Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | CONTANGO OIL & GAS CO | ||
Entity Central Index Key | 1071993 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 19,155,847 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $618 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $0 | |
Accounts receivable, net | 25,309 | 60,613 |
Prepaid expenses and other | 1,941 | 2,031 |
Inventory | 2,166 | 2,147 |
Current deferred tax asset | 1,624 | 1,326 |
Total current assets | 31,040 | 66,117 |
Natural gas and oil properties, successful efforts method of accounting: | ||
Proved properties | 1,138,054 | 1,001,361 |
Unproved properties | 35,783 | 49,443 |
Other property and equipment | 1,084 | 900 |
Accumulated depreciation, depletion and amortization | -426,298 | -260,681 |
Total property, plant and equipment, net | 748,623 | 791,023 |
OTHER NON-CURRENT ASSETS: | ||
Investments in affiliates | 62,085 | 50,901 |
Other | 1,667 | 2,263 |
Total other non-current assets | 63,752 | 53,164 |
TOTAL ASSETS | 843,415 | 910,304 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 92,892 | 96,833 |
Current derivative liability | 1,131 | |
Current asset retirement obligations | 4,123 | 1,315 |
Total current liabilities | 97,015 | 99,279 |
NON-CURRENT LIABILITIES: | ||
Long-term debt | 63,359 | 90,000 |
Deferred tax liability | 93,952 | 105,956 |
Asset retirement obligations | 21,623 | 22,019 |
Total non-current liabilities | 178,934 | 217,975 |
Total liabilities | 275,949 | 317,254 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Common stock, $0.04 par value, 50 million shares authorized, 24,357,099 shares issued and 19,364,574 shares outstanding at June 30, 2014, 24,356,236 shares issued and 19,363,711 shares outstanding at December 31, 2013 | 963 | 962 |
Additional paid-in capital | 233,278 | 228,644 |
Treasury shares at cost (4,992,525 shares at June 30, 2014 and December 31, 2013) | -127,525 | -119,180 |
Retained earnings | 460,750 | 482,624 |
Total shareholders’ equity | 567,466 | 593,050 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $843,415 | $910,304 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $0.04 | $0.04 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 24,372,538 | 24,356,236 |
Common stock, shares outstanding | 19,148,000 | 19,363,711 |
Treasury stock, shares | 5,224,538 | 4,992,525 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||
Oil and condensate sales | $130,238 | $59,608 | $56,237 |
Natural gas sales | 112,695 | 79,289 | 60,691 |
Natural gas liquids sales | 33,525 | 25,224 | 28,940 |
Total revenues | 276,458 | 164,121 | 145,868 |
EXPENSES: | |||
Operating expenses | 47,236 | 36,784 | 23,720 |
Exploration expenses | 33,387 | 1,811 | 51,903 |
Depreciation, depletion and amortization | 156,117 | 65,529 | 44,896 |
Impairment and abandonment of oil and gas properties | 47,693 | 776 | 14,079 |
General and administrative expenses | 34,045 | 26,512 | 11,265 |
Total expenses | 318,478 | 131,412 | 145,863 |
OTHER INCOME (EXPENSE): | |||
Gain from investment in affiliates (net of income taxes) | 6,923 | 2,310 | 60 |
Interest income (expense) | -2,658 | -1,171 | 96 |
Loss on derivatives, net | -153 | -1,132 | 0 |
Other income (expense) | 124 | 31,785 | -463 |
Total other income (expense) | 4,236 | 31,792 | -307 |
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | -37,784 | 64,501 | -302 |
Income tax benefit (provision) | 15,910 | -23,139 | -605 |
Income (loss) from continuing operations | -21,874 | 41,362 | -907 |
DISCONTINUED OPERATIONS, NET OF INCOME TAX (NOTE 18) | -29 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | ($21,874) | $41,362 | ($936) |
Basic | |||
Continuing operations (in dollars per share) | ($1.15) | $2.56 | ($0.06) |
Discontinued operations (in dollars per share) | $0 | ||
Total (in dollars per share) | ($1.15) | $2.56 | ($0.06) |
Earnings Per Share, Diluted [Abstract] | |||
Continuing operations (in dollars per share) | ($1.15) | $2.56 | ($0.06) |
Discontinued operations (in dollars per share) | $0 | ||
Total (in dollars per share) | ($1.15) | $2.56 | ($0.06) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 19,059 | 16,156 | 15,295 |
Diluted (in shares) | 19,059 | 16,158 | 15,295 |
Consolidated_Statement_Of_Shar
Consolidated Statement Of Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
In Thousands, except Share data | |||||
Balance at Dec. 31, 2011 | $805 | $79,279 | ($108,789) | $472,708 | $444,003 |
Balance, shares at Dec. 31, 2011 | 15,357,166 | ||||
Excess tax benefit from exercise of stock options | -254 | -254 | |||
Treasury shares at cost | -8,374 | -8,374 | |||
Treasury shares at cost, shares | -162,214 | -162,214 | |||
Dividends | -30,510 | -30,510 | |||
Net loss | -936 | -936 | |||
Balance at Dec. 31, 2012 | 805 | 79,025 | -117,163 | 441,262 | 403,929 |
Balance, shares at Dec. 31, 2012 | 15,194,952 | ||||
Acquisition of Crimson | 154 | 146,414 | 146,568 | ||
Acquisition of Crimson, shares | 3,864,039 | ||||
Exercise of stock options | 3 | 26 | 29 | ||
Exercise of stock options, shares | 791 | 791 | |||
Treasury shares at cost | -2,017 | -2,017 | |||
Treasury shares at cost, shares | -52,370 | 0 | |||
Stock-based compensation | 3,179 | 3,179 | |||
Stock-based compensation, shares | 356,299 | ||||
Net loss | 41,362 | 41,362 | |||
Balance at Dec. 31, 2013 | 962 | 228,644 | -119,180 | 482,624 | 593,050 |
Balance, shares at Dec. 31, 2013 | 19,363,711 | 19,363,711 | |||
Exercise of stock options | 120 | 120 | |||
Exercise of stock options, shares | 4,165 | 4,165 | |||
Treasury shares at cost | -8,345 | -8,345 | |||
Treasury shares at cost, shares | -232,013 | -205,457 | |||
Restricted shares activity | 1 | -1 | |||
Restricted shares activity, shares | 12,137 | ||||
Stock-based compensation | 4,515 | 4,515 | |||
Net loss | -21,874 | -21,874 | |||
Balance at Dec. 31, 2014 | $963 | $233,278 | ($127,525) | $460,750 | $567,466 |
Balance, shares at Dec. 31, 2014 | 19,148,000 | 19,148,000 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Income (loss) from continuing operations | ($21,874) | $41,362 | ($907) |
Income (loss) from discontinued operations, net of taxes | -29 | ||
Net income (loss) | -21,874 | 41,362 | -936 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 156,117 | 65,529 | 44,896 |
Impairment of natural gas and oil properties | 47,075 | 767 | 14,078 |
Exploration expenses | 31,488 | -9 | 51,379 |
Deferred income taxes | -12,284 | 13,159 | -8,569 |
Gain on sale of assets | -21,961 | ||
Gain from investment in affiliates | -10,651 | -3,554 | -92 |
Stock-based compensation | 4,515 | 3,180 | -154 |
Excess tax benefit from exercise of stock options | -254 | ||
Unrealized loss (gain) on derivative instruments | -1,131 | 1,410 | |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable and other | 28,942 | -6,285 | 19,894 |
Decrease (increase) in prepaid expenses | -19 | 30 | -347 |
Decrease in accounts payable and advances from joint owners | -8,322 | -4,720 | -10,918 |
Increase (decrease) in other accrued liabilities | -4,236 | 3,569 | -877 |
Increase (decrease) in income taxes receivable, net | 884 | 11,778 | -15,117 |
Other | -544 | 782 | -2,861 |
Net cash provided by operating activities | 209,960 | 105,037 | 90,122 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Natural gas and oil exploration and development expenditures | -180,422 | -62,552 | -78,549 |
Sale of oil and gas properties | 20,000 | ||
Advance under note receivable | -500 | ||
Repayment of note receivable | 900 | ||
Investments in affiliates | -15,397 | -54,765 | |
Distributions from affiliates | 5,365 | 23,154 | 8,969 |
Net cash used in investing activities | -175,057 | -34,795 | -123,945 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under credit facility | 491,257 | 180,394 | |
Repayments under credit facility | -517,898 | -90,394 | |
Payment of long-term debt | -235,373 | ||
Cash dividends paid | -30,510 | ||
Purchase of common stock | -8,344 | -2,017 | -8,374 |
Proceeds from exercised options | 120 | 31 | |
Excess tax benefit from exercise/cancellation of stock options | 0 | 254 | |
Debt issuance costs | -38 | -2,370 | |
Net cash used in financing activities | -34,903 | -149,729 | -38,630 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -79,487 | -72,453 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 79,487 | 151,940 | |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $0 | $79,487 |
Organization_And_Business
Organization And Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Business [Abstract] | |
Organization And Business | 1. Organization and Business |
Contango Oil & Gas Company (collectively with its subsidiaries, “Contango” or the “Company”) is a Houston, Texas based, independent oil and natural gas company. The Company’s business is to explore, develop, exploit, produce and acquire crude oil and natural gas properties in the shallow waters of the Gulf of Mexico ("GOM") and in the onshore Texas Gulf Coast and Rocky Mountain regions of the United States. | |
On October 1, 2013, the Company completed a merger with Crimson Exploration Inc. ("Crimson"), in an all-stock transaction pursuant to which Crimson became a wholly-owned subsidiary of Contango (the "Merger"). As a result of the Merger, the Company issued approximately 3.9 million shares of common stock in exchange for all of Crimson's outstanding capital stock. See Note 4 - "Merger with Crimson Exploration, Inc." for additional information. | |
The Company has historically focused operations in the GOM, but the Merger has given the Company access to lower risk, long life resource plays. In 2014, the Company’s drilling activity focused primarily on the Woodbine oil and liquids-rich play in Madison and Grimes counties, Texas (the Southeast Texas Region), on the Buda Limestone oil and liquids-rich play in Zavala and Dimmit counties, Texas (the South Texas Region), in the Cretaceous Sands in Fayette and Gonzales counties, Texas (also the South Texas Region) and the late 2014 commencement of drilling in Wyoming where the Company is targeting multiple formations. The Company believes these plays provide long-term growth potential from multiple formations that it believes to be productive for oil and natural gas. | |
Additionally, the Company has (i) a 37% equity investment in Exaro Energy III LLC (“Exaro”) that is primarily focused on the development of proved natural gas reserves in the Jonah Field in Wyoming; (ii) leasehold positions and minor non-operated producing properties in Louisiana and Mississippi targeting the Tuscaloosa Marine Shale (“TMS”); (iii) operated properties producing from various conventional formations in various counties along the Texas Gulf Coast; (iv) operated producing properties in the Denver Julesburg Basin (“DJ Basin”) in Weld and Adams counties in Colorado, which the Company believes may also be prospective in the Niobrara Shale oil play; (v) operated producing properties in the Haynesville Shale, Mid Bossier and James Lime formations in East Texas; and (vi) six exploratory prospects in the shallow waters of the GOM. | |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies |
Basis of Presentation | |
The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of Contango Oil & Gas Company and its subsidiaries, after elimination of all material intercompany balances and transactions. All wholly-owned subsidiaries are consolidated. Oil and gas exploration and development affiliates which are not controlled by the Company, such as REX, are proportionately consolidated. Financial statements as of December 31, 2014 and 2013 and for the three years ended December 31, 2014 contained herein, include consolidated results of operations of both Contango Oil & Gas Company and Crimson for the period from the closing date of the Merger to December 31, 2014 and only consolidated financial statements of Contango for all other the periods presented herein. | |
Change of Year-End | |
On October 1, 2013 the Company's board of directors approved a change in fiscal year end from June 30 to December 31, commencing with the twelve-month period beginning on January 1, 2014. Unless otherwise noted, all references to "years" in this report refer to the twelve-month period which ends on December 31 of each year. | |
Other Investments | |
Contango’s 19.5% ownership of Moblize Inc. (“Moblize”) and 2.0% indirect ownership of Alta Energy Canada Partnership, LLC ("Alta") are accounted for using the cost method. Under the cost method, Contango records an investment at cost, and recognizes dividends or distributions received as income. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions of cost of the investment. During the year ended December 31, 2013, the Company had a significant distribution from Alta in excess of its original investment. The gain in excess of the original investment is included in the Other income (expense) line item in the Company's statement of operations and in the investing cash flows in the Company's statement of cash flow for the year ended December 31, 2013. | |
The Company has two seats on the board of directors of Exaro and has significant influence, but not control, over the company. As a result, the Company's 37% ownership in Exaro is accounted for using the equity method. Under the equity method, the Company's proportionate share of Exaro's net income increases the balance of its investment in Exaro, while a net loss or payment of dividends decreases its investment. In the consolidated statement of operations, the Company’s proportionate share of Exaro's net income or loss is reported as a single line-item in Gain from investment in affiliates (net of income taxes). | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates include oil and gas revenues, income taxes, stock-based compensation, reserve estimates, impairment of natural gas and oil properties, valuation of derivatives, and accrued liabilities. Actual results could differ from those estimates. | |
Revenue Recognition | |
Revenues from the sale of natural gas and oil produced are recognized upon the passage of title, net of royalties. Revenues from natural gas production are recorded using the sales method. When sales volumes exceed the Company’s entitled share, production imbalance occurs. If production imbalance exceeds the Company’s share of the remaining estimated proved natural gas reserves for a given property, the Company records a liability. As of December 31, 2014, 2013 and 2012, the Company had no significant imbalances. | |
Cash Equivalents | |
Cash equivalents are considered to be highly liquid investment grade debt investments having an original maturity of 90 days or less. As of December 31, 2014, the Company had no cash and cash equivalents. Under the Company’s cash management system, checks issued but not presented to banks frequently result in book overdraft balances for accounting purposes and are classified in accounts payable in the consolidated balance sheets. At December 31, 2014, accounts payable included $12.1 million representing outstanding checks that had not been presented for payment net of cash balance in the bank as of December 31, 2014. At December 31, 2013, accounts payable included $5.9 million representing outstanding checks that had not been presented for payment net of cash balance in the bank as of December 31, 2013. | |
Accounts Receivable | |
The Company sells natural gas and crude oil to a limited number of customers. In addition, the Company participates with other parties in the operation of natural gas and crude oil wells. Substantially all of the Company’s accounts receivables are due from either purchasers of natural gas and crude oil or participants in natural gas and crude oil wells for which the Company serves as the operator. Generally, operators of natural gas and crude oil properties have the right to offset future revenues against unpaid charges related to operated wells. | |
The allowance for doubtful accounts is an estimate of the losses in the Company’s accounts receivable. The Company periodically reviews the accounts receivable from customers for any collectability issues. An allowance for doubtful accounts is established based on reviews of individual customer accounts, recent loss experience, current economic conditions, and other pertinent factors. Amounts deemed uncollectible are charged to the allowance. | |
Accounts receivable allowance for bad debt was $0.6 million, as of December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013 the carrying value of the Company’s accounts receivable approximated fair value. | |
Oil and Gas Properties - Successful Efforts | |
The Company follows the successful efforts method of accounting for its natural gas and oil activities. Under the successful efforts method, lease acquisition costs and all development costs are capitalized. Exploratory drilling costs are capitalized until the results are determined. If proved reserves are not discovered, the exploratory drilling costs are expensed. Other exploratory costs, such as seismic costs and other geological and geophysical expenses, are expensed as incurred. Depreciation, depletion and amortization is calculated on a field by field basis using the unit of production method, with lease acquisition costs amortized over total proved reserves and other capitalized costs amortized over proved developed reserves. | |
Depreciation, depletion and amortization ("DD&A") of capitalized drilling and development costs of producing natural gas and crude oil properties, including related support equipment and facilities net of salvage value, are computed using the unit-of-production method on a field basis based on total estimated proved developed natural gas and crude oil reserves. Amortization of producing leaseholds is based on the unit-of-production method using total estimated proved reserves. Upon sale or retirement of properties, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Unit-of-production rates are revised whenever there is an indication of a need, but at least annually. Revisions are accounted for prospectively as changes in accounting estimates. | |
Other property and equipment are depreciated using the straight-line method over their estimated useful lives which range between three and 13 years. | |
Impairment of Oil and Gas Properties | |
When circumstances indicate that proved properties may be impaired, the Company compares expected undiscounted future cash flows on a field by field basis to the unamortized capitalized cost of the asset. If the estimated future undiscounted cash flows, based on the Company’s estimate of future reserves, natural gas and oil prices, operating costs and production levels from oil and natural gas reserves, are lower than the unamortized capitalized cost, then the capitalized cost is reduced to its fair value. For the year ended December 31, 2014, the Company recorded an impairment expense of approximately $11.4 million related to proved properties. Of this amount, $7.7 million related to South Timbalier 17 and $3.7 million related to TMS. No impairment of proved properties was recognized during the year ended December 31, 2013. For the year ended December 31, 2012, the Company recorded an impairment expense of approximately $14.1 million related to proved properties. Of this amount, approximately $12.0 million related to the Ship Shoal 263 well and $2.1 million related to the Eugene Island 24 platform and other properties. Despite the write-down of Ship Shoal 263, this well reached payout during the year ended December 31, 2012. | |
Unproved properties are reviewed quarterly to determine if there has been an impairment of the carrying value, and any such impairment is charged to expense in the period. | |
On April 29, 2014, the Company reached total depth on its Ship Shoal 255 well, and no commercial hydrocarbons were found. As a result, for the year ended December 31, 2014, the Company recognized $31.5 million in exploration expense for the cost of drilling the well and $15.6 million in impairment expense, including $3.5 million related to leasehold costs and $12.1 million related to the platform located in Ship Shoal 263 block which was expected to be used by the Ship Shoal 255 well had it been successful. | |
During the year ended December 31, 2014, the Company also recognized impairment expense of approximately $20.1 million related to impairment and partial impairment of certain unproved properties due to expiring leases and leases not likely to be drilled. Of this amount, approximately $9.7 million relates to undrilled offshore leases and approximately $9.7 million relates to undeveloped TMS acreage. | |
For the year ended December 31, 2013, the Company recorded an impairment expense on unproved properties of $0.6 million related to leasehold costs on the Ship Shoal 83 prospect which it relinquished in August 2013, and $0.2 million related to leasehold costs on the Brazos Area 543 prospect. The Company did not recognize any impairment of unproved properties for the year ended December 31, 2012. | |
Asset Retirement Obligations | |
ASC 410, Asset Retirement and Environmental Obligations (ASC 410) requires that the fair value of an asset retirement cost, and corresponding liability, should be recorded as part of the cost of the related long-lived asset and subsequently allocated to expense using a systematic and rational method. The Company records asset retirement obligations to reflect the Company's legal obligations related to future plugging and abandonment of its oil and natural gas wells, platforms and associated pipelines and equipment. The Company estimates the expected cash flows associated with the obligation and discounts the amounts using a credit-adjusted, risk-free interest rate. At least annually, the Company reassesses the obligation to determine whether a change in the estimated obligation is necessary. The Company evaluates whether there are indicators that suggest the estimated cash flows underlying the obligation have materially changed. Should these indicators suggest the estimated obligation may have materially changed on an interim basis (quarterly), the Company will accordingly update its assessment. Additional retirement obligations increase the liability associated with new oil and natural gas wells, platforms, and associated pipelines and equipment as these obligations are incurred. The liability is accreted to its present value each period and the capitalized cost is depleted over the useful life of the related asset. The accretion expense is included in depreciation, depletion and amortization expense. | |
The estimated liability is based on historical experience in plugging and abandoning wells. The estimated remaining lives of the wells is based on reserve life estimates and federal and state regulatory requirements. The liability is discounted using an assumed credit-adjusted risk-free rate. | |
Revisions to the liability could occur due to changes in estimates of plugging and abandonment costs, changes in the risk-free rate or changes in the remaining lives of the wells, or if federal or state regulators enact new plugging and abandonment requirements. At the time of abandonment, the Company recognizes a gain or loss on abandonment to the extent that actual costs do not equal the estimated costs. This gain or loss on abandonment is included in impairment and abandonment of oil and gas properties expense. See Note 12 - "Asset Retirement Obligations" for additional information. | |
Income Taxes | |
The Company follows the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements and (ii) operating loss and tax credit carryforwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when, based upon management’s estimates, it is more likely than not that a portion of the deferred tax assets will not be realized in a future period. The Company reviews its tax positions quarterly for tax uncertainties. The Company did not have significant uncertain tax positions as of December 31, 2014. The amount of unrecognized tax benefits did not materially change from December 31, 2013. The amount of unrecognized tax benefits may change in the next twelve months; however, the Company does not expect the change to have a significant impact on its financial position or results of operations. The Company includes interest and penalties in interest income and general and administrative expenses, respectively, in its statement of operations. | |
The Company files income tax returns in the United States and various state jurisdictions. The Company’s federal tax returns for 1998 – 2014, and state tax returns for 2009 – 2014, remain open for examination by the taxing authorities in the respective jurisdictions where those returns were filed. | |
Concentration of Credit Risk | |
Substantially all of the Company’s accounts receivable result from natural gas and oil sales or joint interest billings to a limited number of third parties in the natural gas and oil industry. This concentration of customers and joint interest owners may impact the Company’s overall credit risk in that these entities may be similarly affected by changes in economic and other conditions. See Note 3 - "Concentration of Credit Risk" for additional information. | |
Debt Issuance Costs | |
Debt issuance costs incurred are capitalized and subsequently amortized over the term of the related debt. During the year ended December 31, 2013 the Company incurred $2.2 million of debt issuance costs in relation to the new RBC credit facility entered into in conjunction with the Merger with Crimson. The debt issuance costs will be amortized over the original four year term of the credit line with amortization expense included in Depreciation, Depletion and Amortization line item in the Company's income statement for the years ended December 31, 2014 and 2013. | |
Stock-Based Compensation | |
The Company applies the fair value based method to account for stock based compensation. Under this method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, which generally aligns with the award vesting period. The Company classifies the benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefit) as financing cash flows. The fair value of each award is estimated as of the date of grant using the Black-Scholes option-pricing model. | |
Inventory | |
Inventory primarily consists of casing and tubing which will be used for drilling or completion of wells. Also, included in inventory are items for the repair and maintenance of equipment used on wells and facilities that the Company operates. Inventory is recorded at the lower of cost or market using specific identification method. | |
Derivative Instruments and Hedging Activities | |
The Company accounts for its derivative activities under the provisions of ASC 815, Derivatives and Hedging (ASC 815). ASC 815 establishes accounting and reporting that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at fair value. As of December 31, 2014, the Company has not entered into any derivative contracts to reduce exposure to interest rate risk. However, from time to time, the Company may hedge a portion of its forecasted oil and natural gas production. Derivative contracts entered into by the Company have consisted of transactions in which the Company hedges the variability of cash flow related to a forecasted transactions using variable to fixed swaps and collars. The Company elected to not designate any of its derivative positions for hedge accounting. Accordingly, the net change in the mark-to-market valuation of these positions as well as all payments and receipts on settled derivative contracts are recognized in "Loss on derivatives, net" on the consolidated statements of operations for the years ended December 31, 2014 and 2013. The Company did not have any derivative instruments or hedging activities for the year ending December 31, 2012. Derivative instruments with settlement date within one year are included in current assets or liabilities, whereas derivative instruments with settlement dates exceeding one year are included in non-current assets or liabilities. The Company calculates a net asset or liability for current and non-current derivative instruments for each counterparty based on the settlement dates within the respective contracts. As of December 31, 2014, there were no commodity hedges in place. | |
Reclassifications | |
Certain reclassifications have been made to the presentation of certain balance sheet, income statement and cash flow items in the respective statements for the year ended December 31, 2012 in order to conform to the presentation for the years ended December 31, 2014 and 2013. These reclassifications were not material. | |
Subsidiary Guarantees | |
