Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Net Assets (Liabilities) Measured on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions):


	Level 2
	December 31, 2021		December 31, 2020
Interest rate swaps (1)	$	—	$	(7.6)
Commodity swaps (2)	$	(14.5)	$	(2.1)

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(1)The fair values of the interest rate swaps are estimated based on the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows using observable benchmarks for the variable interest rates.

(2)The fair values of commodity swaps represent the amount at which the instruments could be exchanged in a current arms-length transaction adjusted for our credit risk and/or the counterparty credit risk as required under ASC 820.

Schedule of the Estimated Fair Value of Financial Instruments

Considerable judgment is required to develop the estimates of fair value; thus, the estimates provided below are not necessarily indicative of the amount we could realize upon the sale or refinancing of such financial instruments (in millions):


	December 31, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt (1)	$	4,363.7	$	4,520.0	$	4,593.8	$	4,318.2
Installment payab1e (2)	$	10.0	$	10.0	$	—	$	—
Contingent consideration (2)	$	6.9	$	6.9	$	—	$	—

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(1)The carrying value of long-term debt as of December 31, 2020 includes current maturities. The carrying value of the long-term debt is reduced by debt issuance costs of $27.8 million and $32.6 million at December 31, 2021 and 2020, respectively. The respective fair values do not factor in debt issuance costs.

(2)Consideration paid for the acquisition of Amarillo Rattler, LLC included $10.0 million to be paid on April 30, 2022 and a contingent consideration capped at $15.0 million and payable between 2024 and 2026 based on Diamondback Energy’s drilling activity above historical levels. Estimated fair values were calculated using a discounted cash flow analysis that utilized Level 3 inputs. For additional information regarding this transaction, refer to “Note 2—Significant Accounting Policies.”