Virginia | 23-1184320 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||
Common Stock, $0.01 Par Value | Nasdaq Global Select Market |
Large accelerated filer | Accelerated filer | ☒ | Non-accelerated filer | Smaller reporting company | ||||||
Emerging growth company |
Page | Page | |||
Forward-Looking Statements | Forward-Looking Statements | Forward-Looking Statements | ||
Glossary of Certain Industry Terminology | Glossary of Certain Industry Terminology | Glossary of Certain Industry Terminology | Part I | |
Item | ||||
1. | Business | Business | ||
1A. | Risk Factors | Risk Factors | ||
1B. | Unresolved Staff Comments | Unresolved Staff Comments | ||
2. | Properties | Properties | ||
3. | Legal Proceedings | Legal Proceedings | ||
4. | Mine Safety Disclosures | Mine Safety Disclosures | Part II | |
5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | ||
6. | Selected Financial Data | Selected Financial Data | ||
7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations: | Management’s Discussion and Analysis of Financial Condition and Results of Operations: | ||
Overview and Executive Summary | Overview and Executive Summary | |||
Key Developments | Key Developments | |||
Financial Condition | Financial Condition | |||
Results of Operations | Results of Operations | |||
Off-Balance Sheet Arrangements | Off-Balance Sheet Arrangements | |||
Contractual Obligations | Contractual Obligations | |||
Critical Accounting Estimates | Critical Accounting Estimates | |||
7A. | Quantitative and Qualitative Disclosures About Market Risk | Quantitative and Qualitative Disclosures About Market Risk | ||
8. | Financial Statements and Supplementary Data | Financial Statements and Supplementary Data | ||
9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | ||
9A. | Controls and Procedures | Controls and Procedures | ||
9B. | Other Information | Other Information | Part III | |
10. | Directors, Executive Officers and Corporate Governance | Directors, Executive Officers and Corporate Governance | ||
11. | Executive Compensation | Executive Compensation | ||
12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | ||
13. | Certain Relationships and Related Transactions, and Director Independence | Certain Relationships and Related Transactions, and Director Independence | ||
14. | Principal Accountant Fees and Services | Principal Accountant Fees and Services | Part IV | |
15. | Exhibits, Financial Statement Schedules | Exhibits, Financial Statement Schedules | ||
16. | Form 10-K Summary | Form 10-K Summary | ||
Signatures | Signatures | Signatures |
Item 1 | Business |
• | technological advancesor social attitudes and policies affecting energy consumption and energy supply; |
Item 1B | Unresolved Staff Comments |
Item 2 | Properties |
Crude Oil | NGLs | Natural Gas | Oil Equivalents | Standardized Measure | PV10 1 | Crude Oil | NGLs | Natural Gas | Oil Equivalents | Standardized Measure | PV10 1 | |||||||||||||||||||||||||||
(MMBbl) | (MMBbl) | (Bcf) | (MMBOE) | $ in millions | $ in millions | |||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||
Developed | ||||||||||||||||||||||||||||||||||||||
Producing | 40.1 | 8.7 | 41.0 | 55.6 | ||||||||||||||||||||||||||||||||||
Non-producing | 0.5 | 0.2 | 0.8 | 0.8 | ||||||||||||||||||||||||||||||||||
40.6 | 8.9 | 41.8 | 56.4 | |||||||||||||||||||||||||||||||||||
Undeveloped | 58.3 | 10.3 | 48.6 | 76.7 | ||||||||||||||||||||||||||||||||||
98.9 | 19.2 | 90.4 | 133.1 | $ | 1,488.9 | $ | 1,600.1 | |||||||||||||||||||||||||||||||
Price measurement used | $55.67/Bbl | $13.36/Bbl | $2.58/MMBtu | |||||||||||||||||||||||||||||||||||
(MMBbl) | (MMBbl) | (Bcf) | (MMBOE) | $ in millions | $ in millions | |||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||
Developed | �� | |||||||||||||||||||||||||||||||||||||
Producing | 35.2 | 6.3 | 31.8 | 46.8 | 35.2 | 6.3 | 31.8 | 46.8 | ||||||||||||||||||||||||||||||
Non-producing | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
35.2 | 6.3 | 31.8 | 46.8 | 35.2 | 6.3 | 31.8 | 46.8 | |||||||||||||||||||||||||||||||
Undeveloped | 54.5 | 11.7 | 59.7 | 76.2 | 54.5 | 11.7 | 59.7 | 76.2 | ||||||||||||||||||||||||||||||
89.7 | 18.0 | 91.5 | 123.0 | $ | 1,623.9 | $ | 1,769.4 | 89.7 | 18.0 | 91.5 | 123.0 | $ | 1,623.9 | $ | 1,769.4 | |||||||||||||||||||||||
Price measurement used | $65.56/Bbl | $23.60/Bbl | $3.10/MMBtu | $65.56/Bbl | $23.60/Bbl | $3.10/MMBtu | ||||||||||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||||||||
Developed | ||||||||||||||||||||||||||||||||||||||
Producing | 22.4 | 4.9 | 27.2 | 31.8 | 22.4 | 4.9 | 27.2 | 31.8 | ||||||||||||||||||||||||||||||
Non-producing | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
22.4 | 4.9 | 27.2 | 31.8 | 22.4 | 4.9 | 27.2 | 31.8 | |||||||||||||||||||||||||||||||
Undeveloped | 33.4 | 4.0 | 20.1 | 40.8 | 33.4 | 4.0 | 20.1 | 40.8 | ||||||||||||||||||||||||||||||
55.8 | 8.9 | 47.3 | 72.6 | $ | 590.5 | $ | 609.0 | 55.8 | 8.9 | 47.3 | 72.6 | $ | 590.5 | $ | 609.0 | |||||||||||||||||||||||
Price measurement used | $51.34/Bbl | $18.48/Bbl | $2.98/MMBtu | $51.34/Bbl | $18.48/Bbl | $2.98/MMBtu | ||||||||||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||||||||
Developed | ||||||||||||||||||||||||||||||||||||||
Producing | 17.5 | 4.3 | 24.8 | 25.9 | ||||||||||||||||||||||||||||||||||
Non-producing | 0.2 | 0.1 | 0.1 | 0.3 | ||||||||||||||||||||||||||||||||||
17.7 | 4.4 | 24.9 | 26.2 | |||||||||||||||||||||||||||||||||||
Undeveloped | 18.9 | 2.4 | 11.8 | 23.3 | ||||||||||||||||||||||||||||||||||
36.6 | 6.8 | 36.7 | 49.5 | $ | 317.5 | $ | 317.5 | |||||||||||||||||||||||||||||||
Price measurement used | $42.75/Bbl | $12.33/Bbl | $2.48/MMBtu |
Crude Oil | NGLs | Natural Gas | Oil Equivalents | Crude Oil | NGLs | Natural Gas | Oil Equivalents | |||||||||||||||
(MMBbl) | (MMBbl) | (Bcf) | (MMBOE) | (MMBbl) | (MMBbl) | (Bcf) | (MMBOE) | |||||||||||||||
Proved undeveloped reserves at beginning of year | 33.4 | 4.0 | 20.1 | 40.8 | 54.5 | 11.8 | 59.7 | 76.2 | ||||||||||||||
Revisions of previous estimates | (13.9 | ) | (1.4 | ) | (7.2 | ) | (16.5 | ) | (22.7 | ) | (4.6 | ) | (26.5 | ) | (31.8 | ) | ||||||
Extensions and discoveries | 42.0 | 10.4 | 52.7 | 61.1 | 37.4 | 6.3 | 29.7 | 48.7 | ||||||||||||||
Purchase of reserves | 3.7 | 0.2 | 1.2 | 4.1 | 0.6 | — | 0.2 | 0.7 | ||||||||||||||
Conversion to proved developed reserves | (10.7 | ) | (1.4 | ) | (7.1 | ) | (13.3 | ) | (11.5 | ) | (3.2 | ) | (14.5 | ) | (17.1 | ) | ||||||
Proved undeveloped reserves at end of year | 54.5 | 11.8 | 59.7 | 76.2 | 58.3 | 10.3 | 48.6 | 76.7 |
Year Ended December 31, | ||||||||||||||||||||||
Region | 2019 | 2018 | 2017 | |||||||||||||||||||
(MBOE) | ||||||||||||||||||||||
South Texas | 10,121 | 7,780 | 3,487 | |||||||||||||||||||
Mid-Continent 1 | — | 165 | 292 | |||||||||||||||||||
Total Production | 10,121 | 7,944 | 3,779 | |||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||
September 13 Through | January 1 Through | Average Daily Production | ||||||||||||||||||||
Year Ended December 31, | December 31, | September 12 | Year Ended December 31, | |||||||||||||||||||
Region | 2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||
(MBOE) | (MBOE) | (BOEPD) | ||||||||||||||||||||
South Texas | 7,780 | 3,487 | 937 | 3,071 | 27,730 | 21,314 | 9,553 | |||||||||||||||
Divested properties 1 | 165 | 292 | 103 | 276 | ||||||||||||||||||
Mid-Continent 1 | — | 451 | 800 | |||||||||||||||||||
7,944 | 3,779 | 1,039 | 3,346 | 27,730 | 21,765 | 10,353 | ||||||||||||||||
Average Daily Production | ||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||||||||
Year Ended December 31, | December 31, | September 12 | ||||||||||||||||||||
Region | 2018 | 2017 | 2016 | 2016 | ||||||||||||||||||
(BOEPD) | (BOEPD) | |||||||||||||||||||||
South Texas | 21,314 | 9,553 | 8,515 | 11,995 | ||||||||||||||||||
Divested properties 1 | 451 | 800 | 934 | 1,076 | ||||||||||||||||||
21,765 | 10,353 | 9,449 | 13,071 |
Successor | Predecessor | ||||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12 | Year Ended December 31, | ||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||||
Average prices: | |||||||||||||||||||||||||||||
Crude oil ($ per Bbl) | $ | 66.23 | $ | 50.96 | $ | 46.68 | $ | 35.21 | $ | 58.33 | $ | 66.23 | $ | 50.96 | |||||||||||||||
NGLs ($ per Bbl) | $ | 20.99 | $ | 19.25 | $ | 16.56 | $ | 11.37 | $ | 11.13 | $ | 20.99 | $ | 19.25 | |||||||||||||||
Natural gas ($ per Mcf) | $ | 3.08 | $ | 2.89 | $ | 2.81 | $ | 2.06 | $ | 2.51 | $ | 3.08 | $ | 2.89 | |||||||||||||||
Aggregate ($ per BOE) | $ | 55.33 | $ | 42.20 | $ | 37.19 | $ | 27.99 | $ | 46.34 | $ | 55.33 | $ | 42.20 | |||||||||||||||
Average production and lifting cost ($ per BOE): | |||||||||||||||||||||||||||||
Lease operating | $ | 4.52 | $ | 5.76 | $ | 5.13 | $ | 4.67 | $ | 4.26 | $ | 4.52 | $ | 5.76 | |||||||||||||||
Gathering processing and transportation | 2.34 | 2.84 | 2.93 | 3.96 | 2.29 | 2.34 | 2.84 | ||||||||||||||||||||||
$ | 6.86 | $ | 8.60 | $ | 8.06 | $ | 8.63 | $ | 6.55 | $ | 6.86 | $ | 8.60 |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12 | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Production: | |||||||||||||||||||||||||||
Crude oil (MBbl) | 6,050 | 2,716 | 695 | 2,265 | 7,453 | 6,050 | 2,716 | ||||||||||||||||||||
NGLs (MBbl) | 944 | 418 | 130 | 449 | 1,491 | 944 | 418 | ||||||||||||||||||||
Natural gas (MMcf) | 4,713 | 2,120 | 674 | 2,141 | 7,067 | 4,713 | 2,120 | ||||||||||||||||||||
Total (MBOE) | 7,780 | 3,487 | 937 | 3,071 | 10,121 | 7,780 | 3,487 | ||||||||||||||||||||
Percent of total company production | 98 | % | 92 | % | 90 | % | 92 | % | 100 | % | 98 | % | 92 | % | |||||||||||||
Average prices: | |||||||||||||||||||||||||||
Crude oil ($ per Bbl) | $ | 66.24 | $ | 51.08 | $ | 46.73 | $ | 35.24 | $ | 58.33 | $ | 66.24 | $ | 51.08 | |||||||||||||
NGLs ($ per Bbl) | $ | 21.10 | $ | 18.13 | $ | 14.82 | $ | 10.34 | $ | 11.13 | $ | 21.10 | $ | 18.13 | |||||||||||||
Natural gas ($ per Mcf) | $ | 3.16 | $ | 2.95 | $ | 2.79 | $ | 2.05 | $ | 2.51 | $ | 3.16 | $ | 2.95 | |||||||||||||
Aggregate ($ per BOE) | $ | 55.99 | $ | 43.74 | $ | 38.71 | $ | 28.94 | $ | 46.34 | $ | 55.99 | $ | 43.74 | |||||||||||||
Average production and lifting cost ($ per BOE): | |||||||||||||||||||||||||||
Lease operating | $ | 4.47 | $ | 5.79 | $ | 5.39 | $ | 4.58 | $ | 4.26 | $ | 4.47 | $ | 5.79 | |||||||||||||
Gathering processing and transportation | 2.27 | 2.49 | 2.58 | 3.50 | 2.29 | 2.27 | 2.49 | ||||||||||||||||||||
$ | 6.74 | $ | 8.28 | $ | 7.97 | $ | 8.08 | $ | 6.55 | $ | 6.74 | $ | 8.28 |
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||
Development | ||||||||||||||||||||||||||||||||||
Productive | 53 | 45.5 | 29 | 16.9 | 5 | 2.9 | 48 | 43.3 | 53 | 45.5 | 29 | 16.9 | ||||||||||||||||||||||
Dry well 1 | — | — | 1 | 0.7 | — | — | — | — | — | — | 1 | 0.7 | ||||||||||||||||||||||
Total | 53 | 45.5 | 30 | 17.6 | 5 | 2.9 | 48 | 43.3 | 53 | 45.5 | 30 | 17.6 | ||||||||||||||||||||||
Wells in progress at end of year 2 | 11 | 10.2 | 11 | 8.2 | 5 | 2.6 | 8 | 7.3 | 11 | 10.2 | 11 | 8.2 |
Primarily Oil | Primarily Natural Gas | Total | ||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||
Total productive wells | 458 | 375.5 | 2 | 2.0 | 460 | 377.5 |
Primarily Oil | Primarily Natural Gas | Total | ||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||
Total productive wells | 509 | 429.1 | 1 | 1.0 | 510 | 430.1 |
Developed | Undeveloped | Total | ||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||
Total acreage | 89.9 | 76.9 | 8.3 | 7.3 | 98.2 | 84.2 |
Developed | Undeveloped | Total | ||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||
Total acreage | 91.4 | 79.7 | 8.8 | 7.7 | 100.2 | 87.4 |
2019 | 2020 | 2021 | Thereafter | |||||
Expirations by year | 0.7 | 5.5 | 0.9 | 0.2 |
2020 | 2021 | 2022 | Thereafter | |||||
Expirations by year | 4.8 | 0.9 | 2.0 | 0.0 |
Item 3 | Legal Proceedings |
Item 4 | Mine Safety Disclosures |
Item 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
November 15, | December 31, | November 15, | December 31, | |||||||||||||||||||||||||||||||
2016 | 2016 | 2017 | 2018 | 2016 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||||||||
Penn Virginia Corporation | $ | 100.00 | $ | 120.62 | $ | 96.27 | $ | 133.05 | $ | 100.00 | $ | 120.62 | $ | 96.27 | $ | 133.07 | $ | 74.71 | ||||||||||||||||
S&P SmallCap 600 Index | $ | 100.00 | $ | 116.34 | $ | 131.74 | $ | 120.56 | $ | 100.00 | $ | 116.34 | $ | 131.74 | $ | 120.56 | $ | 148.03 | ||||||||||||||||
S&P 600 Oil & Gas Exploration & Production Index | $ | 100.00 | $ | 115.64 | $ | 81.84 | $ | 45.36 | $ | 100.00 | $ | 114.11 | $ | 70.37 | $ | 42.30 | $ | 31.04 |
Item 6 | Selected Financial Data |
(in thousands, except per share amounts, production and reserves) | (in thousands, except per share amounts, production and reserves) | |||||||||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | Successor 1 | Predecessor 1 | |||||||||||||||||||||||||||||||||||||||||||||
September 13 | January 1 | September 13 | January 1 | |||||||||||||||||||||||||||||||||||||||||||||
Year Ended | Through | Through | Year Ended | Year Ended | Through | Through | Year Ended | |||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | September 12, | December 31, | December 31, | December 31, | September 12, | December 31, | |||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2015 | 2014 | 2019 | 2018 | 2017 | 2016 | 2016 | 2015 | |||||||||||||||||||||||||||||||||||||
Statements of Operations and Other Data: | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 440,832 | $ | 160,054 | $ | 39,003 | $ | 94,310 | $ | 305,298 | $ | 636,773 | ||||||||||||||||||||||||||||||||||||
Operating income (loss)1, 2 | $ | 208,755 | $ | 51,872 | $ | 11,413 | $ | (20,867 | ) | $ | (1,564,976 | ) | $ | (615,920 | ) | |||||||||||||||||||||||||||||||||
Net income (loss) 3 | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,054,602 | $ | (1,582,961 | ) | $ | (409,592 | ) | |||||||||||||||||||||||||||||||||
Preferred stock dividends 4 | $ | — | $ | — | $ | — | $ | 5,972 | $ | 22,789 | $ | 17,148 | ||||||||||||||||||||||||||||||||||||
Revenues 2 | $ | 471,216 | $ | 440,832 | $ | 160,054 | $ | 39,003 | $ | 94,310 | $ | 305,298 | ||||||||||||||||||||||||||||||||||||
Operating income (loss) 3 | $ | 176,821 | $ | 208,755 | $ | 51,872 | $ | 11,413 | $ | (20,867 | ) | $ | (1,564,976 | ) | ||||||||||||||||||||||||||||||||||
Net income (loss) 4 | $ | 70,589 | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,054,602 | $ | (1,582,961 | ) | ||||||||||||||||||||||||||||||||||
Preferred stock dividends | $ | — | $ | — | $ | — | $ | — | $ | 5,972 | $ | 22,789 | ||||||||||||||||||||||||||||||||||||
Income (loss) attributable to common shareholders | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,048,630 | $ | (1,605,750 | ) | $ | (430,996 | ) | $ | 70,589 | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,048,630 | $ | (1,605,750 | ) | |||||||||||||||||||
Income (loss) per common share, basic | $ | 14.93 | $ | 2.18 | $ | (0.35 | ) | $ | 11.91 | $ | (21.81 | ) | $ | (6.26 | ) | $ | 4.67 | $ | 14.93 | $ | 2.18 | $ | (0.35 | ) | $ | 11.91 | $ | (21.81 | ) | |||||||||||||||||||
Income (loss) per common share, diluted | $ | 14.70 | $ | 2.17 | $ | (0.35 | ) | $ | 8.50 | $ | (21.81 | ) | $ | (6.26 | ) | $ | 4.67 | $ | 14.70 | $ | 2.17 | $ | (0.35 | ) | $ | 8.50 | $ | (21.81 | ) | |||||||||||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic | 15,059 | 14,996 | 14,992 | 88,013 | 73,639 | 68,887 | 15,110 | 15,059 | 14,996 | 14,992 | 88,013 | 73,639 | ||||||||||||||||||||||||||||||||||||
Diluted | 15,292 | 15,063 | 14,992 | 124,087 | 73,639 | 68,887 | 15,126 | 15,292 | 15,063 | 14,992 | 124,087 | 73,639 | ||||||||||||||||||||||||||||||||||||
