Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 01, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'NORTHERN OIL & GAS, INC. | ' | ' |
Entity Central Index Key | '0001104485 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $802.20 |
Entity Common Stock, Shares Outstanding | ' | 61,852,670 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash and Cash Equivalents | $5,687,166 | $13,387,998 |
Trade Receivables | 86,816,981 | 70,219,669 |
Advances to Operators | 618,786 | 3,109,591 |
Prepaid and Other Expenses | 770,740 | 1,707,089 |
Derivative Instruments | 62,890 | 4,095,197 |
Deferred Tax Asset | 10,431,000 | 1,695,000 |
Total Current Assets | 104,387,563 | 94,214,544 |
Oil and Natural Gas Properties, Full Cost Method of Accounting | ' | ' |
Proved | 1,611,073,747 | 1,159,191,601 |
Unproved | 70,148,348 | 82,926,384 |
Other Property and Equipment | 1,701,366 | 3,158,224 |
Total Property and Equipment | 1,682,923,461 | 1,245,276,209 |
Less - Accumulated Depreciation and Depletion | -285,616,752 | -162,031,493 |
Total Property and Equipment, Net | 1,397,306,709 | 1,083,244,716 |
DERIVATIVE INSTRUMENTS | 1,745,405 | 1,763,008 |
DEBT ISSUANCE COSTS | 16,160,283 | 11,713,030 |
TOTAL ASSETS | 1,519,599,960 | 1,190,935,298 |
CURRENT LIABILITIES | ' | ' |
Accounts Payable | 168,936,785 | 95,822,162 |
Accrued Expenses | 2,645,178 | 2,454,085 |
Accrued Interest | 3,386,409 | 2,180,416 |
Derivative Instruments | 19,119,646 | 0 |
Total Current Liabilities | 194,088,018 | 100,456,663 |
LONG-TERM LIABILITIES | ' | ' |
Revolving Credit Facility | 75,000,000 | 124,000,000 |
8% Senior Notes Due 2020, Net of Accumulated Amortization of $960,177 and $0 at December 31, 2013 and 2012, respectively | 509,539,823 | 300,000,000 |
Derivative Instruments | 637,208 | 2,547,745 |
Other Noncurrent Liabilities | 3,832,550 | 1,570,630 |
Deferred Tax Liability | 116,674,000 | 76,175,000 |
Total Long-Term Liabilities | 705,683,581 | 504,293,375 |
TOTAL LIABILITIES | 899,771,599 | 604,750,038 |
COMMITMENTS AND CONTINGENCIES (NOTE 8) | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred Stock, Par Value $.001; 5,000,000 Authorized, No Shares Outstanding | 0 | 0 |
Common Stock, Par Value $.001; 95,000,000 Authorized (12/31/2013 - 61,858,199 Shares Outstanding and 12/31/2012 - 63,532,622 Shares Outstanding) | 61,858 | 63,532 |
Additional Paid-In Capital | 446,044,159 | 465,466,420 |
Retained Earnings | 173,722,344 | 120,655,308 |
Total Stockholders' Equity | 619,828,361 | 586,185,260 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,519,599,960 | $1,190,935,298 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
LONG-TERM LIABILITIES | ' | ' |
8% Senior Notes Due 2020, Accumulated Amortization | $960,177 | $0 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred Stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 |
Common Stock, shares authorized (in shares) | 95,000,000 | 95,000,000 |
Common Stock, shares outstanding (in shares) | 61,858,199 | 63,532,622 |
STATEMENTS_OF_COMPREHENSIVE_IN
STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
REVENUES | ' | ' | ' |
Oil and Gas Sales | $369,187,120 | $296,637,857 | $159,439,508 |
Loss on Settled Derivatives | -12,198,633 | -391,420 | -13,407,878 |
(Losses) Gains on the Mark-to-Market of Derivative Instruments | -21,259,018 | 15,147,122 | 3,072,229 |
Other Revenue | 44,402 | 179,331 | 285,234 |
Total Revenues | 335,773,871 | 311,572,890 | 149,389,093 |
OPERATING EXPENSES | ' | ' | ' |
Production Expenses | 41,859,135 | 32,382,310 | 13,043,633 |
Production Taxes | 34,958,975 | 28,485,594 | 14,300,720 |
General and Administrative Expense | 16,575,440 | 22,645,315 | 13,624,892 |
Depletion, Depreciation, Amortization and Accretion | 124,383,374 | 98,923,240 | 41,169,618 |
Total Expenses | 217,776,924 | 182,436,459 | 82,138,863 |
INCOME FROM OPERATIONS | 117,996,947 | 129,136,431 | 67,250,230 |
OTHER INCOME (EXPENSE) | ' | ' | ' |
Other Income (Expense) | -453,241 | 24,874 | 782,544 |
Interest Expense, Net of Capitalization | -32,709,056 | -13,874,909 | -585,982 |
Total Other Income (Expense) | -33,162,297 | -13,850,035 | 196,562 |
INCOME BEFORE INCOME TAXES | 84,834,650 | 115,286,396 | 67,446,792 |
INCOME TAX PROVISION | 31,767,614 | 43,001,772 | 26,835,300 |
NET INCOME | 53,067,036 | 72,284,624 | 40,611,492 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | ' | ' | ' |
Unrealized Gains on Marketable Securities (Net of Tax of $109,000 for the year ended December 31, 2011) | 0 | 0 | 173,846 |
Reclassification of Derivative Instruments Included in Income (Net of Tax of $0, $39,000 and $448,000 for the years ended December 31, 2013, 2012 and 2011, respectively) | 0 | 62,309 | 709,776 |
Total Other Comprehensive Income | 0 | 62,309 | 883,622 |
COMPREHENSIVE INCOME | $53,067,036 | $72,346,933 | $41,495,114 |
Net Income Per Common Share - Basic (in dollars per share) | $0.85 | $1.16 | $0.66 |
Net Income Per Common Share - Diluted (in dollars per share) | $0.85 | $1.15 | $0.65 |
Weighted Average Shares Outstanding - Basic (in shares) | 62,364,957 | 62,485,836 | 61,789,289 |
Weighted Average Shares Outstanding - Diluted (in shares) | 62,747,298 | 62,869,079 | 62,195,340 |
STATEMENTS_OF_COMPREHENSIVE_IN1
STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2011 | |
Unrealized Losses on Marketable Securities | ' | ' |
Unrealized Gains (Losses) on Marketable Securities, Tax | ' | $109,000 |
Reclassification of Derivative Instruments Included in Income, Tax | $39,000 | $448,000 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net Income | $53,067,036 | $72,284,624 | $40,611,492 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ' | ' | ' |
Depletion, Depreciation, Amortization and Accretion | 124,383,374 | 98,923,240 | 41,169,618 |
Amortization of Debt Issuance Costs | 2,625,240 | 1,527,194 | 430,760 |
Amortization of Senior Unsecured Notes Premium | -960,177 | 0 | 0 |
Loss on the Sale of Other Property & Equipment | 473,915 | -23,611 | 0 |
Deferred Income Taxes | 31,763,000 | 42,984,000 | 26,833,000 |
Net (Gain) Loss on Sale of Available for Sale Securities | 0 | 0 | -215,092 |
Loss (Gain) on the Mark-to-Market of Derivative Instruments | 21,259,018 | -15,147,122 | -3,072,229 |
Amortization of Deferred Rent | -19,541 | -33,230 | -19,795 |
Share - Based Compensation Expense | 4,798,977 | 12,381,757 | 6,164,324 |
Changes in Working Capital and Other Items: | ' | ' | ' |
Trade Receivables | -16,597,312 | -18,800,839 | -29,385,183 |
Prepaid Expenses and Other | 28,350 | 4,792 | 17,781 |
Accounts Payable | 2,006,516 | -63,025 | 2,486,667 |
Accrued Interest | -245,082 | 2,081,618 | 98,798 |
Accrued Expenses | 191,093 | 2,407,216 | 29,385 |
Net Cash Provided By Operating Activities | 222,774,407 | 198,526,614 | 85,149,526 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Purchases of Oil and Natural Gas Properties and Development Capital Expenditures | -360,058,127 | -531,954,977 | -341,363,955 |
Advances to Operators | 0 | 0 | -4,304,824 |
Proceeds from Sale of Oil and Natural Gas Properties | 908,000 | 0 | 5,027,162 |
Proceeds from Sale of Available for Sale Securities | 0 | 0 | 58,606,328 |
Proceeds from Sale of Other Property and Equipment | 1,003,025 | 39,000 | 0 |
Purchase of Available for Sale Securities | 0 | 0 | -18,381,690 |
Purchases of Other Property and Equipment | -389,317 | -256,445 | -450,822 |
Net Cash Used For Investing Activities | -358,536,419 | -532,172,422 | -300,867,801 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Advances on Revolving Credit Facility | 133,000,000 | 475,600,000 | 79,900,000 |
Repayments on Revolving Credit Facility | -182,000,000 | -421,500,000 | -10,000,000 |
Issuance of Senior Unsecured Notes | 210,500,000 | 300,000,000 | 0 |
Debt Issuance Costs Paid | -7,072,493 | -11,854,023 | -449,837 |
Repurchases of Common Stock | -26,366,327 | -1,546,148 | -1,081,132 |
Proceeds from Exercise of Warrants | ' | ' | 1,500,000 |
Proceeds from Exercise of Stock Options | 0 | 54,390 | 18,130 |
Net Cash Provided by Financing Activities | 128,061,180 | 340,754,219 | 69,887,161 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -7,700,832 | 7,108,411 | -145,831,114 |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 13,387,998 | 6,279,587 | 152,110,701 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | 5,687,166 | 13,387,998 | 6,279,587 |
Supplemental Disclosure of Cash Flow Information | ' | ' | ' |
Cash Paid During the Period for Interest | 35,761,112 | 15,579,140 | 286,710 |
Cash Paid During the Period for Income Taxes | 13,614 | 8,772 | 0 |
Non-Cash Financing and Investing Activities: | ' | ' | ' |
Purchase of Oil and Gas Properties through Issuance of Common Stock | 162,884,221 | 91,776,113 | 106,024,212 |
Capitalized Asset Retirement Obligations | 1,852,580 | 539,727 | 401,241 |
Non-Cash Compensation Capitalized in Oil and Gas Properties | $2,143,415 | $6,378,273 | $13,114,137 |
STATEMENTS_OF_STOCKHOLDERS_EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2010 | $62,129 | $428,484,092 | ($945,931) | $7,759,192 | $435,359,482 |
Balance (in shares) at Dec. 31, 2010 | 62,129,424 | ' | ' | ' | ' |
Net Issuance of Common Stock | 1,201 | 4,770,710 | 0 | 0 | 4,771,911 |
Net Issuance of Common Stock (in shares) | 1,200,997 | ' | ' | ' | ' |
Share Based Compensation | 0 | 14,943,548 | 0 | 0 | 14,943,548 |
Net Change in Cash Flow Hedge Derivatives | 0 | 0 | 709,776 | 0 | 709,776 |
Net Change in Unrealized Gain(Loss) on Short-term Investments | 0 | 0 | 173,846 | 0 | 173,846 |
Net Income | 0 | 0 | 0 | 40,611,492 | 40,611,492 |
Balance at Dec. 31, 2011 | 63,330 | 448,198,350 | -62,309 | 48,370,684 | 496,570,055 |
Balance (in shares) at Dec. 31, 2011 | 63,330,421 | ' | ' | ' | ' |
Net Issuance of Common Stock | 202 | -1,491,960 | 0 | 0 | -1,491,758 |
Net Issuance of Common Stock (in shares) | 202,201 | ' | ' | ' | ' |
Share Based Compensation | 0 | 18,760,030 | 0 | 0 | 18,760,030 |
Net Change in Cash Flow Hedge Derivatives | 0 | 0 | 62,309 | 0 | 62,309 |
Net Income | 0 | 0 | 0 | 72,284,624 | 72,284,624 |
Balance at Dec. 31, 2012 | 63,532 | 465,466,420 | 0 | 120,655,308 | 586,185,260 |
Balance (in shares) at Dec. 31, 2012 | 63,532,622 | ' | ' | ' | ' |
Net Issuance of Common Stock | 362 | -252,993 | 0 | 0 | -252,631 |
Net Issuance of Common Stock (in shares) | 361,960 | ' | ' | ' | ' |
Share Based Compensation | 0 | 6,942,020 | 0 | 0 | 6,942,020 |
Repurchases of Common Stock | -2,036 | -26,111,288 | 0 | 0 | -26,113,324 |
Repurchases of Common Stock (in shares) | -2,036,383 | ' | ' | ' | ' |
Net Income | 0 | 0 | 0 | 53,067,036 | 53,067,036 |
Balance at Dec. 31, 2013 | $61,858 | $446,044,159 | $0 | $173,722,344 | $619,828,361 |
Balance (in shares) at Dec. 31, 2013 | 61,858,199 | ' | ' | ' | ' |
ORGANIZATION_AND_NATURE_OF_BUS
ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
ORGANIZATION AND NATURE OF BUSINESS [Abstract] | ' |
ORGANIZATION AND NATURE OF BUSINESS | ' |
NOTE 1 ORGANIZATION AND NATURE OF BUSINESS | |
Northern Oil and Gas, Inc. (the “Company,” “Northern,” “our” and words of similar import), a Minnesota corporation, is an independent energy company engaged in the acquisition, exploration, exploitation, development and production of crude oil and natural gas properties. The Company’s common stock trades on the NYSE MKT market under the symbol “NOG”. | |
Northern’s principal business is crude oil and natural gas exploration, development, and production with operations in North Dakota and Montana that primarily target the Bakken and Three Forks formations in the Williston Basin of the United States. The Company acquires leasehold interests that comprise of non-operated working interests in wells and in drilling projects within its area of operations. As of December 31, 2013, approximately 58% of Northern’s 187,044 total net acres were developed. As of December 31, 2012, approximately 50% of Northern’s 179,131 total net acres were developed. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||
