Investment in Laramie Energy, LLC

3 Months Ended

Mar. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

As of March 31, 2021, 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 $130.6 million that is secured by a lien on its natural gas and crude oil properties and related assets. As of March 31, 2021, the balance outstanding on the revolving credit facility was approximately $190.6 million. We are guarantors of Laramie Energy’s credit facility, with recourse limited to the pledge of our equity interest in 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. Laramie Energy’s credit facility matures on December 15, 2021.

During the year ended December 31, 2020, Laramie Energy incurred losses that reduced the book value of our investment to zero, and as of December 31, 2020, we had discontinued the application of the equity method of accounting for our investment in Laramie Energy. As such, the balance of our investment in Laramie Energy was zero as of March 31, 2021 and December 31, 2020.

Summarized financial information for Laramie Energy is as follows (in thousands):


	March 31, 2021		December 31, 2020
Current assets	$	88,217	$	34,573
Non-current assets	348,586		355,538
Current liabilities	272,677		217,523
Non-current liabilities	44,279		93,193


	Three Months Ended March 31,
	2021		2020
Natural gas and oil revenues	$	82,348	$	34,713
Income from operations	47,209		1,369
Net income	40,451		574

Laramie Energy’s net income includes (in thousands):


	Three Months Ended March 31,
	2021		2020

Depreciation, depletion, and amortization	$	6,984	$	9,279
Unrealized (gain) loss on derivative instruments	(549)		(2,414)