XML 55 R31.htm IDEA: XBRL DOCUMENT v3.20.1
Fair value measurements (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis
The following tables summarize the Company's derivatives' three-level fair value hierarchy by (i) assets and liabilities, (ii) current and noncurrent, (iii) commodity derivatives and contingent consideration derivative and (iv) oil, NGL, natural gas and/or deferred premiums, on a gross basis and the net presentation included in "Derivatives" on the unaudited consolidated balance sheets as of the dates presented:
 
 
March 31, 2020
(in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total gross fair value
 
Amounts offset
 
Net fair value presented on the unaudited consolidated balance sheets
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Commodity - Oil
 
$

 
$
222,125

 
$

 
$
222,125

 
$

 
$
222,125

Commodity - NGL
 

 
32,721

 

 
32,721

 

 
32,721

Commodity - Natural gas
 

 
17,582

 

 
17,582

 
(1,742
)
 
15,840

Commodity - Oil deferred premiums
 

 

 

 

 

 

Noncurrent:
 
 
 
 
 
 
 
 
 
 
 
 
Commodity - Oil
 
$

 
$
29,220

 
$

 
$
29,220

 
$

 
$
29,220

Commodity - NGL
 

 
14,600

 

 
14,600

 

 
14,600

Commodity - Natural gas
 

 
4,382

 

 
4,382

 
195

 
4,577

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Commodity - Oil
 
$

 
$

 
$

 
$

 
$

 
$

Commodity - NGL
 

 

 

 

 

 

Commodity - Natural gas
 

 
(1,742
)
 

 
(1,742
)
 
1,742

 

Commodity - Oil deferred premiums
 

 

 

 

 

 

Contingent consideration - Oil
 

 
(875
)
 

 
(875
)
 

 
(875
)
Noncurrent:
 
 
 
 
 
 
 
 
 
 
 
 
Commodity - Natural gas
 

 
195

 

 
195

 
(195
)
 

Net derivative asset (liability) positions
 
$

 
$
318,208

 
$

 
$
318,208

 
$

 
$
318,208

 
 
December 31, 2019
(in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total gross fair value
 
Amounts offset
 
Net fair value presented on the consolidated balance sheets
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Commodity - Oil
 
$

 
$
11,723

 
$

 
$
11,723

 
$
(5,301
)
 
$
6,422

Commodity - NGL
 

 
13,787

 

 
13,787

 
(1,297
)
 
12,490

Commodity - Natural gas
 

 
33,494

 

 
33,494

 

 
33,494

Commodity - Oil deferred premiums
 

 

 

 

 
(477
)
 
(477
)
Noncurrent:
 
 
 
 
 
 
 
 
 
 
 
 
Commodity - Oil
 
$

 
$
1,577

 
$

 
$
1,577

 
$

 
$
1,577

Commodity - NGL
 

 
9,547

 

 
9,547

 

 
9,547

Commodity - Natural gas
 

 
12,263

 

 
12,263

 

 
12,263

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Commodity - Oil
 
$

 
$
(5,649
)
 
$

 
$
(5,649
)
 
$
5,301

 
$
(348
)
Commodity - NGL
 

 
(1,297
)
 

 
(1,297
)
 
1,297

 

Commodity - Natural gas
 

 

 

 

 

 

Commodity - Oil deferred premiums
 

 

 
(477
)
 
(477
)
 
477

 

Contingent consideration - Oil
 
$

 
$
(7,350
)
 
$

 
$
(7,350
)
 
$

 
$
(7,350
)
Noncurrent:
 
 
 
 
 
 
 
 
 
 
 
 
Commodity - Natural gas
 

 

 

 

 

 

Net derivative asset (liability) positions
 
$

 
$
68,095

 
$
(477
)
 
$
67,618

 
$

 
$
67,618


Schedule of changes in net assets classified as Level 3 measurements
The following table summarizes the changes in net assets and liabilities classified as Level 3 measurements for the periods presented:
 

Three months ended March 31,
(in thousands)

2020
 
2019
Balance of Level 3 at beginning of period

$
(477
)
 
$
(16,565
)
Change in net present value of commodity derivative deferred premiums(1)


 
(95
)
Settlements of commodity derivative deferred premiums

477

 
4,016

Balance of Level 3 at end of period

$

 
$
(12,644
)
____________________________________________________________________________
(1)
This amount is included in "Interest expense" on the unaudited consolidated statements of operations for the three months ended March 31, 2019.
Schedule of carrying amount and fair value of debt instruments
The Company has not elected to account for its debt instruments at fair value. The following table presents the carrying amounts and fair values of the Company's debt as of the dates presented:
 
 
March 31, 2020
 
December 31, 2019
(in thousands)
 
Long-term
debt
 
Fair
value(1)
 
Long-term
debt
 
Fair
value(1)
January 2022 Notes
 
$

 
$

 
$
450,000

 
$
439,875

March 2023 Notes
 

 

 
350,000

 
332,500

January 2025 Notes
 
600,000

 
240,000

 

 

January 2028 Notes
 
400,000

 
152,000

 

 

Senior Secured Credit Facility
 
275,000

 
274,540

 
375,000

 
375,275

Total
 
$
1,275,000

 
$
666,540

 
$
1,175,000

 
$
1,147,650

______________________________________________________________________________
(1)
The fair values of the outstanding debt on the notes were determined using the Level 1 fair value hierarchy quoted market prices for each respective instrument as of March 31, 2020 and December 31, 2019. The fair values of the outstanding debt on the Senior Secured Credit Facility were estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments as of March 31, 2020 and December 31, 2019.