NOTE 2 SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In connection with preparing the financial statements for the year ended December 31, 2013, the Company has evaluated subsequent events for potential recognition and disclosure through the date of this filing and determined that there were no subsequent events which required recognition or disclosure in the financial statements through the date of this filing. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements under GAAP 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 period. The most significant estimates relate to proved crude oil and natural gas reserve volumes, future development costs, estimates relating to certain crude oil and natural gas revenues and expenses, fair value of derivative instruments, and deferred income taxes. Actual results may differ from those estimates. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Northern considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of interest-bearing bank accounts and money market funds. The Company’s cash positions represent assets held in checking and money market accounts. These assets are generally available on a daily or weekly basis and are highly liquid in nature. Due to the balances being greater than $250,000, the Company does not have FDIC coverage on the entire amount of bank deposits. The Company believes this risk is minimal. In addition, the Company is subject to Security Investor Protection Corporation (“SIPC”) protection on a vast majority of its financial assets. | |||||||||||||
Accounts Receivable | |||||||||||||
Accounts receivable are carried on a gross basis, with no discounting. The Company regularly reviews all aged accounts receivable for collectability and establishes an allowance as necessary for individual customer balances. | |||||||||||||
At December 31, 2013 and 2012, the allowance for doubtful accounts was $1,050,000 and $0, respectively. The amount charged to operations for doubtful accounts was $1,050,000, $0, and $0 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Advances to Operators | |||||||||||||
The Company participates in the drilling of crude oil and natural gas wells with other working interest partners. Due to the capital intensive nature of crude oil and natural gas drilling activities, the working interest partner responsible for conducting the drilling operations may request advance payments from other working interest partners for their share of the costs. The Company expects such advances to be applied by working interest partners against joint interest billings for its share of drilling operations within 90 days from when the advance is paid. | |||||||||||||
Other Property and Equipment | |||||||||||||
Property and equipment that are not crude oil and natural gas properties are recorded at cost and depreciated using the straight-line method over their estimated useful lives of three to seven years. Expenditures for replacements, renewals, and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Long-lived assets, other than crude oil and natural gas properties, are evaluated for impairment to determine if current circumstances and market conditions indicate the carrying amount may not be recoverable. The Company has not recognized any impairment losses on non-crude oil and natural gas long-lived assets. Depreciation expense was $325,859, $409,888, and $298,137 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Full Cost Method | |||||||||||||
Northern follows the full cost method of accounting for crude oil and natural gas operations whereby all costs related to the exploration and development of crude oil and natural gas properties are initially capitalized into a single cost center (“full cost pool”). Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling directly related to acquisition, and exploration activities. Internal costs that are capitalized are directly attributable to acquisition, exploration and development activities and do not include costs related to the production, general corporate overhead or similar activities. Costs associated with production and general corporate activities are expensed in the period incurred. Capitalized costs are summarized as follows for the years ended December 31, 2013, 2012 and 2011, respectively: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Capitalized Certain Payroll and Other Internal Costs | $ | 3,295,427 | $ | 8,477,678 | $ | 16,952,995 | |||||||
Capitalized Interest Costs | 5,976,981 | 5,929,473 | 405,984 | ||||||||||
Total | $ | 9,272,408 | $ | 14,407,151 | $ | 17,358,979 | |||||||
As of December 31, 2013, the Company held leasehold interests in the Williston Basin on acreage located in North Dakota and Montana targeting the Bakken and Three Forks formations. | |||||||||||||
Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. In the years ended December 31, 2013, 2012 and 2011, the Company sold acreage and interests in producing properties for $0, $908,000, and $5.0 million, respectively. The proceeds for these sales were applied to reduce the capitalized costs of crude oil and natural gas properties. | |||||||||||||
Capitalized costs associated with impaired properties and capitalized costs related to properties having proved reserves, plus the estimated future development costs and asset retirement costs, are depleted and amortized on the unit-of-production method based on the estimated gross proved reserves as determined by independent petroleum engineers. The costs of unproved properties are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion and full cost ceiling calculations. For the years ended December 31, 2013, 2012 and 2011, the Company transferred into the full cost pool costs related to expired leases of $14.1 million, $7.1 million, and $9.0 million, respectively. | |||||||||||||
Capitalized costs of crude oil and natural gas properties (net of related deferred income taxes) may not exceed an amount equal to the present value, discounted at 10% per annum, of the estimated future net cash flows from proved crude oil and natural gas reserves plus the cost of unproved properties (adjusted for related income tax effects). Should capitalized costs exceed this ceiling, impairment is recognized. The present value of estimated future net cash flows is computed by applying the 12-month average price of crude oil and natural gas to estimated future production of proved crude oil and natural gas reserves as of period-end, less estimated future expenditures to be incurred in developing and producing the proved reserves and assuming continuation of existing economic conditions. Such present value of proved reserves’ future net cash flows excludes future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet. Should this comparison indicate an excess carrying value, the excess is charged to earnings as an impairment expense. During the three year period ended December 31, 2013, the Company has not realized any impairment of its properties. | |||||||||||||
Asset Retirement Obligations | |||||||||||||
Asset retirement obligation is included in other noncurrent liabilities and relates to future costs associated with the plugging and abandonment of crude oil and natural gas wells, removal of equipment and facilities from leased acreage and returning the land to its original condition. Estimates are based on estimated remaining lives of those wells based on reserve estimates, external estimates to plug and abandon the wells in the future, inflation, credit adjusted discount rates and federal and state regulatory requirements. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. | |||||||||||||
Debt Issuance Costs | |||||||||||||
Deferred financing costs include origination, legal and other fees to issue debt in connection with the Company’s credit facility and senior unsecured notes. These debt issuance costs are being amortized over the term of the related financing using the straight-line method, which approximates the effective interest method (see Note 4). | |||||||||||||
The amortization of debt issuance costs for the years ended December 31, 2013, 2012 and 2011 was $2,625,240, $1,527,194 and $430,760, respectively. | |||||||||||||
Bond Premium on Senior Notes | |||||||||||||
At December 31, 2013, the Company had recorded a bond premium of $10.5 million in connection with the “8% Senior Notes Due 2020” (see Note 4). This bond premium is being amortized over the term of the related financing using the straight-line method, which approximates the effective interest method. | |||||||||||||
The amortization of the bond premium for the years ended December 31, 2013, 2012 and 2011 was $960,177, $0 and $0, respectively. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes crude oil and natural gas revenues from its interests in producing wells when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable. The Company uses the sales method of accounting for natural gas balancing of natural gas production and would recognize a liability if the existing proven reserves were not adequate to cover the current imbalance situation. As of December 31, 2013, 2012 and 2011, the Company’s natural gas production was in balance, meaning its cumulative portion of natural gas production taken and sold from wells in which it has an interest equaled its entitled interest in natural gas production from those wells. | |||||||||||||
Concentrations of Market and Credit Risk | |||||||||||||
The future results of the Company’s crude oil and natural gas operations will be affected by the market prices of crude oil and natural gas. The availability of a ready market for crude oil and natural gas products in the future will depend on numerous factors beyond the control of the Company, including weather, imports, marketing of competitive fuels, proximity and capacity of crude oil and natural gas pipelines and other transportation facilities, any oversupply or undersupply of crude oil, natural gas and liquid products, the regulatory environment, the economic environment, and other regional and political events, none of which can be predicted with certainty. | |||||||||||||
The Company operates in the exploration, development and production sector of the crude oil and natural gas industry. The Company’s receivables include amounts due from purchasers of its crude oil and natural gas production. While certain of these customers are affected by periodic downturns in the economy in general or in their specific segment of the crude oil or natural gas industry, the Company believes that its level of credit-related losses due to such economic fluctuations has been and will continue to be immaterial to the Company’s results of operations over the long-term. Trade receivables are generally not collateralized. | |||||||||||||
The Company manages and controls market and counterparty credit risk. In the normal course of business, collateral is not required for financial instruments with credit risk. Financial instruments which potentially subject the Company to credit risk consist principally of temporary cash balances and derivative financial instruments. The Company maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits. The Company has not experienced any significant losses from such investments. The Company attempts to limit the amount of credit exposure to any one financial institution or company. The Company believes the credit quality of its customers is generally high. In the normal course of business, letters of credit or parent guarantees may be required for counterparties which management perceives to have a higher credit risk. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company records expense associated with the fair value of stock-based compensation. For fully vested stock and restricted stock grants the Company calculates the stock based compensation expense based upon estimated fair value on the date of grant. For stock options, the Company uses the Black-Scholes option valuation model to calculate stock based compensation at the date of grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. | |||||||||||||
Stock Issuance | |||||||||||||
The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable. | |||||||||||||
Income Taxes | |||||||||||||
Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all of the benefits of deferred tax assets will not be realized. No valuation allowance has been recorded as of December 31, 2013 and 2012. | |||||||||||||
Net Income Per Common Share | |||||||||||||
Basic earnings per share (“EPS”) are computed by dividing net income (the numerator) by the weighted average number of common shares outstanding for the period (the denominator). Diluted EPS is computed by dividing net income by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options and warrants and restricted stock. The number of potential common shares outstanding relating to stock options and warrants and restricted stock is computed using the treasury stock method. | |||||||||||||