Dividends declared per share | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Cash provided by operating activities | $ | 272,132 | $ | 81,710 | $ | 30,774 | $ | 30,247 | $ | 169,303 | $ | 282,724 | $ | 320,194 | $ | 272,132 | $ | 81,710 | $ | 30,774 | $ | 30,247 | $ | 169,303 | ||||||||||||||||||||||||
Cash paid for capital expenditures | $ | 430,592 | $ | 115,687 | $ | 4,812 | $ | 15,359 | $ | 364,844 | $ | 774,139 | $ | 362,743 | $ | 430,592 | $ | 115,687 | $ | 4,812 | $ | 15,359 | $ | 364,844 | ||||||||||||||||||||||||
Total production (MBOE) | 7,944 | 3,779 | 1,039 | 3,346 | 7,923 | 7,934 | 10,121 | 7,944 | 3,779 | 1,039 | 3,346 | 7,923 | ||||||||||||||||||||||||||||||||||||
December 31, | September 12, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, | September 12, | December 31, | 2019 | 2018 | 2017 | 2016 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||||||
Balance Sheet and Other Data: | 2018 | 2017 | 2016 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | $ | 927,994 | $ | 529,059 | $ | 247,473 | $ | 253,510 | $ | 344,395 | $ | 1,825,098 | $ | 1,120,425 | $ | 927,994 | $ | 529,059 | $ | 247,473 | $ | 253,510 | $ | 344,395 | ||||||||||||||||||||||||
Total assets | $ | 1,068,954 | $ | 629,597 | $ | 291,686 | $ | 333,974 | $ | 517,725 | $ | 2,201,810 | $ | 1,218,238 | $ | 1,068,954 | $ | 629,597 | $ | 291,686 | $ | 333,974 | $ | 517,725 | ||||||||||||||||||||||||
Total debt | $ | 511,375 | $ | 265,267 | $ | 25,000 | $ | 75,350 | $ | 1,224,383 | $ | 1,085,429 | $ | 555,028 | $ | 511,375 | $ | 265,267 | $ | 25,000 | $ | 75,350 | $ | 1,224,383 | ||||||||||||||||||||||||
Shareholders’ equity (deficit) | $ | 447,355 | $ | 221,639 | $ | 185,548 | $ | 190,895 | $ | (915,121 | ) | $ | 675,817 | $ | 520,745 | $ | 447,355 | $ | 221,639 | $ | 185,548 | $ | 190,895 | $ | (915,121 | ) | ||||||||||||||||||||||
Actual shares outstanding at period-end | 15,081 | 15,019 | 14,992 | 14,992 | 81,253 | 71,569 | 15,136 | 15,081 | 15,019 | 14,992 | 14,992 | 81,253 | ||||||||||||||||||||||||||||||||||||
Proved reserves as of December 31,(MMBOE) | 123 | 73 | 49 | N/A | 44 | 115 | ||||||||||||||||||||||||||||||||||||||||||
Proved reserves as of December 31, (MMBOE) | 133 | 123 | 73 | 49 | N/A | 44 |
1 | Upon our emergence from bankruptcy, we adopted and applied fresh start accounting. Accordingly, our financial statements for periods after September 12, 2016 are not comparable to those prior to that date. Financial information for the periods up to and including September 12, 2016 are referred to herein as those of the “Predecessor” while those beginning on September 13, 2016 and all periods thereafter are referenced as those of the “Successor.” |
2 |
3 | Operating income (loss) for the year ended December 31, 2019 reflects the application of ASC Topic 842, Leases, or ASC Topic 842. The adoption of ASC Topic 842 impacts the presentation and comparability of lease expense between the year ended December 31, 2019 with all prior periods. See “Presentation of Financial Information and Changes in Accounting Principles” included in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 2 to our Consolidated Financial Statements included in Part II, Item 8, “Financial Statements and Supplementary Data.” |
3 | Net income (loss) and Income (loss) attributable to common shareholders for the year ended December 31, 2018 and the period of January 1 through September 12, 2016 includes reorganization items resulting in income attributable to our bankruptcy proceedings of $3.3 million and $1.1 billion, respectively. |
Item 7 | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
(in thousands except per unit measurements, production, wells and reserves) | |||||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||||||||||||||||||||||||
September 13 | January 1 | (in thousands except per unit measurements, production, wells and reserves) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Through | Through | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
December 31, | September 30, | Year Ended December 31, | December 31, | September 12, | December 31, | September 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2016 | 2016 | 2019 | 2019 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||||||
Total production (MBOE) | 2,363 | 2,108 | 7,944 | 3,779 | 1,039 | 3,346 | 2,697 | 2,668 | 10,121 | 7,944 | 3,779 | ||||||||||||||||||||||||||||||||
Average daily production (BOEPD) | 25,686 | 22,912 | 21,765 | 10,353 | 9,449 | 13,071 | 29,314 | 29,003 | 27,730 | 21,765 | 10,353 | ||||||||||||||||||||||||||||||||
Crude oil production (MBbl) | 1,818 | 1,633 | 6,077 | 2,764 | 710 | 2,311 | 2,043 | 1,937 | 7,453 | 6,077 | 2,764 | ||||||||||||||||||||||||||||||||
Crude oil production as a percent of total | 77 | % | 77 | % | 76 | % | 73 | % | 68 | % | 69 | % | 76 | % | 73 | % | 74 | % | 76 | % | 73 | % | |||||||||||||||||||||
Product revenues | $ | 124,572 | $ | 126,803 | $ | 439,530 | $ | 159,469 | $ | 38,654 | $ | 93,649 | $ | 123,196 | $ | 118,379 | $ | 469,035 | $ | 439,530 | $ | 159,469 | |||||||||||||||||||||
Crude oil revenues | $ | 112,452 | $ | 117,059 | $ | 402,485 | $ | 140,886 | $ | 33,157 | $ | 81,377 | $ | 115,252 | $ | 110,618 | $ | 434,713 | $ | 402,485 | $ | 140,886 | |||||||||||||||||||||
Crude oil revenues as a percent of total | 90 | % | 92 | % | 92 | % | 88 | % | 86 | % | 87 | % | 94 | % | 93 | % | 93 | % | 92 | % | 88 | % | |||||||||||||||||||||
Realized prices: | |||||||||||||||||||||||||||||||||||||||||||
Crude oil ($ per Bbl) | $ | 61.84 | $ | 71.67 | $ | 66.23 | $ | 50.96 | $ | 46.68 | $ | 35.21 | $ | 56.40 | $ | 57.12 | $ | 58.33 | $ | 66.23 | $ | 50.96 | |||||||||||||||||||||
NGL ($ per Bbl) 1 | $ | 21.79 | $ | 22.41 | $ | 20.99 | $ | 19.25 | $ | 16.56 | $ | 11.37 | $ | 10.74 | $ | 8.54 | $ | 11.13 | $ | 20.99 | $ | 19.25 | |||||||||||||||||||||
Natural gas ($ per Mcf) | $ | 3.80 | $ | 3.02 | $ | 3.08 | $ | 2.89 | $ | 2.81 | $ | 2.06 | $ | 2.34 | $ | 2.22 | $ | 2.51 | $ | 3.08 | $ | 2.89 | |||||||||||||||||||||
Aggregate ($ per BOE) | $ | 52.72 | $ | 60.16 | $ | 55.33 | $ | 42.20 | $ | 37.19 | $ | 27.99 | $ | 45.68 | $ | 44.37 | $ | 46.34 | $ | 55.33 | $ | 42.20 | |||||||||||||||||||||
Prices, adjusted for derivatives:: | |||||||||||||||||||||||||||||||||||||||||||
Crude oil ($ per Bbl) | $ | 54.64 | $ | 62.36 | $ | 58.28 | $ | 49.69 | $ | 47.22 | $ | 55.98 | $ | 56.50 | $ | 56.90 | $ | 57.78 | $ | 58.28 | $ | 49.69 | |||||||||||||||||||||
Aggregate ($ per BOE) | $ | 47.17 | $ | 52.94 | $ | 49.25 | $ | 41.27 | $ | 37.56 | $ | 42.33 | $ | 45.75 | $ | 44.21 | $ | 45.93 | $ | 49.25 | $ | 41.27 | |||||||||||||||||||||
Production and lifting costs ($ per BOE): | |||||||||||||||||||||||||||||||||||||||||||
Lease operating | $ | 4.21 | $ | 4.70 | $ | 4.52 | $ | 5.76 | $ | 5.13 | $ | 4.67 | $ | 3.65 | $ | 4.45 | $ | 4.26 | $ | 4.52 | $ | 5.76 | |||||||||||||||||||||
Gathering, processing and transportation 1 | $ | 2.44 | $ | 2.34 | $ | 2.34 | $ | 2.84 | $ | 2.93 | $ | 3.96 | $ | 2.32 | $ | 2.47 | $ | 2.29 | $ | 2.34 | $ | 2.84 | |||||||||||||||||||||
Production and ad valorem taxes ($ per BOE) | $ | 2.75 | $ | 3.39 | $ | 2.96 | $ | 2.33 | $ | 2.40 | $ | 1.04 | $ | 2.74 | $ | 2.77 | $ | 2.77 | $ | 2.96 | $ | 2.33 | |||||||||||||||||||||
General and administrative ($ per BOE) 2 | $ | 3.43 | $ | 2.92 | $ | 3.28 | $ | 4.82 | $ | 4.88 | $ | 11.64 | $ | 1.97 | $ | 2.58 | $ | 2.52 | $ | 3.28 | $ | 4.82 | |||||||||||||||||||||
Depreciation, depletion and amortization ($ per BOE) 3 | $ | 16.75 | $ | 16.61 | $ | 16.11 | $ | 12.87 | $ | 11.21 | $ | 10.04 | |||||||||||||||||||||||||||||||
Capital expenditure program costs 4 | $ | 105,099 | $ | 104,589 | $ | 418,951 | $ | 129,827 | $ | 5,454 | $ | 4,113 | |||||||||||||||||||||||||||||||
Cash provided by operating activities 5 | $ | 79,227 | $ | 72,487 | $ | 272,132 | $ | 81,710 | $ | 30,774 | $ | 30,247 | |||||||||||||||||||||||||||||||
Cash paid for capital expenditures 6 | $ | 107,333 | $ | 121,909 | $ | 430,592 | $ | 115,687 | $ | 4,812 | $ | 15,359 | |||||||||||||||||||||||||||||||
Depreciation, depletion and amortization ($ per BOE) | $ | 16.64 | $ | 17.43 | $ | 17.25 | $ | 16.11 | $ | 12.87 | |||||||||||||||||||||||||||||||||
Capital expenditure program costs 3 | $ | 64,623 | $ | 99,068 | $ | 355,851 | $ | 418,951 | $ | 129,827 | |||||||||||||||||||||||||||||||||
Cash provided by operating activities 4 | $ | 75,981 | $ | 89,851 | $ | 320,194 | $ | 272,132 | $ | 81,710 | |||||||||||||||||||||||||||||||||
Cash paid for capital expenditures 5 | $ | 71,010 | $ | 115,792 | $ | 362,743 | $ | 430,592 | $ | 115,687 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 17,864 | $ | 8,011 | $ | 17,864 | $ | 11,017 | $ | 6,761 | $ | 31,414 | $ | 7,798 | $ | 11,387 | $ | 7,798 | $ | 17,864 | $ | 11,017 | |||||||||||||||||||||
Debt outstanding, net of discount and issue costs, at end of period | $ | 511,375 | $ | 472,344 | $ | 511,375 | $ | 265,267 | $ | 25,000 | $ | 75,350 | $ | 555,028 | $ | 562,445 | $ | 555,028 | $ | 511,375 | $ | 265,267 | |||||||||||||||||||||
Credit available under credit facility at end of period | $ | 128,600 | $ | 57,100 | $ | 128,600 | $ | 159,745 | $ | 102,233 | $ | 51,883 | $ | 137,200 | $ | 129,200 | $ | 137,200 | $ | 128,600 | $ | 159,745 | |||||||||||||||||||||
Net development wells drilled and completed | 8.9 | 9.7 | 45.5 | 16.9 | — | 2.9 | 9.9 | 18.3 | 43.3 | 45.5 | 16.9 | ||||||||||||||||||||||||||||||||
Proved reserves at the end of the period (MMBOE) | 123 | N/A | 123 | 73 | 49 | N/A | 133 | N/A | 133 | 123 | 73 |
1 | The effects of the adoption of ASC Topic 606, if applied to |
2 | Includes combined amounts of |
3 |
Includes amounts accrued and excludes capitalized interest and capitalized labor. |
Includes net cash received for derivative settlements of $0.2 million and net cash paid for derivative settlements of |
Represents actual cash paid for capital expenditures including capitalized interest and capitalized labor. |
WTI Volumes | WTI Average Swap Price | LLS Volumes | LLS Average Swap Price | ||||||||||
(Barrels per day) | ($ per barrel) | (Barrels per day) | ($ per barrel) | ||||||||||
Remainder of 2019 | 6,407 | $ | 54.49 | 5,000 | $ | 59.17 | |||||||
2020 | 6,000 | $ | 54.09 | — | — |
WTI - Oil Volumes | WTI Average Price | MEH - Oil Volumes | MEH Average Price | ||||||||||
Swaps | (Barrels per day) | ($ per barrel) | (Barrels per day) | ($ per barrel) | |||||||||
1Q - 2020 | 15,648 | $ | 55.34 | 2,000 | $ | 61.03 | |||||||
2Q - 2020 | 10,648 | $ | 55.35 | 2,000 | $ | 61.03 | |||||||
3Q - 2020 | 8,630 | $ | 55.20 | 2,000 | $ | 61.03 | |||||||
4Q - 2020 | 8,630 | $ | 55.20 | 2,000 | $ | 61.03 | |||||||
1Q - 2021 | 3,333 | $ | 55.89 | — | $ | — | |||||||
2Q - 2021 | 3,297 | $ | 55.89 | — | $ | — | |||||||
3Q - 2021 | 1,630 | $ | 55.50 | — | $ | — | |||||||
4Q - 2021 | 1,630 | $ | 55.50 | — | $ | — |
WTI - Oil Volumes | WTI Floor Price | WTI Ceiling Price | ||||||||
Collars | (Barrels per day) | ($ per barrel) | ($ per barrel) | |||||||
2Q - 2020 | 5,297 | $ | 52.36 | �� | $ | 57.60 | ||||
3Q - 2020 | 6,891 | $ | 52.97 | $ | 58.03 | |||||
4Q - 2020 | 2,000 | $ | 48.00 | $ | 57.10 | |||||
1Q - 2021 | 1,667 | $ | 55.00 | $ | 58.00 | |||||
2Q - 2021 | 1,648 | $ | 55.00 | $ | 58.00 |
WTI - Oil Volumes | WTI Put Price | |||||
Sold Puts | (Barrels per day) | ($ per barrel) | ||||
1Q - 2021 | 5,000 | $ | 44.00 | |||
2Q - 2021 | 4,945 | $ | 44.00 | |||
3Q - 2021 | 1,630 | $ | 44.00 | |||
4Q - 2021 | 1,630 | $ | 44.00 |
Henry Hub - Gas Volumes | Henry Hub Floor Price | Henry Hub Ceiling Price | ||||||||
Collars | (MMBtu/d) | ($/MMBtu) | ($/MMBtu) | |||||||
1Q - 2020 | 5,934 | $ | 2.00 | $ | 2.18 | |||||
2Q - 2020 | 8,901 | $ | 2.00 | $ | 2.18 | |||||
3Q - 2020 | 8,804 | $ | 2.00 | $ | 2.18 | |||||
4Q - 2020 | 8,804 | $ | 2.00 | $ | 2.18 |
Borrowings Outstanding | ||||||||||
Weighted- Average | Maximum | Weighted- Average Rate | ||||||||
Three months ended December 31, 2018 | $ | 305,217 | $ | 321,000 | 6.25 | % | ||||
Year ended December 31, 2018 | $ | 230,934 | $ | 321,000 | 5.76 | % |
Borrowings Outstanding | ||||||||||||||
End of Period | Weighted- Average | Maximum | Weighted- Average Rate | |||||||||||
Three months ended December 31, 2019 | $ | 362,400 | $ | 381,465 | $ | 384,400 | 4.06 | % | ||||||
Year ended December 31, 2019 | $ | 362,400 | $ | 349,713 | $ | 384,400 | 4.79 | % |
Year Ended | Year Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||
Cash flows from operating activities | ||||||||||||||
Operating cash flows, net of working capital changes | $ | 346,780 | $ | 91,365 | $ | 356,321 | $ | 346,780 | ||||||
Crude oil derivative settlements paid, net | (48,291 | ) | (3,511 | ) | (4,136 | ) | (48,291 | ) | ||||||
Interest payments, net of amounts capitalized | (22,599 | ) | (4,102 | ) | (32,398 | ) | (22,599 | ) | ||||||
Income tax refunds | 2,471 | — | ||||||||||||
Acquisition, divestiture and strategic transaction costs paid | (2,968 | ) | (1,088 | ) | (1,985 | ) | (2,968 | ) | ||||||
Reorganization items paid, net | (540 | ) | (954 | ) | ||||||||||
Reorganization-related administration fees and costs paid, net | (79 | ) | (540 | ) | ||||||||||
Consulting costs paid to former Executive Chairman | (250 | ) | — | — | (250 | ) | ||||||||
Net cash provided by operating activities | 272,132 | 81,710 | 320,194 | 272,132 | ||||||||||
Cash flows from investing activities | ||||||||||||||
Acquisitions, net | (85,387 | ) | (200,849 | ) | (6,516 | ) | (85,387 | ) | ||||||
Capital expenditures | (430,592 | ) | (115,687 | ) | (362,743 | ) | (430,592 | ) | ||||||
Proceeds from sales of assets, net | 7,683 | 869 | 215 | 7,683 | ||||||||||
Net cash used in investing activities | (508,296 | ) | (315,667 | ) | (369,044 | ) | (508,296 | ) | ||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from credit facility borrowings, net | 244,000 | 52,000 | 41,400 | 244,000 | ||||||||||
Proceeds from second lien facility, net | — | 196,000 | ||||||||||||
Debt issuance costs paid | (989 | ) | (9,787 | ) | (2,616 | ) | (989 | ) | ||||||
Proceeds from rights offering, net | — | 55 | ||||||||||||
Other, net | — | (55 | ) | |||||||||||
Net cash provided by financing activities | 243,011 | 238,213 | 38,784 | 243,011 | ||||||||||
Net increase in cash and cash equivalents | $ | 6,847 | $ | 4,256 | ||||||||||
Net increase (decrease) in cash and cash equivalents | $ | (10,066 | ) | $ | 6,847 |
Year Ended | Year Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||
Drilling and completion | $ | 405,677 | $ | 125,235 | $ | 344,542 | $ | 405,677 | ||||||
Lease acquisitions and other land-related costs | 5,180 | 4,493 | 3,433 | 5,180 | ||||||||||
Geological, geophysical (seismic) and delay rental costs | 377 | 696 | 363 | 377 | ||||||||||
Pipeline, gathering facilities and other equipment, net | 7,717 | (597 | ) | 7,513 | 7,717 | |||||||||
$ | 418,951 | $ | 129,827 | $ | 355,851 | $ | 418,951 |
Year Ended | Year Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||
Total capital program costs (from above) | $ | 418,951 | $ | 129,827 | ||||||||||
Increase in accrued capitalized costs | (44 | ) | (19,910 | ) | ||||||||||
Total capital expenditures program costs (from above) | $ | 355,851 | $ | 418,951 | ||||||||||
Decrease (increase) in accrued capitalized costs | 3,602 | (44 | ) | |||||||||||
Less: | ||||||||||||||
Transfers from tubular inventory and well materials | (10,056 | ) | (3,326 | ) | (10,971 | ) | (10,056 | ) | ||||||
Sales & use tax refunds received and applied to property accounts | (643 | ) | (2,265 | ) | (3,816 | ) | (643 | ) | ||||||
Other, net | (115 | ) | — | |||||||||||
Add: | ||||||||||||||