Contango Oil & Gas Company, as the parent company (the “Parent Company”), filed a registration statement on Form S-3 with the SEC to register, among other securities, debt securities that the Parent Company may issue from time to time. Crimson Exploration Inc., Crimson Exploration Operating, Inc., Contango Energy Company, Contango Operators, Inc., Contango Mining Company, Conterra Company, Contaro Company, Contango Alta Investments, Inc., Contango Venture Capital Corporation and any other of the Company’s future subsidiaries specified in the prospectus supplement (each a “Subsidiary Guarantor”) are Co-Registrants with the Parent Company under the registration statement, and the registration statement also registered guarantees of debt securities by the Subsidiary Guarantors. The Subsidiary Guarantors are wholly-owned by the Parent Company, either directly or indirectly, and any guarantee by the Subsidiary Guarantors will be full and unconditional. The Parent Company has no assets or operations independent of the Subsidiary Guarantors, and there are no significant restrictions upon the ability of the Subsidiary Guarantors to distribute funds to the Parent Company. The Parent Company has one other wholly-owned subsidiary that is inactive. Finally, the Parent Company’s wholly-owned subsidiaries do not have restricted assets that exceed 25% of net assets as of the most recent fiscal year end that may not be transferred to the Parent Company in the form of loans, advances or cash dividends by such subsidiary without the consent of a third party. | |
Recent Accounting Pronouncements | |
In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-01: Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01). ASU 2015-01 is part of an initiative to reduce complexity in accounting standards. This update eliminates from generally accepted accounting principles the concept of extraordinary items, which eliminates the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary. However, this will not result in a loss of information as the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015; early application is permitted. The provisions of this accounting update are not expected to have a material impact on the Company’s financial position or results of operations. | |
In November 2014, the FASB issued Accounting Standards Update No. 2014-17: Business Combinations (Topic 805): Pushdown Accounting (ASU 2014-17). ASU 2014-17 addresses the limited guidance available for determining whether and at what threshold pushdown accounting should be established in an acquired entity’s separate financial statements. Thus, the amendments in this update provide an acquired entity with an option to apply pushdown accounting upon occurrence of an event in which an acquirer obtains control of the acquired entity. Furthermore, the amendments in this update provide specific guidance on pushdown accounting for all entities, and the threshold for pushdown accounting is consistent with the threshold for change-in-control events in Topic 805, Business Combinations, and Topic 810, Consolidation. ASU 2014-17 became effective on November 18, 2014. The provisions of this accounting update are not expected to have a material impact on the Company’s financial position or results of operations. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15: Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15 asserts that management should evaluate whether there are relevant condition or events that are known and reasonably knowable that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued or are available to be issued when applicable. If conditions or events at the date the financial statements are issued raise substantial doubt about an entity’s ability to continue as a going concern, disclosures are required which will enable users of the financial statements to understand the conditions or events as well as management’s evaluation and plan. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter; early application is permitted. The provisions of this accounting update are not expected to have a material impact on the Company’s financial position or results of operations. | |
In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued new accounting guidance for recognition of revenue Accounting Standards Update No. 2014-09: Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). This new guidance replaces virtually all existing US GAAP and IFRS guidance on revenue recognition. ASU 2014-09 is effective for fiscal years beginning after December 15, 2016. This new guidance applies to all periods presented. Therefore, when the Company issues its financial statements on Forms 10-Q and 10-K for periods included in its year ended December 31, 2017, its comparative periods that are presented from the years ended December 31, 2015 and 2016, must be retrospectively presented in compliance with this new guidance. Early adoption is not allowed for US GAAP. The new guidance requires companies to make more estimates and use more judgment than under current accounting guidance. The Company does not anticipate that this new guidance will have a material impact on the Company’s consolidated financial position or results of operations for the periods presented. | |
In April 2014, the FASB issued Accounting Standards Update No. 2014-08: Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). ASU 2014-08 changes the criteria for reporting discontinued operations while enhancing disclosures in this area. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. ASU 2014-08 is effective for annual and interim periods beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance of ASU 2014-08 is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |
In May 2013, the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"), revised its criteria related to internal controls over financial reporting from the originally established 1992 Internal Control - Integrated Framework with 2013 Internal Control - Integrated Framework. The modified framework provides enhanced guidance that ties control objectives to the related risk, enhancement of governance concepts, increased emphasis on globalization of markets and operations, increased recognition of use and reliance on information technology, increased discussion of fraud as it relates to internal control, changes of control deficiency descriptions, and that internal reporting is included in both financial and nonfinancial objectives. The revised framework is effective for interim and annual periods beginning after December 15, 2013, with early adoption being permitted. The Company implemented the changes required by the new COSO framework during the year ended December 31, 2014. The Company will continue to assess the impact, if any, it may have on its internal control structure. | |
In February 2013, the FASB issued Accounting Standards Update No. 2013-04 Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (ASU 2013-04). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. The accounting update is effective for interim and annual periods beginning after December 15, 2013. The Company evaluated the provisions of this accounting update and does not believe it has a material impact on its financial position and results of operations. | |
Further, management is closely monitoring the joint standard-setting efforts of the FASB and the International Accounting Standards Board. There are a large number of pending accounting standards that are being targeted for completion in 2015 and beyond, including, but not limited to, accounting for leases, fair value measurements, accounting for financial instruments, disclosure of loss contingencies and financial statement presentation. Because these pending standards have not yet been finalized, management is not able to determine the potential future impact that these standards will have, if any, on the Company's financial position, results of operations, or cash flows. | |
Concentration_Of_Credit_Risk
Concentration Of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Concentration Of Credit Risk [Abstract] | |
Concentration Of Credit Risk | 3. Concentration of Credit Risk |
The customer base for the Company is concentrated in the natural gas and oil industry. Major purchasers of the Company’s natural gas, oil and natural gas liquids for the year ended December 31, 2014 were ConocoPhillips Company (31%), Sunoco Inc. (27%), Shell Trading US Company (10%), ExxonMobil Oil Corp. (7%) and Enterprise Products Operating LLC (5%). The Company’s sales to these companies are not secured with letters of credit and in the event of non-payment, the Company could lose up to two months of revenues. The loss of two months of revenues would have a material adverse effect on the Company’s financial position. There are numerous other potential purchasers of the Company’s production. | |
Merger_With_Crimson_Exploratio
Merger With Crimson Exploration Inc. | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Merger With Crimson Exploration Inc. | 4. Merger with Crimson Exploration Inc. | ||||||
On October 1, 2013, the Company completed the Merger with Crimson. The Merger was effected pursuant to an Agreement and Plan of Merger, dated as of April 29, 2013, by and among Contango, Crimson and certain subsidiaries (the “Merger Agreement”). | |||||||
As a result of the Merger, each share of Crimson common stock was converted into 0.08288 shares of common stock of Contango, and the Company issued approximately 3.9 million shares of common stock in exchange for all of Crimson's outstanding capital stock, resulting in Crimson stockholders owning 20.3% of the post-merger Contango. | |||||||
The Merger qualified as a tax-free reorganization for U.S. federal income tax purposes, so that none of the Company, Crimson, or any of its stockholders recognized any gain or loss in the Merger, except that Crimson's stockholders may have recognized gain or loss with respect to cash received in lieu of fractional shares of Company common stock. | |||||||
The Merger was accounted for as a business combination in accordance with ASC 805 which, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. Crimson's results of operations are reflected in the Company's consolidated statement of operations, beginning October 1, 2013. | |||||||
The following table summarizes the consideration transferred and the fair value of assets acquired, and liabilities assumed as of the date of the Merger (in thousands, except for number of shares and share price): | |||||||
Consideration transferred: | |||||||
Crimson common stock to be acquired by the Company | 46,624,721 | ||||||
Exchange ratio of the Company common shares for each Crimson common share | 0.08288 | ||||||
The Company common stock to be issued to Crimson stockholders | 3,864,101 | ||||||
Closing price of the Company common stock on October 1, 2013 | $ | 37.75 | |||||
Fair value of common stock issued | $ | 145,870 | |||||
Cash paid for partial shares | 6 | ||||||
Fair value of stock options issued | 698 | ||||||
Total estimated consideration transferred | $ | 146,574 | |||||
Fair value of other liabilities assumed: | |||||||
Current liabilities | $ | 60,124 | |||||
Long-term debt | 235,373 | ||||||
Asset retirement obligations and other non-current liabilities | 12,967 | ||||||
Amount attributable to liabilities assumed | 308,464 | ||||||
Total consideration including liabilities assumed | $ | 455,038 | |||||
Fair value of assets acquired: | |||||||
Current assets | $ | 13,492 | |||||
Current and non-current deferred tax asset, net | 24,905 | ||||||
Natural gas and oil properties, net | 416,433 | ||||||
Other non-current assets | 208 | ||||||
Amount attributable to net assets acquired | $ | 455,038 | |||||
Goodwill | $ | — | |||||
As of December 31, 2013, estimates of the fair value of assets acquired and liabilities assumed were preliminary and based on information available at that time. The fair value estimate of certain of Crimson's assets and liabilities, including asset retirement obligations and current and deferred tax balances, could not be finalized at December 31, 2013 due to information not being available to the Company. During the quarter ended June 30, 2014, the Company completed an analysis of Crimson’s asset retirement obligations as of the acquisition date. Based on this analysis, the Company recorded a measurement period adjustment of $2.5 million to increase the asset retirement obligations liability. As of September 30, 2014, the Company had finalized the purchase price allocation for the Merger. | |||||||
Consideration paid by the Company consisted of approximately 3.9 million shares of Contango’s common stock issued in exchange for 46.6 million of Crimson’s shares outstanding as of September 30, 2013, including restricted stock vesting at the Transaction date and approximately 136,000 of vested Contango stock options issued to Crimson’s employees in exchange for all Crimson stock options issued and outstanding as of September 30, 2013. The number of options granted and the strike price of the options was adjusted using the same conversion ratio as for the exchange of common stock. All of Crimson’s restricted shares and stock options vested immediately prior to the merger. | |||||||
The purchase price was calculated assuming fair value of the Company’s stock of $37.75 per share based upon the closing price of the Company’s common stock as of October 1, 2013. | |||||||
Fair value of the Company’s options issued in exchange for Crimson’s stock options was calculated using the Black-Scholes Model by applying the following weighted-average assumptions: (a) risk-free interest rate of 0.62% to 1.35%; (b) expected life of 2.70 to 4.79 years; (c) expected volatility of 29.3% to 38.6%; and (d) expected dividend yield of 0%. The weighted average fair value per share for the options was estimated to be $5.14. | |||||||
Immediately subsequent to the closing of the Merger, the Company assumed and immediately repaid Crimson’s $175.0 million term loan with Barclays Bank PLC ("Barclays") and other lenders, its $58.6 million in loans outstanding under its senior revolving credit facility with Wells Fargo and other lenders, and $1.8 million in accrued interest and prepayment premiums. | |||||||
In order to finance the assumed debt, the Company entered into a $500 million four-year revolving credit facility with Royal Bank of Canada and other lenders (the “RBC Credit Facility”) with an initial hydrocarbon supported borrowing base of $275 million. The RBC Credit Facility replaced the Company's $40 million revolving credit facility with Amegy Bank. The Company incurred $2.2 million of arrangement and upfront fees in connection with the RBC Credit Facility. Borrowings under the RBC Credit Facility bear interest at a rate that is dependent upon LIBOR or the U.S. prime rate of interest, plus a margin dependent upon the amount outstanding. On October 1, 2013, the $235.4 million of assumed debt, accrued interest, and prepayment premium and $2.2 million of arrangement and upfront fees under the RBC Credit Facility were paid with the Company's existing cash of $127.6 million and drawings under the Company’s RBC Credit Facility of $110.0 million. For the period from October 1, 2013 through December 31, 2013, the effective interest rate on the facility was 2.2%. | |||||||
Fair value of the deferred tax liabilities was calculated giving the tax effect of step-up adjustment for oil and gas properties. Contango received carryover tax basis in Crimson’s assets and liabilities because the merger is not a taxable transaction under the United States Internal Revenue Code. Based upon the purchase price allocation, a step-up in financial reporting carrying value related to the property to be acquired from Crimson resulted in an additional deferred tax liability of approximately $42.8 million assuming a 37% expected effective tax rate of the combined company. | |||||||
Additionally, fair value of the deferred tax assets was increased by approximately $10.2 million due to elimination of a valuation allowance included in the historical financial statements of Crimson. This adjustment is based on the expectation that it is more likely than not that the majority of $110 million of Crimson’s accumulated Net Operating Losses ("NOLs") will be realized by the combined company in the foreseeable future. The fair value of Crimson’s oil and gas properties acquired was determined by using commodity prices based on future expected prices for oil, natural gas and NGLs, after adjustment for transportation fees and regional price differentials. | |||||||
There is no goodwill attributable to the Merger as the consideration transferred did not exceed the fair value of Crimson's net assets acquired on October 1, 2013. | |||||||
Crimson contributed revenues of $143.4 million and pre-tax income of $4.9 million to the Company for the year ended December 31, 2014. Crimson contributed revenues of $33.4 million and a loss of $0.7 million to the Company for the period from October 1, 2013 to December 31, 2013. The following unaudited pro forma summary presents consolidated information of the Company as if the Merger had occurred on January 1, 2012 (in thousands): | |||||||
Year Ended December 31 | |||||||
2013 | 2012 | ||||||
(Unaudited) | |||||||
Revenue | $ | 256,594 | $ | 261,772 | |||
Net income (loss) | $ | 40,166 | $ | -83,912 | |||
The unaudited pro forma amounts have been calculated after applying the Company's accounting policies and adjusting the results of Crimson to reflect the additional depletion that would have been charged assuming the fair value adjustment to oil and gas properties had been applied from January 1, 2012, together with the consequential tax effects. The pro forma depletion for each period presented was calculated based on the value of the oil and gas properties acquired giving effect to the fair value adjustments as a result of acquisition accounting and estimated DD&A rate for each period. This depletion rate was calculated by dividing production for the period by the beginning of the period proved reserves (calculated by adding back production to the ending proved reserves as of December 31, 2013). The combined historical depreciation, depletion and amortization expenses for the year ended December 31, 2013 and 2012 were increased by $1.9 million and $7.5 million, respectively, including $0.6 million and $0.4 million related to amortization of debt issuance costs for a new credit facility. | |||||||
The pro forma interest expense for each period presented was adjusted to reflect the results of the repayment of the $175 million principal balance of the Second Lien Loan using cash available at the Merger date and total borrowings of $110.0 million under the new RBC Credit Facility, as if such repayment had occurred on January 1, 2012, which reduced total combined interest expenses for the years ended December 31, 2013 and 2012 by $16.0 million and $21.3 million, respectively. The expense related to the amortization of the original issue discount on the Second Lien Loan was also eliminated for each period. The reduction in interest expense is offset by amortization of the debt issuance costs related to the debt refinancing which took take place at the Merger date, net of amortization related to the debt issuance costs for the historical Crimson First and Second Lien agreement that was refinanced upon closing of the Merger. | |||||||
The pro forma net income was not adjusted for combined historical impairment charges of $2.9 million and $132.0 million for the years ended December 31, 2013 and 2012, respectively. | |||||||
Historical financial statements of Contango for the year ended December 31, 2013 include approximately $6.8 million of Merger related costs, including bankers success fees of $2.8 million and an accrued expense of $1.3 million related to bonus payable to Mr. Joseph J. Romano as a result of successfully completing the Merger. These expenses are included in general and administrative expense in the Company's consolidated statements of income for the respective periods. | |||||||
Pro forma net income for the year ended December 31, 2013 does not include $5.7 million of stock based compensation expenses related to vesting of Crimson stock options on October 1, 2013 as a result of the Merger, amortization of debt issuance cost of $0.8 million, amortization of the remaining balance of debt discount of $3.7 million for Crimson debt as of the date of the Merger, and other Merger related costs, including $2.8 million bankers success fees, which were recognized in Crimson's results of operations for the period October 1, 2013, which is not included in consolidated financial statements of the Company. Pro forma net income also does not include benefit related to release of valuation allowance of $10.2 million in relation with the Merger. Although such expenses relate to the Merger, they do not represent recurring expenses and, therefore, are not included in the pro forma results of operations. | |||||||
Acquisitions_Dispositions_And_
Acquisitions, Dispositions And Gains From Affiliates | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions, Dispositions And Gains From Affiliates | 5. Acquisitions, Dispositions and Gains from Affiliates |
Acquisition of Additional Interest in Dutch | |
In December 2013, the Company exercised a preferential right and purchased an additional 7.84% working interest and 6.53% net revenue interest in the five Contango-operated Dutch wells from an independent oil and gas company for $18.8 million, subject to a purchase price adjustment, based on production and operating expenses between the effective date of July 1, 2013 and the closing date of December 12, 2013. During 2014, a purchase price adjustment of approximately $4.1 million reduced the purchase price to a total of $14.7 million, net to the Company. | |
Southeast Texas Disposition | |
On December 31, 2013, the Company sold to an independent oil and gas company approximately 7.1% of its interest in all developed and undeveloped properties in Madison and Grimes Counties for $20 million, subject to a purchase price adjustment, based on production and operating expenses between the effective date of July 1, 2013 and the closing date of December 31, 2013. A preliminary estimated adjustment to the sales price of approximately $0.4 million to increase the purchase price was recorded in 2013, and an adjustment of approximately $0.1 million to reduce the purchase price was recorded in 2014 resulting in final proceeds of $20.3 million. A loss of approximately $0.2 million and a gain of approximately $6.6 million related to this sale were recognized in the years ended December 31, 2014 and 2013, respectively. | |
Proceeds from Alta | |
In August 2013, Alta sold its interest in the liquids-rich Kaybob Duvernay, which closed in October 2013 for approximately $30.5 million, net to Contango. Contango has a 2% interest in Alta and a 5% interest in the Kaybob Duvernay project. The total distribution received from Alta during the year ended December 31, 2013 was approximately $23.1 million. An additional $5.4 million was received during 2014. The Company expects to receive the remaining $2.0 million within the next twelve months. The total distributions from Alta are expected to exceed the Company’s original investment by $15.3 million. | |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||
Fair Value Measurements | 6. Fair Value Measurements | ||||||||||||
Pursuant to ASC 820, Fair Value Measurements and Disclosures (ASC 820), the Company's determination of fair value incorporates not only the credit standing of the counterparties involved in transactions with the Company resulting in receivables on the Company's consolidated balance sheets, but also the impact of the Company's nonperformance risk on its own liabilities. ASC 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 (exit price). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 measurements are inputs that are observable for assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. | |||||||||||||
The following table sets forth by level within the fair value hierarchy the Company's financial assets and liabilities that were accounted for at fair value as of December 31, 2013. As required by ASC 820, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There have been no transfers between Level 1, Level 2 or Level 3. | |||||||||||||
Fair value information for financial assets and (liabilities) was as follows at December 31, 2013 (in thousands): | |||||||||||||
Total | Fair Value Measurements Using | ||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||
Derivatives | |||||||||||||
Commodity price contracts - assets | $ | 76 | $ | — | $ | 76 | $ | — | |||||
Commodity price contracts - liabilities | $ | -1,207 | $ | — | $ | -1,207 | $ | — | |||||
The Company did not have any outstanding commodity price contracts as of December 31, 2014. | |||||||||||||
Derivatives listed above include swaps and collars that are carried at fair value. The Company records the net change in the fair value of these positions in "Gain (loss) on derivatives, net" in the Company's consolidated statements of operations. The Company is able to value the assets and liabilities based on observable market data for similar instruments, which resulted in the Company reporting its derivatives as Level 2. This observable data includes the forward curves for commodity prices based on quoted markets prices and implied volatility factors related to changes in the forward curves. See Note 7 - "Derivative Instruments" for additional discussion of derivatives. | |||||||||||||
As of December 31, 2013, the Company's derivative contracts were with major financial institutions with investment grade credit ratings which are believed to have a minimal credit risk. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties in the derivative contracts discussed above; however, the Company does not anticipate such nonperformance. Some of the counterparties to the Company's current derivative contracts are lenders in the Company's RBC Credit Facility. The Company did not post collateral under any of these contracts as they are secured under the RBC Credit Facility. | |||||||||||||
Estimates of the fair value of financial instruments are made in accordance with the requirements of ASC 825, Financial Instruments. The estimated fair value amounts have been determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to their short-term nature. The estimated fair value of the Company's RBC Credit Facility approximates carrying value because the interest rate approximates current market rates and are re-set at least every three months. See Note 13 - "Long-Term Debt" for further information. | |||||||||||||
Fair value estimates used for non-financial assets are evaluated at fair value on a non-recurring basis include oil and gas properties evaluated for impairment when facts and circumstances indicate that there may be an impairment. If the unamortized cost of properties exceeds the undiscounted cash flows related to the properties, the value of the properties is compared to the fair value estimated as discounted cash flows related to the risk-adjusted proved, probable and possible reserves related to the properties. Fair value measurements based on these inputs are classified as Level 3. | |||||||||||||
Impairments | |||||||||||||
Contango tests proved oil and gas properties for impairment when events and circumstances indicate a decline in the recoverability of the carrying value of such properties, such as a downward revision of the reserve estimates or lower commodity prices. The Company estimates the undiscounted future cash flows expected in connection with the oil and gas properties on a field by field basis and compares such future cash flows to the unamortized capitalized costs of the properties. If the estimated future undiscounted cash flows are lower than the unamortized capitalized cost, the capitalized cost is reduced to its fair value. The factors used to determine fair value include, but are not limited to, estimates of proved and probable reserves, future commodity prices, the timing of future production and capital expenditures and a discount rate commensurate with the risk reflective of the lives remaining for the respective oil and gas properties. Additionally, the Company may use appropriate market data to determine fair value. Because these significant fair value inputs are typically not observable, impairments of long-lived assets are classified as a Level 3 fair value measure. | |||||||||||||
Asset Retirement Obligations | |||||||||||||
The initial measurement of ARO at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. The factors used to determine fair value include, but are not limited to, estimated future plugging and abandonment costs and expected lives of the related reserves. | |||||||||||||
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Derivative Instruments [Abstract] | ||||||||||
Derivative Instruments | 7. Derivative Instruments | |||||||||
