Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2017 (in thousands):


	Fair Value Measurements at September 30, 2017
	Active Markets for		Observable
	Identical Assets		Inputs		Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Fair Value
Derivative assets (net)	$	—	$	5,263	$	—	$	5,263
Total net assets	$	—	$	5,263	$	—	$	5,263

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
	(Level 1)		(Level 2)		(Level 3)		Fair Value
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 September 30, 2017 (in thousands):


	Fair Value Measurements at September 30, 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 nine months ended September 30, 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


	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	$	—