Tubular inventory and well materials purchased in advance of drilling | 9,578 | 6,252 | 9,967 | 9,578 | ||||||||||
Capitalized internal labor | 3,688 | 2,384 | 4,089 | 3,688 | ||||||||||
Capitalized interest | 9,118 | 2,725 | 4,136 | 9,118 | ||||||||||
Total cash paid for capital expenditures | $ | 430,592 | $ | 115,687 | $ | 362,743 | $ | 430,592 |
December 31, | December 31, | |||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||
Credit Facility borrowings | $ | 321,000 | $ | 77,000 | $ | 362,400 | $ | 321,000 | ||||||
Second Lien Facility term loans, net of original issue discount and issuance costs | 190,375 | 188,267 | 192,628 | 190,375 | ||||||||||
Total debt | 511,375 | 265,267 | 555,028 | 511,375 | ||||||||||
Shareholders’ equity | 447,355 | 221,639 | 520,745 | 447,355 | ||||||||||
Total capitalization | $ | 958,730 | $ | 486,906 | $ | 1,075,773 | $ | 958,730 | ||||||
Debt as a % of total capitalization | 53 | % | 54 | % | 52 | % | 53 | % |
Total Production | ||||||||
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Crude oil (MBbl) | 7,453 | 6,077 | 2,764 | |||||
NGLs (MBbl) | 1,491 | 1,004 | 523 | |||||
Natural gas (MMcf) | 7,067 | 5,181 | 2,949 | |||||
Total (MBOE) | 10,121 | 7,944 | 3,779 | |||||
2019 vs 2018 Variance (MBOE) | 2,177 | |||||||
% Change | 27 | % | ||||||
2018 vs. 2017 Variance (MBOE) | 4,165 | |||||||
% Change | 110 | % | ||||||
Average Daily Production | ||||||||
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
Crude oil (Bbl per day) | 20,418 | 16,650 | 7,573 | |||||
NGLs (Bbl per day) | 4,085 | 2,750 | 1,432 | |||||
Natural gas (MMcf per day) | 19 | 14 | 8 | |||||
Total (BOEPD) | 27,730 | 21,765 | 10,353 | |||||
2019 vs 2018 Variance (BOEPD) | 5,965 | |||||||
% Change | 27 | % | ||||||
2018 vs. 2017 Variance (BOEPD) | 11,412 | |||||||
% Change | 110 | % |
Total Production | ||||||||||||
Successor | Predecessor | |||||||||||
September 13 Through | January 1 Through | |||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||
Crude oil (MBbl) | 6,077 | 2,764 | 710 | 2,311 | ||||||||
NGLs (MBbl) | 1,004 | 523 | 164 | 533 | ||||||||
Natural gas (MMcf) | 5,181 | 2,949 | 994 | 3,012 | ||||||||
Total (MBOE) | 7,944 | 3,779 | 1,039 | 3,346 | ||||||||
2018 vs 2017 Variance (MBOE) | 4,165 | |||||||||||
% Change | 110 | % | ||||||||||
2017 vs. Combined 2016 Variance (MBOE) | (606 | ) | ||||||||||
% Change | (14 | )% | ||||||||||
Average Daily Production | ||||||||||||
September 13 Through | January 1 Through | |||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||
Crude oil (Bbl per day) | 16,650 | 7,573 | 6,457 | 9,028 | ||||||||
NGLs (Bbl per day) | 2,750 | 1,432 | 1,486 | 2,083 | ||||||||
Natural gas (MMcf per day) | 14 | 8 | 9 | 12 | ||||||||
Total (BOEPD) | 21,765 | 10,353 | 9,449 | 13,071 | ||||||||
2018 vs 2017 Variance (BOEPD) | 11,412 | |||||||||||
% Change | 110 | % | ||||||||||
2017 vs. Combined 2016 Variance (BOEPD) | (1,631 | ) | ||||||||||
% Change | (14 | )% | ||||||||||
Total Production by Region | ||||||||||||
September 13 Through | January 1 Through | |||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||
South Texas | 7,780 | 3,487 | 937 | 3,071 | ||||||||
Divested properties 1 | 165 | 292 | 103 | 276 | ||||||||
Total (MBOE) | 7,944 | 3,779 | 1,039 | 3,346 | ||||||||
2018 vs 2017 Variance (MBOE) | 4,165 | |||||||||||
% Change | 110 | % | ||||||||||
2017 vs. Combined 2016 Variance (MBOE) | (606 | ) | ||||||||||
% Change | (14 | )% | ||||||||||
Average Daily Production by Region | ||||||||||||
September 13 Through | January 1 Through | |||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||
South Texas | 21,314 | 9,553 | 8,515 | 11,995 | ||||||||
Divested properties 1 | 451 | 800 | 934 | 1,076 | ||||||||
Total (BOEPD) | 21,765 | 10,353 | 9,449 | 13,071 | ||||||||
2018 vs 2017 Variance (BOEPD) | 11.412 | |||||||||||
% Change | 110 | % | ||||||||||
2017 vs. Combined 2016 Variance (BOEPD) | (1,631 | ) | ||||||||||
% Change | (14 | )% |
Total Production by Region | ||||||||
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
South Texas | 10,121 | 7,780 | 3,487 | |||||
Mid-Continent 1 | — | 165 | 292 | |||||
Total (MBOE) | 10,121 | 7,944 | 3,779 | |||||
2019 vs 2018 Variance (MBOE) | 2,177 | |||||||
% Change | 27 | % | ||||||
2018 vs. 2017 Variance (MBOE) | 4,165 | |||||||
% Change | 110 | % | ||||||
Average Daily Production by Region | ||||||||
Year Ended December 31, | ||||||||
2019 | 2018 | 2017 | ||||||
South Texas | 27,730 | 21,314 | 9,553 | |||||
Mid-Continent 1 | — | 451 | 800 | |||||
Total (BOEPD) | 27,730 | 21,765 | 10,353 | |||||
2019 vs 2018 Variance (BOEPD) | 5,965 | |||||||
% Change | 27 | % | ||||||
2018 vs. 2017 Variance (BOEPD) | 11,412 | |||||||
% Change | 110 | % |
Total Product Revenues | |||||||||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | Total Product Revenues | |||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Crude oil | $ | 402,485 | $ | 140,886 | $ | 33,157 | $ | 81,377 | $ | 434,713 | $ | 402,485 | $ | 140,886 | |||||||||||||
NGLs | 21,073 | 10,066 | 2,707 | 6,064 | 16,589 | 21,073 | 10,066 | ||||||||||||||||||||
Natural gas | 15,972 | 8,517 | 2,790 | 6,208 | 17,733 | 15,972 | 8,517 | ||||||||||||||||||||
Total | $ | 439,530 | $ | 159,469 | $ | 38,654 | $ | 93,649 | $ | 469,035 | $ | 439,530 | $ | 159,469 | |||||||||||||
2019 vs. 2018 Variance | $ | 29,505 | |||||||||||||||||||||||||
% Change | 7 | % | |||||||||||||||||||||||||
2018 vs. 2017 Variance | $ | 280,061 | $ | 280,061 | |||||||||||||||||||||||
% Change | 176 | % | 176 | % | |||||||||||||||||||||||
2017 vs. Combined 2016 Variance | $ | 27,166 | |||||||||||||||||||||||||
% Change | 21 | % | |||||||||||||||||||||||||
Product Revenues per Unit of Volume | |||||||||||||||||||||||||||
September 13 Through | January 1 Through | Product Revenues per Unit of Volume | |||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Crude oil ($ per barrel) | $ | 66.23 | $ | 50.96 | $ | 46.68 | $ | 35.21 | $ | 58.33 | $ | 66.23 | $ | 50.96 | |||||||||||||
NGLs ($ per barrel) | $ | 20.99 | $ | 19.25 | $ | 16.56 | $ | 11.37 | $ | 11.13 | $ | 20.99 | $ | 19.25 | |||||||||||||
Natural gas ($ per Mcf) | $ | 3.08 | $ | 2.89 | $ | 2.81 | $ | 2.06 | $ | 2.51 | $ | 3.08 | $ | 2.89 | |||||||||||||
Total ($ per BOE) | $ | 55.33 | $ | 42.20 | $ | 37.19 | $ | 27.99 | $ | 46.34 | $ | 55.33 | $ | 42.20 | |||||||||||||
2019 vs. 2018 Variance ($ per BOE) | $ | (8.99 | ) | ||||||||||||||||||||||||
% Change | (16 | )% | |||||||||||||||||||||||||
2018 vs. 2017 Variance ($ per BOE) | $ | 13.13 | $ | 13.13 | |||||||||||||||||||||||
% Change | 31 | % | 31 | % | |||||||||||||||||||||||
2017 vs. Combined 2016 Variance ($ per BOE) | $ | 12.03 | |||||||||||||||||||||||||
% Change | 40 | % | |||||||||||||||||||||||||
Product Revenues by Region | |||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | |||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | ||||||||||||||||||||||||
South Texas | $ | 435,599 | $ | 152,521 | $ | 36,261 | $ | 88,849 | |||||||||||||||||||
Divested properties 1 | 3,931 | 6,948 | 2,393 | 4,800 | |||||||||||||||||||||||
Total | $ | 439,530 | $ | 159,469 | $ | 38,654 | $ | 93,649 | |||||||||||||||||||
2018 vs. 2017 Variance | $ | 280,061 | |||||||||||||||||||||||||
% Change | 176 | % | |||||||||||||||||||||||||
2017 vs. Combined 2016 Variance | $ | 27,166 | |||||||||||||||||||||||||
% Change | 21 | % | |||||||||||||||||||||||||
Product Revenues per BOE by Region | |||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | |||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | ||||||||||||||||||||||||
South Texas | $ | 55.99 | $ | 43.74 | $ | 38.71 | $ | 28.94 | |||||||||||||||||||
Divested properties 1 | $ | 23.87 | $ | 23.79 | $ | 23.29 | $ | 17.42 | |||||||||||||||||||
Total ($ per BOE) | $ | 55.33 | $ | 42.20 | $ | 37.19 | $ | 27.99 | |||||||||||||||||||
2018 vs. 2017 Variance ($ per BOE) | $ | 13.13 | |||||||||||||||||||||||||
% Change | 31 | % | |||||||||||||||||||||||||
2017 vs. Combined 2016 Variance ($ per BOE) | $ | 12.03 | |||||||||||||||||||||||||
% Change | 40 | % |
Product Revenues by Region | |||||||||||
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
South Texas | $ | 469,035 | $ | 435,599 | $ | 152,521 | |||||
Divested properties 1 | — | 3,931 | 6,948 | ||||||||
Total | $ | 469,035 | $ | 439,530 | $ | 159,469 | |||||
2019 vs. 2018 Variance | $ | 29,505 | |||||||||
% Change | 7 | % | |||||||||
2018 vs. 2017 Variance | $ | 280,061 | |||||||||
% Change | 176 | % | |||||||||
Product Revenues per BOE by Region | |||||||||||
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
South Texas | $ | 46.34 | $ | 55.99 | $ | 43.74 | |||||
Divested properties 1 | $ | — | $ | 23.87 | $ | 23.79 | |||||
Total ($ per BOE) | $ | 46.34 | $ | 55.33 | $ | 42.20 | |||||
2019 vs. 2018 Variance ($ per BOE) | $ | (8.99 | ) | ||||||||
% Change | (16 | )% | |||||||||
2018 vs. 2017 Variance ($ per BOE) | $ | 13.13 | |||||||||
% Change | 31 | % |
Year Ended December 31, 2017 vs. | ||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2018 vs. | Combined Successor and Predecessor | Year Ended December 31, 2019 vs. | Year Ended December 31, 2018 vs. | |||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2017 | Periods Ended December 31, 2016 | Year Ended December 31, 2018 | Year Ended December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||
Revenue Variance Due to | Revenue Variance Due to | Revenue Variance Due to | Revenue Variance Due to | |||||||||||||||||||||||||||||||||||||||||||
Volume | Price | Total | Volume | Price | Total | Volume | Price | Total | Volume | Price | Total | |||||||||||||||||||||||||||||||||||
Crude oil | $ | 168,812 | $ | 92,787 | $ | 261,599 | $ | (9,742 | ) | $ | 36,094 | $ | 26,352 | $ | 91,108 | $ | (58,880 | ) | $ | 32,228 | $ | 168,812 | $ | 92,787 | $ | 261,599 | ||||||||||||||||||||
NGLs | 9,259 | 1,748 | 11,007 | (2,188 | ) | 3,483 | 1,295 | 10,227 | (14,711 | ) | (4,484 | ) | 9,259 | 1,748 | 11,007 | |||||||||||||||||||||||||||||||
Natural gas | 6,448 | 1,007 | 7,455 | (2,378 | ) | 1,897 | (481 | ) | 5,815 | (4,054 | ) | 1,761 | 6,448 | 1,007 | 7,455 | |||||||||||||||||||||||||||||||
$ | 184,519 | $ | 95,542 | $ | 280,061 | $ | (14,308 | ) | $ | 41,474 | $ | 27,166 | $ | 107,150 | $ | (77,645 | ) | $ | 29,505 | $ | 184,519 | $ | 95,542 | $ | 280,061 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Realized crude oil prices per barrel | $ | 58.33 | $ | 66.23 | $ | 50.96 | |||||
Weighted-average WTI prices | 57.04 | 65.56 | 51.34 | ||||||||
Realized differential to WTI per barrel | $ | 1.29 | $ | 0.67 | $ | (0.38 | ) |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Crude oil revenues as reported | $ | 402,485 | $ | 140,886 | $ | 33,157 | $ | 81,377 | $ | 434,713 | $ | 402,485 | $ | 140,886 | |||||||||||||
Derivative settlements, net | (48,291 | ) | (3,511 | ) | 384 | 48,008 | (4,136 | ) | (48,291 | ) | (3,511 | ) | |||||||||||||||
$ | 354,194 | $ | 137,375 | $ | 33,541 | $ | 129,385 | $ | 430,577 | $ | 354,194 | $ | 137,375 | ||||||||||||||
Crude oil prices per Bbl, as reported | $ | 66.23 | $ | 50.96 | $ | 46.68 | $ | 35.21 | $ | 58.33 | $ | 66.23 | $ | 50.96 | |||||||||||||
Derivative settlements per Bbl | (7.95 | ) | (1.27 | ) | 0.54 | 20.77 | (0.55 | ) | (7.95 | ) | (1.27 | ) | |||||||||||||||
$ | 58.28 | $ | 49.69 | $ | 47.22 | $ | 55.98 | $ | 57.78 | $ | 58.28 | $ | 49.69 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Gain (loss) on sales of assets, net | $ | (177 | ) | $ | (36 | ) | $ | (49 | ) | $ | 1,261 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Gain (loss) on sales of assets, net | $ | 5 | $ | (177 | ) | $ | (36 | ) |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Other revenues, net | $ | 1,479 | $ | 621 | $ | 398 | $ | (600 | ) |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Other revenues, net | $ | 2,176 | $ | 1,479 | $ | 621 |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Lease operating | $ | 35,879 | $ | 21,784 | $ | 5,331 | $ | 15,626 | $ | 43,088 | $ | 35,879 | $ | 21,784 | |||||||||||||
Per unit of production ($/BOE) | $ | 4.52 | $ | 5.76 | $ | 5.13 | $ | 4.67 | $ | 4.26 | $ | 4.52 | $ | 5.76 |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Gathering, processing and transportation | $ | 18,626 | $ | 10,734 | $ | 3,043 | $ | 13,235 | $ | 23,197 | $ | 18,626 | $ | 10,734 | |||||||||||||
Per unit of production ($/BOE) | $ | 2.34 | $ | 2.84 | $ | 2.93 | $ | 3.96 | $ | 2.29 | $ | 2.34 | $ | 2.84 |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Production and ad valorem taxes | |||||||||||||||||||||||||||
Production/severance taxes | $ | 20,619 | $ | 7,533 | $ | 1,801 | $ | 2,695 | $ | 21,774 | $ | 20,619 | $ | 7,533 | |||||||||||||
Ad valorem taxes | 2,928 | 1,281 | 697 | 795 | 6,283 | 2,928 | 1,281 | ||||||||||||||||||||
$ | 23,547 | $ | 8,814 | $ | 2,498 | $ | 3,490 | $ | 28,057 | $ | 23,547 | $ | 8,814 | ||||||||||||||
Per unit of production ($/BOE) | $ | 2.96 | $ | 2.33 | $ | 2.40 | $ | 1.04 | $ | 2.77 | $ | 2.96 | $ | 2.33 | |||||||||||||
Production/severance tax rate as a percent of product revenues | 4.7 | % | 4.7 | % | 4.7 | % | 2.9 | % | 4.6 | % | 4.7 | % | 4.7 | % |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Primary G&A | $ | 17,236 | $ | 13,072 | $ | 5,065 | $ | 15,607 | $ | 20,602 | $ | 17,236 | $ | 13,072 | |||||||||||||
Shares-based compensation | |||||||||||||||||||||||||||
Liability-classified | — | — | — | (19 | ) | ||||||||||||||||||||||
Equity-classified | 4,618 | 3,809 | 81 | 1,511 | |||||||||||||||||||||||
Share-based compensation - equity-classified | 4,082 | 4,618 | 3,809 | ||||||||||||||||||||||||
Significant special charges | |||||||||||||||||||||||||||
Acquisition, divestiture and strategic transaction costs | 3,960 | 1,340 | — | — | 800 | 3,960 | 1,340 | ||||||||||||||||||||
Strategic and financial advisory costs | — | — | — | 18,036 | |||||||||||||||||||||||
Executive retirement costs | 250 | — | — | — | — | 250 | — | ||||||||||||||||||||
Restructuring expenses | — | (20 | ) | (80 | ) | 3,821 | |||||||||||||||||||||
Restructuring expense adjustment | — | — | (20 | ) | |||||||||||||||||||||||
Total general and administrative expenses | $ | 26,064 | $ | 18,201 | $ | 5,066 | $ | 38,956 | $ | 25,484 | $ | 26,064 | $ | 18,201 | |||||||||||||
Per unit of production ($/BOE) | $ | 3.28 | $ | 4.82 | $ | 4.88 | $ | 11.64 | $ | 2.52 | $ | 3.28 | $ | 4.82 | |||||||||||||
Per unit of production excluding all share-based compensation and other significant special charges identified above ($/BOE) | $ | 2.17 | $ | 3.46 | $ | 4.87 | $ | 4.66 | $ | 2.04 | $ | 2.17 | $ | 3.46 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Unproved leasehold amortization | $ | — | $ | — | $ | — | $ | 1,940 | ||||||||
Drilling rig termination charges | — | — | — | 1,705 | ||||||||||||
Drilling carry commitment | — | — | — | 1,964 | ||||||||||||
Geological and geophysical costs (seismic) | — | — | — | 33 | ||||||||||||
Other, primarily write-off of uncompleted wells | — | — | — | 4,646 | ||||||||||||
$ | — | $ | — | $ | — | $ | 10,288 |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
DD&A expense | $ | 127,961 | $ | 48,649 | $ | 11,652 | $ | 33,582 | $ | 174,569 | $ | 127,961 | $ | 48,649 | |||||||||||||
DD&A rate ($/BOE) | $ | 16.11 | $ | 12.87 | $ | 11.21 | $ | 10.04 | $ | 17.25 | $ | 16.11 | $ | 12.87 |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Interest on borrowings and related fees | $ | 32,164 | 6,995 | $ | 678 | $ | 36,012 | $ | 36,593 | 32,164 | $ | 6,995 | |||||||||||||||
Accretion of original issue discount | 680 | 161 | — | — | 743 | 680 | 161 | ||||||||||||||||||||
Amortization of debt issuance costs | 2,736 | 1,961 | 226 | 22,189 | 2,611 | 2,736 | 1,961 | ||||||||||||||||||||