The Company is exposed to certain risks relating to its ongoing business operations, such as commodity price risk. Derivative contracts are utilized to 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. Recently, the Company had hedged a substantial, but varying, portion of anticipated oil and natural gas production for future periods. The Company believes that these derivative arrangements, although not free of risk, allowed us to achieve a more predictable cash flow and to reduce exposure to commodity price fluctuations. However, derivative arrangements limit the benefit of increases in the prices of crude oil, natural gas and natural gas liquids sales. Moreover, the Company’s derivative arrangements applied only to a portion of its production and provided only partial protection against declines in commodity prices. Such arrangements may expose us to risk of financial loss in certain circumstances. The Company continuously reevaluates its hedging programs in light of changes in production, market conditions, and commodity price forecasts. | ||||||||||
As of December 31, 2014, the Company did not have any outstanding derivative positions. 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. A costless collar consists of a sold call, which establishes a maximum price the Company will receive for the volumes under contract and a purchased put that establishes a minimum price. A sold put option limits the exposure of the counterparty's risk should the price fall below the strike price. Sold put options limit the effectiveness of purchased put options at the low end of the put/call collars to market prices in excess of the strike price of the put option sold. | ||||||||||
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 market makers. The counterparties to the Company's previous derivative contracts were lenders or affiliates of lenders in the RBC Credit Facility. The Company did not post collateral under any of these contracts as they are secured under the RBC Credit Facility. | ||||||||||
The Company has elected not to designate any of its derivative contracts for hedge accounting. Accordingly, derivatives are carried at fair value on the consolidated balance sheets as assets or liabilities, with the changes in the fair value included in the consolidated statements of operations for the period in which the change occurs. 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 "Gain (loss) on derivatives, net" on the consolidated statements of operations. See Note 6 – “Fair Value Measurements” for additional information. | ||||||||||
There was no activity or outstanding derivative contracts during the year ended December 31, 2012. | ||||||||||
The following summarizes the fair value of commodity derivatives outstanding on a gross and net basis as of December 31, 2013 (in thousands): | ||||||||||
Gross | Netting (1) | Total | ||||||||
Assets | $ | 76 | $ | -76 | $ | — | ||||
Liabilities | $ | -1,207 | $ | 76 | $ | -1,131 | ||||
-1 | Represents counterparty netting under agreements governing such derivatives | |||||||||
The following table summarizes the effect of derivative contracts on the Consolidated Statements of Operations for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||
Year ended December 31, | ||||||||||
Contract Type | 2014 | 2013 | ||||||||
Crude oil contracts | $ | 276 | $ | 180 | ||||||
Natural gas contracts | -1,560 | 98 | ||||||||
Realized gain (loss) | $ | -1,284 | $ | 278 | ||||||
Crude oil contracts | $ | 1,183 | $ | -1,179 | ||||||
Natural gas contracts | -52 | -231 | ||||||||
Unrealized gain (loss) | $ | 1,131 | $ | -1,410 | ||||||
Gain (loss) on derivatives, net | $ | -153 | $ | -1,132 | ||||||
There were no gains or losses related to derivative instruments for the year ended December 31, 2012. | ||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||
Stock-Based Compensation | 8. Stock Based Compensation | |||||||||||||||||
As of December 31, 2014, the Company had in place a share-based compensation program which allows for stock options and/or restricted stock to be awarded to officers, directors and employees as a performance-based award or granted upon initial employment as part of their overall compensation package. This program includes (i) the Company's Amended and Restated 2009 Incentive Compensation Plan (the “2009 Plan”); and (ii) the Crimson 2005 Stock Incentive Plan (the “2005 Plan” or "Crimson Plan") adopted in conjunction with the Merger. | ||||||||||||||||||
Amended and Restated 2009 Incentive Compensation Plan | ||||||||||||||||||
On September 15, 2009, the Company’s Board of Directors (the “Board”) adopted the Contango Oil & Gas Company Equity Compensation Plan (the “Original 2009 Plan”). On April 10, 2014, the Board amended and restated the Original 2009 Plan thorugh the adoption of the Contango Oil & Gas Company Amended and Restated 2009 Incentive Compensation Plan. The 2009 Plan provides for both cash awards and equity awards (such as restricted stock and options) to officers, directors, employees or consultants of the Company. Awards made under the 2009 Plan are subject to such restrictions, terms and conditions, including forfeitures, if any, as may be determined by the Board. | ||||||||||||||||||
Under the terms of the 2009 Plan, up to 1,500,000 shares of the Company’s common stock may be issued for plan awards. Stock options under the 2009 Plan must have an exercise price of each option equal to or greater than the market price of the Company’s common stock on the date of grant. The Company may grant officers and employees both incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, and stock options that are not qualified as incentive stock options. Stock option grants to non-employees, such as directors and consultants, can only be stock options that are not qualified as incentive stock options. Options granted generally expire after five or ten years. The vesting schedule varies, and can vest over a two, three or four-year period. | ||||||||||||||||||
As of December 31, 2014, the Company had approximately 1.1 million shares of common stock and stock options available for future grant under the 2009 Plan. On February 24, 2014, the Company granted 1,103 restricted stock awards under the 2009 Plan. | ||||||||||||||||||
Effective January 1, 2014, the Company implemented performance-based long-term bonus plans under the 2009 Plan for the benefit of all employees through a Cash Incentive Bonus Plan (“CIBP”) and a Long-Term Incentive Plan (“LTIP”). The specific targeted performance measures under these sub-plans are approved by the Compensation Committee and/or the Board. Upon achieving the performance levels established each year, bonus awards under the CIBP and LTIP will be calculated as a percentage of base salary of each employee for the plan year. The CIBP and LTIP plan awards for each year are expected to be disbursed in the first quarter of the following year. Employees must be employed by the Company at the time that awards are disbursed to be eligible. | ||||||||||||||||||
The CIBP awards will be paid in cash while LTIP awards will consist of restricted common stock and/or stock options. The stock and/or option awards are expected to vest 25% per year, over the first through fourth anniversaries from the date of grant. The number of shares of restricted common stock and the number of shares underlying the stock options granted will be determined based upon the fair market value of the common stock on the date of the grant. | ||||||||||||||||||
2005 Stock Incentive Plan | ||||||||||||||||||
The 2005 Plan was adopted by the Company's Board in conjunction with the Merger with Crimson. Under the 2005 Plan, the Board may grant incentive stock options, nonstatutory stock options, restricted awards, unrestricted awards, performance awards, stock appreciation rights and dividend equivalent rights to eligible officers, directors, employees or consultants of the Company and its affiliates. Awards made under the 2005 Plan are subject to such terms and conditions, without limitation, as may be determined by the Board. Options granted generally expire after ten years. The vesting schedule varies but generally vests over a one or four-year period. Upon adoption of the 2005 Plan at the Merger closing date, a total of 135,898 stock option awards and 136,428 shares of restricted stock (as converted, which all fully vested upon the Merger) were already issued and outstanding, leaving a balance of 43,472 shares of common stock or stock options available to be granted to Company employees and directors. | ||||||||||||||||||
As of December 31, 2014, there were 7,030 shares of common stock and stock options available to be granted under the 2005 Plan. On February 24, 2015, the Company granted 7,030 restricted stock awards under the 2005 Plan to a new employee. This plan expired on February 25, 2015. | ||||||||||||||||||
1999 Stock Incentive Plan | ||||||||||||||||||
The Company’s 1999 Stock Incentive Plan (the “1999 Plan”) expired in August 2009. The final 45,000 outstanding options issued under the 1999 Plan were exercised and sold to the Company in February 2012. | ||||||||||||||||||
Stock Options | ||||||||||||||||||
During the year ended December 31, 2014, the Company did not issue any stock options. However, 4,165 stock options that were previously issued were exercised and the resulting shares of common stock were sold in the open market, leaving 129,934 stock options vested and exercisable at December 31, 2014, with exercise prices ranging from $25.70 to $60.33 per share, with an average remaining contractual life of six years. | ||||||||||||||||||
During the year ended December 31, 2013, employees exercised 791 stock options to purchase shares of the Company’s common stock that were sold in the open market. | ||||||||||||||||||
A summary of the stock options granted under the 1999 Plan, 2009 Plan, and 2005 Plan as of and for the years ended December 31, 2014, 2013, and 2012 is presented in the table below (dollars in thousands, except per share data): | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | |||||||||||||
Under | Exercise | Under | Exercise | Under | Exercise | |||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||
Outstanding, beginning of the period | 135,107 | $ | 53.00 | — | $ | — | 45,000 | $ | 54.21 | |||||||||
Options assumed due to Merger | — | $ | — | 135,898 | $ | 52.90 | — | $ | — | |||||||||
Exercised | -4,165 | $ | 28.93 | -791 | $ | 36.16 | — | $ | — | |||||||||
Canceled / Forfeited (1) | -1,008 | $ | 42.39 | — | $ | — | -45,000 | $ | 54.21 | |||||||||
Outstanding, end of year | 129,934 | $ | 53.85 | 135,107 | $ | 53.00 | — | $ | — | |||||||||
Aggregate intrinsic value | $ | 4 | $ | 459 | $ | — | ||||||||||||
Exercisable, end of year | 129,934 | $ | 53.85 | 135,107 | $ | 53.00 | — | $ | — | |||||||||
Aggregate intrinsic value | $ | 4 | $ | 459 | $ | — | ||||||||||||
Available for grant, end of the period | 1,143,006 | 1,162,173 | 1,475,000 | |||||||||||||||
Weighted average fair value of options granted during the period | $ | — | $ | — | $ | — | ||||||||||||
-1 | For the year ended December 31, 2012, forfeited options consist of options that were net-settled for cash with the Company. | |||||||||||||||||
Under the fair value method of accounting for stock options, cash flows from the exercise of stock options resulting from tax benefits in excess of recognized cumulative compensation cost (excess tax benefits) are classified as financing cash flows. For the year ended December 31, 2014, there was an insignificant excess tax benefit recognized. For the year ended December 31, 2013, there was no excess tax benefits recognized. For the year ended December 31, 2012, approximately $0.3 million of such excess tax benefits were classified as financing cash flows, respectively. See Note 2 – "Summary of Significant Accounting Policies". | ||||||||||||||||||
Compensation expense related to employee stock option grants are recognized over the stock option’s vesting period based on the fair value at the date the options are granted. The fair value of each option is estimated as of the date of grant using the Black-Scholes options-pricing model. | ||||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company did not recognize any stock option expense. During the year ended December 31, 2012, the Company recognized a stock option gain of approximately $154,000 due to evaluating the market price of options on a quarterly basis. The aggregate intrinsic value of stock options exercised/forfeited during the years ended December 31, 2014, 2013 and 2012 was approximately $59,009, $7,721 and $0.5 million, respectively. | ||||||||||||||||||
Restricted Stock | ||||||||||||||||||
During the year ended December 31, 2014, the Company issued 10,714 restricted stock awards to new and existing employees, which vest over four years, plus an additional 15,672 restricted stock awards to the board of directors which vest on the one-year anniversary of the date of grant. The weighted average fair value of the restricted shares granted during the year, was $40.83 with a total fair value of approximately $1.1 million after adjustment for estimated weighted average forfeiture rate of 2.2%. | ||||||||||||||||||
In November 2013, the Company issued 254,677 shares of restricted common stock to senior officers and certain other vice presidents, of which 25 percent vested immediately and the remaining balance vests over a three-year period. Also in November 2013, the Company issued 1,802 shares of restricted common stock to newly hired employees as part of their compensation package, which vest over a four-year period. In December 2013, the Company issued 88,466 shares of restricted common stock to Company employees which vest over a four-year period, plus an additional 11,354 shares of restricted common stock to the board of directors as compensation pursuant to the Company’s new director compensation plan which vest on the one-year anniversary of the date of grant. The weighted average fair value of the restricted shares granted during the fourth quarter of 2013, was $44.10 with a total fair value of approximately $8.1 million after adjustment for estimated weighted average forfeiture rate of 5.7%. | ||||||||||||||||||
The Company did not grant any shares of restricted stock for the year ended December 31, 2012 and did not have any restricted shares outstanding as of December 31, 2012. | ||||||||||||||||||
Restricted stock activity as of December 31, 2014 and 2013 and for the years then ended is presented in the table below (dollars in thousands, except per share data): | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Weighted | Weighted | |||||||||||||||||
Restricted | Average | Aggregate | Restricted | Average | Aggregate | |||||||||||||
Shares | Fair Value | Intrinsic Value | Shares | Fair Value | Intrinsic Value | |||||||||||||
Outstanding, beginning of the period | 292,632 | $ | 44.38 | $ | 13,830 | — | $ | — | $ | — | ||||||||
Granted | 26,386 | 40.83 | 1,073 | 356,299 | 44.10 | 15,723 | ||||||||||||
Vested | -94,807 | 44.11 | 3,454 | -63,667 | 42.80 | 2,725 | ||||||||||||
Canceled / Forfeited | -14,249 | 47.30 | 579 | — | — | — | ||||||||||||
Not vested, end of the period | 209,962 | 43.86 | 6,139 | 292,632 | 44.38 | 13,830 | ||||||||||||
Vested, end of the period | — | — | — | — | — | — | ||||||||||||
Expected to vest, end of the period | 192,570 | 43.84 | 5,631 | 260,359 | 44.36 | 12,305 | ||||||||||||
During the year ended December 31, 2014, the Company recognized approximately $4.5 million in stock compensation expense. During the quarter ended December 31, 2013, the Company recognized approximately $3.2 million in stock compensation expense for restricted shares granted to its officers, employees and directors. An additional $7.7 million of compensation expense will be recognized over the remaining vesting period. | ||||||||||||||||||
Share_Repurchase_Programs
Share Repurchase Programs | 12 Months Ended |
Dec. 31, 2014 | |
Share Repurchase Programs [Abstract] | |
Share Repurchase Programs | 9. Share Repurchase Program |
In September 2011, the Company’s board of directors approved a $50 million share repurchase program. All shares are to be purchased in the open market or through privately negotiated transactions. Purchases are made subject to market conditions and certain volume, pricing and timing restrictions to minimize the impact of the purchases upon the market, and when the Company believes its stock price to be undervalued. Repurchased shares of common stock became authorized but unissued shares, and may be issued in the future for general corporate and other purposes. During the year ended December 31, 2014, the Company purchased 205,457 shares at an average price of $35.89 per share, for a total of approximately $7.4 million. No shares were purchased during the year ended December 31, 2013. During the year ended December 31, 2012, the Company purchased 162,214 shares at an average price of $51.62 per share, for a total of approximately $8.4 million, plus it net-settled 45,000 stock options from two employees for a total of $465,000. | |
As of December 31, 2014, the Company had invested $18.2 million in this share repurchase program to purchase 403,334 shares and net-settled 45,000 stock options from two officers, leaving $31.8 million available for future purchases. | |
In October 2014, the Company amended its revolving credit facility with Royal Bank of Canada to, among other things, allow for share repurchases subject to certain conditions. The Company is currently in compliance with these additional restrictions. | |
Other_Financial_Information
Other Financial Information | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Financial Information [Abstract] | ||||||||||
Other Financial Information | ||||||||||
10. Other Financial Information | ||||||||||
The following table provides additional detail for accounts receivable, prepaids, and accounts payable and accrued liabilities which are presented on the consolidated balance sheets (in thousands): | ||||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Accounts receivable: | ||||||||||
Trade receivable | $ | 13,926 | $ | 42,196 | ||||||
Receivable for Alta Resources distribution | 1,993 | 7,358 | ||||||||
Joint interest billing | 4,096 | 5,172 | ||||||||
Income taxes receivable | 3,274 | 4,293 | ||||||||
Other receivables | 2,610 | 2,172 | ||||||||
Allowance for doubtful accounts | -590 | -578 | ||||||||
Total accounts receivable | $ | 25,309 | $ | 60,613 | ||||||
Prepaid expenses and other: | ||||||||||
Prepaid insurance | $ | 1,242 | $ | 1,113 | ||||||
Other | 699 | 918 | ||||||||
Total prepaid expenses and other | $ | 1,941 | $ | 2,031 | ||||||
Accounts payable and accrued liabilities: | ||||||||||
Royalties and revenue payable | $ | 31,653 | $ | 44,933 | ||||||
Accrued exploration and development | 26,538 | 17,803 | ||||||||
Trade payable | 17,282 | 11,589 | ||||||||
Advances from partners | 8,334 | 6,538 | ||||||||
Accrued general and administrative expenses | 6,258 | 10,872 | ||||||||
Other accounts payable and accrued liabilities | 2,827 | 5,098 | ||||||||
Total accounts payable and accrued liabilities | $ | 92,892 | $ | 96,833 | ||||||
Included in the table below is supplemental information about non-cash transactions during the years ended December 31, 2014, 2013 and 2012, in thousands: | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Cash payments: | ||||||||||
Interest payments | $ | 2,786 | $ | 1,056 | $ | 71 | ||||
Income tax payments, net of cash refunds | 241 | 341 | 24,307 | |||||||
Non-cash items excluded from investing activities in the consolidated statements of cash flows: | ||||||||||
Increase in accrued capital expenditures | 8,735 | 7,004 | 1,192 | |||||||
Assets acquired & liabilities assumed in the Merger: | ||||||||||
Accounts receivable | — | 12,955 | — | |||||||
Prepaids | — | 639 | — | |||||||
Proved natural gas and oil properties | 2,517 | 413,916 | — | |||||||
Deferred tax asset and other | — | 24,940 | — | |||||||
Accounts payable and accrued liabilities | — | -60,110 | — | |||||||
Other non-current liabilities | — | -256 | — | |||||||
Long-term debt | — | -235,373 | — | |||||||
Asset retirement obligations | -2,517 | -11,183 | — | |||||||
Non-cash items excluded from financing activities in the consolidated statements of cash flows: | ||||||||||
Issuance of common stock in connection with the merger | — | 145,870 | — | |||||||
Investment_In_Exaro_Energy_III
Investment In Exaro Energy III LLC | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Investment In Exaro Energy III LLC [Abstract] | ||||||||||
Investment In Exaro Energy III LLC | 11. Investment in Exaro Energy III LLC | |||||||||
In April 2012, the Company entered into a Limited Liability Company Agreement (the “LLC Agreement”) in connection with the formation of Exaro. Pursuant to the LLC Agreement, as amended, the Company has committed to invest up to $67.5 million in Exaro for an ownership interest of approximately 37%. The aggregate commitment of all the Exaro investors was approximately $183 million. The Company did not make any contributions during the year ended December 31, 2014. As of December 31, 2014, the Company had invested approximately $46.9 million. | ||||||||||
The following table presents condensed balance sheet data for Exaro as of December 31, 2014 and December 31, 2013. The balance sheet data was derived from the Exaro balance sheet as of December 31, 2014 and December 31, 2013 and was not adjusted to represent Contango’s percentage of ownership interest in Exaro. Contango’s share in the equity of Exaro at December 31, 2014 was approximately $61.2 million. | ||||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Current assets | $ | 35,013 | $ | 30,284 | ||||||
Non-current assets: | ||||||||||
Net property and equipment | 233,997 | 182,226 | ||||||||
Restricted cash escrow account | 577 | 8,732 | ||||||||
Other non-current assets | 1,779 | 1,103 | ||||||||
Total non-current assets | 236,353 | 192,061 | ||||||||
Total assets | $ | 271,366 | $ | 222,345 | ||||||
Current liabilities | $ | 9,405 | $ | 13,717 | ||||||
Non-current liabilities: | ||||||||||
Long-term debt | 94,500 | 70,000 | ||||||||
Other non-current liabilities | 1,084 | 923 | ||||||||
Total non-current liabilities | 95,584 | 70,923 | ||||||||
Members' equity | 166,377 | 137,705 | ||||||||
Total liabilities & members' equity | $ | 271,366 | $ | 222,345 | ||||||
The following table presents the condensed results of operations for Exaro for the years ended December 31, 2014 and 2013 and for the period from the inception of Exaro, March 19, 2012, to December 31, 2012. The results of operations for the years ended December 31, 2014 and 2013 and the period from inception of Exaro, March 19, 2012, to December 31, 2012 were derived from Exaro's financial statements for the respective periods. The income statement data below was not adjusted to represent Contango’s ownership interest but rather reflects the results of Exaro as a Company. The Company's share in Exaro's results of operations recognized for the years ended December 31, 2014, 2013 and 2012 was a gain of $6.9 million, net of tax expense of $3.8 million; a gain of $2.3 million, net of tax expense of $1.2 million; and a gain of $60 thousand, net of tax expense of $32 thousand, respectively. | ||||||||||
Year Ended December 31, | Period from inception to December 31, | |||||||||
2014 | 2013 | 2012 | ||||||||
Oil and natural gas sales | $ | 79,536 | $ | 52,698 | $ | 7,514 | ||||
Other gain (loss) | 5,069 | -544 | -3,269 | |||||||
Less: | ||||||||||
Lease operating expenses | 22,452 | 16,136 | 2,035 | |||||||
Depreciation, depletion, amortization & accretion | 26,036 | 16,058 | 2,350 | |||||||
General & administrative expense | 3,484 | 3,294 | 2,872 | |||||||
Income (loss) from continuing operations | 32,633 | 16,666 | -3,012 | |||||||
Net interest income (expense) | -3,861 | -3,536 | 25 | |||||||
Net income (loss) | $ | 28,772 | $ | 13,130 | $ | -2,987 | ||||
Included in Other losses are realized and unrealized losses attributable to derivatives, whose value is likely to change based on future oil and gas prices. Exaro's results of operations do not include income taxes, because Exaro is treated as a partnership for tax purposes. | ||||||||||
Asset_Retirement_Obligation
Asset Retirement Obligation | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||
Asset Retirement Obligation | 12. Asset Retirement Obligation | |||||
The Company accounts for its retirement obligation of long lived assets by recording the net present value of a liability for an asset retirement obligation (“ARO”) in the period in which it is incurred. When the liability is initially recorded, a company increases the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Upon settlement of the liability, an entity either settles the obligation for its recorded amount or incurs a gain or loss upon settlement. Activities related to the Company’s ARO during the year ended December 31, 2014 and 2013 were as follows (in thousands): | ||||||
Year ended December 31, | ||||||
2014 | 2013 | |||||
Balance as of the beginning of the period | $ | 23,334 | $ | 8,678 | ||
Liabilities incurred during period | 3,123 | 14,145 | ||||
Liabilities settled during period | -1,963 | -207 | ||||
Accretion | 1,303 | 660 | ||||
Sales | -69 | — | ||||
Change in estimate | 18 | 58 | ||||
Balance as of the end of the period | $ | 25,746 | $ | 23,334 | ||
Of the total liabilities incurred during the year ended December 31, 2014, $2.5 million was due to a purchase price adjustment for the merger with Crimson and $0.6 million related to new wells drilled during the period. All of the total liabilities settled during the year ended December 31, 2014 related to wells plugged and abandoned during the period. | ||||||
Of the total liabilities incurred during the year ended December 31, 2013, $11.2 million were assumed in conjunction with the merger with Crimson and $2.9 million related to new wells drilled during the period. Of the total liabilities settled during the year ended December 31, 2013, approximately $137,000 related to wells plugged and abandoned during the period and approximately $70,000 related to the sale of assets in Madison and Grimes County to a third party. See Note 5 - "Acquisitions, Dispositions and Gains from Affiliates." | ||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2014 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | 13. Long-Term Debt |
RBC Credit Facility | |
In connection with the Merger during 2013, the Company assumed and immediately repaid $235.4 million of Crimson debt, including Crimson’s $175.0 million second lien term loan with Barclays Bank PLC ("Barclays") and other lenders, Crimson’s $58.6 million senior secured revolving credit facility with Wells Fargo Bank and other lenders, and a $1.8 million prepayment premium for the second lien term loan and accrued interest. Of the amount repaid, $127.6 million was made from existing cash with the remainder financed through new borrowing arrangements. | |
In order to finance the assumed debt, the Company entered into a $500 million four-year secured revolving credit facility with Royal Bank of Canada and other lenders (the “RBC Credit Facility”) on October 1, 2013, with an initial hydrocarbon-supported borrowing base of $275 million, which was reaffirmed on October 28, 2014 and is effective through May 1, 2015. The borrowing base under the RBC Credit Facility is redetermined each November 1 and May 1. The Company incurred $2.2 million of arrangement and upfront fees in connection with the RBC Credit Facility which will be amortized over the original four-year term of the RBC Credit Facility. Proceeds of the RBC Credit Facility were, or may be used (i) to finance working capital and for general corporate purposes, (ii) for permitted acquisitions, and (iii) to finance transaction expenses in connection with the RBC Credit Facility and the Merger. The total amount borrowed on October 1, 2013 was $110.0 million. | |
As of December 31, 2014, the Company had $63.4 million outstanding under the RBC Credit Facility, which is due by October 1, 2017, and $1.9 million in outstanding letters of credit. As of December 31, 2013, the Company had $90.0 million outstanding under the RBC Credit Facility and $1.9 million in outstanding letters of credit. As of December 31, 2014 borrowing availability under the RBC Credit Facility was $209.7 million. | |
The RBC Credit Facility is collateralized by a lien on substantially all the assets of the Company and its subsidiaries, including a security interest in the stock of Contango’s subsidiaries and a security interest in the Company’s oil and gas properties. | |
