Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Summary of Financial Instruments at Carrying and Fair Value

The carrying amount of borrowings outstanding under the Credit Facility approximate 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 senior notes

with the fair values measured using quoted secondary market trading prices which are designated as Level 2 within the valuation hierarchy. See “Note 6 - Borrowings” for further discussion.

	September 30, 2020		December 31, 2019
	Principal Amount	Fair Value	Principal Amount	Fair Value
	(In thousands)
6.25% Senior Notes	$650,000	$273,000	$650,000	$658,125
6.125% Senior Notes	600,000	240,000	600,000	611,130
8.25% Senior Notes	250,000	92,500	250,000	256,250
6.375% Senior Notes	400,000	140,000	400,000	405,424
Total	$1,900,000	$745,500	$1,900,000	$1,930,929

The following table presents the principal amount of the Company’s Second Lien Notes with the fair value measured using the Level 3 inputs mentioned above. See “Note 6 - Borrowings” for details regarding the allocation of the net proceeds to the Second Lien Notes and Warrants.

	September 30, 2020		December 31, 2019
	Principal Amount	Fair Value	Principal Amount	Fair Value
	(In thousands)
9.00% Second Lien Notes	$300,000	$260,966	$—	$—

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:

	September 30, 2020
	Level 1	Level 2	Level 3
	(In thousands)
Assets
Commodity derivative instruments	$—	$10,053	$—
Contingent consideration arrangements	—	1,089	—
Liabilities
Commodity derivative instruments	—	(42,685)	—
Contingent consideration arrangements	—	(4,061)	—
Total net assets (liabilities)	$—	($35,604)	$—
	December 31, 2019
	Level 1	Level 2	Level 3
	(In thousands)
Assets
Commodity derivative instruments	$—	$9,338	$—
Contingent consideration arrangements	—	25,934	—
Liabilities
Commodity derivative instruments	—	(34,132)	—
Contingent consideration arrangements	—	(69,760)	—
Total net assets (liabilities)	$—	($68,620)	$—

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:

	September 30, 2020
	Level 1	Level 2	Level 3
	(In thousands)
Assets
Commodity derivative instruments	$—	$10,053	$—
Contingent consideration arrangements	—	1,089	—
Liabilities
Commodity derivative instruments	—	(42,685)	—
Contingent consideration arrangements	—	(4,061)	—
Total net assets (liabilities)	$—	($35,604)	$—
	December 31, 2019
	Level 1	Level 2	Level 3
	(In thousands)
Assets
Commodity derivative instruments	$—	$9,338	$—
Contingent consideration arrangements	—	25,934	—
Liabilities
Commodity derivative instruments	—	(34,132)	—
Contingent consideration arrangements	—	(69,760)	—
Total net assets (liabilities)	$—	($68,620)	$—

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 Warrants for the nine months ended September 30, 2020.

	Nine Months Ended September 30, 2020
Beginning of period	$—
Recognition of issuance date fair value	23,909
Gain (loss) on changes in fair value	—
Transfers into (out of) Level 3	—
End of period	$23,909