Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.21.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Summary of financial instruments at carrying and fair value The carrying amount of borrowings outstanding under the Credit Facility approximates 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 Second Lien Notes and Senior Unsecured 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.
June 30, 2021 December 31, 2020
Principal Amount Fair Value Principal Amount Fair Value
(In thousands)
Second Lien Notes $516,659  $561,867  $516,659  $470,160 
6.25% Senior Notes
 542,720  542,720  542,720  344,627 
6.125% Senior Notes
 460,241  444,133  460,241  260,036 
8.25% Senior Notes
 187,238  184,429  187,238  100,172 
6.375% Senior Notes
 320,783  303,140  320,783  161,995 
Total $2,027,641  $2,036,289  $2,027,641  $1,336,990 
Schedule of 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 June 30, 2021 and December 31, 2020:
June 30, 2021
Level 1 Level 2 Level 3
(In thousands)
Assets      
Commodity derivative instruments $—  $256  $— 
Contingent consideration arrangements —  14,685  — 
Liabilities      
Commodity derivative instruments (1)
—  (315,802) — 
Contingent consideration arrangements —  (24,104) — 
Total net assets (liabilities) $—  ($324,965) $— 
     
December 31, 2020
Level 1 Level 2 Level 3
(In thousands)
Assets      
Commodity derivative instruments $—  $921  $— 
Contingent consideration arrangements —  1,816  — 
Liabilities      
Commodity derivative instruments (2)
—  (97,060) — 
Contingent consideration arrangements —  (8,618) — 
September 2020 Warrants —  —  (79,428)
Total net assets (liabilities) $—  ($102,941) ($79,428)
(1)    Includes approximately $8.3 million of deferred premiums which the Company will pay as the applicable contracts settle.
(2)    Includes approximately $11.2 million of deferred premiums which the Company will pay as the applicable contracts settle.
Schedule of 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 June 30, 2021 and December 31, 2020:
June 30, 2021
Level 1 Level 2 Level 3
(In thousands)
Assets      
Commodity derivative instruments $—  $256  $— 
Contingent consideration arrangements —  14,685  — 
Liabilities      
Commodity derivative instruments (1)
—  (315,802) — 
Contingent consideration arrangements —  (24,104) — 
Total net assets (liabilities) $—  ($324,965) $— 
     
December 31, 2020
Level 1 Level 2 Level 3
(In thousands)
Assets      
Commodity derivative instruments $—  $921  $— 
Contingent consideration arrangements —  1,816  — 
Liabilities      
Commodity derivative instruments (2)
—  (97,060) — 
Contingent consideration arrangements —  (8,618) — 
September 2020 Warrants —  —  (79,428)
Total net assets (liabilities) $—  ($102,941) ($79,428)
(1)    Includes approximately $8.3 million of deferred premiums which the Company will pay as the applicable contracts settle.
(2)    Includes approximately $11.2 million of deferred premiums which the Company will pay as the applicable contracts settle.
Schedule of 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 September 2020 Warrants, which was designated as Level 3 within the valuation hierarchy, for the six months ended June 30, 2021.
Six Months Ended June 30, 2021
(In thousands)
Beginning of period $79,428 
(Gain) loss on changes in fair value (1)
55,390 
Transfers into (out of) Level 3 (134,818)
End of period $— 
(1)    Included in “(Gain) loss on derivative contracts” in the consolidated statements of operations.