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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value Amounts by Hierarchy Level
Fair value amounts by hierarchy level as of September 30, 2018 and December 31, 2017 are presented gross in the tables below (in thousands):
 
September 30, 2018
 
Level 1
 
Level 2
 
Level 3
 
Gross Fair Value
 
Effect of Counter-Party Netting
 
Net Carrying Value on Balance Sheet (1)
Assets
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
1,056

 
$
13,675

 
$
—

 
$
14,731

 
$
(14,731
)
 
$
—

Interest rate derivatives
—

 
554

 
—

 
554

 
—

 
554

Total
$
1,056

 
$
14,229

 
$
—

 
$
15,285

 
$
(14,731
)
 
$
554

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Common stock warrants
$
—

 
$
—

 
$
(7,204
)
 
$
(7,204
)
 
$
—

 
$
(7,204
)
Commodity derivatives
(2,801
)
 
(14,003
)
 
—

 
(16,804
)
 
14,731

 
(2,073
)
J. Aron repurchase obligation derivative
—

 
—

 
(8,752
)
 
(8,752
)
 
—

 
(8,752
)
Total
$
(2,801
)
 
$
(14,003
)
 
$
(15,956
)
 
$
(32,760
)
 
$
14,731

 
$
(18,029
)
 
December 31, 2017
 
Level 1
 
Level 2
 
Level 3
 
Gross Fair Value
 
Effect of Counter-Party Netting
 
Net Carrying Value on Balance Sheet (1)
Assets
 
 
 
 
 
 
 
 
 
 
 
Commodity derivatives
$
557

 
$
21,907

 
$
—

 
$
22,464

 
$
(19,650
)
 
$
2,814

Interest rate derivatives
—

 
3,810

 
—

 
3,810

 
—

 
3,810

Total
$
557

 
$
25,717

 
$
—

 
$
26,274

 
$
(19,650
)
 
$
6,624

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
Common stock warrants
$
—

 
$
—

 
$
(6,808
)
 
$
(6,808
)
 
$
—

 
$
(6,808
)
Commodity derivatives
(596
)
 
(19,093
)
 
—

 
(19,689
)
 
19,650

 
(39
)
J. Aron repurchase obligation derivative
—

 
—

 
(19,564
)
 
(19,564
)
 
—

 
(19,564
)
Total
$
(596
)
 
$
(19,093
)
 
$
(26,372
)
 
$
(46,061
)
 
$
19,650

 
$
(26,411
)
_________________________________________________________
(1)
Does not include cash collateral of $10.0 million and $7.2 million as of September 30, 2018 and December 31, 2017, respectively, included within Prepaid and other current assets and Other long-term assets on our condensed consolidated balance sheets.
Roll Forward of Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis
A roll forward of Level 3 financial instruments measured at fair value on a recurring basis is as follows (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Balance, at beginning of period
$
(10,559
)
 
$
(7,324
)
 
$
(26,372
)
 
$
(25,134
)
Settlements
—

 
—

 
—

 
—

Total unrealized income (loss) included in earnings
(5,397
)
 
(25,016
)
 
10,416

 
(7,206
)
Balance, at end of period
$
(15,956
)
 
$
(32,340
)
 
$
(15,956
)
 
$
(32,340
)
Carrying Value and Fair Value of Long-term Debt and Other Financial Instruments
The carrying value and fair value of long-term debt and other financial instruments as of September 30, 2018 and December 31, 2017 are as follows (in thousands):
 
September 30, 2018
 
Carrying Value
 
Fair Value
5.00% Convertible Senior Notes due 2021 (1) (3)
$
99,145

 
$
148,793

7.75% Senior Secured Notes due 2025 (1)
290,453

 
299,250

Common stock warrants (2)
7,204

 
7,204

 
December 31, 2017
 
Carrying Value
 
Fair Value
5.00% Convertible Senior Notes due 2021 (1) (3)
$
95,486

 
$
149,007

7.75% Senior Secured Notes due 2025 (1)
289,326

 
300,423

Common stock warrants (2)
6,808

 
6,808

_________________________________________________________
(1)
The fair values measurements of the 5.00% Convertible Senior Notes and the 7.75% Senior Secured Notes are considered Level 2 measurements as discussed below.
(2)
The fair value of the common stock warrants is considered a Level 3 measurement in the fair value hierarchy.
(3)
The carrying value of the 5.00% Convertible Senior Notes excludes the fair value of the equity component, which was classified as equity upon issuance.