Borrowings under the RBC Credit Facility bear interest at a rate that is dependent upon LIBOR, the U.S. prime rate, or the federal funds rate, plus a margin dependent upon the amount outstanding. Additionally, the Company must pay a commitment fee on the amount of the facility that remains unused, which varies from .375% to .5%, depending on the amount of the credit facility that is unused. Total interest expense under the RBC Credit Facility, including commitment fees, for the years ended December 31, 2014 and 2013 was approximately $2.7 million and $1.2 million, respectively. | |
The RBC Credit Facility contains restrictive covenants which, among other things, restrict the declaration or payment of dividends by Contango and require the maintenance of a minimum current ratio and a maximum leverage ratio. As of December 31, 2014, the Company was in compliance with all covenants under the RBC Credit Facility. The RBC Credit Facility also contains events of default that may accelerate repayment of any borrowings and/or termination of the facility. Events of default include, but are not limited to, payment defaults, breach of certain covenants, bankruptcy, insolvency or change of control events. | |
Amegy Bank Credit Facility | |
The RBC Credit Facility replaced the Company's $40 million credit facility with Amegy Bank. On October 22, 2010, the Company completed the arrangement of a secured revolving credit agreement with Amegy Bank (the “Amegy Credit Agreement”) to replace its expiring credit agreement with BBVA Compass Bank. The Amegy Credit Agreement had a $40 million hydrocarbon borrowing base and was available to fund the Company’s exploration and development activities, as well as repurchase shares of common stock, pay dividends, and fund working capital as needed. The Amegy Credit Agreement was secured by substantially all of the assets of the Company. Borrowings under the Amegy Credit Agreement would bear interest at LIBOR plus 2.5%, subject to a LIBOR floor of 0.75%. The principal was due October 1, 2014, and could be prepaid at any time with no prepayment penalty. An arrangement fee of $300,000 was paid in connection with the facility and a commitment fee of 0.125% was owed on unused borrowing capacity. The Amegy Credit Agreement contained customary covenants including limitations on the Compnay’s current ratio and additional indebtedness. Upon termination of the Amegy Credit Agreement, the Company was in compliance with all covenants and had no amounts outstanding. No early termination penalty was incurred as a result of the termination of the Amegy Credit Agreement. Interest expense under the Amegy Credit Agreement for the years ended December 31, 2013 and 2012 was approximately $37,000 and $50,000, respectively. | |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments And Contingencies[Abstract] | |||
Commitments And Contingencies | 14. Commitments and Contingencies | ||
Contango pays delay rentals on its offshore leases and leases its office space and certain other equipment. Effective October 1, 2013, the Company moved its corporate offices to 717 Texas Avenue in downtown Houston, Texas, under a lease that expires March 31, 2019. The Company remains responsible for the rent at its previous corporate office at 3700 Buffalo Speedway in Houston, Texas, through February 29, 2016; however, effective January 1, 2014, it subleased the previous corporate offices through February 29, 2016 and expects to recover the substantial majority of the rent it pays at that location. | |||
As of December 31, 2014, minimum future lease payments for delay rentals and operating leases for Contango’s fiscal years are as follows (in thousands): | |||
Fiscal years ending December 31, | |||
2015 | $ | 3,867 | |
2016 | 2,158 | ||
2017 | 1,948 | ||
2018 | 1,694 | ||
2019 | 416 | ||
2020 and thereafter | — | ||
Total | $ | 10,083 | |
The amount incurred under operating leases and delay rentals during the years ended December 31, 2014, 2013, and 2012 were approximately $6.0 million, $1.0 million and $0.5 million, respectively. As of December 31, 2014, the Company’s commitment for potential future equity contributions with Exaro Energy III, LLC to develop onshore natural gas assets, was $20.6 million. | |||
In July 2012, the Company granted year-end bonuses to employees and certain consultants to incentivize the individuals to remain with the Company. The final portion of these bonuses were paid on June 30, 2014. | |||
In conjunction with the merger with Crimson (See Note 4 - "Merger with Crimson Exploration Inc."), certain employees did not remain with the Company. The Company entered into agreements with these individuals and paid approximately $0.4 million in severance payments during 2013. | |||
Legal Proceedings | |||
From time to time, the Company is involved in legal proceedings relating to claims associated with its properties, operations or business or arising from disputes with vendors in the normal course of business, including the material matters discussed below. | |||
Mineral interest owners in South Louisiana filed suit against a subsidiary of the Company and several co-defendants in June 2009 in the 31st Judicial District Court situated in Jefferson Davis Parish, Louisiana alleging failure to act as a reasonably prudent operator, failure to explore, waste, breach of contract, etc. in connection with two wells located in Jefferson Davis Parish. Many of the alleged improprieties occurred prior to the Company’s ownership of an interest in the wells at issue, although the Company may have assumed liability otherwise attributable to its predecessors-in-interest through the acquisition documents relating to the acquisition of the Company’s interest in these wells. The Company and its co-defendants obtained a favorable judgment from the trial court following a bench trial. On October 1, 2014, the Louisiana Third Circuit Court of Appeals issued an opinion reversing the trial court’s rulings and rendering judgment in favor of the plaintiffs for approximately $13.4 million. The decision by the court of appeals did not allocate liability among the defendants although the Company would likely be responsible for at least one-half, and possibly as much as two-thirds, of the judgment if it stands. The Company and its co-defendants have filed an application for a writ of certiorari to the Louisiana Supreme Court seeking review of this case by the state’s highest court. While there is uncertainty whether the Louisiana Supreme Court will accept the Company’s application and, if accepted, rule in its favor, the Company believes that the decision by the court of appeals presents issues that will resonate with the Louisiana Supreme Court and are of precedential significance sufficient to warrant review by that court. The Company and its co-defendants are vigorously defending this lawsuit and believe that they have a meritorious position. A companion case involving the same set of facts was filed in the same trial court on April 19, 2013 on behalf of additional mineral interest owners but has been inactive pending the appeal of the original case. The Company’s potential exposure in this companion case is expected to be affected by the outcome of the Company’s appeal of the original case. | |||
In November 2010, a subsidiary of the Company, several predecessor operators and several product purchasers were named in a lawsuit filed in the District Court for Lavaca County in Texas by an entity alleging that it owns a working interest in two wells that has not been recognized by us or by predecessor operators to which the Company had granted indemnification rights. In dispute is whether ownership rights were transferred through a number of decade-old poorly documented transactions. Based on prior summary judgments, the trial court recently entered a final judgment in the case in favor of the plaintiffs for approximately $5.3 million, plus post-judgment interest. The Company is vigorously defending this lawsuit, believes that it has meritorious defenses and is appealing the trial court’s decision to the applicable state Court of Appeals. | |||
In September 2012, a subsidiary of the Company was named as defendant in a lawsuit filed in district court for Harris County in Texas involving a title dispute over a 1/16th mineral interest in the producing intervals of certain wells operated by us in the Catherine Henderson “A” Unit in Liberty County in Texas. This case was subsequently transferred to the district court for Liberty County, Texas and combined with a suit filed by other parties against the plaintiff claiming ownership of the disputed interest. The plaintiff has alleged that, based on its interpretation of a series of 1972 deeds, it owns an additional 1/16th unleased mineral interest in the producing intervals of these wells on which it has not been paid (this claimed interest is in addition to a 1/16th unleased mineral interest on which it has been paid). The Company has made royalty payments with respect to the disputed interest in reliance, in part, upon leases obtained from successors to the grantors under the aforementioned deeds, who claim to have retained the disputed mineral interests thereunder. The plaintiff previously alleged damages of approximately $10.7 million although the plaintiff’s claim increases as additional hydrocarbons are produced from the subject wells. The Company is vigorously defending this lawsuit and believes that it has meritorious defenses. The Company believes if this matter were to be determined adversely, amounts owed to the plaintiff could be partially offset by recoupment rights the Company may have against other working interest and/or royalty interest owners in the unit. | |||
In connection with the Merger, several class action lawsuits were brought by Crimson stockholders in Delaware and Texas seeking damages and injunctive relief. Each of these merger-related cases has now been dismissed by the respective court without liability to the Company. | |||
In February 2011, a subsidiary of the Company and certain of its working interest partners and insurance carriers brought suit against a marine construction, dredging and tunneling company and an instrumentality of the United States of America in the U.S. District Court for the Southern District of Texas – Houston Division seeking monetary damages for damage to an offshore pipeline which was struck by a dredge. Following a bench trial in December 2013, the Company and its co-defendants obtained a favorable judgment from the trial court. The defendants are appealing the trial court’s judgment to the U.S. Court of Appeals for the 5th Circuit. | |||
While many of these matters involve inherent uncertainty and the Company is unable at the date of this filing to estimate an amount of possible loss with respect to certain of these matters, the Company believes that the amount of the liability, if any, ultimately incurred with respect to these proceedings or claims will not have a material adverse effect on its consolidated financial position as a whole or on its liquidity, capital resources or future annual results of operations. The Company maintains various insurance policies that may provide coverage when certain types of legal proceedings are determined adversely. | |||
Employment Agreements | |||
As a result of successfully completing the Merger, Mr. Joseph J. Romano, the Company's Chairman and former Chief Executive Officer received a $4.0 million bonus payment in July 2014. | |||
In connection with the Merger, Contango entered into employment agreements with each of Allan D. Keel, E. Joseph Grady, A. Carl Isaac, Jay S. Mengle and Thomas H. Atkins, which all became effective on October 1, 2013. The employment agreements provide for a term of three years with automatic two-year extensions of the initial term, unless Contango or the executive provides prior notice of intention not to extend the agreement. The employment agreements replaced the June 29, 2011 employment agreements between Crimson and Messrs. Keel, Grady, Mengle and Atkins, and the April 18, 2012 employment agreement between Crimson and Mr. Isaac, except as described below. | |||
Under the new employment agreements, Mr. Keel is entitled to a base salary of $600,000, Mr. Grady is entitled to a base salary of $400,000, Mr. Isaac is entitled to a base salary of $320,000, Mr. Mengle is entitled to a base salary of $300,000 and Mr. Atkins is entitled to a base salary of $310,000. Each executive shall participate in the CIBP and the LTIP. With respect to the CIBP, these employee agreements provide that the executives are eligible to receive a cash bonus based upon minimum, target and maximum award levels of not less than 50%, 100% and 150% for Mr. Keel; 50%, 90% and 130% for Mr. Grady; and 50%, 80% and 120% for Messrs. Isaac, Mengle and Atkins, respectively, of such executive’s base salary. With respect to the LTIP, these employee agreements provide that the executives are eligible to receive stock option awards, restricted stock awards or a combination of both upon minimum, target and maximum award levels of not less than 75%, 350% and 450% for Mr. Keel; 75%, 250% and 450% for Mr. Grady; and 75%, 250% and 350% for Messrs. Isaac, Mengle and Atkins, respectively, of such executive’s base salary. | |||
Net_Income_Loss_Per_Common_Sha
Net Income (Loss) Per Common Share | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income (Loss) Per Common Share | 15. Net Income (Loss) Per Common Share | |||||||
A reconciliation of the components of basic and diluted net income per common share for the years ended December 31, 2014, 2013 and 2012 is presented below (in thousands): | ||||||||
Year Ended December 31, 2014 | ||||||||
Net Loss | Shares | Per Share | ||||||
Basic Earnings per Share: | ||||||||
Net loss attributable to common stock | $ | -21,874 | 19,059 | $ | -1.15 | |||
Diluted Earnings per Share: | ||||||||
Effect of potential dilutive securities: | ||||||||
Stock options, weighted average of incremental shares | — | — | — | |||||
Net loss attributable to common stock | $ | -21,874 | 19,059 | $ | -1.15 | |||
Year Ended December 31, 2013 | ||||||||
Net Income | Shares | Per Share | ||||||
Basic Earnings per Share: | ||||||||
Net income attributable to common stock | $ | 41,362 | 16,156 | $ | 2.56 | |||
Diluted Earnings per Share: | ||||||||
Effect of potential dilutive securities: | ||||||||
Stock options, weighted average of incremental shares | — | 2 | — | |||||
Net income attributable to common stock | $ | 41,362 | 16,158 | $ | 2.56 | |||
Year Ended December 31, 2012 | ||||||||
Net Loss | Shares | Per Share | ||||||
Basic Earnings per Share: | ||||||||
Loss from continuing operations | $ | -907 | 15,295 | $ | -0.06 | |||
Discontinued operations, net of income taxes | -29 | 15,295 | — | |||||
Net loss attributable to common stock | $ | -936 | 15,295 | $ | -0.06 | |||
Diluted Earnings per Share: | ||||||||
Loss from continuing operations | $ | -907 | 15,295 | $ | -0.06 | |||
Discontinued operations, net of income taxes | -29 | 15,295 | — | |||||
Net loss attributable to common stock | $ | -936 | 15,295 | $ | -0.06 | |||
The numerator for basic earnings per share is net income (loss) attributable to common stockholders. The numerator for diluted earnings per share is net income unless there is a loss and then is (loss) available to common stockholders, due to antidilution. | ||||||||
Potential dilutive securities (stock options, stock warrants and convertible preferred stock) have not been considered when their effect would be antidilutive. The potentially dilutive shares, including both stock options and restricted shares, would have been 339,896 shares for the year ended December 31, 2014. The potentially dilutive shares would have been 187,302 shares for the year ended December 31, 2013. The Company had no potentially dilutive securities for the year ended December 31, 2012. | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||
Income Taxes | 16. Income Taxes | |||||||||||||||||
Actual income tax expense from continuing operations differs from income tax expense from continuing operations computed by applying the U.S. federal statutory corporate rate of 35 percent to pretax income as follows (dollars in thousands): | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Provision/(benefit) at statutory tax rate | $ | -11,920 | 35.00 | % | $ | 23,011 | 35.00 | % | $ | -94 | 35.00 | % | ||||||
State income tax provision, net of federal benefit | 1,028 | -3 | % | 2,928 | 4.45 | % | 654 | -241.84 | % | |||||||||
Permanent differences | 202 | -0.6 | % | -1,559 | -2.37 | % | 450 | -166.34 | % | |||||||||
State depletion deductions | -1,723 | 5.10 | % | — | — | % | — | — | % | |||||||||
Other | 230 | -0.7 | % | 4 | 0.01 | % | -373 | 137.65 | % | |||||||||
Income tax provision /(benefit) | $ | -12,183 | 35.80 | % | $ | 24,384 | 37.09 | % | $ | 637 | -235.53 | % | ||||||
The effective tax rate for December 31, 2014 varies from the statutory rate primarily due to the effect of state income tax expenses. During 2014, the Company reassessed depletion deductions for Louisiana income tax purposes for all tax years open under the Louisiana statute of limitations. These additional deductions allowed under the Louisiana state statutes resulted in a reduction of cash taxes of $1.7 million. The effective tax rate for December 31, 2013 varied from the statutory rate due to the effect of state income taxes and a benefit for tax exempt life insurance proceeds of $10 million offset by non-deductible merger related expenses of $3.0 million and non-deductible compensation expenses of $1.4 million. | ||||||||||||||||||
The provision (benefit) for income taxes from continuing operations for the periods indicated are comprised of the following (in thousands): | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Current tax provision (benefit): | ||||||||||||||||||
Federal | $ | -392 | $ | 8,739 | $ | 7,038 | ||||||||||||
State | 478 | 3,857 | 2,168 | |||||||||||||||
Total | $ | 86 | $ | 12,596 | $ | 9,206 | ||||||||||||
Deferred tax provision (benefit): | ||||||||||||||||||
Federal | $ | -11,518 | $ | 11,361 | $ | -8,343 | ||||||||||||
State | -751 | 427 | -226 | |||||||||||||||
Total | $ | -12,269 | $ | 11,788 | $ | -8,569 | ||||||||||||
Total tax provision (benefit): | ||||||||||||||||||
Federal | $ | -11,910 | $ | 20,100 | $ | -1,305 | ||||||||||||
State | -273 | 4,284 | 1,942 | |||||||||||||||
Total | $ | -12,183 | $ | 24,384 | $ | 637 | ||||||||||||
Included in gain from investment in affiliates | $ | 3,727 | $ | 1,245 | $ | 32 | ||||||||||||
Total income tax provision (benefit) | $ | -15,910 | $ | 23,139 | $ | 605 | ||||||||||||
The net deferred tax liability is comprised of the following (in thousands): | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Deferred tax assets: | ||||||||||||||||||
Net operating loss carryforward | $ | 39,085 | $ | 49,204 | ||||||||||||||
Income tax credits | 661 | 2,676 | ||||||||||||||||
Derivative instruments | 165 | 564 | ||||||||||||||||
Deferred compensation | 465 | 406 | ||||||||||||||||
Other | 1,953 | 1,165 | ||||||||||||||||
Total deferred tax assets before valuation allowance | $ | 42,329 | $ | 54,015 | ||||||||||||||
Valuation allowance | -2,161 | -2,552 | ||||||||||||||||
Net deferred tax assets | $ | 40,168 | $ | 51,463 | ||||||||||||||
Deferred tax liability: | ||||||||||||||||||
Oil and gas properties | $ | -104,209 | $ | -133,894 | ||||||||||||||
Investment in affiliates | -28,287 | -21,681 | ||||||||||||||||
Other | — | -518 | ||||||||||||||||
Deferred tax liability | $ | -132,496 | $ | -156,093 | ||||||||||||||
Total net deferred tax liability | $ | -92,328 | $ | -104,630 | ||||||||||||||
In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the amount of deferred tax liabilities, level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, the Company believes it is more likely than not that it will realize the benefits of these deductible differences of a $6.2 million valuation allowance. | ||||||||||||||||||
As of December 31, 2014, the Company had federal net operating loss (“NOL") carryforwards of approximately $112.3 million and state NOLs of $10.2 million. All NOL carryforwards were acquired in a Merger with Crimson. These NOLs are available to reduce future taxable income and the related income tax liability of the combined company. At the date of the Merger, Crimson had a valuation allowance of approximately $36.4 million, or $12.8 million tax-adjusted. As part of acquisition accounting for the Merger, the Company released valuation allowances of approximately $29.2 million, or $10.2 million tax-adjusted. The remaining valuation allowance of $7.3 million, or $2.6 million tax-adjusted, was due to Internal Revenue Code Section 382 (“Section 382”) limitations on utilization of NOLs acquired by Crimson in previous acquisitions. As of December 31, 2014 the remaining valuation allowance decreased to $6.2 million, or $2.2 million tax-adjusted, due to an adjustment to reflect expired NOLs of $1.1 million. The utilization of NOL carryforwards acquired in the Merger with Crimson is limited by Section 382 as discussed below. | ||||||||||||||||||
Federal NOL carryforwards of $112.3 million expire at various dates beginning in 2018 and ending in 2034. NOL carryforwards of $6.2 million impacted by Crimson's Section 382 limitations, which are not expected to be realized, will expire in 2018 through 2020. Federal NOL carryforwards of $106.1 million, associated with Crimson's losses incurred in recent years, which are also impacted by Section 382 limitations and expected to be realized, will expire at various dates beginning in 2029 and ending in 2033. The Company believes that it will be able to utilize all of the NOL carryforwards, as discussed above, before they expire. | ||||||||||||||||||
ASC 740, Income Taxes ("ASC 740") prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of income tax positions taken or expected to be taken in an income tax return. For those benefits to be recognized, an income tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. As a result of the Merger, the Company acquired certain tax positions taken by Crimson in prior years. These positions are not expected to have a material impact on results of operations, financial position or cash flows. A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows (in thousands): | ||||||||||||||||||
Unrecognized Tax Benefits | ||||||||||||||||||
Balance at December 31, 2013 | $ | 518 | ||||||||||||||||
Additions based on tax positions related to the current year | — | |||||||||||||||||
Additions based on tax positions related to prior years | — | |||||||||||||||||
Additions due to acquisitions | — | |||||||||||||||||
Reductions due to a lapse of the applicable statute of limitations | — | |||||||||||||||||
Balance at December 31, 2014 | $ | 518 | ||||||||||||||||
The Company's policy is to recognize interest and penalties related to uncertain tax positions as income tax benefit (expense) in the Company’s Consolidated Statements of Operations. The Company had no interest or penalties related to unrecognized tax benefits for the year ended December 31, 2014 or any prior years. The total amount of unrecognized tax benefit if recognized that would affect the effective tax rate was zero. | ||||||||||||||||||
The Company's tax returns are subject to periodic audits by the various jurisdictions in which the Company operates. These audits can result in adjustments of taxes due or adjustments of the NOL carryforwards that are available to offset future taxable income. The Company does not anticipate that the total unrecognized tax benefits will significantly change due to the settlement of audits and the expiration of statute of limitations prior to December 31, 2014. | ||||||||||||||||||
Generally, the Company's income tax years of 1998 through the current year remain open and subject to examination by Federal tax authorities, and the tax years of 2009 through current remain open and subject to examination by the tax authorities in Texas and Louisiana which are the jurisdictions where the Company carries its principal operations. | ||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||
Related Party Transactions | 17. Related Party Transactions | |||||||||||||||||||||||||||
Juneau Exploration L.P. | ||||||||||||||||||||||||||||
In April 2012, the Company announced that Mr. Brad Juneau, the sole manager of the general partner of JEX, had joined the Company’s board of directors and that the Company had entered into an advisory agreement with JEX (the "Advisory Agreement"), whereby in addition to generating and evaluating exploration prospects for the Company, JEX would direct Contango’s staff on operational matters including drilling, completions and production. Pursuant to the Advisory Agreement, JEX was to be paid an annual fee of $2.0 million. | ||||||||||||||||||||||||||||
In August 2012, the Company's founder, Chairman and Chief Executive Officer, Mr. Kenneth R. Peak, took a medical leave of absence and the board of directors of the Company appointed Mr. Juneau as President and Acting Chief Executive Officer of the Company, which he held until December 2012. | ||||||||||||||||||||||||||||
Effective January 1, 2013, the Advisory Agreement was terminated, and the Company and JEX entered into a First Right of Refusal Agreement (the "First Right Agreement"). Under the First Right Agreement, JEX granted a first right of refusal to Contango to purchase any exploration prospects generated and recommended by JEX. Pursuant to the First Right Agreement, JEX was to be paid an annual fee of $0.5 million. The First Right Agreement was terminated effective as of March 31, 2013. | ||||||||||||||||||||||||||||
Effective January 1, 2013, Contaro Company, a wholly-owned subsidiary of the Company, entered into an advisory agreement with JEX (the "Contaro Advisory Agreement"). Under the Contaro Advisory Agreement, JEX provided advisory services to Contaro in connection with Contaro's investment in Exaro, and Mr. Juneau served on the Board of Managers of Exaro and performed such duties as described in the limited liability company operating agreement of Exaro. Pursuant to the Contaro Advisory Agreement, JEX was paid a monthly fee of $10,000 and was entitled to receive a one percent (1%) fee of the cash profit earned by Contaro. | ||||||||||||||||||||||||||||
On March 19, 2014, Mr. Juneau resigned from the board of directors and no longer provides services under the Contaro Advisory Agreement. As a result, the Contaro Advisory Agreement was terminated effective as of March 19, 2014. | ||||||||||||||||||||||||||||
Olympic Energy Partners | ||||||||||||||||||||||||||||
In December 2012, Mr. Joseph J. Romano was elected President and Chief Executive Officer of the Company. Mr. Peak passed away on April 19, 2013 and Mr. Romano was named Chairman of the Company. Upon the Merger with Crimson on October 1, 2013, Mr. Romano resigned as President and Chief Executive Officer, but continued as Chairman. Mr. Romano is also the President and Chief Executive Officer of Olympic Energy Partners LLC ("Olympic"). | ||||||||||||||||||||||||||||
JEX, affiliates of JEX, and Olympic have historically participated with the Company in the drilling and development of certain prospects through participation agreements and joint operating agreements, which specify each participant’s working interest ("WI"), net revenue interest ("NRI"), and describe when such interests are earned, as well as allocate an overriding royalty interest ("ORRI") of up to 3.33% to benefit the employees of JEX, excluding Mr. Juneau, except where otherwise noted. Olympic last participated with the Company in the drilling of wells in March 2010, and its ownership in Company-operated wells is limited to its Dutch and Mary Rose wells. | ||||||||||||||||||||||||||||
Republic Exploration LLC | ||||||||||||||||||||||||||||
In his capacity as sole manager of the general partner of JEX, Mr. Juneau also controls the activities of Republic Exploration LLC ("REX"), an entity owned 34.4% by JEX, 32.3% by Contango, and 33.3% by a third party which contributed other assets to REX. REX generates and evaluates offshore exploration prospects and has historically participated with the Company in the drilling and development of certain prospects through participation agreements and joint operating agreements, which specify each participant’s working interest, net revenue interest, and describe when such interests are earned, as well as allocate an overriding royalty interest of up to 3.33% to benefit the employees of JEX. The Company proportionately consolidates the results of REX in its consolidated financial statements. | ||||||||||||||||||||||||||||
As of December 31, 2014, Contango, Olympic, JEX, REX and JEX employees owned the following interests in the Company's offshore wells. | ||||||||||||||||||||||||||||
Olympic | JEX | REX | JEX Employees | |||||||||||||||||||||||||
WI | NRI | WI | NRI | WI | NRI | ORRI | ||||||||||||||||||||||
