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Investment in Laramie Energy, LLC | 3 Months Ended
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Mar. 31, 2019
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Laramie Energy, LLC | Investment in Laramie Energy, LLC As of March 31, 2019, we had a 46.0% ownership interest in Laramie Energy. Laramie Energy is focused on producing natural gas in Garfield, Mesa, and Rio Blanco Counties, Colorado. Laramie Energy has a $400 million revolving credit facility with a borrowing base currently set at $240 million that is secured by a lien on its natural gas and crude oil properties and related assets. As of March 31, 2019, the balance outstanding on the revolving credit facility was approximately $192.8 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):
| Three Months Ended March 31, 2019
Beginning balance | $ | 136,656 |
Equity earnings from Laramie Energy | (1,372 | )
Accretion of basis difference | 1,673 |
Ending balance | $ | 136,957 |
Summarized financial information for Laramie Energy is as follows (in thousands):
| March 31, 2019 |  | December 31, 2018
Current assets | $ | 23,886 |  |  | $ | 28,569 |
Non-current assets | 771,958 |  |  | 788,515 |
Current liabilities | 40,016 |  |  | 41,681 |
Non-current liabilities | 276,420 |  |  | 293,084 |
| Three Months Ended March 31,
| 2019 |  | 2018
Natural gas and oil revenues | $ | 67,924 |  |  | $ | 46,681 |
Income from operations | 13,743 |  |  | 6,044 |
Net (loss) income | (2,983 | ) |  | 7,290 |
Laramie Energy’s net loss for the three months ended March 31, 2019 includes $21.4 million of depreciation, depletion, and amortization (“DD&A”) and $2.7 million of unrealized gains on derivative instruments. Laramie Energy’s net income for the three months ended March 31, 2018 includes $14.9 million of DD&A and $4.6 million of unrealized gains on derivative instruments. At March 31, 2019 and December 31, 2018, our equity in the underlying net assets of Laramie Energy exceeded the carrying value of our investment by approximately $83.6 million and $85.2 million, respectively. This difference arose primarily due to lack of control and marketability discounts and an other-than-temporary impairment of our equity investment in Laramie Energy. 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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