The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average common shares outstanding – basic | 62,364,957 | 62,485,836 | 61,789,289 | ||||||||||
Plus: Potentially dilutive common shares | |||||||||||||
Stock options, warrants, and restricted stock | 382,341 | 383,243 | 406,051 | ||||||||||
Weighted average common shares outstanding – diluted | 62,747,298 | 62,869,079 | 62,195,340 | ||||||||||
Restricted stock excluded from EPS due to the anti-dilutive effect | 7,330 | 18,348 | 29,876 | ||||||||||
As of December 31, 2013, 2012 and 2011, potentially dilutive shares from stock options were 241,872, 251,963, and 262,463, respectively. These options are all exercisable at December 31, 2013, 2012 and 2011, at an exercise price of $5.18. | |||||||||||||
The Company also has potentially dilutive shares from restricted stock grants outstanding of 592,565, 777,437, and 1,216,992, at December 31, 2013, 2012, and 2011, respectively. | |||||||||||||
In January 2011, 300,000 warrants that were issued in conjunction with the February 2009 revolving credit facility were exercised at a price of $5.00 per share. | |||||||||||||
Derivative Instruments and Price Risk Management | |||||||||||||
The Company uses derivative instruments to manage market risks resulting from fluctuations in the prices of crude oil. The Company enters into derivative contracts, including price swaps, caps and floors, which require payments to (or receipts from) counterparties based on the differential between a fixed price and a variable price for a fixed quantity of crude oil without the exchange of underlying volumes. The notional amounts of these financial instruments are based on expected production from existing wells. The Company has, and may continue to use exchange traded futures contracts and option contracts to hedge the delivery price of crude oil at a future date. | |||||||||||||
On November 1, 2009, due to the volatility of price differentials in the Williston Basin, the Company de-designated all derivatives that were previously classified as cash flow hedges and in addition, the Company has elected not to designate any subsequent derivative contracts as accounting hedges. As such, all derivative positions are carried at their fair value on the balance sheet and are marked-to-market at the end of each period. Any realized gains and losses are recorded to gain (loss) on settled derivatives and mark-to-market gains or losses are recorded to (loss) gain on the mark-to-market of derivative instruments on the statements of income and comprehensive income rather than as a component of accumulated other comprehensive income (loss) or other income (expense). See Note 14 for a description of the derivative contracts which the Company has entered into. | |||||||||||||
Prior to November 1, 2009, the Company, at the inception of a derivative contract, designated the derivative as a cash flow hedge. For all derivatives designated as cash flow hedges, the Company formally documented the relationship between the derivative contract and the hedged items, as well as the risk management objective for entering into the derivative contract. To be designated as a cash flow hedge transaction, the relationship between the derivative and the hedged items must be highly effective in achieving the offset of changes in cash flows attributable to the risk both at the inception of the derivative and on an ongoing basis. The Company historically measured hedge effectiveness on a quarterly basis and hedge accounting would be discontinued prospectively if it determined that the derivative was no longer effective in offsetting changes in the cash flows of the hedged item. Gains and losses deferred in accumulated other comprehensive income (loss) related to cash flow hedge derivatives that become ineffective remain unchanged until the related production was delivered. If the Company determined that it was probable that a hedged forecasted transaction would not occur, deferred gains or losses on the derivative were recognized in earnings immediately. | |||||||||||||
Derivatives, historically, were recorded on the balance sheet at fair value and changes in the fair value of derivatives were recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative was designated as part of a hedge transaction and, if it was, depending on the type of hedge transaction. The Company’s derivatives historically consisted primarily of cash flow hedge transactions in which the Company was hedging the variability of cash flows related to a forecasted transaction. Period to period changes in the fair value of derivative instruments designated as cash flow hedges were reported in accumulated other comprehensive income (loss) and reclassified to earnings in the periods in which the hedged item impacts earnings. The ineffective portion of the cash flow hedges were reflected in current period earnings as gain or loss from derivatives. Gains and losses on derivative instruments that did not qualify for hedge accounting were included in income or loss from derivatives in the period in which they occur. The resulting cash flows from derivatives were reported as cash flows from operating activities. | |||||||||||||
Impairment | |||||||||||||
Long-lived assets to be held and used are required to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Crude oil and natural gas properties accounted for using the full cost method of accounting (which the Company uses) are excluded from this requirement but continue to be subject to the full cost method’s impairment rules. There was no impairment recorded at December 31, 2013, 2012, and 2011. | |||||||||||||
New Accounting Pronouncements | |||||||||||||
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. | |||||||||||||
Recently Adopted | |||||||||||||
Balance Sheet Offsetting — In December 2011, the FASB issued Balance Sheet (Topic 210) — Disclosures about Offsetting Assets and Liabilities (ASU No. 2011-11), which requires disclosures regarding netting arrangements in agreements underlying derivatives, certain financial instruments and related collateral amounts, and the extent to which an entity’s financial statement presentation policies related to netting arrangements impact amounts recorded to the financial statements. These disclosure requirements do not affect the presentation of amounts in the balance sheets, and are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual reporting periods. The implementation of this disclosure guidance did not have a material impact on the Company’s financial statements. |
CRUDE_OIL_AND_NATURAL_GAS_PROP
CRUDE OIL AND NATURAL GAS PROPERTIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
CRUDE OIL AND NATURAL GAS PROPERTIES [Abstract] | ' | ||||||||||||||||
CRUDE OIL AND NATURAL GAS PROPERTIES | ' | ||||||||||||||||
NOTE 3 CRUDE OIL AND NATURAL GAS PROPERTIES | |||||||||||||||||
The value of the Company’s crude oil and natural gas properties consists of all acreage acquisition costs (including cash expenditures and the value of stock consideration), drilling costs and other associated capitalized costs. Acquisitions are accounted for as purchases and, accordingly, the results of operations are included in the accompanying statements of income and comprehensive income from the closing date of the acquisition. Purchase prices are allocated to acquired assets based on their estimated fair value at the time of the acquisition. In the past, acquisitions have been funded with internal cash flow, bank borrowings and the issuance of equity securities. Purchases of properties and development capital expenditures that were in accounts payable and not yet paid in cash at December 31, 2013 and 2012 were approximately $163 million and $92 million, respectively. | |||||||||||||||||
2013 Acquisitions | |||||||||||||||||
During 2013, the Company acquired approximately 20,900 net acres, for an average cost of approximately $1,279 per net acre, in its key prospect areas in the form of effective leases. During the same period, the Company separately acquired working interests in 70 gross (7.0 net) wells in undrilled locations in which it does not hold the underlying leasehold interests, for a total cost of approximately $9.0 million. | |||||||||||||||||
2012 Acquisitions | |||||||||||||||||
During 2012, the Company acquired approximately 17,590 net acres, for an average cost of approximately $1,788 per net acre, in its key prospect areas in the form of effective leases, and earned an additional 6,450 net acres through farm-in arrangements. | |||||||||||||||||
2011 Acquisitions | |||||||||||||||||
During 2011, the Company acquired approximately 43,239 net acres, for an average cost of approximately $1,832 per net acre, in its key prospect areas in the form of effective leases. | |||||||||||||||||
Divestitures | |||||||||||||||||
In April 2011, the Company sold its interest in the Anvil project for $5.0 million. As of the date of sale, the Company’s cost basis in the Anvil project was $1.8 million. The Company sold its interest in the project along with Slawson Exploration Company, Inc. (“Slawson”), who also desired to sell its entire interest in the project. Slawson had drilled and completed one well in the project area prior to the divestiture – the Mayhem #1-19H well – and the Company retained its interest in that wellbore in connection with the divestiture. The proceeds from the sale were applied to reduce the capitalized costs of crude oil and natural gas properties. In the fourth quarter of 2012, the Company sold its interest in certain North Dakota and Montana properties covering 835 net acres for $0.9 million in consideration. | |||||||||||||||||
From time-to-time the Company may also trade leasehold interests with operators to balance working interests in spacing units to facilitate and encourage a more expedited development of the Company’s acreage. | |||||||||||||||||
Unproved Properties | |||||||||||||||||
Unproved properties not being amortized comprise approximately 60,600 net acres and 63,000 net acres of undeveloped leasehold interests at December 31, 2013 and 2012, respectively. The Company believes that the majority of its unproved costs will become subject to depletion within the next five years by proving up reserves relating to the acreage through exploration and development activities, by impairing the acreage that will expire before the Company can explore or develop it further or by determining that further exploration and development activity will not occur. The timing by which all other properties will become subject to depletion will be dependent upon the timing of future drilling activities and delineation of its reserves. | |||||||||||||||||
Excluded costs for unproved properties are accumulated by year. Costs are reflected in the full cost pool as the drilling costs are incurred or as costs are evaluated and deemed impaired. The Company anticipates these excluded costs will be included in the depletion computation over the next five years. The Company is unable to predict the future impact on depletion rates. The following is a summary of capitalized costs excluded from depletion at December 31, 2013 by year incurred. | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | Prior Years | ||||||||||||||
Property Acquisition | $ | 19,608,861 | $ | 18,629,120 | $ | 33,133,410 | $ | 30,971,709 | |||||||||
Development | - | 193,017 | - | - | |||||||||||||
Total | $ | 19,608,861 | $ | 18,822,137 | $ | 33,133,410 | $ | 30,971,709 | |||||||||
All properties that are not classified as proved properties are considered unproved properties and, thus, the costs associated with such properties are not subject to depletion. Once a property is classified as proved, all associated acreage and drilling costs are subject to depletion. | |||||||||||||||||
The Company historically has acquired its properties by purchasing individual or small groups of leases directly from mineral owners or from landmen or lease brokers, which leases historically have not been subject to specified drilling projects, and by purchasing lease packages in identified project areas controlled by specific operators. The Company generally participates in drilling activities on a heads up basis by electing whether to participate in each well on a well-by-well basis at the time wells are proposed for drilling. |
REVOLVING_CREDIT_FACILITY_AND_
REVOLVING CREDIT FACILITY AND LONG TERM DEBT | 12 Months Ended | ||
Dec. 31, 2013 | |||
REVOLVING CREDIT FACILITY AND LONG TERM DEBT [Abstract] | ' | ||