Dutch #1 - #5 | 3.53% | 2.84% | 1.88% | 1.51% | —% | —% | 2.02% | |||||||||||||||||||||
Mary Rose #1 | 3.61% | 2.70% | 2.01% | 1.51% | —% | —% | 2.79% | |||||||||||||||||||||
Mary Rose #2 - #3 | 3.61% | 2.58% | 2.01% | 1.44% | —% | —% | 2.79% | |||||||||||||||||||||
Mary Rose #4 | 2.34% | 1.70% | 1.31% | 0.95% | —% | —% | 1.82% | |||||||||||||||||||||
Mary Rose #5 | 2.56% | 1.87% | 1.43% | 1.04% | —% | —% | 1.54% | |||||||||||||||||||||
Ship Shoal 263 | —% | —% | —% | —% | —% | —% | 3.33% | |||||||||||||||||||||
Vermilion 170 | —% | —% | 4.30% | 3.35% | 12.50% | 9.74% | 3.33% | |||||||||||||||||||||
Prior to December 2013, Contango, Olympic, and JEX had the following lower WI and NRI in Dutch #1-#5, as a result of exercising a preferential right in December 2013: | ||||||||||||||||||||||||||||
Olympic | JEX | |||||||||||||||||||||||||||
WI | NRI | WI | NRI | |||||||||||||||||||||||||
Dutch #1 - #5 | 3.02% | 2.42% | 1.61% | 1.29% | ||||||||||||||||||||||||
During the year ended December 31, 2014, Mr. Romano earned $105 thousand and Mr. Juneau earned $12 thousand in cash, for their service as a director of the Company. In April 2014, the board of directors accelerated the vesting of Mr. Juneau’s 1,622 shares which would have otherwise been forfeited upon his resignation in March 2014. The Company recognized compensation expense of approximately $71 thousand related to the shares granted to Mr. Juneau for the three months ended March 31, 2014. Additionally, during the year ended December 31, 2014, Mr. Romano received 2,612 shares of restricted stock, which vest 100% on the one-year anniversary of the date of grant, as part of his board of director compensation. Below is a summary of transactions between the Company, Olympic, JEX, and REX during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||
· | In February 2011 the Company spud Vermilion 170 which was owned 100% by the Company. Under the terms of the applicable participation agreement, Contango had a 100% working interest through casing point. Once casing point was reached, JEX and REX each exercised their option to back-in for a 2.6% and 7.5% working interest, respectively. Once production began, JEX and REX each received their carried working interest of 1.7% and 5.0%, respectively, resulting in JEX having a final working interest of 4.3% and REX having a final working interest of 12.5%. The Company owns the remaining working interests in this well. The Company paid JEX a prospect fee of $250,000 for generating this prospect. | |||||||||||||||||||||||||||
· | In July 2011, the Company recompleted its Eloise South well uphole in the Cib-Op sands as its Dutch #5 well. Under the terms of the applicable joint operating agreement, all Dutch #5 well owners were required to purchase the Eloise South well bore from the Eloise South owners (the "Dutch Well Cost Adjustment"). All Eloise South and Dutch #5 well owners paid and/or received their proportionate share of the Dutch Well Cost Adjustment based on their ownership percentage in each well. At the time of the Dutch Well Cost Adjustment, JEX had a 1.6% working interest in Dutch #5; Olympic had a 3.02% working interest in Dutch #5 and a 3.33% working interest in Eloise South; REX had a 9.6% working interest in Eloise South; and Contango had a 47.05% working interest in Dutch #5 and a 23.8% working interest in Eloise South. | |||||||||||||||||||||||||||
· | In December 2011, the Company purchased an additional working interest in Mary Rose #5 (see below) from an existing partner. The Company then sold to Olympic and JEX its proportionate share of the existing partner's interest, based on Olympic and JEX's ownership percentage in the well. | |||||||||||||||||||||||||||
· | In January 2012, the Company recompleted its Eloise North well uphole in the Cib-Op sands as its Mary Rose #5 well. Under the terms of the applicable joint operating agreement, all Mary Rose #5 well owners were required to purchase the Eloise North well bore from the Eloise North owners. (the "Mary Rose Well Cost Adjustment"). All Eloise North and Mary Rose #5 well owners paid and/or received their proportionate share of the Mary Rose Well Cost Adjustment based on their ownership percentage in each well. JEX had a 1.4% working interest in Mary Rose #5 and a 0.1% working interest in Eloise North; Olympic had a 2.56% working interest in Mary Rose #5 and a 4.79% working interest in Eloise North; REX had a 13.2% working interest in Eloise North; and the Company had a 37.8% working interest in Mary Rose #5 and a 35.8% working interest in Eloise North. | |||||||||||||||||||||||||||
· | In July 2012 the Company spud the Ship Shoal 134 prospect which was owned 100% by the Company. The Company paid 100% of the costs to drill, plug and abandon this well. The Company paid JEX a prospect fee of $250,000 for generating this prospect. | |||||||||||||||||||||||||||
· | In July 2012 the Company spud the South Timbalier 75 prospect which was farmed-in 100% by the Company and REX. Under the terms of the applicable participation agreement, the Company paid 100% of the costs to drill, plug and abandon this well. The Company paid JEX a prospect fee of $250,000 for generating this prospect. | |||||||||||||||||||||||||||
· | For the five REX-generated lease blocks that the Company purchased at the June 20, 2012 lease sale, the Company will have a 100% working interest through first production. At first production (if successful), REX will receive a carried working interest of 10%. Once payout of post casing point costs has been reached, REX will have an option to back-in for up to 12.5% working interest, resulting in REX having a final working interest of up to 22.5% (17.5% net revenue interest) and the Company owning the remaining working interests. JEX employees will receive an ORRI of 3.33% in these prospects. The Company will pay JEX a prospect fee of $250,000 for each prospect the Company drills. Should the Company not drill these prospects within 48 months of the effective date of each lease, the Company shall assign such lease to REX. | |||||||||||||||||||||||||||
· | For the one JEX-generated lease block that the Company purchased at the June 20, 2012 lease sale, the Company will carry JEX for 10% through first production and JEX employees will receive an ORRI of 3.33%. The Company paid JEX a prospect fee of $250,000 in December 2013 upon spudding this prospect. | |||||||||||||||||||||||||||
· | For the three REX-generated lease blocks that the Company purchased at the March 20, 2013 lease sale, the Company will have a 100% working interest through first production. At first production (if successful), REX will receive a carried working interest of 10%. Once payout of post casing point costs has been reached, REX will have an option to back-in for up to 12.5% working interest, resulting in REX having a final working interest of up to 22.5% (17.5% net revenue interest) and the Company owning the remaining working interests. JEX employees will receive an ORRI of 3.33% in these prospects. The Company paid JEX two prospect fees of $250,000 each, for evaluating these two prospects located on three leases. Should the Company not drill these prospects within 48 months of the effective date of each lease, the Company shall assign such lease to REX. | |||||||||||||||||||||||||||
· | In June 2013, the Company purchased South Timbalier 17 from an independent oil and gas company. Under the terms of the applicable participation agreement, the Company will have a 75% working interest in this well, with several other owners owning the remainder, until payout of all costs is reached. Once payout of all costs has been reached, REX will have an option to back-in for up to a 9.4% working interest, (6.7% net revenue interest), resulting in the Company owning a 56.3% working interest (39.9% net revenue interest). The Company paid JEX a prospect fee of $250,000 for evaluating this prospect. There are no JEX employee ORRIs on this prospect. | |||||||||||||||||||||||||||
· | In the Tuscaloosa Marine Shale ("TMS"), a shale play in central Louisiana and Mississippi, the Company has a 100% working interest through first production. JEX will receive a carried working interest of 10% in certain of the Company’s TMS wells, and JEX employees will receive an ORRI of 2%, of which Mr. Juneau receives 0.75%, to reimburse Mr. Juneau for out-of-pocket costs incurred in order for Contango to participate in the prospect. An additional 2% ORRI was granted to the geologist who generated the TMS prospect for us. The geologist has subsequently been employed by Contango. | |||||||||||||||||||||||||||
· | Effective January 1, 2014, the Company subleased to JEX a portion of its previous office space at 3700 Buffalo Speedway, Houston, Texas for approximately $0.1 million per year, which approximates its rental liability for that space. | |||||||||||||||||||||||||||
Below is a summary of payments the Company received from (paid to) Olympic, JEX, and REX in the ordinary course of business in its capacity as operator of the wells and platforms for the periods indicated. The Company made and received similar types of payments with other well owners (in thousands): | ||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Olympic | JEX | REX | Olympic | JEX | REX | Olympic | JEX | REX | ||||||||||||||||||||
Revenue payments as well owners | $ | -7,349 | $ | -4,882 | $ | -2,270 | $ | -6,859 | $ | -4,628 | $ | -1,932 | $ | -6,888 | $ | -5,230 | $ | -4,308 | ||||||||||
Joint interest billing receipts | 673 | 521 | 322 | 945 | 1,201 | 2,090 | 1,081 | 724 | 885 | |||||||||||||||||||
Mary Rose well cost adjustment | — | — | — | — | — | — | -201 | 118 | -1,185 | |||||||||||||||||||
Below is a summary of payments the Company received from (paid to) Olympic, JEX and REX as a result of specific transactions between the Company, Olympic, JEX and REX. While these payments are in the ordinary course of business, the Company did not have similar transactions with other well owners (in thousands): | ||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Olympic | JEX | REX | Olympic | JEX | REX | Olympic | JEX | REX | ||||||||||||||||||||
Reimbursement of certain costs | $ | -54 | $ | -29 | $ | — | $ | — | $ | -115 | $ | -4 | $ | — | $ | -496 | $ | -9 | ||||||||||
Rent received for sublease | — | 142 | — | — | — | — | — | — | — | |||||||||||||||||||
Prospect fees | — | — | — | — | -1,000 | — | — | — | — | |||||||||||||||||||
Advisory Agreements | — | — | — | — | -361 | — | — | -1,530 | — | |||||||||||||||||||
REX distribution to members | — | — | — | — | — | -197 | — | — | 1,469 | |||||||||||||||||||
As of December 31, 2014 and 2013, the Company's consolidated balance sheets reflected the following balances (in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Olympic | JEX | REX | Olympic | JEX | REX | |||||||||||||||||||||||
Accounts receivable: | ||||||||||||||||||||||||||||
Joint interest billing | 48 | 42 | 12 | 34 | 87 | 116 | ||||||||||||||||||||||
Accounts payable: | ||||||||||||||||||||||||||||
Royalties and revenue payable | -1,006 | -620 | -175 | -1,293 | -877 | -466 | ||||||||||||||||||||||
Oaktree Capital Management L.P. | ||||||||||||||||||||||||||||
Oaktree Capital Management L.P. ("Oaktree"), through various funds, owns approximately 6.7% of the Company's stock. On October 1, 2013 following the closing of the Merger, Mr. James Ford, a Manging Director and Portfolio Manager within Oaktree, was elected to the Company's board of directors. Mr. Ford was previously a member of Crimson's board of directors from February 2005 until the closing of the Merger. | ||||||||||||||||||||||||||||
As part of Mr. Ford's director compensation, all cash and equity awards payable to Mr. Ford, are instead granted to an affiliate of Oaktree. During the year ended December 31, 2014, an affiliate of Oaktree earned $64 thousand in cash and 2,612 shares of restricted common stock as a result of Mr. Ford's board participation. These shares vest one year from the date of grant. | ||||||||||||||||||||||||||||
Prior to the Merger, Crimson maintained a second lien credit agreement with Barclays Bank Plc, as agent, and other parties, including an affiliate of Oaktree, which was Crimson's largest stockholder at the time (the “Second Lien Credit Agreement”). The Second Lien Credit Agreement provided for a term loan, made to Crimson in a single draw, in an aggregate principal amount of $175.0 million. In connection with the Merger, the Company assumed and immediately repaid Crimson’s $175.0 million loan under the Second Lien Credit Agreement, plus $1.8 million in interest and prepayment premiums. | ||||||||||||||||||||||||||||
Contango ORE, Inc. | ||||||||||||||||||||||||||||
In November 2011, the Company executed a $1.0 million Revolving Line of Credit Promissory Note to lend money to Contango ORE, Inc. (the “CORE Note”). The Company and Contango ORE, Inc. (“CORE”) shared executive officers at that time. The CORE Note contained covenants limiting CORE’s ability to enter into additional indebtedness and prohibiting liens on any of its assets or properties. Borrowings under the CORE Note bore interest at 10% per annum. On March 30, 2012 the Company received repayment of the $500,000 it had advanced under the CORE Note, plus accrued interest of approximately $15,000. The CORE Note was terminated on December 31, 2012. | ||||||||||||||||||||||||||||
Equity Compensation | ||||||||||||||||||||||||||||
In February 2012, the Company net-settled 45,000 stock options from two employees for a total of approximately $465,000. All settlements were approved by the Company’s board of directors and were completed at the closing price of the Company’s common stock on the date of settlement. | ||||||||||||||||||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events |
The Company has evaluated subsequent events through the date the financial statements were available to be issued. Nothing that would require recognition or disclosure in the financial statements was identified in addition to the items disclosed in the financial statements. | |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of Presentation |
The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of Contango Oil & Gas Company and its subsidiaries, after elimination of all material intercompany balances and transactions. All wholly-owned subsidiaries are consolidated. Oil and gas exploration and development affiliates which are not controlled by the Company, such as REX, are proportionately consolidated. Financial statements as of December 31, 2014 and 2013 and for the three years ended December 31, 2014 contained herein, include consolidated results of operations of both Contango Oil & Gas Company and Crimson for the period from the closing date of the Merger to December 31, 2014 and only consolidated financial statements of Contango for all other the periods presented herein. | |
Change of Year-End | Change of Year-End |
On October 1, 2013 the Company's board of directors approved a change in fiscal year end from June 30 to December 31, commencing with the twelve-month period beginning on January 1, 2014. Unless otherwise noted, all references to "years" in this report refer to the twelve-month period which ends on December 31 of each year. | |
Other Investments, cost method | Other Investments |
Contango’s 19.5% ownership of Moblize Inc. (“Moblize”) and 2.0% indirect ownership of Alta Energy Canada Partnership, LLC ("Alta") are accounted for using the cost method. Under the cost method, Contango records an investment at cost, and recognizes dividends or distributions received as income. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions of cost of the investment. During the year ended December 31, 2013, the Company had a significant distribution from Alta in excess of its original investment. The gain in excess of the original investment is included in the Other income (expense) line item in the Company's statement of operations and in the investing cash flows in the Company's statement of cash flow for the year ended December 31, 2013. | |
Other Investments, equity method | The Company has two seats on the board of directors of Exaro and has significant influence, but not control, over the company. As a result, the Company's 37% ownership in Exaro is accounted for using the equity method. Under the equity method, the Company's proportionate share of Exaro's net income increases the balance of its investment in Exaro, while a net loss or payment of dividends decreases its investment. In the consolidated statement of operations, the Company’s proportionate share of Exaro's net income or loss is reported as a single line-item in Gain from investment in affiliates (net of income taxes). |
Use Of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates include oil and gas revenues, income taxes, stock-based compensation, reserve estimates, impairment of natural gas and oil properties, valuation of derivatives, and accrued liabilities. Actual results could differ from those estimates. | |
Revenue Recognition | Revenue Recognition |
Revenues from the sale of natural gas and oil produced are recognized upon the passage of title, net of royalties. Revenues from natural gas production are recorded using the sales method. When sales volumes exceed the Company’s entitled share, production imbalance occurs. If production imbalance exceeds the Company’s share of the remaining estimated proved natural gas reserves for a given property, the Company records a liability. As of December 31, 2014, 2013 and 2012, the Company had no significant imbalances. | |
Cash Equivalents | Cash Equivalents |
Cash equivalents are considered to be highly liquid investment grade debt investments having an original maturity of 90 days or less. As of December 31, 2014, the Company had no cash and cash equivalents. Under the Company’s cash management system, checks issued but not presented to banks frequently result in book overdraft balances for accounting purposes and are classified in accounts payable in the consolidated balance sheets. At December 31, 2014, accounts payable included $12.1 million representing outstanding checks that had not been presented for payment net of cash balance in the bank as of December 31, 2014. At December 31, 2013, accounts payable included $5.9 million representing outstanding checks that had not been presented for payment net of cash balance in the bank as of December 31, 2013. | |
Accounts Receivable | Accounts Receivable |
The Company sells natural gas and crude oil to a limited number of customers. In addition, the Company participates with other parties in the operation of natural gas and crude oil wells. Substantially all of the Company’s accounts receivables are due from either purchasers of natural gas and crude oil or participants in natural gas and crude oil wells for which the Company serves as the operator. Generally, operators of natural gas and crude oil properties have the right to offset future revenues against unpaid charges related to operated wells. | |
The allowance for doubtful accounts is an estimate of the losses in the Company’s accounts receivable. The Company periodically reviews the accounts receivable from customers for any collectability issues. An allowance for doubtful accounts is established based on reviews of individual customer accounts, recent loss experience, current economic conditions, and other pertinent factors. Amounts deemed uncollectible are charged to the allowance. | |
Accounts receivable allowance for bad debt was $0.6 million, as of December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013 the carrying value of the Company’s accounts receivable approximated fair value. | |
Oil and Gas Properties - Successful Efforts | Oil and Gas Properties - Successful Efforts |
The Company follows the successful efforts method of accounting for its natural gas and oil activities. Under the successful efforts method, lease acquisition costs and all development costs are capitalized. Exploratory drilling costs are capitalized until the results are determined. If proved reserves are not discovered, the exploratory drilling costs are expensed. Other exploratory costs, such as seismic costs and other geological and geophysical expenses, are expensed as incurred. Depreciation, depletion and amortization is calculated on a field by field basis using the unit of production method, with lease acquisition costs amortized over total proved reserves and other capitalized costs amortized over proved developed reserves. | |
Depreciation, depletion and amortization ("DD&A") of capitalized drilling and development costs of producing natural gas and crude oil properties, including related support equipment and facilities net of salvage value, are computed using the unit-of-production method on a field basis based on total estimated proved developed natural gas and crude oil reserves. Amortization of producing leaseholds is based on the unit-of-production method using total estimated proved reserves. Upon sale or retirement of properties, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the accounts and the resulting gain or loss, if any, is recognized. Unit-of-production rates are revised whenever there is an indication of a need, but at least annually. Revisions are accounted for prospectively as changes in accounting estimates. | |
Other property and equipment are depreciated using the straight-line method over their estimated useful lives which range between three and 13 years. | |
Impairment Of Oil And Gas Properties | Impairment of Oil and Gas Properties |
When circumstances indicate that proved properties may be impaired, the Company compares expected undiscounted future cash flows on a field by field basis to the unamortized capitalized cost of the asset. If the estimated future undiscounted cash flows, based on the Company’s estimate of future reserves, natural gas and oil prices, operating costs and production levels from oil and natural gas reserves, are lower than the unamortized capitalized cost, then the capitalized cost is reduced to its fair value. For the year ended December 31, 2014, the Company recorded an impairment expense of approximately $11.4 million related to proved properties. Of this amount, $7.7 million related to South Timbalier 17 and $3.7 million related to TMS. No impairment of proved properties was recognized during the year ended December 31, 2013. For the year ended December 31, 2012, the Company recorded an impairment expense of approximately $14.1 million related to proved properties. Of this amount, approximately $12.0 million related to the Ship Shoal 263 well and $2.1 million related to the Eugene Island 24 platform and other properties. Despite the write-down of Ship Shoal 263, this well reached payout during the year ended December 31, 2012. | |
Unproved properties are reviewed quarterly to determine if there has been an impairment of the carrying value, and any such impairment is charged to expense in the period. | |
On April 29, 2014, the Company reached total depth on its Ship Shoal 255 well, and no commercial hydrocarbons were found. As a result, for the year ended December 31, 2014, the Company recognized $31.5 million in exploration expense for the cost of drilling the well and $15.6 million in impairment expense, including $3.5 million related to leasehold costs and $12.1 million related to the platform located in Ship Shoal 263 block which was expected to be used by the Ship Shoal 255 well had it been successful. | |
During the year ended December 31, 2014, the Company also recognized impairment expense of approximately $20.1 million related to impairment and partial impairment of certain unproved properties due to expiring leases and leases not likely to be drilled. Of this amount, approximately $9.7 million relates to undrilled offshore leases and approximately $9.7 million relates to undeveloped TMS acreage. | |
For the year ended December 31, 2013, the Company recorded an impairment expense on unproved properties of $0.6 million related to leasehold costs on the Ship Shoal 83 prospect which it relinquished in August 2013, and $0.2 million related to leasehold costs on the Brazos Area 543 prospect. The Company did not recognize any impairment of unproved properties for the year ended December 31, 2012. | |
Asset Retirement Obligations | Asset Retirement Obligations |
ASC 410, Asset Retirement and Environmental Obligations (ASC 410) requires that the fair value of an asset retirement cost, and corresponding liability, should be recorded as part of the cost of the related long-lived asset and subsequently allocated to expense using a systematic and rational method. The Company records asset retirement obligations to reflect the Company's legal obligations related to future plugging and abandonment of its oil and natural gas wells, platforms and associated pipelines and equipment. The Company estimates the expected cash flows associated with the obligation and discounts the amounts using a credit-adjusted, risk-free interest rate. At least annually, the Company reassesses the obligation to determine whether a change in the estimated obligation is necessary. The Company evaluates whether there are indicators that suggest the estimated cash flows underlying the obligation have materially changed. Should these indicators suggest the estimated obligation may have materially changed on an interim basis (quarterly), the Company will accordingly update its assessment. Additional retirement obligations increase the liability associated with new oil and natural gas wells, platforms, and associated pipelines and equipment as these obligations are incurred. The liability is accreted to its present value each period and the capitalized cost is depleted over the useful life of the related asset. The accretion expense is included in depreciation, depletion and amortization expense. | |
The estimated liability is based on historical experience in plugging and abandoning wells. The estimated remaining lives of the wells is based on reserve life estimates and federal and state regulatory requirements. The liability is discounted using an assumed credit-adjusted risk-free rate. | |
Revisions to the liability could occur due to changes in estimates of plugging and abandonment costs, changes in the risk-free rate or changes in the remaining lives of the wells, or if federal or state regulators enact new plugging and abandonment requirements. At the time of abandonment, the Company recognizes a gain or loss on abandonment to the extent that actual costs do not equal the estimated costs. This gain or loss on abandonment is included in impairment and abandonment of oil and gas properties expense. See Note 12 - "Asset Retirement Obligations" for additional information. | |
Income Taxes | Income Taxes |
The Company follows the liability method of accounting for income taxes under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements and (ii) operating loss and tax credit carryforwards for tax purposes. Deferred tax assets are reduced by a valuation allowance when, based upon management’s estimates, it is more likely than not that a portion of the deferred tax assets will not be realized in a future period. The Company reviews its tax positions quarterly for tax uncertainties. The Company did not have significant uncertain tax positions as of December 31, 2014. The amount of unrecognized tax benefits did not materially change from December 31, 2013. The amount of unrecognized tax benefits may change in the next twelve months; however, the Company does not expect the change to have a significant impact on its financial position or results of operations. The Company includes interest and penalties in interest income and general and administrative expenses, respectively, in its statement of operations. | |
The Company files income tax returns in the United States and various state jurisdictions. The Company’s federal tax returns for 1998 – 2014, and state tax returns for 2009 – 2014, remain open for examination by the taxing authorities in the respective jurisdictions where those returns were filed. | |
Concentration Of Credit Risk | Concentration of Credit Risk |
Substantially all of the Company’s accounts receivable result from natural gas and oil sales or joint interest billings to a limited number of third parties in the natural gas and oil industry. This concentration of customers and joint interest owners may impact the Company’s overall credit risk in that these entities may be similarly affected by changes in economic and other conditions. See Note 3 - "Concentration of Credit Risk" for additional information. | |
Debt Issuance Costs | Debt Issuance Costs |
