Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Apr. 20, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | Ultra Petroleum Corp. | ||
Entity Central Index Key | 1,022,646 | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,918,659,990 | ||
Entity Common Stock, Shares Outstanding | 153,388,832 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | Q1 | ||
Trading Symbol | UPL |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues [Abstract] | ||
Natural gas sales | $ 138,102 | $ 183,795 |
Oil sales | 21,284 | 35,514 |
Oil and Gas Revenue | 159,386 | 219,309 |
Operating Expenses [Abstract] | ||
Lease operating expenses | 25,394 | 26,112 |
LGS operating lease expense | 5,171 | 5,162 |
Production taxes | 15,231 | 19,895 |
Gathering fees | 22,450 | 19,757 |
Transportation charges | 23,555 | 20,191 |
Depletion, depreciation and amoritzation | 30,848 | 94,590 |
General and administrative | 4,219 | 3,640 |
Costs and Expenses | 126,868 | 189,347 |
Operating Income (Loss) | 32,518 | 29,962 |
Other Nonoperating Income (Expense) [Abstract] | ||
Interest expense | (49,903) | (42,668) |
Gain (loss) on commodity derivatives | 0 | 36,865 |
Deferred gain on sale of liquids gathering system | 2,638 | 2,638 |
Litigation expense | 0 | (3,664) |
Restructuring expenses | (5,579) | 0 |
Other income (expense), net | (1,695) | 34 |
Other Nonoperating Income (Expense) | (54,539) | (6,795) |
Income (loss) before income taxes | (22,021) | 23,167 |
Income Tax Expense (Benefit) | (190) | (2,022) |
Net Income (Loss) | $ (21,831) | $ 25,189 |
Earnings Per Share, Basic [Abstract] | ||
Earnings Per Share, Basic | $ (0.14) | $ 0.16 |
Fully Diluted Earnings per Share: | ||
Earnings Per Share, Diluted | $ (0.14) | $ 0.16 |
Weighted Average Number of Shares Outstanding, Basic | 153,322 | 153,042 |
Weighted Average Number of Shares Outstanding, Diluted | 153,322 | 155,703 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets [Abstract] | ||
Cash and cash equivalents | $ 281,506 | $ 4,143 |
Restricted cash | 1,250 | 115 |
Oil and gas revenue receivable | 46,495 | 61,881 |
Joint interest billing and other receivables | 14,167 | 11,356 |
Deposits and retainers | 13,690 | 236 |
Income tax receivable | 5,340 | 5,150 |
Inventory | 4,027 | 4,269 |
Other current assets | 6,136 | 4,064 |
Total current assets | 372,611 | 91,214 |
Oil And Gas Properties Net Using Full Cost Method Of Accounting [Abstract] | ||
Proven | 901,084 | 851,145 |
Unproven properties not being amortized | 0 | 0 |
Property, plant and equipment, net | 8,391 | 8,844 |
Deferred tax assets | 1 | 1 |
Other noncurrent assets | 835 | 835 |
Total assets | 1,282,922 | 952,039 |
Current Liabilities [Abstract] | ||
Accounts payable | 42,547 | 93,415 |
Accrued liabilities | 64,916 | 72,428 |
Current portion of long term debt | 3,739,787 | 3,370,553 |
Production taxes payable | 51,414 | 52,273 |
Interest payable | 84,910 | 42,657 |
Capital cost accrual | 9,478 | 20,571 |
Total current liabilities | 3,993,052 | 3,651,897 |
Deferred gain on sale of liquids gathering system | 123,656 | 126,295 |
Other long-term obligations | $ 177,564 | $ 165,784 |
Commitments and contingencies | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common Stock, Value, Issued | $ 504,778 | $ 502,050 |
Treasury Stock, Value | (176) | (176) |
Retained loss | (3,515,952) | (3,493,811) |
Total shareholders' deficit | (3,011,350) | (2,991,937) |
Total liabilities and shareholders' equity | $ 1,282,922 | $ 952,039 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Statement of Financial Position [Abstract] | ||
Common Stock, No Par Value | ||
Common stock, shares authorized | unlimited | unlimited |
Common Stock, Shares, Issued | 153,388,832 | 153,255,989 |
Common Stock, Shares, Outstanding | 153,388,832 | 153,255,989 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities [Abstract] | ||
Net Income (Loss) | $ (21,831) | $ 25,189 |
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||
Depletion, depreciation and amoritzation | 30,848 | 94,590 |
Deferred gain on sale of liquids gathering system | (2,638) | (2,638) |
Deferred Income Tax Provision (Benefit) | 0 | (258) |
Unrealized Gain (Loss) on Derivatives | 0 | (7,506) |
Stock compensation | 1,797 | 1,993 |
Other | 4,063 | 3,601 |
Increase (Decrease) in Operating Capital [Abstract] | ||
Restricted cash | (1,135) | 2 |
Accounts receivable | 10,940 | 35,743 |
Other current assets | (15,121) | (2,265) |
Accounts payable | (50,867) | (22,308) |
Accrued liabilities | (9,970) | (9,586) |
Production taxes payable | (859) | (2,708) |
Interest payable | 42,253 | (2,518) |
Other long-term obligations | 9,020 | 12,232 |
Income taxes payable receivable | (190) | (1,764) |
Net Cash Provided by (Used in) Operating Activities | (3,690) | 121,799 |
Investing Activities [Abstract] | ||
Acquisition Costs | 0 | 3,964 |
Oil and gas property expenditures | (76,672) | (132,086) |
Change in capital cost accrual | (11,092) | (12,248) |
Inventory | (8) | (14) |
Purchase of Capital Assets | 132 | 90 |
Net Cash Provided by (Used in) Investing Activities | (87,640) | (140,294) |
Net Cash Provided by (Used in) Financing Activities [Abstract] | ||
Borrowings on long-term debt | 369,000 | 454,000 |
Payments on long-term debt | 0 | (391,000) |
Deferred financing costs | 0 | 6 |
Repurchased shares - net share settlements | (307) | (2,419) |
Payment of contingent consideration | 0 | (17,049) |
Net Cash Provided by (Used in) Financing Activities | 368,693 | 43,538 |
Cash and Cash Equivalents, Period Increase (Decrease) | 277,363 | 25,043 |
Cash and Cash Equivalents, at Carrying Value | 4,143 | 8,919 |
Cash and Cash Equivalents, at Carrying Value | $ 281,506 | $ 33,962 |
Liquidity and Going Concern Dis
Liquidity and Going Concern Disclosure | 3 Months Ended |
Mar. 31, 2016 | |
Liquidity And Going Concern Disclosure [Abstract] | |
Liquidity and Ability to Continue as a Going Concern [Text Block] | Liquidity and Ability t o Continue a s a Going Concern As di sclosed in our most recent Annual Report on Form 10-K, because low crude oil and natural gas prices during 2015 had a significant adverse impact on our business and our financial condition, substantial doubt exists that we will be able to continue as a goi ng concern. Although crude oil and natural gas prices have improved somewhat in recent weeks, product prices continue to be historically low, our financial condition continues to be distressed, and substantial doubt continues to exist that we will be able to continue as a going concern. Our ability to continue as a going concern is dependent on many factors, including our ability to comply with the obligations in our existing debt agreements, to obtain waivers or other relief if we are unable to comply, and /or to be able to repay or replace our indebtedness as it matures. We can offer no assurance that we will be able to obtain waivers or other relief, and it is unlikely we will be able to comply with all of the obligations and covenants in our debt agreemen ts. In addition, we have substantial unpaid principal maturities and interest payments that are past due, and we have substantial additional principal maturities and interest payments coming due in the near future. We do not have sufficient liquidity to pa y our unpaid and near-term principal maturities and interest payments without raising additional capital. We do not have sufficient liquidity to pay our indebtedness if it is accelerated and becomes immediately due and payable without raising additional ca pital. Additional capital may be available only on extremely onerous terms if it is available at all. Due to our current financial constraints, including the likelihood of the occurrence of events of default under our debt agreements, there is a substantia l risk that it may be necessary for us to seek protection from our creditors under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”) or the Canadian Bankruptcy and Insolvency Act, or an involuntary petition for bankruptcy may be filed against us in the U.S. or in Canada. Investors should review the disclosures and other information, including the risk factors, provided in this Quarterly Report on Form 10-Q and our most recent Annual Report on Form 10-K. On March 1, 2016, we entered into a Limited Waiv er Agreement with the lenders under the credit agreement between our wholly-owned subsidiary, Ultra Resources, Inc. (“Ultra Resources), as the borrower, and JPMorgan Chase Bank, as the administrative agent, and the lenders thereto (the “Credit Agreement”) (the “Bank Waiver”) and a Waiver and Amendment to Master Note Purchase Agreement, Notes and Supplement with the holders of the unsecured senior notes issued by Ultra Resources (collectively, the “Senior Notes”) pursuant to the Master Note Purchase Agreemen t dated March 6, 2008 (as supplemented, the “MNPA”) (the “MNPA Waiver” and, together with the Bank Waiver, the “Waiver Agreements”). Under the Waiver Agreements, the lenders and holders, as applicable, party thereto agreed to waive certain specified defaul ts under the Credit Agreement and the MNPA, as applicable, and to forbear from exercising their rights and remedies otherwise available under the Credit Agreement and/or the MNPA, for a forbearance period extending from March 1, 2016 until the earlier of A pril 30, 2016, a default or event of default under the Credit Agreement or the MNPA, as applicable, that was not waived by the Waiver Agreements, or one or more of the termination events specified in the Waiver Agreements. During the forbearance period und er the Waiver Agreements, we have attempted to and are continuing to negotiate a re structuring of our indebtedness; but, as of the date of this Quarterly Report on Form 10-Q, we have not been successful at accomplishing our plan. In order to extend the for bearance period under the MNPA Waiver, we would be required to obtain 100 % approval by the holders of the Senior Notes, whic h we believe is highly unlikely . On April 1, 2016, we elected to defer making an interest payment of approximately $ 26.0 million due April 1, 2016 with respect to our 6.125% Senior Notes due 2024 (the “2024 Notes”). The indenture governing the 2024 Notes provides a 30-day grace period for us to make this interest payment. We do not expect to make this interest payment before the end of the grace period under the indenture governing the 2024 Notes. If we do not make this interest payment before the end of the grace period, this will beco me an event of default under the indenture governing the 2024 Notes and may result in the acceleration of all of our indebtedness, including the 2024 Notes. Due to our current financial constraints, including the likelihood of the occurrence of events of d efault under our debt agreements, there is a substantial risk that it may be necessary for us to seek protection from our creditors under Chapter 11 or the Canadian Bankruptcy and Insolvency Act, or an involuntary petition for bankruptcy may be filed again st us in the U.S. or in Canada. The following events have occurred since February 29, 2016 (when we filed our most recent Annual Report on Form 10-K): On March 1, 2016, we entered into the Bank Waiver with the lenders under the Credit Agreement between Ul tra Resources, as the borrower, and JPMorgan Chase Bank, as the administrative agent, and the lenders thereto, and the MNPA Waiver with 100% of the holders of the Senior Notes issued by Ultra Resources pursuant to the MNPA. The Waiver Agreements were effec tive March 1, 2016 and provide for a forbearance period extending through no later than April 30, 2016. These events were disclosed in our Current Report on Form 8-K filed March 2, 2016. On March 1, 2016, we elected not to make a $ 62.0 million principal payment due under the unsecured senior notes issued by Ultra Resources. Because of the Waiver Agreements, this is not a default under the MNPA during the forbearance period under the Waiver Agreements. On March 1, 2016, we elected not to make a $ 40.0 mill ion interest payment due under the unsecured senior notes issued by Ultra Resources. Because of the Waiver Agreements, this is not a default under the MNPA during the forbearance period under the Waiver Agreements. On March 8, 2016, we received a letter f rom Sempra Rockies Marketing, LLC (“Sempra”) notifying us that Sempra was exercising its alleged right to permanently recall the 50,000 MMBtu/day of capacity on the Rockies Express pipeline and that the recall would be effective as of March 9, 2016. We had previously received a letter, dated February 26, 2016, from Sempra alleging that we were in breach of our Capacity Release Agreement, dated March 5, 2009, due to nonpayment of fees for transportation service and notifying us that Sempra was authorized to recall the capacity released to us under the agreement and to pursue any claims for damages or other remedi es to which Sempra was entitled. On March 11, 16, 21, and 31, 2016, we elected not to make a total of $ 2.7 million of interest payments due under th e Credit Agreement. Because of the Waiver Agreements, this is not a default under the Credit Agreement during the forbearance period under the Waiver Agreements. On March 15, 2016, we delivered, to the lenders under the Credit Agreement, an audit report p repared by our auditors with respect to the financial statements in our most recent Annual Report on Form 10-K, which included an explanatory paragraph expressing uncertainty as to our ability to continue as a “going concern.” The Credit Agreement requires us to deliver annual audited, consolidated financial statements without a “going concern” or