REVOLVING CREDIT FACILITY AND LONG TERM DEBT | ' | ||
NOTE 4 REVOLVING CREDIT FACILITY AND LONG TERM DEBT | |||
Revolving Credit Facility | |||
In February 2012, the Company entered into an amended and restated credit agreement providing for a revolving credit facility (the “Revolving Credit Facility”), which replaced its previous revolving credit facility with a syndicated facility. The Revolving Credit Facility, which is secured by substantially all of the Company’s assets, provides for a commitment equal to the lesser of the facility amount or the borrowing base. At December 31, 2013, the facility amount was $750 million, the borrowing base was $450 million and there was a $75 million outstanding balance, leaving $375 million of borrowing capacity available under the facility. Under the terms of the Revolving Credit Facility, the Company may issue an unlimited amount of permitted additional indebtedness, as defined, provided that the borrowing base will be reduced by 25% of the stated amount of any such permitted additional indebtedness. The $500 million in Notes described below is “permitted additional indebtedness” as defined in the Revolving Credit Facility. | |||
The Revolving Credit Facility matures on September 30, 2018 and provides for a borrowing base subject to redetermination semi-annually each April and October and for event-driven unscheduled redeterminations. Borrowings under the Revolving Credit Facility can either be at the Alternate Base Rate (as defined) plus a spread ranging from 0.5% to 1.5% or LIBOR borrowings at the Adjusted LIBOR Rate (as defined) plus a spread ranging from 1.5% to 2.5%. The applicable spread at any time is dependent upon the amount of borrowings relative to the borrowing base at such time. The Company may elect, from time to time, to convert all or any part of its LIBOR loans to base rate loans or to convert all or any of the base rate loans to LIBOR loans. A commitment fee is paid on the undrawn balance based on an annual rate of either 0.375% or 0.50%. At December 31, 2013, the commitment fee was 0.375% and the interest rate margin was 1.5% on LIBOR loans and 0.5% on base rate loans. | |||
The Revolving Credit Facility contains negative covenants that limit the Company’s ability, among other things, to pay any cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of its business or operations, merge, consolidate, or make investments. In addition, the Company is required to maintain a current ratio (as defined in the credit agreement) of no less than 1.0 to 1.0. | |||
All of the Company’s obligations under the Revolving Credit Facility are secured by a first priority security interest in any and all assets of the Company. | |||
8.000% Senior Notes Due 2020 | |||
On May 18, 2012, the Company issued at par value $300 million aggregate principal amount of 8.000% senior unsecured notes due June 1, 2020 (the “Original Notes”). On May 13, 2013, the Company issued at a price of 105.25% an additional $200 million aggregate principal amount of 8.000% senior unsecured notes due June 1, 2020 (the “Follow-on Notes” and, together with the Original Notes, the “Notes”). Interest is payable on the Notes semi-annually in arrears on each of June 1 and December 1. The Company currently does not have any subsidiaries and, as a result, the Notes are not currently guaranteed. Any subsidiaries the Company forms in the future may be required to unconditionally guarantee, jointly and severally, payment obligation under the Notes on a senior unsecured basis. The issuance of the Original Notes resulted in net proceeds to the Company of approximately $291.2 million and the issuance of the Follow-on Notes resulted in net proceeds to the Company of approximately $200.1 million, which are in use to fund the Company’s exploration, development and acquisition program and for general corporate purposes (including repayment of borrowings that were outstanding under the Revolving Credit Facility at the time the Notes were issued). | |||
At any time prior to June 1, 2015, the Company may redeem up to 35% of the Notes at a redemption price of 108% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings, so long as the redemption occurs within 180 days of completing such equity offering and at least 65% of the aggregate principal amount of the Notes remains outstanding after such redemption. Prior to June 1, 2016, the Company may redeem some or all of the Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On and after June 1, 2016, the Company may redeem some or all of the Notes at redemption prices (expressed as percentages of principal amount) equal to 104% for the twelve-month period beginning on June 1, 2016, 102% for the twelve-month period beginning June 1, 2017 and 100% beginning on June 1, 2018, plus accrued and unpaid interest to the redemption date. | |||
The Notes are governed by an Indenture (the “Indenture”), dated as of May 18, 2012, by and among the Company and Wilmington Trust, National Association, as trustee (the “Trustee”). | |||
The Indenture restricts the Company’s ability to: (i) incur additional debt or enter into sale and leaseback transactions; (ii) pay distributions on, redeem or, repurchase equity interests; (iii) make certain investments; (iv) incur liens; (v) enter into transactions with affiliates; (vi) merge or consolidate with another company; and (vii) transfer and sell assets. These covenants are subject to a number of important exceptions and qualifications. If at any time when the Notes are rated investment grade by both Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services and no Default (as defined in the Indenture) has occurred and is continuing, many of such covenants will terminate and the Company and its subsidiaries (if any) will cease to be subject to such covenants. | |||
The Indenture contains customary events of default, including: | |||
· | default in any payment of interest on any Note when due, continued for 30 days; | ||
· | default in the payment of principal of or premium, if any, on any Note when due; | ||
· | failure by the Company to comply with its other obligations under the Indenture, in certain cases subject to notice and grace periods; | ||
· | payment defaults and accelerations with respect to other indebtedness of the Company and certain of its subsidiaries, if any, in the aggregate principal amount of $25 million or more; | ||
· | certain events of bankruptcy, insolvency or reorganization of the Company or a significant subsidiary or group of restricted subsidiaries that, taken together, would constitute a significant subsidiary; | ||
· | failure by the Company or any significant subsidiary or group of restricted subsidiaries that, taken together, would constitute a significant subsidiary to pay certain final judgments aggregating in excess of $25 million within 60 days; and | ||
· | any guarantee of the Notes by a guarantor ceases to be in full force and effect, is declared null and void in a judicial proceeding or is denied or disaffirmed by its maker. |
COMMON_AND_PREFERRED_STOCK
COMMON AND PREFERRED STOCK | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
COMMON AND PREFERRED STOCK [Abstract] | ' | ||||||||||||
COMMON AND PREFERRED STOCK | ' | ||||||||||||
NOTE 5 COMMON AND PREFERRED STOCK | |||||||||||||
The Company’s Articles of Incorporation authorize the issuance of up to 100,000,000 shares. The shares are classified in two classes, consisting of 95,000,000 shares of common stock, par value $.001 per share, and 5,000,000 shares of preferred stock, par value $.001 per share. The board of directors is authorized to establish one or more series of preferred stock, setting forth the designation of each such series, and fixing the relative rights and preferences of each such series. The Company has neither designated nor issued any shares of preferred stock. | |||||||||||||
Common Stock | |||||||||||||
The following is a schedule of changes in the number of shares of common stock since the beginning of 2011: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning Balance | 63,532,622 | 63,330,421 | 62,129,424 | ||||||||||
Stock Based Compensation | 57,371 | 53,140 | 161,628 | ||||||||||
Stock Options Exercised | 10,091 | 10,500 | 3,500 | ||||||||||
Restricted Stock Grants (Note 7) | 353,596 | 837,239 | 786,263 | ||||||||||
Warrants Exercised | - | - | 300,000 | ||||||||||
Stock Repurchase | (2,036,383 | ) | - | - | |||||||||
Other Surrenders | (59,098 | ) | (698,678 | ) | (50,394 | ) | |||||||
Ending Balance | 61,858,199 | 63,532,622 | 63,330,421 | ||||||||||
2013 Activity | |||||||||||||
In 2013, the Company’s Chief Executive Officer received shares of common stock as compensation in lieu of any cash base salary. In 2013, the Company issued 57,371 shares valued at approximately $825,000 to the Chief Executive Officer as compensation in lieu of any cash base salary. | |||||||||||||
In 2013, 16,585 shares of common stock were surrendered by certain employees of the Company to cover tax obligations in connection with their restricted stock awards. The total value of these shares was approximately $253,000, which was based on the market price on the date the shares were surrendered. | |||||||||||||
In 2013, 39,049 shares of restricted common stock were surrendered by employees who terminated employment with the Company. | |||||||||||||
In 2013, a director of the Company exercised an aggregate of 10,091 stock options, which were granted in 2007. Of those stock options, 3,464 shares were surrendered to cover the aggregate exercise price of approximately $52,000, based on the market price on the date the shares were surrendered. | |||||||||||||
2012 Activity | |||||||||||||
In 2012, a director of the Company exercised an aggregate of 10,500 stock options granted in 2007. | |||||||||||||
In 2012, the Company issued 53,140 shares of common stock in aggregate to executives and employees of the Company as compensation for their services. The shares were fully vested on the date of the grant. The fair value of the stock issued was approximately $1.3 million. The value of the stock was between $19.34 and $24.89 per share, the market value of the shares of common stock on the date the stock was issued. The Company expensed approximately $0.5 million in share-based compensation related to these fully vested shares in the year ended December 31, 2012. The remainder of fair value was capitalized into the full cost pool. | |||||||||||||
In 2012, 70,128 shares of common stock were surrendered by certain employees of the Company to cover tax obligations in connection with their restricted stock awards. The total value of these shares was approximately $1.5 million, which was based on the market price on the date the shares were surrendered. | |||||||||||||
In 2012, 628,550 shares of common stock were surrendered by certain employees who terminated employment with the Company in connection with their restricted stock awards. | |||||||||||||
2011 Activity | |||||||||||||
In January 2011, CIT exercised the 300,000 warrants that were issued as part of a prior revolving credit facility. Total proceeds to the Company from the exercise of these warrants were $1.5 million. | |||||||||||||
In 2011, the Company issued 161,628 shares of common stock in aggregate to executives, employees and directors of the Company as compensation for their services. The shares were fully vested on the date of the grant. The fair value of the stock issued was approximately $4.3 million. The value of the stock was between $17.81 and $27.98 per share, the market value of the shares of common stock on the date the stock was issued. The Company expensed approximately $1.4 million in share-based compensation related to these fully vested shares in the year ended December 31, 2011. The remainder of fair value was capitalized into the full cost pool. | |||||||||||||
In October 2011, a director of the Company exercised 3,500 stock options granted to him in 2007. | |||||||||||||
In 2011, 50,394 shares of common stock were surrendered by certain employees of the Company to cover tax obligations in connection with their restricted stock awards. The total value of these shares was approximately $1.1 million, which was based on the market price on the date the shares were surrendered. | |||||||||||||
Stock Repurchase Program | |||||||||||||
In May 2011, the Company’s board of directors approved a stock repurchase program to acquire up to $150 million of the Company’s outstanding common stock. The stock repurchase program allows the Company to repurchase its shares from time to time in the open market, block transactions and in negotiated transactions. | |||||||||||||
