Fair value measurements (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Fair Value Disclosures [Abstract]    
Fair value hierarchy for financial instruments measured at fair value on a recurring basis

The fair value hierarchy for our financial assets and liabilities is shown by the following table:

 

     Successor      Predecessor  
     March 31, 2017      December 31, 2016  
     Derivative
assets
    Derivative
liabilities
    Net assets
(liabilities)
     Derivative
assets
    Derivative
liabilities
    Net assets
(liabilities)
 

Significant other observable inputs (Level 2)

   $ 19,432     $ (363   $ 19,069      $ 184     $ (13,455   $ (13,271

Significant unobservable inputs (Level 3)

     476       —         476        —         (98     (98

Netting adjustments (1)

     (363     363       —          (184     184       —    
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 
   $ 19,545     $ —       $ 19,545      $ —       $ (13,369   $ (13,369
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

 

(1) Amounts represent the impact of master netting agreements that allow us to net settle positive and negative positions with the same counterparty. Positive and negative positions with counterparties are netted on the balance sheet only to the extent that they relate to the same current versus noncurrent classification.

The fair value hierarchy for our financial assets and liabilities is shown by the following table:

 

     As of December 31, 2016     As of December 31, 2015  
     Derivative
assets
    Derivative
liabilities
    Net assets
(liabilities)
    Derivative
assets
    Derivative
liabilities
    Net assets
(liabilities)
 

Significant other observable inputs (Level 2)

   $ 184     $ (13,455   $ (13,271   $ 41,328     $ (1,158   $ 40,170  

Significant unobservable inputs (Level 3)

     —         (98     (98     123,068       —         123,068  

Netting adjustments (1)

     (184     184       —         (1,158     1,158       —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ —       $ (13,369   $ (13,369   $ 163,238     $ —       $ 163,238  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) Amounts represent the impact of master netting agreements that allow us to net settle positive and negative positions with the same counterparty. Positive and negative positions with a counterparty are netted on the balance sheet only to the extent that they relate to the same current versus noncurrent classification.
Level 3 rollforward

Changes in the fair value of our derivative instruments, classified as Level 3 in the fair value hierarchy, were as follows for the periods presented:

 

     Successor      Predecessor  

Net derivative assets (liabilities)

   Period from
March 22,
2017
through
March 31,
2017
     Period from
January 1,
2017
through
March 21,
2017
     Three months
ended
March 31,
2016
 

Beginning balance

   $ 715      $ (98    $ 123,068  

Realized and unrealized (losses) gains included in derivative gains

     (239      813        6,978  

Settlements received

     —          —          (39,093
  

 

 

    

 

 

    

 

 

 

Ending balance

   $ 476      $ 715      $ 90,953  
  

 

 

    

 

 

    

 

 

 

(Losses) gains relating to instruments still held at the reporting date included in derivative (losses) gains for the period

   $ (239    $ 813      $ 2,027  
  

 

 

    

 

 

    

 

 

 

Changes in the fair value of our derivative instruments classified as Level 3 in the fair value hierarchy at December 31, 2016 and 2015 were:

 

Net derivative assets (liabilities)

   2016      2015  

Beginning balance

   $ 123,068      $ 195,167  

Realized and unrealized (losses) gains included in non-hedge derivative (losses) gains

     (9,314      105,055  

Purchases

     —          —    

Settlements received

     (113,852      (177,154
  

 

 

    

 

 

 

Ending balance

   $ (98    $ 123,068  
  

 

 

    

 

 

 

(Losses) gains relating to instruments still held at the reporting date included in non-hedge derivative (losses) gains for the period

   $ (98    $ 61,260  
  

 

 

    

 

 

 
Fair value of other financial instruments

The carrying value and estimated fair value of our debt at March 31, 2017, and December 31, 2016, were as follows:

 

     Successor      Predecessor  
     March 31, 2017      December 31, 2016  

Level 2

   Carrying
value (1)
     Estimated
fair value
     Carrying
value (1)
     Estimated
fair value
 

New Revolver

   $ 120,000      $ 120,000      $ —        $ —    

New Term Loan

     150,000        150,000        —          —    

Other secured debt

     9,665        9,665        10,029        10,029  

9.875% Senior Notes due 2020

     —          —          298,000        268,200  

8.25% Senior Notes due 2021

     —          —          384,045        344,680  

7.625% Senior Notes due 2022

     —          —          525,910        470,689  

 

(1) The carrying value excludes deductions for debt issuance costs and discounts.

