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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]  
Breakdown by Fair Value Hierarchy Category for Financial Instruments Included in Consolidated Balance Sheets

The following table shows a breakdown by fair value hierarchy category for (1) financial instruments measurements included on our Consolidated Balance Sheets at fair value and (2) supplemental fair value disclosures for other financial instruments:

 

 

 

March 31, 2019

 

 

 

Carrying

 

 

Fair Value

 

 

 

Value

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Instruments Recorded on Our

   Consolidated Balance Sheets at Fair Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets from commodity derivative contracts (1)

 

$

97.2

 

 

$

97.2

 

 

$

—

 

 

$

93.3

 

 

$

3.9

 

Liabilities from commodity derivative contracts (1)

 

 

50.9

 

 

 

50.9

 

 

 

—

 

 

 

50.5

 

 

 

0.4

 

TPL contingent consideration (2)

 

 

2.4

 

 

 

2.4

 

 

 

—

 

 

 

—

 

 

 

2.4

 

Financial Instruments Recorded on Our

   Consolidated Balance Sheets at Carrying Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

124.9

 

 

 

124.9

 

 

 

—

 

 

 

—

 

 

 

—

 

TRC Revolver

 

 

435.0

 

 

 

435.0

 

 

 

—

 

 

 

435.0

 

 

 

—

 

TRP Revolver

 

 

670.0

 

 

 

670.0

 

 

 

—

 

 

 

670.0

 

 

 

—

 

Partnership's Senior unsecured notes

 

 

6,028.5

 

 

 

6,268.9

 

 

 

—

 

 

 

6,268.9

 

 

 

—

 

Partnership's accounts receivable securitization facility

 

 

307.6

 

 

 

307.6

 

 

 

—

 

 

 

307.6

 

 

 

—

 

 

 

 

December 31, 2018

 

 

 

Carrying

 

 

Fair Value

 

 

 

Value

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Instruments Recorded on Our

   Consolidated Balance Sheets at Fair Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets from commodity derivative contracts (1)

 

$

144.4

 

 

$

144.4

 

 

$

—

 

 

$

137.5

 

 

$

6.9

 

Liabilities from commodity derivative contracts (1)

 

 

31.7

 

 

 

31.7

 

 

 

—

 

 

 

31.3

 

 

 

0.4

 

Permian Acquisition contingent consideration (3)

 

 

308.2

 

 

 

308.2

 

 

 

—

 

 

 

—

 

 

 

308.2

 

TPL contingent consideration (2)

 

 

2.4

 

 

 

2.4

 

 

 

—

 

 

 

—

 

 

 

2.4

 

Financial Instruments Recorded on Our

   Consolidated Balance Sheets at Carrying Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

232.1

 

 

 

232.1

 

 

 

—

 

 

 

—

 

 

 

—

 

TRC Revolver

 

 

435.0

 

 

 

435.0

 

 

 

—

 

 

 

435.0

 

 

 

—

 

TRP Revolver

 

 

700.0

 

 

 

700.0

 

 

 

—

 

 

 

700.0

 

 

 

—

 

Partnership's Senior unsecured notes

 

 

5,277.9

 

 

 

5,088.9

 

 

 

—

 

 

 

5,088.9

 

 

 

—

 

Partnership's accounts receivable securitization facility

 

 

280.0

 

 

 

280.0

 

 

 

—

 

 

 

280.0

 

 

 

—

 

 

(1)

The fair value of derivative contracts in this table is presented on a different basis than the Consolidated Balance Sheets presentation as disclosed in Note 16 – Derivative Instruments and Hedging Activities. The above fair values reflect the total value of each derivative contract taken as a whole, whereas the Consolidated Balance Sheets presentation is based on the individual maturity dates of estimated future settlements. As such, an individual contract could have both an asset and liability position when segregated into its current and long-term portions for Consolidated Balance Sheets classification purposes.

(2)

We have a contingent consideration liability for TPL’s previous acquisition of a gas gathering system and related assets, which is carried at fair value.

(3)

We have a contingent consideration liability related to the Permian Acquisition, which was carried at fair value as of December 31, 2018. See Note 8 – Accounts Payable and Accrued Liabilities.
Reconciliation of Changes in Fair Value of Financial Instruments Classified as Level 3

The following table summarizes the changes in fair value of our financial instruments classified as Level 3 in the fair value hierarchy:

 

 

 

 

Commodity

 

 

 

 

 

 

 

 

Derivative Contracts

 

 

Contingent

 

 

 

 

Asset/(Liability)

 

 

Consideration

 

Balance, December 31, 2018

 

$

6.5

 

 

$

(310.6

)

 

Completion of Permian Acquisition contingent consideration earn-out period

 

 

-

 

 

 

308.2

 

 

Unrealized gain/(loss) included in OCI

 

 

(3.1

)

 

 

-

 

Balance, March 31, 2019

 

$

3.4

 

 

$

(2.4

)