Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of financial instruments carried at fair value


(in thousands of dollars)	September 30, 2017
	Fair Value Measurements Using
Commodity Price Hedges	(Level 1)		(Level 2)		(Level 3)		Total
Current assets	$	—	$	7,590	$	—	$	7,590
Long-term assets (1)		—		(344)		1,952		1,608
Current liabilities		—		14,587		1,109		15,696
Long-term liabilities		—		4,250		1,105		5,355


(in thousands of dollars)	December 31, 2016
	Fair Value Measurements Using
Commodity Price Hedges	(Level 1)		(Level 2)		(Level 3)		Total
Current assets	$	—	$	24,100	$	—	$	24,100
Long-term assets (2)		—		36,384		(1,640)		34,744
Current liabilities		—		13,636		1,014		14,650
Long-term liabilities		—		892		317		1,209

(1)

Level 2 long-term assets are negative as a result of the netting of our commodity derivatives reflected on our Consolidated Balance Sheet as of September 30, 2017. Our agreements include set-off provisions, as noted in Note 7, “Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities”.

(2)

Level 3 long-term assets are negative as a result of the netting of our commodity derivatives reflected on our Consolidated Balance Sheet as of December 31, 2016. Our agreements include set-off provisions, as noted in Note 7, “Derivative Instruments and Hedging Activities - Offsetting Assets and Liabilities”.

Schedule of quantitative information about Level 3 inputs used in the fair value measurement, assets


	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value			Unobservable
Commodity Price Hedges	(000’s)		Valuation Technique	Input	Range
Natural gas liquid swaps	$	(1,266)	Use a discounted cash flow approach using inputs including forward price statements from counterparties	Natural gas liquid futures	$22.89 - $23.94 per barrel
Crude oil collars	$	1,988	Use a discounted option model approach using inputs including interpolated volatilities for certain settlement months where market volatility quotes were unavailable for the option strike price	Market volatility quotes at the option strike for certain settlement months in 2019	$45.00 - $61.00 per barrel
Natural gas collars	$	(984)	Use a discounted option model approach using inputs including interpolated volatilities for certain settlement months where market volatility quotes were unavailable for the option strike price	Market volatility quotes at the option strike for certain settlement months in 2019	$2.55 - $3.41 per barrel

Schedule of changes in fair value of Level 3 financial instruments


(in thousands of dollars)
Balance at December 31, 2016, net	$	(2,971)
Purchases		(775)
Settlements		1,115
Transfers to Level 2		—
Transfers to Level 3		—
Changes in fair value		2,369
Balance at September 30, 2017, net	$	(262)

Schedule of fair value of financial instruments that are not recorded at fair value in the consolidated financial statements


	September 30, 2017				December 31, 2016
	Principal				Principal
(in thousands of dollars)	Amount		Fair Value		Amount		Fair Value
Debt:
Revolver	$	151,000	$	151,000	$	178,000	$	178,000
2022 Notes		409,148		338,496		409,148		393,150
2023 Notes		150,000		124,560		150,000		153,375

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details