Capitalized interest | (9,118 | ) | (2,725 | ) | (25 | ) | (183 | ) | (4,136 | ) | (9,118 | ) | (2,725 | ) | |||||||||||||
$ | 26,462 | $ | 6,392 | $ | 879 | $ | 58,018 | $ | 35,811 | $ | 26,462 | $ | 6,392 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Crude oil derivative gains (losses) | $ | 37,427 | $ | (17,819 | ) | $ | (16,622 | ) | $ | (8,333 | ) |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Crude oil derivative gains (losses) | $ | (68,131 | ) | $ | 37,427 | $ | (17,819 | ) |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Other, net | $ | 2,266 | $ | 58 | $ | 792 | $ | (3,173 | ) |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Other, net | $ | (153 | ) | $ | 2,266 | $ | 58 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Gains on the settlement of liabilities subject to compromise | $ | — | $ | — | $ | — | $ | 1,150,248 | ||||||||
Fresh Start Accounting adjustments | — | — | — | 28,319 | ||||||||||||
Legal and professional fees and expenses | 200 | — | — | (29,976 | ) | |||||||||||
Settlements attributable to contract amendments | — | — | — | (2,550 | ) | |||||||||||
Debtor-in-Possession Facility costs and commitment fees | — | — | — | (170 | ) | |||||||||||
Write-off of prepaid directors and officers insurance | — | — | — | (832 | ) | |||||||||||
Other reorganization items | 3,122 | — | — | (46 | ) | |||||||||||
$ | 3,322 | $ | — | $ | — | $ | 1,144,993 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Legal and professional fees and expenses | $ | — | $ | 200 | $ | — | |||||
Other reorganization items | — | 3,122 | — | ||||||||
$ | — | $ | 3,322 | $ | — |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Income tax (expense) benefit | $ | (523 | ) | $ | 4,943 | $ | — | $ | — | $ | (2,137 | ) | $ | (523 | ) | $ | 4,943 | ||||||||||
Effective tax rate | 0.2 | % | 17.8 | % | — | % | — | % | 3.0 | % | 0.2 | % | 17.8 | % |
Payments Due by Period | Payments Due by Period | |||||||||||||||||||||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | |||||||||||||||||||||||||||||
Credit Facility 1 | $ | 321,000 | $ | — | $ | 321,000 | $ | — | $ | — | $ | 362,400 | $ | — | $ | — | $ | 362,400 | $ | — | ||||||||||||||||||
Second Lien Facility 2 | 200,000 | — | — | 200,000 | — | 200,000 | — | — | 200,000 | — | ||||||||||||||||||||||||||||
Interest payments on long-term debt 3 | 103,821 | 38,187 | 51,483 | 14,151 | — | 107,405 | 31,209 | 57,879 | 18,317 | — | ||||||||||||||||||||||||||||
Operating leases 4 | 3,257 | 532 | 1,294 | 1,272 | 159 | 3,483 | 847 | 1,664 | 972 | — | ||||||||||||||||||||||||||||
Crude oil gathering and transportation commitments 5 | 114,300 | 11,702 | 25,924 | 25,924 | 50,750 | 102,598 | 12,962 | 25,924 | 25,924 | 37,788 | ||||||||||||||||||||||||||||
Drilling and completion commitments 6 | 20,692 | 20,692 | — | — | — | |||||||||||||||||||||||||||||||||
Asset retirement obligations 7 | 114,553 | — | — | — | 114,553 | |||||||||||||||||||||||||||||||||
Asset retirement obligations 6 | 113,050 | — | — | — | 113,050 | |||||||||||||||||||||||||||||||||
Derivatives | 991 | 991 | — | — | — | 20,488 | 19,853 | 635 | — | — | ||||||||||||||||||||||||||||
Other commitments 8 | 419 | 254 | 165 | — | — | |||||||||||||||||||||||||||||||||
Other commitments 7 | 499 | 289 | 210 | — | — | |||||||||||||||||||||||||||||||||
Total contractual obligations | $ | 879,033 | $ | 72,358 | $ | 399,866 | $ | 241,347 | $ | 165,462 | $ | 909,923 | $ | 65,160 | $ | 86,312 | $ | 607,613 | $ | 150,838 |
2 | Assumes that the amount outstanding of $200 million as of December 31, |
4 | Relates primarily to office facilities and equipment |
5 | Represents minimum payments for gathering and intermediate pipeline transportation services for our crude oil and condensate production in South Texas. The gathering portion of these commitments is recognized as GPT while the intermediate transportation and pipeline support components are recognized as a reduction to the index-based price that we receive from crude oil sold to Republic Midstream. |
6 |
Represents the undiscounted balance payable, primarily for the plugging of inactive wells, in periods more than five years in the future for which |
Represents all other significant obligations including information technology licensing and service agreements, among |
Item 7A | Quantitative and Qualitative Disclosures About Market Risk |
Average | Weighted | |||||||||||||||
Volume Per | Average | Fair Value | ||||||||||||||
Instrument | Day | Price | Asset | Liability | ||||||||||||
Crude Oil: | (barrels) | ($/barrel) | ||||||||||||||
First quarter 2019 | Swaps-WTI | 6,446 | $ | 54.46 | $ | 4,959 | $ | — | ||||||||
First quarter 2019 | Swaps-LLS | 5,000 | $ | 59.17 | 3,684 | — | ||||||||||
Second quarter 2019 | Swaps-WTI | 6,421 | $ | 54.48 | 4,307 | — | ||||||||||
Second quarter 2019 | Swaps-LLS | 5,000 | $ | 59.17 | 3,203 | — | ||||||||||
Third quarter 2019 | Swaps-WTI | 6,397 | $ | 54.50 | 3,821 | — | ||||||||||
Third quarter 2019 | Swaps-LLS | 5,000 | $ | 59.17 | 3,092 | — | ||||||||||
Fourth quarter 2019 | Swaps-WTI | 6,398 | $ | 54.50 | 3,498 | — | ||||||||||
Fourth quarter 2019 | Swaps-LLS | 5,000 | $ | 59.17 | 3,015 | — | ||||||||||
First quarter 2020 | Swaps-WTI | 6,000 | $ | 54.09 | 2,807 | — | ||||||||||
Second quarter 2020 | Swaps-WTI | 6,000 | $ | 54.09 | 2,609 | — | ||||||||||
Third quarter 2020 | Swaps-WTI | 6,000 | $ | 54.09 | 2,450 | — | ||||||||||
Fourth quarter 2020 | Swaps-WTI | 6,000 | $ | 54.09 | 2,234 | — |
1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | |||||||||||||||||||||||||
NYMEX WTI Crude Swaps | ||||||||||||||||||||||||||||||||
Average Volume Per Day (barrels) | 15,648 | 12,648 | 10,630 | 10,630 | 3,333 | 3,297 | 1,630 | 1,630 | ||||||||||||||||||||||||
Weighted Average Swap Price ($/barrel) | $ | 55.34 | $ | 54.96 | $ | 54.77 | $ | 54.77 | $ | 55.89 | $ | 55.89 | $ | 55.50 | $ | 55.50 | ||||||||||||||||
NYMEX WTI Purchased Puts/Sold Calls | ||||||||||||||||||||||||||||||||
Average Volume Per Day (barrels) | 3,297 | 4,891 | 1,667 | 1,648 | ||||||||||||||||||||||||||||
Weighted Average Purchased Put Price ($/barrel) | $ | 55.00 | $ | 55.00 | $ | 55.00 | $ | 55.00 | ||||||||||||||||||||||||
Weighted Average Sold Call ($/barrel) | $ | 57.69 | $ | 58.42 | $ | 58.00 | $ | 58.00 | ||||||||||||||||||||||||
NYMEX WTI Sold Puts | ||||||||||||||||||||||||||||||||
Average Volume Per Day (barrels) | 5,000 | 4,945 | 1,630 | 1,630 | ||||||||||||||||||||||||||||
Weighted Average Sold Put Price ($/barrel) | $ | 44.00 | $ | 44.00 | $ | 44.00 | $ | 44.00 | ||||||||||||||||||||||||
MEH Crude Swaps | ||||||||||||||||||||||||||||||||
Average Volume Per Day (barrels) | 2,000 | 2,000 | 2,000 | 2,000 | ||||||||||||||||||||||||||||
Weighted Average Swap Price ($/barrel) | $ | 61.03 | $ | 61.03 | $ | 61.03 | $ | 61.03 |
Change of $10.00 per Barrel of Crude Oil ($ in millions) | |||||||
Increase | Decrease | ||||||
Effect on the fair value of crude oil derivatives | $ | (62.1 | ) | $ | 62.1 | ||
Effect on 2019 operating income, excluding crude oil derivatives 1 | $ | 55.0 | $ | (55.0 | ) |
Change of $10.00 per Barrel of Crude Oil ($ in millions) | |||||||
Increase | Decrease | ||||||
Effect on the fair value of crude oil derivatives 1 | $ | (69.8 | ) | $ | 66.6 | ||
Effect on 2020 operating income, excluding crude oil derivatives 2 | $ | 29.0 | $ | (27.0 | ) |
Item 8 | Financial Statements and Supplementary Data |
Page | |
Reports of Independent Registered Public Accounting Firm | |
Consolidated Statements of Operations | |
Consolidated Statements of Comprehensive Income | |
Consolidated Balance Sheets | |
Consolidated Statements of Cash Flows | |
Consolidated Statements of Shareholders’ Equity | |
Notes to Consolidated Financial Statements: | |
1. Nature of Operations | |
2. Basis of Presentation | |
3. Summary of Significant Accounting Policies | |
4. | |
6. Derivative Instruments | |
7. | |
9. Long-Term Debt | |
10. | |
11. | |
12. | |
15. Shareholders’ Equity | |
16. | |
17. Interest Expense | |
18. | |
Supplemental Quarterly Financial Information (unaudited) | |
Supplemental Information on Oil and Gas Producing Activities (unaudited) |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13, Through | January 1, Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Crude oil | $ | 402,485 | $ | 140,886 | $ | 33,157 | $ | 81,377 | $ | 434,713 | $ | 402,485 | $ | 140,886 | |||||||||||||
Natural gas liquids | 21,073 | 10,066 | 2,707 | 6,064 | 16,589 | 21,073 | 10,066 | ||||||||||||||||||||
Natural gas | 15,972 | 8,517 | 2,790 | 6,208 | 17,733 | 15,972 | 8,517 | ||||||||||||||||||||
Gain (loss) on sales of assets, net | (177 | ) | (36 | ) | (49 | ) | 1,261 | 5 | (177 | ) | (36 | ) | |||||||||||||||
Other revenues, net | 1,479 | 621 | 398 | (600 | ) | 2,176 | 1,479 | 621 | |||||||||||||||||||
Total revenues | 440,832 | 160,054 | 39,003 | 94,310 | 471,216 | 440,832 | 160,054 | ||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||
Lease operating | 35,879 | 21,784 | 5,331 | 15,626 | 43,088 | 35,879 | 21,784 | ||||||||||||||||||||
Gathering, processing and transportation | 18,626 | 10,734 | 3,043 | 13,235 | 23,197 | 18,626 | 10,734 | ||||||||||||||||||||
Production and ad valorem taxes | 23,547 | 8,814 | 2,498 | 3,490 | 28,057 | 23,547 | 8,814 | ||||||||||||||||||||
General and administrative | 26,064 | 18,201 | 5,066 | 38,956 | 25,484 | 26,064 | 18,201 | ||||||||||||||||||||
Exploration | — | — | — | 10,288 | |||||||||||||||||||||||
Depreciation, depletion and amortization | 127,961 | 48,649 | 11,652 | 33,582 | 174,569 | 127,961 | 48,649 | ||||||||||||||||||||
Total operating expenses | 232,077 | 108,182 | 27,590 | 115,177 | 294,395 | 232,077 | 108,182 | ||||||||||||||||||||
Operating income (loss) | 208,755 | 51,872 | 11,413 | (20,867 | ) | ||||||||||||||||||||||
Operating income | 176,821 | 208,755 | 51,872 | ||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||
Interest expense, net of amounts capitalized | (26,462 | ) | (6,392 | ) | (879 | ) | (58,018 | ) | (35,811 | ) | (26,462 | ) | (6,392 | ) | |||||||||||||
Derivatives | 37,427 | (17,819 | ) | (16,622 | ) | (8,333 | ) | (68,131 | ) | 37,427 | (17,819 | ) | |||||||||||||||
Other, net | 2,266 | 58 | 792 | (3,173 | ) | (153 | ) | 2,266 | 58 | ||||||||||||||||||
Reorganization items, net | 3,322 | — | — | 1,144,993 | — | 3,322 | — | ||||||||||||||||||||
Income (loss) before income taxes | 225,308 | 27,719 | (5,296 | ) | 1,054,602 | ||||||||||||||||||||||
Income before income taxes | 72,726 | 225,308 | 27,719 | ||||||||||||||||||||||||
Income tax (expense) benefit | (523 | ) | 4,943 | — | — | (2,137 | ) | (523 | ) | 4,943 | |||||||||||||||||
Net income (loss) | 224,785 | 32,662 | (5,296 | ) | 1,054,602 | ||||||||||||||||||||||
Preferred stock dividends | — | — | — | (5,972 | ) | ||||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,048,630 | ||||||||||||||||||
Net income | $ | 70,589 | $ | 224,785 | $ | 32,662 | |||||||||||||||||||||
Net income (loss) per share: | |||||||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||||||
Basic | $ | 14.93 | $ | 2.18 | $ | (0.35 | ) | $ | 11.91 | $ | 4.67 | $ | 14.93 | $ | 2.18 | ||||||||||||
Diluted | $ | 14.70 | $ | 2.17 | $ | (0.35 | ) | $ | 8.50 | $ | 4.67 | $ | 14.70 | $ | 2.17 | ||||||||||||
Weighted average shares outstanding – basic | 15,059 | 14,996 | 14,992 | 88,013 | 15,110 | 15,059 | 14,996 | ||||||||||||||||||||
Weighted average shares outstanding – diluted | 15,292 | 15,063 | 14,992 | 124,087 | 15,126 | 15,292 | 15,063 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Net income (loss) | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,054,602 | |||||||
Other comprehensive income (loss): | ||||||||||||||||
Change in pension and postretirement obligations, net of tax of $0 for 2018 and 2017, $39 for the Successor period from September 13, 2016 through December 31, 2016 and $(226) for the Predecessor period from January 1, 2016 through September 12, 2016. | 82 | (73 | ) | 73 | (421 | ) | ||||||||||
82 | (73 | ) | 73 | (421 | ) | |||||||||||
Comprehensive income (loss) | $ | 224,867 | $ | 32,589 | $ | (5,223 | ) | $ | 1,054,181 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net income | $ | 70,589 | $ | 224,785 | $ | 32,662 | |||||
Other comprehensive income (loss): | |||||||||||
Change in pension and postretirement obligations, net of tax | (141 | ) | 82 | (73 | ) | ||||||
(141 | ) | 82 | (73 | ) | |||||||
Comprehensive income | $ | 70,448 | $ | 224,867 | $ | 32,589 |
December 31, | December 31, | |||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 17,864 | $ | 11,017 | $ | 7,798 | $ | 17,864 | ||||||
Accounts receivable, net of allowance for doubtful accounts | 66,038 | 69,821 | 70,716 | 66,038 | ||||||||||
Derivative assets | 34,932 | — | 4,131 | 34,932 | ||||||||||
Income taxes receivable | 2,471 | — | 1,236 | 2,471 | ||||||||||
Other current assets | 5,125 | 6,250 | 4,458 | 5,125 | ||||||||||
Total current assets | 126,430 | 87,088 | 88,339 | 126,430 | ||||||||||
Property and equipment, net | 927,994 | 529,059 | ||||||||||||
Property and equipment, net (full cost method) | 1,120,425 | 927,994 | ||||||||||||
Derivative assets | 10,100 | — | 2,750 | 10,100 | ||||||||||
Deferred income taxes | 1,949 | 4,943 | — | 1,949 | ||||||||||
Other assets | 2,481 | 8,507 | 6,724 | 2,481 | ||||||||||
Total assets | $ | 1,068,954 | $ | 629,597 | $ | 1,218,238 | $ | 1,068,954 | ||||||
Liabilities and Shareholders’ Equity | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable and accrued liabilities | $ | 103,700 | $ | 96,181 | $ | 105,824 | $ | 103,700 | ||||||
Derivative liabilities | 991 | 27,777 | 23,450 | 991 | ||||||||||
Total current liabilities | 104,691 | 123,958 | 129,274 | 104,691 | ||||||||||
Other liabilities | 5,533 | 4,833 | 8,382 | 5,533 | ||||||||||
Deferred income taxes | 1,424 | — | ||||||||||||
Derivative liabilities | — | 13,900 | 3,385 | — | ||||||||||
Long-term debt | 511,375 | 265,267 | ||||||||||||
Long-term debt, net | 555,028 | 511,375 | ||||||||||||
Commitments and contingencies (Note 15) | ||||||||||||||
Commitments and contingencies (Note 14) | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Preferred stock of $0.01 par value – 5,000,000 shares authorized; none issued | — | — | — | — | ||||||||||
Common stock of $0.01 par value – 45,000,000 shares authorized; 15,080,594 and 15,018,870 shares issued as of December 31, 2018 and December 31, 2017, respectively | 151 | 150 | ||||||||||||
Common stock of $0.01 par value – 45,000,000 shares authorized; 15,135,598 and 15,080,594 shares issued as of December 31, 2019 and December 31, 2018, respectively | 151 | 151 | ||||||||||||
Paid-in capital | 197,630 | 194,123 | 200,666 | 197,630 | ||||||||||
Retained earnings | 249,492 | 27,366 | 319,987 | 249,492 | ||||||||||
Accumulated other comprehensive income | 82 | — | ||||||||||||
Accumulated other comprehensive income (loss) | (59 | ) | 82 | |||||||||||
Total shareholders’ equity | 447,355 | 221,639 | 520,745 | 447,355 | ||||||||||
Total liabilities and shareholders’ equity | $ | 1,068,954 | $ | 629,597 | $ | 1,218,238 | $ | 1,068,954 |
Successor | Predecessor | ||||||||||||||||||||||||||
September 13 Through | January 1 Through | ||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | Year Ended December 31, | ||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||||||
Net income (loss) | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,054,602 | ||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||||||
Net income | $ | 70,589 | $ | 224,785 | $ | 32,662 | |||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||||