like qualification or explanation. The Credit Agreement provides a 30-day grace period related to this requirement. Because of the Waiver Agreements, this is not a default under the Credit Agreement during the forbearance period under the Waiver Agreements. On March 15, 2016, we received a notice from the New York Stock Exchange (“NYSE”) that we were not in compliance with the NYSE’s continued listing standards, a nd, as a result, there is a significant risk our common stock will be delisted from the NYSE. This event was disclosed in our Current Report on Form 8-K filed March 18, 2016. On March 28, 2016, we received a letter from Rockies Express Pipeline notifying us that, according to Rockies Express, our transportation agreement had terminated effective as of March 26, 2016 due to our alleged defaults under the terms of the Rockies Express tariff and our transportation agreement. On April 1, 2016, we notified the lenders under the Credit Agreement of the annual redetermination of the PV-9 value of our proved reserves. The Credit Agreement requires Ultra Resources to maintain a minimum ratio of the discounted net present value of its oil and gas properties to it s total funded consolidated debt of 1.5 times . Based on the PV-9 of its oil and gas properties at December 31, 2015, Ultra Resources failed to comply with the PV-9 ratio covenant (the ratio was 0.9 times at March 31, 201 6). Because of the Waiver Agr eements, this is not a default under the Credit Agreement during the forbearance period under the Waiver Agreements. On April 1, 2016, we elected to defer making an interest payment of approximately $26.0 million due April 1, 2016 with respect to our 202 4 Notes. The indenture governing the 2024 Notes provides a 30-day grace period for us to make this interest payment. If we make this interest payment before the end of the forbearance period under the Waiver Agreements, the waivers and forbearances granted by our lenders in the Waiver Agreements will terminate. This event was disclosed in our Current Report on Form 8-K filed April 1, 2016. On April 4, 2016, we received a demand for payment and notice of enforcement from Rockies Express related to our tran sportation agreement on Rockies Express Pipeline, pursuant to which Rockies Express demanded payment from us of $ 303.2 million by April 20, 2016. On April 14, 2016, Rockies Express filed a lawsuit against us in Harris County, Texas alleging breach of contract and seeking damages related to the alleged breach. W e intend to defend this lawsuit vigorously. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 1. SIGNIFICANT ACCOUNTING POLICIES: The accompanying financial statements, other than the balance sheet data as of December 31, 2015 , are unaudited and were prepared from the Company’s records, but do not include all disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”). Balance sheet data as of December 31, 2015 was derived from the Company’s audited financial statements. The Company’s management believes that these financial statements include all adjustments necessary for a fair presentation of the Company’s financial position and results of operations. All adjustments are of a normal and recurring nature unless specifically noted. The Company prepared these statements on a basis consistent with the Company’s annual au dited statements and Regulation S-X. Regulation S-X allows the Company to omit some of the footnote and policy disclosures required by generally accepted accounting principles and normally included in annual reports on Form 10-K. You should read these inte rim financial statements together with the financial statements, summary of significant accounting policies and notes to the Company’s most recent annual report on Form 10-K. Basis of presentation and principles of consolidation: The consolidated financi al statements include the accounts of the Company and its wholly owned subsidiaries. The Company presents its financial statements in accordance with U.S. GAAP. All inter-company transactions and balances have been eliminated upon consolidation. (a) Cash and Cash Equivalents: The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. (b) Restricted Cash: Restricted cash represents cash received by the Company from production sold where t he final division of ownership of the production is unknown or in dispute. (c) Accounts Receivable: Accounts receivable are stated at the historical carrying amount net of write-offs and an allowance for uncollectible accounts. The carrying amount of the Company’s accounts receivable approximates fair value because of the short-term nature of the instruments. The Company routinely assesses the collectability of all material trade and other receivables. (d) Property, Plant and Equipment: Capital assets a re recorded at cost and depreciated using the declining-balance method based on their respective useful life. ( e ) Oil and N atural G as P roperties: The Company uses the full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (“SEC”) Release No. 33-8995, Modernization of Oil and Gas Reporting Requirements (“SEC Release No. 33-8995”) and Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 932, Extr active Activities – Oil and Gas (“FASB ASC 932”) . Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as oil and gas properties. This includes any internal costs that are directly related to exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. The carrying amount of oil and natural gas properties also includes estimated asset retireme nt costs recorded based on the fair value of the asset retirement obligation when incurred. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationshi p between capitalized costs and proved reserves of oil and natural gas attributable to a country. The sum of net capitalized costs and estimated future development costs of oil and natural gas properties are amortized using the units-of-production method based on the Company’s proved reserves. Oil and natural gas reserves and production are converted into equivalent units based on relative energy content. Asset retirement costs are included in the base costs for calculating depletion. Under the full cos t method, costs of unevaluated properties and major development projects expected to require significant future costs may be excluded from capitalized costs being amortized. The Company excludes significant costs until proved reserves are found or until it is determined that the costs are impaired. The Company reviews its unproved leasehold costs quarterly or when management determines that events or circumstances indicate that the recorded carrying value of the unevaluated properties may not be recoverable . The fair values of unproved properties are evaluated utilizing a discounted net cash flows model based on management’s assumptions of future oil and gas production, commodity prices, operating and development costs; as well as appropriate discount rates. The estimated prices used in the cash flow analysis are determined by management based on forward price curves for the related commodities, adjusted for average historical location and quality differentials. Estimates of cash flows related to probable and possible reserves are reduced by additional risk-weighting factors. The amount of any impairment is transferred to the capitalized costs being amortized. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, uti lizing the average of prices in effect on the first day of the month for the preceding twelve month period in accordance with SEC Release No. 33-8995. The ceiling limits such pooled costs to the aggregate of the present value of future net revenues attribu table to proved crude oil and natural gas reserves discounted at 10%, plus the lower of cost or market value of unproved properties, less any associated tax effects. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depletion, depreciation and amortization (“DD&A”) rate in future periods. A write-down may not be reversed i n future periods even though higher oil and natural gas prices may subsequently increase the ceiling. The Company did not incur a ceiling test write-down for the three months ended March 31, 2016 or 2015 . (f) Deferred Financing Costs: Inclu ded in other current assets at March 31, 2016 are costs associated with the issuance of our revolving credit facility. Costs associated with the issuance of our Senior Notes, 2018 Notes and 2024 Notes are presented in the balance sheet as a direct ded uction from the carrying amount of the related debt liability . The remaining unamortized issuance costs are being amortized over the life of the applicable debt or facility using the straight line method. (g) Derivative Instruments and Hedging Activities: The Company follows FASB ASC Topic 815, Derivatives and Hedging (“FASB ASC 815”). The Company records the fair value of its commodity derivatives as an asset or liability in the Consolidated Balance Sheets, and records the changes in the fair value of its commodity derivatives in the Consolidated Statements of Operations. The Company does not offset the value of its derivative arrangements with the same counterparty. (See Note 6). (h) Income Taxes: Income taxes are accounted for under th e asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The eff ect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria descri bed in FASB ASC Topic 740, Income Taxes. In addition, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. ( i ) Earnings Per Share: Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed by adjusting the average number of common shares outstanding for the dilutive effect, if any, of common stock equivalents. The Company uses the treasury stock method to determine the dilutive effect. Three Months Ended March 31, March 31, 2016 2015 (Share amounts in 000's) Net (loss) income $ (21,831) $ 25,189 Weighted average common shares outstanding - basic 153,322 153,042 Effect of dilutive instruments(1) - 2,661 Weighted average common shares outstanding - diluted 153,322 155,703 Net (loss) income per common share - basic $ (0.14) $ 0.16 Net (loss) income per common share - diluted $ (0.14) $ 0.16 Number of shares not included in dilutive earnings per share that would have been anti-dilutive because the exercise price was greater than the average market price of the common shares (1) - 776 (1) Due to the net loss for the three months ended March 31, 2016, 1.6 million shares for options and restricted stock units were anti-dilutive and excluded from the computation of net loss per share. (j) Use of Estimates: Preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (k) Accounting for Share-Based Compensation: The Company measures and r ecognizes compensation expense for all share-based payment awards made to employees and directors, including employee stock options, based on estimated fair values in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. (l) Fair Value Ac counting: The Company follows FASB ASC Topic 820, Fair Value Measurements and Disclosures (“FASB ASC 820”), which defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. This statement applies under other accounting topics that require or permit fair value measurements. See Note 7 for additional information. (m) Asset Retirement Obligation: The initial estimated retirement obligation of properties is recognized as a liabi lity with an associated increase in oil and gas properties for the asset retirement cost. Accretion expense is recognized over the estimated productive life of the related assets. If the fair value of the estimated asset retirement obligation changes, an a djustment is recorded to both the asset retirement obligation and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, changes in service and equipment costs and changes in the estimated timi ng of settling asset retirement obligations. As a full cost company, settlements for asset retirement obligations for abandonment are adjusted to the full cost pool. The asset retirement obligation is included within other long-term obligations in the acc ompanying Consolidated Balance Sheets. (n) Revenue Recognition: The Company generally sells oil and natural gas under both long-term and short-term agreements at prevailing market prices. The Company recognizes revenues when the oil and natural gas is delivered, which occurs when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. The Company accounts for oil and natural gas sales using the “entitleme nts method.” Under the entitlements method, revenue is recorded based upon the Company’s ownership share of volumes sold, regardless of whether it has taken its ownership share of such volumes. Any amount received in excess of the Company’s share is treate d as a liability. If the Company receives less than its entitled share, the underproduction is recorded as a receivable. Make-up provisions and ultimate settlements of volume imbalances are generally governed by agreements between the Company and its part ners with respect to specific properties or, in the absence of such agreements, through negotiation. The value of volumes over- or under-produced can change based on changes in commodity prices. The Company prefers the entitlements method of accounting for oil and natural gas sales because it allows for recognition of revenue based on its actual share of jointly owned production, results in better matching of revenue with related operating expenses, and provides balance sheet recognition of the estimated va lue of product imbalances. The Company’s imbalance obligations as of March 31, 2016 and December 31, 2015 were