Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Of Assets And Liabilities On A Recurring Basis

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 (in thousands):


	Fair Value Measurements at December 31, 2016
	Active Markets for		Observable
	Identical Assets		Inputs		Unobservable Inputs		Netting Cash and		Fair Value at
	(Level 1)		(Level 2)		(Level 3)		Collateral		December 31, 2016
Derivative assets	$	—	$	6,436	$	—	$	—	$	6,436
Embedded derivative		—		—		—		—		—
Total net assets	$	—	$	6,436	$	—	$	—	$	6,436

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2015 (in thousands):


	Fair Value Measurements at December 31, 2015
	Active Markets for		Observable
	Identical Assets		Inputs		Unobservable Inputs		Netting Cash and		Fair Value at
	(Level 1)		(Level 2)		(Level 3)		Collateral		December 31, 2015
Derivative assets	$	—	$	31,018	$	—	$	—	$	31,018
Embedded derivative		—		—		(193,077)		—		(193,077)
Total net assets	$	—	$	31,018	$	(193,077)	$	—	$	(162,059)

Reconciliation Of Changes In Fair Value Of Embedded Derivative Classified As Level 3

The following table sets forth a reconciliation of changes in the fair value of the Partnership's embedded derivative classified as Level 3 in the fair value hierarchy (in thousands):


	Significant Unobservable Inputs (Level 3)
	December 31,
	2016		2015
Beginning balance	$	(193,077)	$	—
Initial fair value of embedded derivative - bifurcated from mezzanine equity		—		(183,095)
Gain (loss) on embedded derivative		47,794		(9,982)
Transfer to mezzanine equity		145,283		—
Ending balance	$	—	$	(193,077)

Loss included in earnings related to derivatives still held as of December 31, 2016 and 2015	$	—	$	(9,982)

Non-Recurring Fair Value Measurements Of Assets And Liabilities

The following table summarizes the non-recurring fair value measurements of our assets and liabilities as of December 31, 2016 (in thousands):


	Fair Value Measurements at December 31, 2016
	Active Markets for		Observable
	Identical Assets		Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)
Impairment(a)	$	—	$	—	$	10,733
Acquisitions(b)		—		—		25,622
Total net assets	$	—	$	—	$	36,355

(a)

During the year ended December 31, 2016, we recorded a non-cash impairment charge of $7.6 million to impair our producing oil and natural gas properties in Texas and Louisiana (acquired prior to the Eagle Ford Acquisition) and in Oklahoma. The carrying values of the impaired proved properties were reduced to a fair value of $10.7 million, estimated using inputs characteristic of a Level 3 fair value measurement.

(b)

During the year ended December 31, 2016, we acquired oil and natural gas properties with a fair value of $25.6 million. See Note 3. “Acquisitions and Divestitures” for fair value allocation.

The following table summarizes the non-recurring fair value measurements of our assets and liabilities as of December 31, 2015 (in thousands):


	Fair Value Measurements at December 31, 2015
	Active Markets for		Observable
	Identical Assets		Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)
Impairment(a)	$	—	$	—	$	80,977
Acquisitions(b)		—		—		429,218
Total net assets	$	—	$	—	$	510,195

(a)

For the year ended December 31, 2015, we recorded a non-cash impairment charge of $123.9 million to impair the value of our Cherokee Basin properties, Woodford Shale properties and our Texas and Louisiana properties (acquired prior to the Eagle Ford Acquisition). The carrying values of the impaired proved properties were reduced to a fair value of $81.0 million, estimated using inputs characteristic of a Level 3 fair value measurement.

(b)

During the year ended December 31, 2015, we acquired oil and natural gas properties and midstream assets with a combined fair value of $429.2 million. See Note 3. “Acquisitions and Divestitures” for fair value allocation.