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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 3 Months Ended
Mar. 31, 2020
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 March 31, 2020
 

 
 

 
 

 
 

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

 
$
8,959

 
$
—

 
$
8,959

Oil and natural gas derivative collar contracts
—

 
7,201

 
—

 
7,201

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

 
—

 
(20,601
)
 
(20,601
)
Total
$
—

 
$
16,160

 
$
(20,601
)
 
$
(4,441
)
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
)
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 March 31, 2020 and 2019:
 
Firm Takeaway and Pricing Agreement Net Settlement Provisions
 
(in thousands)
Balance at January 1, 2020
$
(3,238
)
Change in fair value of embedded derivative liabilities
(17,363
)
Balance at March 31, 2020
$
(20,601
)

 
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

Change in fair value of embedded derivative liabilities
(3,238
)
 
(335
)
 
(3,573
)
Balance at December 31, 2019
$
(3,238
)
 
$
—

 
$
(3,238
)