immaterial. (o) Capitalized Interest: Interest is capitalized on the cost of unevaluated gas and oil properties that are excluded from amortization and actively being evaluated, if any. (p) Reclassifications: Certain amounts in the financial statements of prior periods have been reclassified to conform to the current period financial statement presentation. (q) Capital Cost Accrual: Th e Company accrues for exploration and development costs in the period incurred, while payment may occur in a subsequent period. (r) Recent Accounting Pronouncements: In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, Compensation- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU No. 2016-09”) to simplify some of the provisions in stock compensation accounting. The update simplifies the accounting for a stock payment’s tax consequences an d amends how excess tax benefits and a business’s payments to cover the tax bills for the shares’ recipients should be classified. The amendments allow companies to estimate the number of stock awards expected to vest and revises the withholding requiremen ts for classifying stock awards as equity. For public companies, the standard will take effect for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 with earlier application permitted. The Company is still evalu ating the impact of ASU No. 2016-09 on its financial position and results of operations . In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ASU No. 2016-02”). The guidance requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The ASU also will require disclosures designed to give financial statement users information on the amount, timing , and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. For public companies, the standard will take effect for fiscal years, and interim periods within those fiscal years, beginning after De cember 15, 2018 with earlier application permitted. The Company is still evaluating the impact of ASU No. 2016-02 on its financial position and results of operations . In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet C lassification of Deferred Taxes (“ASU No. 2015-17”). The guidance eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent amounts in a classified balance sheet. The new standard requires deferred tax assets and liabilities to be classified as noncurrent. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitt ed for all entities as of the beginning of an interim or annual reporting period and may be applied either prospectively or retrospectively to all periods presented. The Company has elected early adoption of ASU No. 2015-17 and has applied these changes p rospectively as of December 31, 2015. The adoption of this guidance has no impact on our results of operations or cash flows. The reclassification of amounts from current to noncurrent affects presentation of our financial position. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU No. 2015-11”). Public companies will have to apply the amendments for reporting periods that start after December 15, 2016, including interim periods within those fiscal years. This ASU requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The company does not expect the adoption of ASU No. 2015-11 to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (S ubtopic 835-30)—Simplifying the Presentation of Debt Issuance Costs. In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30)—Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Cred it Arrangements . These ASUs require capitalized debt issuance costs, except for those related to revolving credit facilities, to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, rather than as an asset. The Company adopted these ASUs on January 1, 2016, using a retrospective approach. The adoption resulted in a reclassification that reduced current assets and current maturities of long-term debt by $ 19.2 million and $ 19.4 million on the Company’ s Consolidated Balance Sheet at March 31, 2016 and December 31, 2015, respectively. In June 2015, the FASB issued a delay by one year of the revenue recognition standard adopted in June 2014. In June 2014, the FASB issued ASU No. 2014-09, Revenue fro m Contracts with Customers (Topic 606) (“ASU No. 2014-09”), which amends the FASB ASC by adding new FASB ASC Topic 606, Revenue from Contracts with Customers , and superseding the revenue recognition requirements in FASB ASC 605, Revenue Recognition , and in most industry-specific topics. ASU No. 2014-09 provides new guidance concerning recognition and measurement of revenue and requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with cust omers. The new proposal related to ASU No. 2014-09 delays the application of the standard to reporting periods beginning after December 15, 2017 instead of December 15, 2016. The Company is still evaluating the impact of ASU No. 2014-09 on its financial p osition and results of operations . In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”) that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. ASU No. 2014-15 becomes effective for annual periods beginning after December 15, 2016 and for interim reporting periods thereafter. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
Oil and Gas Properties and Equi
Oil and Gas Properties and Equipment | 3 Months Ended |
Mar. 31, 2016 | |
Oil And Gas Properties And Equipment [Abstract] | |
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | 2. OIL AND GAS PROPERTIES AND EQUIPMENT: March 31, December 31, 2016 2015 Proven Properties: Acquisition, equipment, exploration, drilling and abandonment costs $ 10,558,034 $ 10,480,165 Less: Accumulated depletion, depreciation and amortization(2) (9,656,950) (9,629,020) 901,084 851,145 Unproven Properties: Acquisition and exploration costs not being amortized (1) - - Net capitalized costs - oil and gas properties $ 901,084 $ 851,145 (1) Interest is capitalized on the cost of unevaluated oil and natural gas properties that are excluded from amortization and actively being evaluated, if any. At December 31, 2015, all costs related to unevaluated properties that were previously excluded from capitalized costs not being amortized have been impaired or not considered significant and transferred to the capitalized costs being amortized in the full cost pool. For the three months ended March 31, 2016 , there was no interest capitaliz ed on the cost of unevaluated oil and natural gas properties. For the year ended December 31, 2015 , total interest on outstanding debt was $185.0 million, of which, $20.4 million was capitalized on the cost of unproven oil and natural gas properties . (2) The Company recorded a $3.1 billion non-cash write-down of the carrying value of its proved oil and gas properties as a result of ceiling test limitations during the quarter ended December 31, 2015 . |
Long Term Liabilities
Long Term Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Long Term Liabilities [Abstract] | |
Long-term Debt [Text Block] | 3. DEBT AND OTHER LONG-TERM OBLIGATIONS: March 31, December 31, 2016 2015 Current portion of long-term debt: 6.125% Senior Notes due 2024 $ 850,000 $ 850,000 5.75% Senior Notes due 2018 450,000 450,000 Senior Notes issued by Ultra Resources, Inc. 1,460,000 1,460,000 Less: Deferred financing costs (19,213) (19,447) 2,740,787 2,740,553 Credit Agreement 999,000 630,000 Total current portion of long-term debt 3,739,787 3,370,553 Other long-term obligations: Other long-term obligations 177,564 165,784 Total Debt and Other Long-term Obligations $ 3,917,351 $ 3,536,337 We have significant indebtedness, all of which we have reclassified as short-term as of December 31, 2015. Our level of indebtedness has adversely impacted and is continuing to adversely impact our financial condition. As a result of our financial condition and the likelihood that we will be in default under our debt agreements in the near future, substantial doubt exists that we will be able to continue as a going concern. Our ability to continue as a going concern is dependent on many factors, inc luding our ability to comply with the obligations in our existing debt agreements, to obtain waivers or other relief if we are unable to comply, and/or to be able to repay or replace our indebtedness as it matures. We can offer no assurance that we will be able to obtain waivers or other relief, and it is unlikely we will be able to comply with all of the obligations and covenants in our debt agreements. In addition, we have substantial unpaid principal maturities and interest payments that are past due, an d we have substantial additional principal maturities and interest payments coming due in the near future. We do not have sufficient liquidity to pay our unpaid and near-term principal maturities and interest payments without raising additional capital. We do not have sufficient liquidity to pay our indebtedness if it is accelerated and becomes immediately due and payable without raising additional capital. Additional capital may be available only on extremely onerous terms if it is available at all. T here is a substantial risk that it may be necessary for us to seek protection from our creditors under Chapter 11 or the Canadian Bankruptcy and Insolvency Act, or an involuntary petition for bankruptcy may be filed against us in the U.S. or in Canada. On Marc h 1, 2016, we entered into the Waiver Agreements. Under the Waiver Agreements, the lenders party thereto agreed to waive certain specified defaults under the Credit Agreement and the MNPA, and to forbear from exercising their rights and remedies otherwise available under the Credit Agreement and/or the MNPA, for a forbearance period extending from March 1, 2016 until the earlier of April 30, 2016, a default or event of default under the Credit Agreement that was not waived by the Waiver Agreements, or one o r more of the termination events specified in the Waiver Agreements. During the forbearance period under the Waiver Agreements, we have attempted to and are continuing to negotiate a restructuring of our indebtedness, but, as of the date of this Quarterly Report on Form 10-Q, we have not been successful at accomplishing our plan. In order to extend the forbearance period under the MNPA Waiver, we would be required to obtain 100% approval by the holders of the Senior Notes, which we believe is highly unlik ely . On April 1, 2016, we elected to defer making an interest payment of approximately $26.0 million due April 1, 2016 with respect to our 2024 Notes. The indenture governing the 2024 Notes provides a 30-day grace period for us to make this interest payme nt. We do not expect to make this interest payment before the end of the grace period under the indenture governing the 2024 Notes. If we do not make this interest payment before the end of the grace period, this will become an event of default under the i ndenture governing the 2024 Notes and may result in the acceleration of all of our indebtedness, including the 2024 Notes. Due to our current financial constraints, including the likelihood of the occurrence of events of default under our debt agreements, there is a substantial risk that it may be necessary for us to seek protection from our creditors under Chapter 11 or the Canadian Bankruptcy and Insolvency Act, or an involuntary petition for bankruptcy may be filed against us in the U.S. or in Canada . Ultra Resources, Inc. Bank indebtedness. The Company (through its subsidiary, Ultra Resources) is a party to the Credit Agreement with a syndicate of banks led by JP Morgan Chase Bank, N.A. Ultra Resources’ obligations under the Credit Agreement are guar anteed by the Company and UP Energy Corporation, a wholly-owned subsidiary of the Company. The Credit Agreement provides a loan commitment of $1.0 billion. At March 31, 2016 , the Company had $999.0 million in outstanding borrowings, repr esenting substantially all of the remaining undrawn amount under the Credit Agreement . Except as otherwise provided in the Waiver Agreements, l oans under the Credit Agreement are unsecured and bear interest, at the Borrower’s option, based on (A) a rate p er annum equal to the prime rate or the weighted average fed funds rate on overnight transactions during the preceding business day plus 150 basis points per annum as of March 31, 2016 , or (B) a base Eurodollar rate, substantially equal to the LIBOR rate, plus a margin based on a grid of the Borrower’s consolidated leverage ratio ( 250 basis points per annum as of March 31, 2016 ). Under the Bank Waiver, our outstanding indebtedness incurred pursuant to the Credit Agreement wi ll accrue interest at the contract rate otherwise applicable to such debt, except that unpaid interest that comes due and payable during the forbearance period under the Waiver Agreements accrues interest at the rate applicable thereto plus two percent per annum. We are required to pay commitment fees on the unused commitment amount under the Credit Agreement based on Ultra Resources’ consolidated leverage ratio . The Credit Agreement contains typical and customary representations, warranties, covenants and events of default. The Credit Agreement requires us to deliver annual audited, consolidated financial statements for the Company without a “going concern” or like qualification or explanation. On March 15, 2016, we delivered an audit report with respect to the financial statements in our most recent Annual Report on Form 10-K that included an explanatory paragraph expressing uncertainty as to our ability to continue as a “going concern.” The Credit Agreement provides a 30-day grace period related to this requirement. In