Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 (in thousands):


	Fair Value Measurements at March 31, 2017
	Active Markets for		Observable
	Identical Assets		Inputs		Unobservable Inputs		Fair Value at
	(Level 1)		(Level 2)		(Level 3)		March 31, 2017
Derivative assets (net)	$	—	$	10,915	$	—	$	10,915
Total net assets	$	—	$	10,915	$	—	$	10,915

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		Fair Value at
	(Level 1)		(Level 2)		(Level 3)		December 31, 2016
Derivative assets (net)	$	—	$	6,436	$	—	$	6,436
Total net assets	$	—	$	6,436	$	—	$	6,436

Non-Recurring Fair Value Measurements Of Assets And Liabilities

The following table summarizes the non-recurring fair value measurements of our assets as of March 31, 2017 (in thousands):


	Fair Value Measurements at March 31, 2017
	Active Markets for		Observable
	Identical Assets		Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)
Impairment(a)	$	—	$	—	$	7,277
Total net assets	$	—	$	—	$	7,277

(a)

During the quarter ended March 31, 2017, we recorded a non-cash impairment charge of $4.7 million to impair our producing oil and natural gas properties acquired in the Production Acquisition. The carrying values of the impaired proved properties were reduced to a fair value of $7.3 million, estimated using inputs characteristic of a Level 3 fair value measurement

The following table summarizes the non-recurring fair value measurements of our assets 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)		—		—		24,184
Total net assets	$	—	$	—	$	34,917

(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 $24.2 million. See Note 3. “Acquisitions and Divestitures” for fair value allocation.

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 for the year ended December 31, 2016 (in thousands):


	Year ended
	December 31, 2016
Beginning balance	$	(193,077)
Gain on embedded derivative		47,794
Transfer to mezzanine equity		145,283
Ending balance	$	—

Loss included in earnings related to derivatives still held as of December 31, 2016	$	—