Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 31, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | ULTRA PETROLEUM CORP. | |
Entity Central Index Key | 0001022646 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-33614 | |
Entity Incorporation, State or Country Code | B0 | |
Entity Address, Address Line One | 116 Inverness Drive East | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 303 | |
Local Phone Number | 708-9740 | |
Entity Common Stock, Shares Outstanding | 199,665,509 | |
Document Transition Report | false | |
Document Quarterly Report | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 6,571 | $ 1,664 |
Restricted cash | 1,926 | 1,777 |
Oil and gas revenue receivable and other receivables, net of allowances $11,967 | 42,453 | 78,321 |
Derivative assets | 44,261 | 32,100 |
Income tax receivable | 881 | |
Other current assets | 7,911 | 10,746 |
Total current assets | 103,122 | 125,489 |
Oil and gas properties, net, using the full cost method of accounting: | ||
Proven, net of accumulated depletion, depreciation, amortization and impairments | 1,266,743 | 1,552,419 |
Property, plant and equipment, net | 8,435 | 9,779 |
Long-term right-of-use assets | 116,579 | 119,496 |
Other assets | 5,779 | 8,093 |
Total assets | 1,500,658 | 1,815,276 |
Current liabilities: | ||
Accounts payable | 9,314 | 13,570 |
Accrued liabilities | 41,885 | 44,480 |
Production taxes payable | 72,088 | 53,428 |
Current portion of long-term debt | ||
Credit facility | 64,700 | |
Long-term debt | 1,928,528 | 1,928,048 |
Add: Premium on exchange transactions | 193,237 | 203,883 |
Less: Unamortized deferred financing costs and discount | (43,730) | (46,421) |
Total current portion of long-term debt, net | 2,078,035 | 2,150,210 |
Interest payable | 23,390 | 29,903 |
Lease liabilities | 12,166 | 11,938 |
Derivative liabilities | 4,866 | 20,692 |
Total current liabilities | 2,241,744 | 2,324,221 |
Long-term lease liabilities | 104,447 | 107,587 |
Asset retirement obligations | 197,482 | 193,995 |
Other long-term obligations | 18,181 | 34,287 |
Total liabilities | 2,561,854 | 2,660,090 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Common stock - As of March 31, 2020 and December 31, 2019, no par value; authorized - unlimited; issued and outstanding - 199,310,216 and 197,888,473, respectively | 2,141,751 | 2,140,520 |
Treasury stock | (49) | (49) |
Retained loss | (3,202,898) | (2,985,285) |
Total shareholders' deficit | (1,061,196) | (844,814) |
Total liabilities and shareholders' equity | $ 1,500,658 | $ 1,815,276 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Statement Of Financial Position [Abstract] | ||
Oil and gas revenue receivable and other receivables, net of allowances | $ 11,967 | |
Common stock, No par value | ||
Common stock, Shares authorized | Unlimited | Unlimited |
Common stock, Shares issued | 199,310,216 | 197,888,473 |
Common stock, Shares outstanding | 199,310,216 | 197,888,473 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Total operating revenues | $ 130,076 | $ 271,461 |
Expenses: | ||
Lease operating expenses | 19,411 | 17,225 |
Facility lease expense | 5,463 | 6,645 |
Production taxes | 13,922 | 30,175 |
Gathering fees | 16,682 | 19,817 |
Transportation charges | 3,894 | 64 |
Depletion, depreciation, and amortization | 47,284 | 51,653 |
Ceiling test write-down | 242,603 | |
General and administrative expenses | 8,379 | 7,051 |
Prepetition restructuring expenses | 2,644 | |
Other operating expenses, net | 3,438 | 684 |
Total operating expenses | 363,720 | 133,314 |
Operating income (loss) | (233,644) | 138,147 |
Other income (expense), net: | ||
Interest expense | (30,398) | (33,327) |
Gain (loss) on commodity derivatives | 44,294 | (64,339) |
Other income (expense), net | 2,094 | 166 |
Total other income (expense), net | 15,990 | (97,500) |
Income (loss) before income tax (benefit) provision | (217,654) | 40,647 |
Income tax (benefit) provision | (49) | (27) |
Net income (loss) | $ (217,605) | $ 40,674 |
Net earnings (loss) per common share | ||
Basic | $ (1.10) | $ 0.21 |
Diluted | $ (1.10) | $ 0.21 |
Weighted-average common shares outstanding | ||
Basic | 198,333 | 197,383 |
Diluted | 198,333 | 197,801 |
Natural Gas Sales | ||
Revenues: | ||
Total operating revenues | $ 114,281 | $ 245,989 |
Oil Sales | ||
Revenues: | ||
Total operating revenues | 15,574 | 23,465 |
Other Revenues | ||
Revenues: | ||
Total operating revenues | $ 221 | $ 2,007 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Retained (Loss) Earnings | Treasury Stock |
Beginning Balances at Dec. 31, 2018 | $ (1,048,622,000) | $ 2,137,443,000 | $ (3,186,016,000) | $ (49,000) |
Beginning Balances, Shares at Dec. 31, 2018 | 197,383 | |||
Fair value of employee stock plan grants | 1,127,000 | $ 1,127,000 | ||
Initial adoption | ASC 842 | 92,818,000 | 92,818,000 | ||
Net income (loss) | 40,674,000 | 40,674,000 | ||
Ending Balances at Mar. 31, 2019 | (914,003,000) | $ 2,138,570,000 | (3,052,524,000) | (49,000) |
Ending Balances, Shares at Mar. 31, 2019 | 197,383 | |||
Beginning Balances at Dec. 31, 2019 | (844,814,000) | $ 2,140,520,000 | (2,985,285,000) | (49,000) |
Beginning Balances, Shares at Dec. 31, 2019 | 197,888 | |||
Net share settlements | (8,000) | $ 1,422 | (8,000) | |
Fair value of employee stock plan grants | 1,231,000 | 1,231,000 | ||
Net income (loss) | (217,605,000) | (217,605,000) | ||
Ending Balances at Mar. 31, 2020 | $ (1,061,196,000) | $ 2,141,751,000 | $ (3,202,898,000) | $ (49,000) |
Ending Balances, Shares at Mar. 31, 2020 | 199,310 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Operating activities - cash provided by: | |||
Net income (loss) for the period | $ (217,605) | $ 40,674 | |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depletion, depreciation, and amortization | 47,284 | 51,653 | |
Ceiling test write-down | 242,603 | ||
Unrealized loss (gain) on commodity derivatives | (27,945) | (14,292) | |
Stock compensation | 1,180 | 841 | |
Payable-in-kind (“PIK”) interest payable | 2,917 | 3,183 | |
Amortization of premium on debt exchange | (10,647) | (9,716) | |
Amortization of deferred financing costs | 3,459 | 3,123 | |
Inventory write-down | 3,336 | ||
Other | (127) | 582 | |
Net changes in operating assets and liabilities: | |||
Accounts receivable | 35,869 | 50,243 | |
Other current assets | (564) | (307) | |
Other non-current assets | 30 | 30 | |
Accounts payable | (3,637) | (359) | |
Accrued liabilities | (985) | 4,425 | |
Production taxes payable | 18,660 | 25,743 | |
Interest payable | (6,513) | 99 | |
Other long-term obligations | (14,590) | (11,663) | |
Income taxes payable/receivable | 881 | 6,431 | |
Net cash provided by operating activities | 73,606 | 150,690 | |
Investing Activities - cash used in: | |||
Oil and gas property expenditures | (220) | (92,352) | |
Change in capital cost accrual and accounts payable | (2,229) | 1,702 | |
Inventory | 419 | ||
Proceeds from sale of capital assets | 1,469 | ||
Purchase of capital assets | (424) | (211) | |
Net cash used in investing activities | (1,404) | (90,442) | |
Financing activities - cash used in: | |||
Deferred financing costs | (488) | ||
Repurchased shares from net share settlements | (8) | ||
Net cash used in financing activities | (67,146) | (66,488) | |
Increase (decrease) in cash during the period | 5,056 | (6,240) | |
Cash, cash equivalents, and restricted cash, beginning of period | 3,441 | 19,305 | $ 19,305 |
Cash, cash equivalents and restricted cash, end of period | 8,497 | 13,065 | $ 3,441 |
Credit Agreement | |||
Financing activities - cash used in: | |||
Borrowings under Credit Agreement | 88,880 | 232,000 | |
Payments under Credit Agreement / Term Loan | (153,580) | $ (298,000) | |
Term Loan | |||
Financing activities - cash used in: | |||
Payments under Credit Agreement / Term Loan | $ (2,438) |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS: Ultra Petroleum Corp. and its wholly-owned subsidiaries (collectively the “Company,” “Ultra,” “our,” “we,” or “us”) is an independent oil and gas company engaged in the operation and production, development and exploration, and acquisition of oil and natural gas properties. Ultra Petroleum Corp. is incorporated under the laws of Yukon, Canada. The Company’s principal business activities are operating and developing its long-life natural gas reserves in the Pinedale and Jonah fields of the Green River Basin of southwest Wyoming. |
Voluntary Reorganization Under
Voluntary Reorganization Under Chapter 11 | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Voluntary Reorganization under Chapter 11 | VOLUNTARY REORGANIZATION UNDER CHAPTER 11: On May 14, 2020 (the “Petition Date”), Ultra Petroleum Corp. and all of its direct and indirect subsidiaries, including UP Energy Corporation (“UPE”), Ultra Resources, Inc. (“Ultra Resources”), Keystone Gas Gathering, LLC, Ultra Wyoming, LLC, Ultra Wyoming LGS, LLC, UPL Pinedale, LLC, and UPL Three Rivers Holdings, LLC (collectively, the “Filing Subsidiaries” and, together with the Company, the “Debtors”), filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization under chapter 11 of the United States Bankruptcy Code (“Chapter 11”) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”). The Court entered an order to jointly administer the Chapter 11 cases under the caption In re Ultra Petroleum Corp., et al., Case No. 20-32631 (collectively, the “Chapter 11 Cases”). The Debtors will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Court and in accordance with the applicable provisions of the United States Bankruptcy Code and orders of the Court. For the duration of the Chapter 11 Cases, the Company’s operations and its ability to develop and execute its business plan are subject to risks and uncertainties associated with the Chapter 11 Cases. As a result of these risks and uncertainties, the Company’s assets, liabilities, officers and/or directors could be significantly different following the outcome of the Chapter 11 Cases, and the description of its operations, properties and capital plans included in these financial statements may not accurately reflect its operations, properties and capital plans following the Chapter 11 Cases. The commencement of a voluntary proceeding in bankruptcy constitutes an immediate event of default that accelerated the Company’s obligations under the following debt instruments: • The Credit Agreement, dated as of April 12, 2017, as amended (the “Credit Agreement”), by and between Ultra Resources, as borrower, the Company and UPE as parent guarantors, Bank of Montreal, as administrative agent, and the lenders party thereto (the “Consenting RBL Lenders”); • the Term Loan Agreement, dated as of April 12, 2017, as amended (the “Term Loan Agreement”), by and between Ultra Resources, as borrower, the Company and UPE as parent guarantors, Wilmington Trust, National Association (“WTNA”), as administrative and collateral agent, and the lenders party thereto (the “Consenting Term Lenders” and, together with the Consenting RBL Lenders, the “Consenting Lenders”); • the Company’s 9.00% Cash / 2.00% PIK Senior Secured Second Lien Notes due July 2024 (the “Second Lien Notes”), issued pursuant to the indenture, dated December 21, 2018, by and between Ultra Resources, as issuer, the Company and its other subsidiaries, as guarantors, and U.S. Bank, as trustee; • the Company’s 6.875% Senior Notes due April 2022 (the “2022 Notes”) • the Company’s 7.125% Senior Notes due April 2025 (the “2025 Notes” and together with the 2022 Notes, the “Unsecured Notes”) Accordingly, the Company has classified all of its outstanding debt as a current liability on its condensed consolidated balance sheet as of March 31, 2020. On the Petition Date, the Debtors entered into a Restructuring Support Agreement (the “RSA”) with the holders of (i) 100% of the aggregate principal amount of loans outstanding under the Credit Agreement; (ii) approximately 85% of the aggregate principal amount of loans outstanding under the Term Loan Agreement; and (iii) 67% of the Second Lien Notes issued pursuant to the Second Lien Indenture, by and between Ultra Resources, as issuer, and U.S. Bank National Association, a national banking association (“U.S. Bank”), as trustee and collateral agent, (the “Consenting Noteholders” and, together with the Consenting Lenders, the “Restructuring Support Parties”). Pursuant to the RSA, the Restructuring Support Parties agreed (subject to the terms and conditions of the RSA) to vote to accept the Debtors’ prepackaged joint Chapter 11 Plan of Reorganization (as proposed, the “Plan”) described below. Also on the Petition Date, consistent with the RSA, the Debtors solicited acceptances of and filed with the Court the proposed Plan which, subject to Court approval and the requisite support of the Debtors’ creditors: • equitizes or eliminates all of the Debtors’ prepetition indebtedness; • provides for a $25 million DIP Facility (as defined below) to the Company by certain Consenting Term Lenders; • provides for a new capital investment by the Consenting Term Lenders of up to approximately $85 million under an equity rights offering, with proceeds to be utilized by the Company to repay the value of the Credit Agreement including the letter of credit obligation associated with Rockies Express Pipeline (“REX”), net of impairment; the outstanding borrowings and balance of the DIP Facility (defined below); and, to provide the option for up to $15 million of proceeds in the event of a use of such funds; • contemplates a term loan of up to $5 million being issued upon exit with no prepayment penalties; • contemplates an exit revolving credit facility with a $60 million commitment amount and an initial $100 million borrowing base; • contemplates the rejection of the obligations under the REX firm transportation agreement through December 2026 and the rejection of the lease contract with the remaining term through December 2027 for the liquids gathering system owned by Pinedale Corridor, LP; • pays all ongoing trade obligations in the ordinary course; and • contains customary releases and exculpations. During the quarter ended March 31, 2020, the Company recognized $2.6 million consisting of professional, advisory, consulting, and legal fees related to the Chapter 11 Cases. These expenses are reported as Pre-petition restructuring expenses on the condensed consolidated statement of operations. DIP Credit Agreement. In connection with the RSA and the Chapter 11 Cases, Ultra Resources entered into a senior secured super priority debtor-in-possession credit agreement (the “DIP Credit Agreement”), dated as of May 19, 2020, among Ultra Resources, as borrower, UPE and the other Filing Subsidiaries, as guarantors, WTNA, as administrative agent and collateral agent, and the lenders party thereto. The DIP Credit Agreement provides for a multi-draw term loan credit facility in an aggregate principal amount of $25 million (the “DIP Facility”). Ultra intends to use proceeds of the DIP Facility, among other things: (1) to pay interest, fees, costs and expenses related to the loans thereunder, (2) to pay the fees, costs and expenses of the estate professionals retained in the Chapter 11 Cases and approved by the Court, (3) to pay certain fees, costs, disbursements and expenses of the Consenting Term Lenders, (4) to make all permitted payments of costs of administration of the Chapter 11 Cases, (5) to pay such prepetition expenses as are consented to in writing by the Required Lenders (as defined in the DIP Credit Agreement) and approved by the Court, (6) to satisfy any adequate protection obligations owing under the DIP Orders (as defined in the RSA); and (7) for general corporate and working capital purposes of the Debtors during the Chapter 11 Cases The DIP Facility is subject to certain affirmative and negative covenants, including, among other covenants the Company believes to be customary in debtor-in-possession financings, reporting by the Filing Subsidiaries in the form of a rolling 13-week budget and a weekly report with a reasonably detailed written explanation of all material variances from the budget. Ability to Continue as a Going Concern. The significant risks and uncertainties related to the Company’s liquidity and the Chapter 11 Cases described above raise substantial doubt about the Company’s ability to continue as a going concern. As such, the accompanying condensed consolidated financial statements (unaudited) are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. If the Company cannot continue as a going concern, adjustments to the carrying values and classification of its assets and liabilities and the reported amounts of income and expenses could be required and could be material. As discussed above, the filing of the Chapter 11 Cases constitutes an event of default under the Company’s outstanding debt agreements, resulting in the automatic and immediate acceleration of all of the Company’s outstanding debt. The Company projects that it will not have sufficient cash on hand or available liquidity to repay such debt. These conditions and events raise substantial doubt about the Company’s ability to continue as a going concern. As part of the Chapter 11 Cases, the Company submitted the Plan to the Bankruptcy Court. The Company’s operations and its ability to develop and execute its business plan are subject to a high degree of risk and uncertainty associated with the Chapter 11 Cases. The outcome of the Chapter 11 Cases is subject to a high degree of uncertainty and is dependent upon factors that are outside of the Company’s control, including actions of the Bankruptcy Court and the Company’s creditors. There can be no assurance that the Company will confirm and consummate the Plan as contemplated by the RSA or complete another plan of reorganization with respect to the Chapter 11 Cases. As a result, the Company has concluded that management’s plans do not alleviate substantial doubt about the Company’s ability to continue as a going concern absent a successful restructuring. Furthermore, as noted in the Annual Report on Form 10-K, the Company’s independent registered public accounting firm included an explanatory paragraph in its opinion of the audited consolidated financial statement regarding substantial doubt about the Company’s ability to continue as a going concern. As a result, the Company was in default under each of the Credit Agreement and Term Loan Agreement on April 14, 2020 when it delivered its financial statements to the lenders under the Credit Agreement and the Term Loan Agreement, respectively. Accordingly, the Company has classified all of its outstanding debt as a current liability on its condensed consolidated balance sheet as of March 31, 2020 and December 31, 2019. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 1. SIGNIFICANT ACCOUNTING POLICIES: Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) on a going concern basis for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020. The condensed consolidated balance sheet at December 31, 2019, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. S ignificant Accounting Policies: Reclassifications: Certain amounts in the financial statements of prior periods have been reclassified to conform to the current period financial statement presentation. Reorganization Accounting: Effective May 14, 2020, as a result of the filing of the Chapter 11 Cases, the Company began accounting and reporting according to FASB ASC Topic 852 – , which specifies the accounting and financial reporting requirements for entities reorganizing through chapter 11 bankruptcy proceedings. These requirements include distinguishing transactions associated with the reorganization separate from activities related to the ongoing operations of the business. New Accounting Pronouncements: From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on the consolidated financial statements upon adoption. Recent Accounting Pronouncements Not Yet Adopted : Financial Instruments. In June 2016, The FASB issued ASU 2016-13, (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This ASU changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for the Company for starting January 1, 2023. The Company is currently assessing the impact of ASU 2016-13 on its consolidated financial statements. Income Taxes. In December 2019, the FASB issued authoritative guidance intended to simplify the accounting for income taxes (ASU 2019-12, This guidance eliminates certain exceptions to the general approach to the income tax accounting model and adds new guidance to reduce the complexity in accounting for income taxes. This guidance is effective for annual periods after December 15, 2020, including interim periods within those annual periods. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. REVENUE RECOGNITION: Revenue from Contracts with Customers Sales of oil and natural gas are recognized at the point when title and custody (collectively, “control”) of the product is transferred to the customer, collectability is reasonably assured, and the performance obligations are satisfied. Virtually all of our contracts’ pricing provisions are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering line or a transmission line, the quality of the oil or natural gas, and prevailing supply and demand conditions. As a result, the price we receive for our produced oil and natural gas fluctuates to remain competitive with other available oil and natural gas supplies. Natural gas sales We sell natural gas production at the tailgate of the processing plant or at a delivery point downstream, as specified in the contracts with our customers. The production is sold at set volumes and we collect either (i) an agreed upon index price, (ii) a specific index price adjusted for pricing differentials, or (iii) a set price. We recognize revenue at the net price received when control transfers to the purchaser at the tailgate of the processing plant or at the agreed-upon delivery point. For these contracts, we have concluded that the Company is the principal for our net revenue interest share of the volumes being sold. Gathering fees are incurred prior to the customer taking control of the product, are not considered to be promised services, and are not included in the transaction price; thus, they are presented as expenses in the condensed consolidated statement of operations. Our working interest partners are considered the principal for their working interest shares. They have the option to take their gas volumes in kind. The Company may act as an agent and market the other partners’ share of the natural gas production from wells we operate. If it does so, the Company is considered the agent and revenue is recorded at the Company’s net revenue interest in the production. Oil sales We sell oil production at either (a) a lease automatic custody transfer meter, (b) a tank battery, or (c) a delivery point downstream, as specified in the contracts with our customers. The production is sold at set volumes and we collect either (i) an agreed upon index price, (ii) a specific index price adjusted for pricing differentials, or (iii) a set price. We recognize revenue at the point when the customer takes control of the product. For these contracts, we have concluded that the Company is the principal for its net revenue interest share of the volumes being sold. Gathering fees are performed prior to the customer taking control of the product, are not considered to be promised services, and are not included in the transaction price; thus, they are presented as expenses in the condensed consolidated statement of operations. Our working interest partners are considered the principal for their working interest shares. They have the option to take their oil volumes in kind. The Company acts as an agent and markets the other partners’ share of almost all oil production from wells we operate. In these situations, the Company is considered the agent and revenue is recorded at the Company’s net revenue interest in the production. Other revenues Our other revenue is comprised of fees paid to us by the operators of the gas processing plants where our gas is processed. Control is transferred upon completion of the processing service. The Company is considered the principal, and revenue is recognized at the point in time that the control is transferred. Transaction price allocated to remaining performance obligations A significant number of our product sales are short-term in nature with a contract term of one year or less at index-based prices. For those contracts, we have utilized the practical expedient in ASC 606-10-50-14 exempting the Company from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. For our product sales that have a contract term greater than one year, we have utilized the practical expedient in ASC 606-10-50-14(a) which states that the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. Contract balances Under our product sales contracts, we invoice customers once our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our product sales contracts do not give rise to contract assets or liabilities under ASC 606. Prior-period performance obligations We record revenue in the month when control is transferred to the purchaser and all contractual obligations are satisfied. However, settlement statements for certain natural gas sales may not be received for 30 to 90 days after the date production is delivered. Consequently, we are required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. We record the differences between our estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. We have existing internal controls for our revenue estimation process and related accruals, and any identified differences between our revenue estimates and actual revenue received historically have been insignificant. Revenue recognized related to performance obligations satisfied in prior reporting periods was not material for the three months ended March 31, 2020 and 2019. |
Other Current Assets
Other Current Assets | 3 Months Ended |
Mar. 31, 2020 | |
Other Current Assets [Abstract] | |
Other Current Assets | 3. OTHER CURRENT ASSETS: The following table summarizes the major components of Other current assets included on the condensed consolidated balance sheet: March 31, December 31, 2020 2019 Deposits and retainers $ 526 $ 651 Prepaids and others 1,442 1,087 Crude oil 958 1,032 Pipe and production equipment 4,985 7,976 Total Other current assets $ 7,911 $ 10,746 During the quarter ended March 31, 2020, the Company recorded a write-down of pipe and production inventory to the lower of cost or net realizable value. The Company’s inventories are valued at the lower of cost or net realizable value, with cost determined using either the weighted-average cost, including the cost of transportation and storage, and with net realizable value defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of transportation. Accordingly, the Company recorded a write-down of pipe and production equipment of $3.3 million. The non-cash expense is reported as Other operating expenses on the condensed consolidated statement of operations. |
Oil and Gas Properties
Oil and Gas Properties | 3 Months Ended |
Mar. 31, 2020 | |
Oil And Gas Property [Abstract] | |
Oil and Gas Properties | 4 . OIL AND GAS PROPERTIES: March 31, December 31, 2020 2019 Proven properties: Acquisition, equipment, exploration, drilling and abandonment costs $ 11,820,726 $ 11,820,392 Less: Accumulated depletion, depreciation, amortization, and impairment (10,553,983 ) (10,267,973 ) Total Oil and gas properties, net $ 1,266,743 $ 1,552,419 The Company uses the full cost method of accounting for its oil and natural gas exploration and development activities and it is 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, utilizing 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 attributable 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. In order to fulfill the obligation to evaluate the full cost ceiling and to calculate DD&A of its oil and gas properties, the Company is required to estimate its reserves on a quarterly basis. The estimated proven oil and gas reserves considers the estimated future production based on the most current well information available including decline rate changes causing downward revisions and updated pricing in accordance with SEC requirements. The reserve estimated as of March 31, 2020 were prepared by Netherland, Sewell & Associates, Inc. The comparable calculated average SEC prices utilized in the preparation of the reserves as of March 31, 2020 were $2.07 per Mcf and $55.35 per Bbl. These prices represent a decrease of 15% and <1% for natural gas and oil, respectively, as compared to the pricing utilized as of December 31, 2019. As a result of the decrease in both quantities of oil and gas reserves, as well as the discounted future cash flow estimates, the Company recorded an increased rate of DD&A per Mcfe and recorded a $242.6 million non-cash write-down of the carrying value of the Company’s oil and gas properties from the ceiling test limitation as of March 31, 2020. Given the continued depressed commodity prices, there is a reasonable possibility that the value of the reserves will be further reduced in future quarters, requiring an additional ceiling test write-down. |
Earning Per Share
Earning Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earning Per Share | 5. EARNINGS PER SHARE: Basic earnings per share is computed by dividing net earnings attributable to common shareholders 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. Certain share-based payments subject to market conditions are considered contingently issuable shares for purposes of calculating diluted earnings per share. Thus, they are excluded from the diluted earnings per share denominator until the market conditions are met. Additionally, warrants are excluded from the diluted earnings per share denominator until the date on which the volume-weighted average price of the Common Shares is at least $2.50 per Common Share for 30 consecutive trading days . For further information on the warrants, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The following table provides a reconciliation of components of basic and diluted net income per common share: For the Three Months Ended March 31, 2020 2019 (Share amounts in 000's) Net income (loss) $ (217,605 ) $ 40,674 Weighted average common shares outstanding - basic 198,333 197,383 Effect of dilutive instruments — 418 Weighted average common shares outstanding - diluted 198,333 197,801 Basic $ (1.10 ) $ 0.21 Diluted $ (1.10 ) $ 0.21 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 6. DEBT: Chapter 11 Cases and Effect of Automatic Stay. On May 14, 2020, the Debtors filed for relief under Chapter 11 of the United States Bankruptcy Code. The commencement of a voluntary proceeding in bankruptcy constitutes an immediate event of default under the Credit Agreement, Term Loan Agreement, Second Lien Indenture, and the Unsecured Notes Indentures, resulting in the automatic and immediate acceleration of all of the Company’s outstanding debt. Any efforts to enforce payment obligations related to the Company’s debt, including the acceleration thereof, have been automatically stayed as a result of the filing of the Chapter 11 Cases, and the creditors’ rights of enforcement are subject to the applicable provisions of the United States Bankruptcy Code. For more information on the Chapter 11 Cases and related matters, refer to the Introductory Note – Voluntary Reorganization under Chapter 11. All debt obligations has been classified as current as of March 31, 2020. The following tables summarize the Company’s debt instruments as of March 31, 2020, and December 31, 2019: March 31, 2020 Principal repayment obligation (1) Unamortized DFC and discounts (2)(3) Unamortized premium (3) Carrying value Credit Facility, secured, due January 2022 $ — $ — $ — $ — Term Loan, secured, due April 2024 966,319 (21,359 ) — 944,960 Second Lien Notes, secured, due July 2024 586,770 — 193,237 780,007 6.875% Notes, unsecured, due April 2022 150,439 (10,077 ) — 140,362 7.125% Notes, unsecured, due April 2025 225,000 (12,294 ) — 212,706 Total debt, net $ 1,928,528 $ (43,730 ) $ 193,237 $ 2,078,035 (1) Includes PIK interest on the Term Loan and Second Lien Notes of $1.1 million and $14.7 million, respectively. (2) Deferred financing costs related to the Revolving Credit Facility are reported within Other assets on the condensed consolidated balance sheet, rather than as a reduction of the carrying amount of long-term debt. (3) As a result of the Bankruptcy Petitions filed on May 14, 2020, subsequent to March 31, 2020, the Company wrote off approximately $144.0 million of unamortized net deferred financing costs, discounts, and premium, net. December 31, 2019 Principal repayment obligation (1) Unamortized DFC and discounts (2) Unamortized premium Carrying value Credit Facility, secured, due January 2022 $ 64,700 $ — $ — $ 64,700 Term Loan, secured, due April 2024 968,756 (22,498 ) — 946,258 Second Lien Notes, secured, due July 2024 583,853 — 203,883 787,736 6.875% Notes, unsecured, due April 2022 150,439 (11,146 ) — 139,293 7.125% Notes, unsecured, due April 2025 225,000 (12,777 ) — 212,223 Total debt, net $ 1,992,748 $ (46,421 ) $ 203,883 $ 2,150,210 (1) Includes PIK interest on the Term Loan and Second Lien Notes of $1.1 million and $11.8 million, respectively. (2) Deferred financing costs related to the Revolving Credit Facility are reported within Other assets on the condensed consolidated balance sheet, rather than as a reduction of the carrying amount of long-term debt. Credit Agreement. On April 12, 2017, Ultra Resources entered into the Credit Agreement, as the borrower, with the Company and UPE, as parent guarantors, Bank of Montreal, as administrative agent (the “RBL Administrative Agent”), and the other lenders party thereto from time to time (collectively, the “RBL Lenders”), providing for a revolving credit facility (the “Revolving Credit Facility”) subject to a borrowing base redetermination, which limits the aggregate amount of first lien debt under the Revolving Credit Facility and Term Loan Agreement. As of March 31, 2020, Ultra Resources had zero outstanding borrowings under the Revolving Credit Facility. The Company had $10.2 million of outstanding letters of credit. Total commitments under the Revolving Credit Facility were $100 million. As a result of the commencement of the Chapter 11 Cases, the Company is no longer in compliance with the covenants under the Credit Agreement and the lender’s commitments under the Credit Agreement have been terminated. The Company is therefore unable to make additional borrowings or issue additional letters of credit under the Credit Agreement. In February 2020, Ultra Resources entered into a Sixth Amendment to the Credit Agreement (the “Sixth Amendment”) with the RBL Administrative Agent and the RBL Lenders party thereto. Pursuant to the Sixth Amendment and the spring 2020 borrowing base redetermination, both of which were completed in February 2020, the Borrowing Base (as defined in the Credit Agreement) was reduced, effective April 1, 2020, to $1.075 billion, with $100 million attributed to the Revolving Credit Facility. As described in previous periodic reports, the commitment amount for the Revolving Credit Facility was reduced from $200 million to $120 million on February 29, 2020 based on the Fifth Amendment to the Credit agreement, and then from $120 million to $100 million, as established by the Sixth Amendment. Also included in the Sixth Amendment was the reduction of the anti-cash hoarding amount to $15 million and a provision to complete the borrowing base redetermination quarterly. Prior to default and as stayed by the relief provided by the filing of the Chapter 11 Cases, t he Revolving Credit Facility has $35.0 million of the commitments available for the issuance of letters of credit. The Revolving Credit Facility bears interest either at a rate equal to (a) a customary London interbank offered rate plus an applicable margin that varies from 250 to 350 basis points or (b) the base rate plus an applicable margin that varies from 150 to 250 basis points based upon the borrowing base utilization grid. The applicable margin increases by 25 basis points in the event the Company’s consolidated net leverage ratio, as defined, exceeds 4.00 to 1.00. Ultra Resources is required to pay a commitment fee on the average daily unused portion of the Revolving Credit Facility, of 50 basis points. Ultra Resources is also required to pay customary letter of credit and fronting fees. The Revolving Credit Facility’s original maturity date is January 12, 2022; however, if the Plan is confirmed the Revolving Credit Facility will terminate in connection with the Company’s emergence from bankruptcy. The Credit Agreement established a maximum capital expenditure provision and other affirmative and negative covenants which are no longer applicable under the mandatory stay order effected by the Chapter 11 filing. The affirmative and negative covenants include compliance with laws (including environmental laws, ERISA and anti-corruption laws), delivery of quarterly and annual financial statements and oil and gas engineering reports, maintenance and operation of property (including oil and gas properties), restrictions on the incurrence of liens, indebtedness, asset dispositions, fundamental changes, restricted payments and other customary covenants. Refer to Note 6 – Debt in the 2019 Form 10-K for additional details on the terms of the Revolving Credit Facility. Term Loan. On April 12, 2017, Ultra Resources entered into the Term Loan Agreement, as borrower, with the Company and UPE, as parent guarantors, Barclays Bank PLC, as administrative agent, and with the other lenders party thereto from time to time (collectively, the “Term Loan Lenders”) providing for a term loan credit facility. As of March 31, 2020, Ultra Resources had a balance of approximately $966.3 million in borrowings, including $1.1 million of PIK interest. The administrative and collateral agent responsibilities were transferred to WTNA on May 14, 2020. Subject to the stay order referenced previously, borrowings under the Term Loan Agreement bear interest at a rate equal to either (a) a customary London interbank offered rate plus 400 basis points or (b) the base rate plus 300 basis points, in each case, of which 25 basis points of the applicable margin is payable-in-kind (“PIK”) solely upon election by Ultra Resources. During 2019, the Company has elected the PIK option for several of its selected interest payments. In the third quarter 2019, the Company began electing not to utilize this PIK option. Prior to default, the borrowings under the Term Loan Agreement amortized in equal quarterly installments in aggregate annual amounts equal to 0.25% of the initial aggregate principal amount. The stated maturity date of the Term Loan Agreement is April 12, 2024; however, the Term Loan Agreement and its maturity date will be impacted by the final resolution of the Chapter 11 Cases. Other provisions of the Term Loan have been disclosed in previous regulatory filings and have been deleted from this filing as the compliance elements of the Term Loan are stayed by the bankruptcy filing under the Chapter 11 Cases. Refer to Note 6 – Debt in the 2019 Form 10-K for additional details on the terms of the Term Loan Agreement. Second Lien Notes. As of March 31, 2020, Ultra Resources had approximately $586.8 million, including $14.7 million of PIK interest, in outstanding borrowings of the Second Lien Notes pursuant to the Indenture, dated December 21, 2018 (the “Second Lien Notes Indenture”), with Ultra Resources, as issuer, the Company and its other subsidiaries, as guarantors, and WTNA, as trustee and collateral agent. The trustee and collateral agent responsibilities were transferred to US Bank, N.A. on May 14, 2020. The Second Lien Notes are senior secured obligations of Ultra Resources and rank senior in right of payment to all of its existing and future unsecured senior debt, to the extent of the value of the collateral pledged under the Second Lien Notes Indenture and related collateral arrangements, senior in right of payment to all of its future subordinated debt, and junior in right of payment to all of its existing and future secured debt of senior priority, to the extent of the value of the collateral pledged thereby. The Second Lien Notes are secured by second priority security interests in substantially all assets of the Company. Payment by Ultra Resources of all amounts due on or in respect of the Second Lien Notes and the performance of Ultra Resources under the Indenture are initially guaranteed by the Company. Subject to the stay order previously described, i nterest on the Second Lien Notes accrued at (i) an annual rate of 9.00% payable in cash and (ii) an annual rate of 2.00% PIK. The cash interest payment dates for the Second Lien Notes were January 15 and July 15 of each year, commencing in July 2019. The Company has accounted for such PIK interest as an increase to the principal outstanding. The Second Lien Notes have a stated maturity date of July 12, 2024; however, the Second Lien Notes and their maturity date will be impacted by the final resolution of the Chapter 11 Cases. Other provisions of the Second Lien Notes have been disclosed in previous filings and have been deleted from this filing as compliance elements of the Second Lien Notes are stayed by the bankruptcy filing under the Chapter 11 Cases. Refer to Note 6 – Debt in the 2019 Form 10-K for additional details on the terms of the Second Lien Notes. Senior Unsecured Notes . At March 31, 2020, Ultra Resources had approximately $150.4 million of the 2022 Notes outstanding and $225.0 million of the 2025 Notes outstanding. The Unsecured Notes are treated as a single class of securities under the Unsecured Notes Indenture. UMB Bank, N.A. is now serving as the trustee for the Unsecured Notes Indenture. Prior to default, t he 2022 Notes were scheduled to mature on April 15, 2022. Interest on the 2022 Notes accrued at an annual rate of 6.875% and interest payment dates for the 2022 Notes were April 15 and October 15 of each year. DIP Credit Agreement . In connection with the RSA and the Chapter 11 Cases, Ultra Resources entered into the DIP Credit Agreement. The DIP Credit Agreement provides for the DIP Facility. Ultra intends to use proceeds of the DIP Facility, among other things: (1) to pay interest, fees, costs and expenses related to the loans thereunder, (2) to pay the fees, costs and expenses of the estate professionals retained in the Chapter 11 Cases and approved by the Court, (3) to pay the fees, costs, disbursements and expenses of the Consenting Term Lenders, (4) to make all permitted payments of costs of administration of the Chapter 11 Cases, (5) to pay such prepetition expenses as are consented to in writing by the Required Lenders (as defined in the DIP Credit Agreement) and approved by the Court, (6) to satisfy any adequate protection obligations owing under the DIP Orders (as defined in the RSA); and (7) for general corporate and working capital purposes of the Debtors during the Chapter 11 Cases. The DIP Facility bears an interest rate of LIBOR plus 100 basis points, subject to a LIBOR floor of 1.0%. Unutilized fees are 50 basis points and the upfront fees were $0.4 million. The DIP Facility is subject to certain affirmative and negative covenants, including, among other covenants the Company believes to be customary in debtor-in-possession financings, reporting by the Filing Subsidiaries in the form of a rolling 13-week budget and a weekly report with a reasonably detailed written explanation of all material variances from the budget. |
Share Based Compensation
Share Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share Based Compensation | 7. SHARE BASED COMPENSATION: Valuation and Expense Information For the Three Months Ended March 31, 2020 2019 Total cost of share-based payment plans $ 1,231 $ 1,127 Amounts capitalized in oil and gas properties and equipment $ 51 $ 286 Amounts charged against income, before income tax benefit $ 1,180 $ 841 Amount of related income tax benefit recognized in income before valuation allowance $ 248 $ 177 Performance Share Plans : 2017 Stock Incentive Plan. In April 2017, the Ultra Petroleum Corp. 2017 Stock Incentive Plan (“2017 Stock Incentive Plan”) was established by our board of directors (the “Board”) pursuant to which 7.5% of the equity in the Company (on a fully-diluted/fully-distributed basis) is reserved for grants to be made from time to time to the directors, officers, employees, and consultants of the Company. In March 2019, management incentive plan grants were exchanged for new equity awards of time-based and performance-based restricted stock units. The Company evaluated the cancellation of an outstanding award of stock-based compensation followed by the issuance of a replacement award under ASC 718. For this modification, the fair value of the award is assessed both prior to modification and after modification. Per ASC 718, if the fair value after modification exceeds the fair value prior to modification, incremental expense is generated and recognized over the remaining vesting period. Long Term Incentive Awards. In 2018 and March 2019, the Board approved long-term incentive awards under the 2017 Stock Incentive Plan 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. The awards cover a performance period of three years and include time-based and performance-based measures established by the Board at the beginning of the three-year period. Stock-Based Compensation Cost : Market-Based Condition Awards. When vesting of an award of stock-based compensation is dependent, at least in part, on the value of a company’s total equity, for purposes of FASB ASC 718, the award is considered to be subject to a “market condition”. Because the Company’s total equity value is a component of its enterprise value, the awards based on enterprise value are considered to be subject to a market condition. Unlike the valuation of an award that is subject to a service condition (i.e., time vested awards) or a performance condition that is not related to stock price, FASB ASC 718 requires the impact of the market condition to be considered when estimating the fair value of the award. As a result, we have used a Monte Carlo simulation model to estimate the fair value of the awards that include a market condition. FASB ASC 718 requires the expense for an award of stock-based compensation that is subject to a market condition that can be attained at any point during the performance period to be recognized over the shorter of (a) the period between the date of grant and the date the market condition is attained, and (b) the award’s derived service period. For purposes of FASB ASC 718, the derived service period represents the duration of the median of the distribution of share price paths on which the market condition is satisfied. That median is the middle share price path (the midpoint of the distribution of paths within the model) on which the market condition is satisfied. The duration is the period of time from the service inception date to the expected date of market condition satisfaction. Compensation expense is recognized regardless of whether the market condition is actually satisfied. Expense. The accounting for existing share-based compensation awards will continue throughout the period covered by the Chapter 11 Cases. For the three months ended March 31, 2020, the Company recognized $1.2 million in pre-tax compensation expense, which is included within General and administrative expenses on the condensed consolidated statement of operations. During the three months ended March 31, 2019, the Company recognized $0.8 million in pre-tax compensation expense. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES: The Company’s overall effective tax rate on pre-tax income was different than the statutory rate of 21% due primarily to the adjustment of the valuation allowances against the deferred tax assets. The Company has a valuation allowance recorded against all deferred tax assets as of March 31, 2020. Some or all of this valuation allowance may be reversed in future periods against future income. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. Further guidance and clarifications continue to be issued regarding the regulations and provisions of the Tax Act. The Company will continue to monitor these new regulations and analyze their applicability and impact on the Company. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The Company continues to examine the impact that the CARES Act may have on its business but does not expect the impact to be material. The future availability of U.S. federal income tax attributes associated with existing net operating loss carryforwards, interest deduction carryforwards, and other tax attributes of the Company will be affected by the ultimate outcome of the Chapter 11 Cases. Generally speaking, the equitization and termination of indebtedness will result in cancelation of indebtedness income (“CODI”). While anticipated CODI will not result in an immediate tax liability to the Company, such CODI will result in a reduction of our tax attributes. Additionally, the “ownership change” that will result, from the anticipated equitization will, under section 382 of the Internal Revenue Code of 1986, as amended, result in a significant limitation being imposed on our ability to utilize certain tax attributes, unless we are able to, and do not elect to, utilize section 382(l)(5) of the Internal Revenue Code of 1986. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 9. 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. The prices we receive for our production depend on many factors outside of our control, including volatility in the differences between product prices at sales points and the applicable index price. 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 cash flows supporting the Company’s operations and capital investment program. These types of instruments may include fixed price swaps, costless collars, deferred premium puts or basis differential swaps. These contracts are financial instruments, and do not require or allow for physical delivery of the hedged commodity. While mitigating the effects of fluctuating commodity prices, these derivative contracts may limit the benefits we would otherwise receive from increases in commodity prices above the fixed hedge prices. Under the Revolving Credit Facility, t he Company was subject to minimum hedging requirements through As a result of the Chapter 11 filing and while in bankruptcy, the terms of the DIP facility and the exit revolving credit facility commitment filed with the Plan limits the Company’s ability to enter into hedges for no more than 25% and 15% of its projected monthly proved developed oil and gas reserve projections in 2020 and 2021, respectively. Following the Company’s emergence from bankruptcy, the terms of the exit revolving credit facility will require the Company to have a rolling hedging requirement, based on the most recently delivered reserve report, of 33% of forecast natural gas production for the immediately succeeding twelve-month period, plus a minimum of 25% of forecast natural gas production for the immediate succeeding six-month period thereafter. Fair Value of Commodity Derivatives: The Company follows FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). The Company does not apply hedge accounting to any of its derivative instruments. Instead, in accordance with ASC 815 the derivative contracts are recorded at fair value as derivative assets and liabilities on the condensed consolidated balance sheets and the associated unrealized gains and losses are recorded as current income or expense on the condensed consolidated statements of operations. The Company does not offset the value of its derivative arrangements with the same counterparty. Unrealized gains or losses on commodity derivatives represent the non-cash change in the fair value of these derivative instruments and do not impact operating cash flows on the condensed consolidated statements of cash flows . Commodity Derivative Contracts: At March 31, 2020, the Company had open commodity derivative contracts to manage commodity price risks as presented in the table below. For the fixed price swaps, the Company receives the fixed price for the contract and pays the variable price to the counterparty. For the basis swaps, the Company receives a fixed price for the difference between two sales points for a specified commodity volume over a specified time period. For the collars, the Company pays the counterparty if the market price is above the ceiling price and the counterparty pays if the market price is below the floor price on a notional quantity. For deferred premium puts, the Company pays the deferred premium in the month of settlement. To the extent the market price is below the put price, the counterparty owes the Company the difference between the market price and put price in the period of settlement. The reference prices of these commodity derivative contracts are typically referenced to index prices as published by independent third parties . Refer to Note 10 – Fair Value Measurements for more information regarding the fair value of the Company’s derivative instruments. The table below reflects the commodity derivative contracts that were outstanding as of March 31, 2020. Subsequent to March 31, 2020, the Company received $ 8.3 from the fair values as of March 31, 2020, due to different commodity prices at the time of settlement. Type/Year Index Total Volumes Weighted Average Price per Unit Fair Value - March 31, 2020 (in millions) Asset (Liability) Crude oil fixed price swaps (Bbl) ($/Bbl) 2020 (April through September) NYMEX-WTI 0.2 $ 59.79 $ 7,960 Type/Year Index Total Volumes Weighted Average Floor Price ($/MMBTU) Weighted Average Ceiling Price ($/MMBTU) Fair Value - March 31, 2020 (in millions) Asset (Liability) Natural gas collars (Mmbtu) 2020 (April through December) NYMEX 57.4 $ 2.39 $ 2.87 $ 26,255 2021 NYMEX 7.2 $ 2.46 $ 3.05 $ (180 ) Natural gas deferred premium put options (1) (Mmbtu) 2020 (April through December) NYMEX 13.4 $ 2.42 N/A $ 5,360 (1) The natural gas deferred premium put options include an average deferred premium cost of $0.13. The following table summarizes the pre-tax realized and unrealized gain (loss) the Company recognized related to its derivative instruments in the condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019: For the Three Months Ended March 31, Commodity Derivatives (in thousands): 2020 2019 Realized gain on commodity derivatives - natural gas (1) $ 11,452 $ (81,203 ) Realized gain on commodity derivatives - oil (1) 4,897 2,572 Unrealized gain on commodity derivatives (1) 27,945 14,292 Total gain (loss) on commodity derivatives $ 44,294 $ (64,339 ) (1) Included in Gain (Loss) on commodity derivatives in the condensed consolidated statements of operations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. 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 measurements 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 liabilities 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 derivatives such as over-the-counter forwards and swaps. Level 3 : Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability. The valuation assumptions the Company has used to measure the fair value of its commodity derivatives were observable inputs based on market data obtained from independent sources and are considered Level 2 inputs (quoted prices for similar assets, liabilities (adjusted) and market-corroborated inputs). Level 1 Level 2 Level 3 Total Assets: Current derivative asset $ — $ 44,261 $ — $ 44,261 Total derivative instruments $ — $ 44,261 $ — $ 44,261 Liabilities: Current derivative liability $ — $ 4,866 $ — $ 4,866 Total derivative instruments $ — $ 4,866 $ — $ 4,866 The Company entered into commodity derivative contracts and as a result, we expose ourselves to counterparty credit risk. Credit risk is the potential failure of the counterparty to perform under the terms of a derivative contract. In order to minimize our credit risk in derivative instruments, we (i) enter into derivative contracts with counterparties that our management has deemed credit worthy as competent and competitive market makers and (ii) routinely monitor and review the credit of our counterparties. In addition, each of our current counterparties are lenders under our Revolving Credit Facility. We believe that all of our counterparties are of substantial credit quality. Other than as provided in our Revolving Credit Facility, we are not required to provide credit support or collateral to any of our counterparties under our derivative contracts, nor are they required to provide credit support to us. As of March 31, 2020, we did not have any past-due receivables from, or payables to, any of the counterparties of our derivative contracts. Refer to Note 9 – Derivative Financial Instruments for additional details on our derivative financial instruments. Assets and Liabilities Measured on a Non-Recurring Basis The Company uses fair value to determine the value of its asset retirement obligations. The inputs used to determine such fair value under the expected present value technique are primarily based upon internal estimates prepared by reservoir engineers for costs of dismantlement, removal, site reclamation and similar activities associated with the Company’s oil and gas properties and would be classified Level 3 inputs. 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 Condensed Consolidated Balance Sheets for cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount of floating-rate debt approximates fair value because the interest rates are variable and reflective of market rates. Financial Instruments March 31, 2020 December 31, 2019 Principal Estimated Principal Estimated repayment obligation Fair Value repayment obligation Fair Value Credit Facility, secured, due January 2022 $ - $ - $ 64,700 $ 64,700 Term Loan, secured, due April 2024 966,319 396,191 968,756 566,723 Second Lien Notes, secured, due July 2024 586,770 44,008 583,853 86,994 6.875% Notes, unsecured, due April 2022, issued 2017 150,439 16,172 150,439 18,805 7.125% Notes, unsecured, due April 2025, issued 2017 225,000 16,598 225,000 15,750 Total debt $ 1,928,528 $ 472,969 $ 1,992,748 $ 752,972 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 11. COMMITMENTS AND CONTINGENCIES: Chapter 11 Proceedings On May 14, 2020, the Debtors filed the Chapter 11 Cases seeking relief under the Bankruptcy Code. The Company expects to continue operations in the normal course for the duration of the Chapter 11 Cases. In addition, commencement of the Chapter 11 Cases automatically stayed all of the proceedings and actions against the Company (other than regulatory enforcement matters), including those noted below. For more information on the Chapter 11 Cases and related matters, refer to the Introductory Note – Voluntary Reorganization Under Chapter 11 and Note 6 – Debt. Litigation Matters Pending Claims – Ultra Resources Indebtedness On April 29, 2016, the Company and its subsidiaries filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the Court. Our 2016 Chapter 11 cases were jointly administered under the caption In re Ultra Petroleum Corp. Debtors’ Second Amended Joint Chapter 11 Plan of Reorganization The Prior Plan provided for the treatment of claims against our bankruptcy estates, including claims for prepetition liabilities that have not otherwise been satisfied or addressed before we emerged from Chapter 11 proceedings. The claims resolution process associated with our Chapter 11 proceedings is on-going, and we expect it to continue for an indefinite period of time. During our previous bankruptcy proceedings in 2016 and 2017, many holders of this indebtedness filed proofs of claim with the Court, asserting claims for the outstanding balance of the indebtedness, unpaid prepetition interest, unpaid postpetition interest (including interest at the default rates under the prepetition debt agreements), make-whole amounts, and other fees and obligations allegedly arising under the prepetition debt agreements. As previously disclosed, in connection with our emergence from bankruptcy and in accordance with the Prior Plan, all of our obligations with respect to Ultra Resources prepetition indebtedness and the associated debt agreements were cancelled, except to the limited extent expressly set forth in the Prior Plan, and the holders of claims related to the indebtedness received payment in full of allowed claims (including with respect to outstanding principal, unpaid prepetition interest, and certain other prepetition fees and obligations arising under the debt agreements). In connection with the confirmation and consummation of the Prior Plan, we entered into a stipulation with the claimants pursuant to which we agreed to establish and fund a $400.0 million reserve account after the Company’s emergence from bankruptcy, pending resolution of make-whole and postpetition interest claims. On April 14, 2017, we funded the account. Following our emergence from bankruptcy, we continued to dispute the claims made by holders of the Ultra Resources’ indebtedness for certain make-whole amounts and postpetition interest at the default rates provided for in the debt agreements. On September 22, 2017, the Court denied the Company’s objection to the pending make-whole and postpetition interest claims. On October 6, 2017, the Court entered an order requiring the Company to distribute amounts attributable to the disputed claims to the applicable parties. Pursuant to the order, on October 12, 2017, the Company distributed $399.0 million from the reserve fund to the parties asserting the make-whole and postpetition interest claims and $1.3 million (the balance remaining after distributions to the parties asserting claims) was returned to the Company. The disbursement of $399.0 million was comprised of $223.8 million representing the fees owed under the make-whole claims and $175.2 million representing postpetition interest at the default rate. The Company appealed the court order denying its objections to these claims to the U.S. Court of Appeals for the Fifth Circuit (the “Appellate Court”). During the fourth quarter of 2018, the Company entered into settlement agreements (collectively, the “Settlement Agreements”) with holders of certain claims related to Ultra Resources’ prepetition indebtedness (the “Claimants”) pursuant to which the parties agreed to settle the pending disputes between the Claimants and the Company. Under the terms of the Settlement Agreements, the Claimants collectively agreed to pay approximately $16.4 million to the Company. On January 17, 2019, the Appellate Court issued an opinion vacating the order of the Court that had denied the Company’s objection to the asserted make-whole and post-petition interest claims and remanding the matter and those determinations to the Court for further reconsideration. On January 31, 2019, the holders of these claims filed a petition for rehearing en banc. During 2019, the Company entered into additional settlement agreements with holders of certain make-whole and post-petition interest claims. Pursuant to these settlements, the parties agreed to settle the pending disputes between such holders and the Company, and the holders collectively agreed to pay approximately $13.5 million to the Company. As of March 31, 2020, there is approximately $240 million of claims subject to the Appellate Court decision. It is not possible to determine the ultimate disposition of these matters at this time. Other Claims We are also party to various disputes with respect to certain overriding royalty and net profits interests in certain of our operated leases in the Pinedale field. At this time, no determination of the outcome of these claims can be made, and we cannot reasonably estimate the potential impact of these claims. We are defending these cases vigorously, and we expect these claims to be resolved in our Chapter 11 proceedings. In addition, we are currently involved in various routine disputes and allegations incidental to our business operations. While it is not possible to determine the ultimate disposition of these matters, we believe the Company has adequately reserved for such items where it has been determined that a liability is probable and is reasonably estimable. Additionally, we believe that resolution of all such additional pending or threatened litigation is not likely to have a material adverse effect on our financial position, results of operations, or cash flows. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. SUBSEQUENT EVENTS: As previously mentioned, the Company filed for bankruptcy protection under Chapter 11 on May 14, 2020. For more information on the Chapter 11 Cases and related matters, refer to the Introductory Note – Voluntary Reorganization under Chapter 11 and Note 6 – Debt in the notes to the unaudited condensed consolidated financial statements. The Company has evaluated the period subsequent to March 31, 2020, for material events that did not exist at the balance sheet date but arose after that date and determined that no additional subsequent events arose that should be disclosed in order to keep the financial statements from being misleading, except as otherwise disclosed herein |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) on a going concern basis for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ended December 31, 2020. |
Significant Accounting Policies | S ignificant Accounting Policies: |
Reclassifications | Reclassifications: Certain amounts in the financial statements of prior periods have been reclassified to conform to the current period financial statement presentation. |
Reorganization Accounting | Reorganization Accounting: Effective May 14, 2020, as a result of the filing of the Chapter 11 Cases, the Company began accounting and reporting according to FASB ASC Topic 852 – , which specifies the accounting and financial reporting requirements for entities reorganizing through chapter 11 bankruptcy proceedings. These requirements include distinguishing transactions associated with the reorganization separate from activities related to the ongoing operations of the business. |
New Accounting Pronouncements | New Accounting Pronouncements: From time to time, the Financial Accounting Standards Board (“FASB”) or other standards setting bodies issue new accounting pronouncements. Updates to the FASB Accounting Standards Codification (“ASC”) are communicated through issuance of an Accounting Standards Update (“ASU”). Unless otherwise discussed, we believe that the impact of recently issued guidance, whether adopted or to be adopted in the future, is not expected to have a material impact on the consolidated financial statements upon adoption. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted : Financial Instruments. In June 2016, The FASB issued ASU 2016-13, (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This ASU changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for the Company for starting January 1, 2023. The Company is currently assessing the impact of ASU 2016-13 on its consolidated financial statements. Income Taxes. In December 2019, the FASB issued authoritative guidance intended to simplify the accounting for income taxes (ASU 2019-12, This guidance eliminates certain exceptions to the general approach to the income tax accounting model and adds new guidance to reduce the complexity in accounting for income taxes. This guidance is effective for annual periods after December 15, 2020, including interim periods within those annual periods. We are currently evaluating the potential impact of this guidance on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Other Current Assets (Tables)
Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets | The following table summarizes the major components of Other current assets included on the condensed consolidated balance sheet: March 31, December 31, 2020 2019 Deposits and retainers $ 526 $ 651 Prepaids and others 1,442 1,087 Crude oil 958 1,032 Pipe and production equipment 4,985 7,976 Total Other current assets $ 7,911 $ 10,746 |
Oil and Gas Properties (Tables)
Oil and Gas Properties (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Oil And Gas Property [Abstract] | |
Schedule of Oil and Gas Properties | March 31, December 31, 2020 2019 Proven properties: Acquisition, equipment, exploration, drilling and abandonment costs $ 11,820,726 $ 11,820,392 Less: Accumulated depletion, depreciation, amortization, and impairment (10,553,983 ) (10,267,973 ) Total Oil and gas properties, net $ 1,266,743 $ 1,552,419 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Components of Basic and Diluted Net Income Per Common Share | The following table provides a reconciliation of components of basic and diluted net income per common share: For the Three Months Ended March 31, 2020 2019 (Share amounts in 000's) Net income (loss) $ (217,605 ) $ 40,674 Weighted average common shares outstanding - basic 198,333 197,383 Effect of dilutive instruments — 418 Weighted average common shares outstanding - diluted 198,333 197,801 Basic $ (1.10 ) $ 0.21 Diluted $ (1.10 ) $ 0.21 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Debt Instruments | The following tables summarize the Company’s debt instruments as of March 31, 2020, and December 31, 2019: March 31, 2020 Principal repayment obligation (1) Unamortized DFC and discounts (2)(3) Unamortized premium (3) Carrying value Credit Facility, secured, due January 2022 $ — $ — $ — $ — Term Loan, secured, due April 2024 966,319 (21,359 ) — 944,960 Second Lien Notes, secured, due July 2024 586,770 — 193,237 780,007 6.875% Notes, unsecured, due April 2022 150,439 (10,077 ) — 140,362 7.125% Notes, unsecured, due April 2025 225,000 (12,294 ) — 212,706 Total debt, net $ 1,928,528 $ (43,730 ) $ 193,237 $ 2,078,035 (1) Includes PIK interest on the Term Loan and Second Lien Notes of $1.1 million and $14.7 million, respectively. (2) Deferred financing costs related to the Revolving Credit Facility are reported within Other assets on the condensed consolidated balance sheet, rather than as a reduction of the carrying amount of long-term debt. (3) As a result of the Bankruptcy Petitions filed on May 14, 2020, subsequent to March 31, 2020, the Company wrote off approximately $144.0 million of unamortized net deferred financing costs, discounts, and premium, net. December 31, 2019 Principal repayment obligation (1) Unamortized DFC and discounts (2) Unamortized premium Carrying value Credit Facility, secured, due January 2022 $ 64,700 $ — $ — $ 64,700 Term Loan, secured, due April 2024 968,756 (22,498 ) — 946,258 Second Lien Notes, secured, due July 2024 583,853 — 203,883 787,736 6.875% Notes, unsecured, due April 2022 150,439 (11,146 ) — 139,293 7.125% Notes, unsecured, due April 2025 225,000 (12,777 ) — 212,223 Total debt, net $ 1,992,748 $ (46,421 ) $ 203,883 $ 2,150,210 (1) Includes PIK interest on the Term Loan and Second Lien Notes of $1.1 million and $11.8 million, respectively. (2) Deferred financing costs related to the Revolving Credit Facility are reported within Other assets on the condensed consolidated balance sheet, rather than as a reduction of the carrying amount of long-term debt. |
Share Based Compensation (Table
Share Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Valuation and Expense Information | Valuation and Expense Information For the Three Months Ended March 31, 2020 2019 Total cost of share-based payment plans $ 1,231 $ 1,127 Amounts capitalized in oil and gas properties and equipment $ 51 $ 286 Amounts charged against income, before income tax benefit $ 1,180 $ 841 Amount of related income tax benefit recognized in income before valuation allowance $ 248 $ 177 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Open Commodity Derivative Contracts | At March 31, 2020, Company had open commodity derivative contracts to manage commodity price risks as presented in the table below. Type/Year Index Total Volumes Weighted Average Price per Unit Fair Value - March 31, 2020 (in millions) Asset (Liability) Crude oil fixed price swaps (Bbl) ($/Bbl) 2020 (April through September) NYMEX-WTI 0.2 $ 59.79 $ 7,960 Type/Year Index Total Volumes Weighted Average Floor Price ($/MMBTU) Weighted Average Ceiling Price ($/MMBTU) Fair Value - March 31, 2020 (in millions) Asset (Liability) Natural gas collars (Mmbtu) 2020 (April through December) NYMEX 57.4 $ 2.39 $ 2.87 $ 26,255 2021 NYMEX 7.2 $ 2.46 $ 3.05 $ (180 ) Natural gas deferred premium put options (1) (Mmbtu) 2020 (April through December) NYMEX 13.4 $ 2.42 N/A $ 5,360 (1) The natural gas deferred premium put options include an average deferred premium cost of $0.13. |
Summary of Pre-tax Realized and Unrealized Gain (Loss) Recognized Related to Derivative Instruments | The following table summarizes the pre-tax realized and unrealized gain (loss) the Company recognized related to its derivative instruments in the condensed consolidated statements of operations for the three months ended March 31, 2020 and 2019: For the Three Months Ended March 31, Commodity Derivatives (in thousands): 2020 2019 Realized gain on commodity derivatives - natural gas (1) $ 11,452 $ (81,203 ) Realized gain on commodity derivatives - oil (1) 4,897 2,572 Unrealized gain on commodity derivatives (1) 27,945 14,292 Total gain (loss) on commodity derivatives $ 44,294 $ (64,339 ) (1) Included in Gain (Loss) on commodity derivatives in the condensed consolidated statements of operations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | Level 1 Level 2 Level 3 Total Assets: Current derivative asset $ — $ 44,261 $ — $ 44,261 Total derivative instruments $ — $ 44,261 $ — $ 44,261 Liabilities: Current derivative liability $ — $ 4,866 $ — $ 4,866 Total derivative instruments $ — $ 4,866 $ — $ 4,866 |
Carrying Values and Estimated Fair Values of Financial Instruments | March 31, 2020 December 31, 2019 Principal Estimated Principal Estimated repayment obligation Fair Value repayment obligation Fair Value Credit Facility, secured, due January 2022 $ - $ - $ 64,700 $ 64,700 Term Loan, secured, due April 2024 966,319 396,191 968,756 566,723 Second Lien Notes, secured, due July 2024 586,770 44,008 583,853 86,994 6.875% Notes, unsecured, due April 2022, issued 2017 150,439 16,172 150,439 18,805 7.125% Notes, unsecured, due April 2025, issued 2017 225,000 16,598 225,000 15,750 Total debt $ 1,928,528 $ 472,969 $ 1,992,748 $ 752,972 |
Voluntary Reorganization Unde_2
Voluntary Reorganization Under Chapter 11 (Details) - USD ($) | Dec. 21, 2018 | Apr. 12, 2017 | Mar. 31, 2020 | Dec. 31, 2019 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Petition date | May 14, 2020 | |||
Term loan | $ 2,078,035,000 | $ 2,150,210,000 | ||
Professional, advisory, consulting, and legal fees | $ 2,600,000 | |||
DIP Credit Facility [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Line of credit facility, description | In connection with the RSA and the Chapter 11 Cases, Ultra Resources entered into a senior secured super priority debtor-in-possession credit agreement (the “DIP Credit Agreement”), dated as of May 19, 2020, among Ultra Resources, as borrower, UPE and the other Filing Subsidiaries, as guarantors, WTNA, as administrative agent and collateral agent, and the lenders party thereto. The DIP Credit Agreement provides for a multi-draw term loan credit facility in an aggregate principal amount of $25 million (the “DIP Facility”). Ultra intends to use proceeds of the DIP Facility, among other things: (1) to pay interest, fees, costs and expenses related to the loans thereunder, (2) to pay the fees, costs and expenses of the estate professionals retained in the Chapter 11 Cases and approved by the Court, (3) to pay certain fees, costs, disbursements and expenses of the Consenting Term Lenders, (4) to make all permitted payments of costs of administration of the Chapter 11 Cases, (5) to pay such prepetition expenses as are consented to in writing by the Required Lenders (as defined in the DIP Credit Agreement) and approved by the Court, (6) to satisfy any adequate protection obligations owing under the DIP Orders (as defined in the RSA); and (7) for general corporate and working capital purposes of the Debtors during the Chapter 11 Cases | |||
Line of credit facility, initiation date | May 19, 2020 | |||
Line of credit facility, principal amount | $ 25,000,000 | |||
Restructuring Support Agreement [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Debtor-in possession financing, borrowings outstanding | 25,000,000 | |||
Capital investments | 85,000,000 | |||
Prepayment penality | 0 | |||
Line of credit facility, commitment amount | 60,000,000 | |||
Restructuring Support Agreement [Member] | Maximum | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Term loan | 5,000,000 | |||
Restructuring Support Agreement [Member] | Revolving Credit Facility | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 100,000,000 | |||
Restructuring Support Agreement [Member] | Revolving Credit Facility | Maximum | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Letters of credit outstanding, amount | $ 15,000,000 | |||
Senior Secured Second Lien Notes due July 2024 | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Senior notes due date | Jul. 31, 2024 | |||
Debt issued, interest rate | 9.00% | |||
Debt issued, paid in kind interest rate percentage | 2.00% | |||
6.875% Senior Notes due April 2022 | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Senior notes due date | Apr. 30, 2022 | |||
Stated interest rate | 6.875% | |||
7.125% Senior Unsecured Notes due April 2025 | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Senior notes due date | Apr. 30, 2025 | |||
Stated interest rate | 7.125% | |||
Credit Agreement | Restructuring Support Agreement [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Aggregate loan principal outstanding percentage | 100.00% | |||
Term Loan [Member] | Restructuring Support Agreement [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Aggregate loan principal outstanding percentage | 85.00% | |||
Second Lien Notes Indenture [Member] | Restructuring Support Agreement [Member] | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Aggregate loan principal outstanding percentage | 67.00% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue, practical expedient in ASC 606-10-50-14 | true |
Revenue, practical expedient in ASC 606-10-50-14(a), description | For our product sales that have a contract term greater than one year, we have utilized the practical expedient in ASC 606-10-50-14(a) which states that the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under these sales contracts, each unit of product generally represents a separate performance obligation; therefore, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other current assets | $ 7,911 | $ 10,746 |
Deposits And Retainers | ||
Other current assets | 526 | 651 |
Prepaids And Others | ||
Other current assets | 1,442 | 1,087 |
Crude Oil | ||
Other current assets | 958 | 1,032 |
Pipe And Production Equipment | ||
Other current assets | $ 4,985 | $ 7,976 |
Other Current Assets - Addition
Other Current Assets - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Other Current Assets [Abstract] | |
Write down of pipe and production equipment | $ 3,336 |
Oil and Gas Properties - Schedu
Oil and Gas Properties - Schedule of Oil and Gas Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Proven properties: | ||
Acquisition, equipment, exploration, drilling and abandonment costs | $ 11,820,726 | $ 11,820,392 |
Less: Accumulated depletion, depreciation, amortization, and impairment | (10,553,983) | (10,267,973) |
Total Oil and gas properties, net | $ 1,266,743 | $ 1,552,419 |
Oil and Gas Properties - Additi
Oil and Gas Properties - Additional Information (Details) - 3 months ended Mar. 31, 2020 $ in Thousands | USD ($) | Total | $ / Mcfe | $ / bbl |
Results Of Operations For Oil And Gas Producing Activities By Geographic Area [Line Items] | ||||
Crude oil and natural gas reserves discounted rate | 10.00% | |||
Base price of oil and gas | 2.07 | 55.35 | ||
Ceiling test write-down | $ 242,603 | |||
Natural Gas | ||||
Results Of Operations For Oil And Gas Producing Activities By Geographic Area [Line Items] | ||||
Percentage of decrease in price of natural gas | 15.00% | |||
Maximum | Oil Reserves | ||||
Results Of Operations For Oil And Gas Producing Activities By Geographic Area [Line Items] | ||||
Percentage of decrease in price of natural gas | 1.00% |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - Ultra Resources, Inc. - Exchange Agreement | Mar. 31, 2020d$ / shares |
Volume-weighted average price of the Common Shares for warrants exercise | $ / shares | $ / shares | $ 2.50 |
Number of consecutive trading days | d | 30 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Components of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (217,605) | $ 40,674 |
Weighted average common shares outstanding - basic | 198,333 | 197,383 |
Effect of dilutive instruments | 418 | |
Weighted average common shares outstanding - diluted | 198,333 | 197,801 |
Basic | $ (1.10) | $ 0.21 |
Diluted | $ (1.10) | $ 0.21 |
Debt - Summary of Debt Instrume
Debt - Summary of Debt Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Principal repayment obligation | $ 1,928,528 | $ 1,992,748 |
Unamortized DFC and discounts | (43,730) | (46,421) |
Unamortized premium | 193,237 | 203,883 |
Carrying value | 2,078,035 | 2,150,210 |
Credit Facility, Secured Due January 2022 | ||
Debt Instrument [Line Items] | ||
Principal repayment obligation | 64,700 | |
Carrying value | 64,700 | |
Term Loan, Secured, Due April 2024 | ||
Debt Instrument [Line Items] | ||
Principal repayment obligation | 966,319 | 968,756 |
Unamortized DFC and discounts | (21,359) | (22,498) |
Carrying value | 944,960 | 946,258 |
Second Lien Notes, Secured, Due July 2024 | ||
Debt Instrument [Line Items] | ||
Principal repayment obligation | 586,770 | 583,853 |
Unamortized premium | 193,237 | 203,883 |
Carrying value | 780,007 | 787,736 |
6.875% Unsecured Notes Due April 2022 | ||
Debt Instrument [Line Items] | ||
Principal repayment obligation | 150,439 | 150,439 |
Unamortized DFC and discounts | (10,077) | (11,146) |
Carrying value | 140,362 | 139,293 |
7.125% Unsecured Notes Due April 2025 | ||
Debt Instrument [Line Items] | ||
Principal repayment obligation | 225,000 | 225,000 |
Unamortized DFC and discounts | (12,294) | (12,777) |
Carrying value | $ 212,706 | $ 212,223 |
Debt - Summary of Debt Instru_2
Debt - Summary of Debt Instruments (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Payable-in-kind (“PIK”) interest payable | $ 2,917 | $ 3,183 | |
Unamortized deferred financing costs | $ 144,000 | ||
Credit Facility, Secured Due January 2022 | |||
Debt Instrument [Line Items] | |||
Maturity date | Jan. 12, 2022 | Jan. 12, 2022 | |
Term Loan, Secured, Due April 2024 | |||
Debt Instrument [Line Items] | |||
Maturity date | Apr. 12, 2024 | Apr. 12, 2024 | |
Payable-in-kind (“PIK”) interest payable | $ 1,100 | $ 1,100 | |
Second Lien Notes, Secured, Due July 2024 | |||
Debt Instrument [Line Items] | |||
Maturity date | Jul. 12, 2024 | Jul. 12, 2024 | |
Payable-in-kind (“PIK”) interest payable | $ 14,700 | $ 11,800 | |
6.875% Unsecured Notes Due April 2022 | |||
Debt Instrument [Line Items] | |||
Maturity date | Apr. 15, 2022 | Apr. 15, 2022 | |
Stated interest rate | 6.875% | 6.875% | |
7.125% Unsecured Notes Due April 2025 | |||
Debt Instrument [Line Items] | |||
Maturity date | Apr. 15, 2025 | Apr. 15, 2025 | |
Stated interest rate | 7.125% | 7.125% |
Debt - Ultra Resources, Inc. -
Debt - Ultra Resources, Inc. - Credit Agreement - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Apr. 01, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,928,528 | $ 1,992,748 | ||
Ultra Resources, Inc. | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 0 | |||
Ultra Resources, Inc. | Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 10,200 | |||
Ultra Resources, Inc. | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Credit facility, current borrowing capacity | 100,000 | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | ||||
Debt Instrument [Line Items] | ||||
Credit facility, current borrowing capacity | 200,000 | $ 120,000 | ||
Anti-cash hoarding provision | $ 15,000 | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Credit facility, current borrowing capacity | $ 100,000 | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Subsequent Event | Bank Of Montreal | ||||
Debt Instrument [Line Items] | ||||
Borrowing Base | 1,075,000 | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Subsequent Event | Barclays Bank PLC | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 100,000 | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Revolving Credit Facility | Bank Of Montreal | ||||
Debt Instrument [Line Items] | ||||
Minimum required interest coverage ratio, as percentage | 0.04% | |||
Interest rate description | The Revolving Credit Facility bears interest either at a rate equal to (a) a customary London interbank offered rate plus an applicable margin that varies from 250 to 350 basis points or (b) the base rate plus an applicable margin that varies from 150 to 250 basis points based upon the borrowing base utilization grid. The applicable margin increases by 25 basis points in the event the Company’s consolidated net leverage ratio, as defined, exceeds 4.00 to 1.00. | |||
Maturity date | Jan. 12, 2022 | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Revolving Credit Facility | Bank Of Montreal | LIBOR | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.50% | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Revolving Credit Facility | Bank Of Montreal | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 3.50% | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Revolving Credit Facility | Bank Of Montreal | Base Rate | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 1.50% | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Revolving Credit Facility | Bank Of Montreal | Base Rate | Maximum | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 2.50% | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Revolving Credit Facility | Bank Of Montreal | Net Leverage Ratio | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.25% | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Revolving Credit Facility | Bank Of Montreal | Commitment Fee | ||||
Debt Instrument [Line Items] | ||||
Variable rate | 0.50% | |||
Ultra Resources, Inc. | Credit Agreement Secured Due January Twenty Twenty Two | Letter of Credit | Bank Of Montreal | ||||
Debt Instrument [Line Items] | ||||
Amount of commitments available for the issuance of letters of credit | $ 35,000 |
Debt - Ultra Resources, Inc. _2
Debt - Ultra Resources, Inc. - Term Loan - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Principal repayment obligation | $ 1,928,528 | $ 1,992,748 | |
Payable-in-kind (“PIK”) interest payable | 2,917 | $ 3,183 | |
Ultra Resources, Inc. | Barclays Bank PLC | Term Loan Secured Due 2024 | |||
Debt Instrument [Line Items] | |||
Principal repayment obligation | 966,300 | ||
Payable-in-kind (“PIK”) interest payable | $ 1,100 | ||
Amortization of term loan, quarterly basis | 0.25% | ||
Maturity date | Apr. 12, 2024 | ||
Ultra Resources, Inc. | Barclays Bank PLC | Term Loan Secured Due 2024 | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable rate | 4.00% | ||
Ultra Resources, Inc. | Barclays Bank PLC | Term Loan Secured Due 2024 | Base Rate | |||
Debt Instrument [Line Items] | |||
Variable rate | 3.00% | ||
Ultra Resources, Inc. | Barclays Bank PLC | Term Loan Secured Due 2024 | Base Rate | Payment in Kind (PIK) Note | |||
Debt Instrument [Line Items] | |||
Variable rate | 0.25% |
Debt - Ultra Resources, Inc. _3
Debt - Ultra Resources, Inc. - Second Lien Notes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||
Payable-in-kind (“PIK”) interest payable | $ 2,917 | $ 3,183 |
Second Lien Notes, Secured, Due 2024 | Ultra Resources, Inc. | Exchange Agreement | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of debt issued on exchange | 586,800 | |
Payable-in-kind (“PIK”) interest payable | $ 14,700 | |
Debt issued, interest rate | 9.00% | |
Debt issued, paid in kind interest rate percentage | 2.00% | |
Interest payment terms | The cash interest payment dates for the Second Lien Notes were January 15 and July 15 of each year, commencing in July 2019. | |
Maturity date | Jul. 12, 2024 |
Debt - Ultra Resources, Inc. _4
Debt - Ultra Resources, Inc. - Unsecured Notes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Aggregate principal amounts outstanding | $ 1,928,528 | $ 1,992,748 |
Ultra Resources, Inc. | 6.875% Senior, Unsecured Notes Due 2022 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amounts outstanding | $ 150,400 | |
Interest payment terms | Prior to default, the 2022 Notes were scheduled to mature on April 15, 2022. Interest on the 2022 Notes accrued at an annual rate of 6.875% and interest payment dates for the 2022 Notes were April 15 and October 15 of each year. | |
Stated interest rate | 6.875% | |
Ultra Resources, Inc. | 7.125% Senior, Unsecured Notes Due 2025 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amounts outstanding | $ 225,000 | |
Interest payment terms | The 2025 Notes were scheduled to mature on April 15, 2025. Interest on the 2025 Notes accrued at an annual rate of 7.125% and interest payment dates for the 2025 Notes are April 15 and October 15 of each year. Interest was to be paid on the Unsecured Notes from the issue date until maturity. | |
Stated interest rate | 7.125% |
Debt - Ultra Resources, Inc. _5
Debt - Ultra Resources, Inc. - DIP Credit Agreement - Additional Information (Details) - Ultra Resources, Inc. - DIP Credit Agreement $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |
LIBOR floor | 1.00% |
Unutilized fees | 0.50% |
Upfront fees | $ 0.4 |
LIBOR | |
Debt Instrument [Line Items] | |
Variable rate | 1.00% |
Share Based Compensation - Sche
Share Based Compensation - Schedule of Valuation and Expense Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | ||
Total cost of share-based payment plans | $ 1,231 | $ 1,127 |
Amounts capitalized in oil and gas properties and equipment | 51 | 286 |
Amounts charged against income, before income tax benefit | 1,180 | 841 |
Amount of related income tax benefit recognized in income before valuation allowance | $ 248 | $ 177 |
Share Based Compensation - Addi
Share Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Apr. 12, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total cost of share based payment plans | $ 1,180 | $ 841 | |
Long Term Incentive Award | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Performance Shares | Stock Incentive Plan 2017 | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percent of equity reserved for directors, officers and other employees | 7.50% | ||
Stock-Based Compensation Cost | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total cost of share based payment plans | $ 800 | ||
Stock-Based Compensation Cost | General And Administrative Expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total cost of share based payment plans | $ 1,200 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Statutory tax rate | 21.00% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2021 | |
Derivative [Line Items] | ||||
Proceeds from monetization of derivative contracts | $ 12.8 | |||
Subsequent Event | ||||
Derivative [Line Items] | ||||
Proceeds from monetization of derivative contracts | $ 6.5 | $ 8.3 | ||
Revolving Credit Facility | ||||
Derivative [Line Items] | ||||
Maximum hedge percentage of scheduled production requirement per revolving credit facility | 25.00% | |||
Revolving Credit Facility | Natural Gas Sales | ||||
Derivative [Line Items] | ||||
Revolving credit facility of natural gas production for the immediately succeeding twelve-month period | 33.00% | |||
Revolving credit facility of natural gas production for the immediate succeeding six-month period thereafter | 25.00% | |||
Revolving Credit Facility | Scenario Forecast | ||||
Derivative [Line Items] | ||||
Maximum hedge percentage of scheduled production requirement per revolving credit facility | 15.00% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Open Commodity Derivative Contracts (Details) $ in Thousands, bbl in Millions, MMBTU in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)MMBTU$ / bbl$ / MMBTUbbl | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | ||
Fair Value Asset | $ 44,261 | $ 32,100 |
Fair Value (Liability) | $ (4,866) | $ (20,692) |
Commodity Derivative Contract Fixed Price Swaps | Crude Oil | ||
Derivative [Line Items] | ||
Type | Crude oil fixed price swaps | |
Commodity Derivative Contract Fixed Price Swaps One | Crude Oil | ||
Derivative [Line Items] | ||
Year | 2020 (April through September) | |
Index | NYMEX-WTI | |
Total Volumes | bbl | 0.2 | |
Weighted Average Price per Unit | $ / bbl | 59.79 | |
Fair Value Asset | $ 7,960 | |
Commodity Derivative Contract Collars | Natural Gas | ||
Derivative [Line Items] | ||
Type | Natural gas collars | |
Commodity Derivative Contract Collars One | Natural Gas | ||
Derivative [Line Items] | ||
Year | 2020 (April through December) | |
Index | NYMEX | |
Total Volumes | MMBTU | 57.4 | |
Weighted Average Floor Price | $ / MMBTU | 2.39 | |
Weighted Average Ceiling Price | $ / MMBTU | 2.87 | |
Fair Value Asset | $ 26,255 | |
Commodity Derivative Contract Collars Two | Natural Gas | ||
Derivative [Line Items] | ||
Year | 2021 | |
Index | NYMEX | |
Total Volumes | MMBTU | 7.2 | |
Weighted Average Floor Price | $ / MMBTU | 2.46 | |
Weighted Average Ceiling Price | $ / MMBTU | 3.05 | |
Fair Value (Liability) | $ (180) | |
Commodity Derivative Contract Deferred Premium Put Options | Natural Gas | ||
Derivative [Line Items] | ||
Type | Natural gas deferred premium put options | |
Commodity Derivative Contract Put Options One | Natural Gas | ||
Derivative [Line Items] | ||
Year | 2020 (April through December) | |
Index | NYMEX | |
Total Volumes | MMBTU | 13.4 | |
Weighted Average Floor Price | $ / MMBTU | 2.42 | |
Fair Value Asset | $ 5,360 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Open Commodity Derivative Contracts (Parenthetical) (Details) | Mar. 31, 2020$ / MMBTU |
Commodity Derivative Contract Deferred Premium Put Options | Natural Gas | |
Derivative [Line Items] | |
Average deferred premium cost | 0.13 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Pre-tax Realized and Unrealized Gain (Loss) Recognized Related to Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative [Line Items] | ||
Unrealized gain on commodity derivatives | $ 27,945 | $ 14,292 |
Total gain (loss) on commodity derivatives | 44,294 | (64,339) |
Commodity Derivative Contract | ||
Derivative [Line Items] | ||
Unrealized gain on commodity derivatives | 27,945 | 14,292 |
Total gain (loss) on commodity derivatives | 44,294 | (64,339) |
Commodity Derivative Contract | Natural Gas | ||
Derivative [Line Items] | ||
Realized gain (loss) on commodity derivatives | 11,452 | (81,203) |
Commodity Derivative Contract | Oil Reserves | ||
Derivative [Line Items] | ||
Realized gain (loss) on commodity derivatives | $ 4,897 | $ 2,572 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Current derivative asset | $ 44,261 | $ 32,100 |
Total derivative instruments | 44,261 | |
Current derivative liability | 4,866 | $ 20,692 |
Total derivative instruments | 4,866 | |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Current derivative asset | 44,261 | |
Total derivative instruments | 44,261 | |
Current derivative liability | 4,866 | |
Total derivative instruments | $ 4,866 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - Level 2 - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | $ 1,928,528 | $ 1,992,748 |
Estimated Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total debt | 472,969 | 752,972 |
Credit Facility, Secured Due January 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Credit facility | 64,700 | |
Credit Facility, Secured Due January 2022 | Estimated Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Credit facility | 64,700 | |
Term Loan, Secured, Due April 2024 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term loan | 966,319 | 968,756 |
Term Loan, Secured, Due April 2024 | Estimated Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Term loan | 396,191 | 566,723 |
Second Lien Notes, Secured, Due July 2024 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes payable | 586,770 | 583,853 |
Second Lien Notes, Secured, Due July 2024 | Estimated Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes payable | 44,008 | 86,994 |
6.875% Unsecured Notes Due April 2022 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes payable | 150,439 | 150,439 |
6.875% Unsecured Notes Due April 2022 | Estimated Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes payable | 16,172 | 18,805 |
7.125% Unsecured Notes Due April 2025 | Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes payable | 225,000 | 225,000 |
7.125% Unsecured Notes Due April 2025 | Estimated Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes payable | $ 16,598 | $ 15,750 |
Fair Value Measurements - Car_2
Fair Value Measurements - Carrying Values and Estimated Fair Values of Financial Instruments (Parenthetical) (Details) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Credit Facility, Secured Due January 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments maturity month and year | 2022-01 | |
Term Loan, Secured, Due April 2024 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments maturity month and year | 2024-04 | |
Second Lien Notes, Secured, Due July 2024 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments maturity month and year | 2024-07 | |
6.875% Unsecured Notes Due April 2022 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments maturity month and year | 2022-04 | |
Stated interest rate | 6.875% | 6.875% |
Issue date | 2017 | |
7.125% Unsecured Notes Due April 2025 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments maturity month and year | 2025-04 | |
Stated interest rate | 7.125% | 7.125% |
Issue date | 2017 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Oct. 06, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | Mar. 31, 2020 | Apr. 14, 2017 |
Loss Contingencies [Line Items] | |||||
Claims settled | $ 399 | ||||
Bankruptcy claims, undistributed amount returned | 1.3 | ||||
Bankruptcy claims amount of claims settled, make-whole fees | 223.8 | ||||
Bankruptcy claims amount of claims settled, postpetition interest | $ 175.2 | ||||
Claims subject to Appellate Court decision | $ 240 | ||||
Settlement Agreements | |||||
Loss Contingencies [Line Items] | |||||
Settlement agreement, amount claimants agreed to pay | $ 16.4 | $ 13.5 | |||
Indebtedness Claims | Notes holders | |||||
Loss Contingencies [Line Items] | |||||
Claim reserve account after emergence from bankruptcy | $ 400 |