addition, this is not a default under the Credit Agreement during the forbearance period under the Waiver Agreements. Because we cannot comply with this requirement under the Credit Agreement, once the forbearance period under the W aiver Agreements ends, unless the lenders under the Credit Agreement grant a further waiver or other relief related to this requirement, our failure to deliver the required financial statements will become an Event of Default under the Credit Agreement. T he Credit Agreement contains a consolidated leverage covenant, pursuant to which Ultra Resources is required to maintain a maximum ratio of its total funded consolidated debt to its trailing four fiscal quarters’ EBITDAX of 3.5 to 1.0 . Based on Ultra Resou rces’ EBITDAX for the trailing four fiscal quarters ended March 31, 2016 , we were not in compliance with this consolidated leverage covenant at March 31, 2016 (the ratio was 4.6 times at March 31, 2016 ). This is not a default unde r the Credit Agreement during the forbearance period under the Waiver Agreements. However, because we cannot comply with this requirement under the Credit Agreement, once the forbearance period under the Waiver Agreements ends, unless the lenders under the Credit Agreement grant a further waiver or other relief related to this requirement, our failure to comply with the consolidated leverage covenant will become an Event of Default under the Credit Agreement . The Credit Agreement contains a PV-9 covenant, pursuant to which Ultra Resources is required to maintain a minimum ratio of the discounted net present value of its oil and gas properties to its total funded consolidated debt of 1.5 times. We were required to report whether we were in compliance with this covenant on April 1, 2016. Based on the PV-9 of Ultra Resources’ oil and gas properties at December 31, 2015, Ultra Resources failed to comply with the PV-9 ratio covenant under the Credit Agreement (the ratio was 0.9 ti mes at March 31, 2016). This is not a default under the Credit Agreement during the forbearance period under the Waiver Agreements. However, because we cannot comply with this requirement under the Credit Agreement, once the forbearance period under the Wa iver Agreements ends, unless the lenders under the Credit Agreement grant a further waiver or other relief related to this requirement, our failure to comply with the PV-9 covenant will become an Event of Default under the Credit Agreement. Senior Notes. Ultra Resources has outstanding $1.46 billion of Senior Notes. Ultra Resources’ Senior Notes rank pari passu with the Company’s Credit Agreement. Payment of the Senior Notes is guaranteed by Ultra Petroleum Corp. and UP Energy Corporation. The Se nior Notes are pre-payable in whole or in part at any time following the payment of a make-whole premium and are subject to representations, warranties, covenants and events of default similar to those in the Credit Agreement. The MNPA contains a consol idated leverage covenant, pursuant to which Ultra Resources is required to maintain a maximum ratio of its total funded consolidated debt to its trailing four fiscal quarters’ EBITDAX of 3.5 to 1.0 . Based on Ultra Resources’ EBITDAX for the trailing four f iscal quarters ended March 31, 2016 , we were not in compliance with this consolidated leverage covenant at March 31, 2016 (the ratio was 4.6 times at March 31, 2016 ). This is not a default under the MNPA during the forbearance per iod under the Waiver Agreements. However, because we cannot comply with this requirement under the MNPA, once the forbearance period under the Waiver Agreements ends, unless the noteholders of the Senior Notes grant a further waiver or other relief related to this requirement, our failure to comply with the consolidated leverage covenant will become an Event of Default under the MNPA. The MNPA Waiver provides that during the forbearance period under the Waiver Agreements, the outstanding indebtedness under the Senior Notes will accrue interest at the contract rate otherwise applicable to such debt, except that the $40.0 million of unpaid interest which was due March 1, 2016 and the $62.0 million of unpaid principal which was due March 1, 2016 will accrue in terest at the rate applicable thereto plus two percent per annum. Ultra Petroleum Corp. Senior Notes Senior Notes due 2024 : On September 18, 2014, the Company issued $850.0 million of 2024 Notes. The 2024 Notes are general, unsecured senior obligations of the Company and mature on October 1, 2024. The 2024 Notes rank equally in right of payment to all existing and future senior indebtedness of the Company and effectively rank junior to all future secured indebtedness of the Company (to the extent of the value of the collateral securing such indebtedness). The 2024 Notes are not guaranteed by the Company’s subsidiaries and, as a result, are structurally subordinated to the indebtedness and other obligations of the Company’s subsidiaries. On and after Oct ober 1, 2019, the Company may redeem all or, from time to time, a part of the 2024 Notes at the following prices expressed as a percentage of principal amount of the 2024 Notes: 2019 – 103.063%; 2020 – 102.042%; 2021 – 101.021%; and 2022 and thereafter – 1 00.000%. The 2024 Notes are subject to covenants that restrict the Company’s ability to incur indebtedness, make distributions and other restricted payments, grant liens, use the proceeds of asset sales, make investments and engage in affiliate transacti ons. In addition, the 2024 Notes contain events of default customary for a senior note financing. At March 31, 2016 , the Company was in compliance with all of its debt covenants under the 2024 Notes. Interest due under the 2024 Notes is payable each April 1 and October 1. On April 1, 2016, we elected to defer making an interest payment on the 2024 Notes of approximately $26.0 million due April 1, 2016. The indenture governing the 2024 Notes provides a 30-day grace period for us to make this inte rest payment. If we make this interest payment before the end of the forbearance period under the Waiver Agreements, the waivers and forbearances granted by our lenders in the Waiver Agreements will terminate. We do not expect to make this interest payment before the end of the grace period under the indenture governing the 2024 Notes. If we do not make this interest payment before the end of the grace period, this will become an event of default under the indenture governing the 2024 Notes and may result i n the acceleration of all of our indebtedness, including the 2024 Notes. However, as noted above with respect to the Credit Agreement and the Ultra Resources Senior Notes, once the forbearance period under the Waiver Agreements ends, unless the Ultra Resou rces lenders grant a further waiver or other relief, violations of covenants or events of nonpayment under the Credit Agreement and/or the Senior Notes will become Events of Default under the Credit Agreement and/or the MNPA and could also become Events of Default under the 2024 Notes, potentially resulting in the acceleration of all of our indebtedness, including the 2024 Notes. Senior Notes due 2018 : On December 12, 2013, the Company issued $450.0 million of 5.75% Senior Notes due 2018 (“2018 Notes”). The 2018 Notes are general, unsecured senior obligations of the Company and mature on December 15, 2018. The 2018 Notes rank equally in right of payment to all existing and future senior indebtedness of the Company and effectively rank junior to all futur e secured indebtedness of the Company (to the extent of the value of the collateral securing such indebtedness). The 2018 Notes are not guaranteed by the Company’s subsidiaries and, as a result, are structurally subordinated to the indebtedness and other obligations of the Company’s subsidiaries. As of December 15, 2015, the Company may redeem all or, from time to time, a part of the 2018 Notes at the following prices expressed as a percentage of principal amount of the 2018 Notes: 2015 – 102.875%; 2016 – 101.438%; and 2017 and thereafter – 100.000% . The 2018 Notes are subject to covenants that restrict the Company’s ability to incur indebtedness, make distributions and other restricted payments, grant liens, use the proceeds of asset sales, make investme nts and engage in affiliate transactions. In addition, the 2018 Notes contain events of default customary for a senior note financing. Interest due under the 2018 Notes is payable each June 15 and December 15. At March 31, 2016 , the Company was in c ompliance with all of its debt covenants under the 2018 Notes. However, as noted above with respect to the Credit Agreement and the Ultra Resources Senior Notes, once the forbearance period under the Waiver Agreements ends, unless the Ultra Resources lende rs grant a further waiver or other relief, violations of covenants or events of nonpayment under the Credit Agreement and/or the Senior Notes will become Events of Default under the Credit Agreement and/or the MNPA and could also become Events of Default u nder the 2018 Notes, potentially resulting in the acceleration of all of our indebtedness, including the 2018 Notes. Other long-term obligations: These costs primarily relate to the long-term portion of production taxes payable and asset retirement oblig ations. |
Share Based Compensation
Share Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Stock Based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 4. SHARE BASED COMPENSATION: Valuation and Expense Information Three Months Ended March 31, 2016 2015 Total cost of share-based payment plans $ 2,728 $ 2,970 Amounts capitalized in oil and gas properties and equipment $ 931 $ 977 Amounts charged against income, before income tax benefit (provision) $ 1,797 $ 1,993 Amount of related income tax (expense) benefit recognized in income before valuation allowance $ 715 $ 833 Changes in Stock Options and Stock Options Outstanding The following table summarizes the changes in stock options for the three months ended March 31, 2016 and the year ended December 31, 2015 : Weighted Number of Average Options Exercise Price (000's) (US Dollars) Balance, December 31, 2014 690 $ 25.68 to $ 98.87 Expired or forfeited (171) $ 25.68 to $ 75.18 Balance, December 31, 2015 519 $ 49.05 to $ 98.87 Expired or forfeited (43) $ 57.65 to $ 63.05 Balance, March 31, 2016 476 $ 49.05 to $ 98.87 Performance Share Plans : Long Term Incentive Plans. The Company offers a Long Term Incentive Plan (“LTIP”) in order to further align the interests of key employees with shareholders and to give key employees the opportunity to share in the long-term performance of the Company when specific corporate financial and operational goals are achieved. Each LTIP covers a performance period of three years. Under each LTIP, the Compensation Committee establishes a percentage of base salary for each participant that is multiplied by the participant’s base salary at the beginning of th e performance period and individual performance level to derive a Long Term Incentive Value as a “target” value. This “target” value corresponds to the number of shares of the Company’s common stock the participant is eligible to receive if the participant is employed by the Company through the date the award vests and if the target level for all performance measures are met. In addition, each participant is assigned threshold and maximum award levels in the event the Company’s actual performance is below o r above the target levels. Time-Based Measure and Performance-Based Measures : For each LTIP award, the Committee establishes time-based and performance-based measures at the beginning of each three-year performance period. For the LTIP awards in 2015 and 2014 , the Committee established the following performance -based measures: return on capital employed, debt level, and reserve replacement ratio. The fair value of the time-based and performance-based component of the LTIP award is based on the average high and low market price of the Company’s common stock on the date of award. Market-Based Measure : LTIP awards granted to officers during 2015 and 2014 , include a n additional performance metric, Total Shareholder Return. T he grant-date fair value related to the market-based condition was calculated using a Monte Carlo simulation . Valuation Assumptions The Company estimates the fair value of the market condition related to the LTIP awards on the date of grant using a Monte Carlo simulation with the following assumptions: 2015 LTIP 2014 LTIP Volatility of common stock 39.0% 39.2% Risk-free interest rate 0.66% 0.40% Stock-Based Compensation Cost : For the three months ended March 31, 2016 , the Company recognized $1.4 million in pre-tax compensation expense related to the 2014 and 2015 LTIP awards of restricted stock units as compared to $1.8 million during the three months ended March 31, 2015 related to the 2013 , 2014 and 2015 LTIP awards of restricted stock units. The amounts recognized during the three months ended March 31, 2016 assume that performance objectives between less than threshold and up to maximum are attained for the 2014 and 2015 LTIP plans. If the Company ultimately attains th ese performance objectives, the associated total compensation, estimated at March 31, 2016 , for each of the three year performance periods is expected to be approximately $9.8 million and $10.8 million related to the 2014 and 2015 LTIP awards of restricted stock units, respectively. Based on the Company’s achievement relative to the 2013 LTIP’s performance-based measures, and based on the continued employment with the Company by those participants who received a payment in connection with the 2013 LTIP relative to the 2013 LTIP’s time-based measures, during the first quarter of 2016 the Compensation Committee approved payment of the 2013 LTIP. This was the first payment of an LTIP sinc e our LTIPs were modified in 2013 to include time-based and performance-based measures. As such, the Compensation Committee elected to pay the time-based portion of the LTIP awards in cash at the award value and the performance-based portion of the LTIP aw ards in shares of our common stock. The 2013 LTIP award of restricted stock units was paid in shares of the Company’s stock to employees during the first quarter of 2016 and totaled $3.8 million ( 132,843 net shares ). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income Tax Disclosure [Text Block] | 5. INCOME TAXES: The Company’s overall effective tax rate on pre-tax income was different than the statutory rate of 35% due primarily to valuation allowances, the ability to carryback current period losses, state income taxes and other permanent differences. The Company has recorded a valuation allowance against certain deferred tax assets as of March 31, 2016 . Some or all of this valuation allowance may be reversed in future periods against future income . As further described in Note 1 (r) , the Company adopted ASU 2015-17 on a prospective basis in 2015. As a result, the deferred tax assets and liabilities are classified as long-term in the Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 6. DERIVATIVE FINANCIAL INSTRUMENTS: Objectives and Strategy: The Company’s major market risk exposure is in the pricing applicable to its natural gas and oil production. Realized pricing is currently driven primarily by the prevailing price for the Company’s natural gas production. Historically, prices received for natural gas production have been volatile and unpredictable. Pricing volatility is expected to continue. As a result of its hedging activities, the Company may realize prices that are less than or greater than the spot prices that it would have received otherwise. The Company relies on various types of derivative instruments to manage its exposure to commodity price risk and to provide a level of certainty in the Company’s forward cas h flows supporting the Company’s capital investment program. The Company’s hedging policy limits the amounts of resources hedged to not more than 50% of its forecast production without Board approval. Fair Value of Commodity Derivatives: FASB ASC 815 re quires that all derivatives be recognized on the Consolidated Balance Sheets as either an asset or liability and be measured at fair value. Changes in the derivative’s fair value are recognized currently in earnings unless specific hedge accounting criteri a are met. The Company does not apply hedge accounting to any of its derivative instruments. Derivative contracts that do not qualify for hedge accounting treatment are recorded as derivative assets and liabilities at fair value on the Consolidated Balan ce Sheets and the associated unrealized gains and losses are recorded as current income or expense in the Consolidated Statements of Operations. Unrealized gains or losses on commodity derivatives represent the non-cash change in the fair value of these de rivative instruments and do not impact operating cash flows on the cash flow statement. Commodity Derivative Contracts: At March 31, 2016 , the Company had no open commodity derivative contracts to manage price risk on a portion of its production. The following table summarizes the pre-tax realized and unrealized gain (loss) the Company recognized related to its derivative instruments in the Consolidated Statements of Operations for the periods ended March 31, 2016 and 2015 : For the Three Months Ended March 31, Commodity Derivatives : 2016 2015 Realized gain on commodity derivatives-natural gas (1) $ - $ 29,359 Unrealized gain on commodity derivatives (1) - 7,506 Total gain on commodity derivatives $ - $ 36,865 (1) Included in gain on commodity derivatives in the Consolidated Statements of Operations. The realized gain or loss on commodity derivatives relates to actual amounts received or paid or to be received or paid under the Company’s derivative contracts and t he unrealized gain or loss on commodity derivatives represents the change in the fair value of these derivative instruments over the remaining term of the contract. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosure [Abstract] | |
Fair Value Disclosures [Text Block] | 7. FAIR VALUE MEASUREMENTS: As required by FASB ASC 820, the Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three level hierarchy for measuring fair value. Fair value meas urements are classified and disclosed in one of the following categories: Level 1 : Quoted prices (unadjusted) in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Level 2 : Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilit ies in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 include non-exchange traded d erivatives such as over-the-counter forwards and swaps. Level 3 : Unobservable inputs for the asset or liability, including situations where there is little, if a ny, market activity for the asset or liability . Fair Value of Financial Instruments The estimated fair value of financial instruments is the estimated amount at which the instrument could be exchanged currently between willing parties. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivale nts, restricted cash, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The Company uses available market data and valuation methodologies to estimate the fair value of its debt. The valuation assumptions utilized to measure the fair value of the Company’s debt are considered Level 2 inputs. This disclosure is pres ented in accordance with FASB ASC Topic 825, Financial Instruments, and does not impact the Company’s fi nancial position, results of operations or cash flows. March 31, 2016 December 31, 2015 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value 7.31% Notes due March 2016, issued 2009 62,000 64,266 62,000 63,604 4.98% Notes due January 2017, issued 2010 116,000 117,636 116,000 113,420 5.92% Notes due March 2018, issued 2008 200,000 203,624 200,000 191,985 5.75% Notes due December 2018, issued 2013 450,000 39,528 450,000 111,451 7.77% Notes due March 2019, issued 2009 173,000 180,161 173,000 174,488 5.50% Notes due January 2020, issued 2010 207,000 204,305 207,000 185,052 4.51% Notes due October 2020, issued 2010 315,000 278,175 315,000 258,520 5.60% Notes due January 2022, issued 2010 87,000 83,519 87,000 73,034 4.66% Notes due October 2022, issued 2010 35,000 28,070 35,000 25,558 6.125% Notes due October 2024, issued 2014 850,000 94,091 850,000 206,321 5.85% Notes due January 2025, issued 2010 90,000 83,863 90,000 70,756 4.91% Notes due October 2025, issued 2010 175,000 134,604 175,000 115,911 Credit Facility due October 2016 999,000 999,000 630,000 630,000 $ 3,759,000 $ 2,510,842 $ 3,390,000 $ 2,220,100 |
Legal Proceedings
Legal Proceedings | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Legal Proceedings [Abstract] | |
Legal Proceedings [Text Block] | 8. COMMITMENTS AND CONTINGENCIES: Rockies Express Pipeline On February 26, 2016, we received a letter from Sempra Rockies Marketing, LLC (“Sempra”) alleging that we were in breach of our Capacity Release Agreement, dated March 5, 2009 (the “Capacity Agreement”), resulting from nonpayment of fees for transportation service and notifying us that Sempra was authorized to recall the capacity released to us under the Capacity Agreement and to pursue any claims for damages or other remedies to which Sempra was entitled. On March 8, 2016, we received a letter from Sempra notifying us that Sempra was exercising its alleged right to permanently recall the 50,000 MMBtu/day of capacity on the Rockies Express Pipeline pursuant to the Capacity Agreement and that t he recall would be effective as of March 9, 2016. The Company is not able to determine the likelihood of any potential outcome related to the alleged breach or, if and when resolved, whether such amounts, if any, would be material . On April 4, 2016, we received a demand for payment and notice of enforcement from Rockies Express Pipeline LLC (“Rockies Express”) in connection with the transportation agreement related to the Rockies Express Pipeline, pursuant to which Rockies Express demanded payment from us of $303.2 million by April 2 0, 2016 . On April 14, 2016, Rockies Express filed a lawsuit against us in Harris County, Texas alleging breach of contract and seeking damages related to the alleged breach. We intend to defend this lawsuit vigorously. Our estimate of the potential exposu re ranges from approximately $ 19.0 million , which represents accrued, unpaid invoices during the first quarter prior to contract termination, to $ 303.2 million related to this matter, which excludes potential interest, court costs and attorney fees . Royal ties On April 19, 2016, the Company received a preliminary determination notice from the Office of Natural Resources Revenue (“ONRR”) asserting that the Company’s allocation of certain processing costs and plant fuel use at certain processing plants were impermissibly charged as deductions in the determination of royalties owed under Federal oil and gas leases. The Company intends to submit a response to the preliminary determination asserting the reasonableness of its allocation methodology of such costs . This ONRR unbundling review could ultimately result in an order for payment of additional royalties under the Company’s Federal oil and gas leases for current and prior periods. The Company is not able to determine the likelihood or range of any additi onal royalties or, if and when assessed, whether such amounts would be material. Other Claims The Company is currently involved in various routine disputes and allegations incidental to its business operations. While it is not possible to determine the u ltimate disposition of these matters, the Company believes that the resolution of all such pending or threatened litigation is not likely to have a material adverse effect on the Company’s financial position or results of operations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Schedule of Subsequent Events [Text Block] | 9. SUBSEQUENT EVENTS: The Company has evaluated the period subsequent to March 31, 2016 for events that did not exist at the balance sheet date but arose after that date and determined that no subsequent events arose that should be disclosed in order to keep the financial statements from being misleading, except as set forth below: On April 1, 2016, we elected to defer making an interest payment of approximately $26.0 million due April 1, 2016 with respect to the 2024 Notes. The indenture gover ning the 2024 Notes provides a 30-day grace period for us to make this interest payment. If we make this interest payment before the end of the forbearance period under the Waiver Agreements, the waivers and forbearances granted by our lenders in the Waive r Agreements will terminate. On April 4, 2016, we received a demand for payment and notice of enforcement from Rockies Express related to our transportation agreement on Rockies Express Pipeline, pursuant to which Rockies Express demanded payment from us o f $303.2 million by April 20, 2016. On April 14, 2016, Rockies Express filed a lawsuit against us in Harris County, Texas alleging breach of contract and seeking damages related to the alleged breach. On April 19, 2016, the Company received a preliminary determination notice from ONRR asserting that the Company’s allocation of certain processing costs and plant fuel use at a specific processing plant were impermissibly allowed as deductions in the determination of royalties owed under Federal oil and gas l eases. The Company intends to submit a response to the preliminary determination asserting the reasonableness of its allocation methodology of such costs. This ONRR unbundling review could ultimately result in an order for payment of additional royalties under the Company’s Federal oil and gas leases for current and prior periods . On April 26, 2016, the Board of Directors of the Company elected Patrick Ash to be its Vice President, Development, and determined to include Mr. Ash in the Company’s Key Employee Incentive Program beginning in the second quarter of 2016. Mr. Ash participated in the Company’s Key Employee Retention Program during the first quarter of 2016 . |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Financial Statement Information [Abstract] | |
