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Investment in Laramie Energy, LLC
 6 Months Ended
Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Laramie Energy, LLC
Note 3—Investment in Laramie Energy, LLC
We have a 42.3% ownership interest in Laramie Energy, a joint venture entity focused on producing natural gas in Garfield, Mesa and Rio Blanco Counties, Colorado. Laramie Energy has a $400 million revolving credit facility secured by a lien on its natural gas and oil properties and related assets with a borrowing base currently set at $170 million. As of June 30, 2016, the balance outstanding on the revolving credit facility was approximately $121 million. We are guarantors of Laramie Energy's credit facility, with recourse limited to the pledge of our equity interest of our wholly-owned subsidiary, Par Piceance Energy Equity, LLC. Under the terms of its credit facility, Laramie Energy is generally prohibited from making future cash distributions to its owners, including us.
On March 1, 2016, Laramie Energy acquired and assumed operatorship of certain properties in the Piceance Basin for $157.5 million, subject to customary purchase price adjustments ("Laramie Purchase"). In connection with the Laramie Purchase, we acquired additional membership interests of Laramie Energy for an aggregate cash purchase price of $55 million. As a result of this transaction, our ownership interest in Laramie Energy increased from 32.4% to 42.3%.
The change in our equity investment in Laramie Energy is as follows (in thousands):
 
Six Months Ended June 30, 2016
Beginning balance
$
76,203

Equity losses from Laramie
(21,594
)
Accretion of basis difference
2,776

Investments
55,000

Ending balance
$
112,385


Summarized financial information for Laramie Energy is as follows (in thousands): 
 
June 30, 2016
 
December 31, 2015
Current assets
$
7,782

 
$
8,511

Non-current assets
657,611

 
514,206

Current liabilities
35,804

 
18,158

Non-current liabilities
194,077

 
98,624

 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Natural gas and oil revenues
$
22,729

 
$
10,486

 
$
37,422

 
$
21,223

Loss from operations
(12,229
)
 
(8,207
)
 
(23,353
)
 
(15,286
)
Net loss
(43,660
)
 
(9,329
)
 
(46,239
)
 
(15,409
)

The net loss for the three and six months ended June 30, 2016 includes $13.0 million and $20.6 million of depreciation, depletion and amortization ("DD&A") expense and $35.4 million and $29.5 million of unrealized losses on derivative instruments, respectively. The net loss for the three and six months ended ended June 30, 2015 includes $8.4 million and $15.8 million of DD&A expense and $3.7 million and $4.4 million of unrealized losses on derivative instruments, respectively.
As of June 30, 2016 and December 31, 2015, our equity in the underlying net assets of Laramie Energy exceeded the carrying value of our investment by approximately $71.8 million and $55.4 million, respectively. This difference arose primarily due to an other-than-temporary impairment of our equity investment in Laramie Energy in 2015 and our recent increase in ownership. We attributed this difference to natural gas and crude oil properties and are amortizing the difference over 15 years based on the estimated timing of production of proved reserves.