Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Summary of financial instruments at carrying and fair value

The carrying amount of borrowings outstanding under the Credit Facility approximates 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 Second Lien Notes and Senior Unsecured 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, 2021		December 31, 2020
	Principal Amount	Fair Value	Principal Amount	Fair Value
	(In thousands)
6.25% Senior Notes	$—	$—	$542,720	$344,627
6.125% Senior Notes	460,241	456,789	460,241	260,036
9.00% Second Lien Notes	516,659	561,867	516,659	470,160
8.25% Senior Notes	187,238	185,366	187,238	100,172
6.375% Senior Notes	320,783	311,160	320,783	161,995
8.00% Senior Notes	650,000	651,625	—	—
Total	$2,134,921	$2,166,807	$2,027,641	$1,336,990

Schedule of 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 as of September 30, 2021 and December 31, 2020:

	September 30, 2021
	Level 1	Level 2	Level 3
	(In thousands)
Assets
Commodity derivative instruments	$—	$38	$—
Contingent consideration arrangements	—	18,567	—
Liabilities
Commodity derivative instruments (1)	—	(315,244)	—
Contingent consideration arrangements	—	(24,688)	—
Total net assets (liabilities)	$—	($321,327)	$—
	December 31, 2020
	Level 1	Level 2	Level 3
	(In thousands)
Assets
Commodity derivative instruments	$—	$921	$—
Contingent consideration arrangements	—	1,816	—
Liabilities
Commodity derivative instruments (2)	—	(97,060)	—
Contingent consideration arrangements	—	(8,618)	—
September 2020 Warrants	—	—	(79,428)
Total net assets (liabilities)	$—	($102,941)	($79,428)

(1)    Includes approximately $6.6 million of deferred premiums which the Company will pay as the applicable contracts settle.

(2)    Includes approximately $11.2 million of deferred premiums which the Company will pay as the applicable contracts settle.

Schedule of 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 as of September 30, 2021 and December 31, 2020:

	September 30, 2021
	Level 1	Level 2	Level 3
	(In thousands)
Assets
Commodity derivative instruments	$—	$38	$—
Contingent consideration arrangements	—	18,567	—
Liabilities
Commodity derivative instruments (1)	—	(315,244)	—
Contingent consideration arrangements	—	(24,688)	—
Total net assets (liabilities)	$—	($321,327)	$—
	December 31, 2020
	Level 1	Level 2	Level 3
	(In thousands)
Assets
Commodity derivative instruments	$—	$921	$—
Contingent consideration arrangements	—	1,816	—
Liabilities
Commodity derivative instruments (2)	—	(97,060)	—
Contingent consideration arrangements	—	(8,618)	—
September 2020 Warrants	—	—	(79,428)
Total net assets (liabilities)	$—	($102,941)	($79,428)

(1)    Includes approximately $6.6 million of deferred premiums which the Company will pay as the applicable contracts settle.

(2)    Includes approximately $11.2 million of deferred premiums which the Company will pay as the applicable contracts settle.

Schedule of 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 September 2020 Warrants, which was designated as Level 3 within the valuation hierarchy, for the nine months ended September 30, 2021.

	Nine Months Ended September 30, 2021
	(In thousands)
Beginning of period	$79,428
(Gain) loss on changes in fair value (1)	55,390
Transfers into (out of) Level 3	(134,818)
End of period	$—

(1)    Included in “(Gain) loss on derivative contracts” in the consolidated statements of operations.