The carrying value and estimated fair value of our debt at December 31, 2016 and 2015 were as follows:

 

     December 31, 2016      December 31, 2015  

Level 2

   Carrying
value
     Estimated
fair value
     Carrying
value
     Estimated
fair value
 

9.875% Senior Notes due 2020

   $ 298,000      $ 268,200      $ 293,815      $ 75,750  

8.25% Senior Notes due 2021

     384,045        344,680        384,045        96,956  

7.625% Senior Notes due 2022

     525,910        470,689        530,849        120,478  

Existing Credit Facility (1)

     NA        NA        367,000        367,000  

Other secured debt

     10,029        10,029        11,981        11,981  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,217,984      $ 1,093,598      $ 1,587,690      $ 672,165  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) We have not disclosed the fair value of outstanding amounts under our Existing Credit Facility as it was not practicable to obtain a reasonable estimate of such value while the Predecessor was in bankruptcy.
Offsetting Assets and Liabilities

The following table summarizes our derivative assets and liabilities which are offset in the consolidated balance sheets under our master netting agreements. It also reflects the amounts outstanding under our credit facilities that are available to offset our net derivative assets due from counterparties that are lenders under our credit facilities.

 

     Offset in the consolidated balance sheets     Gross amounts not offset in the consolidated balance sheets  
     Gross assets
(liabilities)
    Offsetting assets
(liabilities)
    Net assets
(liabilities)
    Derivatives (1)      Amounts
outstanding
under credit
facilities
    Net amount  

Successor—March 31, 2017

             

Derivative assets

   $ 19,908     $ (363   $ 19,545     $ —        $ (19,545   $ —    

Derivative liabilities

     (363     363       —         —          —         —    
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 
   $ 19,545     $ —       $ 19,545     $ —        $ (19,545   $ —    
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

    

 

    

             

Predecessor—December 31, 2016

             

Derivative assets

   $ 184     $ (184   $ —       $ —        $ —       $ —    

Derivative liabilities

     (13,553     184       (13,369     —          —         (13,369
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 
   $ (13,369   $ —       $ (13,369   $ —        $ —       $ (13,369
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) Since positive and negative positions with a counterparty are netted on the balance sheet only to the extent that they relate to the same current versus noncurrent classification, these represent remaining amounts that could have been offset under our master netting agreements.

The following table summarizes our derivative assets and liabilities which are offset in the consolidated balance sheets under our master netting agreements. It also reflects the amounts outstanding under our Existing Credit Facility that are available to offset our net derivative assets due from counterparties that are lenders under our Existing Credit Facility.

 

     Offset in the consolidated balance sheets     Gross amounts not offset in the consolidated balance sheets  
     Gross assets
(liabilities)
    Offsetting assets
(liabilities)
    Net assets
(liabilities)
    Derivatives (1)      Amounts outstanding under
Existing Credit Facility
    Net amount  

As of December 31, 2016

             

Derivative assets

   $ 184     $ (184   $ —       $ —        $ —       $ —    

Derivative liabilities

     (13,553     184       (13,369     —          —         (13,369
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 
   $ (13,369   $ —       $ (13,369   $ —        $ —       $ (13,369
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

As of December 31, 2015

             

Derivative assets

   $ 164,396     $ (1,158   $ 163,238     $ —        $ (103,618   $ 59,620  

Derivative liabilities

     (1,158     1,158       —       $ —          —         —    
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 
   $ 163,238     $ —       $ 163,238     $ —        $ (103,618   $ 59,620  
  

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

(1) Since positive and negative positions with a counterparty are netted on the balance sheet only to the extent that they relate to the same current versus noncurrent classification, these represent remaining amounts that could have been offset under our master netting agreements.
Percentages of Total Commodity Sales Excluding Effects of Hedging Activities  

Commodity sales to our top three purchasers accounted for the following percentages of our total commodity sales, excluding the effects of hedging activities, for the years ended December 31:

 

     2016     2015     2014  

Coffeyville Resources LLC

     19.3     14.5     14.0

Valero Energy Corporation

     15.6     20.7     23.7

Phillips 66 Company

     15.1     11.8     *  

 

* Less than 10%