| Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis |
The following tables present the Company's derivatives' three-level fair value hierarchy by (i) assets and liabilities, (ii) current and noncurrent, (iii) commodity, interest rate and contingent consideration derivatives and (iv) oil, NGL, natural gas, LIBOR and/or deferred premiums, and provide a total, on a gross basis and a net basis reflected in "Derivatives" on the consolidated balance sheets as of the dates presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | (in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total gross fair value | | Amounts offset | | Net fair value presented on the consolidated balance sheets | | Assets: | | | | | | | | | | | | | | Current: | | | | | | | | | | | | | | Commodity - Oil | | $ | — | | | $ | 32,958 | | | $ | — | | | $ | 32,958 | | | $ | (24,930) | | | $ | 8,028 | | | Commodity - NGL | | — | | | 2,720 | | | — | | | 2,720 | | | (2,720) | | | — | | | Commodity - Natural gas | | — | | | 521 | | | — | | | 521 | | | (656) | | | (135) | | | Commodity - Oil deferred premiums | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | Noncurrent: | | | | | | | | | | | | | | Commodity - Oil | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Commodity - NGL | | — | | | — | | | — | | | — | | | — | | | — | | | Commodity - Natural gas | | — | | | 535 | | | — | | | 535 | | | (535) | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | Current: | | | | | | | | | | | | | | Commodity - Oil | | $ | — | | | $ | (25,118) | | | $ | — | | | $ | (25,118) | | | $ | 24,930 | | | $ | (188) | | | Commodity - NGL | | — | | | (16,185) | | | — | | | (16,185) | | | 2,720 | | | (13,465) | | | Commodity - Natural gas | | — | | | (17,958) | | | — | | | (17,958) | | | 656 | | | (17,302) | | | Commodity - Oil deferred premiums | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | Interest rate - LIBOR | | — | | | (206) | | | — | | | (206) | | | — | | | (206) | | | Contingent consideration | | — | | | (665) | | | — | | | (665) | | | — | | | (665) | | | Noncurrent: | | | | | | | | | | | | | | Commodity - Oil | | $ | — | | | $ | (10,932) | | | $ | — | | | $ | (10,932) | | | $ | — | | | $ | (10,932) | | | Commodity - NGL | | — | | | — | | | — | | | — | | | — | | | — | | | Commodity - Natural gas | | — | | | (1,476) | | | — | | | (1,476) | | | 535 | | | (941) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Interest rate - LIBOR | | — | | | (63) | | | — | | | (63) | | | — | | | (63) | | | Contingent consideration | | — | | | (115) | | | — | | | (115) | | | — | | | (115) | | | Net derivative liability positions | | $ | — | | | $ | (35,984) | | | $ | — | | | $ | (35,984) | | | $ | — | | | $ | (35,984) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | (in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total gross fair value | | Amounts offset | | Net fair value presented on the consolidated balance sheets | | Assets: | | | | | | | | | | | | | | Current: | | | | | | | | | | | | | | Commodity - Oil | | $ | — | | | $ | 11,723 | | | $ | — | | | $ | 11,723 | | | $ | (5,301) | | | $ | 6,422 | | | Commodity - NGL | | — | | | 13,787 | | | — | | | 13,787 | | | (1,297) | | | 12,490 | | | Commodity - Natural gas | | — | | | 33,494 | | | — | | | 33,494 | | | — | | | 33,494 | | | Commodity - Oil deferred premiums | | — | | | — | | | — | | | — | | | (477) | | | (477) | | | | | | | | | | | | | | | | Noncurrent: | | | | | | | | | | | | | | Commodity - Oil | | $ | — | | | $ | 1,577 | | | $ | — | | | $ | 1,577 | | | $ | — | | | $ | 1,577 | | | Commodity - NGL | | — | | | 9,547 | | | — | | | 9,547 | | | — | | | 9,547 | | | Commodity - Natural gas | | — | | | 12,263 | | | — | | | 12,263 | | | — | | | 12,263 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | | Current: | | | | | | | | | | | | | | Commodity - Oil | | $ | — | | | $ | (5,649) | | | $ | — | | | $ | (5,649) | | | $ | 5,301 | | | $ | (348) | | | Commodity - NGL | | — | | | (1,297) | | | — | | | (1,297) | | | 1,297 | | | — | | | Commodity - Natural gas | | — | | | — | | | — | | | — | | | — | | | — | | | Commodity - Oil deferred premiums | | — | | | — | | | (477) | | | (477) | | | 477 | | | — | | | | | | | | | | | | | | | | Interest rate - LIBOR | $ | — | | — | | | — | | | — | | | — | | | — | | | — | | | Contingent consideration | | — | | | (7,350) | | | — | | | (7,350) | | | — | | | (7,350) | | | Noncurrent: | | | | | | | | | | | | | | Commodity - Oil | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Commodity - NGL | | — | | | — | | | — | | | — | | | — | | | — | | | Commodity - Natural gas | | — | | | — | | | — | | | — | | | — | | | — | | | Interest rate - LIBOR | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | Contingent consideration | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | Net derivative asset (liability) positions | | $ | — | | | $ | 68,095 | | | $ | (477) | | | $ | 67,618 | | | $ | — | | | $ | 67,618 | |
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| Schedule of changes in assets classified as Level 3 measurements |
The following table summarizes the changes in net assets and liabilities classified as Level 3 measurements for the periods presented: | | | | | | | | | | | | | | | | | | | | | | | Years ended December 31, | | (in thousands) | | 2020 | | 2019 | | 2018 | | Balance of Level 3 at beginning of year | | $ | (477) | | | $ | (16,565) | | | $ | (28,683) | | Change in net present value of commodity derivative deferred premiums(1) | | — | | | (139) | | | (694) | | | Purchases of commodity derivative deferred premiums | | — | | | — | | | (7,523) | | Settlements of commodity derivative deferred premiums(2) | | 477 | | | 16,227 | | | 20,335 | | | Balance of Level 3 at end of year | | $ | — | | | $ | (477) | | | $ | (16,565) | |
_____________________________________________________________________________ (1)These amounts are included in "Interest expense" on the consolidated statements of operations. (2)The amount for the year ended December 31, 2019 includes $7.2 million that represents the present value of deferred premiums settled upon their early termination.
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| Schedule of carrying amounts and fair values of debt |
The following table presents the carrying amounts and fair values of the Company's debt as of the dates presented: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2020 | | December 31, 2019 | | (in thousands) | | Long-term debt | | Fair value(1) | | Long-term debt | | Fair value(1) | | January 2022 Notes | | $ | — | | | $ | — | | | $ | 450,000 | | | $ | 439,875 | | | | | | | | | | | | March 2023 Notes | | — | | | — | | | 350,000 | | | 332,500 | | | January 2025 Notes | | 577,913 | | | 499,299 | | | — | | | — | | | January 2028 Notes | | 361,044 | | | 299,667 | | | — | | | — | | | Senior Secured Credit Facility | | 255,000 | | | 255,187 | | | 375,000 | | | 375,275 | | | Total | | $ | 1,193,957 | | | $ | 1,054,153 | | | $ | 1,175,000 | | | $ | 1,147,650 | |
_____________________________________________________________________________ (1)The fair values of the outstanding debt on the notes were determined using the Level 1 fair value hierarchy quoted market prices for each respective instrument as of December 31, 2020 and 2019. The fair values of the outstanding debt on the Senior Secured Credit Facility were estimated utilizing the Level 2 fair value hierarchy pricing model for similar instruments as of December 31, 2020 and 2019.
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