Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Fair Value Measurements

v3.19.2
Note 3 - Fair Value Measurements
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
3.
Fair Value Measurements
 
Derivative Financial Instruments
 
We measure the fair value of our open derivative financial instruments by applying the income approach, using models with inputs that are classified within Level
2
of the valuation hierarchy.  The inputs used for the fair value measurement of our open derivative financial instruments are the exercise price, the expiration date, the settlement date, notional quantities, the implied volatility, the discount curve with spreads and published commodity future prices.  Our open derivative financial instruments are reported in the Condensed Consolidated Balance Sheets using fair value.  See Note
6,
Derivative Financial Instruments
, for additional information on our derivative financial instruments.
 
The following table presents the fair value of our open derivative financial instruments (in thousands):
 
   
June 30,
   
December 31,
 
   
2019
   
2018
 
Assets:
 
 
 
 
 
 
 
 
Derivatives instruments - open contracts
  $
20,226
    $
74,580
 
 
Long-Term Debt
 
We believe the carrying value of our debt under the Credit Agreement approximates fair value because the interest rates are variable and reflective of current market rates. The fair value of our Senior Second Lien Notes was measured using quoted prices, although the market is
not
a very active market. The fair value of our long-term debt was classified as Level
2
within the valuation hierarchy.  See Note
2,
Long-Term Debt
for additional information on our long-term debt.
 
The following table presents the carrying value and fair value of our long-term debt (in thousands):
 
   
June 30, 2019
   
December 31, 2018
 
   
Carrying Value
   
Fair Value
   
Carrying Value
   
Fair Value
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Agreement
  $
21,000
    $
21,000
    $
21,000
    $
21,000
 
Senior Second Lien Notes
   
613,415
     
594,725
     
612,535
     
546,875