Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.21.1
Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 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 5 - Borrowings” for further discussion.
March 31, 2021 December 31, 2020
Principal Amount Fair Value Principal Amount Fair Value
(In thousands)
Second Lien Notes $516,659  $524,409  $516,659  $470,160 
6.25% Senior Notes
542,720  483,021  542,720  344,627 
6.125% Senior Notes
460,241  388,904  460,241  260,036 
8.25% Senior Notes
187,238  161,961  187,238  100,172 
6.375% Senior Notes
320,783  252,617  320,783  161,995 
Total $2,027,641  $1,810,912  $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 March 31, 2021 and December 31, 2020:
March 31, 2021
Level 1 Level 2 Level 3
(In thousands)
Assets      
Commodity derivative instruments $—  $560  $— 
Contingent consideration arrangements —  5,375  — 
Liabilities      
Commodity derivative instruments (1)
—  (207,933) — 
Contingent consideration arrangements —  (17,913) — 
Total net assets (liabilities) $—  ($219,911) $— 
     
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 $15.0 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 March 31, 2021 and December 31, 2020:
March 31, 2021
Level 1 Level 2 Level 3
(In thousands)
Assets      
Commodity derivative instruments $—  $560  $— 
Contingent consideration arrangements —  5,375  — 
Liabilities      
Commodity derivative instruments (1)
—  (207,933) — 
Contingent consideration arrangements —  (17,913) — 
Total net assets (liabilities) $—  ($219,911) $— 
     
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 $15.0 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 three months ended March 31, 2021.
Three Months Ended March 31, 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.