During the third quarter of 2013, the Company repurchased 2,036,383 shares of its common stock under the stock repurchase program. These shares are now included in the Company’s pool of authorized but unissued shares. This stock had a cost of approximately $26.1 million. The Company’s accounting policy upon the repurchase of shares is to deduct its par value from Common Stock and to reflect any excess of cost over par value as a deduction from Additional Paid-in Capital. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
RELATED PARTY TRANSACTIONS [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
NOTE 6 RELATED PARTY TRANSACTIONS | |
Carter Stewart, a former director of the Company (until August 2011), owned a 25% interest in Gallatin Resources, LLC (“Gallatin”). Legal counsel for Gallatin informed the Company that Mr. Stewart did not have the power to control Gallatin because each member of Gallatin has the right to vote on matters in proportion to their respective membership interest in the company and company matters are determined by a vote of the holders of a majority of membership interests. Further, Mr. Stewart was neither an officer nor a director of Gallatin. As such, Mr. Stewart did not have the ability to individually control company decisions for Gallatin. In 2011, the Company paid Gallatin a total of approximately $6,500 related to previously acquired leasehold interests. In 2012, the Company paid Gallatin a total of approximately $500 related to previously acquired leasehold interests. There were no such payments for the year ended December 31, 2013. | |
The Company is a non-operating participant in a number of wells in North Dakota that are operated by Emerald Oil, Inc. (“Emerald”), by virtue of leased acreage held by the Company in drilling units operated by Emerald. As of December 31, 2013, such wells included 14 gross (3.1 net) producing wells, and an additional 3 gross (0.7 net) wells that were drilling or awaiting completion. Based on authorizations for expenditure (or AFEs) provided by Emerald with respect to each of the wells, the total drilling and completion costs for these 17 gross wells was estimated at approximately $176 million, approximately $40 million of which is attributable to Northern Oil’s working interest in the wells. James Russell (J.R.) Reger is a director, executive officer and less than 5% shareholder of Emerald, which is a publicly-traded company. J.R. Reger is also the brother of Northern Oil’s Chairman and Chief Executive Officer, Michael Reger. At December 31, 2013, the Company’s accounts receivable and accounts payable balances with Emerald were $4.6 million and $23.2 million, respectively. There were no outstanding accounts receivable or accounts payable balances with Emerald at December 31, 2012. The Company recorded total revenues of $7.8 million, $0 million, and $0 million from Emerald for the years ended December 31, 2013, 2012, and 2011, respectively. | |
All transactions involving related parties were approved or ratified by the Company’s board of directors or Audit Committee. |
STOCK_OPTIONSSTOCKBASED_COMPEN
STOCK OPTIONS/STOCK-BASED COMPENSATION AND WARRANTS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
STOCK OPTIONS/STOCK-BASED COMPENSATION AND WARRANTS [Abstract] | ' | ||||||||||||||||||||||||
STOCK OPTIONS/STOCK-BASED COMPENSATION AND WARRANTS | ' | ||||||||||||||||||||||||
NOTE 7 STOCK OPTIONS/STOCK-BASED COMPENSATION AND WARRANTS | |||||||||||||||||||||||||
On April 5, 2013, the board of directors approved the Company’s 2013 Incentive Plan (the “2013 Plan”), which was subsequently approved at the 2013 annual meeting of shareholders. 1,500,000 shares were authorized for grant under the 2013 Plan, plus the number of shares remaining available for future grants under the Company’s predecessor 2009 Equity Incentive Plan on the date the shareholders approved the 2013 Plan. The 2013 Plan is intended to provide a means whereby the Company may be able, by granting equity and other types of awards, to attract, retain and motivate capable and loyal employees, non-employee directors, consultants and advisors of the Company, for the benefit of the Company and its shareholders. | |||||||||||||||||||||||||
Restricted Stock Awards | |||||||||||||||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company issued 353,596, 837,239 and 786,263, respectively, restricted shares of common stock as compensation to officers, employees, and directors of the Company. Unvested restricted shares vest over various terms with all restricted shares vesting no later than February 2017. As of December 31, 2013, there was approximately $5.4 million of total unrecognized compensation expense related to unvested restricted stock. This compensation expense will be recognized over the remaining vesting period of the grants. The Company has assumed a zero percent forfeiture rate for restricted stock due to the small number of officers, employees and directors that have received restricted stock awards. | |||||||||||||||||||||||||
The following table reflects the outstanding restricted stock awards and activity related thereto for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | ||||||||||||||||||||
of | Average | Of | Average | Of | Average | ||||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||||||||||||
Restricted Stock Awards: | |||||||||||||||||||||||||
Restricted Shares Outstanding at the Beginning of the Year | 777,437 | $ | 18.93 | 1,216,992 | $ | 19.87 | 1,135,622 | $ | 13.28 | ||||||||||||||||
Shares Granted | 353,596 | 15.33 | 837,239 | 19.91 | 786,263 | 27.11 | |||||||||||||||||||
Shares Forfeited | (39,049 | ) | 16.78 | (628,550 | ) | 19.08 | - | - | |||||||||||||||||
Lapse of Restrictions | (499,419 | ) | 19.03 | (648,244 | ) | 21.83 | (704,893 | ) | 17.32 | ||||||||||||||||
Restricted Shares Outstanding at the End of the Year | 592,565 | $ | 16.84 | 777,437 | $ | 18.93 | 1,216,992 | $ | 19.87 | ||||||||||||||||
Stock Option Awards | |||||||||||||||||||||||||
On November 1, 2007, the board of directors granted options to purchase 560,000 shares of the Company’s common stock under the Company’s 2006 Incentive Stock Option Plan. The Company granted options to purchase 500,000 shares of the Company’s common stock to members of the board and options to purchase 60,000 shares of the Company’s common stock to one employee pursuant to an employment agreement. These options were granted at a price of $5.18 per share and the optionees were fully vested on the grant date. As of December 31, 2013, options to purchase a total of 241,872 shares of the Company’s common stock remain outstanding but unexercised. The board of directors determined that no future grants will be made pursuant to the 2006 Incentive Stock Option Plan. All future stock compensation will be issued under the 2013 Plan. | |||||||||||||||||||||||||
The Company used the Black-Scholes option valuation model to calculate stock-based compensation at the date of grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. The Company used the simplified method to determine the expected term of the options due to the lack of sufficient historical data. Changes in these assumptions can materially affect the fair value estimate. The total fair value of the options is recognized as compensation over the vesting period. There were no stock options granted by the Company in 2013, 2012 and 2011. All exercises of options during 2013, 2012 and 2011 related to 2007 grants. | |||||||||||||||||||||||||
Changes in stock options for the years ended December 31, 2013, 2012, and 2011 were as follows: | |||||||||||||||||||||||||
Number | Weighted Average Exercise Price | Remaining Contractual Term | Intrinsic Value | ||||||||||||||||||||||
of | (in Years) | ||||||||||||||||||||||||
Shares | |||||||||||||||||||||||||
2013:00:00 | |||||||||||||||||||||||||
Beginning Balance | 251,963 | $ | - | - | $ | - | |||||||||||||||||||
Granted | - | - | - | - | |||||||||||||||||||||
Exercised | (10,091 | ) | 5.18 | - | - | ||||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at December 31 | 241,872 | 5.18 | 3.8 | 2,392,000 | |||||||||||||||||||||
Exercisable | 241,872 | 5.18 | 3.8 | 2,392,000 | |||||||||||||||||||||
Ending Vested | 241,872 | 5.18 | 3.8 | 2,392,000 | |||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | |||||||||||||||||||||||
2012:00:00 | |||||||||||||||||||||||||
Beginning Balance | 262,463 | $ | - | - | $ | - | |||||||||||||||||||
Granted | - | - | - | - | |||||||||||||||||||||
Exercised | (10,500 | ) | 5.18 | - | - | ||||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at December 31 | 251,963 | 5.18 | 4.8 | 2,933,000 | |||||||||||||||||||||
Exercisable | 251,963 | 5.18 | 4.8 | 2,933,000 | |||||||||||||||||||||
Ending Vested | 251,963 | 5.18 | 4.8 | 2,933,000 | |||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | |||||||||||||||||||||||
2011:00:00 | |||||||||||||||||||||||||
Beginning Balance | 265,963 | $ | - | - | $ | - | |||||||||||||||||||
Granted | - | - | - | - | |||||||||||||||||||||
Exercised | (3,500 | ) | 5.18 | - | - | ||||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at December 31 | 262,463 | 5.18 | 5.8 | 4,934,000 | |||||||||||||||||||||
Exercisable | 262,463 | 5.18 | 5.8 | 4,934,000 | |||||||||||||||||||||
Ending Vested | 262,463 | 5.18 | 5.8 | 4,934,000 | |||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | |||||||||||||||||||||||
Currently Outstanding Options | |||||||||||||||||||||||||
· | No options were forfeited during the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||
· | No options expired during the years ended December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||
· | Options covering 241,872 shares were exercisable and outstanding at December 31, 2013. | ||||||||||||||||||||||||
· | The Company recorded no compensation expense related to these options for the years ended December 31, 2013, 2012, and 2011. All of the compensation expense was reported in 2008 when the options vested. There is no further compensation expense that will be recognized in future periods relative to any options that had been granted as of December 31, 2013, because the Company recognized the entire fair value of such compensation upon vesting of the options. | ||||||||||||||||||||||||
· | There were no unvested options at December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||
Warrants Granted February 2009 | |||||||||||||||||||||||||
On February 27, 2009, in conjunction with the closing of a prior revolving credit facility, the Company issued warrants to purchase a total of 300,000 shares of common stock exercisable at $5.00 per share. The total fair value of the warrants was calculated using the Black-Scholes valuation model based on factors present at the time the warrants were issued. The fair value of the warrants is included in debt issuance costs and is being amortized over the term of the facility. The warrants were exercised in January 2011. |
COMMITMENTS_CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
COMMITMENTS & CONTINGENCIES [Abstract] | ' |
COMMITMENTS & CONTINGENCIES | ' |
NOTE 8 COMMITMENTS & CONTINGENCIES | |
Litigation | |
The Company is engaged in proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including but not limited to, court rulings, negotiations between affected parties and governmental intervention. Based upon the information available to the Company and discussions with legal counsel, it is the Company’s opinion that the outcome of the various legal actions and claims that are incidental to its business will not have a material impact on the financial position, results of operations or cash flows. Such matters, however, are subject to many uncertainties, and the outcome of any matter is not predictable with assurance. | |
The Company is party to a quiet title action in North Dakota that relates to its interest in certain crude oil and natural gas leases. In the event the action results in a final judgment that is adverse to the Company, the Company would be required to reverse approximately $1.5 million in revenue (net of accrued taxes) that has been accrued since the second quarter of 2008 based on the Company’s purported interest in the crude oil and natural gas leases at issue, $0.3 million, $0.2 million and $0.2 million of which relates to the years ended December 31, 2013, 2012 and 2011, respectively. The Company fully maintains the validity of its interest in the crude oil and natural gas leases, and is vigorously defending such interest. |
