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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Summary of recurring fair values of assets and liabilities measured at fair value
Recurring Fair Value Measurements
 
Fair Value Measurement Classification
 
 
 
Quoted Prices in
Active Markets for
Identical Assets or
Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
 
(In thousands)
As of December 31, 2019
 

 
 

 
 

 
 

Oil and natural gas derivative instruments:
 
 
 
 
 
 
 
Oil and natural gas derivative swap contracts
$
—

 
$
(3,932
)
 
$
—

 
$
(3,932
)
Oil and natural gas derivative collar contracts
—

 
301

 
—

 
301

Embedded derivative instruments:
 
 
 
 
 
 
 
Net settlement provisions under ARM sales agreement
—

 
—

 
(3,238
)
 
(3,238
)
Total
$
—

 
$
(3,631
)
 
$
(3,238
)
 
$
(6,869
)
As of December 31, 2018
 
 
 
 
 
 
 
Oil and natural gas derivative instruments:
 
 
 
 
 
 
 
Oil and natural gas derivative swap contracts
$
—

 
$
(2,923
)
 
$
—

 
$
(2,923
)
Oil and natural gas derivative collar contracts
—

 
4,047

 
—

 
4,047

Embedded derivative instruments:
 
 
 
 
 
 
 
Second Lien Term Loan conversion features
—

 
—

 
(1,965
)
 
(1,965
)
Total
$
—

 
$
1,124

 
$
(1,965
)
 
$
(841
)
Changes in fair value of level three assets and liabilities recurring basis
The following table sets forth a reconciliation of changes in the fair value of the Company’s financial assets and liabilities classified as Level 3 in the fair value hierarchy, except for the commodity derivatives classified as Level 2, as disclosed in Note 9, as of December 31, 2019 and 2018:

 
Firm Takeaway and Pricing Agreement Net Settlement Provisions
 
Second Lien Term
Loan Conversion
Features
 
Total
 
(in thousands)
Balance at January 1, 2019
$
—

 
$
(1,965
)
 
$
(1,965
)
Fair value of the converted portion of the embedded derivatives associated with the Second Lien Term Loan
—

 
2,300

 
2,300

Fair value of the embedded derivatives in ARM Sales Agreement
(3,238
)
 
(335
)
 
(3,573
)
Balance at December 31, 2019
$
(3,238
)
 
$
—

 
$
(3,238
)

 
Second Lien Term
Loan Conversion
Features
 
Warrant
Liabilities
 
Total
 
(in thousands)
Balance at January 1, 2018
$
(72,714
)
 
$
(223
)
 
$
(72,937
)
Transferred to equity
—

 
223

 
223

Fair value of the converted portion of the embedded derivatives associated with the Second Lien Term Loan
12,406

 
—

 
12,406

Change in fair value of derivative liabilities
58,343

 
—

 
58,343

Balance at December 31, 2018
$
(1,965
)
 
$
—

 
$
(1,965
)