Non-cash reorganization items | (3,322 | ) | — | — | (1,178,302 | ) | — | (3,322 | ) | — | |||||||||||||||||
Depreciation, depletion and amortization | 127,961 | 48,649 | 11,652 | 33,582 | 174,569 | 127,961 | 48,649 | ||||||||||||||||||||
Accretion of firm transportation obligation | — | — | — | 317 | |||||||||||||||||||||||
Derivative contracts: | |||||||||||||||||||||||||||
Net (gains) losses | (37,427 | ) | 17,819 | 16,622 | 8,333 | 68,131 | (37,427 | ) | 17,819 | ||||||||||||||||||
Cash settlements, net | (48,291 | ) | (3,511 | ) | 384 | 48,008 | (4,136 | ) | (48,291 | ) | (3,511 | ) | |||||||||||||||
Deferred income tax expense (benefit) | 2,994 | (4,943 | ) | — | — | 3,373 | 2,994 | (4,943 | ) | ||||||||||||||||||
Loss (gain) on sales of assets, net | 177 | 36 | 49 | (1,261 | ) | (5 | ) | 177 | 36 | ||||||||||||||||||
Non-cash exploration expense | — | — | — | 6,038 | |||||||||||||||||||||||
Non-cash interest expense | 3,416 | 2,122 | 226 | 22,189 | 3,354 | 3,416 | 2,122 | ||||||||||||||||||||
Share-based compensation (equity-classified) | 4,618 | 3,809 | 81 | 1,511 | 4,082 | 4,618 | 3,809 | ||||||||||||||||||||
Other, net | 44 | 61 | 21 | (13 | ) | 52 | 44 | 61 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||||||
Accounts receivable, net | (23,674 | ) | (43,318 | ) | 10,791 | 12,273 | (5,079 | ) | (23,674 | ) | (43,318 | ) | |||||||||||||||
Accounts payable and accrued expenses | 21,109 | 28,542 | (3,887 | ) | 22,469 | 4,690 | 21,109 | 28,542 | |||||||||||||||||||
Other assets and liabilities | (258 | ) | (218 | ) | 131 | 501 | 574 | (258 | ) | (218 | ) | ||||||||||||||||
Net cash provided by operating activities | 272,132 | 81,710 | 30,774 | 30,247 | 320,194 | 272,132 | 81,710 | ||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||||||
Acquisitions, net | (85,387 | ) | (200,849 | ) | — | — | (6,516 | ) | (85,387 | ) | (200,849 | ) | |||||||||||||||
Capital expenditures | (430,592 | ) | (115,687 | ) | (4,812 | ) | (15,359 | ) | (362,743 | ) | (430,592 | ) | (115,687 | ) | |||||||||||||
Proceeds from sales of assets, net | 7,683 | 869 | — | 224 | 215 | 7,683 | 869 | ||||||||||||||||||||
Other, net | — | — | (104 | ) | 1,186 | ||||||||||||||||||||||
Net cash used in investing activities | (508,296 | ) | (315,667 | ) | (4,916 | ) | (13,949 | ) | (369,044 | ) | (508,296 | ) | (315,667 | ) | |||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||||||
Proceeds from credit facility borrowings | 244,000 | 59,000 | — | 75,350 | 76,400 | 244,000 | 59,000 | ||||||||||||||||||||
Repayment of credit facility borrowings | — | (7,000 | ) | (50,350 | ) | (119,121 | ) | (35,000 | ) | — | (7,000 | ) | |||||||||||||||
Proceeds from second line note | — | 196,000 | — | — | |||||||||||||||||||||||
Proceeds from second lien note | — | — | 196,000 | ||||||||||||||||||||||||
Debt issuance costs paid | (989 | ) | (9,787 | ) | — | (3,011 | ) | (2,616 | ) | (989 | ) | (9,787 | ) | ||||||||||||||
Proceeds received from rights offering, net | — | 55 | — | 49,943 | — | — | 55 | ||||||||||||||||||||
Other, net | — | (55 | ) | (161 | ) | — | — | — | (55 | ) | |||||||||||||||||
Net cash provided by (used in) financing activities | 243,011 | 238,213 | (50,511 | ) | 3,161 | ||||||||||||||||||||||
Net cash provided by financing activities | 38,784 | 243,011 | 238,213 | ||||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 6,847 | 4,256 | (24,653 | ) | 19,459 | (10,066 | ) | 6,847 | 4,256 | ||||||||||||||||||
Cash and cash equivalents - beginning of period | 11,017 | 6,761 | 31,414 | 11,955 | 17,864 | 11,017 | 6,761 | ||||||||||||||||||||
Cash and cash equivalents - end of period | $ | 17,864 | $ | 11,017 | $ | 6,761 | $ | 31,414 | $ | 7,798 | $ | 17,864 | $ | 11,017 | |||||||||||||
Supplemental disclosures: | |||||||||||||||||||||||||||
Cash paid for interest (net of amounts capitalized) | $ | 22,599 | $ | 4,102 | $ | 598 | $ | 4,331 | |||||||||||||||||||
Cash paid for income taxes (net of refunds) | $ | — | $ | — | $ | (7 | ) | $ | (35 | ) | |||||||||||||||||
Cash paid for reorganization items, net | $ | 540 | $ | 954 | $ | 525 | $ | 30,990 | |||||||||||||||||||
Cash paid for: | |||||||||||||||||||||||||||
Interest, net of amounts capitalized | $ | 32,398 | $ | 22,599 | $ | 4,102 | |||||||||||||||||||||
Income taxes, net of (refunds) | $ | (2,471 | ) | $ | — | $ | — | ||||||||||||||||||||
Reorganization items, net | $ | 79 | $ | 540 | $ | 954 | |||||||||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||||||||||||
Common stock issued in exchange for liabilities | $ | — | $ | — | $ | — | $ | 140,952 | |||||||||||||||||||
Changes in accounts receivable, net related to acquisitions | $ | (152 | ) | $ | (27,107 | ) | $ | (2,583 | ) | ||||||||||||||||||
Changes in other assets related to acquisitions | $ | — | $ | (743 | ) | $ | 3,201 | ||||||||||||||||||||
Changes in accrued liabilities related to acquisitions | $ | (540 | ) | $ | (11,182 | ) | $ | (2,507 | ) | ||||||||||||||||||
Changes in accrued liabilities related to capital expenditures | $ | 44 | $ | 19,910 | $ | 997 | $ | (11,301 | ) | $ | (3,602 | ) | $ | 44 | $ | 19,910 | |||||||||||
Derivatives settled to reduce outstanding debt | $ | — | $ | — | $ | — | $ | 51,979 | |||||||||||||||||||
Changes in other liabilities for asset retirement obligations related to acquisitions | $ | 83 | $ | 385 | $ | 494 |
Common Shares Outstanding | Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings (Accumulated Deficit) | Deferred Compensation Obligation | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders’ Equity (Deficit) | ||||||||||||||||||||||||||
Balance as of December 31, 2015 (Predecessor) | 81,253 | 3,146 | 628 | 1,211,088 | (2,130,271 | ) | 3,440 | 422 | (3,574 | ) | (915,121 | ) | ||||||||||||||||||||||
Net income | — | — | — | — | 1,054,602 | — | — | — | 1,054,602 | |||||||||||||||||||||||||
Share-based compensation | — | — | — | 1,511 | — | — | — | — | 1,511 | |||||||||||||||||||||||||
All other changes | 6,965 | (1,266 | ) | 69 | 1,198 | — | — | (39 | ) | — | (38 | ) | ||||||||||||||||||||||
Balance, September 12, 2016 (Predecessor) | 88,218 | 1,880 | 697 | 1,213,797 | (1,075,669 | ) | 3,440 | 383 | (3,574 | ) | 140,954 | |||||||||||||||||||||||
Cancellation of Predecessor equity | (88,218 | ) | (1,880 | ) | (697 | ) | (1,213,797 | ) | 1,075,669 | (3,440 | ) | (383 | ) | 3,574 | (140,954 | ) | ||||||||||||||||||
Balance, September 12, 2016 (Predecessor) | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Issuance of Successor common stock - Rights Offering | 7,634 | $ | — | $ | 76 | $ | 49,867 | $ | — | $ | — | $ | — | $ | — | $ | 49,943 | |||||||||||||||||
Issuance of Successor common stock - Backstop Fee | 473 | — | 5 | 9,054 | — | — | — | — | 9,059 | |||||||||||||||||||||||||
Issuance of Successor common stock - exchange of claims | 6,885 | — | 69 | 131,824 | — | — | — | — | 131,893 | |||||||||||||||||||||||||
Balance, September 12, 2016 (Successor) | 14,992 | — | 150 | 190,745 | — | — | — | — | 190,895 | |||||||||||||||||||||||||
Net loss | — | — | — | — | (5,296 | ) | — | — | — | (5,296 | ) | |||||||||||||||||||||||
Share-based compensation | — | — | — | 81 | — | — | — | �� | — | 81 | ||||||||||||||||||||||||
All other changes | — | — | — | (205 | ) | — | — | 73 | — | (132 | ) | |||||||||||||||||||||||
Balance as of December 31, 2016 | 14,992 | — | 150 | 190,621 | (5,296 | ) | — | 73 | — | 185,548 | ||||||||||||||||||||||||
Net income | — | — | — | — | 32,662 | — | — | — | 32,662 | |||||||||||||||||||||||||
Share-based compensation | — | — | — | 3,809 | — | — | — | — | 3,809 | |||||||||||||||||||||||||
Restricted stock unit vesting | 27 | — | — | (351 | ) | — | — | — | — | (351 | ) | |||||||||||||||||||||||
All other changes | — | — | — | 44 | — | — | (73 | ) | — | (29 | ) | |||||||||||||||||||||||
Balance as of December 31, 2017 | 15,019 | — | 150 | 194,123 | 27,366 | — | — | — | 221,639 | |||||||||||||||||||||||||
Net income | — | — | — | — | 224,785 | — | — | — | 224,785 | |||||||||||||||||||||||||
Share-based compensation | — | — | — | 4,618 | — | — | — | — | 4,618 | |||||||||||||||||||||||||
Restricted stock unit vesting | 61 | — | 1 | (1,111 | ) | — | — | — | — | (1,110 | ) | |||||||||||||||||||||||
Cumulative effect of change in accounting principle (see Note 6) | — | — | — | — | (2,659 | ) | — | — | — | (2,659 | ) | |||||||||||||||||||||||
All other changes | — | — | — | — | — | — | 82 | — | 82 | |||||||||||||||||||||||||
Balance as of December 31, 2018 | 15,080 | $ | — | $ | 151 | $ | 197,630 | $ | 249,492 | $ | — | $ | 82 | $ | — | $ | 447,355 |
Common Shares Outstanding | Preferred Stock | Common Stock | Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||||
December 31, 2016 | 14,992 | $ | — | $ | 150 | $ | 190,621 | $ | (5,296 | ) | $ | 73 | $ | 185,548 | ||||||||||||
Net Income | — | — | — | — | 32,662 | — | 32,662 | |||||||||||||||||||
Share-based compensation | — | — | — | 3,809 | — | — | 3,809 | |||||||||||||||||||
Restricted stock unit vesting | 27 | — | — | (351 | ) | — | — | (351 | ) | |||||||||||||||||
All other changes | — | — | — | 44 | — | (73 | ) | (29 | ) | |||||||||||||||||
December 31, 2017 | 15,019 | — | 150 | 194,123 | 27,366 | — | 221,639 | |||||||||||||||||||
Net Income | — | — | — | — | 224,785 | — | 224,785 | |||||||||||||||||||
Share-based compensation | — | — | — | 4,618 | — | — | 4,618 | |||||||||||||||||||
Restricted stock unit vesting | 61 | — | 1 | (1,111 | ) | — | — | (1,110 | ) | |||||||||||||||||
Cumulative effect of change in accounting principle (see Note 5) | — | — | — | — | (2,659 | ) | — | (2,659 | ) | |||||||||||||||||
All other changes | — | — | — | — | — | 82 | 82 | |||||||||||||||||||
December 31, 2018 | 15,080 | — | 151 | 197,630 | 249,492 | $ | 82 | 447,355 | ||||||||||||||||||
Net Income | — | — | — | — | 70,589 | — | 70,589 | |||||||||||||||||||
Share-based compensation | — | — | — | 4,082 | — | — | 4,082 | |||||||||||||||||||
Restricted stock unit vesting | 56 | — | — | (1,046 | ) | — | — | (1,046 | ) | |||||||||||||||||
Cumulative effect of change in accounting principle (see Note 11) | — | — | — | — | (94 | ) | — | (94 | ) | |||||||||||||||||
All other changes | — | — | — | — | — | (141 | ) | (141 | ) | |||||||||||||||||
December 31, 2019 | 15,136 | $ | — | $ | 151 | $ | 200,666 | $ | 319,987 | $ | (59 | ) | $ | 520,745 |
1. | Nature of Operations |
2. | Basis of Presentation |
3. | Summary of Significant Accounting Policies |
Enterprise value | $ | 234,831 | ||
Plus: Cash and cash equivalents | 31,414 | |||
Less: Fair value of debt | (75,350 | ) | ||
Fair value of Successor Common Stock | $ | 190,895 | ||
Shares outstanding as of September 12, 2016 | 14,992,018 | |||
Per share value | $ | 12.73 |
Enterprise value | $ | 234,831 | ||
Plus: Cash and cash equivalents | 31,414 | |||
Plus: Current liabilities | 54,171 | |||
Plus: Noncurrent liabilities excluding long-term debt | 13,558 | |||
Reorganization value | $ | 333,974 |
Reorganization | Fresh Start | ||||||||||||||||||
Predecessor | Adjustments | Adjustments | Successor | ||||||||||||||||
Assets | |||||||||||||||||||
Current assets | |||||||||||||||||||
Cash and cash equivalents | $ | 48,718 | $ | (17,304 | ) | (1 | ) | $ | — | $ | 31,414 | ||||||||
Accounts receivable, net of allowance for doubtful accounts | 35,606 | 4,292 | (2 | ) | — | 39,898 | |||||||||||||
Derivative assets | 397 | — | — | 397 | |||||||||||||||
Other current assets | 3,966 | (832 | ) | (3 | ) | — | 3,134 | ||||||||||||
Total current assets | 88,687 | (13,844 | ) | — | 74,843 | ||||||||||||||
Property and equipment, net | 309,261 | — | (55,751 | ) | (12 | ) | 253,510 | ||||||||||||
Other assets | 6,902 | (1,281 | ) | (4 | ) | — | 5,621 | ||||||||||||
Total assets | $ | 404,850 | $ | (15,125 | ) | $ | (55,751 | ) | $ | 333,974 | |||||||||
Liabilities and Shareholders’ Equity (Deficit) | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 77,151 | $ | (21,166 | ) | (5 | ) | $ | (3,455 | ) | (13 | ) | $ | 52,530 | |||||
Derivative liabilities | 1,641 | — | — | 1,641 | |||||||||||||||
Current maturities of long-term debt | 113,653 | (113,653 | ) | (6 | ) | — | — | ||||||||||||
Total current liabilities | 192,445 | (134,819 | ) | (3,455 | ) | 54,171 | |||||||||||||
Other liabilities | 84,953 | 100 | (5 | ) | (80,615 | ) | (14 | ) | 4,438 | ||||||||||
Derivative liabilities | 9,120 | — | — | 9,120 | |||||||||||||||
Long-term debt | — | 75,350 | (7 | ) | — | 75,350 | |||||||||||||
Liabilities subject to compromise | 1,154,163 | (1,154,163 | ) | (8 | ) | — | — | ||||||||||||
Shareholders’ equity (deficit) | |||||||||||||||||||
Preferred stock (Predecessor) | 1,880 | (1,880 | ) | (9 | ) | — | — | ||||||||||||
Common stock (Predecessor) | 697 | (697 | ) | (9 | ) | — | — | ||||||||||||
Paid-in capital (Predecessor) | 1,213,797 | (1,213,797 | ) | (9 | ) | — | — | ||||||||||||
Deferred compensation obligation (Predecessor) | 3,440 | (3,440 | ) | (9 | ) | — | — | ||||||||||||
Accumulated other comprehensive income (Predecessor) | 383 | (383 | ) | (9 | ) | — | — | ||||||||||||
Treasury stock (Predecessor) | (3,574 | ) | 3,574 | (9 | ) | — | — | ||||||||||||
Common stock (Successor) | — | 150 | (10 | ) | — | 150 | |||||||||||||
Paid-in capital (Successor) | — | 190,745 | (10 | ) | — | 190,745 | |||||||||||||
Accumulated deficit | (2,252,454 | ) | 2,224,135 | (11 | ) | 28,319 | (15 | ) | — | ||||||||||
Total shareholders’ equity (deficit) | (1,035,831 | ) | 1,198,407 | 28,319 | 190,895 | ||||||||||||||
Total liabilities and shareholders’ equity (deficit) | $ | 404,850 | $ | (15,125 | ) | $ | (55,751 | ) | $ | 333,974 |
Sources: | |||||||
Proceeds from the Credit Facility | $ | 75,350 | |||||
Proceeds from the Rights Offering, net of issuance costs | 49,943 | ||||||
Total sources | $ | 125,293 | |||||
Uses: | |||||||
Repayment of RBL | $ | 113,653 | |||||
Accrued interest payable on RBL | 1,374 | ||||||
DIP Facility fees | 12 | ||||||
Debt issue costs of the Credit Facility | 3,011 | ||||||
Funding of professional fee escrow account | 14,575 | ||||||
RBL lender professional fees and expenses | 455 | ||||||
Ad Hoc Committee and indenture trustee professional fees and expenses | 6,782 | ||||||
Payment of certain allowed claims and settlements | 2,735 | ||||||
Total uses | 142,597 | ||||||
$ | (17,304 | ) |
Liabilities subject to compromise prior to the Emergence Date: | |||||||
Senior Notes | $ | 1,075,000 | |||||
Interest on Senior Notes | 47,213 | ||||||
Firm transportation obligation | 11,077 | ||||||
Compensation – related | 9,733 | ||||||
Deferred compensation | 4,676 | ||||||
Trade accounts payable | 1,487 | ||||||
Litigation claims | 1,092 | ||||||
Other accrued liabilities | 3,885 | ||||||
$ | 1,154,163 | ||||||
Amounts settled in cash, reinstated or otherwise reserved at emergence | (3,915 | ) | |||||
Gain on settlement of liabilities subject to compromise | $ | 1,150,248 |
Gain on settlement of liabilities subject to compromise | $ | 1,150,248 | ||||
Fair value of equity allocated to: | ||||||
Unsecured creditors on the Emergence Date | 174,477 | |||||
Unsecured creditors pending resolution on the Emergence Date | 10,396 | |||||
Backstop Parties in the form of a Commitment Premium | 6,022 | |||||
190,895 | ||||||
Cancellation of Predecessor shareholders’ deficit | 882,992 | |||||
Net impact to Predecessor accumulated deficit | $ | 2,224,135 |
Year Ended | January 1 Through | ||||||
December 31, | September 12, | ||||||
2018 | 2016 | ||||||
Gains on the settlement of liabilities subject to compromise | $ | — | $ | 1,150,248 | |||
Fresh start accounting adjustments | — | 28,319 | |||||
Legal and professional fees and expenses | 200 | (29,976 | ) | ||||
Settlements attributable to contract amendments | — | (2,550 | ) | ||||