Condensed Financial Information Of Parent Company Only Disclosure [Text Block] | 10. SUPPLEMENTAL FINANCIAL STATEMENT INFORMATION: The following are the financial statements of Ultra Petroleum Corp. (the “Parent Company”), which are included to provide additional information with respect to the Parent Company’s results of operations, financial position and cash flows on a stand-alone basis: CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended March 31, 2016 2015 General and administrative expense $ 60 $ 99 Other income (expense): Interest expense (20,267) (20,267) Loss (income) from unconsolidated affiliates (7,993) 37,720 Guarantee fee income 6,073 5,703 Other income 226 81 (Loss) income before income tax benefit (22,021) 23,138 Income tax benefit (190) (2,051) Net (loss) income $ (21,831) $ 25,189 CONDENSED BALANCE SHEET March 31, December 31, 2016 2015 ASSETS Current Assets: Cash and cash equivalents $ 430 $ 523 Accounts receivable 94,930 64,542 Other current assets 5,370 5,150 Total current assets 100,730 70,215 Other non-current assets 24,103 24,197 Total assets $ 124,833 $ 94,412 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current portion of long-term debt $ 1,284,015 $ 1,283,232 Interest payable 33,650 14,166 Total current liabilities 1,317,665 1,297,398 Advances to unconsolidated affiliates 1,818,518 1,788,951 Total shareholders' deficit (3,011,350) (2,991,937) Total liabilities and shareholders' equity $ 124,833 $ 94,412 CONDENSED STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2016 2015 Net cash (used in) operating activities $ (24,088) $ (750) Investing Activities: Dividends received 24,089 24,073 Net cash provided by investing activities 24,089 24,073 Financing Activities: Shares re-issued from treasury - 4,557 Deferred financing costs - 6 Net share settlements (94) - Net cash (used in) provided by financing activities (94) 4,563 (Decrease) increase in cash during the period (93) 27,886 Cash and cash equivalents, beginning of period 523 772 Cash and cash equivalents, end of period $ 430 $ 28,658 |
Significant Accounting Polici17
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Statement Significant Accounting Policies [Abstract] | |
Cash and Cash Equivalents [Policy Text Block] | (a) Cash and Cash Equivalents: The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Restricted Cash [Policy Text Block] | (b) Restricted Cash: Restricted cash represents cash received by the Company from production sold where t he final division of ownership of the production is unknown or in dispute. |
Accounts Receivable [Policy Text Block] | (c) Accounts Receivable: Accounts receivable are stated at the historical carrying amount net of write-offs and an allowance for uncollectible accounts. The carrying amount of the Company’s accounts receivable approximates fair value because of the short-term nature of the instruments. The Company routinely assesses the collectability of all material trade and other receivables. |
Property, Plant and Equipment [Policy Text Block] | (d) Property, Plant and Equipment: Capital assets a re recorded at cost and depreciated using the declining-balance method based on their respective useful life. |
Oil And Natural Gas Properties [Policy Text Block] | ( e ) Oil and N atural G as P roperties: The Company uses the full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (“SEC”) Release No. 33-8995, Modernization of Oil and Gas Reporting Requirements (“SEC Release No. 33-8995”) and Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 932, Extr active Activities – Oil and Gas (“FASB ASC 932”) . Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as oil and gas properties. This includes any internal costs that are directly related to exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. The carrying amount of oil and natural gas properties also includes estimated asset retireme nt costs recorded based on the fair value of the asset retirement obligation when incurred. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationshi p between capitalized costs and proved reserves of oil and natural gas attributable to a country. The sum of net capitalized costs and estimated future development costs of oil and natural gas properties are amortized using the units-of-production method based on the Company’s proved reserves. Oil and natural gas reserves and production are converted into equivalent units based on relative energy content. Asset retirement costs are included in the base costs for calculating depletion. Under the full cos t method, costs of unevaluated properties and major development projects expected to require significant future costs may be excluded from capitalized costs being amortized. The Company excludes significant costs until proved reserves are found or until it is determined that the costs are impaired. The Company reviews its unproved leasehold costs quarterly or when management determines that events or circumstances indicate that the recorded carrying value of the unevaluated properties may not be recoverable . The fair values of unproved properties are evaluated utilizing a discounted net cash flows model based on management’s assumptions of future oil and gas production, commodity prices, operating and development costs; as well as appropriate discount rates. The estimated prices used in the cash flow analysis are determined by management based on forward price curves for the related commodities, adjusted for average historical location and quality differentials. Estimates of cash flows related to probable and possible reserves are reduced by additional risk-weighting factors. The amount of any impairment is transferred to the capitalized costs being amortized. Companies that use the full cost method of accounting for oil and natural gas exploration and development activities are required to perform a ceiling test calculation each quarter. The full cost ceiling test is an impairment test prescribed by SEC Regulation S-X Rule 4-10. The ceiling test is performed quarterly, on a country-by-country basis, uti lizing the average of prices in effect on the first day of the month for the preceding twelve month period in accordance with SEC Release No. 33-8995. The ceiling limits such pooled costs to the aggregate of the present value of future net revenues attribu table to proved crude oil and natural gas reserves discounted at 10%, plus the lower of cost or market value of unproved properties, less any associated tax effects. If such capitalized costs exceed the ceiling, the Company will record a write-down to the extent of such excess as a non-cash charge to earnings. Any such write-down will reduce earnings in the period of occurrence and results in a lower depletion, depreciation and amortization (“DD&A”) rate in future periods. A write-down may not be reversed i n future periods even though higher oil and natural gas prices may subsequently increase the ceiling. The Company did not incur a ceiling test write-down for the three months ended March 31, 2016 or 2015 . |
Deferred Financing Costs [Policy Text Block] | (f) Deferred Financing Costs: Inclu ded in other current assets at March 31, 2016 are costs associated with the issuance of our revolving credit facility. Costs associated with the issuance of our Senior Notes, 2018 Notes and 2024 Notes are presented in the balance sheet as a direct ded uction from the carrying amount of the related debt liability . The remaining unamortized issuance costs are being amortized over the life of the applicable debt or facility using the straight line method. |
Derivatives [Policy Text Block] | (g) Derivative Instruments and Hedging Activities: The Company follows FASB ASC Topic 815, Derivatives and Hedging (“FASB ASC 815”). The Company records the fair value of its commodity derivatives as an asset or liability in the Consolidated Balance Sheets, and records the changes in the fair value of its commodity derivatives in the Consolidated Statements of Operations. The Company does not offset the value of its derivative arrangements with the same counterparty. (See Note 6). |
Income Tax [Policy Text Block] | (h) Income Taxes: Income taxes are accounted for under th e asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The eff ect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded related to deferred tax assets based on the “more likely than not” criteria descri bed in FASB ASC Topic 740, Income Taxes. In addition, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. |
Earnings Per Share [Policy Text Block] | ( i ) Earnings Per Share: Basic earnings per share is computed by dividing net earnings attributable to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share is computed by adjusting the average number of common shares outstanding for the dilutive effect, if any, of common stock equivalents. The Company uses the treasury stock method to determine the dilutive effect. Three Months Ended March 31, March 31, 2016 2015 (Share amounts in 000's) Net (loss) income $ (21,831) $ 25,189 Weighted average common shares outstanding - basic 153,322 153,042 Effect of dilutive instruments(1) - 2,661 Weighted average common shares outstanding - diluted 153,322 155,703 Net (loss) income per common share - basic $ (0.14) $ 0.16 Net (loss) income per common share - diluted $ (0.14) $ 0.16 Number of shares not included in dilutive earnings per share that would have been anti-dilutive because the exercise price was greater than the average market price of the common shares (1) - 776 (1) Due to the net loss for the three months ended March 31, 2016, 1.6 million shares for options and restricted stock units were anti-dilutive and excluded from the computation of net loss per share. |
Use Of Estimates [Policy Text Block] | (j) Use of Estimates: Preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Compensation Related Costs [Policy Text Block] | (k) Accounting for Share-Based Compensation: The Company measures and r ecognizes compensation expense for all share-based payment awards made to employees and directors, including employee stock options, based on estimated fair values in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. |
Fair Value Measurement [Policy Text Block] | (l) Fair Value Ac counting: The Company follows FASB ASC Topic 820, Fair Value Measurements and Disclosures (“FASB ASC 820”), which defines fair value, establishes a framework for measuring fair value under GAAP, and expands disclosures about fair value measurements. This statement applies under other accounting topics that require or permit fair value measurements. See Note 7 for additional information. |
Asset Retirement Obligations and Environmental Cost [Policy Text Block] | (m) Asset Retirement Obligation: The initial estimated retirement obligation of properties is recognized as a liabi lity with an associated increase in oil and gas properties for the asset retirement cost. Accretion expense is recognized over the estimated productive life of the related assets. If the fair value of the estimated asset retirement obligation changes, an a djustment is recorded to both the asset retirement obligation and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, changes in service and equipment costs and changes in the estimated timi ng of settling asset retirement obligations. As a full cost company, settlements for asset retirement obligations for abandonment are adjusted to the full cost pool. The asset retirement obligation is included within other long-term obligations in the acc ompanying Consolidated Balance Sheets. |
Revenue Recognition [Policy Text Block] | (n) Revenue Recognition: The Company generally sells oil and natural gas under both long-term and short-term agreements at prevailing market prices. The Company recognizes revenues when the oil and natural gas is delivered, which occurs when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. The Company accounts for oil and natural gas sales using the “entitleme nts method.” Under the entitlements method, revenue is recorded based upon the Company’s ownership share of volumes sold, regardless of whether it has taken its ownership share of such volumes. Any amount received in excess of the Company’s share is treate d as a liability. If the Company receives less than its entitled share, the underproduction is recorded as a receivable. Make-up provisions and ultimate settlements of volume imbalances are generally governed by agreements between the Company and its part ners with respect to specific properties or, in the absence of such agreements, through negotiation. The value of volumes over- or under-produced can change based on changes in commodity prices. The Company prefers the entitlements method of accounting for oil and natural gas sales because it allows for recognition of revenue based on its actual share of jointly owned production, results in better matching of revenue with related operating expenses, and provides balance sheet recognition of the estimated va lue of product imbalances. The Company’s imbalance obligations as of March 31, 2016 and December 31, 2015 were immaterial. |
Interest Expense [Policy Text Block] | (o) Capitalized Interest: Interest is capitalized on the cost of unevaluated gas and oil properties that are excluded from amortization and actively being evaluated, if any. |
Reclassifications [Policy Text Block] | (p) Reclassifications: Certain amounts in the financial statements of prior periods have been reclassified to conform to the current period financial statement presentation. |
Capital Cost Accrual [Policy Text Block] | (q) Capital Cost Accrual: Th e Company accrues for exploration and development costs in the period incurred, while payment may occur in a subsequent period. |