ASSET_RETIREMENT_OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
ASSET RETIREMENT OBLIGATION [Abstract] | ' | ||||||||
ASSET RETIREMENT OBLIGATION | ' | ||||||||
NOTE 9 ASSET RETIREMENT OBLIGATION | |||||||||
The Company has asset retirement obligations (“ARO”) associated with the future plugging and abandonment of proved properties and related facilities. Initially, the fair value of a liability for an ARO is recorded in the period in which it is incurred and a corresponding increase in the carrying amount of the related long lived asset. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount, a gain or loss is recognized. The Company has no assets that are legally restricted for purposes of settling asset retirement obligations. No settlements of asset retirement obligations have occurred during the periods presented. | |||||||||
Inherent in the fair value calculation are numerous assumptions and judgments including the ultimate retirement costs, inflation factors, credit-adjusted discount rates, timing of retirement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the present value of the existing ARO, a corresponding adjustment is made to the oil and gas property balance. For example, as the Company analyzes actual plugging and abandonment information, the Company may revise its estimate of current costs, the assumed annual inflation of the costs and/or the assumed productive lives of its wells. During 2013, the Company increased its existing ARO by $1.1 million or approximately 71% of the ARO liability at December 31, 2012. This increase was due to an increase in the estimated costs to plug and abandon the Company’s wells and a decrease in the productive life of certain of its oil and gas properties. | |||||||||
The following table summarizes the company’s asset retirement obligation transactions recorded during the year ended December 31, 2013 and 2012. | |||||||||
Year Ended December 31 | |||||||||
2013 | 2012 | ||||||||
Beginning Asset Retirement Obligation | $ | 1,542,542 | $ | 916,622 | |||||
Liabilities Incurred for New Wells Placed in Production | 755,484 | 539,727 | |||||||
Revision of Estimates | 1,097,097 | - | |||||||
Accretion of Discount on Asset Retirement Obligations | 428,879 | 86,193 | |||||||
Ending Asset Retirement Obligation | $ | 3,824,002 | $ | 1,542,542 |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
NOTE 10 INCOME TAXES | |||||||||||||
The Company utilizes the asset and liability approach to measuring deferred tax assets and liabilities based on temporary differences existing at each balance sheet date using currently enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||||||
In 2013, the State of North Dakota lowered its corporate income tax rate. The impact of this rate change was to lower the Company’s deferred state income tax expense by approximately $0.5 million during the year ended December 31, 2013. | |||||||||||||
The income tax provision for the year ended December 31, 2013, 2012, and 2011 consists of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current Income Taxes | $ | (8,386 | ) | $ | 17,772 | $ | 2,300 | ||||||
Deferred Income Taxes | |||||||||||||
Federal | 29,826,000 | 39,850,000 | 22,982,000 | ||||||||||
State | 1,950,000 | 3,134,000 | 3,851,000 | ||||||||||
Total Expense | $ | 31,767,614 | $ | 43,001,772 | $ | 26,835,300 | |||||||
The following is a reconciliation of the reported amount of income tax expense for the years ended December 31, 2013, 2012, and 2011 to the amount of income tax expenses that would result from applying the statutory rate to pretax income. | |||||||||||||
Reconciliation of reported amount of income tax expense: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income Before Taxes and NOL | $ | 84,834,650 | $ | 115,286,396 | $ | 67,446,792 | |||||||
Federal Statutory Rate | X 35 | % | X 35 | % | X 35 | % | |||||||
Taxes Computed at Federal Statutory Rates | 29,692,000 | 40,350,000 | 23,606,000 | ||||||||||
State Taxes, Net of Federal Taxes | 909,614 | 2,086,772 | 2,408,300 | ||||||||||
Executive Compensation Deductibility Limits | 987,000 | 523,000 | 617,000 | ||||||||||
Other | 179,000 | 42,000 | 204,000 | ||||||||||
Reported Provision | $ | 31,767,614 | $ | 43,001,772 | $ | 26,835,300 | |||||||
At December 31, 2013, the Company had a net operating loss carryforward for Federal income tax purposes of $850.1 million. If unutilized, the federal net operating losses will expire in 2027-2033. | |||||||||||||
The components of the Company’s deferred tax asset (liability) were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Current: | |||||||||||||
Share Based Compensation | $ | 1,834,000 | $ | 2,384,000 | |||||||||
Accrued Interest | 1,241,000 | 751,000 | |||||||||||
Derivative Instruments | 7,094,000 | - | |||||||||||
Other | 391,000 | 201,000 | |||||||||||
Total Current | 10,560,000 | 3,336,000 | |||||||||||
Non-Current: | |||||||||||||
Net Operating Loss Carryforwards (NOLs) | 316,266,000 | 256,473,000 | |||||||||||
Derivative Instruments | - | 295,000 | |||||||||||
Other | 69,000 | 65,000 | |||||||||||
Total Non-Current | 316,335,000 | 256,833,000 | |||||||||||
Total Deferred Tax Asset | $ | 326,895,000 | $ | 260,169,000 | |||||||||
Deferred Tax Liabilities | |||||||||||||
Current: | |||||||||||||
Derivative Instruments | - | (1,538,000 | ) | ||||||||||
Other | (129,000 | ) | (103,000 | ) | |||||||||
Total Current | $ | (129,000 | ) | $ | (1,641,000 | ) | |||||||
Non-Current: | |||||||||||||
Crude Oil and Natural Gas Properties and Other Property | (432,596,000 | ) | (333,008,000 | ) | |||||||||
Derivative Instruments | (413,000 | ) | - | ||||||||||
Total Non-Current | (433,009,000 | ) | (333,008,000 | ) | |||||||||
Total Deferred Tax Liability | (433,138,000 | ) | (334,649,000 | ) | |||||||||
Total Net Deferred Tax Liability | $ | (106,243,000 | ) | $ | (74,480,000 | ) | |||||||
The balances in the components of deferred tax asset (liability) table above were corrected to increase the deferred tax asset for net operating losses and the deferred tax liability for crude oil and natural gas properties and other property by approximately $62 million. The adjustment had no impact to the total net deferred tax liability. | |||||||||||||
Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. | |||||||||||||
The Company has no liabilities for unrecognized tax benefits. | |||||||||||||
The Company’s policy is to recognize potential interest and penalties accrued related to unrecognized tax benefits within income tax expense. For the years ended December 31, 2013, 2012 and 2011, the Company did not recognize any interest or penalties in its statements of comprehensive income, nor did it have any interest or penalties accrued in its balance sheet at December 31, 2013 and 2012 relating to unrecognized benefits. | |||||||||||||
The tax years 2013, 2012, 2011 and 2010 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which the Company is subject. |
OPERATING_LEASES
OPERATING LEASES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
OPERATING LEASES [Abstract] | ' | ||||
OPERATING LEASES | ' | ||||
NOTE 11 OPERATING LEASES | |||||
Vehicles | |||||
The Company leases vehicles under noncancelable operating leases. Total lease expense under the agreements was approximately $28,000, $48,000 and $63,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||
Minimum future lease payments under these vehicle leases are approximately $27,000 in 2014. | |||||
Building | |||||
Effective November 2011, the Company extended their original operating lease agreement on 3,044 square feet of office space and added an additional 1,609 square feet of office space, for a total of 4,653 square feet. The two leases require initial gross monthly lease payments of $18,612. The monthly payments increase by 4% on each anniversary date. The leases expire in November 2015. The Company also has annual and month to month lease agreements related to storage and parking spaces. Total rent expense under the agreements was approximately $249,000, $217,000 and $150,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||
The Company has prepaid the last three months rent in the amount of $53,553. Minimum future lease payments under the building leases are as follows: | |||||
Year Ended December 31, | Amount | ||||
2014 | $ | 278,000 | |||
2015 | 177,000 | ||||
Total | $ | 455,000 | |||
The Company received $91,320 of landlord incentives under the original lease agreement and an additional $58,620 under the lease for the additional 1,609 square feet. The Company has recorded a deferred rent liability for these amounts that are being amortized over the term of the leases. |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
FAIR VALUE [Abstract] | ' | ||||||||||||
FAIR VALUE | ' | ||||||||||||
NOTE 12 FAIR VALUE | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: | |||||||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets of liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||
The following schedule summarizes the valuation of financial instruments measured at fair value on a recurring basis in the balance sheet as of December 31, 2013 and 2012. | |||||||||||||
Fair Value Measurements at | |||||||||||||
December 31, 2013 Using | |||||||||||||
Quoted Prices In Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||
Commodity Derivatives – Current Asset (crude oil swaps and collars) | $ | - | $ | 62,890 | $ | - | |||||||
Commodity Derivatives – Current Liability (crude oil swaps and collars) | - | (19,119,646 | ) | - | |||||||||
Commodity Derivatives – Non-Current Asset (crude oil swaps and collars) | - | 1,745,405 | - | ||||||||||
Commodity Derivatives – Non-Current Liability (crude oil swaps and collars | - | (637,208 | ) | - | |||||||||
Total | - | $ | (17,948,559 | ) | $ | - | |||||||
Fair Value Measurements at | |||||||||||||
December 31, 2012 Using | |||||||||||||
Quoted Prices In Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||
Commodity Derivatives – Current Asset (crude oil swaps and collars) | $ | - | $ | 4,095,197 | $ | - | |||||||
Commodity Derivatives – Non-Current Asset (crude oil swaps and collars) | - | 1,763,008 | - | ||||||||||
Commodity Derivatives – Non-Current Liability (crude oil swaps and collars | - | (2,547,745 | ) | - | |||||||||
Total | $ | - | $ | 3,310,460 | $ | - | |||||||
Level 2 assets and liabilities consist of derivative assets and liabilities (see Note 14), the Revolving Credit Facility (see Note 4) and the Notes (see Note 4). The fair value of the Company’s derivative financial instruments is determined based upon future prices, volatility and time to maturity, among other things. Counterparty statements are utilized to determine the value of the commodity derivative instruments and are reviewed and corroborated using various methodologies and significant observable inputs. The Company’s and the counterparties’ nonperformance risk is evaluated. The fair value of all derivative contracts is reflected on the balance sheet. The current derivative asset and liability amounts represent the fair values expected to be settled in the subsequent year. The book value of the Revolving Credit Facility approximates fair value because of its floating rate structure. The fair value of our 8% senior notes is based on an end of period market quote. | |||||||||||||
The Company’s long-term debt is not measured at fair value on the balance sheets and the fair value is being provided for disclosure purposes. At December 31, 2013, the Company had $500 million of senior unsecured notes and $75 million under the Revolving Credit Facility outstanding with a fair value of $527.5 million and $75 million, respectively. At December 31, 2012, the Company had $300 million of senior unsecured notes and $124 million under the Revolving Credit Facility outstanding with a fair value of $310.5 million and $124.0 million, respectively. The estimated fair value of debt was based upon quoted market prices and, where such prices were not available, other observable inputs regarding interest rates available to the Company at the end of each respective period. | |||||||||||||
Though the Company believes the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in a different estimate of fair value. There were no transfers of financial assets or liabilities between Level 1, Level 2 or Level 3 inputs for the years ended December 31, 2013 and 2012. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2013 | |
