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Fair Value Measurements
6 Months Ended
Jun. 30, 2021
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

3.        Fair Value Measurements

Derivative Financial Instruments

We measure the fair value of our open derivative financial instruments by applying the income approach, using models with inputs that are classified within Level 2 of the valuation hierarchy. The inputs used for the fair value measurement of our open derivative financial instruments are the exercise price, the expiration date, the settlement date, notional quantities, the implied volatility, the discount curve with spreads and published commodity future prices. Our open derivative financial instruments are reported in the Condensed Consolidated Balance Sheets using fair value. See Note 7 Derivative Financial Instruments, for additional information on our derivative financial instruments.

The following table presents the fair value of our open derivative financial instruments (in thousands):

June 30, 2021

December 31, 2020

Assets:

 

  

 

  

Derivatives instruments - open contracts, current

$

13,111

$

2,705

Derivatives instruments - open contracts, long-term

 

21,005

 

2,762

Liabilities:

 

  

 

  

Derivatives instruments - open contracts, current

 

74,632

 

13,291

Derivatives instruments - open contracts, long-term

 

28,122

 

4,384

Debt

The fair value of the Term Loan was measured using a discounted cash flows model and current market rates. The net value of our debt under the Company Credit Agreement approximates fair value because the interest rates are variable and reflective of current market rates. The fair value of our Senior Second Lien Notes was measured using quoted prices, although the market is not a very active market. The fair value of our debt was classified as Level 2 within the valuation hierarchy. See Note 2 – Debt for additional information on our debt.

The following table presents the net value and fair value of our long-term debt (in thousands):

    

June 30, 2021

    

December 31, 2020

Net Value

    

Fair Value

    

Net Value

    

Fair Value

Liabilities:

 

  

 

  

 

  

 

  

Term Loan

$

208,282

$

214,607

$

$

Company Credit Agreement

80,000

80,000

Senior Second Lien Notes

 

546,405

 

536,660

 

545,286

 

393,352

Total

754,687

751,267

625,286

473,352