Recent Accounting Pronouncements [Policy Text Block] | (r) Recent Accounting Pronouncements: In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, Compensation- Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU No. 2016-09”) to simplify some of the provisions in stock compensation accounting. The update simplifies the accounting for a stock payment’s tax consequences an d amends how excess tax benefits and a business’s payments to cover the tax bills for the shares’ recipients should be classified. The amendments allow companies to estimate the number of stock awards expected to vest and revises the withholding requiremen ts for classifying stock awards as equity. For public companies, the standard will take effect for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016 with earlier application permitted. The Company is still evalu ating the impact of ASU No. 2016-09 on its financial position and results of operations . In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (“ASU No. 2016-02”). The guidance requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The ASU also will require disclosures designed to give financial statement users information on the amount, timing , and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. For public companies, the standard will take effect for fiscal years, and interim periods within those fiscal years, beginning after De cember 15, 2018 with earlier application permitted. The Company is still evaluating the impact of ASU No. 2016-02 on its financial position and results of operations . In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet C lassification of Deferred Taxes (“ASU No. 2015-17”). The guidance eliminates the requirement to present deferred tax assets and liabilities as current and noncurrent amounts in a classified balance sheet. The new standard requires deferred tax assets and liabilities to be classified as noncurrent. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitt ed for all entities as of the beginning of an interim or annual reporting period and may be applied either prospectively or retrospectively to all periods presented. The Company has elected early adoption of ASU No. 2015-17 and has applied these changes p rospectively as of December 31, 2015. The adoption of this guidance has no impact on our results of operations or cash flows. The reclassification of amounts from current to noncurrent affects presentation of our financial position. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (“ASU No. 2015-11”). Public companies will have to apply the amendments for reporting periods that start after December 15, 2016, including interim periods within those fiscal years. This ASU requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The company does not expect the adoption of ASU No. 2015-11 to have a material impact on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (S ubtopic 835-30)—Simplifying the Presentation of Debt Issuance Costs. In August 2015, the FASB issued ASU 2015-15, Interest—Imputation of Interest (Subtopic 835-30)—Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Cred it Arrangements . These ASUs require capitalized debt issuance costs, except for those related to revolving credit facilities, to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability, rather than as an asset. The Company adopted these ASUs on January 1, 2016, using a retrospective approach. The adoption resulted in a reclassification that reduced current assets and current maturities of long-term debt by $ 19.2 million and $ 19.4 million on the Company’ s Consolidated Balance Sheet at March 31, 2016 and December 31, 2015, respectively. In June 2015, the FASB issued a delay by one year of the revenue recognition standard adopted in June 2014. In June 2014, the FASB issued ASU No. 2014-09, Revenue fro m Contracts with Customers (Topic 606) (“ASU No. 2014-09”), which amends the FASB ASC by adding new FASB ASC Topic 606, Revenue from Contracts with Customers , and superseding the revenue recognition requirements in FASB ASC 605, Revenue Recognition , and in most industry-specific topics. ASU No. 2014-09 provides new guidance concerning recognition and measurement of revenue and requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with cust omers. The new proposal related to ASU No. 2014-09 delays the application of the standard to reporting periods beginning after December 15, 2017 instead of December 15, 2016. The Company is still evaluating the impact of ASU No. 2014-09 on its financial p osition and results of operations . In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU No. 2014-15”) that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. ASU No. 2014-15 becomes effective for annual periods beginning after December 15, 2016 and for interim reporting periods thereafter. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. |
Significant Accounting Polici18
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Significant Accounting Policies Tables [Abstract] | |
Schedule Of Earnings Per Share | Three Months Ended March 31, March 31, 2016 2015 (Share amounts in 000's) Net (loss) income $ (21,831) $ 25,189 Weighted average common shares outstanding - basic 153,322 153,042 Effect of dilutive instruments(1) - 2,661 Weighted average common shares outstanding - diluted 153,322 155,703 Net (loss) income per common share - basic $ (0.14) $ 0.16 Net (loss) income per common share - diluted $ (0.14) $ 0.16 Number of shares not included in dilutive earnings per share that would have been anti-dilutive because the exercise price was greater than the average market price of the common shares (1) - 776 (1) Due to the net loss for the three months ended March 31, 2016, 1.6 million shares for options and restricted stock units were anti-dilutive and excluded from the computation of net loss per share. |
Oil and Gas Properties and Eq19
Oil and Gas Properties and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Oil And Gas Properties And Equipment Tables [Abstract] | |
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure [Text Block] | 2. OIL AND GAS PROPERTIES AND EQUIPMENT: March 31, December 31, 2016 2015 Proven Properties: Acquisition, equipment, exploration, drilling and abandonment costs $ 10,558,034 $ 10,480,165 Less: Accumulated depletion, depreciation and amortization(2) (9,656,950) (9,629,020) 901,084 851,145 Unproven Properties: Acquisition and exploration costs not being amortized (1) - - Net capitalized costs - oil and gas properties $ 901,084 $ 851,145 (1) Interest is capitalized on the cost of unevaluated oil and natural gas properties that are excluded from amortization and actively being evaluated, if any. At December 31, 2015, all costs related to unevaluated properties that were previously excluded from capitalized costs not being amortized have been impaired or not considered significant and transferred to the capitalized costs being amortized in the full cost pool. For the three months ended March 31, 2016 , there was no interest capitaliz ed on the cost of unevaluated oil and natural gas properties. For the year ended December 31, 2015 , total interest on outstanding debt was $185.0 million, of which, $20.4 million was capitalized on the cost of unproven oil and natural gas properties . (2) The Company recorded a $3.1 billion non-cash write-down of the carrying value of its proved oil and gas properties as a result of ceiling test limitations during the quarter ended December 31, 2015 . |
Outstanding Debt and Other Long
Outstanding Debt and Other Long Term Obligations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Outstanding Debt And Other Long Term Obligations Tables [Abstract] | |
Outstanding Debt And Other Long Term Obligations | 3. DEBT AND OTHER LONG-TERM OBLIGATIONS: March 31, December 31, 2016 2015 Current portion of long-term debt: 6.125% Senior Notes due 2024 $ 850,000 $ 850,000 5.75% Senior Notes due 2018 450,000 450,000 Senior Notes issued by Ultra Resources, Inc. 1,460,000 1,460,000 Less: Deferred financing costs (19,213) (19,447) 2,740,787 2,740,553 Credit Agreement 999,000 630,000 Total current portion of long-term debt 3,739,787 3,370,553 Other long-term obligations: Other long-term obligations 177,564 165,784 Total Debt and Other Long-term Obligations $ 3,917,351 $ 3,536,337 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Share Based Compensation Tables [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Text Block] | 4. SHARE BASED COMPENSATION: Valuation and Expense Information Three Months Ended March 31, 2016 2015 Total cost of share-based payment plans $ 2,728 $ 2,970 Amounts capitalized in oil and gas properties and equipment $ 931 $ 977 Amounts charged against income, before income tax benefit (provision) $ 1,797 $ 1,993 Amount of related income tax (expense) benefit recognized in income before valuation allowance $ 715 $ 833 |
Stock Option Activity TextBlock | Weighted Number of Average Options Exercise Price (000's) (US Dollars) Balance, December 31, 2014 690 $ 25.68 to $ 98.87 Expired or forfeited (171) $ 25.68 to $ 75.18 Balance, December 31, 2015 519 $ 49.05 to $ 98.87 Expired or forfeited (43) $ 57.65 to $ 63.05 Balance, March 31, 2016 476 $ 49.05 to $ 98.87 |
Valuation Assumptions | Valuation Assumptions The Company estimates the fair value of the market condition related to the LTIP awards on the date of grant using a Monte Carlo simulation with the following assumptions: 2015 LTIP 2014 LTIP Volatility of common stock 39.0% 39.2% Risk-free interest rate 0.66% 0.40% |
Derivative Financial Instrume22
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Financial Instruments Tables [Abstract] | |
Gain or loss on derivative instruments | For the Three Months Ended March 31, Commodity Derivatives : 2016 2015 Realized gain on commodity derivatives-natural gas (1) $ - $ 29,359 Unrealized gain on commodity derivatives (1) - 7,506 Total gain on commodity derivatives $ - $ 36,865 (1) Included in gain on commodity derivatives in the Consolidated Statements of Operations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements Tables [Abstract] | |
Schedule of Fair Value of Financial Instruments | March 31, 2016 December 31, 2015 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value 7.31% Notes due March 2016, issued 2009 62,000 64,266 62,000 63,604 4.98% Notes due January 2017, issued 2010 116,000 117,636 116,000 113,420 5.92% Notes due March 2018, issued 2008 200,000 203,624 200,000 191,985 5.75% Notes due December 2018, issued 2013 450,000 39,528 450,000 111,451 7.77% Notes due March 2019, issued 2009 173,000 180,161 173,000 174,488 5.50% Notes due January 2020, issued 2010 207,000 204,305 207,000 185,052 4.51% Notes due October 2020, issued 2010 315,000 278,175 315,000 258,520 5.60% Notes due January 2022, issued 2010 87,000 83,519 87,000 73,034 4.66% Notes due October 2022, issued 2010 35,000 28,070 35,000 25,558 6.125% Notes due October 2024, issued 2014 850,000 94,091 850,000 206,321 5.85% Notes due January 2025, issued 2010 90,000 83,863 90,000 70,756 4.91% Notes due October 2025, issued 2010 175,000 134,604 175,000 115,911 Credit Facility due October 2016 999,000 999,000 630,000 630,000 $ 3,759,000 $ 2,510,842 $ 3,390,000 $ 2,220,100 |
Supplemental Financial Statem24
Supplemental Financial Statement Information (Parent Company) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Parent Company Financial Statements [Abstract] | |
Supplemental Statement Of Operations Disclosures [Text Block] | CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended March 31, 2016 2015 General and administrative expense $ 60 $ 99 Other income (expense): Interest expense (20,267) (20,267) Loss (income) from unconsolidated affiliates (7,993) 37,720 Guarantee fee income 6,073 5,703 Other income 226 81 (Loss) income before income tax benefit (22,021) 23,138 Income tax benefit (190) (2,051) Net (loss) income $ (21,831) $ 25,189 |
Supplemental Balance Sheet Disclosures [Text Block] | CONDENSED BALANCE SHEET March 31, December 31, 2016 2015 ASSETS Current Assets: Cash and cash equivalents $ 430 $ 523 Accounts receivable 94,930 64,542 Other current assets 5,370 5,150 Total current assets 100,730 70,215 Other non-current assets 24,103 24,197 Total assets $ 124,833 $ 94,412 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Current portion of long-term debt $ 1,284,015 $ 1,283,232 Interest payable 33,650 14,166 Total current liabilities 1,317,665 1,297,398 Advances to unconsolidated affiliates 1,818,518 1,788,951 Total shareholders' deficit (3,011,350) (2,991,937) Total liabilities and shareholders' equity $ 124,833 $ 94,412 |
Supplemental Cash Flow Statement Disclosures [Text Block] | CONDENSED STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2016 2015 Net cash (used in) operating activities $ (24,088) $ (750) Investing Activities: Dividends received 24,089 24,073 Net cash provided by investing activities 24,089 24,073 Financing Activities: Shares re-issued from treasury - 4,557 Deferred financing costs - 6 Net share settlements (94) - Net cash (used in) provided by financing activities (94) 4,563 (Decrease) increase in cash during the period (93) 27,886 Cash and cash equivalents, beginning of period 523 772 Cash and cash equivalents, end of period $ 430 $ 28,658 |
Liquidity and Going Concern D25
Liquidity and Going Concern Disclosure (Narratives) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)MMBTU | |
Liquidity and Going Concern [Abstract] | |
Senior Notes Lender Approval | 100.00% |
Interest payment due Ultra Petroleum Corp Senior Notes due 2024 | $ 26 |
Principal payment due Senior Notes Ultra Resources Inc | 62 |
Interest payment due Senior Notes Ultra Resources Inc | $ 40 |
Increased Capacity Commitment Per Day Of Natural Gas | MMBTU | 50,000 |
Interest payment due Ultra Resources Inc Credit Agreement | $ 2.7 |
Restrictive covenants present value Ultra Resources Inc Credit Agreement | 1.5 times |
Debt Instrument Restrictive Covenants Present Value Ratio | 0.9 |
Demand For Payment | $ 303.2 |
Significant Accounting Polici26
Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Significant Accounting Policies Details [Abstract] | |||
Discount Rate Future Net Revenues | 10.00% | ||
Earnings Per Share Reconciliation [Abstract] | |||
Net Income (Loss) | $ (21,831) | $ 25,189 | |
Weighted Average Number of Shares Outstanding, Basic | 153,322 | 153,042 | |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0 | 2,661 | |