DIP Facility costs and commitment fees | — | (170 | ) | ||||
Write-off of prepaid directors and officers insurance | — | (832 | ) | ||||
Other reorganization items | 3,122 | (46 | ) | ||||
$ | 3,322 | $ | 1,144,993 |
Assets | ||||
Oil and gas properties - proved | $ | 82,443 | ||
Oil and gas properties - unproved | 16,339 | |||
Liabilities | ||||
Revenue suspense | 1,448 | |||
Asset retirement obligations | 356 | |||
Net assets acquired | $ | 96,978 | ||
Cash consideration paid to Hunt, net | $ | 82,955 | ||
Application of working capital adjustments | 245 | |||
Accumulated costs, net of suspended revenues, for wells in which Hunt had rights to participate | 13,778 | |||
Total acquisition costs incurred | $ | 96,978 |
Assets | ||||
Oil and gas properties - proved | $ | 82,443 | ||
Oil and gas properties - unproved | 16,339 | |||
Liabilities | ||||
Revenue suspense | 1,448 | |||
Asset retirement obligations | 356 | |||
Net assets acquired | $ | 96,978 | ||
Cash consideration paid to Hunt, net | $ | 82,955 | ||
Application of working capital adjustments | 245 | |||
Accumulated costs, net of suspended revenues, for wells in which Hunt had rights to participate | 13,778 | |||
Total acquisition costs incurred | $ | 96,978 |
Assets | ||||
Oil and gas properties - proved | $ | 42,866 | ||
Oil and gas properties - unproved | 146,686 | |||
Other property and equipment | 8,642 | |||
Liabilities | ||||
Revenue suspense | 355 | |||
Asset retirement obligations | 494 | |||
Net assets acquired | $ | 197,345 | ||
Cash consideration paid to Devon and tag-along parties, net | $ | 199,796 | ||
Application of working capital adjustments, net | (2,451 | ) | ||
Total consideration | $ | 197,345 |
Assets | ||||
Oil and gas properties - proved | $ | 42,866 | ||
Oil and gas properties - unproved | 146,686 | |||
Other property and equipment | 8,642 | |||
Liabilities | ||||
Revenue suspense | 355 | |||
Asset retirement obligations | 494 | |||
Net assets acquired | $ | 197,345 | ||
Cash consideration paid to Devon and tag-along parties, net | $ | 190,277 | ||
Amount transferred to Devon from the Escrow Account | 9,519 | |||
Application of working capital adjustments, net | (2,451 | ) | ||
Total consideration | $ | 197,345 |
Year Ended December 31, | |||||||
2018 | 2017 | ||||||
Total revenues | $ | 446,077 | $ | 209,015 | |||
Net income | $ | 227,930 | $ | 30,861 | |||
Net income per share - basic | $ | 15.14 | $ | 2.06 | |||
Net income per share - diluted | $ | 14.91 | $ | 2.05 |
Year Ended December 31, | |||||||
2018 | 2017 | ||||||
Total revenues | $ | 446,077 | $ | 209,015 | |||
Net income attributable to common shareholders | $ | 227,930 | $ | 30,861 | |||
Net income per share - basic | $ | 15.14 | $ | 2.06 | |||
Net income per share - diluted | $ | 14.91 | $ | 2.05 |
Accounts Receivable and Major Customers |
December 31, | |||||||
2019 | 2018 | ||||||
Customers | $ | 63,165 | $ | 59,030 | |||
Joint interest partners | 6,929 | 6,404 | |||||
Other | 674 | 640 | |||||
70,768 | 66,074 | ||||||
Less: Allowance for doubtful accounts | (52 | ) | (36 | ) | |||
$ | 70,716 | $ | 66,038 |
December 31, | |||||||
2018 | 2017 | ||||||
Customers | $ | 59,030 | $ | 39,106 | |||
Joint interest partners | 6,404 | 32,493 | |||||
Other | 640 | 584 | |||||
66,074 | 72,183 | ||||||
Less: Allowance for doubtful accounts | (36 | ) | (2,362 | ) | |||
$ | 66,038 | $ | 69,821 |
Year Ended December 31, 2018 | |||||||||||
As Determined Under | As Reported Under | ||||||||||
Prior GAAP | ASC Topic 606 | Net Change | |||||||||
Revenues | |||||||||||
Crude oil | $ | 402,485 | $ | 402,485 | $ | — | |||||
Natural gas liquids | $ | 23,429 | $ | 21,073 | $ | (2,356 | ) | ||||
Natural gas | $ | 15,972 | $ | 15,972 | $ | — | |||||
Marketing services (included in Other revenues, net) | $ | 523 | $ | 523 | $ | — | |||||
Operating expenses | |||||||||||
Gathering, processing and transportation | $ | 20,982 | $ | 18,626 | $ | (2,356 | ) | ||||
Net income | $ | 224,785 | $ | 224,785 | $ | — | |||||
Derivative Instruments |
Average | Weighted | |||||||||||||||
Volume Per | Average | Fair Value | ||||||||||||||
Instrument | Day | Price | Asset | Liability | ||||||||||||
Crude Oil: | (barrels) | ($/barrel) | ||||||||||||||
First quarter 2019 | Swaps-WTI | 6,446 | $ | 54.46 | $ | 4,959 | $ | — | ||||||||
First quarter 2019 | Swaps-LLS | 5,000 | $ | 59.17 | 3,684 | — | ||||||||||
Second quarter 2019 | Swaps-WTI | 6,421 | $ | 54.48 | 4,307 | — | ||||||||||
Second quarter 2019 | Swaps-LLS | 5,000 | $ | 59.17 | 3,203 | — | ||||||||||
Third quarter 2019 | Swaps-WTI | 6,397 | $ | 54.50 | 3,821 | — | ||||||||||
Third quarter 2019 | Swaps-LLS | 5,000 | $ | 59.17 | 3,092 | — | ||||||||||
Fourth quarter 2019 | Swaps-WTI | 6,398 | $ | 54.50 | 3,498 | — | ||||||||||
Fourth quarter 2019 | Swaps-LLS | 5,000 | $ | 59.17 | 3,015 | — | ||||||||||
First quarter 2020 | Swaps-WTI | 6,000 | $ | 54.09 | 2,807 | — | ||||||||||
Second quarter 2020 | Swaps-WTI | 6,000 | $ | 54.09 | 2,609 | — | ||||||||||
Third quarter 2020 | Swaps-WTI | 6,000 | $ | 54.09 | 2,450 | — | ||||||||||
Fourth quarter 2020 | Swaps-WTI | 6,000 | $ | 54.09 | 2,234 | — | ||||||||||
Settlements to be received in subsequent period, net | 4,362 |
1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 | 2Q2021 | 3Q2021 | 4Q2021 | |||||||||||||||||||||||||
NYMEX WTI Crude Swaps | ||||||||||||||||||||||||||||||||
Average Volume Per Day (barrels) | 15,648 | 12,648 | 10,630 | 10,630 | 3,333 | 3,297 | 1,630 | 1,630 | ||||||||||||||||||||||||
Weighted Average Swap Price ($/barrel) | $ | 55.34 | $ | 54.96 | $ | 54.77 | $ | 54.77 | $ | 55.89 | $ | 55.89 | $ | 55.50 | $ | 55.50 | ||||||||||||||||
NYMEX WTI Purchased Puts/Sold Calls | ||||||||||||||||||||||||||||||||
Average Volume Per Day (barrels) | 3,297 | 4,891 | 1,667 | 1,648 | ||||||||||||||||||||||||||||
Weighted Average Purchased Put Price ($/barrel) | $ | 55.00 | $ | 55.00 | $ | 55.00 | $ | 55.00 | ||||||||||||||||||||||||
Weighted Average Sold Call ($/barrel) | $ | 57.69 | $ | 58.42 | $ | 58.00 | $ | 58.00 | ||||||||||||||||||||||||
NYMEX WTI Sold Puts | ||||||||||||||||||||||||||||||||
Average Volume Per Day (barrels) | 5,000 | 4,945 | 1,630 | 1,630 | ||||||||||||||||||||||||||||
Weighted Average Sold Put Price ($/barrel) | $ | 44.00 | $ | 44.00 | $ | 44.00 | $ | 44.00 | ||||||||||||||||||||||||
MEH Crude Swaps | ||||||||||||||||||||||||||||||||
Average Volume Per Day (barrels) | 2,000 | 2,000 | 2,000 | 2,000 | ||||||||||||||||||||||||||||
Weighted Average Swap Price ($/barrel) | $ | 61.03 | $ | 61.03 | $ | 61.03 | $ | 61.03 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Derivative gains (losses) | $ | 37,427 | $ | (17,819 | ) | $ | (16,622 | ) | $ | (8,333 | ) |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Derivative gains (losses) recognized in the Consolidated Statements of Operations | $ | (68,131 | ) | $ | 37,427 | $ | (17,819 | ) | |||
Cash settlements recognized in the Consolidated Statements of Cash Flows | $ | (4,136 | ) | $ | (48,291 | ) | $ | (3,511 | ) |
Fair Values | ||||||||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||||||||
Derivative | Derivative | Derivative | Derivative | |||||||||||||||
Type | Balance Sheet Location | Assets | Liabilities | Assets | Liabilities | |||||||||||||
Commodity contracts | Derivative assets/liabilities – current | $ | 4,131 | $ | 23,450 | $ | 34,932 | $ | 991 | |||||||||
Commodity contracts | Derivative assets/liabilities – noncurrent | 2,750 | 3,385 | 10,100 | — | |||||||||||||
$ | 6,881 | $ | 26,835 | $ | 45,032 | $ | 991 |
Fair Values | ||||||||||||||||||
December 31, 2018 | December 31, 2017 | |||||||||||||||||
Derivative | Derivative | Derivative | Derivative | |||||||||||||||
Type | Balance Sheet Location | Assets | Liabilities | Assets | Liabilities | |||||||||||||
Commodity contracts | Derivative assets/liabilities – current | $ | 34,932 | $ | 991 | $ | — | $ | 27,777 | |||||||||
Commodity contracts | Derivative assets/liabilities – noncurrent | 10,100 | — | — | 13,900 | |||||||||||||
$ | 45,032 | $ | 991 | $ | — | $ | 41,677 |
Property and Equipment |
December 31, | |||||||
2019 | 2018 | ||||||
Oil and gas properties: | |||||||
Proved | $ | 1,409,219 | $ | 1,037,993 | |||
Unproved | 53,200 | 63,484 | |||||
Total oil and gas properties | 1,462,419 | 1,101,477 | |||||
Other property and equipment | 25,915 | 20,383 | |||||
Total property and equipment | 1,488,334 | 1,121,860 | |||||
Accumulated depreciation, depletion and amortization | (367,909 | ) | (193,866 | ) | |||
$ | 1,120,425 | $ | 927,994 |
December 31, | |||||||
2018 | 2017 | ||||||
Oil and gas properties: | |||||||
Proved | $ | 1,037,993 | $ | 460,029 | |||
Unproved | 63,484 | 117,634 | |||||
Total oil and gas properties | 1,101,477 | 577,663 | |||||
Other property and equipment | 20,383 | 12,712 | |||||
Total property and equipment | 1,121,860 | 590,375 | |||||
Accumulated depreciation, depletion and amortization | (193,866 | ) | (61,316 | ) | |||
$ | 927,994 | $ | 529,059 |
Asset Retirement Obligations |
Year Ended December 31, | Year Ended December 31, | |||||||||||||
2018 | 2017 | 2019 | 2018 | |||||||||||
Balance at beginning of period | $ | 3,286 | $ | 2,459 | $ | 4,314 | $ | 3,286 | ||||||
Changes in estimates | 354 | 149 | (2 | ) | 354 | |||||||||
Liabilities incurred | 335 | 118 | 290 | 335 | ||||||||||
Liabilities settled | (8 | ) | (139 | ) | (67 | ) | (8 | ) | ||||||
Purchase of properties | 385 | 494 | ||||||||||||
Acquisitions of properties | 83 | 385 | ||||||||||||
Sale of properties | (310 | ) | — | — | (310 | ) | ||||||||
Accretion expense | 272 | 205 | 316 | 272 | ||||||||||
Balance at end of period | $ | 4,314 | $ | 3,286 | $ | 4,934 | $ | 4,314 |
Long-Term Debt |
December 31, 2019 | December 31, 2018 | ||||||||||||||
Principal | Unamortized Discount and Issuance Costs 1 | Principal | Unamortized Discount and Issuance Costs 1 | ||||||||||||
Credit facility 2 | $ | 362,400 | $ | 321,000 | |||||||||||
Second lien term loan | 200,000 | $ | 7,372 | 200,000 | $ | 9,625 | |||||||||
Totals | 562,400 | 7,372 | 521,000 | 9,625 | |||||||||||
Less: Unamortized discount | (2,415 | ) | (3,159 | ) | |||||||||||
Less: Unamortized deferred issuance costs | (4,957 | ) | (6,466 | ) | |||||||||||
Long-term debt, net | $ | 555,028 | $ | 511,375 |
December 31, 2018 | December 31, 2017 | ||||||||||||||
Principal | Unamortized Discount and Issuance Costs 1 | Principal | Unamortized Discount and Issuance Costs 1 | ||||||||||||
Credit facility 2 | $ | 321,000 | $ | 77,000 | |||||||||||
Second lien term loans | 200,000 | $ | 9,625 | 200,000 | $ | 11,733 | |||||||||
Totals | 521,000 | 9,625 | 277,000 | 11,733 | |||||||||||
Less: Unamortized discount | (3,159 | ) | (3,839 | ) | |||||||||||
Less: Unamortized deferred issuance costs | (6,466 | ) | (7,894 | ) | |||||||||||
Long-term debt, net | $ | 511,375 | $ | 265,267 |
2 | Issuance costs of the Credit Facility, which represent costs attributable to the access to credit over its contractual term, have been presented as a component of Other assets (see Note |
Income Taxes |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Current income taxes (benefit) | |||||||||||
Federal | $ | (1,236 | ) | $ | (2,471 | ) | $ | — | |||
(1,236 | ) | (2,471 | ) | — | |||||||
Deferred income taxes (benefit) | |||||||||||
Federal | 1,236 | 2,471 | (4,943 | ) | |||||||
State | 2,137 | 523 | — | ||||||||
3,373 | 2,994 | (4,943 | ) | ||||||||
$ | 2,137 | $ | 523 | $ | (4,943 | ) |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Current income taxes (benefit) | ||||||||||||||||
Federal | $ | (2,471 | ) | $ | — | $ | — | $ | — | |||||||
(2,471 | ) | — | — | — | ||||||||||||
Deferred income taxes (benefit) | ||||||||||||||||
Federal | 2,471 | (4,943 | ) | — | — | |||||||||||
State | 523 | — | — | — | ||||||||||||
2,994 | (4,943 | ) | — | — | ||||||||||||
$ | 523 | $ | (4,943 | ) | $ | — | $ | — |
Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||
Computed at federal statutory rate | $ | 15,272 | 21.0 | % | $ | 47,315 | 21.0 | % | $ | 9,701 | 35.0 | % | ||||||||
State income taxes, net of federal income tax benefit | 1,494 | 2.1 | % | 1,743 | 0.8 | % | (1,383 | ) | (5.0 | )% | ||||||||||
Change in valuation allowance | (14,240 | ) | (19.6 | )% | (48,820 | ) | (21.7 | )% | (24,353 | ) | (87.8 | )% | ||||||||
Effect of rate change on the valuation allowance | — | — | % | — | — | % | (86,612 | ) | (312.5 | )% | ||||||||||
Effect of rate change | — | — | % | — | — | % | 86,612 | 312.5 | % | |||||||||||
Reorganization adjustments | — | — | % | — | — | % | 10,760 | 38.8 | % | |||||||||||
Other, net | (389 | ) | (0.5 | )% | 285 | 0.1 | % | 332 | 1.2 | % | ||||||||||
$ | 2,137 | 3.0 | % | $ | 523 | 0.2 | % | $ | (4,943 | ) | (17.8 | )% |
Successor | Predecessor | |||||||||||||||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||||||||||||||
Computed at federal statutory rate | $ | 47,315 | 21.0 | % | $ | 9,701 | 35.0 | % | $ | (1,854 | ) | 35.0 | % | $ | 369,111 | 35.0 | % | |||||||||||
State income taxes, net of federal income tax benefit | 1,743 | 0.8 | % | (1,383 | ) | (5.0 | )% | 197 | (3.7 | )% | 1,989 | 0.2 | % | |||||||||||||||
Change in valuation allowance | (48,820 | ) | (21.7 | )% | (24,353 | ) | (87.8 | )% | 1,657 | (31.3 | )% | (384,692 | ) | (36.5 | )% | |||||||||||||
Effect of rate change on the valuation allowance | — | — | % | (86,612 | ) | (312.5 | )% | — | — | % | — | — | % | |||||||||||||||
Effect of rate change | — | — | % | 86,612 | 312.5 | % | — | — | % | — | — | % | ||||||||||||||||
Reorganization adjustments | — | — | % | 10,760 | 38.8 | % | — | — | % | 13,572 | 1.3 | % | ||||||||||||||||
Other, net | 285 | 0.1 | % | 332 | 1.2 | % | — | — | % | 20 | — | % | ||||||||||||||||
$ | 523 | 0.2 | % | $ | (4,943 | ) | (17.8 | )% | $ | — | — | % | $ | — | — | % |
December 31, | |||||||
2019 | 2018 | ||||||
Deferred tax assets: | |||||||
Net operating loss (“NOL”) carryforwards | $ | 175,221 | $ | 163,437 | |||
Alternative minimum tax (“AMT”) credit carryforwards | 1,236 | 2,471 | |||||
Asset retirement obligations | 1,073 | 647 | |||||
Pension and postretirement benefits | 340 | 441 | |||||
Share-based compensation | 880 | 546 | |||||
Fair value of derivative instruments | 4,191 | — | |||||
Interest expense limitation | 11,463 | 3,128 | |||||
Other | 2,441 | 2,590 | |||||
196,845 | 173,260 | ||||||
Less: Valuation allowance | (114,939 | ) | (128,650 | ) | |||
Total net deferred tax assets | 81,906 | 44,610 | |||||
Deferred tax liabilities: | |||||||
Property and equipment | 83,330 | 33,413 | |||||
Fair value of derivative instruments | — | 9,248 | |||||
Total deferred tax liabilities | 83,330 | 42,661 | |||||
Net deferred tax assets (liabilities) | $ | (1,424 | ) | $ | 1,949 |
December 31, | |||||||
2018 | 2017 | ||||||
Deferred tax assets: | |||||||
Net operating loss (“NOL”) carryforwards | $ | 163,437 | $ | 127,821 | |||
Property and equipment | — | 37,345 | |||||
Pension and postretirement benefits | 441 | 452 | |||||
Share-based compensation | 546 | 435 | |||||
Fair value of derivative instruments | — | 8,752 | |||||
Other | 8,836 | 7,608 | |||||
173,260 | 182,413 | ||||||
Less: Valuation allowance | (128,650 | ) | (177,470 | ) | |||
Total net deferred tax assets | 44,610 | 4,943 | |||||
Deferred tax liabilities: | |||||||
Property and equipment | 33,413 | — | |||||
Fair value of derivative instruments | 9,248 | — | |||||
Total deferred tax liabilities | 42,661 | — | |||||
Net deferred tax assets | $ | 1,949 | $ | 4,943 |
11. | Leases |
Operating lease cost | $ | 773 | ||
Short-term lease cost | 36,202 | |||
Variable lease cost | 23,762 | |||
Less: Amounts charged as drilling costs 1 | (33,354 | ) | ||