Debt issuance costs incurred are capitalized and subsequently amortized over the term of the related debt. During the year ended December 31, 2013 the Company incurred $2.2 million of debt issuance costs in relation to the new RBC credit facility entered into in conjunction with the Merger with Crimson. The debt issuance costs will be amortized over the original four year term of the credit line with amortization expense included in Depreciation, Depletion and Amortization line item in the Company's income statement for the years ended December 31, 2014 and 2013. | |
Stock-Based Compensation | Stock-Based Compensation |
The Company applies the fair value based method to account for stock based compensation. Under this method, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, which generally aligns with the award vesting period. The Company classifies the benefits of tax deductions in excess of the compensation cost recognized for the options (excess tax benefit) as financing cash flows. The fair value of each award is estimated as of the date of grant using the Black-Scholes option-pricing model. | |
Inventory | Inventory |
Inventory primarily consists of casing and tubing which will be used for drilling or completion of wells. Also, included in inventory are items for the repair and maintenance of equipment used on wells and facilities that the Company operates. Inventory is recorded at the lower of cost or market using specific identification method. | |
Derivatives Instruments And Hedging Activities | Derivative Instruments and Hedging Activities |
The Company accounts for its derivative activities under the provisions of ASC 815, Derivatives and Hedging (ASC 815). ASC 815 establishes accounting and reporting that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at fair value. As of December 31, 2014, the Company has not entered into any derivative contracts to reduce exposure to interest rate risk. However, from time to time, the Company may hedge a portion of its forecasted oil and natural gas production. Derivative contracts entered into by the Company have consisted of transactions in which the Company hedges the variability of cash flow related to a forecasted transactions using variable to fixed swaps and collars. The Company elected to not designate any of its derivative positions for hedge accounting. Accordingly, the net change in the mark-to-market valuation of these positions as well as all payments and receipts on settled derivative contracts are recognized in "Loss on derivatives, net" on the consolidated statements of operations for the years ended December 31, 2014 and 2013. The Company did not have any derivative instruments or hedging activities for the year ending December 31, 2012. Derivative instruments with settlement date within one year are included in current assets or liabilities, whereas derivative instruments with settlement dates exceeding one year are included in non-current assets or liabilities. The Company calculates a net asset or liability for current and non-current derivative instruments for each counterparty based on the settlement dates within the respective contracts. As of December 31, 2014, there were no commodity hedges in place. | |
Reclassifications | Reclassifications |
Certain reclassifications have been made to the presentation of certain balance sheet, income statement and cash flow items in the respective statements for the year ended December 31, 2012 in order to conform to the presentation for the years ended December 31, 2014 and 2013. These reclassifications were not material. | |
Subsidiary Guarantees | Subsidiary Guarantees |
Contango Oil & Gas Company, as the parent company (the “Parent Company”), filed a registration statement on Form S-3 with the SEC to register, among other securities, debt securities that the Parent Company may issue from time to time. Crimson Exploration Inc., Crimson Exploration Operating, Inc., Contango Energy Company, Contango Operators, Inc., Contango Mining Company, Conterra Company, Contaro Company, Contango Alta Investments, Inc., Contango Venture Capital Corporation and any other of the Company’s future subsidiaries specified in the prospectus supplement (each a “Subsidiary Guarantor”) are Co-Registrants with the Parent Company under the registration statement, and the registration statement also registered guarantees of debt securities by the Subsidiary Guarantors. The Subsidiary Guarantors are wholly-owned by the Parent Company, either directly or indirectly, and any guarantee by the Subsidiary Guarantors will be full and unconditional. The Parent Company has no assets or operations independent of the Subsidiary Guarantors, and there are no significant restrictions upon the ability of the Subsidiary Guarantors to distribute funds to the Parent Company. The Parent Company has one other wholly-owned subsidiary that is inactive. Finally, the Parent Company’s wholly-owned subsidiaries do not have restricted assets that exceed 25% of net assets as of the most recent fiscal year end that may not be transferred to the Parent Company in the form of loans, advances or cash dividends by such subsidiary without the consent of a third party. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In January 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-01: Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01). ASU 2015-01 is part of an initiative to reduce complexity in accounting standards. This update eliminates from generally accepted accounting principles the concept of extraordinary items, which eliminates the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary. However, this will not result in a loss of information as the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained. ASU 2015-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015; early application is permitted. The provisions of this accounting update are not expected to have a material impact on the Company’s financial position or results of operations. | |
In November 2014, the FASB issued Accounting Standards Update No. 2014-17: Business Combinations (Topic 805): Pushdown Accounting (ASU 2014-17). ASU 2014-17 addresses the limited guidance available for determining whether and at what threshold pushdown accounting should be established in an acquired entity’s separate financial statements. Thus, the amendments in this update provide an acquired entity with an option to apply pushdown accounting upon occurrence of an event in which an acquirer obtains control of the acquired entity. Furthermore, the amendments in this update provide specific guidance on pushdown accounting for all entities, and the threshold for pushdown accounting is consistent with the threshold for change-in-control events in Topic 805, Business Combinations, and Topic 810, Consolidation. ASU 2014-17 became effective on November 18, 2014. The provisions of this accounting update are not expected to have a material impact on the Company’s financial position or results of operations. | |
In August 2014, the FASB issued Accounting Standards Update No. 2014-15: Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15 asserts that management should evaluate whether there are relevant condition or events that are known and reasonably knowable that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued or are available to be issued when applicable. If conditions or events at the date the financial statements are issued raise substantial doubt about an entity’s ability to continue as a going concern, disclosures are required which will enable users of the financial statements to understand the conditions or events as well as management’s evaluation and plan. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter; early application is permitted. The provisions of this accounting update are not expected to have a material impact on the Company’s financial position or results of operations. | |
In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued new accounting guidance for recognition of revenue Accounting Standards Update No. 2014-09: Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). This new guidance replaces virtually all existing US GAAP and IFRS guidance on revenue recognition. ASU 2014-09 is effective for fiscal years beginning after December 15, 2016. This new guidance applies to all periods presented. Therefore, when the Company issues its financial statements on Forms 10-Q and 10-K for periods included in its year ended December 31, 2017, its comparative periods that are presented from the years ended December 31, 2015 and 2016, must be retrospectively presented in compliance with this new guidance. Early adoption is not allowed for US GAAP. The new guidance requires companies to make more estimates and use more judgment than under current accounting guidance. The Company does not anticipate that this new guidance will have a material impact on the Company’s consolidated financial position or results of operations for the periods presented. | |
In April 2014, the FASB issued Accounting Standards Update No. 2014-08: Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). ASU 2014-08 changes the criteria for reporting discontinued operations while enhancing disclosures in this area. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. ASU 2014-08 is effective for annual and interim periods beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance of ASU 2014-08 is not expected to have a material impact on the Company’s consolidated financial position or results of operations. | |
In May 2013, the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"), revised its criteria related to internal controls over financial reporting from the originally established 1992 Internal Control - Integrated Framework with 2013 Internal Control - Integrated Framework. The modified framework provides enhanced guidance that ties control objectives to the related risk, enhancement of governance concepts, increased emphasis on globalization of markets and operations, increased recognition of use and reliance on information technology, increased discussion of fraud as it relates to internal control, changes of control deficiency descriptions, and that internal reporting is included in both financial and nonfinancial objectives. The revised framework is effective for interim and annual periods beginning after December 15, 2013, with early adoption being permitted. The Company implemented the changes required by the new COSO framework during the year ended December 31, 2014. The Company will continue to assess the impact, if any, it may have on its internal control structure. | |
In February 2013, the FASB issued Accounting Standards Update No. 2013-04 Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (ASU 2013-04). ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. Examples of obligations within the scope of this update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. The accounting update is effective for interim and annual periods beginning after December 15, 2013. The Company evaluated the provisions of this accounting update and does not believe it has a material impact on its financial position and results of operations. | |
Further, management is closely monitoring the joint standard-setting efforts of the FASB and the International Accounting Standards Board. There are a large number of pending accounting standards that are being targeted for completion in 2015 and beyond, including, but not limited to, accounting for leases, fair value measurements, accounting for financial instruments, disclosure of loss contingencies and financial statement presentation. Because these pending standards have not yet been finalized, management is not able to determine the potential future impact that these standards will have, if any, on the Company's financial position, results of operations, or cash flows. | |
Merger_With_Crimson_Exploratio1
Merger With Crimson Exploration Inc. (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Business Combinations [Abstract] | |||||||
Schedule Of Assets Acquired And Liabilities Assumed | |||||||
Consideration transferred: | |||||||
Crimson common stock to be acquired by the Company | 46,624,721 | ||||||
Exchange ratio of the Company common shares for each Crimson common share | 0.08288 | ||||||
The Company common stock to be issued to Crimson stockholders | 3,864,101 | ||||||
Closing price of the Company common stock on October 1, 2013 | $ | 37.75 | |||||
Fair value of common stock issued | $ | 145,870 | |||||
Cash paid for partial shares | 6 | ||||||
Fair value of stock options issued | 698 | ||||||
Total estimated consideration transferred | $ | 146,574 | |||||
Fair value of other liabilities assumed: | |||||||
Current liabilities | $ | 60,124 | |||||
Long-term debt | 235,373 | ||||||
Asset retirement obligations and other non-current liabilities | 12,967 | ||||||
Amount attributable to liabilities assumed | 308,464 | ||||||
Total consideration including liabilities assumed | $ | 455,038 | |||||
Fair value of assets acquired: | |||||||
Current assets | $ | 13,492 | |||||
Current and non-current deferred tax asset, net | 24,905 | ||||||
Natural gas and oil properties, net | 416,433 | ||||||
Other non-current assets | 208 | ||||||
Amount attributable to net assets acquired | $ | 455,038 | |||||
Goodwill | $ | — | |||||
Schedule Of Consolidated Pro Forma Information | |||||||
Year Ended December 31 | |||||||
2013 | 2012 | ||||||
(Unaudited) | |||||||
Revenue | $ | 256,594 | $ | 261,772 | |||
Net income (loss) | $ | 40,166 | $ | -83,912 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||
Schedule Of Fair Value Of Financial Assets And (Liabilities) | |||||||||||||
Total | Fair Value Measurements Using | ||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | ||||||||||
Derivatives | |||||||||||||
Commodity price contracts - assets | $ | 76 | $ | — | $ | 76 | $ | — | |||||
Commodity price contracts - liabilities | $ | -1,207 | $ | — | $ | -1,207 | $ | — | |||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Derivative Instruments [Abstract] | ||||||||||
Schedule Of Fair Value Of Commodity Derivatives | ||||||||||
Gross | Netting (1) | Total | ||||||||
Assets | $ | 76 | $ | -76 | $ | — | ||||
Liabilities | $ | -1,207 | $ | 76 | $ | -1,131 | ||||
-1 | Represents counterparty netting under agreements governing such derivatives | |||||||||
Schedule Of Derivative Contracts On Operations | ||||||||||
Year ended December 31, | ||||||||||
Contract Type | 2014 | 2013 | ||||||||
Crude oil contracts | $ | 276 | $ | 180 | ||||||
Natural gas contracts | -1,560 | 98 | ||||||||
Realized gain (loss) | $ | -1,284 | $ | 278 | ||||||
Crude oil contracts | $ | 1,183 | $ | -1,179 | ||||||
Natural gas contracts | -52 | -231 | ||||||||
Unrealized gain (loss) | $ | 1,131 | $ | -1,410 | ||||||
Gain (loss) on derivatives, net | $ | -153 | $ | -1,132 | ||||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||
Summary Of Stock Options Granted | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||
Shares | Average | Shares | Average | Shares | Average | |||||||||||||
Under | Exercise | Under | Exercise | Under | Exercise | |||||||||||||
Options | Price | Options | Price | Options | Price | |||||||||||||
Outstanding, beginning of the period | 135,107 | $ | 53.00 | — | $ | — | 45,000 | $ | 54.21 | |||||||||
Options assumed due to Merger | — | $ | — | 135,898 | $ | 52.90 | — | $ | — | |||||||||
Exercised | -4,165 | $ | 28.93 | -791 | $ | 36.16 | — | $ | — | |||||||||
Canceled / Forfeited (1) | -1,008 | $ | 42.39 | — | $ | — | -45,000 | $ | 54.21 | |||||||||
Outstanding, end of year | 129,934 | $ | 53.85 | 135,107 | $ | 53.00 | — | $ | — | |||||||||
Aggregate intrinsic value | $ | 4 | $ | 459 | $ | — | ||||||||||||
Exercisable, end of year | 129,934 | $ | 53.85 | 135,107 | $ | 53.00 | — | $ | — | |||||||||
Aggregate intrinsic value | $ | 4 | $ | 459 | $ | — | ||||||||||||
Available for grant, end of the period | 1,143,006 | 1,162,173 | 1,475,000 | |||||||||||||||
Weighted average fair value of options granted during the period | $ | — | $ | — | $ | — | ||||||||||||
-1 | For the year ended December 31, 2012, forfeited options consist of options that were net-settled for cash with the Company. | |||||||||||||||||
Summary Of Restricted Stock Activity | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Weighted | Weighted | |||||||||||||||||
Restricted | Average | Aggregate | Restricted | Average | Aggregate | |||||||||||||
Shares | Fair Value | Intrinsic Value | Shares | Fair Value | Intrinsic Value | |||||||||||||
Outstanding, beginning of the period | 292,632 | $ | 44.38 | $ | 13,830 | — | $ | — | $ | — | ||||||||
Granted | 26,386 | 40.83 | 1,073 | 356,299 | 44.10 | 15,723 | ||||||||||||
Vested | -94,807 | 44.11 | 3,454 | -63,667 | 42.80 | 2,725 | ||||||||||||
Canceled / Forfeited | -14,249 | 47.30 | 579 | — | — | — | ||||||||||||
Not vested, end of the period | 209,962 | 43.86 | 6,139 | 292,632 | 44.38 | 13,830 | ||||||||||||
Vested, end of the period | — | — | — | — | — | — | ||||||||||||
Expected to vest, end of the period | 192,570 | 43.84 | 5,631 | 260,359 | 44.36 | 12,305 | ||||||||||||
Other_Financial_Information_Ta
Other Financial Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Financial Information [Abstract] | ||||||||||
Schedule Of Additional Financial Details | ||||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Accounts receivable: | ||||||||||
Trade receivable | $ | 13,926 | $ | 42,196 | ||||||
Receivable for Alta Resources distribution | 1,993 | 7,358 | ||||||||
Joint interest billing | 4,096 | 5,172 | ||||||||
Income taxes receivable | 3,274 | 4,293 | ||||||||
Other receivables | 2,610 | 2,172 | ||||||||
Allowance for doubtful accounts | -590 | -578 | ||||||||
Total accounts receivable | $ | 25,309 | $ | 60,613 | ||||||
Prepaid expenses and other: | ||||||||||
Prepaid insurance | $ | 1,242 | $ | 1,113 | ||||||
Other | 699 | 918 | ||||||||
Total prepaid expenses and other | $ | 1,941 | $ | 2,031 | ||||||
Accounts payable and accrued liabilities: | ||||||||||
Royalties and revenue payable | $ | 31,653 | $ | 44,933 | ||||||
Accrued exploration and development | 26,538 | 17,803 | ||||||||
Trade payable | 17,282 | 11,589 | ||||||||
Advances from partners | 8,334 | 6,538 | ||||||||
Accrued general and administrative expenses | 6,258 | 10,872 | ||||||||
Other accounts payable and accrued liabilities | 2,827 | 5,098 | ||||||||
Total accounts payable and accrued liabilities | $ | 92,892 | $ | 96,833 | ||||||
Schedule Of Supplemental Disclosures | ||||||||||
Year Ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Cash payments: | ||||||||||
Interest payments | $ | 2,786 | $ | 1,056 | $ | 71 | ||||
Income tax payments, net of cash refunds | 241 | 341 | 24,307 | |||||||
Non-cash items excluded from investing activities in the consolidated statements of cash flows: | ||||||||||
Increase in accrued capital expenditures | 8,735 | 7,004 | 1,192 | |||||||
Assets acquired & liabilities assumed in the Merger: | ||||||||||
Accounts receivable | — | 12,955 | — | |||||||
Prepaids | — | 639 | — | |||||||
Proved natural gas and oil properties | 2,517 | 413,916 | — | |||||||
Deferred tax asset and other | — | 24,940 | — | |||||||
Accounts payable and accrued liabilities | — | -60,110 | — | |||||||
Other non-current liabilities | — | -256 | — | |||||||
Long-term debt | — | -235,373 | — | |||||||
Asset retirement obligations | -2,517 | -11,183 | — | |||||||
Non-cash items excluded from financing activities in the consolidated statements of cash flows: | ||||||||||
Issuance of common stock in connection with the merger | — | 145,870 | — | |||||||
Investment_In_Exaro_Energy_III1
Investment In Exaro Energy III LLC (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Investment In Exaro Energy III LLC [Abstract] | ||||||||||
Schedule Of Condensed Balance Sheet Data | ||||||||||
December 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
Current assets | $ | 35,013 | $ | 30,284 | ||||||
Non-current assets: | ||||||||||
Net property and equipment | 233,997 | 182,226 | ||||||||
Restricted cash escrow account | 577 | 8,732 | ||||||||
Other non-current assets | 1,779 | 1,103 | ||||||||
Total non-current assets | 236,353 | 192,061 | ||||||||
Total assets | $ | 271,366 | $ | 222,345 | ||||||
Current liabilities | $ | 9,405 | $ | 13,717 | ||||||
Non-current liabilities: | ||||||||||
Long-term debt | 94,500 | 70,000 | ||||||||
Other non-current liabilities | 1,084 | 923 | ||||||||
Total non-current liabilities | 95,584 | 70,923 | ||||||||
Members' equity | 166,377 | 137,705 | ||||||||
Total liabilities & members' equity | $ | 271,366 | $ | 222,345 | ||||||
Schedule Of Condensed Income Statement Data | ||||||||||
Year Ended December 31, | Period from inception to December 31, | |||||||||
2014 | 2013 | 2012 | ||||||||
Oil and natural gas sales | $ | 79,536 | $ | 52,698 | $ | 7,514 | ||||
Other gain (loss) | 5,069 | -544 | -3,269 | |||||||
Less: | ||||||||||
Lease operating expenses | 22,452 | 16,136 | 2,035 | |||||||
Depreciation, depletion, amortization & accretion | 26,036 | 16,058 | 2,350 | |||||||
General & administrative expense | 3,484 | 3,294 | 2,872 | |||||||
Income (loss) from continuing operations | 32,633 | 16,666 | -3,012 | |||||||
Net interest income (expense) | -3,861 | -3,536 | 25 | |||||||
Net income (loss) | $ | 28,772 | $ | 13,130 | $ | -2,987 | ||||
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||
Schedule of Change in Asset Retirement Obligation | ||||||
Year ended December 31, | ||||||
2014 | 2013 | |||||
Balance as of the beginning of the period | $ | 23,334 | $ | 8,678 | ||
Liabilities incurred during period | 3,123 | 14,145 | ||||
Liabilities settled during period | -1,963 | -207 | ||||
Accretion | 1,303 | 660 | ||||
Sales | -69 | — | ||||
Change in estimate | 18 | 58 | ||||
Balance as of the end of the period | $ | 25,746 | $ | 23,334 | ||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Commitments And Contingencies[Abstract] | |||
Schedule of Minimum Future Lease Operating Leases | |||
Fiscal years ending December 31, | |||
2015 | $ | 3,867 | |
2016 | 2,158 | ||
2017 | 1,948 | ||
2018 | 1,694 | ||
2019 | 416 | ||
2020 and thereafter | — | ||
Total | $ | 10,083 | |
Net_Income_Loss_Per_Common_Sha1
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Components Of Basic And Diluted Net Income Per Share Of Common Stock | ||||||||
Year Ended December 31, 2014 | ||||||||
Net Loss | Shares | Per Share | ||||||
Basic Earnings per Share: | ||||||||
Net loss attributable to common stock | $ | -21,874 | 19,059 | $ | -1.15 | |||
Diluted Earnings per Share: | ||||||||
Effect of potential dilutive securities: | ||||||||
Stock options, weighted average of incremental shares | — | — | — | |||||
Net loss attributable to common stock | $ | -21,874 | 19,059 | $ | -1.15 | |||
Year Ended December 31, 2013 | ||||||||
Net Income | Shares | Per Share | ||||||
Basic Earnings per Share: | ||||||||
Net income attributable to common stock | $ | 41,362 | 16,156 | $ | 2.56 | |||
Diluted Earnings per Share: | ||||||||
Effect of potential dilutive securities: | ||||||||
Stock options, weighted average of incremental shares | — | 2 | — | |||||
Net income attributable to common stock | $ | 41,362 | 16,158 | $ | 2.56 | |||
Year Ended December 31, 2012 | ||||||||
Net Loss | Shares | Per Share | ||||||
Basic Earnings per Share: | ||||||||
Loss from continuing operations | $ | -907 | 15,295 | $ | -0.06 | |||
Discontinued operations, net of income taxes | -29 | 15,295 | — | |||||
Net loss attributable to common stock | $ | -936 | 15,295 | $ | -0.06 | |||
Diluted Earnings per Share: | ||||||||
Loss from continuing operations | $ | -907 | 15,295 | $ | -0.06 | |||
Discontinued operations, net of income taxes | -29 | 15,295 | — | |||||
Net loss attributable to common stock | $ | -936 | 15,295 | $ | -0.06 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||
Schedule Of Effective Income Tax Rate Reconciliation | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Provision/(benefit) at statutory tax rate | $ | -11,920 | 35.00 | % | $ | 23,011 | 35.00 | % | $ | -94 | 35.00 | % | ||||||
State income tax provision, net of federal benefit | 1,028 | -3 | % | 2,928 | 4.45 | % | 654 | -241.84 | % | |||||||||
Permanent differences | 202 | -0.6 | % | -1,559 | -2.37 | % | 450 | -166.34 | % | |||||||||
State depletion deductions | -1,723 | 5.10 | % | — | — | % | — | — | % | |||||||||
Other | 230 | -0.7 | % | 4 | 0.01 | % | -373 | 137.65 | % | |||||||||
Income tax provision /(benefit) | $ | -12,183 | 35.80 | % | $ | 24,384 | 37.09 | % | $ | 637 | -235.53 | % | ||||||
Components Of Income Tax Expense (Benefit) | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Current tax provision (benefit): | ||||||||||||||||||
Federal | $ | -392 | $ | 8,739 | $ | 7,038 | ||||||||||||
State | 478 | 3,857 | 2,168 | |||||||||||||||
Total | $ | 86 | $ | 12,596 | $ | 9,206 | ||||||||||||
Deferred tax provision (benefit): | ||||||||||||||||||
Federal | $ | -11,518 | $ | 11,361 | $ | -8,343 | ||||||||||||
State | -751 | 427 | -226 | |||||||||||||||
Total | $ | -12,269 | $ | 11,788 | $ | -8,569 | ||||||||||||
Total tax provision (benefit): | ||||||||||||||||||
Federal | $ | -11,910 | $ | 20,100 | $ | -1,305 | ||||||||||||
State | -273 | 4,284 | 1,942 | |||||||||||||||
Total | $ | -12,183 | $ | 24,384 | $ | 637 | ||||||||||||
Included in gain from investment in affiliates | $ | 3,727 | $ | 1,245 | $ | 32 | ||||||||||||
Total income tax provision (benefit) | $ | -15,910 | $ | 23,139 | $ | 605 | ||||||||||||
Schedule Of Net Deferred Tax Liability | ||||||||||||||||||
December 31, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Deferred tax assets: | ||||||||||||||||||
Net operating loss carryforward | $ | 39,085 | $ | 49,204 | ||||||||||||||
Income tax credits | 661 | 2,676 | ||||||||||||||||
Derivative instruments | 165 | 564 | ||||||||||||||||
Deferred compensation | 465 | 406 | ||||||||||||||||
Other | 1,953 | 1,165 | ||||||||||||||||
Total deferred tax assets before valuation allowance | $ | 42,329 | $ | 54,015 | ||||||||||||||
Valuation allowance | -2,161 | -2,552 | ||||||||||||||||
Net deferred tax assets | $ | 40,168 | $ | 51,463 | ||||||||||||||
Deferred tax liability: | ||||||||||||||||||
Oil and gas properties | $ | -104,209 | $ | -133,894 | ||||||||||||||
Investment in affiliates | -28,287 | -21,681 | ||||||||||||||||
Other | — | -518 | ||||||||||||||||
Deferred tax liability | $ | -132,496 | $ | -156,093 | ||||||||||||||
Total net deferred tax liability | $ | -92,328 | $ | -104,630 | ||||||||||||||
Schedule Of Unrecognized Tax Benefits | ||||||||||||||||||
Unrecognized Tax Benefits | ||||||||||||||||||
Balance at December 31, 2013 | $ | 518 | ||||||||||||||||
Additions based on tax positions related to the current year | — | |||||||||||||||||
Additions based on tax positions related to prior years | — | |||||||||||||||||
Additions due to acquisitions | — | |||||||||||||||||
Reductions due to a lapse of the applicable statute of limitations | — | |||||||||||||||||
Balance at December 31, 2014 | $ | 518 | ||||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||
Schedule Of Oil and Gas Ownership Interests | ||||||||||||||||||||||||||||
Olympic | JEX | REX | JEX Employees | |||||||||||||||||||||||||
WI | NRI | WI | NRI | WI | NRI | ORRI | ||||||||||||||||||||||
Dutch #1 - #5 | 3.53% | 2.84% | 1.88% | 1.51% | —% | —% | 2.02% | |||||||||||||||||||||
Mary Rose #1 | 3.61% | 2.70% | 2.01% | 1.51% | —% | —% | 2.79% | |||||||||||||||||||||
Mary Rose #2 - #3 | 3.61% | 2.58% | 2.01% | 1.44% | —% | —% | 2.79% | |||||||||||||||||||||
Mary Rose #4 | 2.34% | 1.70% | 1.31% | 0.95% | —% | —% | 1.82% | |||||||||||||||||||||
Mary Rose #5 | 2.56% | 1.87% | 1.43% | 1.04% | —% | —% | 1.54% | |||||||||||||||||||||
Ship Shoal 263 | —% | —% | —% | —% | —% | —% | 3.33% | |||||||||||||||||||||
Vermilion 170 | —% | —% | 4.30% | 3.35% | 12.50% | 9.74% | 3.33% | |||||||||||||||||||||
Prior to December 2013, Contango, Olympic, and JEX had the following lower WI and NRI in Dutch #1-#5, as a result of exercising a preferential right in December 2013: | ||||||||||||||||||||||||||||
Olympic | JEX | |||||||||||||||||||||||||||
WI | NRI | WI | NRI | |||||||||||||||||||||||||
Dutch #1 - #5 | 3.02% | 2.42% | 1.61% | 1.29% | ||||||||||||||||||||||||
Schedule Of Payments Received From (Made To) Related Parties | ||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Olympic | JEX | REX | Olympic | JEX | REX | Olympic | JEX | REX | ||||||||||||||||||||
Revenue payments as well owners | $ | -7,349 | $ | -4,882 | $ | -2,270 | $ | -6,859 | $ | -4,628 | $ | -1,932 | $ | -6,888 | $ | -5,230 | $ | -4,308 | ||||||||||
Joint interest billing receipts | 673 | 521 | 322 | 945 | 1,201 | 2,090 | 1,081 | 724 | 885 | |||||||||||||||||||
Mary Rose well cost adjustment | — | — | — | — | — | — | -201 | 118 | -1,185 | |||||||||||||||||||
Below is a summary of payments the Company received from (paid to) Olympic, JEX and REX as a result of specific transactions between the Company, Olympic, JEX and REX. While these payments are in the ordinary course of business, the Company did not have similar transactions with other well owners (in thousands): | ||||||||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Olympic | JEX | REX | Olympic | JEX | REX | Olympic | JEX | REX | ||||||||||||||||||||