Weighted Average Number of Shares Outstanding, Diluted | 153,322 | 155,703 | |
Earnings Per Share, Basic | $ (0.14) | $ 0.16 | |
Earnings Per Share, Diluted | $ (0.14) | $ 0.16 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,600 | 776 | |
Unamortized debt issuance costs reclassified | $ 19,200 | $ 19,400 |
Oil and Gas Properties and Eq27
Oil and Gas Properties and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Proven Properties [Abstract] | ||
Acquisition, equipment, exploration, drilling and environmental costs | $ 10,558,034 | $ 10,480,165 |
Capitalized Costs, Accumulated Depreciation, Depletion, Amortization and Valuation Allowance for Relating to Oil and Gas Producing Activities | (9,656,950) | (9,629,020) |
Proved | 901,084 | 851,145 |
Capitalized Costs of Unproved Properties Excluded from Amortization [Abstract] | ||
Oil Gas Properties Using Full Cost Method Accounting Unproved | 0 | 0 |
Capitalized Costs, Oil and Gas Producing Activities, Net | 901,084 | 851,145 |
Interest Expense, Borrowings | 49,900 | 185,000 |
Interest Costs, Capitalized During Period | $ 0 | 20,400 |
Ceiling Test Limitation Pretax Oil and Gas Properties | $ 3,100,000 |
Debt and Other Long Term Obliga
Debt and Other Long Term Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Short-term Debt [Abstract] | ||
6.125% Senior Notes due 2024 | $ 850,000 | $ 850,000 |
5.75% Senior Notes due 2018 | 450,000 | 450,000 |
Senior Notes issued by Ultra Resources Inc | 1,460,000 | 1,460,000 |
Deferred financing costs | (19,213) | (19,447) |
Senior Notes Total, net | 2,740,787 | 2,740,553 |
Credit Agreement | 999,000 | 630,000 |
Current portion of long term debt | 3,739,787 | 3,370,553 |
Other long-term obligations [Abstract] | ||
Other long-term obligations | 177,564 | 165,784 |
Total debt and other long term obligations | $ 3,917,351 | $ 3,536,337 |
Debt And Other Long Term Obli29
Debt And Other Long Term Obligations (Narratives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Senior Long term Notes Current And Noncurrent [Abstract] | ||
Interest payment due Ultra Petroleum Corp Senior Notes due 2024 | $ 26,000 | |
Ultra Resources Inc Bank Indebtednesss [Abstract] | ||
Revolving Bank Loan Comitment Value | 1,000,000 | |
Credit Agreement | $ 999,000 | $ 630,000 |
Debt Instrument Interest Rate Terms Prime | 1.50% | |
Debt Instrument Interest Rate Terms Libor | 2.50% | |
Credit Agreement Consolidated Leverage Covenant | 3.5 to 1.0 | |
Credit Agreement Consolidated Leverage Ratio | 4.6 | |
Restrictive covenants present value Ultra Resources Inc Credit Agreement | 1.5 times | |
Debt Instrument Restrictive Covenants Present Value Ratio | 0.9 | |
Ultra Resources Inc Senior Notes [Abstract] | ||
Senior Notes issued by Ultra Resources Inc | $ 1,460,000 | 1,460,000 |
Senior Notes Consolidated Leverage Covenant | 3.5 to 1.0 | |
Senior Notes Consolidated Leverage Covenant Ratio | 4.6 | |
Interest payment due Senior Notes Ultra Resources Inc | $ 40,000 | |
Principal payment due Senior Notes Ultra Resources Inc | 62,000 | |
Ultra Petroleum Corp Senior Notes | ||
Senior Notes Ultra Petroleum Corp Due 2024 | $ 850,000 | 850,000 |
Debt Instrument Call Feature Ultra Petroleum Corp Senior Notes Due 2024 | On and after October 1, 2019, the Company may redeem all or, from time to time, a part of the 2024 Notes at the following prices expressed as a percentage of principal amount of the 2024 Notes: 2019 – 103.063%; 2020 – 102.042%; 2021 – 101.021%; and 2022 and thereafter – 100.000%. | |
Interest payment due Ultra Petroleum Corp Senior Notes due 2024 | $ 26,000 | |
Senior Notes Ultra Petroleum Corp Due 2018 | $ 450,000 | $ 450,000 |
Senior Notes Ultra Petroleum Corp Due 2018 Interest Rate | 5.75% | |
Debt Instrument Call Feature | As of December 15, 2015, the Company may redeem all or, from time to time, a part of the 2018 Notes at the following prices expressed as a percentage of principal amount of the 2018 Notes: 2015 – 102.875%; 2016 – 101.438%; and 2017 and thereafter – 100.000% |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation And Expense Information [Abstract] | ||||
Total cost of share based payment plans | $ 2,728 | $ 2,970 | ||
Amounts capitalized in oil and gas properties and equipment | 931 | 977 | ||
Stock compensation | 1,797 | 1,993 | ||
Amount of related income tax benefit recognized in income before valuation allowance | $ 715 | $ 833 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 49.05 | $ 49.05 | $ 25.68 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 98.87 | $ 98.87 | $ 98.87 | |
Expired or forfeited | (43) | (171) | ||
Exercise Price, Lower Range Limit Expired or Forfeited | $ 57.65 | $ 25.68 | ||
Exercise Price, Upper Range Limit Expired or Forfeited | $ 63.05 | $ 75.18 | ||
Number Of Options [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 519 | 690 | 690 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 476 | 519 | 690 |
TSR Share Based Compensation (D
TSR Share Based Compensation (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Long Term Incentive 2015 Plan [Member] | |
Total Shareholder Return Assumptions [Line Items] | |
Volatility of common stock | 39.00% |
Risk-free interest rate | 0.66% |
Long Term Incentive 2014 Plan [Member] | |
Total Shareholder Return Assumptions [Line Items] | |
Volatility of common stock | 39.20% |
Risk-free interest rate | 0.40% |
Share Based Compensation (Narra
Share Based Compensation (Narratives) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share Based Compensation Details [Abstract] | ||
Long Term Incentive Program Period | $ 1.4 | $ 1.8 |
Long Term Incentive Program Total 2014 Program | 9.8 | |
Long Term Incentive Program Total 2015 Program | 10.8 | |
Long Term Incentive Program Total 2013 Program | $ 3.8 | |
Long Term Incentive Program Total 2013 Program Shares | 132,843 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Statement Income Taxes Details [Abstract] | |
Statutory tax rate | 35.00% |
Derivative Financial Instrume34
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commodity Derivatives [Abstract] | ||
Realized (loss) gain on commodity derivatives - natural gas | $ 0 | $ 29,359 |
Unrealized Gain (Loss) on Derivatives | 0 | 7,506 |
Gain loss on commodity derivatives | $ 0 | $ 36,865 |
Derivative Financial Instrumens
Derivative Financial Instrumens (Details 1) | 3 Months Ended |
Mar. 31, 2016 | |
Commodity Derivatives Authorization [Abstract] | |
Commodity Derivatives Board Authorization | 50.00% |
Fair Value Measurments Debt Ins
Fair Value Measurments Debt Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 3,759,000 | $ 3,390,000 |
Notes Payable, Fair Value Disclosure | 2,510,842 | 2,220,100 |
Notes Due 2018 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | 200,000 | 200,000 |
Notes Payable, Fair Value Disclosure | $ 203,624 | 191,985 |
Debt Instruments Interest Rates | 5.92% | |
Notes Due December 2018 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 450,000 | 450,000 |
Notes Payable, Fair Value Disclosure | $ 39,528 | 111,451 |
Debt Instruments Interest Rates | 5.75% | |
Notes Due 2016 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 62,000 | 62,000 |
Notes Payable, Fair Value Disclosure | $ 64,266 | 63,604 |
Debt Instruments Interest Rates | 7.31% | |
Notes Due 2019 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 173,000 | 173,000 |
Notes Payable, Fair Value Disclosure | $ 180,161 | 174,488 |
Debt Instruments Interest Rates | 7.77% | |
Notes Due 2017 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 116,000 | 116,000 |
Notes Payable, Fair Value Disclosure | $ 117,636 | 113,420 |
Debt Instruments Interest Rates | 4.98% | |
Notes Due January 2020 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 207,000 | 207,000 |
Notes Payable, Fair Value Disclosure | $ 204,305 | 185,052 |
Debt Instruments Interest Rates | 5.50% | |
Notes Due January 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 87,000 | 87,000 |
Notes Payable, Fair Value Disclosure | $ 83,519 | 73,034 |
Debt Instruments Interest Rates | 5.60% | |
Notes Due January 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 90,000 | 90,000 |
Notes Payable, Fair Value Disclosure | $ 83,863 | 70,756 |
Debt Instruments Interest Rates | 5.85% | |
Notes Due October 2020 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 315,000 | 315,000 |
Notes Payable, Fair Value Disclosure | $ 278,175 | 258,520 |
Debt Instruments Interest Rates | 4.51% | |
Notes Due October 2022 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 35,000 | 35,000 |
Notes Payable, Fair Value Disclosure | $ 28,070 | 25,558 |
Debt Instruments Interest Rates | 4.66% | |
Notes Due October 2024 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 850,000 | 850,000 |
Notes Payable, Fair Value Disclosure | $ 94,091 | 206,321 |
Debt Instruments Interest Rates | 6.125% | |
Notes Due October 2025 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 175,000 | 175,000 |
Notes Payable, Fair Value Disclosure | $ 134,604 | 115,911 |
Debt Instruments Interest Rates | 4.91% | |
Credit Facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total outstanding debt | $ 999,000 | 630,000 |
Notes Payable, Fair Value Disclosure | $ 999,000 | $ 630,000 |
Commitments and Contingencies (
Commitments and Contingencies (Narratives) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)MMBTU | |
Commitments And Contingencies [Abstract] | |
Sempra capacity | MMBTU | 50,000 |
Demand For Payment | $ 303.2 |
Contingency Lower Range | 19 |
Contingency Upper Range | $ 303.2 |
Subsequent Events (Narratives)
Subsequent Events (Narratives) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Subsequent Events Details [Abstract] | |
Interest payment due Ultra Petroleum Corp Senior Notes due 2024 | $ 26 |
Amount demanded for payment related to Rockies Express Pipeline transportation agreement. | $ 303.2 |
Supplemental Financial Informat
Supplemental Financial Information (Parent - Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Expenses [Abstract] | ||
General and administrative | $ 4,219 | $ 3,640 |
Other Nonoperating Income (Expense) [Abstract] | ||
Interest expense | (49,903) | (42,668) |
Other income (expense), net | (1,695) | 34 |
Income (loss) before income taxes | (22,021) | 23,167 |
Income Tax Expense (Benefit) | (190) | (2,022) |
Net Income (Loss) | (21,831) | 25,189 |
Parent [Member] | ||
Operating Expenses [Abstract] | ||
General and administrative | 60 | 99 |
Other Nonoperating Income (Expense) [Abstract] | ||
Interest expense | (20,267) | (20,267) |
Income (loss) from unconsolidated affiliates | (7,993) | 37,720 |
Guaranty fee income | 6,073 | 5,703 |
Other income (expense), net | 226 | 81 |
Income (loss) before income taxes | (22,021) | 23,138 |
Income Tax Expense (Benefit) | (190) | (2,051) |
Net Income (Loss) | $ (21,831) | $ 25,189 |
Supplemental Financial Inform40
Supplemental Financial Information (Parent - Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets [Abstract] | ||
Cash and cash equivalents | $ 281,506 | $ 4,143 |
Other current assets | 6,136 | 4,064 |
Total current assets | 372,611 | 91,214 |
Other noncurrent assets | 835 | 835 |
Total assets | 1,282,922 | 952,039 |
Current Liabilities [Abstract] | ||
Current portion of long term debt | 3,739,787 | 3,370,553 |
Interest payable | 84,910 | 42,657 |
Total current liabilities | 3,993,052 | 3,651,897 |
Total shareholders' deficit | (3,011,350) | (2,991,937) |
Total liabilities and shareholders' equity | 1,282,922 | 952,039 |
Parent [Member] | ||
Current Assets [Abstract] | ||
Cash and cash equivalents | 430 | 523 |
Accounts receivable | 94,930 | 64,542 |
Other current assets | 5,370 | 5,150 |
Total current assets | 100,730 | 70,215 |
Other noncurrent assets | 24,103 | 24,197 |
Total assets | 124,833 | 94,412 |
Current Liabilities [Abstract] | ||
Current portion of long term debt | 1,284,015 | 1,283,232 |
Interest payable | 33,650 | 14,166 |
Total current liabilities | 1,317,665 | 1,297,398 |
Advances to unconsolidated affiliates | 1,818,518 | 1,788,951 |
Total shareholders' deficit | (3,011,350) | (2,991,937) |
Total liabilities and shareholders' equity | $ 124,833 | $ 94,412 |
Supplemental Financial Inform41
Supplemental Financial Information (Parent - Cash Flow Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities [Abstract] | ||
Net Cash Provided by (Used in) Operating Activities | $ (3,690) | $ 121,799 |
Investing Activities [Abstract] | ||
Net Cash Provided by (Used in) Investing Activities | (87,640) | (140,294) |
Financing Activities [Abstract] | ||
Payments of Financing Costs | 0 | (6) |
Repurchased shares - net share settlements | 307 | 2,419 |
Net Cash Provided by (Used in) Financing Activities | 368,693 | 43,538 |
Cash and Cash Equivalents, Period Increase (Decrease) | 277,363 | 25,043 |
Cash and Cash Equivalents, at Carrying Value | 4,143 | 8,919 |
Cash and Cash Equivalents, at Carrying Value | 281,506 | 33,962 |
Parent [Member] | ||
Operating Activities [Abstract] | ||
Net Cash Provided by (Used in) Operating Activities | (24,088) | (750) |
Investing Activities [Abstract] | ||
Dividends received | 24,089 | 24,073 |
Net Cash Provided by (Used in) Investing Activities | 24,089 | 24,073 |
Financing Activities [Abstract] | ||
Shares reissued from treasury | 0 | 4,557 |
Payments of Financing Costs | 0 | 6 |
Repurchased shares - net share settlements | (94) | 0 |
Net Cash Provided by (Used in) Financing Activities | (94) | 4,563 |
Cash and Cash Equivalents, Period Increase (Decrease) | (93) | 27,886 |
Cash and Cash Equivalents, at Carrying Value | 523 | 772 |
Cash and Cash Equivalents, at Carrying Value | $ 430 | $ 28,658 |