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Investment in Laramie Energy, LLC | 9 Months Ended
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Sep. 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 developing and 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 September 30, 2016, the balance outstanding on the revolving credit facility was approximately $114 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):
| Nine Months Ended September 30, 2016
Beginning balance | $ | 76,203 |
Equity losses from Laramie | (19,455 | )
Accretion of basis difference | 4,296 |
Investments | 55,000 |
Ending balance | $ | 116,044 |
Summarized financial information for Laramie Energy is as follows (in thousands):
| September 30, 2016 |  | December 31, 2015
Current assets | $ | 9,302 |  |  | $ | 8,511 |
Non-current assets | 651,868 |  |  | 514,206 |
Current liabilities | 39,097 |  |  | 18,158 |
Non-current liabilities | 179,899 |  |  | 98,624 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
Natural gas and oil revenues | $ | 31,091 |  |  | $ | 11,464 |  |  | $ | 68,513 |  |  | $ | 32,687 |
Loss from operations | (4,929 | ) |  | (6,201 | ) |  | (28,282 | ) |  | (21,487 | )
Net income (loss) | 5,056 |  |  | (4,717 | ) |  | (41,183 | ) |  | (20,126 | )
The net income (loss) for the three and nine months ended September 30, 2016 includes $13.5 million and $34.1 million of depreciation, depletion and amortization ("DD&A") expense and $12.7 million of unrealized gain and $16.8 million of unrealized loss on derivative instruments, respectively. The net loss for the three and nine months ended September 30, 2015 includes $7.5 million and $23.3 million of DD&A expense and $0.7 million and $5.1 million of unrealized losses on derivative instruments, respectively. As of September 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 $70.3 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.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=49116238&loc=d3e32787-111569 + Details
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