FINANCIAL INSTRUMENTS [Abstract] | ' |
FINANCIAL INSTRUMENTS | ' |
NOTE 13 FINANCIAL INSTRUMENTS | |
The Company’s non-derivative financial instruments include cash and cash equivalents, and credit facility and are not measured at fair value on the balance sheets. The carrying amount of these non-derivative financial instruments approximate their fair values (See Note 12). | |
The Company’s accounts receivable relate to crude oil and natural gas sold to various industry companies. Credit terms, typical of industry standards, are of a short-term nature and the Company does not require collateral. Management believes the Company’s accounts receivable at December 31, 2013 and 2012 do not represent significant credit risks as they are dispersed across many counterparties. As of December 31, 2013, outstanding derivative contracts with commercial banks participating in the revolving credit facility represent all of the Company’s crude oil volumes hedged. These commercial banks have investment-grade ratings from Moody’s and Standard & Poor and are lenders under the Company’s revolving credit facility and management believes this does not represent a significant credit risk. |
DERIVATIVE_INSTRUMENTS_AND_PRI
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT [Abstract] | ' | ||||||||||||||
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT | ' | ||||||||||||||
NOTE 14 DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT | |||||||||||||||
The Company utilizes commodity swap contracts and costless collars (purchased put options and written call options) to (i) reduce the effects of volatility in price changes on the crude oil commodities it produces and sells, (ii) reduce commodity price risk and (iii) provide a base level of cash flow in order to assure it can execute at least a portion of its capital spending. | |||||||||||||||
On November 1, 2009, due to the volatility of price differentials in the Williston Basin, the Company de-designated all derivatives that were previously classified as cash flow hedges and, in addition, the Company has elected not to designate any subsequent derivative contracts as cash flow hedges. Beginning on November 1, 2009, all derivative positions are carried at their fair value on the balance sheet and are marked-to-market at the end of each period. Any realized gains and losses on settled derivatives are recorded to gain or loss on settled derivatives and gains or losses on the mark-to-market of derivative instruments are recorded to (loss) gain on the mark-to-market of derivative instruments on the statement of comprehensive income rather than as a component of other comprehensive income (loss) or other income (expense). | |||||||||||||||
The Company has master netting agreements on individual crude oil contracts with certain counterparties and therefore the current asset and liability are netted on the balance sheet and the non-current asset and liability are netted on the balance sheet for contracts with these counterparties. | |||||||||||||||
Crude Oil Derivative Contracts Cash-flow Hedge | |||||||||||||||
Prior to November 1, 2009, all derivative positions that qualified for hedge accounting were designated on the date the Company entered into the contract as a hedge against the variability in cash flows associated with the forecasted sale of future crude oil production. The cash flow hedges were valued at the end of each period and adjustments to the fair value of the contract prior to settlement were recorded on the statement of stockholders’ equity as other comprehensive income. Upon settlement, the gain (loss) on the cash flow hedge was recorded as an increase or decrease in revenue on the statements of comprehensive income. The Company reports average crude oil and natural gas prices and revenues including the net results of hedging activities. | |||||||||||||||
The net mark-to-market loss on the Company’s remaining swaps that qualified for cash flow hedge accounting at the date the decision was made to discontinue hedge accounting totaled approximately $101,000 as of December 31, 2011. The Company has recorded that amount as accumulated other comprehensive income in stockholders’ equity and the entire amount was amortized into revenues as the original forecasted hedged crude oil production occurred in the first quarter of 2012. | |||||||||||||||
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges | |||||||||||||||
The Company recorded realized losses on settled derivatives of $12.2 million, $0.4 million and $13.4 million as a loss on settled derivatives in the statement of comprehensive income for the years ended December 31, 2013, 2012 and 2011, respectively. The Company recorded (losses) gains of $(21.3) million, $15.1 million and $3.1 million as (losses) gains on the mark-to-market of derivatives in the statement of comprehensive income for the years ended December 31, 2013, 2012 and 2011, respectively. Mark-to-market gains and losses represent changes in fair values of derivatives that have not been settled. | |||||||||||||||
The following table reflects open commodity swap contracts as of December 31, 2013, the associated volumes and the corresponding fixed price. | |||||||||||||||
Settlement Period | Oil (Barrels) | Fixed Price | |||||||||||||
Swaps-Crude Oil | |||||||||||||||
01/01/14 – 06/30/14 | 300,000 | $ | 89.5 | ||||||||||||
01/01/14 – 06/30/14 | 240,000 | 90 | |||||||||||||
01/01/14 – 06/30/14 | 240,000 | 100 | |||||||||||||
01/01/14 – 12/31/14 | 240,000 | 91.65 | |||||||||||||
01/01/14 – 12/31/14 | 345,000 | 88.55 | |||||||||||||
01/01/14 – 12/31/14 | 345,000 | 88.6 | |||||||||||||
01/01/14 – 12/31/14 | 345,000 | 88.4 | |||||||||||||
01/01/14 – 12/31/14 | 345,000 | 88.5 | |||||||||||||
01/01/14 – 12/31/14 | 120,000 | 91.35 | |||||||||||||
01/01/14 – 12/31/14 | 120,000 | 90 | |||||||||||||
01/01/14 – 12/31/14 | 240,000 | 90.15 | |||||||||||||
01/01/14 – 12/31/14 | 240,000 | 91 | |||||||||||||
01/01/14 – 12/31/14 | 120,000 | 93 | |||||||||||||
07/01/14 – 12/31/14 | 120,000 | 90 | |||||||||||||
07/01/14 – 12/31/14 | 120,000 | 90 | |||||||||||||
07/01/14 – 12/31/14 | 120,000 | 93.5 | |||||||||||||
07/01/14 – 12/31/14 | 30,000 | 90.58 | |||||||||||||
01/01/14 – 06/30/15 | 480,000 | 89.15 | |||||||||||||
01/01/15 – 06/30/15 | 60,000 | 90.5 | |||||||||||||
01/01/15 – 06/30/15 | 180,000 | 88.55 | |||||||||||||
01/01/15 – 06/30/15 | 180,000 | 88 | |||||||||||||
01/01/15 – 06/30/15 | 60,000 | 90.75 | |||||||||||||
01/01/15 – 06/30/15 | 60,000 | 90.25 | |||||||||||||
01/01/15 – 06/30/15 | 90,000 | 89 | |||||||||||||
01/01/15 – 06/30/15 | 90,000 | 89 | |||||||||||||
01/01/15 – 12/31/15 | 720,000 | 89 | |||||||||||||
01/01/15 – 12/31/15 | 360,000 | 89 | |||||||||||||
01/01/15 – 12/31/15 | 360,000 | 89.02 | |||||||||||||
01/01/15 – 12/31/15 | 180,000 | 89 | |||||||||||||
01/01/15 – 12/31/15 | 180,000 | 89 | |||||||||||||
As of December 31, 2013, the Company had a total volume on open commodity swaps of 6.6 million barrels at a weighted average price of approximately $89.84. | |||||||||||||||
The following table reflects the weighted average price of open commodity derivative contracts as of December 31, 2013, by year with associated volumes. | |||||||||||||||
Weighted Average Price | |||||||||||||||
Of Open Commodity Swap Contracts | |||||||||||||||
Year | Volumes (Bbl) | Weighted | |||||||||||||
Average Price | |||||||||||||||
2014 | 3,750,000 | $ | 90.46 | ||||||||||||
2015 | 2,880,000 | 89.02 | |||||||||||||
In addition to the open commodity swap contracts the Company has entered into costless collars. The costless collars are used to establish floor and ceiling prices on anticipated crude oil production. There were no premiums paid or received by the Company related to the costless collar agreements. The following table reflects open costless collar agreements as of December 31, 2013. | |||||||||||||||
Term | Oil (Barrels) | Floor/Ceiling Price | Basis | ||||||||||||
Costless Collars – Crude Oil | |||||||||||||||
01/01/14 – 12/31/14 | 240,000 | $ | 90.00/$99.05 | NYMEX | |||||||||||
We determine the estimated fair value of derivative instruments using a market approach based on several factors, including quoted market prices in active markets and quotes from third parties, among other things. The Company also performs an internal valuation to ensure the reasonableness of third party quotes. In consideration of counterparty credit risk, the Company assessed the possibility of whether the counterparty to the derivative would default by ailing to make any contractually required payments. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. For further details regarding our derivative contracts see Note 12, Fair Value in the Notes to the Financial Statements. | |||||||||||||||
The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at December 31, 2013 and 2012, respectively. Certain amounts may be presented on a net basis on the consolidated financial statements when such amounts are with the same counterparty and subject to a master netting arrangement: | |||||||||||||||
December 31, | |||||||||||||||
Estimated Fair Value | |||||||||||||||
Type of Crude Oil Contract | Balance Sheet Location | 2013 | 2012 | ||||||||||||
Derivative Assets: | |||||||||||||||
Swap Contracts | Current assets/liabilities | $ | 62,890 | $ | 680,647 | ||||||||||
Swap Contracts | Non-current assets | 1,745,405 | 1,977,722 | ||||||||||||
Costless Collars | Current assets/liabilities | - | 11,769,415 | ||||||||||||
Costless Collars | Non-current asset/liabilities | - | 5,629,996 | ||||||||||||
Total Derivative Assets | $ | 1,808,295 | $ | 20,057,780 | |||||||||||
Derivative Liabilities: | |||||||||||||||
Swap Contracts | Current assets/liabilities | $ | (19,111,820 | ) | $ | (2,037,070 | ) | ||||||||
Swap Contracts | Non-current assets | (637,208 | ) | (3,170,945 | ) | ||||||||||
Costless Collars | Current assets/liabilities | (7,826 | ) | (6,317,795 | ) | ||||||||||
Costless Collars | Non-current assets/liabilities | - | (5,221,510 | ) | |||||||||||
Total Derivative Liabilities | $ | (19,756,854 | ) | $ | (16,747,320 | ) | |||||||||
The following disclosures are applicable to the Company’s financial statements, as of December 31, 2013, 2012 and 2011: | |||||||||||||||
Derivative Type | Location of Loss for Effective and Ineffective Portion of Derivative in Income | Amount of Loss Reclassified from AOCI into Income | |||||||||||||
Year Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Commodity – Cash Flow | Loss on Settled Derivatives | $ | - | $ | 101,309 | $ | 1,157,775 | ||||||||
The use of derivative transactions involves the risk that the counterparties will be unable to meet the financial terms of such transactions. When the Company has netting arrangements with its counterparties that provide for offsetting payables against receivables from separate derivative instruments these assets and liabilities are netted on the balance sheet. The tables presented below provide reconciliation between the gross assets and liabilities and the amounts reflected on the balance sheet. The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates. | |||||||||||||||
Estimated Fair Value at December 31, 2013 | |||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets Presented in the Balance Sheet | |||||||||||||
Offsetting of Derivative Assets: | |||||||||||||||
Current Assets | $ | 629,178 | $ | (566,288 | ) | $ | 62,890 | ||||||||
Non-Current Assets | 2,589,079 | (843,674 | ) | 1,745,405 | |||||||||||
Total Derivative Assets | $ | 3,218,257 | $ | (1,409,962 | ) | $ | 1,808,295 | ||||||||
Offsetting of Derivative Liabilities: | |||||||||||||||
Current Liabilities | $ | (19,685,934 | ) | $ | 566,288 | $ | (19,119,646 | ) | |||||||
Non-Current Liabilities | (1,480,882 | ) | 843,674 | (637,208 | ) | ||||||||||
Total Derivative Liabilities | $ | (21,166,816 | ) | $ | 1,409,962 | $ | (19,756,854 | ) | |||||||
Estimated Fair Value at December 31, 2012 | |||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets Presented in the Balance Sheet | |||||||||||||
Offsetting of Derivative Assets: | |||||||||||||||
Current Assets | $ | 12,450,062 | $ | (8,354,865 | ) | $ | 4,095,197 | ||||||||
Non-Current Assets | 7,607,718 | (5,844,710 | ) | 1,763,008 | |||||||||||
Total Derivative Assets | $ | 20,057,780 | $ | (14,199,575 | ) | $ | 5,858,205 | ||||||||
Offsetting of Derivative Liabilities: | |||||||||||||||
