Fair Value Measurements (Tables)
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9 Months Ended |
Sep. 30, 2020 |
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| Fair Value Disclosures [Abstract] |
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| Summary 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 6 - Borrowings” for further discussion.
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September 30, 2020 |
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December 31, 2019 |
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Principal Amount |
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Fair Value |
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Principal Amount |
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Fair Value |
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(In thousands) |
6.25% Senior Notes |
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$650,000 |
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$273,000 |
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$650,000 |
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$658,125 |
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6.125% Senior Notes |
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600,000 |
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240,000 |
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600,000 |
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611,130 |
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8.25% Senior Notes |
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250,000 |
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92,500 |
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250,000 |
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256,250 |
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6.375% Senior Notes |
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400,000 |
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140,000 |
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400,000 |
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405,424 |
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| Total |
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$1,900,000 |
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$745,500 |
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$1,900,000 |
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$1,930,929 |
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September 30, 2020 |
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December 31, 2019 |
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Principal Amount |
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Fair Value |
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Principal Amount |
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Fair Value |
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(In thousands) |
9.00% Second Lien Notes |
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$300,000 |
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$260,966 |
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$— |
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$— |
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| 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:
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September 30, 2020 |
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Level 1 |
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Level 2 |
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Level 3 |
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(In thousands) |
| Assets |
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| Commodity derivative instruments |
$— |
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$10,053 |
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$— |
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| Contingent consideration arrangements |
— |
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1,089 |
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— |
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| Liabilities |
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| Commodity derivative instruments |
— |
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(42,685) |
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— |
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| Contingent consideration arrangements |
— |
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(4,061) |
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— |
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| Total net assets (liabilities) |
$— |
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($35,604) |
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$— |
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December 31, 2019 |
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Level 1 |
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Level 2 |
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Level 3 |
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(In thousands) |
| Assets |
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| Commodity derivative instruments |
$— |
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$9,338 |
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$— |
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| Contingent consideration arrangements |
— |
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25,934 |
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— |
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| Liabilities |
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| Commodity derivative instruments |
— |
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(34,132) |
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— |
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| Contingent consideration arrangements |
— |
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(69,760) |
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— |
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| Total net assets (liabilities) |
$— |
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($68,620) |
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$— |
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| 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:
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September 30, 2020 |
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Level 1 |
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Level 2 |
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Level 3 |
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(In thousands) |
| Assets |
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| Commodity derivative instruments |
$— |
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$10,053 |
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$— |
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| Contingent consideration arrangements |
— |
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1,089 |
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— |
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| Liabilities |
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| Commodity derivative instruments |
— |
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(42,685) |
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— |
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| Contingent consideration arrangements |
— |
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(4,061) |
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— |
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| Total net assets (liabilities) |
$— |
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($35,604) |
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$— |
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December 31, 2019 |
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Level 1 |
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Level 2 |
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Level 3 |
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(In thousands) |
| Assets |
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| Commodity derivative instruments |
$— |
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$9,338 |
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$— |
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| Contingent consideration arrangements |
— |
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25,934 |
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— |
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| Liabilities |
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| Commodity derivative instruments |
— |
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(34,132) |
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— |
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| Contingent consideration arrangements |
— |
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(69,760) |
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— |
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| Total net assets (liabilities) |
$— |
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($68,620) |
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$— |
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| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table presents a reconciliation of the change in the fair value of the liability related to the Warrants for the nine months ended September 30, 2020.
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Nine Months Ended September 30, 2020 |
| Beginning of period |
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$— |
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| Recognition of issuance date fair value |
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23,909 |
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| Gain (loss) on changes in fair value |
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— |
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| Transfers into (out of) Level 3 |
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— |
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| End of period |
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$23,909 |
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