XML 20 R8.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Investment in Laramie Energy, LLC | 6 Months Ended
--- | ---
Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Laramie Energy, LLC | Investment in Laramie Energy, LLC We have a 42.3% ownership interest in Laramie Energy. Laramie Energy is focused on producing natural gas in Garfield, Mesa, and Rio Blanco Counties, Colorado. We acquired our equity interest in Laramie Energy as a result of (1) the contribution of certain natural gas and oil interests to Laramie Energy in conjunction with our corporate reorganization in August 2012 and (2) cash contributions of $27.5 million in 2015 and $55.0 million in 2016. Laramie Energy has a $400 million revolving credit facility with a borrowing base currently set at $210 million that is secured by a lien on its natural gas and crude oil properties and related assets. As of June 30, 2017, the balance outstanding on the revolving credit facility was approximately $131 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. The change in our equity investment in Laramie Energy is as follows (in thousands):
| Six Months Ended June 30, 2017
Beginning balance | $ | 108,823 |
Equity earnings from Laramie Energy | 8,436 |
Accretion of basis difference | 2,662 |
Ending balance | $ | 119,921 |
Summarized financial information for Laramie Energy is as follows (in thousands):
| June 30, 2017 |  | December 31, 2016
Current assets | $ | 10,865 |  |  | $ | 12,199 |
Non-current assets | 667,583 |  |  | 655,022 |
Current liabilities | 39,909 |  |  | 58,067 |
Non-current liabilities | 192,737 |  |  | 186,631 |
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Natural gas and oil revenues | $ | 35,425 |  |  | $ | 22,729 |  |  | $ | 76,037 |  |  | $ | 37,422 |
Loss from operations | (1,458 | ) |  | (12,229 | ) |  | (295 | ) |  | (23,353 | )
Net income (loss) | 2,412 |  |  | (43,660 | ) |  | 19,940 |  |  | (46,239 | )
Laramie Energy's net income for the three and six months ended June 30, 2017 includes $12.5 million and $25.8 million of depreciation, depletion, and amortization (“DD&A”) and $8.7 million and $32.9 million of unrealized gain on derivative instruments, respectively. Laramie Energy’s net loss for the three and six months ended June 30, 2016 includes $13.0 million and $20.6 million of DD&A and $35.4 million and $29.5 million of unrealized losses on derivative instruments, respectively. At June 30, 2017 and December 31, 2016, our equity in the underlying net assets of Laramie Energy exceeded the carrying value of our investment by approximately $65.1 million and $67.8 million, respectively. This difference arose due to lack of control and marketability discounts and an other-than-temporary impairment of our equity investment in Laramie Energy in 2015. 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.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=66011266&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=64825282&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=64825282&loc=d3e32787-111569 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration