Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ESTE | |
Entity Registrant Name | EARTHSTONE ENERGY INC | |
Entity Central Index Key | 10254 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 13,835,128 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $59,690 | $100,447 |
Accounts receivable: | ||
Oil, natural gas, and natural gas liquids revenues | 8,570 | 14,016 |
Joint interest billings and other | 7,109 | 9,417 |
Current derivative assets | 2,749 | 3,569 |
Prepaid expenses and other current assets | 1,209 | 1,578 |
Total current assets | 79,327 | 129,027 |
Oil and gas properties, successful efforts method: | ||
Proved properties | 334,766 | 317,006 |
Unproved properties | 78,113 | 76,791 |
Total oil and gas properties | 412,879 | 393,797 |
Accumulated depreciation, depletion, and amortization | -103,742 | -97,920 |
Net oil and gas properties | 309,137 | 295,877 |
Other noncurrent assets: | ||
Goodwill | 22,992 | 22,992 |
Office and other equipment, less accumulated depreciation of $591 and $474, respectively | 2,130 | 2,109 |
Land | 101 | 101 |
Other noncurrent assets | 1,272 | 1,282 |
TOTAL ASSETS | 414,959 | 451,388 |
Current liabilities: | ||
Accounts payable | 13,033 | 28,753 |
Accrued expenses | 14,559 | 20,529 |
Revenues and royalties payable | 8,634 | 17,364 |
Advances | 16,963 | 21,398 |
Asset retirement obligations | 335 | 408 |
Total current liabilities | 53,524 | 88,452 |
Noncurrent liabilities: | ||
Long-term debt | 11,191 | 11,191 |
Asset retirement obligations | 5,883 | 5,670 |
Deferred tax liability | 28,672 | 29,258 |
Other noncurrent liabilities | 275 | 289 |
Total noncurrent liabilities | 46,021 | 46,408 |
Total liabilities | 99,545 | 134,860 |
Commitments and Contingencies (Note 10) | ||
Equity: | ||
Preferred stock, $0.001 par value, 20,000,000 shares authorized; none issued or outstanding | ||
Common stock, $0.001 par value, 100,000,000 shares authorized; 13,835,128 shares issued and outstanding at March 31, 2015 and December 31, 2014 | 14 | 14 |
Additional paid-in capital | 358,086 | 358,086 |
Accumulated deficit | -42,226 | -41,112 |
Treasury stock, 15,414 shares at March 31, 2015 and December 31, 2014 | -460 | -460 |
Total equity | 315,414 | 316,528 |
TOTAL LIABILITIES AND EQUITY | $414,959 | $451,388 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Office and other equipment, accumulated depreciation | $591 | $474 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 13,835,128 | 13,835,128 |
Common stock, shares outstanding | 13,835,128 | 13,835,128 |
Treasury stock, shares | 15,414 | 15,414 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Oil, natural gas, and natural gas liquids revenues: | ||
Oil | $9,038 | $7,868 |
Natural gas | 1,530 | 2,753 |
Natural gas liquids | 674 | 956 |
Total oil, natural gas, and natural gas liquids revenues | 11,242 | 11,577 |
Gathering income | 78 | 109 |
Total revenues | 11,320 | 11,686 |
Production costs: | ||
Lease operating expense | 4,374 | 2,298 |
Severance taxes | 630 | 489 |
Re-engineering and workovers | 119 | 198 |
Depreciation, depletion, and amortization | 5,924 | 3,380 |
General and administrative expense | 2,571 | 1,412 |
Total operating costs and expenses | 13,618 | 7,777 |
(Loss) income from operations | -2,298 | 3,909 |
OTHER INCOME (EXPENSE) | ||
Interest expense, net | -169 | -145 |
Net gain (loss) on derivative contracts | 674 | -1,028 |
Other income, net | 94 | 4 |
Total other income (expense) | 599 | -1,169 |
(Loss) income before income taxes | -1,699 | 2,740 |
Income tax benefit | -585 | |
Net (loss) income | ($1,114) | $2,740 |
Net (loss) income per common share: | ||
Basic | ($0.08) | $0.30 |
Diluted | ($0.08) | $0.30 |
Weighted average common shares outstanding: | ||
Basic | 13,835,128 | 9,124,452 |
Diluted | 13,835,128 | 9,124,452 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net (loss) income | ($1,114,000) | $2,740,000 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation, depletion, and amortization | 5,924,000 | 3,380,000 |
Unrealized loss on derivative contracts | 820,000 | 489,000 |
Accretion of asset retirement obligations | 145,000 | 74,000 |
Deferred income taxes | -585,000 | |
Amortization of deferred financing costs | 64,900 | 37,800 |
Settlement of asset retirement obligations | -46,000 | |
Changes in assets and liabilities: | ||
Decrease (increase) in accounts receivable | 7,754,000 | -6,694,000 |
Decrease (increase) in prepaid expenses and other | 387,000 | -300,000 |
(Decrease) increase in accounts payable and accrued expenses | -21,690,000 | 1,390,000 |
(Decrease) increase in revenue and royalties payable | -8,730,000 | 6,807,000 |
(Decrease) increase in advances | -4,436,000 | 14,462,000 |
Net cash (used in) provided by operating activities | -21,506,000 | 22,386,000 |
Cash flows from investing activities: | ||
Additions to oil and gas property and equipment | -19,040,000 | -12,196,000 |
Additions to other property and equipment | -138,000 | -165,000 |
Net cash used in investing activities | -19,178,000 | -12,361,000 |
Cash flows from financing activities: | ||
Deferred financing costs | -73,000 | -6,000 |
Net cash used in financing activities | -73,000 | -6,000 |
Net (decrease) increase in cash and cash equivalents | -40,757,000 | 10,019,000 |
Cash and cash equivalents at beginning of period | 100,447,000 | 25,423,000 |
Cash and cash equivalents at end of period | 59,690,000 | 35,442,000 |
Cash paid for: | ||
Interest | 52,000 | 107,000 |
Non-cash investing and financing activities: | ||
Asset retirement obligations | $43,000 | $21,000 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation |
Earthstone Energy, Inc., a Delaware corporation (“Earthstone” or the “Company”) is an independent oil and gas exploration and production company engaged in the acquisition, development, exploration and production of onshore, unconventional reserves, with a current focus on the Eagle Ford trend of South Texas and in the Williston Basin of North Dakota and Montana. The Company also has conventional wells in East Texas, South Texas, Louisiana and Oklahoma. | |
The accompanying unaudited consolidated financial statements of Earthstone and our wholly-owned subsidiaries, which we refer to as “we,” “our” or “us,” have been prepared in accordance with Article 8-03 of Regulation S-X for interim financial statements required to be filed with the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the Company's Consolidated Balance Sheets as of March 31, 2015, and December 31, 2014; the Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014; and the Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014. The Company’s balance sheet at December 31, 2014 is derived from the audited consolidated financial statements at that date. | |
The preparation of financial statements in conformity with the generally accepted accounting principles of the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For further information, see Note 2 in the Notes to Consolidated Financial Statements contained in our Annual Report on Form 10-K for the year ended December 31, 2014. | |
Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements and the accompanying notes prepared in accordance with GAAP, has been condensed or omitted. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, and the Company’s other filings with the SEC. The Company has evaluated events or transactions through the date of issuance of these unaudited consolidated financial statements. | |
On December 19, 2014, the Company acquired three operating subsidiaries of Oak Valley Resources, LLC (“OVR”), in exchange for shares of Earthstone common stock (the “Exchange”), which resulted in a change of control of the Company. Pursuant to the Exchange Agreement, OVR contributed to Earthstone the membership interests of its three subsidiaries, Oak Valley Operating, LLC (“OVO”), EF Non-Op, LLC (“EF Non-Op”) and Sabine River Energy, LLC (“Sabine”), each a Texas limited liability company (collectively “Oak Valley”), in exchange for approximately 9.124 million shares, representing 84% of the Company’s common stock. The transaction was accounted for as a reverse acquisition whereby Oak Valley is considered the acquirer for accounting purposes. All historical financial information, prior to December 19, 2014, contained in this Quarterly Report on Form 10-Q is that of Oak Valley. | |
Immediately following the Exchange, the Company, through its acquired wholly owned subsidiary, Sabine, acquired an additional 20% undivided ownership interest in certain crude oil and gas properties located in Fayette and Gonzales Counties, Texas, in exchange for the issuance of approximately 2.957 million shares of common stock (the “Contribution Agreement”) to Flatonia Energy, LLC, increasing the Company’s ownership in these properties from a 30% undivided ownership to a 50% undivided ownership interest. As a result of the share issuance to Flatonia, OVR’s ownership in the Company decreased from 84% to 66%. | |
Recently Issued Accounting Standards | |
Revenue Recognition - In May 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance for recognizing revenue from contracts with customers. The objective of this guidance is to establish principles for reporting information about the nature, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and change in judgments, and assets recognized from the costs to obtain or fulfill a contract. The standards update is effective for interim and annual periods beginning after December 15, 2016. The Company will adopt this standards update, as required, beginning with the first quarter of 2017. The Company is in the process of evaluating the impact, if any, of the adoption of this guidance on its consolidated financial statements. | |
Debt Issuance Costs – In April 2015, the FASB issued updated guidance which changes the presentation of debt issuance costs in the financial statements. Under this updated guidance, debt issuance costs are presented on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The standards update is effective for interim and annual periods beginning after December 15, 2015. The Company will adopt this standards update, as required, beginning with the first quarter of 2016 and will be retrospectively applied to all prior periods. The Company is currently evaluating the potential impact, if any, of the adoption of this guidance on its consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Acquisitions | Note 2. Acquisitions | ||||
Earthstone Energy Reverse Acquisition | |||||
On December 19, 2014, the Company and OVR closed the Exchange. In this transaction, OVR contributed to the Company the membership interests of its three wholly-owned subsidiaries, which included producing assets, undeveloped acreage and substantially all of its cash of approximately $130 million, inclusive of approximately $107 million in cash received from members’ capital commitments received immediately prior to the Exchange. OVR received approximately 9.124 million shares of newly issued common stock, $0.001 par value per share (the “Common Stock”), of the Company. The Exchange resulted in a change of control of the Company. The Exchange has been accounted in accordance with FASB Accounting Standards Codification (“ASC”) 805, Business Combinations (“ASC 805”) as a reverse acquisition whereby Oak Valley is considered the acquirer for accounting purposes although Earthstone is the acquirer for legal purposes. ASC 805 also requires, that among other things, assets acquired and liabilities assumed to be measured at their acquisition date fair values. The results of operations from Earthstone’s legacy assets are reflected in the Company’s consolidated statement of operations beginning December 19, 2014. | |||||
An allocation of the purchase price was prepared using, among other things, the year-end reserve report prepared by Cawley, Gillespie and Associates, Inc. that was adjusted and re-priced by the Company’s reserve engineering staff back to the December 19, 2014 acquisition date. The following allocation is still preliminary with respect to final tax amounts, pending the completion of the 2014 Earthstone tax return and certain accruals and includes the use of estimates based on information that was available to management at the time these consolidated financial statements were prepared. Additional changes to the purchase price allocation may result in a corresponding change to goodwill in the period of the change. | |||||
The following table summarizes the consideration paid to acquire the legacy Earthstone net assets and the estimated values of those net assets (in thousands, except share and share price amounts): | |||||
Shares of Common Stock outstanding before the Exchange | 1,734,988 | ||||
Company director and officer restricted shares that vested in the Exchange | 18,400 | ||||
Shares of Common Stock issued in the Exchange | 9,124,452 | ||||
Total shares of Common Stock outstanding following the Exchange | 10,877,840 | ||||
Shares of Common Stock issued as consideration | 1,753,388 | ||||
Closing price of Common Stock (1) | $ | 19.08 | |||
Total purchase price | $ | 33,455 | |||
Estimated Fair Value of Liabilities Assumed: | |||||
Current liabilities | $ | 7,852 | |||
Long-term debt | 7,000 | ||||
Deferred tax liability (2) | 2,880 | ||||
Asset retirement obligation | 2,227 | ||||
Amount attributable to liabilities assumed | 19,959 | ||||
Total purchase price plus liabilities assumed | $ | 53,414 | |||
Estimated Fair Value of Assets Acquired: | |||||
Cash (3) | $ | 2,920 | |||
Other current assets | 3,466 | ||||
Proved oil and natural gas properties (4) (5) | 21,813 | ||||
Unproved oil and natural gas properties | 5,524 | ||||
Other non-current assets | 745 | ||||
Amount attributable to assets acquired | $ | 34,468 | |||
Goodwill (6) | $ | 18,946 | |||
-1 | The share price used for the determination of the purchase price was the adjusted closing price of the Common Stock on December 19, 2014. | ||||
-2 | This amount represents the recorded book value versus tax value difference in oil and natural gas properties and other net assets as of the date of the Exchange on a tax effected basis of approximately 35%. The tax basis of the legacy Earthstone assets were not adjusted in the Exchange. As noted above, however, ASC 805 requires that the Company in a reverse acquisition record the legacy Earthstone net assets at fair value on the date of the Exchange; the fair value of the net assets was in excess of the tax basis and as such required the recognition of a deferred tax liability. | ||||
-3 | The components of cash flow in the Exchange in which the legacy Earthstone assets were acquired were $7.1 million in notes payable and accrued interest that was paid in full in conjunction with the Exchange less the cash acquired of $2.9 million. | ||||
-4 | The weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $51.62 per barrel of oil and $4.58 per Mcf of natural gas after adjustments for transportation fees and regional price differentials. | ||||
-5 | The market assumptions as to the future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of the future development and operating costs, projections of future rates of production, expected recovery rate and risk adjusted discount rates used by the Company to estimate the fair value of the oil and natural gas properties represent Level 3 inputs; see Note 4 Fair Value Measurements, below. | ||||
-6 | Goodwill was determined to be the excess consideration exchanged over the fair value of the Company’s net assets on December 19, 2014. The goodwill recognized will not be deductible for tax purposes. | ||||
2014 Eagle Ford Acquisition Properties | |||||
Also on December 19, 2014, immediately following the Exchange, Flatonia Energy, LLC (“Flatonia”), Parallel Resource Partners, LLC (“Parallel”), and Sabine, closed the transactions contemplated by the Contribution Agreement by and among the Company, OVR, Sabine, Oak Valley Operating, LLC, Parallel, and Flatonia, whereby Parallel contributed 28.57% of the oil and natural gas property interests held by Flatonia, a wholly owned subsidiary of Parallel, in consideration for approximately 2.96 million shares of Common Stock (the “Contribution”). The assets subject to the Contribution Agreement were oil and natural gas property interests in producing wells and acreage in the Eagle Ford trend of Texas (the “2014 Eagle Ford Acquisition Properties”). One of the subsidiaries included in the Exchange is the operator of the 2014 Eagle Ford Acquisition Properties. The only relationship that Flatonia or Parallel had with this subsidiary or the Company prior to the transaction was that the subsidiary is the operator of the 2014 Eagle Ford Acquisition Properties. The Contribution was accounted for as a business combination in accordance ASC 805 which among other things requires the assets acquired and liabilities assumed to be measured and recorded at their fair values as of the acquisition date. | |||||
An allocation of the purchase price was prepared using, the year-end reserve report prepared by Cawley, Gillespie and Associates, Inc. that was adjusted and re-priced by the Company’s reserve engineering staff back to December 19, 2014. The following allocation is still preliminary with respect to final tax amounts, pending the completion of the 2014 Flatonia tax return and certain accruals and it includes the use of estimates based on information that was available to management at the time these audited consolidated financial statements were prepared. The Company’s final allocation of purchase price is dependent on the seller’s tax return since Earthstone received carryover basis on Flatonia’s assets and liabilities because the Contribution Agreement was not a taxable transaction under the United States Internal Revenue Code of 1986, as amended. Additional changes to the purchase price allocation may result in a corresponding change to goodwill in the period of the change. | |||||
The following table summarizes the consideration paid to acquire the 2014 Eagle Ford Acquisition Properties and the estimated values of those net assets (in thousands, except share and share price amounts): | |||||
Shares of Common Stock issued as consideration in the | 2,957,288 | ||||
Contribution | |||||
Closing price of Common Stock (1) | $ | 19.08 | |||
Total purchase price | $ | 56,425 | |||
Estimated Fair Value of Liabilities Assumed: | |||||
Deferred tax liability (2) | $ | 4,046 | |||
Asset retirement obligation | 173 | ||||
Amount attributable to liabilities assumed | 4,219 | ||||
Total purchase price plus liabilities assumed | $ | 60,644 | |||
Estimated Fair Value of Assets Acquired: | |||||
Proved oil and natural gas properties (3) (4) | $ | 34,745 | |||
Unproved oil and natural gas properties | 21,853 | ||||
Amount attributable to assets acquired | $ | 56,598 | |||
Goodwill (5) | $ | 4,046 | |||
-1 | The share price used for the determination of the purchase price was the adjusted closing price of the Common Stock on December 19, 2014. | ||||
-2 | This amount represents the recorded book value to tax difference in the oil and natural gas properties as of the date of the Contribution Agreement on a tax effected basis of approximately 34%. As noted above, the Company received the net assets at Flatonia’s carryover tax basis and as such requires the recognition of a deferred tax liability. | ||||
-3 | The weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties was $56.36 per barrel of oil and $3.36 per Mcf of natural gas after adjustments for transportation fees and regional price differentials. | ||||
-4 | The market assumptions as to the future commodity prices, projections of estimated quantities of oil and natural gas reserves, expectations for timing and amount of the future development and operating costs, projecting of future rates of production, expected recovery rate and risk adjusted discount rates used by the Company to estimate the fair value of the oil and natural gas properties represent Level 3 inputs; see Note 4 Fair Value Measurements, below. | ||||
-5 | Goodwill was determined to be the excess consideration exchanged over the fair value of the 2014 Eagle Ford Acquisition Properties on December 19, 2014. The goodwill recognized will not be deductible for tax purposes. | ||||
The following unaudited supplemental pro forma combined condensed results of operations present consolidated information as though the Exchange and Contribution had been completed as of January 1, 2014. These unaudited supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Exchange or Contribution or any estimated costs that will be incurred to integrate the legacy Earthstone net assets and the 2014 Eagle Ford Acquisition Properties. Future results may vary significantly from the results reflected in this unaudited pro forma financial information (in thousands, except per share amounts). | |||||
Three months | |||||
ended | |||||
March 31, | |||||
2014 | |||||
(Unaudited) | |||||
Revenue | $ | 20,063 | |||
Income before taxes | $ | 7,570 | |||
Net income available to Earthstone common stockholders | $ | 4,980 | |||
Pro forma net income per common share: | |||||
Basic and diluted | $ | 0.36 | |||
For the three months ended March 31, 2015, the Company recognized $2.7 million of oil, natural gas and natural gas liquids sales related to the legacy Earthstone assets and operating expenses including depletion of $3.0 million. There were no non-recurring transaction costs during the three months ended March 31, 2015. | |||||
For the three months ended March 31, 2015, the Company recognized $2.5 million, of oil, natural gas and natural gas liquids related to the 2014 Eagle Ford Acquisition Properties and operating expenses including depletion of $2.3 million. There were no non-recurring transaction costs during the three months ended March 31, 2015. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||
Derivative Financial Instruments | Note 3. Derivative Financial Instruments | ||||||||||||||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations, such as commodity price risk. Derivative contracts are utilized to economically hedge the Company’s exposure to price fluctuations and reduce the variability in the Company’s cash flows associated with anticipated sales of future oil and natural gas production. The Company follows FASB ASC Topic 815 Derivatives and Hedging (“ASC Topic 815”), to account for its derivative financial instruments. The Company does not enter into derivative contracts for speculative trading purposes. | |||||||||||||||||||||||||||
It is the Company’s policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions deemed by management as competent and competitive. The counterparties to the Company’s current derivative contracts are lenders in the Company’s credit agreement, which is described in Note 6 Long-Term Debt below. The Company did not post collateral under any of these contracts as they are secured under the Company’s credit agreement with the same counterparties. | |||||||||||||||||||||||||||
The Company’s crude oil and natural gas derivative positions consist of swaps. Swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for crude oil and natural gas. The Company has elected to not designate any of its derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of these derivative contracts, as well as all payments and receipts on settled derivative contracts, in “Net gain on derivative contracts” on the Consolidated Statements of Operations. All derivative contracts are recorded at their fair market value and are included in the Company’s Consolidated Balance Sheets as assets or liabilities. | |||||||||||||||||||||||||||
With an individual derivative counterparty, the Company may have multiple hedge positions that expire at various points in the future and result in fair value asset and liability positions. At the end of each reporting period, those positions are offset to a single fair value asset or liability for each commodity, and the netted balance is reflected in the Company’s Consolidated Balance Sheets as an asset or a liability. | |||||||||||||||||||||||||||
The Company nets its derivative instrument fair value amounts executed with the same counterparty pursuant to an International Swap Dealers Association Master Agreement (“ISDA”), which provides for net settlement over the term of the contract. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency. | |||||||||||||||||||||||||||
The Company had the following open crude oil and natural gas derivative contracts as of March 31, 2015: | |||||||||||||||||||||||||||
Period | Instrument | Commodity | Volume in | Fixed Price | |||||||||||||||||||||||
Bbls | |||||||||||||||||||||||||||
April 2015 - June 2015 | Swap | Crude Oil | 10,500 | $ | 91.5 | ||||||||||||||||||||||
April 2015 - December 2015 | Swap | Crude Oil | 49,500 | $ | 95.1 | ||||||||||||||||||||||
April 2015 - March 2016 | Swap | Crude Oil | 60,000 | $ | 57 | ||||||||||||||||||||||
In April 2015, the Company entered into the following three crude oil swap contracts: | |||||||||||||||||||||||||||
Period | Instrument | Commodity | Volume in | Fixed Price | |||||||||||||||||||||||
Bbls | |||||||||||||||||||||||||||
May 2015 - June 2016 | Swap | Crude Oil | 140,000 | $ | 58 | ||||||||||||||||||||||
May 2015 - December 2016 | Swap | Crude Oil | 100,000 | $ | 60.8 | ||||||||||||||||||||||
May 2015 - December 2016 | Swap | Crude Oil | 100,000 | $ | 60.8 | ||||||||||||||||||||||
The following table summarizes the location and fair value amounts of all derivative instruments in the Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Consolidated Balance Sheets (in thousands): | |||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||
Derivatives not | Balance Sheet Location | Gross | Gross | Net | Gross | Gross | Net | ||||||||||||||||||||
designated as hedging | Recognized | Amounts | Recognized | Recognized | Amounts | Recognized | |||||||||||||||||||||
contracts under ASC | Assets / | Offset | Assets / | Assets / | Offset | Assets / | |||||||||||||||||||||
Topic 815 | Liabilities | Liabilities | Liabilities | Liabilities | |||||||||||||||||||||||
Commodity contracts | Current derivative assets | $ | 2,749 | $ | — | $ | 2,749 | $ | 3,569 | $ | — | $ | 3,569 | ||||||||||||||
The follow table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivatives instruments in the Company’s Consolidated Statements of Operations (in thousands): | |||||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||||
Derivatives not designated as hedging contracts under ASC Topic 815 | Statement of Operations Location | 2015 | 2014 | ||||||||||||||||||||||||
Unrealized gain (loss) on commodity contracts | Net gain (loss) on derivative contracts | $ | (820 | ) | $ | (489 | ) | ||||||||||||||||||||
Realized gain (loss) on commodity contracts | Net gain (loss) on derivative contracts | $ | 1,494 | $ | (539 | ) | |||||||||||||||||||||
$ | 674 | $ | (1,028 | ) | |||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Note 4. Fair Value Measurements | ||||||||||||||||
FASB ASC Topic 820, Fair Value Measurements and Disclosure (“ASC Topic 820”), 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. ASC Topic 820 provides a framework for measuring fair value, establishes a three level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of the counterparty’s creditworthiness when valuing certain assets. | |||||||||||||||||
The three-level fair value hierarchy for disclosure of fair value measurements defined by ASC Topic 820 is as follows: | |||||||||||||||||
Level 1 – Unadjusted, quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. An active market is defined as a market where transactions for the financial instrument occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||||||||||||
Level 2 – Inputs, other than quoted prices within Level 1, that are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | |||||||||||||||||
Level 3 – Prices or valuations that require unobservable inputs that are both significant to the fair value measurement and unobservable. Valuation under Level 3 generally involves a significant degree of judgment from management. | |||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instrument’s complexity. The Company reflects transfers between the three levels at the beginning of the reporting period in which the availability of observable inputs no longer justifies classification in the original level. There were no transfers between fair value hierarchy levels for the three months ended March 31, 2015. | |||||||||||||||||
Fair Value on a Recurring Basis | |||||||||||||||||
Derivative financial instruments are carried at fair value and measured on a recurring basis. The derivative financial instruments consist of swaps for crude oil and natural gas. The Company’s swaps are valued based on a discounted future cash flow model. The primary input for the model is published forward commodity price curves. The Company’s model is validated by the counterparty’s marked-to-market statements. The swaps are also designated as Level 2 within the valuation hierarchy. | |||||||||||||||||
The fair values of commodity derivative instruments in an asset position include a measure of counterparty nonperformance risk, and the fair values of commodity derivative instruments in a liability position include a measure of the Company’s nonperformance risk. These measurements were not material to the consolidated financial statements. | |||||||||||||||||
The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands): | |||||||||||||||||
31-Mar-15 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Current derivative assets | $ | — | $ | 2,749 | $ | — | $ | 2,749 | |||||||||
Total financial assets | $ | — | $ | 2,749 | $ | — | $ | 2,749 | |||||||||
31-Dec-14 | |||||||||||||||||
Financial assets | |||||||||||||||||
Current derivative assets | $ | — | $ | 3,569 | $ | — | $ | 3,569 | |||||||||
Total financial assets | $ | — | $ | 3,569 | $ | — | $ | 3,569 | |||||||||
Other financial instruments include cash, accounts receivable and payable, and revenue royalties. The carrying amount of these instruments approximates fair value because of their short-term nature. The Company’s long-term debt obligation bears interest at floating market rates, therefore carrying amounts and fair value are approximately equal. | |||||||||||||||||
Fair Value on a Nonrecurring Basis | |||||||||||||||||
Asset Impairment | |||||||||||||||||
Oil and natural gas properties are measured at fair value on a nonrecurring basis. The impairment charge reduces the carrying values of oil and natural gas properties’ to their estimated fair values. These fair value measurements are classified as Level 3 measurements and include many unobservable inputs. Fair value is calculated as the estimated discounted future net cash flows attributable to the assets. The Company’s primary assumptions in preparing the estimated discounted future net cash flows to be recovered from oil and natural gas properties are based on (i) proved reserves, (ii) forward commodity prices and assumptions as to costs and expenses, and (iii) the estimated discount rate that would be used by potential purchasers to determine the fair value of the assets. The Company did not recognize any impairment write-downs with respect to its oil and natural gas properties during the three months ended March 31, 2015 or 2014. | |||||||||||||||||
Business Combinations | |||||||||||||||||
The Company records the identifiable assets acquired and liabilities assumed at fair value at the date of acquisition on a nonrecurring basis. Fair value may be estimated using comparable market data, a discounted cash flow method, or a combination of the two. In the discounted cash flow method, estimated future cash flows are based on management’s expectations for the future and include estimates of future oil and gas production, commodity prices based on NYMEX commodity futures price strips as of the date of the estimate, operating and development costs, and a risk-adjusted discount rate. The future oil and natural gas pricing used in the valuation is a Level 2 assumption. Significant Level 3 assumptions associated with the calculation of discounted cash flows used in the determination of fair value of the acquisition include the Company’s estimate operating and development costs, anticipated production of proved reserves, appropriate risk-adjusted discount rates and other relevant data. The Company’s acquisitions are discussed in Note 2 Acquisitions. | |||||||||||||||||
Asset Retirement Obligation | |||||||||||||||||
The asset retirement obligation estimates are derived from historical costs and management’s expectation of future cost environments; and therefore, the Company has designated these liabilities as Level 3. The significant inputs to this fair value measurement include estimates of plugging, abandonment and remediation costs, well life, inflation and credit-adjusted risk free rate. See Note 7 Asset Retirement Obligations for a reconciliation of the beginning and ending balances of the liability for the Company’s asset retirement obligations. | |||||||||||||||||
Earnings_Loss_Per_Common_Share
Earnings (Loss) Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings (Loss) Per Common Share | Note 5. Earnings (Loss) Per Common Share | ||||||||
Basic earnings (loss) per share is computed by dividing net income (loss) attributable to shares of Common Stock by the basic weighted-average shares of Common Stock outstanding during the period. The calculation of diluted earnings per share is similar to basic, except the denominator includes the effect of dilutive common stock equivalents. | |||||||||
The following table is a reconciliation of net (loss) income and weighted-average shares of Common Stock outstanding for purposes of calculating basic and diluted (loss) income per share: | |||||||||
Three months ended March 31, | |||||||||
(In thousands, except share and per share amounts) | 2015 | 2014 | |||||||
Net (loss) income | $ | (1,114 | ) | $ | 2,740 | ||||
Weighted average common shares outstanding: | |||||||||
Basic | 13,835,128 | 9,124,452 | |||||||
Diluted | 13,835,128 | 9,124,452 | |||||||
Net (loss) income per share: | |||||||||
Basic | $ | (0.08 | ) | $ | 0.3 | ||||
Diluted | $ | (0.08 | ) | $ | 0.3 | ||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6. Long-Term Debt |
On December 19, 2014, the Company entered into a credit agreement providing for a $500.0 million four-year senior secured revolving credit facility (the “ESTE Credit Facility”). The OVR credit facility was refinanced under the ESTE Credit Facility and the legacy credit facility of the Company was paid in full and terminated. | |
The initial borrowing base of the ESTE Credit Facility is $80.0 million and is subject to redetermination during May and November of each year. At the option of the borrower, the amounts borrowed under the credit agreement bear annual interest rates at either (a) LIBOR plus the applicable utilization margin of 1.50% to 2.50% (1.678% at March 31, 2015) or (b) the base rate plus the applicable utilization margin of 0.50% to 1.50% (3.75% at March 31, 2015). Principal amounts outstanding under the ESTE Credit Facility are due and payable in full at maturity on December 19, 2018. All of the obligations under the credit agreement, and the guarantees of those obligations, are secured by substantially all of the Company’s assets. Additional payments due under the credit agreement include paying a commitment fee to the Lender in respect of the unutilized commitments thereunder. The commitment fee ranges from 0.375% to 0.50% per year, depending upon the unutilized portion of the borrowing base in effect from time to time. The Company is also required to pay customary letter of credit fees. | |
As of March 31, 2015, the Company had $11.2 million of debt outstanding, bearing an interest rate of 1.678%, $0.3 million of letters of credit outstanding and $68.5 million of borrowing base available under its ESTE Credit Facility. | |
The ESTE Credit Facility contains a number of customary covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to incur additional indebtedness, create liens on asset, pay dividends, and repurchase its capital stock. In addition, the Company is required to maintain certain financial ratios, including a minimum current ratio of 1.0 to 1.0 and a maximum annualized quarterly leverage ratio of 4.0 to 1.0. The Company is also required to submit an audited annual report 120 days after the end of each fiscal period. As of March 31, 2015, the Company was in compliance with these covenants. | |
Interest expense for the three months ended March 31, 2015 and 2014, includes amortization of deferred financing costs of $64,900 and $37,800, respectively. Approximately $1.0 million, net of amortization, associated with the Company’s credit facilities have been capitalized as of March 31, 2015 and December 31, 2014, and was being amortized over the terms of the credit agreements. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Asset Retirement Obligation Disclosure [Abstract] | |||||
Asset Retirement Obligations | Note 7. Asset Retirement Obligations | ||||
The Company has asset retirement obligations associated with the future plugging and abandonment of oil and natural gas properties and related facilities. The accretion of the asset retirement obligation is included in “Lease operating expense” in the Consolidated Statements of Operations. Revisions to the liability typically occur due to changes in the estimated abandonment costs, well economic lives, and the discount rate. | |||||
The following table summarizes the Company’s asset retirement obligation transactions recorded during the three months ended March 31, 2015, and in accordance with the provisions of FASB ASC Topic 410, Asset Retirement and Environmental Obligations (in thousands): | |||||
2015 | |||||
Asset retirement obligations at December 31, 2014 | $ | 6,078 | |||
Liabilities incurred | 43 | ||||
Accretion expense | 145 | ||||
Liabilities settled | (46 | ) | |||
Revision of estimates | (2 | ) | |||
Asset retirement obligations at March 31, 2015 | $ | 6,218 | |||
Based on expected timing of settlement, $0.3 million of the asset retirement obligation is classified as current at March 31, 2015. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8. Related Party Transactions |
FASB ASC Topic 850, Related Party Disclosures (“ASC Topic 850”), requires that transactions with related parties that would make a difference in decision making be disclosed so that users of the financial statements can evaluate their significance. EnCap, the members of Oak Valley Management, LLC (“OVM”), and OVR’s other equity investors are considered related parties under ASC Topic 850. The following are significant related party transactions between the Company and parties of EnCap and the members of OVM as of March 31, 2015 and December 31, 2014, and for the three months ended March 31, 2015 and 2014, as well as significant related party transactions between the Company and the OVR other equity investors as of March 31, 2015 and December 31, 2014, and for the three months ended March 31, 2015 and 2014. | |
The Company employs members of OVM. For the three months ended March 31, 2015 and 2014, the Company made payments totaling $1.5 million and $1.4 million, respectively, to these members as compensation for services and reimbursement of expenses. The payments are included in “General and administrative expense” on the Consolidated Statements of Operations or have been charged out to oil and natural gas properties. | |
At March 31, 2015 and December 31, 2014, the Company had a liability of $0.3 million and $2.3 million, respectively, due to companies to which certain members of OVR are significant related parties. These amounts are included in “Accounts payable” on the Consolidated Balance Sheets. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes |
For the three months ended March 31, 2015, the Company recorded an income tax benefit of $0.6 million, all of which was deferred. The Company’s effective tax rate for the three months ended March 31, 2015 was 34.43% which is consistent with a U.S. Federal statutory corporate income tax rate of 34% plus approximately 0.4% for the estimated portion of the Company’s income that is subject to income tax in the states in which the Company operates. The Company did not record any tax provision for income tax in the three months ended March 31, 2014 because OVR is a partnership and is not subject to taxation. As explained in Note 1 Basis of Presentation all historical financial information prior to December 19, 2014 contained in this report is that of OVR and its subsidiaries. | |
The Company provides for deferred income taxes on the difference between the tax basis of an asset or liability and its carrying amount in the financial statements in accordance with guidance in ASC Topic 740. This difference will result in taxable income or deductions in future years when the reported amount of the asset or liability is recovered or settled, respectively. In recording deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred income tax asset will be realized. The ultimate realization of deferred income tax assets, if any, is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10. Commitments and Contingencies |
In the course of its business affairs and operations, the Company is subject to possible loss contingencies arising from federal, state, and local environmental, health and safety laws and regulations and third party litigation. | |
Commitments | |
In 2014, the Company entered into an 18 month contract for a new rig currently being built. The contract provides for a daily drilling rate of $29,000 and in the event the Company does not fulfill its contractual obligations, liquidated damages of up to $10.8 million subject to adjustments could be charged. The rig is scheduled to be completed during the second quarter of 2015. As of March 31, 2015, the minimum commitment per the terms of the agreement is approximately $16.0 million through the end of 2016. | |
As a part of the 2013 Eagle Ford Acquisition, the Company and its working interest partner in the area ratified several long-term natural gas purchasing and natural gas processing contracts. As is customary in the industry, the Company has reserved gathering and processing capacity in a pipeline. In one of the contracts, the Company and its working interest partner have a volume commitment, whereby the owner of the pipeline is paid a fee of $0.45 per MMBtu to hold 10,000 MMBtu per day of capacity. Since the time of the acquisition, the volume commitment has not been met. The rate and terms under this purchasing and processing contract expire on June 1, 2021. As of March 31, 2015, the Company’s share of the remaining commitment on this contract is approximately $5.1 million. | |
Contingencies | |
Environmental | |
The Company’s operations are subject to risks normally associated with the exploration for and the production of oil and natural gas, including blowouts, fires, and environmental risks such as oil spills or natural gas leaks that could expose the Company to liabilities associated with these risks. | |
In the Company’s acquisition of existing or previously drilled well bores, the Company may not be aware of prior environmental safeguards, if any, that were taken at the time such wells were drilled or during such time the wells were operated. The Company maintains comprehensive insurance coverage that it believes is adequate to mitigate the risk of any adverse financial effects associated with these risks. | |
However, should it be determined that a liability exists with respect to any environmental cleanup or restoration, the liability to cure such a violation could still fall upon the Company. No claim has been made, nor is the Company aware of any liability which the Company may have, as it relates to any environmental cleanup, restoration, or the violation of any rules or regulations relating thereto except for the matter discussed above. | |
Legal | |
From time to time, the Company may be involved in various legal proceedings and claims in the ordinary course of business. As of March 31, 2015, and through the filing date of this report, the Company does not believe the ultimate resolution of such actions or potential actions of which the Company is currently aware will have a material effect on its consolidated financial position or results of operations. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events |
In April 2015, the Company sold properties located primarily in De Soto and Caddo parishes in Louisiana for cash consideration of $3.5 million. The effective date of the transaction is March 1, 2015. The purchase price is subject to closing adjustments for normal operation activity and other purchase price adjustments that occur between the effective date of the sale and the closing date. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
Revenue Recognition - In May 2014, the Financial Accounting Standards Board (“FASB”) issued updated guidance for recognizing revenue from contracts with customers. The objective of this guidance is to establish principles for reporting information about the nature, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and change in judgments, and assets recognized from the costs to obtain or fulfill a contract. The standards update is effective for interim and annual periods beginning after December 15, 2016. The Company will adopt this standards update, as required, beginning with the first quarter of 2017. The Company is in the process of evaluating the impact, if any, of the adoption of this guidance on its consolidated financial statements. | |
Debt Issuance Costs – In April 2015, the FASB issued updated guidance which changes the presentation of debt issuance costs in the financial statements. Under this updated guidance, debt issuance costs are presented on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The standards update is effective for interim and annual periods beginning after December 15, 2015. The Company will adopt this standards update, as required, beginning with the first quarter of 2016 and will be retrospectively applied to all prior periods. The Company is currently evaluating the potential impact, if any, of the adoption of this guidance on its consolidated financial statements. |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earthstone Energy Reverse Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets | The following table summarizes the consideration paid to acquire the legacy Earthstone net assets and the estimated values of those net assets (in thousands, except share and share price amounts): | ||||
Shares of Common Stock outstanding before the Exchange | 1,734,988 | ||||
Company director and officer restricted shares that vested in the Exchange | 18,400 | ||||
Shares of Common Stock issued in the Exchange | 9,124,452 | ||||
Total shares of Common Stock outstanding following the Exchange | 10,877,840 | ||||
Shares of Common Stock issued as consideration | 1,753,388 | ||||
Closing price of Common Stock (1) | $ | 19.08 | |||
Total purchase price | $ | 33,455 | |||
Estimated Fair Value of Liabilities Assumed: | |||||
Current liabilities | $ | 7,852 | |||
Long-term debt | 7,000 | ||||
Deferred tax liability (2) | 2,880 | ||||
Asset retirement obligation | 2,227 | ||||
Amount attributable to liabilities assumed | 19,959 | ||||
Total purchase price plus liabilities assumed | $ | 53,414 | |||
Estimated Fair Value of Assets Acquired: | |||||
Cash (3) | $ | 2,920 | |||
Other current assets | 3,466 | ||||
Proved oil and natural gas properties (4) (5) | 21,813 | ||||
Unproved oil and natural gas properties | 5,524 | ||||
Other non-current assets | 745 | ||||
Amount attributable to assets acquired | $ | 34,468 | |||
Goodwill (6) | $ | 18,946 | |||
2014 Eagle Ford Properties [Member] | |||||
Business Acquisition [Line Items] | |||||
Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets | The following table summarizes the consideration paid to acquire the 2014 Eagle Ford Acquisition Properties and the estimated values of those net assets (in thousands, except share and share price amounts): | ||||
Shares of Common Stock issued as consideration in the | 2,957,288 | ||||
Contribution | |||||
Closing price of Common Stock (1) | $ | 19.08 | |||
Total purchase price | $ | 56,425 | |||
Estimated Fair Value of Liabilities Assumed: | |||||
Deferred tax liability (2) | $ | 4,046 | |||
Asset retirement obligation | 173 | ||||
Amount attributable to liabilities assumed | 4,219 | ||||
Total purchase price plus liabilities assumed | $ | 60,644 | |||
Estimated Fair Value of Assets Acquired: | |||||
Proved oil and natural gas properties (3) (4) | $ | 34,745 | |||
Unproved oil and natural gas properties | 21,853 | ||||
Amount attributable to assets acquired | $ | 56,598 | |||
Goodwill (5) | $ | 4,046 | |||
Schedule of Unaudited Pro forma Revenues and Expenses of Assets Acquired and Liabilities Assumed | The following unaudited supplemental pro forma combined condensed results of operations present consolidated information as though the Exchange and Contribution had been completed as of January 1, 2014. These unaudited supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future. The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Exchange or Contribution or any estimated costs that will be incurred to integrate the legacy Earthstone net assets and the 2014 Eagle Ford Acquisition Properties. Future results may vary significantly from the results reflected in this unaudited pro forma financial information (in thousands, except per share amounts). | ||||
Three months | |||||
ended | |||||
March 31, | |||||
2014 | |||||
(Unaudited) | |||||
Revenue | $ | 20,063 | |||
Income before taxes | $ | 7,570 | |||
Net income available to Earthstone common stockholders | $ | 4,980 | |||
Pro forma net income per common share: | |||||
Basic and diluted | $ | 0.36 | |||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||
Schedule of Outstanding Commodity Derivative Instruments | The Company had the following open crude oil and natural gas derivative contracts as of March 31, 2015: | ||||||||||||||||||||||||||
Period | Instrument | Commodity | Volume in | Fixed Price | |||||||||||||||||||||||
Bbls | |||||||||||||||||||||||||||
April 2015 - June 2015 | Swap | Crude Oil | 10,500 | $ | 91.5 | ||||||||||||||||||||||
April 2015 - December 2015 | Swap | Crude Oil | 49,500 | $ | 95.1 | ||||||||||||||||||||||
April 2015 - March 2016 | Swap | Crude Oil | 60,000 | $ | 57 | ||||||||||||||||||||||
In April 2015, the Company entered into the following three crude oil swap contracts: | |||||||||||||||||||||||||||
Period | Instrument | Commodity | Volume in | Fixed Price | |||||||||||||||||||||||
Bbls | |||||||||||||||||||||||||||
May 2015 - June 2016 | Swap | Crude Oil | 140,000 | $ | 58 | ||||||||||||||||||||||
May 2015 - December 2016 | Swap | Crude Oil | 100,000 | $ | 60.8 | ||||||||||||||||||||||
May 2015 - December 2016 | Swap | Crude Oil | 100,000 | $ | 60.8 | ||||||||||||||||||||||
Summary of Gross and Net Information about Commodity Derivative Instruments | The following table summarizes the location and fair value amounts of all derivative instruments in the Consolidated Balance Sheets as well as the gross recognized derivative assets, liabilities, and amounts offset in the Consolidated Balance Sheets (in thousands): | ||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||||||||||||
Derivatives not | Balance Sheet Location | Gross | Gross | Net | Gross | Gross | Net | ||||||||||||||||||||
designated as hedging | Recognized | Amounts | Recognized | Recognized | Amounts | Recognized | |||||||||||||||||||||
contracts under ASC | Assets / | Offset | Assets / | Assets / | Offset | Assets / | |||||||||||||||||||||
Topic 815 | Liabilities | Liabilities | Liabilities | Liabilities | |||||||||||||||||||||||
Commodity contracts | Current derivative assets | $ | 2,749 | $ | — | $ | 2,749 | $ | 3,569 | $ | — | $ | 3,569 | ||||||||||||||
Realized and Unrealized Gains and Losses from Commodity Derivative Instruments | The follow table summarizes the location and amounts of the Company’s realized and unrealized gains and losses on derivatives instruments in the Company’s Consolidated Statements of Operations (in thousands): | ||||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||||
Derivatives not designated as hedging contracts under ASC Topic 815 | Statement of Operations Location | 2015 | 2014 | ||||||||||||||||||||||||
Unrealized gain (loss) on commodity contracts | Net gain (loss) on derivative contracts | $ | (820 | ) | $ | (489 | ) | ||||||||||||||||||||
Realized gain (loss) on commodity contracts | Net gain (loss) on derivative contracts | $ | 1,494 | $ | (539 | ) | |||||||||||||||||||||
$ | 674 | $ | (1,028 | ) | |||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Summary of Fair Value of Financial Assets and Liabilities | The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands): | ||||||||||||||||
31-Mar-15 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Current derivative assets | $ | — | $ | 2,749 | $ | — | $ | 2,749 | |||||||||
Total financial assets | $ | — | $ | 2,749 | $ | — | $ | 2,749 | |||||||||
31-Dec-14 | |||||||||||||||||
Financial assets | |||||||||||||||||
Current derivative assets | $ | — | $ | 3,569 | $ | — | $ | 3,569 | |||||||||
Total financial assets | $ | — | $ | 3,569 | $ | — | $ | 3,569 | |||||||||
Earnings_Loss_Per_Common_Share1
Earnings (Loss) Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Reconciliation of Net (Loss) Income and Weighted-Average Shares of Common Stock Outstanding for Calculating Basic and Diluted (Loss) Income Per Share | The following table is a reconciliation of net (loss) income and weighted-average shares of Common Stock outstanding for purposes of calculating basic and diluted (loss) income per share: | ||||||||
Three months ended March 31, | |||||||||
(In thousands, except share and per share amounts) | 2015 | 2014 | |||||||
Net (loss) income | $ | (1,114 | ) | $ | 2,740 | ||||
Weighted average common shares outstanding: | |||||||||
Basic | 13,835,128 | 9,124,452 | |||||||
Diluted | 13,835,128 | 9,124,452 | |||||||
Net (loss) income per share: | |||||||||
Basic | $ | (0.08 | ) | $ | 0.3 | ||||
Diluted | $ | (0.08 | ) | $ | 0.3 | ||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Asset Retirement Obligation Disclosure [Abstract] | |||||
Summary of Asset Retirement Obligation Transactions | The following table summarizes the Company’s asset retirement obligation transactions recorded during the three months ended March 31, 2015, and in accordance with the provisions of FASB ASC Topic 410, Asset Retirement and Environmental Obligations (in thousands): | ||||
2015 | |||||
Asset retirement obligations at December 31, 2014 | $ | 6,078 | |||
Liabilities incurred | 43 | ||||
Accretion expense | 145 | ||||
Liabilities settled | (46 | ) | |||
Revision of estimates | (2 | ) | |||
Asset retirement obligations at March 31, 2015 | $ | 6,218 | |||
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Details) | 0 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 19, 2014 | Mar. 31, 2015 |
Subsidiary | ||
Oak Valley Resources, LLC [Member] | ||
Basis Of Presentation [Line Items] | ||
Number of subsidiaries | 3 | |
Common stock shares issued in exchange for acquisition | 9,124 | |
Percentage of common stock acquired | 84.00% | 66.00% |
Flatonia Energy, LLC [Member] | ||
Basis Of Presentation [Line Items] | ||
Common stock shares issued in exchange for acquisition | 2,957 | |
Undivided ownership interest acquired percentage | 20.00% | |
Undivided ownership interest percentage before acquisition | 30.00% | |
Undivided ownership interest percentage after acquisition | 50.00% |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 19, 2014 |
Business Acquisition [Line Items] | |||
General and administrative expense | $2,571,000 | $1,412,000 | |
Legacy Earthstone | |||
Business Acquisition [Line Items] | |||
Proceeds from oil, natural gas and natural gas liquids | 2,700,000 | ||
Operating expenses including depletion | 3,000,000 | ||
Legacy Earthstone | Non Recurring Transaction Costs [Member] | |||
Business Acquisition [Line Items] | |||
General and administrative expense | 0 | ||
Earthstone Energy Reverse Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration | 130,000,000 | ||
Common stock shares issued in exchange for acquisition | 9,124 | ||
Common stock, price per share | $0.00 | ||
Earthstone Energy Reverse Acquisition [Member] | Members Capital Commitments [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration | 107,000,000 | ||
2014 Eagle Ford Properties [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration | 56,425,000 | ||
Common stock shares issued in exchange for acquisition | 2,960 | ||
Percentage of oil and natural gas property interests held by a wholly owned subsidiary | 28.57% | ||
Proceeds from oil, natural gas and natural gas liquids | 2,500,000 | ||
Operating expenses including depletion | 2,300,000 | ||
2014 Eagle Ford Properties [Member] | Non Recurring Transaction Costs [Member] | |||
Business Acquisition [Line Items] | |||
General and administrative expense | $0 |
Acquisitions_Schedule_of_Consi
Acquisitions - Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets (Details) (USD $) | 0 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 19, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Total shares of Common Stock outstanding following the Exchange | 13,835,128 | 13,835,128 | |
Common stock, shares issued | 13,835,128 | 13,835,128 | |
Estimated Fair Value of Assets Acquired: | |||
Goodwill | $22,992 | $22,992 | |
Earthstone Energy Reverse Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Shares of Common Stock outstanding before the Exchange | 1,734,988 | ||
Company director and officer restricted shares that vested in the Exchange | 18,400 | ||
Shares of Common Stock issued in the Exchange | 9,124,452 | ||
Total shares of Common Stock outstanding following the Exchange | 10,877,840 | ||
Common stock, shares issued | 1,753,388 | ||
Closing price of Common Stock | $19.08 | ||
Total purchase price | 33,455 | ||
Estimated Fair Value of Liabilities Assumed: | |||
Current liabilities | 7,852 | ||
Long-term debt | 7,000 | ||
Deferred tax liability | 2,880 | ||
Asset retirement obligation | 2,227 | ||
Amount attributable to liabilities assumed | 19,959 | ||
Total purchase price plus liabilities assumed | 53,414 | ||
Estimated Fair Value of Assets Acquired: | |||
Cash | 2,920 | 2,900 | |
Other current assets | 3,466 | ||
Other non-current assets | 745 | ||
Amount attributable to assets acquired | 34,468 | ||
Goodwill | 18,946 | ||
Cash consideration | 130,000 | ||
Earthstone Energy Reverse Acquisition [Member] | Proved Oil and Gas Properties [Member] | |||
Estimated Fair Value of Assets Acquired: | |||
Oil and natural gas properties | 21,813 | ||
Earthstone Energy Reverse Acquisition [Member] | Unproved Oil and Gas Properties [Member] | |||
Estimated Fair Value of Assets Acquired: | |||
Oil and natural gas properties | 5,524 | ||
2014 Eagle Ford Properties [Member] | |||
Business Acquisition [Line Items] | |||
Common stock, shares issued | 2,957,288 | ||
Closing price of Common Stock | $19.08 | ||
Estimated Fair Value of Liabilities Assumed: | |||
Deferred tax liability | 4,046 | ||
Asset retirement obligation | 173 | ||
Amount attributable to liabilities assumed | 4,219 | ||
Total purchase price plus liabilities assumed | 60,644 | ||
Estimated Fair Value of Assets Acquired: | |||
Amount attributable to assets acquired | 56,598 | ||
Goodwill | 4,046 | ||
Cash consideration | 56,425 | ||
2014 Eagle Ford Properties [Member] | Proved Oil and Gas Properties [Member] | |||
Estimated Fair Value of Assets Acquired: | |||
Oil and natural gas properties | 34,745 | ||
2014 Eagle Ford Properties [Member] | Unproved Oil and Gas Properties [Member] | |||
Estimated Fair Value of Assets Acquired: | |||
Oil and natural gas properties | $21,853 |
Acquisitions_Schedule_of_Consi1
Acquisitions - Schedule of Consideration Paid to Acquire Net Assets and Estimated Values of Net Assets (Parenthetical) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 19, 2014 | |
Business Acquisition [Line Items] | ||
Exchange tax rate | 34.00% | |
Earthstone Energy Reverse Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Exchange tax rate | 35.00% | |
Business combination assets acquired notes payable and accrued interest | $7,100,000 | |
Cash | $2,900,000 | $2,920,000 |
Weighted average commodity prices of oil | 51.62 | |
Weighted average commodity prices of natural gas | 4.58 | |
2014 Eagle Ford Properties [Member] | ||
Business Acquisition [Line Items] | ||
Exchange tax rate | 34.00% | |
Weighted average commodity prices of oil | 56.36 | |
Weighted average commodity prices of natural gas | 3.36 |
Acquisitions_Schedule_of_Unaud
Acquisitions - Schedule of Unaudited Pro forma Revenues and Expenses of Assets Acquired and Liabilities Assumed (Details) (2014 Eagle Ford Properties [Member], USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 |
2014 Eagle Ford Properties [Member] | |
Business Acquisition [Line Items] | |
Revenue | $20,063 |
Income before taxes | 7,570 |
Net income available to Earthstone common stockholders | $4,980 |
Pro forma net income per common share: | |
Basic and diluted | $0.36 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Schedule of Open Crude Oil and Natural Gas Derivative Contracts (Details) (Crude Oil [Member]) | 3 Months Ended | 1 Months Ended |
Mar. 31, 2015 | Apr. 30, 2015 | |
bbl | bbl | |
April 2015 - June 2015 [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Volume in Bbls | 10,500 | |
Fixed Price, Bbls | 91.5 | |
April 2015 - December 2015 [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Volume in Bbls | 49,500 | |
Fixed Price, Bbls | 95.1 | |
April 2015 - March 2016 [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Volume in Bbls | 60,000 | |
Fixed Price, Bbls | 57 | |
May 2015 - June 2016 [Member] | Subsequent Event [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Volume in Bbls | 140,000 | |
Fixed Price, Bbls | 58 | |
May 2015 - December 2016 [Member] | Subsequent Event [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Volume in Bbls | 100,000 | |
Fixed Price, Bbls | 60.8 | |
May 2015 - December 2016 [Member] | Subsequent Event [Member] | ||
Derivative [Line Items] | ||
Instrument | Swap | |
Volume in Bbls | 100,000 | |
Fixed Price, Bbls | 60.8 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Schedule of Location and Fair Value Amounts of All Derivative Instruments (Details) (Derivatives Not Designated as Hedging Contracts [Member], Commodity Contracts [Member], Current Derivative Assets [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives Not Designated as Hedging Contracts [Member] | Commodity Contracts [Member] | Current Derivative Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Gross Recognized Assets | $2,749 | $3,569 |
Net Recognized Assets | $2,749 | $3,569 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Summary of Gross and Net Information About Commodity Derivative Instruments (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative Instruments Gain Loss [Line Items] | ||
Net gain (loss) on derivative contracts | $674 | ($1,028) |
Derivatives Not Designated as Hedging Contracts [Member] | Net Gain (Loss) On Derivative Contracts [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Unrealized gain (loss) on commodity contracts | -820 | -489 |
Realized gain (loss) on commodity contracts | $1,494 | ($539) |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value assets transfer from Level 1 to Level 2 | $0 |
Fair value assets transfer from Level 2 to Level 1 | 0 |
Fair value liabilities transfer from Level 1 to Level 2 | 0 |
Fair value liabilities transfer from Level 2 to Level 1 | 0 |
Level 3 [Member] | Fair Value on a Nonrecurring Basis [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impairment of oil and natural gas properties | $0 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Fair Value of Financial Assets and Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial assets | ||
Current derivative assets | $2,749 | $3,569 |
Fair Value on a Recurring Basis [Member] | ||
Financial assets | ||
Current derivative assets | 2,749 | 3,569 |
Total financial assets | 2,749 | 3,569 |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | ||
Financial assets | ||
Current derivative assets | 2,749 | 3,569 |
Total financial assets | $2,749 | $3,569 |
Earnings_Loss_Per_Common_Share2
Earnings (Loss) Per Common Share - Reconciliation of Net (Loss) Income and Weighted-Average Shares of Common Stock Outstanding for Calculating Basic and Diluted (Loss) Income Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Loss Per Common Share [Abstract] | ||
Net (loss) income | ($1,114) | $2,740 |
Weighted average common shares outstanding: | ||
Basic | 13,835,128 | 9,124,452 |
Diluted | 13,835,128 | 9,124,452 |
Net (loss) income per share: | ||
Basic | ($0.08) | $0.30 |
Diluted | ($0.08) | $0.30 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 19, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Long term debt | $11,200,000 | |||
Long-term debt, percentage bearing interest rate | 1.68% | |||
Letters of credit outstanding amount | 300,000 | |||
Borrowing base available under credit facility | 68,500,000 | |||
Amortization of deferred financing costs | 64,900 | 37,800 | ||
Deferred financing cost, net of amortization | 1,000,000 | 1,000,000 | ||
Four Year Senior Secured Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 500,000,000 | |||
Line of credit, maturity period | 4 years | |||
Initial borrowing of the credit facility | $80,000,000 | |||
Debt outstanding maturity | 19-Dec-18 | |||
Four Year Senior Secured Revolving Credit Facility | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.38% | |||
Four Year Senior Secured Revolving Credit Facility | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee percentage | 0.50% | |||
Four Year Senior Secured Revolving Credit Facility | LIBOR Adjusted Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin percentage | 1.68% | |||
Four Year Senior Secured Revolving Credit Facility | LIBOR Adjusted Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin percentage | 1.50% | |||
Four Year Senior Secured Revolving Credit Facility | LIBOR Adjusted Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin percentage | 2.50% | |||
Four Year Senior Secured Revolving Credit Facility | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin percentage | 3.75% | |||
Four Year Senior Secured Revolving Credit Facility | Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin percentage | 0.50% | |||
Four Year Senior Secured Revolving Credit Facility | Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin percentage | 1.50% | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, covenant terms | The ESTE Credit Facility contains a number of customary covenants that, among other things, restrict, subject to certain exceptions, the Companybs ability to incur additional indebtedness, create liens on asset, pay dividends, and repurchase its capital stock. In addition, the Company is required to maintain certain financial ratios, including a minimum current ratio of 1.0 to 1.0 and a maximum annualized quarterly leverage ratio of 4.0 to 1.0. The Company is also required to submit an audited annual report 120 days after the end of each fiscal period. |
Asset_Retirement_Obligations_S
Asset Retirement Obligations - Summary of Asset Retirement Obligation Transactions (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligations, Beginning balance | $6,078 | |
Liabilities incurred | 43 | |
Accretion expense | 145 | 74 |
Liabilities settled | -46 | |
Revision of estimates | -2 | |
Asset retirement obligations, Ending balance | $6,218 |
Asset_Retirement_Obligations_A
Asset Retirement Obligations - Additional Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, current | $335 | $408 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | |||
Accounts payable, related parties | $0.30 | $2.30 | |
Oak Valley Management Limited Liability Company | |||
Related Party Transaction [Line Items] | |||
General and administrative expenses related to services | $1.50 | $1.40 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Income Tax Disclosure [Abstract] | |
Income tax benefit | ($585) |
Effective tax rate | 34.43% |
U.S. Federal statutory corporate income tax rate | 34.00% |
States income tax rate | 0.40% |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Natural Gas Purchasing and Natural Gas Processing Contract | ||
Loss Contingencies [Line Items] | ||
Pipeline fee paid | 0.45 | |
Holding pipeline capacity | 10,000 | |
Purchasing and processing contract expiry date | 1-Jun-21 | |
Company's share of remaining commitment amount | $5,100,000 | |
Drilling Commitments | ||
Loss Contingencies [Line Items] | ||
Daily drilling rate of wells | 29,000 | |
Contractual obligations, liquidated damages | 10,800,000 | |
Minimum commitment per terms of the agreement | $16,000,000 | |
Drilling Rigs Contract Period | 18 months |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event [Member], USD $) | Apr. 30, 2015 |
In Millions, unless otherwise specified | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Cash consideration | $3.50 |