Total lease cost recognized in the Condensed Consolidated Statement of Operations 2 | $ | 27,383 |
1 | Represents the combined gross amounts paid and (i) capitalized as drilling costs for our working interest share and (ii) billed to joint interest partners for their working interest share for short-term leases of operated drilling rigs. |
2 | Includes $12.1 million recognized in Gathering, processing and transportation, $14.5 million recognized in Lease operating and $0.8 million recognized in G&A for the twelve months ended December 31, 2019. |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 659 | ||
ROU assets obtained in exchange for lease obligations: | ||||
Operating leases 1 | $ | 3,325 |
ROU assets - operating leases | $ | 2,740 | ||
Current operating lease obligations | $ | 847 | ||
Noncurrent operating lease obligations | 2,232 | |||
Total operating lease obligations | $ | 3,079 | ||
Weighted-average remaining lease term | ||||
Operating leases | 4.1 Years | |||
Weighted-average discount rate | ||||
Operating leases | 5.97 | % | ||
Maturities of operating lease obligations for the years ending December 31, | ||||
2020 | $ | 847 | ||
2021 | 830 | |||
2022 | 834 | |||
2023 | 833 | |||
2024 | 139 | |||
Total undiscounted lease payments | 3,483 | |||
Less: imputed interest | (404 | ) | ||
Total operating lease obligations | $ | 3,079 |
12. |
Additional Balance Sheet Detail |
December 31, | |||||||
2019 | 2018 | ||||||
Other current assets: | |||||||
Tubular inventory and well materials | $ | 2,989 | $ | 4,061 | |||
Prepaid expenses | 1,469 | 1,064 | |||||
$ | 4,458 | $ | 5,125 | ||||
Other assets: | |||||||
Deferred issuance costs of the Credit Facility, net of amortization | $ | 3,952 | $ | 2,437 | |||
Right-of-use assets - operating leases | 2,740 | — | |||||
Other | 32 | 44 | |||||
$ | 6,724 | $ | 2,481 | ||||
Accounts payable and accrued liabilities: | |||||||
Trade accounts payable | $ | 30,098 | $ | 16,507 | |||
Drilling costs | 18,832 | 22,434 | |||||
Royalties | 44,537 | 51,212 | |||||
Production, ad valorem and other taxes | 3,244 | 2,418 | |||||
Compensation and benefits | 5,272 | 4,489 | |||||
Interest | 730 | 670 | |||||
Current operating lease obligations | 847 | — | |||||
Other | 2,264 | 5,970 | |||||
$ | 105,824 | $ | 103,700 | ||||
Other liabilities: | |||||||
Asset retirement obligations | $ | 4,934 | $ | 4,314 | |||
Noncurrent operating lease obligations | 2,232 | — | |||||
Defined benefit pension obligations | 873 | 857 | |||||
Postretirement health care benefit obligations | 343 | 362 | |||||
$ | 8,382 | $ | 5,533 |
December 31, | |||||||
2018 | 2017 | ||||||
Other current assets: | |||||||
Tubular inventory and well materials | $ | 4,061 | $ | 5,146 | |||
Prepaid expenses | 1,064 | 1,104 | |||||
$ | 5,125 | $ | 6,250 | ||||
Other assets: | |||||||
Deferred issuance costs of the Credit Facility | $ | 2,437 | $ | 2,857 | |||
Deposit in escrow 1 | — | 3,210 | |||||
Other | 44 | 2,440 | |||||
$ | 2,481 | $ | 8,507 | ||||
Accounts payable and accrued liabilities: | |||||||
Trade accounts payable | $ | 16,507 | $ | 22,579 | |||
Drilling costs | 22,434 | 22,389 | |||||
Royalties and revenue - related | 51,212 | 39,287 | |||||
Production, ad valorem and other taxes 2 | 2,418 | 1,275 | |||||
Compensation - related | 4,489 | 2,975 | |||||
Interest | 670 | 223 | |||||
Reserve for bankruptcy claims | — | 3,933 | |||||
Other 2 | 5,970 | 3,520 | |||||
$ | 103,700 | $ | 96,181 | ||||
Other liabilities: | |||||||
Asset retirement obligations | $ | 4,314 | $ | 3,286 | |||
Defined benefit pension obligations | 857 | 971 | |||||
Postretirement health care benefit obligations | 362 | 476 | |||||
Other | — | 100 | |||||
$ | 5,533 | $ | 4,833 |
Fair Value Measurements |
December 31, 2018 | As of December 31, 2019 | |||||||||||||||||||||||||||||||
Fair Value | Fair Value Measurement Classification | Fair Value | Fair Value Measurement Classification | |||||||||||||||||||||||||||||
Description | Measurement | Level 1 | Level 2 | Level 3 | Measurement | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Commodity derivative assets – current | $ | 34,932 | $ | — | $ | 34,932 | $ | — | $ | 4,131 | $ | — | $ | 4,131 | $ | — | ||||||||||||||||
Commodity derivative assets – noncurrent | 10,100 | — | 10,100 | — | 2,750 | — | 2,750 | — | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Commodity derivative liabilities – current | $ | (991 | ) | $ | — | $ | (991 | ) | $ | — | $ | (23,450 | ) | $ | — | $ | (23,450 | ) | $ | — | ||||||||||||
Commodity derivative liabilities – noncurrent | — | — | — | — | (3,385 | ) | — | (3,385 | ) | — |
As of December 31, 2018 | ||||||||||||||||
Fair Value | Fair Value Measurement Classification | |||||||||||||||
Description | Measurement | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Commodity derivative assets – current | $ | 34,932 | $ | — | $ | 34,932 | $ | — | ||||||||
Commodity derivative assets – noncurrent | 10,100 | — | 10,100 | — | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative liabilities – current | $ | (991 | ) | $ | — | $ | (991 | ) | $ | — | ||||||
Commodity derivative liabilities – noncurrent | — | — | — | — |
December 31, 2017 | ||||||||||||||||
Fair Value | Fair Value Measurement Classification | |||||||||||||||
Description | Measurement | Level 1 | Level 2 | Level 3 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative liabilities – current | $ | (27,777 | ) | $ | — | $ | (27,777 | ) | $ | — | ||||||
Commodity derivative liabilities – noncurrent | (13,900 | ) | — | (13,900 | ) | — |
• | Commodity derivatives: We determine the fair values of our commodity derivative instruments based on discounted cash flows derived from third-party quoted forward prices for WTI, LLS and MEH crude oil closing prices as of the end of the reporting periods. We generally use the income approach, using valuation techniques that convert future cash flows to a single discounted value. Each of these is a level 2 input. |
Commitments and Contingencies |
Year | Gathering and Intermediate Transportation | Other Commitments | ||||||
2020 | $ | 12,962 | $ | 289 | ||||
2021 | 12,962 | 140 | ||||||
2022 | 12,962 | 70 | ||||||
2023 | 12,962 | — | ||||||
2024 | 12,962 | — | ||||||
Thereafter | 37,789 | — | ||||||
Total | $ | 102,599 | $ | 499 |
Year | Minimum Rentals | Drilling and Completion | Gathering and Intermediate Transportation | Other Commitments | |||||||||||
2019 | $ | 532 | $ | 20,692 | $ | 11,702 | $ | 254 | |||||||
2020 | 657 | — | 12,962 | 121 | |||||||||||
2021 | 637 | — | 12,962 | 44 | |||||||||||
2022 | 638 | — | 12,962 | — | |||||||||||
2023 | 634 | — | 12,962 | — | |||||||||||
Thereafter | 159 | — | 50,750 | — | |||||||||||
Total | $ | 3,257 | $ | 20,692 | $ | 114,300 | $ | 419 |
Shareholders’ Equity |
Share-Based Compensation and Other Benefit Plans |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | September 30, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Equity-classified awards | $ | 4,618 | $ | 3,809 | $ | 81 | $ | 1,511 | ||||||||
Liability-classified awards | — | — | (19 | ) | ||||||||||||
$ | 4,618 | $ | 3,809 | $ | 81 | $ | 1,492 |
Restricted Stock Units | Weighted-Average Grant Date Fair Value | |||||
Balance at beginning of year | 208,040 | $ | 47.35 | |||
Granted | 13,175 | $ | 30.35 | |||
Vested | (74,888 | ) | $ | 39.40 | ||
Forfeited | (9,451 | ) | $ | 51.71 | ||
Balance at end of year | 136,876 | $ | 49.76 |
Restricted Stock Units | Weighted-Average Grant Date Fair Value | |||||
Balance at beginning of year | 259,990 | $ | 41.32 | |||
Granted | 42,459 | $ | 65.96 | |||
Vested | (79,828 | ) | $ | 38.90 | ||
Forfeited | (14,581 | ) | $ | 43.64 | ||
Balance at end of year | 208,040 | $ | 47.35 |
2019 | 2017 | |||
Expected volatility | 49.9 | % | 59.63% to 62.18% | |
Dividend yield | 0.0% | 0.0% | ||
Risk-free interest rate | 1.66 | % | 1.44% to 1.51% |
Performance Restricted Stock Units | Weighted-Average Grant Date Fair Value | |||||
Balance at beginning of year | 89,071 | $ | 58.69 | |||
Granted | 15,066 | $ | 34.02 | |||
Vested | (3,917 | ) | $ | 63.25 | ||
Forfeited | (1,083 | ) | $ | 63.25 | ||
Expired | (19,223 | ) | $ | 62.92 | ||
Balance at end of year | 79,914 | $ | 52.73 |
Performance Restricted Stock Units | Weighted-Average Fair Value | |||||
Balance at beginning of year | 98,526 | $ | 57.81 | |||
Granted | — | $ | — | |||
Vested | (1,968 | ) | $ | 49.56 | ||
Forfeited | (7,487 | ) | $ | 49.56 | ||
Balance at end of year | 89,071 | $ | 58.69 |
Interest Expense |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Interest on borrowings and related fees | $ | 36,593 | $ | 32,164 | $ | 6,995 | |||||
Accretion of original issue discount 1 | 743 | 680 | 161 | ||||||||
Amortization of debt issuance costs 2 | 2,611 | 2,736 | 1,961 | ||||||||
Capitalized interest | (4,136 | ) | (9,118 | ) | (2,725 | ) | |||||
$ | 35,811 | $ | 26,462 | $ | 6,392 |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Interest on borrowings and related fees 1 | $ | 32,164 | $ | 6,995 | $ | 678 | $ | 36,012 | ||||||||
Accretion of original issue discount 2 | 680 | 161 | — | — | ||||||||||||
Amortization of debt issuance costs 3 | 2,736 | 1,961 | 226 | 22,189 | ||||||||||||
Capitalized interest | (9,118 | ) | (2,725 | ) | (25 | ) | (183 | ) | ||||||||
$ | 26,462 | $ | 6,392 | $ | 879 | $ | 58,018 |
Includes accretion of original issue discount attributable to the Second Lien Facility (see Note |
The year ended December 31, 2017 includes a total of $0.8 million of write-offs attributable to changes in the composition of financial institutions comprising the Credit Facility’s bank group in connection with amendments to the Credit Facility (see Note |
Earnings per Share |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Net income – basic and diluted | $ | 70,589 | $ | 224,785 | $ | 32,662 | |||||
Weighted-average shares – basic | 15,110 | 15,059 | 14,996 | ||||||||
Effect of dilutive securities 1 | 16 | 233 | 67 | ||||||||
Weighted-average shares – diluted | 15,126 | 15,292 | 15,063 |
1 | Represents a combination of unvested RSUs and PRSUs that are dilutive with the exception of December 31, 2019 at which time all of our unvested PRSUs were determined to be at a zero percent vesting level due to the relative performance of our common stock. |
Successor | Predecessor | |||||||||||||||
September 13 Through | January 1 Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Net income (loss) | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,054,602 | |||||||
Less: Preferred stock dividends | — | — | — | (5,972 | ) | |||||||||||
Net income (loss) attributable to common shareholders – basic and diluted | $ | 224,785 | $ | 32,662 | $ | (5,296 | ) | $ | 1,048,630 | |||||||
Weighted-average shares – basic | 15,059 | 14,996 | 14,992 | 88,013 | ||||||||||||
Effect of dilutive securities 1 | 233 | 67 | — | 36,074 | ||||||||||||
Weighted-average shares – diluted | 15,292 | 15,063 | 14,992 | 124,087 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||
2019 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||
Revenues 1 | $ | 77,211 | $ | 111,580 | $ | 127,185 | $ | 124,856 | $ | 105,228 | $ | 122,767 | $ | 119,304 | $ | 123,917 | |||||||||||||||
Operating income | $ | 33,912 | $ | 55,886 | $ | 64,036 | $ | 54,921 | $ | 38,668 | $ | 47,888 | $ | 40,040 | $ | 50,225 | |||||||||||||||
Income (loss) attributable to common shareholders 2 | $ | 10,295 | $ | (2,521 | ) | $ | 16,276 | $ | 200,735 | ||||||||||||||||||||||
Income (loss) per share – basic 3 | $ | 0.68 | $ | (0.17 | ) | $ | 1.08 | $ | 13.32 | ||||||||||||||||||||||
Income (loss) per share – diluted 3 | $ | 0.68 | $ | (0.17 | ) | $ | 1.06 | $ | 13.10 | ||||||||||||||||||||||
Income (loss) | $ | (38,697 | ) | $ | 51,625 | $ | 54,362 | $ | 3,299 | ||||||||||||||||||||||
Income (loss) per share – basic 2 | $ | (2.56 | ) | $ | 3.42 | $ | 3.60 | $ | 0.22 | ||||||||||||||||||||||
Income (loss) per share – diluted 2 | $ | (2.56 | ) | $ | 3.40 | $ | 3.59 | $ | 0.22 | ||||||||||||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||||||||||||
Basic | 15,042 | 15,058 | 15,062 | 15,075 | 15,098 | 15,106 | 15,110 | 15,126 | |||||||||||||||||||||||
Diluted | 15,081 | 15,058 | 15,344 | 15,328 | 15,098 | 15,162 | 15,160 | 15,131 |
2018 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Revenues 3 | $ | 77,211 | $ | 111,580 | $ | 127,185 | $ | 124,856 | ||||||||
Operating income | $ | 33,912 | $ | 55,886 | $ | 64,036 | $ | 54,921 | ||||||||
Income (loss) 4 | $ | 10,295 | $ | (2,521 | ) | $ | 16,276 | $ | 200,735 | |||||||
Income (loss) per share – basic 2 | $ | 0.68 | $ | (0.17 | ) | $ | 1.08 | $ | 13.32 | |||||||
Income (loss) per share – diluted 2 | $ | 0.68 | $ | (0.17 | ) | $ | 1.06 | $ | 13.10 | |||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 15,042 | 15,058 | 15,062 | 15,075 | ||||||||||||
Diluted | 15,081 | 15,058 | 15,344 | 15,328 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
2017 | |||||||||||||||
Revenues 4 | $ | 34,986 | $ | 36,282 | $ | 34,459 | $ | 54,327 | |||||||
Operating income | $ | 11,623 | $ | 11,460 | $ | 7,547 | $ | 21,242 | |||||||
Income (loss) attributable to common shareholders | $ | 28,081 | $ | 21,329 | $ | (5,947 | ) | $ | (10,801 | ) | |||||
Income (loss) per share – basic 3 | $ | 1.87 | $ | 1.42 | $ | (0.40 | ) | $ | (0.72 | ) | |||||
Income (loss) per share – diluted 3 | $ | 1.86 | $ | 1.42 | $ | (0.40 | ) | $ | (0.72 | ) | |||||
Weighted-average shares outstanding: | |||||||||||||||
Basic | 14,992 | 14,992 | 14,994 | 15,006 | |||||||||||
Diluted | 15,126 | 15,050 | 14,994 | 15,006 |
1 | Includes gains (losses) on sales of assets of less than $0.1 million, less than $0.1 million, less than $0.1 million and |
4 | The quarter ended December 31, 2018 includes a mark-to-market gain on derivatives of $149.2 million. |
Oil | NGLs | Natural Gas | Total Equivalents | Oil | NGLs | Natural Gas | Total Equivalents | |||||||||||||||
Proved Developed and Undeveloped Reserves | (MBbl) | (MBbl) | (MMcf) | (MBOE) | (MBbl) | (MBbl) | (MMcf) | (MBOE) | ||||||||||||||
December 31, 2015 (Predecessor) | 29,462 | 7,204 | 42,153 | 43,691 | ||||||||||||||||||
Revisions of previous estimates | (1,359 | ) | (1,225 | ) | (8,661 | ) | (4,028 | ) | ||||||||||||||
Extensions and discoveries | 11,529 | 1,483 | 7,196 | 14,213 | ||||||||||||||||||
Production | (3,021 | ) | (697 | ) | (4,006 | ) | (4,386 | ) | ||||||||||||||
December 31, 2016 (Successor) | 36,611 | 6,765 | 36,682 | 49,490 | ||||||||||||||||||
December 31, 2016 | 36,611 | 6,765 | 36,682 | 49,490 | ||||||||||||||||||
Revisions of previous estimates | (5,735 | ) | (2,071 | ) | (10,468 | ) | (9,550 | ) | (5,735 | ) | (2,071 | ) | (10,468 | ) | (9,550 | ) | ||||||
Extensions and discoveries | 23,850 | 3,571 | 16,840 | 30,228 | 23,850 | 3,571 | 16,840 | 30,228 | ||||||||||||||
Production | (2,764 | ) | (523 | ) | (2,949 | ) | (3,779 | ) | (2,764 | ) | (523 | ) | (2,949 | ) | (3,779 | ) | ||||||
Purchase of reserves | 3,867 | 1,122 | 7,162 | 6,183 | 3,867 | 1,122 | 7,162 | 6,183 | ||||||||||||||
December 31, 2017 (Successor) | 55,829 | 8,864 | 47,267 | 72,572 | ||||||||||||||||||
December 31, 2017 | 55,829 | 8,864 | 47,267 | 72,572 | ||||||||||||||||||
Revisions of previous estimates | (19,096 | ) | (1,789 | ) | (9,608 | ) | (22,487 | ) | (19,096 | ) | (1,789 | ) | (9,608 | ) | (22,487 | ) | ||||||
Extensions and discoveries | 48,119 | 11,737 | 59,447 | 69,764 | 48,119 | 11,737 | 59,447 | 69,764 | ||||||||||||||
Production | (6,077 | ) | (1,004 | ) | (5,181 | ) | (7,944 | ) | (6,077 | ) | (1,004 | ) | (5,181 | ) | (7,944 | ) | ||||||
Purchase of reserves | 11,278 | 969 | 5,827 | 13,218 | 11,278 | 969 | 5,827 | 13,218 | ||||||||||||||