Reimbursement of certain costs | $ | -54 | $ | -29 | $ | — | $ | — | $ | -115 | $ | -4 | $ | — | $ | -496 | $ | -9 | ||||||||||
Rent received for sublease | — | 142 | — | — | — | — | — | — | — | |||||||||||||||||||
Prospect fees | — | — | — | — | -1,000 | — | — | — | — | |||||||||||||||||||
Advisory Agreements | — | — | — | — | -361 | — | — | -1,530 | — | |||||||||||||||||||
REX distribution to members | — | — | — | — | — | -197 | — | — | 1,469 | |||||||||||||||||||
Schedule Of Related Party Balances | ||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Olympic | JEX | REX | Olympic | JEX | REX | |||||||||||||||||||||||
Accounts receivable: | ||||||||||||||||||||||||||||
Joint interest billing | 48 | 42 | 12 | 34 | 87 | 116 | ||||||||||||||||||||||
Accounts payable: | ||||||||||||||||||||||||||||
Royalties and revenue payable | -1,006 | -620 | -175 | -1,293 | -877 | -466 | ||||||||||||||||||||||
Organization_And_Business_Deta
Organization And Business (Details) | 0 Months Ended | ||
Oct. 01, 2013 | Dec. 31, 2014 | Apr. 30, 2012 | |
item | |||
GULF OF MEXICO | |||
Gas and Oil Acreage [Line Items] | |||
Exploratory Prospects | 6 | ||
Crimson [Member] | |||
Gas and Oil Acreage [Line Items] | |||
Acquisition of Crimson, shares | 3,864,101 | ||
Ownership percentage acquired | 20.30% | ||
Exaro Energy III LLC [Member] | |||
Gas and Oil Acreage [Line Items] | |||
Equity method investment, ownership percentage | 37.00% | 37.00% |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||||
Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2013 | Apr. 30, 2012 |
Significant Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $0 | $79,487,000 | $151,940,000 | |||
Outstanding checks in accounts payable that have not yet been presented for payment | 12,100,000 | 5,900,000 | ||||
Allowance for doubtful accounts | 590,000 | 578,000 | ||||
Impairment of proved properties | 11,400,000 | 0 | 14,100,000 | |||
Impairment charges, unproved properties | 15,600,000 | 0 | ||||
Exploration expenses | 33,387,000 | 1,811,000 | 51,903,000 | |||
Gas balancing asset (liability) | 0 | 0 | 0 | |||
Weighted average incremental shares | 2 | |||||
Potentially dilutive shares | 339,896 | 187,302 | 0 | |||
Derivative contract | 0 | 0 | ||||
Commodity Contract [Member] | Designated as Hedging Instrument [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Derivative contract | 0 | |||||
RBC Credit Facility [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Debt issuance costs incurred | 2,200,000 | |||||
Original term of credit line | 4 years | |||||
Ship Shoal 263 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment of proved properties | 12,000,000 | |||||
Impairment charges, unproved properties | 12,100,000 | |||||
Eugene Island 24 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment of proved properties | 2,100,000 | |||||
Ship Shoal 83 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment charges, unproved properties | 600,000 | |||||
Brazos 543 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment charges, unproved properties | 200,000 | |||||
Ship Shoal 255 Well [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment charges, unproved properties | 3,500,000 | |||||
Exploration expenses | 31,500,000 | |||||
Unproved Properties With Expiring Leases [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment charges, unproved properties | 20,100,000 | |||||
South Timbalier 17 [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment of proved properties | 7,700,000 | |||||
Undrilled Offshore Leases [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment charges, unproved properties | 9,700,000 | |||||
Tuscaloosa Marine Shale [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Impairment of proved properties | 3,700,000 | |||||
Impairment charges, unproved properties | $9,700,000 | |||||
Minimum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property and equipment depreciation, estimated useful life | 3 years | |||||
Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Property and equipment depreciation, estimated useful life | 13 years | |||||
Restricted assets, percent of net assets | 25.00% | |||||
Moblize, Inc. [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cost method investment ownership percentage | 19.50% | |||||
Alta Energy [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Cost method investment ownership percentage | 2.00% | 2.00% | ||||
Exaro Energy III LLC [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of seats on Board of Directors | 2 | |||||
Equity method investment, ownership percentage | 37.00% | 37.00% |
Concentration_Of_Credit_Risk_D
Concentration Of Credit Risk (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Concentration Risk [Line Items] | |
Number of Months of Potential Revenue Loss | 2 months |
Sales Revenue, Goods, Net [Member] | ConocoPhillips Company [Member] | Customer Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 31.00% |
Sales Revenue, Goods, Net [Member] | Shell Trading US Company [Member] | Customer Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 10.00% |
Sales Revenue, Goods, Net [Member] | Sunoco Inc [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 27.00% |
Sales Revenue, Goods, Net [Member] | Enterprise Products Operating LLC [Member] | Customer Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 5.00% |
Sales Revenue, Goods, Net [Member] | Exxon Mobil Oil Corp. [Member] | |
Concentration Risk [Line Items] | |
Concentration risk, percentage | 7.00% |
Merger_With_Crimson_Exploratio2
Merger With Crimson Exploration Inc. (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | ||||||
Oct. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2014 | Oct. 28, 2014 | Sep. 30, 2013 | Oct. 22, 2010 | |
Business Acquisition [Line Items] | |||||||||
Change in estimate of ARO | $18,000 | $58,000 | |||||||
Accrued interest and pre-payment penalty | 1,800,000 | ||||||||
Repayment of long-term debt | 127,600,000 | 235,373,000 | |||||||
Provision/(benefit) at statutory tax rate | 37.00% | ||||||||
Pro forma, depletion adjustment | 1,900,000 | 7,500,000 | |||||||
Decrease in interest expense | 16,000,000 | 21,300,000 | |||||||
Pro forma impairment charges | 2,900,000 | 132,000,000 | |||||||
RBC Credit Facility [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | 500,000,000 | ||||||||
Revolving credit facility, expiration period | 4 years | ||||||||
Revolving credit facility, borrowing base | 275,000,000 | 275,000,000 | |||||||
Credit facility fees | 2,200,000 | ||||||||
Borrowings under new revolving credit facility | 110,000,000 | ||||||||
Effective interest rate on credit facility | 2.20% | ||||||||
Amegy Bank Credit Agreement [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | 40,000,000 | 40,000,000 | |||||||
Revolving credit facility, borrowing base | 40,000,000 | ||||||||
Barclays [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Assumed debt, accrued interest, and prepayment premium | 175,000,000 | ||||||||
Wells Fargo [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Assumed debt, accrued interest, and prepayment premium | 58,600,000 | ||||||||
Debt Assumed from Crimson Acquisition [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Repayment of long-term debt | 127,600,000 | ||||||||
Crimson [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Conversion rate for crimson stock | 0.08288 | ||||||||
Common stock issued to Crimson stockholders | 3,864,101 | ||||||||
Ownership percentage, post-merger | 20.30% | ||||||||
Change in estimate of ARO | 2,500,000 | ||||||||
Common stock shares acquired | 46,624,721 | ||||||||
Stock options issued pursuant to acquisition | 136,000 | ||||||||
Closing price of the Company common stock on October 1, 2013 | $37.75 | ||||||||
Minimum risk free interest rate | 0.62% | ||||||||
Maximum risk free interest rate | 1.35% | ||||||||
Minimum expected volatility rate | 29.30% | ||||||||
Maximum expected volatility rate | 38.60% | ||||||||
Expected dividend yields | 0.00% | ||||||||
Weighted average fair value per share for the options (in USD per share) | $5.14 | ||||||||
Accrued interest and pre-payment penalty | 1,800,000 | ||||||||
Assumed debt, accrued interest, and prepayment premium | 235,373,000 | ||||||||
Repayment of long-term debt | 235,400,000 | ||||||||
Additional deferred tax liability due to basis differences | 42,800,000 | ||||||||
Change in fair value of deferred tax assets related to valuation allowances | 10,200,000 | ||||||||
Operating loss carryforwards | 110,000,000 | ||||||||
Crimson contributed revenue since acquisition | 143,400,000 | 33,400,000 | |||||||
Crimson contributed income (loss) since acquisition | 4,900,000 | 700,000 | |||||||
Stock-based compensation expense | 5,700,000 | ||||||||
Amortization of debt issuance costs | 800,000 | ||||||||
Amortization of debt discount | 3,700,000 | ||||||||
Increase (decrease) in valuation allowance of deferred tax asset | 29,200,000 | -10,200,000 | |||||||
Crimson [Member] | Barclays [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Long-term debt | 175,000,000 | ||||||||
Accrued interest and pre-payment penalty | 1,800,000 | ||||||||
Crimson [Member] | Wells Fargo [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Long-term debt | 58,600,000 | ||||||||
Crimson [Member] | Minimum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Average expected term (in years) | 2 years 8 months 12 days | ||||||||
Crimson [Member] | Maximum [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Average expected term (in years) | 4 years 9 months 15 days | ||||||||
General and Administrative Expense [Member] | Crimson [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Merger related expenditures | 6,800,000 | ||||||||
Bankers success fees | 2,800,000 | ||||||||
Accrued bonus expense | 1,300,000 | ||||||||
Debt Issuance Costs [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Pro forma, depletion adjustment | $600,000 | $400,000 |
Recovered_Sheet1
Merger with Crimson Exploration Inc. (Consideration Transferred, Liabilities Assumed, Assets Acquired) (Details) (Crimson [Member], USD $) | 0 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Oct. 01, 2013 | Oct. 01, 2013 |
Crimson [Member] | ||
Consideration transferred: | ||
Crimson common stock to be acquired by the Company | 46,624,721 | 46,624,721 |
Exchange ratio of the Company common shares for each Crimson common share | 0.08288 | 0.08288 |
Common stock issued to Crimson stockholders | 3,864,101 | |
Closing price of the Company common stock on October 1, 2013 | $37.75 | $37.75 |
Fair value of common stock issued | $145,870 | |
Cash paid for partial shares | 6 | |
Fair value of stock options issued | 698 | |
Total estimated consideration transferred | 146,574 | |
Fair value of other liabilities assumed: | ||
Current liabilities | 60,124 | 60,124 |
Long-term debt | 235,373 | 235,373 |
Asset retirement obligations and other non-current liabilities | 12,967 | 12,967 |
Amount attributable to liabilities assumed | 308,464 | 308,464 |
Total consideration including liabilities assumed | 455,038 | 455,038 |
Fair value of assets acquired: | ||
Current assets | 13,492 | 13,492 |
Current and non-current deferred tax asset, net | 24,905 | 24,905 |
Natural gas and oil properties, net | 416,433 | 416,433 |
Other non-current assets | 208 | 208 |
Amount attributable to net assets acquired | $455,038 | $455,038 |
Merger_With_Crimson_Exploratio3
Merger With Crimson Exploration Inc. (Schedule Of Consolidated Pro Forma Information) (Details) (Crimson [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Crimson [Member] | ||
Pro forma merger summary | ||
Revenue | $256,594 | $261,772 |
Net income | $40,166 | ($83,912) |
Acquisitions_Dispositions_And_1
Acquisitions, Dispositions And Gains From Affiliates (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 |
Alta Energy [Member] | ||||
Business Acquisition [Line Items] | ||||
Expected proceeds from sale of investment | $30.50 | |||
Cost method investment ownership percentage | 2.00% | 2.00% | ||
Gain on sale of investments | 5.4 | 23.1 | ||
Expected future porceeds from sale of investment | 2 | |||
Accumulated distributions in excess of original investment | 15.3 | |||
Kaybob Duvernay [Member] | ||||
Business Acquisition [Line Items] | ||||
Cost method investment ownership percentage | 5.00% | |||
Dutch Well [Member] | ||||
Business Acquisition [Line Items] | ||||
Percentage of working interest acquired | 7.84% | |||
Percentage of revenue interest acquired | 6.53% | |||
Acquisition purchase price | 18.8 | |||
Purchase price adjustment (reduction in purchase price) | -4.1 | |||
Acquisition purchase price, net | 14.7 | |||
Developed and Undeveloped Properties in Madison and Grimes Counties, Southeast Texas [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price adjustment (reduction in purchase price) | -0.1 | 0.4 | ||
Acquisition purchase price, net | 20.3 | |||
Percentage of interest sold | 7.10% | 7.10% | ||
Aggregate sales price of assets sold | 20 | 20 | ||
Gain (loss) on sale of oil and gas property | ($0.20) | $6.60 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maximum period of interest rate on floating-rate debt | 3 months | |
Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity price contracts - assets | $76 | |
Commodity price contracts - liabilities | -1,207 | |
Level 1 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity price contracts - assets | ||
Commodity price contracts - liabilities | ||
Level 2 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity price contracts - assets | 76 | |
Commodity price contracts - liabilities | -1,207 | |
Level 3 [Member] | Commodity Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity price contracts - assets | ||
Commodity price contracts - liabilities |
Derivative_Instruments_Schedul
Derivative Instruments (Schedule Of Fair Value Of Commodity Derivatives) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | |
Liabilities: | ||||
Derivative contract | $0 | $0 | ||
Commodity Derivatives [Member] | ||||
Commodity derivatives | ||||
Gross | 76,000 | |||
Netting | -76,000 | [1] | ||
Liabilities: | ||||
Gross | -1,207,000 | |||
Netting | 76,000 | [1] | ||
Total | ($1,131,000) | |||
[1] | GrossNetting (1)TotalAssets$ 76$ (76)$ —Liabilities$ (1,207)$ 76$ (1,131)Represents counterparty netting under agreements governing such derivatives |
Derivative_Instruments_Schedul1
Derivative Instruments (Schedule Of Derivative Contracts On Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) | ($1,284) | $278 | |
Unrealized gain (loss) | 1,131 | -1,410 | |
Gain (loss) on derivatives, net | -153 | -1,132 | 0 |
Crude Oil Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) | 276 | 180 | |
Unrealized gain (loss) | 1,183 | -1,179 | |
Natural Gas Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss) | -1,560 | 98 | |
Unrealized gain (loss) | ($52) | ($231) |
Stock_Based_Compensation_Narra
Stock Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Feb. 24, 2015 | Feb. 29, 2012 | Oct. 01, 2013 | Dec. 31, 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options exercised in period (in shares) | 4,165 | 791 | ||||||||||
Options vested and exercisable (in shares) | 129,934 | |||||||||||
Granted vested options, contractual term | 6 years | |||||||||||
Excess tax benefit from exercise/cancellation of stock options | $0 | $254,000 | ||||||||||
Stock option expense | 0 | 0 | 154,000 | |||||||||
Aggregate intrinsic value of exercies during period | 59,009 | 7,721 | 500,000 | |||||||||
Share-based Compensation | 4,515,000 | 3,180,000 | -154,000 | |||||||||
Minimum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options granted, exercise price (in dollars per share) | $25.70 | |||||||||||
Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options granted, exercise price (in dollars per share) | $60.33 | |||||||||||
Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based Compensation | 4,500,000 | 3,200,000 | ||||||||||
Restricted stock granted in period (in shares) | 26,386 | 356,299 | 0 | |||||||||
Weighted average fair value of options granted (in dollars per share) | $40.83 | $44.10 | ||||||||||
Value of issued stock after adjustment for estimated forfeiture rate | 1,100,000 | 8,100,000 | ||||||||||
Weighted average forfeiture rate | 2.20% | 5.70% | ||||||||||
Stock vested in period (in shares) | 94,807 | 63,667 | ||||||||||
Compensation expense not yet recognized | $7,700,000 | |||||||||||
Restricted Stock [Member] | Officers And Vice Presidents [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 3 years | |||||||||||
Restricted stock granted in period (in shares) | 254,677 | |||||||||||
Vesting percentage | 25.00% | |||||||||||
Restricted Stock [Member] | New And Existing Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 4 years | 4 years | ||||||||||
Restricted stock granted in period (in shares) | 10,714 | 88,466 | ||||||||||
Restricted Stock [Member] | New Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 4 years | |||||||||||
Restricted stock granted in period (in shares) | 1,802 | |||||||||||
Restricted Stock [Member] | Board of Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 1 year | 1 year | ||||||||||
Restricted stock granted in period (in shares) | 15,672 | 11,354 | ||||||||||
2009 Equity Compensation Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock or options authorized for grant (in shares) | 1,500,000 | |||||||||||
Shares available for grant | 1,100,000 | |||||||||||
2009 Equity Compensation Plan [Member] | Minimum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration term | 5 years | |||||||||||
2009 Equity Compensation Plan [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration term | 10 years | |||||||||||
Stock Incentive Plan 2005 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration term | 10 years | |||||||||||
Shares available for grant | 7,030 | 43,472 | ||||||||||
Stock Incentive Plan 2005 [Member] | Minimum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 1 year | |||||||||||
Stock Incentive Plan 2005 [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 4 years | |||||||||||
Stock Incentive Plan 2005 [Member] | Employee Stock Options [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options issued and outstanding | 135,898 | |||||||||||
Vested, end of the year (in shares) | 135,898 | |||||||||||
Stock Incentive Plan 2005 [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options issued and outstanding | 136,428 | |||||||||||
Vested, end of the year (in shares) | 136,428 | |||||||||||
1999 Plan, 2009 and 2005 Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options issued and outstanding | 129,934 | 135,107 | 135,107 | 135,107 | 45,000 | |||||||
Shares available for grant | 1,143,006 | 1,162,173 | 1,475,000 | 1,162,173 | 1,162,173 | |||||||
Options exercised in period (in shares) | 4,165 | 791 | ||||||||||
Options vested and exercisable (in shares) | 129,934 | 135,107 | 135,107 | 135,107 | ||||||||
Forfeitures during the period (in shares) | 1,008 | [1] | 45,000 | [1] | ||||||||
Vested, end of the year (in shares) | 129,934 | 135,107 | 135,107 | 135,107 | 45,000 | |||||||
1999 Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options exercised in period (in shares) | 45,000 | |||||||||||
Restricted stock granted in period (in shares) | 7,030 | |||||||||||
2009 Plan Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted stock granted in period (in shares) | 1,103 | |||||||||||
Long-Term Incentive Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 25.00% | |||||||||||
Vesting Period 1 [Member] | 2009 Equity Compensation Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 2 years | |||||||||||
Vesting Period 2 [Member] | 2009 Equity Compensation Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 3 years | |||||||||||
Vesting Period 3 [Member] | 2009 Equity Compensation Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period (in years) | 4 years | |||||||||||
[1] | For the year ended December 31, 2012, forfeited options consist of options that were net-settled for cash with the Company. |
Stock_Based_Compensation_Summa
Stock Based Compensation (Summary Of Stock Options Granted) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Exercised (in shares) | -4,165 | -791 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |||||
Exercisable, end of year (in shares) | 129,934 | ||||
1999 Plan, 2009 and 2005 Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Outstanding, beginning of year (in shares) | 135,107 | 45,000 | |||
Options assumed due to merger (in shares) | 135,898 | ||||
Exercised (in shares) | -4,165 | -791 | |||
Forfeited (in shares) | -1,008 | [1] | -45,000 | [1] | |
Outstanding, end of year (in shares) | 129,934 | 135,107 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Outstanding, beginning of year (in dollars per share) | $53 | $54.21 | |||
Options assumed due to merger (in dollars per share) | $52.90 | ||||
Exercised (in dollars per share) | $28.93 | $36.16 | |||
Forfeited (in dollars per share) | $42.39 | [1] | $54.21 | [1] | |
Outstanding, end of year (in dollars per share) | $53.85 | $53 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | |||||
Expected to vest, end of the period | $4 | $459 | |||
Exercisable, end of year (in shares) | 129,934 | 135,107 | |||
Exercisable, end of year (in dollars per share) | $53.85 | $53 | |||
Aggregate intrinsic value ($000), exercisable | $4 | $459 | |||
Available for grant, end of year (in shares) | 1,143,006 | 1,162,173 | 1,475,000 | ||
[1] | For the year ended December 31, 2012, forfeited options consist of options that were net-settled for cash with the Company. |
Stock_Based_Compensation_Summa1
Stock Based Compensation (Summary Of Restricted Stock Activity) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock [Member] | |||
Restricted stock activity, shares | |||
Outstanding, beginning of the period (in shares) | 292,632 | ||
Granted (in shares) | 26,386 | 356,299 | 0 |
Vested (in shares) | -94,807 | -63,667 | |
Canceled/Forfeited (in shares) | -14,249 | ||
Not vested, end of the period (in shares) | 209,962 | 292,632 | |
Expected to vest, end of the period (in shares) | 192,570 | 260,359 | |
Restricted stock activity, weighted average fair value | |||
Outstanding, beginning of the period (in dollars per share) | $44.38 | ||
Granted (in dollars per share) | $40.83 | $44.10 | |
Vested (in dollars per share) | $44.11 | $42.80 | |
Canceled/Forfeited (in dollars per share) | $47.30 | ||
Not vested, end of the period (in dollars per share) | $43.86 | $44.38 | |
Vested, end of the period (in dollars per share) | |||
Expected to vest (in dollars per share) | $43.84 | $44.36 | |
Restricted stock activity, intrinsic value | |||
Outsanding, beginning of the period | $13,830 | ||
Granted | 1,073 | 15,723 | |
Vested | 3,454 | 2,725 | |
Canceled/Forfeited | 579 | ||
Not vested, end of the period | 6,139 | 13,830 | |
Expected to vest, end of the period | $5,631 | $12,305 |
Share_Repurchase_Programs_Deta
Share Repurchase Programs (Details) (USD $) | 1 Months Ended | 12 Months Ended | 36 Months Ended | |||
Feb. 29, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Sep. 30, 2011 | |
employee | employee | employee | ||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Treasury shares at cost | 205,457 | 0 | 162,214 | |||
Average price of shares repurchased (in dollars per share) | $35.89 | $51.62 | ||||
Stock repurchased value | $7,400,000 | $8,400,000 | ||||
Stock options, net-settled | 45,000 | 45,000 | ||||
Number of employees net-settled stock options | 2 | 2 | ||||
Cash used to net-settle awards | 465,000 | 465,000 | ||||
$50 Million Share Repurchase Program [Member] | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Approved share repurchase program value | 50,000,000 | |||||
Stock repurchased value | 18,200,000 | |||||
Stock options, net-settled | 45,000 | |||||
Number of employees net-settled stock options | 2 | |||||
Number of shares repurchased during period | 403,334 | |||||
Value of repurchase program available for future purchases | $31,800,000 | $31,800,000 |
Other_Financial_Information_Sc
Other Financial Information (Schedule Of Additional Financial Details) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable: | ||
Trade receivable | $13,926 | $42,196 |
Receivable for Alta Resources distribution | 1,993 | 7,358 |
Joint interest billing | 4,096 | 5,172 |
Income taxes receivable | 3,274 | 4,293 |
Other receivables | 2,610 | 2,172 |
Allowance for doubtful accounts | -590 | -578 |
Total Accounts Receivable | 25,309 | 60,613 |
Prepaid Expenses and Other: | ||
Prepaid insurance | 1,242 | 1,113 |
Other | 699 | 918 |
Total Prepaid Expenses and Other | 1,941 | 2,031 |
Accounts Payable and Accrued Liabilities: | ||
Royalties and revenue payable | 31,653 | 44,933 |
Accrued exploration and development | 26,538 | 17,803 |
Trade payable | 17,282 | 11,589 |
Advances from partners | 8,334 | 6,538 |
Accrued general and administrative expenses | 6,258 | 10,872 |
Other accounts payable and accrued liabilities | 2,827 | 5,098 |
Total Accounts Payable and Accrued Liabilities | $92,892 | $96,833 |
Other_Financial_Information_Sc1
Other Financial Information (Schedule Of Non-Cash Transactions) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash payments: | |||
Interest payments | $2,786 | $1,056 | $71 |
Income tax payments (receipts) | 241 | 341 | 24,307 |
Non-cash items excluded from investing activities in the consolidated statements of cash flows: | |||
Increase in accrued capital expenditures | 8,735 | 7,004 | 1,192 |
Assets acquired & liabilites assumed in the Merger | |||
Accounts receivable | 12,955 | ||
Prepaids | 639 | ||
Proved natural gas and oil properties | 2,517 | 413,916 | |
Deferred tax asset and other | 24,940 | ||
Accounts payable and accrued liabilities | -60,110 | ||
Other non-current liabilities | -256 | ||
Long-term debt | -235,373 | ||
Asset retirement obligations | -2,517 | -11,183 | |
Non-cash items excluded from financing activities in the consolidated statements of cash flows: | |||
Issuance of common stock in connection with the merger | $145,870 |
Recovered_Sheet2
Investment in Exaro Energy III LLC (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | ||||
Gain from investment in affiliates (net of income taxes) | $6,923,000 | $2,310,000 | $60,000 | |
Tax Expense (Benefit) associated with Equity Method Investment Income/ (loss) | 3,727,000 | 1,245,000 | 32,000 | |
Exaro Energy III LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in affiliate | 46,900,000 | |||
Equity method investment, ownership percentage | 37.00% | 37.00% | ||
Total Investment Commitment In Affiliates With Other Parties | 183,000,000 | |||
Share of equity in investment | 61,200,000 | |||
Gain from investment in affiliates (net of income taxes) | 6,900,000 | 2,300,000 | 60,000 | |
Exaro Energy III LLC [Member] | Maximum [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in affiliate | $67,500,000 |
Recovered_Sheet3
Investment in Exaro Energy III LLC (Schedule Of Condensed Balance Sheet Data) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non-current assets: | ||
Net property and equipment | $748,623 | $791,023 |
Other non-current assets | 63,752 | 53,164 |
Exaro Energy III LLC [Member] | ||
Equity Method Investment, Summarized Financial Information [Abstract] | ||
Current assets | 35,013 | 30,284 |
Non-current assets: | ||
Net property and equipment | 233,997 | 182,226 |
Restricted cash escrow account | 577 | 8,732 |
Other non-current assets | 1,779 | 1,103 |
Total non-current assets | 236,353 | 192,061 |
Total assets | 271,366 | 222,345 |
Current liabilities | 9,405 | 13,717 |
Non-current liabilities: | ||
Long-term debt | 94,500 | 70,000 |
Other non-current liabilities | 1,084 | 923 |
Total non-current liabilities | 95,584 | 70,923 |
Member's equity | 166,377 | 137,705 |
Total liabilities & member's equity | $271,366 | $222,345 |
Investment_in_Exaro_Energy_III2
Investment in Exaro Energy III LLC (Schedule Of Condensed Income Statement Data) (Details) (USD $) | 12 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||||
Other gain (loss) | $124 | $31,785 | ($463) | |
Less: | ||||
General & administrative expense | 34,045 | 26,512 | 11,265 | |
Income (loss) from continuing operations | -21,874 | 41,362 | -907 | |
Exaro Energy III LLC [Member] | ||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||||
Oil and natural gas sales | 79,536 | 52,698 | 7,514 | |
Other gain (loss) | 5,069 | -544 | -3,269 | |
Less: | ||||
Lease operating expenses | 22,452 | 16,136 | 2,035 | |
Depreciation, depletion, amortization & accretion | 26,036 | 16,058 | 2,350 | |
General & administrative expense | 3,484 | 3,294 | 2,872 | |
