Permian Resources Corp - 10-Q filing on 2020-08-03

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of Fair Value Measurement of Financial Instruments

The Company’s Senior Notes and borrowings under its credit agreement are accounted for at cost, and the cost basis of the Company’s Senior Secured Notes issued in the Debt Exchange was measured based on their fair value on the date of the exchange, as discussed above. The following table summarizes the carrying values, principal amounts and fair values of these instruments as of the dates indicated:



	June 30, 2020						December 31, 2019
	Carrying Value		Principal Amount		Fair Value		Carrying Value		Principal Amount		Fair value
Credit facility due 2023⁽¹⁾	$	370,000	$	370,000	$	370,000	$	175,000	$	175,000	$	175,000
8.00% Senior Secured Notes due 2025⁽²⁾	102,109		127,073		108,012		—		—		—
5.375% Senior Notes due 2026⁽²⁾	284,485		289,448		144,724		392,623		400,000		394,480
6.875% Senior Notes due 2027⁽²⁾	349,449		356,351		178,176		489,766		500,000		520,000


⁽¹⁾	The carrying values of the amounts outstanding under CRP’s credit agreement approximate fair value because its variable interest rates are tied to current market rates and the applicable credit spreads represent current market rates for the credit risk profile of the Company.

⁽²⁾

The carrying values include associated unamortized debt issuance costs and any debt discounts as reflected in the Consolidated Balance Sheets. The fair values are determined using quoted market prices for these debt securities, a Level 1 classification in the fair value hierarchy, and are based on the aggregate principal amount of the Senior Notes outstanding.

The following table presents, for each applicable level within the fair value hierarchy, the Company’s net derivative assets and liabilities, including both current and noncurrent portions, measured at fair value on a recurring basis:



(in thousands)	Level 1		Level 2		Level 3
June 30, 2020
Total assets	$	—	$	—	$	—
Total liabilities	—		31,740		—
December 31, 2019
Total assets	$	—	$	—	$	—
Total liabilities	—		325		—