Fair value measurements (Tables)

12 Months Ended

Dec. 31, 2020

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

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)

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(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.

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

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(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.