 
 

 
 

 
 

 
 

 
 

 
 

Derivative assets
 
$
6,811

 
$
(5,864
)
 
$
947

 
$
—

 
$
(947
)
 
$
—

Derivative liabilities
 
(22,896
)
 
5,864

 
(17,032
)
 
—

 
947

 
(16,085
)
 
 
$
(16,085
)
 
$
—

 
$
(16,085
)
 
$
—

 
$
—

 
$
(16,085
)
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 related 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 facilities that is available to offset out net derivative assets due from counterparties that are lenders under our credit facilities.
Percentages of total commodity sales excluding effects of hedging activities
Commodity sales to our top three purchasers accounted for the following percentages of our total commodity sales, excluding the effects of hedging activities, for the years ended December 31:
 
 
Successor
 
 
2019
 
2018
 
2017
Coffeyville Resources LLC
 
*

 
*

 
20.9
%
Phillips 66 Company
 
21.4
%
 
26.0
%
 
14.6
%
Sunoco, Inc.
 
15.1
%
 
7.2
%
 
*

Alta Mesa Resources, Inc.
 
*

 
6.7
%
 
*

Tom Stack LLC.
 
10.0
%
 
*

 
*

Valero Energy Corporation
 
*

 
*

 
13.3
%
 
____________________________________________________________
*    Not disclosed as not a top three purchaser during the fiscal year.