Income (loss) from continuing operations | 32,633 | 16,666 | -3,012 | |
Net interest income (expense) | -3,861 | -3,536 | 25 | |
Net income (loss) | $28,772 | $13,130 | ($2,987) |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||
Liabilities incurred during period | $3,123,000 | $14,145,000 |
Liabilities settled | 1,963,000 | 207,000 |
Crimson [Member] | ||
Business Acquisition [Line Items] | ||
Liabilities incurred during period | 2,500,000 | 11,200,000 |
New Wells Drilled [Member] | ||
Business Acquisition [Line Items] | ||
Liabilities incurred during period | 600,000 | 2,900,000 |
Wells Plugged and Abandoned [Member] | ||
Business Acquisition [Line Items] | ||
Liabilities settled | 137,000 | |
Developed and Undeveloped Properties in Madison and Grimes Counties, Southeast Texas [Member] | ||
Business Acquisition [Line Items] | ||
Liabilities settled | $70,000 |
Asset_Retirement_Obligation_Sc
Asset Retirement Obligation (Schedule of Change in Asset Retirement Obligation) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligation [Abstract] | ||
Balance as of the beginning of the period | $23,334 | $8,678 |
Liabilities incurred during period | 3,123 | 14,145 |
Liabilities settled during period | -1,963 | -207 |
Accretion | 1,303 | 660 |
Sales | -69 | |
Change in estimate | 18 | 58 |
Balance as of the end of the period | $25,746 | $23,334 |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Oct. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 22, 2010 | Oct. 28, 2014 | Sep. 30, 2013 | |
Debt Instrument [Line Items] | |||||||
Accrued interest and pre-payment penalty | $1,800,000 | ||||||
Repayment of long-term debt | 127,600,000 | 235,373,000 | |||||
Credit facility amount outstanding | 110,000,000 | ||||||
Interest expense | 2,658,000 | 1,171,000 | -96,000 | ||||
RBC Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility, expiration period | 4 years | ||||||
Revolving credit facility, borrowing base | 275,000,000 | 275,000,000 | |||||
Credit facility fees | 2,200,000 | ||||||
Credit facility amount outstanding | 63,400,000 | 90,000,000 | |||||
Letters of credit amount outstanding | 1,900,000 | 1,900,000 | |||||
Line of credit, available | 209,700,000 | ||||||
Revolving credit facility, maximum borrowing capacity | 500,000,000 | ||||||
Interest expense | 2,700,000 | 1,200,000 | |||||
Arrangement fee | 2,200,000 | ||||||
RBC Credit Facility [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.38% | ||||||
RBC Credit Facility [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.50% | ||||||
Amegy Bank Credit Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit facility, borrowing base | 40,000,000 | ||||||
Commitment fee percentage | 0.13% | ||||||
Revolving credit facility, maximum borrowing capacity | 40,000,000 | 40,000,000 | |||||
Interest expense | 37,000 | 50,000 | |||||
Arrangement fee | 300,000 | ||||||
Amegy Bank Credit Agreement [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||||||
Amegy Bank Credit Agreement [Member] | Minimum [Member] | LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||||
Crimson [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt assumed with merger | 235,373,000 | ||||||
Accrued interest and pre-payment penalty | 1,800,000 | ||||||
Repayment of long-term debt | 235,400,000 | ||||||
Barclays [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt assumed with merger | 175,000,000 | ||||||
Barclays [Member] | Crimson [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Accrued interest and pre-payment penalty | 1,800,000 | ||||||
Wells Fargo [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt assumed with merger | $58,600,000 |
Recovered_Sheet4
Commitments And Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Oct. 31, 2013 | Jul. 31, 2014 | Oct. 01, 2013 | |
Deferred Compensation Arrangement, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||
Lease commitment | $6,000,000 | $1,000,000 | $500,000 | ||||
Severance payments | 400,000 | ||||||
Jefferson Davis Parish Case [Member] | |||||||
Legal Proceedings | |||||||
Number of wells involved in litigation | 2 | ||||||
Damages sought by plaintiffs | 13,400,000 | ||||||
Lavaca County Case [Member] | |||||||
Legal Proceedings | |||||||
Number of wells involved in litigation | 2 | ||||||
Damages sought by plaintiffs | 5,300,000 | ||||||
Litigation Case Filed by Mineral Interest Owner Harris County [Member] | |||||||
Legal Proceedings | |||||||
Damages sought by plaintiffs | 10,700,000 | ||||||
Additional portion of mineral interest claimed by plaintiff | 0.06% | ||||||
Board of Directors Chairman [Member] | |||||||
Employment Agreements | |||||||
Bonus payment | 4,000,000 | ||||||
Chief Executive Officer [Member] | |||||||
Employment Agreements | |||||||
Base salary under employment agreement | 600,000 | ||||||
Chief Executive Officer [Member] | Minimum [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 50.00% | ||||||
Stock Option Awards based on % of Salary | 75.00% | ||||||
Chief Executive Officer [Member] | Target [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 100.00% | ||||||
Stock Option Awards based on % of Salary | 350.00% | ||||||
Chief Executive Officer [Member] | Maximum [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 150.00% | ||||||
Stock Option Awards based on % of Salary | 450.00% | ||||||
Chief Financial Officer [Member] | |||||||
Employment Agreements | |||||||
Base salary under employment agreement | 400,000 | ||||||
Chief Financial Officer [Member] | Minimum [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 50.00% | ||||||
Stock Option Awards based on % of Salary | 75.00% | ||||||
Chief Financial Officer [Member] | Target [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 90.00% | ||||||
Stock Option Awards based on % of Salary | 250.00% | ||||||
Chief Financial Officer [Member] | Maximum [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 130.00% | ||||||
Stock Option Awards based on % of Salary | 450.00% | ||||||
CEO, CFO And The Three Directors [Member] | |||||||
Employment Agreements | |||||||
Employment agreement, initial term | 3 years | ||||||
Employment agreement, extension term | 2 years | ||||||
VPs, Isaac, Mengle & Atkins | Minimum [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 50.00% | ||||||
Stock Option Awards based on % of Salary | 75.00% | ||||||
VPs, Isaac, Mengle & Atkins | Target [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 80.00% | ||||||
Stock Option Awards based on % of Salary | 250.00% | ||||||
VPs, Isaac, Mengle & Atkins | Maximum [Member] | |||||||
Employment Agreements | |||||||
Cash bonus awards based on % of salary | 120.00% | ||||||
Stock Option Awards based on % of Salary | 350.00% | ||||||
VP, Isaac | |||||||
Employment Agreements | |||||||
Base salary under employment agreement | 320,000 | ||||||
VP, Mengle | |||||||
Employment Agreements | |||||||
Base salary under employment agreement | 300,000 | ||||||
VP, Atkins | |||||||
Employment Agreements | |||||||
Base salary under employment agreement | 310,000 | ||||||
Exaro Energy III LLC [Member] | |||||||
Deferred Compensation Arrangement, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||||
Future planned investments | $20,600,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Delay Rentals and Operating and Capital Leases [Abstract] | |
2015 | $3,867 |
2016 | 2,158 |
2017 | 1,948 |
2018 | 1,694 |
2019 | 416 |
Total | $10,083 |
Net_Income_Loss_Per_Common_Sha2
Net Income (Loss) Per Common Share (Components of Basic and Diluted Net Income Per Share of Common Stock) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Income (loss) from continuing operations | ($21,874) | $41,362 | ($907) |
Income (loss) from discontinued operations, net of taxes | -29 | ||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | ($21,874) | $41,362 | ($936) |
Weighted average shares, basic (in shares) | 19,059 | 16,156 | 15,295 |
Stock options, net of shares assumed purchased (in shares) | 2 | ||
Weighted average shares, diluted (in shares) | 19,059 | 16,158 | 15,295 |
Income from continuing operations, basic (in dollars per share) | ($1.15) | $2.56 | ($0.06) |
Discontinued operations, net of income taxes, basic (in dollars per share) | $0 | ||
Total (in dollars per share) | ($1.15) | $2.56 | ($0.06) |
Income from continuing operations, diluted (in dollars per share) | ($1.15) | $2.56 | ($0.06) |
Discontinued operations, net of income taxes, diluted (in dollars per share) | $0 | ||
Total (in dollars per share) | ($1.15) | $2.56 | ($0.06) |
Potentially dilutive shares | 339,896 | 187,302 | 0 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2013 | |
Operating Loss Carryforwards [Line Items] | ||||
U.S. federal statutory corporate rate | 35.00% | 35.00% | 35.00% | |
Proceeds from Life Insurance Policies | $10,000,000 | |||
Non-deductible merger related expenses | 3,000,000 | |||
Non-deductible compensation expenses | 1,400,000 | |||
Valuation allowance | -2,161,000 | -2,552,000 | ||
NOL, Valuation allowance | 6,200,000 | |||
Tax adjusted NOL, Valuation allowance | 2,200,000 | |||
Operating loss carryforwards, expired during period | 1,100,000 | |||
Interest and penalties related to unrecognized tax benefits | 0 | |||
Unrecognized tax benefits that would impact effective tax rate | 0 | |||
Crimson [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 110,000,000 | |||
NOL, Valuation allowance | 36,400,000 | |||
Tax adjusted NOL, Valuation allowance | 12,800,000 | |||
Increase (decrease) in valuation allowance of deferred tax asset | -10,200,000 | 29,200,000 | ||
Valuation allowance released, tax adjusted | 10,200,000 | |||
Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 6,200,000 | |||
NOL, Valuation allowance | 7,300,000 | |||
Tax adjusted NOL, Valuation allowance | 2,600,000 | |||
Louisiana State Taxing Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Depletion, tax effect | 1,700,000 | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 112,300,000 | |||
Federal [Member] | Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 106,100,000 | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $10,200,000 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Provision/(benefit) at statutory tax rate | ($11,920) | $23,011 | ($94) |
State income tax provision, net of federal benefit | 1,028 | 2,928 | 654 |
Permanent differences | 202 | -1,559 | 450 |
State depletion deductions | -1,723 | ||
Other | 230 | 4 | -373 |
Total | ($12,183) | $24,384 | $637 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Provision/(benefit) at statutory tax rate | 35.00% | 35.00% | 35.00% |
State income tax provision, net of federal benefit | -3.00% | 4.45% | -241.84% |
Permanent differences | -0.60% | -2.37% | -166.34% |
State depletion deductions | 5.10% | ||
Other | -0.70% | 0.01% | 137.65% |
Income tax provision /(benefit) | 35.80% | 37.09% | -235.53% |
Income_Taxes_Components_Of_Inc
Income Taxes (Components Of Income Tax Expense Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | ($392) | $8,739 | $7,038 |
State | 478 | 3,857 | 2,168 |
Total | 86 | 12,596 | 9,206 |
Deferred: | |||
Federal | -11,518 | 11,361 | -8,343 |
State | -751 | 427 | -226 |
Total | -12,269 | 11,788 | -8,569 |
Total: | |||
Federal | -11,910 | 20,100 | -1,305 |
State | -273 | 4,284 | 1,942 |
Total | -12,183 | 24,384 | 637 |
Included in gain (loss) from investment in affiliates | 3,727 | 1,245 | 32 |
Income tax benefit (provision) | ($15,910) | $23,139 | $605 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes (Net Deferred Tax Liability) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carryforward | $39,085 | $49,204 |
Income tax credits | 661 | 2,676 |
Derivative instruments | 165 | 564 |
Deferred compensation | 465 | 406 |
Other | 1,953 | 1,165 |
Total deferred tax assets before valuation allowance | 42,329 | 54,015 |
Valuation allowance | -2,161 | -2,552 |
Net deferred tax assets | 40,168 | 51,463 |
Deferred tax liability: | ||
Oil and gas properties | -104,209 | -133,894 |
Investment in affiliates | -28,287 | -21,681 |
Other | -518 | |
Deferred tax liability | -132,496 | -156,093 |
Total net deferred tax liability | ($92,328) | ($104,630) |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Beginning Balance | $518 | $518 |
Ending Balance | $518 | $518 |
Related_Party_Transactions_JEX
Related Party Transactions (JEX, Olympic Energy Partners, And REX) (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2014 | Apr. 30, 2012 | |
JEX [Member] | |||
Related Party Transaction, Oil and Gas Properties [Abstract] | |||
Annual advisory payment | $2,000,000 | ||
First Rights Agreement payment | 500,000 | ||
JEX [Member] | Contaro Advisory [Member] | |||
Related Party Transaction, Oil and Gas Properties [Abstract] | |||
Related party, monthly advisory fee | $10,000 | ||
Percentage fee of cash profits | 1.00% | ||
REX [Member] | |||
Related Party Transaction, Oil and Gas Properties [Abstract] | |||
Ownership interest in REX | 32.30% | ||
Maximum [Member] | Contango Offshore Exploration LLC [Member] | |||
Related Party Transaction, Oil and Gas Properties [Abstract] | |||
Overriding royalty interest, employee benefit | 3.33% | ||
All Future Projects Generated by REX [Member] | JEX Employees [Member] | |||
Related Party Transaction, Oil and Gas Properties [Abstract] | |||
Overriding royalty interest, employee benefit | 3.33% | ||
JEX [Member] | REX [Member] | |||
Related Party Transaction, Oil and Gas Properties [Abstract] | |||
Ownership interest in REX | 34.40% | ||
Third Party [Member] | REX [Member] | |||
Related Party Transaction, Oil and Gas Properties [Abstract] | |||
Ownership interest in REX | 33.30% |
Related_Party_Transactions_Sch
Related Party Transactions (Schedule Of Oil and Gas Ownership Interests) (Details) | Dec. 31, 2014 | Nov. 30, 2013 | Jan. 31, 2012 |
Dutch Number 1 - 5 [Member] | Olympic [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 3.53% | 3.02% | |
Net revenue interest | 2.84% | 2.42% | |
Dutch Number 1 - 5 [Member] | JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 1.88% | 1.61% | |
Net revenue interest | 1.51% | 1.29% | |
Dutch Number 1 - 5 [Member] | JEX Employees [Member] | |||
Related Party Transaction [Line Items] | |||
Overriding royalty interest, employee benefit | 2.02% | ||
Mary Rose Number 1 [Member] | Olympic [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 3.61% | ||
Net revenue interest | 2.70% | ||
Mary Rose Number 1 [Member] | JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 2.01% | ||
Net revenue interest | 1.51% | ||
Mary Rose Number 1 [Member] | JEX Employees [Member] | |||
Related Party Transaction [Line Items] | |||
Overriding royalty interest, employee benefit | 2.79% | ||
Mary Rose Number 2-3 [Member] | Olympic [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 3.61% | ||
Net revenue interest | 2.58% | ||
Mary Rose Number 2-3 [Member] | JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 2.01% | ||
Net revenue interest | 1.44% | ||
Mary Rose Number 2-3 [Member] | JEX Employees [Member] | |||
Related Party Transaction [Line Items] | |||
Overriding royalty interest, employee benefit | 2.79% | ||
Mary Rose Number 4 [Member] | Olympic [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 2.34% | ||
Net revenue interest | 1.70% | ||
Mary Rose Number 4 [Member] | JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 1.31% | ||
Net revenue interest | 0.95% | ||
Mary Rose Number 4 [Member] | JEX Employees [Member] | |||
Related Party Transaction [Line Items] | |||
Overriding royalty interest, employee benefit | 1.82% | ||
Mary Rose Number 5 [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 37.80% | ||
Mary Rose Number 5 [Member] | Olympic [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 2.56% | 2.56% | |
Net revenue interest | 1.87% | ||
Mary Rose Number 5 [Member] | JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 1.43% | 1.40% | |
Net revenue interest | 1.04% | ||
Mary Rose Number 5 [Member] | JEX Employees [Member] | |||
Related Party Transaction [Line Items] | |||
Overriding royalty interest, employee benefit | 1.54% | ||
Ship Shoal 263 [Member] | JEX Employees [Member] | |||
Related Party Transaction [Line Items] | |||
Overriding royalty interest, employee benefit | 3.33% | ||
Vermilion 170 [Member] | JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 4.30% | ||
Net revenue interest | 3.35% | ||
Vermilion 170 [Member] | REX [Member] | |||
Related Party Transaction [Line Items] | |||
Working interests | 12.50% | ||
Net revenue interest | 9.74% | ||
Vermilion 170 [Member] | JEX Employees [Member] | |||
Related Party Transaction [Line Items] | |||
Overriding royalty interest, employee benefit | 3.33% |
Related_Party_Transactions_Sum
Related Party Transactions (Summary Of Transactions) (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2011 | Jul. 31, 2012 | Jun. 20, 2012 | Mar. 20, 2013 | Jun. 30, 2013 | Jul. 31, 2011 | Jan. 31, 2012 | |
Related Party Transaction [Line Items] | ||||||||||||
Stock-based compensation | $4,515,000 | $3,180,000 | ($154,000) | |||||||||
Mr. Romano [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Director Compensation for Related Party | 105,000 | |||||||||||
Restricted stock granted in period (in shares) | 2,612 | |||||||||||
Vesting percentage | 100.00% | |||||||||||
Vesting period (in years) | 1 year | |||||||||||
Mr. Juneau [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Director Compensation for Related Party | 12,000 | |||||||||||
Number of shares accelerated | 1,622 | |||||||||||
Stock-based compensation | 71,000 | |||||||||||
JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Annual sublease rental income | 100,000 | |||||||||||
Vermilion 170 [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Ownership interest in oil and gas well | 100.00% | |||||||||||
Vermilion 170 [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 4.30% | |||||||||||
Net revenue interest | 3.35% | |||||||||||
Prospect fees | 250,000 | |||||||||||
Vermilion 170 [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 12.50% | |||||||||||
Net revenue interest | 9.74% | |||||||||||
Vermilion 170 [Member] | JEX Employees [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 3.33% | |||||||||||
Vermilion 170 [Member] | Until Casing Point [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 100.00% | |||||||||||
Vermilion 170 [Member] | After Casing Point [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 2.60% | |||||||||||
Vermilion 170 [Member] | After Casing Point [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 7.50% | |||||||||||
Vermilion 170 [Member] | First Production [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 1.70% | |||||||||||
Vermilion 170 [Member] | First Production [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 5.00% | |||||||||||
Vermilion 170 [Member] | Final [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 4.30% | |||||||||||
Vermilion 170 [Member] | Final [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 12.50% | |||||||||||
Dutch Number 5 [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 47.05% | |||||||||||
Dutch Number 5 [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 1.60% | |||||||||||
Dutch Number 5 [Member] | Olympic [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 3.02% | |||||||||||
Eloise South [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 23.80% | |||||||||||
Eloise South [Member] | Olympic [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 3.33% | |||||||||||
Eloise South [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 9.60% | |||||||||||
Mary Rose Number 5 [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 37.80% | |||||||||||
Mary Rose Number 5 [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 1.43% | 1.40% | ||||||||||
Net revenue interest | 1.04% | |||||||||||
Mary Rose Number 5 [Member] | Olympic [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 2.56% | 2.56% | ||||||||||
Net revenue interest | 1.87% | |||||||||||
Mary Rose Number 5 [Member] | JEX Employees [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 1.54% | |||||||||||
Eloise North [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 35.80% | |||||||||||
Eloise North [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 0.10% | |||||||||||
Eloise North [Member] | Olympic [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 4.79% | |||||||||||
Eloise North [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 13.20% | |||||||||||
Ship Soal 134 [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Ownership interest in oil and gas well | 100.00% | |||||||||||
Ship Soal 134 [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Prospect fees | 250,000 | |||||||||||
South Timbalier 75 [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 100.00% | |||||||||||
South Timbalier 75 [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Prospect fees | 250,000 | |||||||||||
Lease Block Purchase One [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of lease blocks, oil and gas | 5 | |||||||||||
Period required to drill oil prospects | 48 months | |||||||||||
Lease Block Purchase One [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Prospect fees | 250,000 | |||||||||||
Lease Block Purchase One [Member] | JEX Employees [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 3.33% | |||||||||||
Lease Block Purchase One [Member] | First Production [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 100.00% | |||||||||||
Lease Block Purchase One [Member] | Final [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 22.50% | |||||||||||
Net revenue interest | 17.50% | |||||||||||
Lease Block Purchase One [Member] | Through Production [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 10.00% | |||||||||||
Lease Block Purchase One [Member] | Payout of Post Casing Point Costs [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 12.50% | |||||||||||
Lease Block Purchase Two [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of lease blocks, oil and gas | 1 | |||||||||||
Lease Block Purchase Two [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Prospect fees | 250,000 | |||||||||||
Lease Block Purchase Two [Member] | JEX Employees [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 3.33% | |||||||||||
Lease Block Purchase Two [Member] | First Production [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 10.00% | |||||||||||
Lease Block Purchase Three [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of prospect fees paid | 2 | |||||||||||
Number of lease blocks, oil and gas | 3 | |||||||||||
Period required to drill oil prospects | 48 months | |||||||||||
Lease Block Purchase Three [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Prospect fees | 250,000 | |||||||||||
Lease Block Purchase Three [Member] | JEX Employees [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 3.33% | |||||||||||
Lease Block Purchase Three [Member] | First Production [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 100.00% | |||||||||||
Lease Block Purchase Three [Member] | Final [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 22.50% | |||||||||||
Net revenue interest | 17.50% | |||||||||||
Lease Block Purchase Three [Member] | Through Production [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 10.00% | |||||||||||
Lease Block Purchase Three [Member] | Payout of Post Casing Point Costs [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 12.50% | |||||||||||
South Timbalier 17 [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Prospect fees | $250,000 | |||||||||||
South Timbalier 17 [Member] | JEX Employees [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 0.00% | |||||||||||
South Timbalier 17 [Member] | Payout of All Costs [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 75.00% | |||||||||||
South Timbalier 17 [Member] | After Payout [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 56.30% | |||||||||||
Net revenue interest | 39.90% | |||||||||||
South Timbalier 17 [Member] | After Payout [Member] | REX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 9.40% | |||||||||||
Net revenue interest | 6.70% | |||||||||||
Tuscaloosa Marine Shale [Member] | First Production [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 100.00% | |||||||||||
Tuscaloosa Marine Shale [Member] | Through Production [Member] | Mr. Juneau [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 0.75% | |||||||||||
Tuscaloosa Marine Shale [Member] | Through Production [Member] | JEX [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Working interests | 10.00% | |||||||||||
Tuscaloosa Marine Shale [Member] | Through Production [Member] | JEX Employees [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 2.00% | |||||||||||
Tuscaloosa Marine Shale [Member] | Through Production [Member] | Geologist, Tuscaloosa Marine Shale [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Overriding royalty interest, employee benefit | 2.00% |
Related_Party_Transactions_Pay
Related Party Transactions (Payments Received From (Paid To) Related Parties In Ordinary Course of Business) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Olympic [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue payments as well owners | ($7,349) | ($6,859) | ($6,888) |
Joint interest billing receipts | 673 | 945 | 1,081 |
JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue payments as well owners | -4,882 | -4,628 | -5,230 |
Joint interest billing receipts | 521 | 1,201 | 724 |
REX [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue payments as well owners | -2,270 | -1,932 | -4,308 |
Joint interest billing receipts | 322 | 2,090 | 885 |
Mary Rose Well [Member] | Olympic [Member] | |||
Related Party Transaction [Line Items] | |||
Well cost adjustment | -201 | ||
Mary Rose Well [Member] | JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Well cost adjustment | 118 | ||
Mary Rose Well [Member] | REX [Member] | |||
Related Party Transaction [Line Items] | |||
Well cost adjustment | ($1,185) |
Related_Party_Transactions_Pay1
Related Party Transactions (Payments Received From (Paid To) Related Parties In Specific Transactions) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Olympic [Member] | |||
Related Party Transaction [Line Items] | |||
Reimbursement of certain costs | ($54,000) | ||
JEX [Member] | |||
Related Party Transaction [Line Items] | |||
Reimbursement of certain costs | -29,000 | -115,000 | -496,000 |
Annual sublease rental income | 100,000 | ||
Rent received from sublease | 142,000 | ||
Prospect fees | -1,000,000 | ||
Advisory Agreements | -361,000 | -1,530,000 | |
REX [Member] | |||
Related Party Transaction [Line Items] | |||
Reimbursement of certain costs | -4,000 | -9,000 | |
REX distribution to members | ($197,000) | $1,469,000 |
Related_Party_Transactions_Sch1
Related Party Transactions (Schedule Of Related Party Balances) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts receivable: | ||
Joint interest billing | $4,096 | $5,172 |
Olympic [Member] | ||
Accounts receivable: | ||
Joint interest billing | 48 | 34 |
Accounts payable: | ||
Royalties and revenue payable | -1,006 | -1,293 |
JEX [Member] | ||
Accounts receivable: | ||
Joint interest billing | 42 | 87 |
Accounts payable: | ||
Royalties and revenue payable | -620 | -877 |
REX [Member] | ||
Accounts receivable: | ||
Joint interest billing | 12 | 116 |
Accounts payable: | ||
Royalties and revenue payable | ($175) | ($466) |
Related_Party_Transactions_Oak
Related Party Transactions (Oaktree, Contango ORE, And Equity Compensation) (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||
Feb. 29, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Mar. 30, 2012 | Oct. 01, 2013 | Nov. 30, 2011 | |
employee | employee | |||||
Related Party Transaction [Line Items] | ||||||
Accrued interest and pre-payment penalty | $1,800,000 | |||||
Stock options, net-settled (in shares) | 45,000 | 45,000 | ||||
Number of employees net-settled stock options | 2 | 2 | ||||
Cash used to net-settle awards | 465,000 | 465,000 | ||||
Crimson [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Accrued interest and pre-payment penalty | 1,800,000 | |||||
Oaktree Capital Partners [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership Percentage in Company's Stock | 6.70% | |||||
Director Compensation for Related Party | 64,000 | |||||
Director Compensation for Related Party, Shares | 2,612 | |||||
Vesting period (in years) | 1 year | |||||
Revolving Credit Facility [Member] | Contango ORE, Inc. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Revolving line of credit promissory note, maximum borrowing capacity | 1,000,000 | |||||
Revolving line of credit promissory note, interest rate | 10.00% | |||||
Repayment of advance under the CORE note | 500,000 | |||||
Interest received on CORE note | 15,000 | |||||
Barclays [Member] | Crimson [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Long-term debt | 175,000,000 | |||||
Accrued interest and pre-payment penalty | $1,800,000 |