Annual report pursuant to Section 13 and 15(d)

Fair Value Measurements (Tables)

v3.19.3.a.u2
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Summary of Fair Value of Financial Instruments at Carrying and Fair Value The carrying amount of borrowings outstanding under the Credit Facility approximate fair value as the borrowings bear interest at variable rates and are reflective of market rates. The following table presents the principal amounts of the Company’s senior notes with the fair values measured using quoted secondary market trading prices which are designated as Level 2 within the valuation hierarchy. See “Note 7 - Borrowings” for further discussion.
 
2019
 
2018
 
Principal Amount
 
Fair Value
 
Principal Amount
 
Fair Value
 
(In thousands)
6.25% Senior Notes 

$650,000

 

$658,125

 

$—

 

$—

6.125% Senior Notes
600,000

 
611,130

 
600,000

 
558,000

8.25% Senior Notes
250,000

 
256,250

 
—

 
—

6.375% Senior Notes
400,000

 
405,424

 
400,000

 
372,000

Total

$1,900,000

 

$1,930,929

 

$1,000,000

 

$930,000

Fair Value of Assets Measured on Recurring Basis
The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018:
 
 
December 31, 2019
 
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Assets
 
 
 
 
 
 
Commodity derivative instruments
 

$—

 

$9,338

 

$—

Contingent consideration arrangements
 
—

 
25,934

 
—

Liabilities
 
 
 
 
 
 
Commodity derivative instruments
 
—

 
(34,132
)
 
—

Contingent consideration arrangements
 
—

 
(69,760
)
 
—

Total net assets (liabilities)
 

$—

 

($68,620
)
 

$—


 
 
 
 
 
 
 
 
December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Assets
 
 
 
 
 
 
Commodity derivative instruments
 

$—

 

$65,114

 

$—

Liabilities
 
 
 
 
 
 
Commodity derivative instruments
 
—

 
(17,920
)
 
—

Total net liabilities (liabilities)
 

$—

 

$47,194

 

$—


Fair Value of Liabilities Measured on Recurring Basis
The following tables present the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018:
 
 
December 31, 2019
 
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Assets
 
 
 
 
 
 
Commodity derivative instruments
 

$—

 

$9,338

 

$—

Contingent consideration arrangements
 
—

 
25,934

 
—

Liabilities
 
 
 
 
 
 
Commodity derivative instruments
 
—

 
(34,132
)
 
—

Contingent consideration arrangements
 
—

 
(69,760
)
 
—

Total net assets (liabilities)
 

$—

 

($68,620
)
 

$—


 
 
 
 
 
 
 
 
December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
 
(In thousands)
Assets
 
 
 
 
 
 
Commodity derivative instruments
 

$—

 

$65,114

 

$—

Liabilities
 
 
 
 
 
 
Commodity derivative instruments
 
—

 
(17,920
)
 
—

Total net liabilities (liabilities)
 

$—

 

$47,194

 

$—