Sale of reserves in place | (397 | ) | (733 | ) | (6,259 | ) | (2,173 | ) | (397 | ) | (733 | ) | (6,259 | ) | (2,173 | ) | ||||||
December 31, 2018 (Successor) | 89,656 | 18,044 | 91,493 | 122,950 | ||||||||||||||||||
December 31, 2018 | 89,656 | 18,044 | 91,493 | 122,950 | ||||||||||||||||||
Revisions of previous estimates | (24,709 | ) | (4,055 | ) | (25,440 | ) | (33,006 | ) | ||||||||||||||
Extensions and discoveries | 40,190 | 6,575 | 31,045 | 51,939 | ||||||||||||||||||
Production | (7,453 | ) | (1,491 | ) | (7,067 | ) | (10,121 | ) | ||||||||||||||
Purchase of reserves | 1,212 | 81 | 418 | 1,363 | ||||||||||||||||||
December 31, 2019 | 98,896 | 19,154 | 90,449 | 133,125 | ||||||||||||||||||
Proved Developed Reserves: | ||||||||||||||||||||||
December 31, 2016 | 17,734 | 4,335 | 24,899 | 26,219 | ||||||||||||||||||
December 31, 2017 | 22,412 | 4,882 | 27,229 | 31,832 | 22,412 | 4,882 | 27,229 | 31,832 | ||||||||||||||
December 31, 2018 | 35,190 | 6,279 | 31,833 | 46,774 | 35,190 | 6,279 | 31,833 | 46,774 | ||||||||||||||
December 31, 2019 | 40,641 | 8,846 | 41,808 | 56,455 | ||||||||||||||||||
Proved Undeveloped Reserves: | ||||||||||||||||||||||
December 31, 2016 | 18,877 | 2,430 | 11,783 | 23,271 | ||||||||||||||||||
December 31, 2017 | 33,417 | 3,982 | 20,038 | 40,740 | 33,417 | 3,982 | 20,038 | 40,740 | ||||||||||||||
December 31, 2018 | 54,466 | 11,765 | 59,660 | 76,176 | 54,466 | 11,765 | 59,660 | 76,176 | ||||||||||||||
December 31, 2019 | 58,255 | 10,308 | 48,641 | 76,670 |
December 31, | |||||||||||
2019 | 2018 | 2016 | |||||||||
Oil and gas properties: | |||||||||||
Proved | $ | 1,409,219 | $ | 1,037,993 | $ | 460,029 | |||||
Unproved | 53,200 | 63,484 | 117,634 | ||||||||
Total oil and gas properties | 1,462,419 | 1,101,477 | 577,663 | ||||||||
Other property and equipment | 21,317 | 16,462 | 10,057 | ||||||||
Total capitalized costs relating to oil and gas producing activities | 1,483,736 | 1,117,939 | 587,720 | ||||||||
Accumulated depreciation and depletion | (364,716 | ) | (191,802 | ) | (60,247 | ) | |||||
Net capitalized costs relating to oil and gas producing activities 1 | $ | 1,119,020 | $ | 926,137 | $ | 527,473 |
December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Oil and gas properties: | |||||||||||
Proved | $ | 1,037,993 | $ | 460,029 | $ | 251,083 | |||||
Unproved | 63,484 | 117,634 | 4,719 | ||||||||
Total oil and gas properties | 1,101,477 | 577,663 | 255,802 | ||||||||
Other property and equipment | 16,462 | 10,057 | 1,230 | ||||||||
Total capitalized costs relating to oil and gas producing activities | 1,117,939 | 587,720 | 257,032 | ||||||||
Accumulated depreciation and depletion | (191,802 | ) | (60,247 | ) | (11,669 | ) | |||||
Net capitalized costs relating to oil and gas producing activities 1 | $ | 926,137 | $ | 527,473 | $ | 245,363 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Development costs 1 | $ | 355,925 | $ | 416,037 | $ | 135,360 | |||||
Proved property acquisition costs 2 | 6,051 | 86,514 | 43,151 | ||||||||
Unproved property acquisition costs 3 | 7,570 | 30,637 | 153,905 | ||||||||
Exploration costs 4 | 363 | 377 | 696 | ||||||||
$ | 369,909 | $ | 533,565 | $ | 333,112 |
Successor | Predecessor | |||||||||||||||
September 13 | January 1 | |||||||||||||||
Through | Through | |||||||||||||||
Year Ended December 31, | December 31, | September 12, | ||||||||||||||
2018 | 2017 | 2016 | 2016 | |||||||||||||
Development costs 1 | $ | 416,037 | $ | 135,360 | $ | 5,399 | $ | 4,777 | ||||||||
Proved property acquisition costs 2 | 86,514 | 43,151 | 53 | — | ||||||||||||
Unproved property acquisition costs 3 | 30,637 | 153,905 | 25 | 183 | ||||||||||||
Exploration costs 4 | 377 | 696 | 567 | 8,311 | ||||||||||||
$ | 533,565 | $ | 333,112 | $ | 6,044 | $ | 13,271 |
Crude Oil | NGLs | Natural Gas | |||||||||
$ per Bbl | $ per Bbl | $ per MMBtu | |||||||||
As of December 31, 2016 | $ | 42.75 | $ | 12.33 | $ | 2.48 | |||||
As of December 31, 2017 | $ | 51.34 | $ | 18.48 | $ | 2.98 | |||||
As of December 31, 2018 | $ | 65.56 | $ | 23.60 | $ | 3.10 |
Crude Oil | NGLs | Natural Gas | |||||||||
$ per Bbl | $ per Bbl | $ per MMBtu | |||||||||
December 31, 2017 | $ | 51.34 | $ | 18.48 | $ | 2.98 | |||||
December 31, 2018 | $ | 65.56 | $ | 23.60 | $ | 3.10 | |||||
December 31, 2019 | $ | 55.67 | $ | 13.36 | $ | 2.58 |
December 31, | December 31, | |||||||||||||||||||||
2018 | 2017 | 2016 | 2019 | 2018 | 2017 | |||||||||||||||||
Future cash inflows | $ | 6,719,145 | $ | 3,091,366 | $ | 1,667,971 | $ | 6,260,292 | $ | 6,719,145 | $ | 3,091,366 | ||||||||||
Future production costs | (1,852,168 | ) | (1,069,910 | ) | (673,538 | ) | (1,792,891 | ) | (1,852,168 | ) | (1,069,910 | ) | ||||||||||
Future development costs | (1,208,815 | ) | (689,998 | ) | (327,213 | ) | (1,174,215 | ) | (1,208,815 | ) | (689,998 | ) | ||||||||||
Future net cash flows before income tax | 3,658,162 | 1,331,458 | 667,220 | 3,293,186 | 3,658,162 | 1,331,458 | ||||||||||||||||
Future income tax expense | (413,137 | ) | (84,350 | ) | — | (334,451 | ) | (413,137 | ) | (84,350 | ) | |||||||||||
Future net cash flows | 3,245,025 | 1,247,108 | 667,220 | 2,958,735 | 3,245,025 | 1,247,108 | ||||||||||||||||
10% annual discount for estimated timing of cash flows | (1,621,135 | ) | (656,624 | ) | (349,670 | ) | (1,469,853 | ) | (1,621,135 | ) | (656,624 | ) | ||||||||||
Standardized measure of discounted future net cash flows | $ | 1,623,890 | $ | 590,484 | $ | 317,550 | $ | 1,488,882 | $ | 1,623,890 | $ | 590,484 |
Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
Sales of oil and gas, net of production costs | $ | (374,694 | ) | $ | (361,478 | ) | $ | (118,137 | ) | ||
Net changes in prices and production costs | (402,616 | ) | 585,737 | 170,488 | |||||||
Changes in future development costs | 415,193 | 206,901 | 30,692 | ||||||||
Extensions and discoveries | 459,501 | 809,880 | 131,060 | ||||||||
Development costs incurred during the period | 253,982 | 204,160 | 74,880 | ||||||||
Revisions of previous quantity estimates | (515,345 | ) | (483,091 | ) | (122,357 | ) | |||||
Purchases of reserves-in-place | 12,241 | 86,128 | 80,878 | ||||||||
Sale of reserves-in-place | — | (8,912 | ) | — | |||||||
Changes in production rates and all other | (194,453 | ) | 60,160 | 12,161 | |||||||
Accretion of discount | 176,935 | 60,897 | 31,755 | ||||||||
Net change in income taxes | 34,248 | (126,976 | ) | (18,486 | ) | ||||||
Net increase (decrease) | (135,008 | ) | 1,033,406 | 272,934 | |||||||
Beginning of year | 1,623,890 | 590,484 | 317,550 | ||||||||
End of year | $ | 1,488,882 | $ | 1,623,890 | $ | 590,484 |
Year Ended December 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Sales of oil and gas, net of production costs | $ | (361,478 | ) | $ | (118,137 | ) | $ | (89,080 | ) | ||
Net changes in prices and production costs | 585,737 | 170,488 | (11,971 | ) | |||||||
Changes in future development costs | 206,901 | 30,692 | 59,266 | ||||||||
Extensions and discoveries | 809,880 | 131,060 | 35,321 | ||||||||
Development costs incurred during the period | 204,160 | 74,880 | 6,775 | ||||||||
Revisions of previous quantity estimates | (483,091 | ) | (122,357 | ) | (38,151 | ) | |||||
Purchases of reserves-in-place | 86,128 | 80,878 | — | ||||||||
Sale of reserves-in-place | (8,912 | ) | — | — | |||||||
Changes in production rates and all other | 60,160 | 12,161 | (252 | ) | |||||||
Accretion of discount | 60,897 | 31,755 | 32,331 | ||||||||
Net change in income taxes | (126,976 | ) | (18,486 | ) | — | ||||||
Net increase (decrease) | 1,033,406 | 272,934 | (5,761 | ) | |||||||
Beginning of year | 590,484 | 317,550 | 323,311 | ||||||||
End of year | $ | 1,623,890 | $ | 590,484 | $ | 317,550 |
Item 9 | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
Item 9A | Controls and Procedures |
Item 9B | Other Information |
Item 10 | Directors, Executive Officers and Corporate Governance |
Item 11 | Executive Compensation |
Item 13 | Certain Relationships and Related Transactions, and Director Independence |
Item 14 | Principal Accountant Fees and Services |
(1) | Financial Statements |
(2) | Exhibits |
Second Amended and Restated Articles of Incorporation of Penn Virginia Corporation (incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K filed on September 15, 2016). | |
Master Agreement, Borrowing Base Increase Agreement, and Amendment No. | |
Pledge and Security Agreement, dated as of September 12, 2016, by Penn Virginia Holding Corp., Penn Virginia Corporation and the other grantors party thereto in favor of Wells Fargo Bank, National Association, as administrative agent for the benefit of the secured parties thereunder (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on September 15, 2016). | |
Registration Rights Agreement, dated as of September 12, 2016 between Penn Virginia Corporation and the holders party thereto (incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed on September 15, 2016). | |
Credit Agreement, dated as of September 29, 2017, by and among Penn Virginia Holding Corp., as borrower, Penn Virginia Corporation, the lenders party thereto and Jefferies Finance LLC, as administrative agent, collateral agent and sole lead arranger (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on October 5, 2017). | |
Pledge and Security Agreement, dated as of September 29, 2017, by Penn Virginia Holding Corp., Penn Virginia Corporation and the other grantors party thereto in favor of Jefferies Finance LLC, as administrative agent and collateral agent for the ratable benefit of the secured parties thereunder (incorporated by reference to Exhibit 10.3 to Registrant’s Current Report on Form 8-K filed on October 5, 2017). | |
Intercreditor Agreement, dated as of September 29, 2017, by and among Penn Virginia Holding Corp., Penn Virginia Corporation, the subsidiaries of Penn Virginia Holding Corp. party thereto, Wells Fargo Bank, National Association and Jefferies Finance LLC (incorporated by reference to Exhibit 10.4 to Registrant’s Current Report on Form 8-K filed on October 5, 2017). | |
Second Amended and Restated Construction and Field Gathering Agreement by and between Republic Midstream, LLC and Penn Virginia Oil & Gas, L.P. dated August 1, 2016 (incorporated by reference to Exhibit 10.5 to Registrant’s Quarterly Report on Form 10-Q/A filed on November 28, 2016). | |
Amendment No. 1 to the Second Amended and Restated Construction and Field Gathering Agreement dated as of April 13, 2017 but effective August 1, 2016 by and between Republic Midstream, LLC and Penn Virginia Oil & Gas, L.P. (incorporated by reference to Exhibit 10.4.1 to Registrant’s Registration Statement on Form S-3/A (Amendment No. 2) filed on May 2, 2017). | |
Second Amendment to Second Amended and Restated Construction and Field Gathering Agreement dated as of July 2, 2018 by and between Republic Midstream, LLC and Penn Virginia Oil & Gas L.P. (incorporated by reference to Exhibit 10.1 to Registrant’s Quarterly Report on Form 10-Q filed on November 8, 2018). | |
Third Amendment to Second Amended and Restated Construction and Field Gathering Agreement dated as of December 14, 2018 by and between Republic Midstream, LLC and Penn Virginia Oil & Gas L.P. (incorporated by reference to Exhibit 10.9.3 to Registrant’s Annual Report on Form 10-K filed on February 27, 2019). | |
First Amended and Restated Crude Oil Marketing Agreement dated as of August 1, 2016, by and between Penn Virginia Oil & Gas, L.P., Republic Midstream Marketing, LLC and solely for purposes of Article V therein, Penn Virginia Corporation (incorporated by reference to Exhibit 10.6 to Registrant’s Quarterly Report on Form 10-Q/A filed on November 28, 2016). | |
First Amendment to First Amended and Restated Crude Oil Marketing Agreement dated as of July 2, 2018 by and between Penn Virginia Oil & Gas, L.P. and Republic Midstream Marketing, LLC.(incorporated by reference to Exhibit 10.2 to Registrant’s Quarterly Report on Form 10-Q filed on November 8, 2018). | |
Penn Virginia Corporation 2016 Management Incentive Plan (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on October 11, 2016). | |
Form of Officer Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on January 30, 2017). | |
Form of Performance Restricted Stock Unit Award Agreement (incorporated by reference to Exhibit 10.2 to Registrant’s Current Report on Form 8-K filed on January 30, 2017). | |
Form of Director Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on December 21, 2016). | |
Penn Virginia Corporation | |
Form of Officer Restricted Stock Unit Award Agreement under 2019 Management Incentive Plan. | |
Form of Performance Restricted Stock Unit Award Agreement under 2019 Management Incentive Plan. | |
Form of Director Restricted Stock Award Agreement under 2019 Management Incentive Plan (incorporated by reference to Exhibit | |
Separation and Transition Agreement, entered into as of July 1, 2019, between Penn Virginia Corporation and Steven A. Hartman (incorporated by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K filed on | |
Penn Virginia Corporation 2017 Special Severance Plan Amended and Restated Effective July 18, 2018 (incorporated by reference to Exhibit 10.3 to Registrant’s Quarterly Report on Form 10-Q filed on November 8, 2018). | |
Form of Director Indemnification Agreement (incorporated by reference to Exhibit 10.6 to Registrant’s Current Report on Form 8-K filed on October 11, 2016). | |
Subsidiaries of Penn Virginia Corporation. | |
Consent of Grant Thornton LLP. | |
Consent of DeGolyer and MacNaughton. | |
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification Pursuant to 18 Section 302 of the Sarbanes-Oxley Act of 2002. | |
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
Report of DeGolyer and MacNaughton dated |
(101.INS)# | Inline XBRL Instance Document |
(101.SCH)# | Inline XBRL Taxonomy Extension Schema Document |
(101.CAL)# | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
(101.DEF)# | Inline XBRL Taxonomy Extension Definition Linkbase Document |
(101.LAB)# | Inline XBRL Taxonomy Extension Label Linkbase Document |
(101.PRE)# | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
(104)# | The cover page of Penn Virginia Corporation's Annual Report on Form 10-K for the year ended December 31, 2019, formatted in Inline XBRL (included within the Exhibit 101 attachments). |
* | Management contract or compensatory plan or arrangement. |
# | Filed herewith. |
† | Confidential treatment has been requested for this exhibit and confidential portions have been filed separately with the Securities and Exchange Commission. |
†† | Furnished herewith. |
Item 16 | Form 10-K Summary |
PENN VIRGINIA CORPORATION | ||
By: | /s/ | |
Senior Vice President and Chief Financial Officer | ||
(Principal Financial Officer) | ||
February | By: | /s/ TAMMY L. HINKLE |
Tammy L. Hinkle | ||
Vice President and Controller | ||
(Principal Accounting Officer) |
/s/ JOHN A. BROOKS | Chief Executive Officer and Director | February | ||
John A. Brooks | (Principal Executive Officer) | |||
/s/ | Senior Vice President and Chief Financial Officer | February | ||
(Principal Financial Officer) | ||||
/s/ TAMMY L. HINKLE | Vice President and Controller | February | ||
Tammy L. Hinkle | (Principal Accounting Officer) | |||
/s/ | ||||
Director | February | |||
/s/ DARIN G. HOLDERNESS | February | |||
Darin G. Holderness | ||||
/s/ | Director | February | ||
/s/ JERRY R. SCHUYLER | Director | February | ||
Jerry R. Schuyler | ||||
/s/ BRIAN STECK | Director | February 28, 2020 | ||
Brian Steck | ||||
/s/ JEFFREY WOJAHN | Director | February 28, 2020 | ||
Jeffrey Wojahn |