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Investment in Laramie Energy, LLC | 6 Months Ended
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Jun. 30, 2018
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Laramie Energy, LLC | Investment in Laramie Energy, LLC We have a 39.1% ownership interest in Laramie Energy. Laramie Energy is focused on producing natural gas in Garfield, Mesa, and Rio Blanco Counties, Colorado. On February 28, 2018, Laramie Energy closed on a purchase and contribution agreement with an unaffiliated third party that contributed all of its oil and gas properties located in the Piceance Basin and a $20.0 million cash payment, collectively with a fair market value of $28.1 million, into Laramie Energy in exchange for 70,227 of Laramie Energy’s newly issued Class A Units. The unaffiliated third party also contributed a $3.5 million cash payment for asset reclamation liabilities related to the properties conveyed. As a result of this transaction, our ownership interest in Laramie Energy decreased from 42.3% to 39.1%. Laramie Energy has a $400 million revolving credit facility with a borrowing base currently set at $250 million that is secured by a lien on its natural gas and crude oil properties and related assets. As of June 30, 2018, the balance outstanding on the revolving credit facility was approximately $190.0 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, 2018
Beginning balance | $ | 127,192 |
Equity earnings from Laramie Energy | 841 |
Accretion of basis difference | 2,383 |
Ending balance | $ | 130,416 |
Summarized financial information for Laramie Energy is as follows (in thousands):
| June 30, 2018 |  | December 31, 2017
Current assets | $ | 19,114 |  |  | $ | 18,757 |
Non-current assets | 791,699 |  |  | 720,444 |
Current liabilities | 39,679 |  |  | 42,149 |
Non-current liabilities | 281,980 |  |  | 237,497 |
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Natural gas and oil revenues | $ | 46,750 |  |  | $ | 35,425 |  |  | $ | 93,431 |  |  | $ | 76,037 |
Income (loss) from operations | (554 | ) |  | (1,458 | ) |  | 5,490 |  |  | (295 | )
Net (loss) income | (8,846 | ) |  | 2,412 |  |  | (1,556 | ) |  | 19,940 |
Laramie Energy’s net loss for the three and six months ended June 30, 2018 includes $17.1 million and $32.0 million of depreciation, depletion, and amortization (“DD&A”) and $8.1 million and $3.5 million of unrealized losses on derivative instruments, respectively. Laramie Energy’s net income for the three and six months ended June 30, 2017 includes $12.5 million and $25.8 million of DD&A and $8.7 million and $32.9 million of unrealized gains on derivative instruments, respectively. At June 30, 2018 and December 31, 2017, our equity in the underlying net assets of Laramie Energy exceeded the carrying value of our investment by approximately $61.0 million and $67.2 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.

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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 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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