Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2017

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:

	Successor								Predecessor
	September 30, 2017								December 31, 2016
	Derivative assets			Derivative liabilities			Net assets (liabilities)		Derivative assets			Derivative liabilities			Net assets (liabilities)
Significant other observable inputs (Level 2)	$	14,027		$	(363	)	$	13,664	$	184		$	(13,455	)	$	(13,271	)
Significant unobservable inputs (Level 3)		456			—			456		—			(98	)		(98	)
Netting adjustments (1)		(363	)		363			—		(184	)		184			—
	$	14,120		$	—		$	14,120	$	—		$	(13,369	)	$	(13,369	)

(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:

	Successor			Predecessor
	Period from			Period from
	March 22, 2017			January 1, 2017			Nine months
	through			through			ended
Net derivative assets (liabilities)	September 30, 2017			March 21, 2017			September 30, 2016
Beginning balance	$	715		$	(98	)	$	123,068
Realized and unrealized (losses) gains included in derivative (losses) gains		(259	)		813			(9,216	)
Settlements received		—			—			(113,852	)
Ending balance	$	456		$	715		$	—
(Losses) gains relating to instruments still held at the reporting date included in derivative (losses) gains for the period	$	(259	)	$	813		$	—

Fair value of other financial instruments

The carrying value and estimated fair value of our debt were as follows:

	Successor				Predecessor
	September 30, 2017				December 31, 2016
Level 2	Carrying value (1)		Estimated fair value		Carrying value (1)		Estimated fair value
New Revolver	$	153,000	$	153,000	$	—	$	—
New Term Loan		149,192		149,192		—		—
Other secured debt		9,338		9,338		10,029		10,029
9.875% Senior Notes due 2020		—		—		298,000		268,200
8.25% Senior Notes due 2021		—		—		384,045		344,680
7.625% Senior Notes due 2022		—		—		525,910		470,689

(1)	The carrying value excludes deductions for debt issuance costs and discounts.

Offsetting Assets and 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			Net amount
Successor - September 30, 2017
Derivative assets	$	14,483		$	(363	)	$	14,120		$	—	$	(14,120	)	$	—
Derivative liabilities		(363	)		363			—			—		—			—
	$	14,120		$	—		$	14,120		$	—	$	(14,120	)	$	—


Predecessor - December 31, 2016
Derivative assets	$	184		$	(184	)	$	—		$	—	$	—		$	—
Derivative liabilities		(13,553	)		184			(13,369	)		—		—			(13,369	)
	$	(13,369	)	$	—		$	(13,369	)	$	—	$	—		$	(13,369	)

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(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.