Current Liabilities | $ | (8,354,865 | ) | $ | 8,354,865 | $ | - | ||||||||
Non-Current Liabilities | (8,392,455 | ) | 5,844,710 | (2,547,745 | ) | ||||||||||
Total Derivative Liabilities | $ | (16,747,320 | ) | $ | 14,199,575 | $ | (2,547,745 | ) | |||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||||||||||||||||||||||
NOTE 15 EARNINGS PER SHARE | |||||||||||||||||||||||||||||||||||||
The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Net | Shares | Per Share | Net | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||||||||||||||||||
Income | Income | ||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 53,067,036 | 62,364,957 | $ | 0.85 | $ | 72,284,624 | 62,485,836 | $ | 1.16 | $ | 40,611,492 | 61,789,289 | $ | 0.66 | ||||||||||||||||||||||
Dilutive Effect of Options | - | 382,341 | - | - | 383,243 | (0.01 | ) | - | 406,051 | (0.01 | ) | ||||||||||||||||||||||||||
Diluted EPS | $ | 53,067,036 | 62,747,298 | $ | 0.85 | $ | 72,284,624 | 62,869,079 | $ | 1.15 | $ | 40,611,492 | 62,195,340 | $ | 0.65 | ||||||||||||||||||||||
For the year ended December 31, 2013 and 2012 restricted stock of 7,330 and 18,348 shares of common stock were excluded from EPS due to the anti-dilutive effect. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
EMPLOYEE BENEFIT PLANS [Abstract] | ' |
EMPLOYEE BENEFIT PLANS | ' |
NOTE 16 EMPLOYEE BENEFIT PLANS | |
In 2009, the Company adopted a defined contribution 401(k) plan for substantially all of its employees. The plan provides for Company matching of employee contributions to the plan. During 2013, 2012 and 2011, the Company provided a match contribution equal to 100% of an eligible employee’s deferral contribution, up to 8% of the employee’s earnings up to the maximum allowable amount. The Company contributed approximately $240,000, $189,000 and $103,000 to the 401(k) plan for the years ended December 31, 2013, 2012 and 2011, respectively. |
SEVERANCE_ARRANGEMENTS
SEVERANCE ARRANGEMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SEVERANCE ARRANGEMENTS [Abstract] | ' | ||||||||||||||||
SEVERANCE ARRANGEMENTS | ' | ||||||||||||||||
NOTE 17 SEVERANCE ARRANGEMENTS | |||||||||||||||||
The Company’s former president, Ryan Gilbertson, resigned effective October 1, 2012. In connection with his resignation, the Company and Mr. Gilbertson entered into a separation and release agreement and a consulting agreement (collectively, the “New Agreements”), which terminate and supersede his prior employment agreement with the Company (except for certain surviving provisions). Pursuant to the New Agreements, Mr. Gilbertson’s outstanding and unvested restricted stock awards will continue to vest on their original vesting schedules, so long as Mr. Gilbertson does not terminate the consulting agreement and the Company does not terminate the consulting agreement for cause (as defined). In addition, pursuant to the New Agreements the Company (i) provided Mr. Gilbertson with a prorated portion of his 2012 year-end bonus (based on predetermined performance metrics and as determined by the Company’s compensation committee following the end of 2012), (ii) bought out the lease and transferred title to Mr. Gilbertson on his Company-leased vehicle, and (iii) is reimbursing Mr. Gilbertson for continuation coverage pursuant to COBRA on the Company’s health plans for up to 18 months. | |||||||||||||||||
In connection with the New Agreements, the Company concluded the unvested restricted stock awards were modified in connection with the change in Mr. Gilbertson’s employment status and service requirements. Because the Company expects Mr. Gilbertson’s awards will vest under the modified conditions but his period of active service in substance has concluded, $4.3 million of share based compensation costs was reflected in general and administrative expense during the third quarter of 2012 related to the modified awards. Additionally, the cash expenses estimated for Mr. Gilbertson’s prorated 2012 bonus, Company-leased vehicle and continuation coverage pursuant to COBRA was estimated at approximately $0.6 million and was reflected in general and administrative expense during the third quarter of 2012. | |||||||||||||||||
On October 16, 2012, the Company terminated the employment of its Chief Operating Officer, James R. Sankovitz. Mr. Sankovitz’s termination was “not for cause” under his existing employment agreement with the Company, and as a result he was entitled to certain severance benefits which included a single lump-sum payment of one times his $325,000 base salary. In addition, the Company agreed to buy out the lease and transfer title to Mr. Sankovitz on his Company-leased vehicle, and reimburse Mr. Sankovitz for continuation coverage pursuant to COBRA on the Company’s health plans for up to 18 months. | |||||||||||||||||
Oil and Natural Gas Exploration and Production Activities | |||||||||||||||||
Oil and gas sales reflect the market prices of net production sold or transferred with appropriate adjustments for royalties, net profits interest, and other contractual provisions. Production expenses include lifting costs incurred to operate and maintain productive wells and related equipment including such costs as operating labor, repairs and maintenance, materials, supplies and fuel consumed. Production taxes include production and severance taxes. Depletion of crude oil and natural gas properties relates to capitalized costs incurred in acquisition, exploration, and development activities. Results of operations do not include interest expense and general corporate amounts. The results of operations for the company’s crude oil and natural gas production activities are provided in the Company’s related statements of income. | |||||||||||||||||
Costs Incurred and Capitalized Costs | |||||||||||||||||
The costs incurred in crude oil and natural gas acquisition, exploration and development activities are highlighted in the table below. | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Costs Incurred for the Year: | |||||||||||||||||
Proved Property Acquisition and Other | $ | 29,404,632 | $ | 24,791,828 | $ | 53,497,199 | |||||||||||
Unproved Property Acquisition | 20,207,844 | 27,304,425 | 57,867,660 | ||||||||||||||
Development | 389,491,634 | 485,392,505 | 302,594,511 | ||||||||||||||
Total | $ | 439,104,110 | $ | 537,488,758 | $ | 413,959,370 | |||||||||||
Excluded costs for unproved properties are accumulated by year. Costs are reflected in the full cost pool as the drilling costs are incurred or as costs are evaluated and deemed impaired. The Company anticipates these excluded costs will be included in the depletion computation over the next five years. The Company is unable to predict the future impact on depletion rates. The following is a summary of capitalized costs excluded from depletion at December 31, 2013 by year incurred. | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | Prior Years | ||||||||||||||
Property Acquisition | $ | 17,086,145 | $ | 8,076,277 | $ | 22,875,092 | $ | 22,110,834 | |||||||||
Development | - | - | - | - | |||||||||||||
Total | $ | 17,086,145 | $ | 8,076,277 | $ | 22,875,092 | $ | 22,110,834 | |||||||||
Oil and Natural Gas Reserves and Related Financial Data | |||||||||||||||||
Information with respect to the Company’s crude oil and natural gas producing activities is presented in the following tables. Reserve quantities, as well as certain information regarding future production and discounted cash flows, were determined by Ryder Scott Company, independent petroleum consultants based on information provided by the Company. | |||||||||||||||||
Oil and Natural Gas Reserve Data | |||||||||||||||||
The following tables present the Company’s independent petroleum consultants’ estimates of its proved crude oil and natural gas reserves. The Company emphasizes that reserves are approximations and are expected to change as additional information becomes available. Reservoir engineering is a subjective process of estimating underground accumulations of crude oil and natural gas that cannot be measured in an exact way, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. | |||||||||||||||||
Natural Gas | Oil | ||||||||||||||||
(MCF) | (BBLS) | ||||||||||||||||
Proved Developed and Undeveloped Reserves at December 31, 2010 | 10,449,962 | 13,993,697 | |||||||||||||||
Revisions of Previous Estimates | (940,065 | ) | 924,434 | ||||||||||||||
Extensions, Discoveries and Other Additions | 20,959,474 | 28,750,826 | |||||||||||||||
Production | (800,207 | ) | (1,791,979 | ) | |||||||||||||
Proved Developed and Undeveloped Reserves at December 31, 2011 | 29,669,164 | 41,876,978 | |||||||||||||||
Revisions of Previous Estimates | (1,410,547 | ) | 812,371 | ||||||||||||||
Extensions, Discoveries and Other Additions | 14,788,384 | 21,490,244 | |||||||||||||||
Production | (1,768,872 | ) | (3,465,312 | ) | |||||||||||||
Proved Developed and Undeveloped Reserves at December 31, 2012 | 41,278,129 | 60,714,281 | |||||||||||||||
Revisions of Previous Estimates | (8,634,689 | ) | (12,749,049 | ) | |||||||||||||
Extensions, Discoveries and Other Additions | 20,096,944 | 31,880,594 | |||||||||||||||
Production | (2,572,251 | ) | (4,046,701 | ) | |||||||||||||
Proved Developed and Undeveloped Reserves at December 31, 2013 | 50,168,133 | 75,799,125 | |||||||||||||||
Proved Developed Reserves: | |||||||||||||||||
December 31, 2010 | 3,513,427 | 5,840,745 | |||||||||||||||
December 31, 2011 | 8,452,653 | 14,338,576 | |||||||||||||||
December 31, 2012 | 17,350,166 | 27,345,824 | |||||||||||||||
December 31, 2013 | 20,642,967 | 32,043,405 | |||||||||||||||
Proved Undeveloped Reserves | |||||||||||||||||
December 31, 2010 | 6,936,535 | 8,152,952 | |||||||||||||||
December 31, 2011 | 21,216,511 | 27,538,402 | |||||||||||||||
December 31, 2012 | 23,927,963 | 33,368,457 | |||||||||||||||
December 31, 2013 | 29,525,166 | 43,755,720 | |||||||||||||||
Proved reserves are estimated quantities of crude oil and natural gas, which geological and engineering data indicate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Proved undeveloped reserves are included for reserves for which there is a high degree of confidence in their recoverability and they are scheduled to be drilled within the next five years. | |||||||||||||||||
Standardized Measure of Discounted Future Net Cash Inflows and Changes Therein | |||||||||||||||||
The following table presents a standardized measure of discounted future net cash flows relating to proved crude oil and natural gas reserves and the changes in standardized measure of discounted future net cash flows relating proved crude oil and natural gas were prepared in accordance with the provisions of ASC 932-235-555. Future cash inflows were computed by applying average prices of crude oil and natural gas for the last 12 months to estimated future production. Future production and development costs were computed by estimating the expenditures to be incurred in developing and producing the proved crude oil and natural gas reserves at the end of the year, based on year end costs and assuming continuation of existing economic conditions. Future income tax expenses were calculated by applying appropriate year end tax rates to future pretax cash flows relating to proved crude oil and natural gas reserves, less the tax basis of properties involved and tax credits and loss carry forwards relating to crude oil and natural gas producing activities. Future net cash flows are discounted at the rate of 10% annually to derive the standardized measure of discounted future cash flows. Actual future cash inflows may vary considerably, and the standardized measure does not necessarily represent the fair value of the Company’s crude oil and natural gas reserves. | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Future Cash Inflows | $ | 6,932,701,500 | $ | 5,353,167,000 | $ | 3,959,403,500 | |||||||||||
Future Production Costs | (2,093,282,688 | ) | (1,436,711,062 | ) | (925,165,656 | ) | |||||||||||
Future Development Costs | (1,281,664,750 | ) | (846,363,500 | ) | (624,607,500 | ) | |||||||||||
Future Income Tax Expense | (952,120,002 | ) | (817,296,323 | ) | (740,132,743 | ) | |||||||||||
Future Net Cash Inflows | $ | 2,605,634,060 | $ | 2,252,796,115 | $ | 1,669,497,601 | |||||||||||
10% Annual Discount for Estimated Timing of Cash Flows | (1,381,267,234 | ) | (1,211,441,321 | ) | (830,800,217 | ) | |||||||||||
Standardized Measure of Discounted Future Net Cash Flows | $ | 1,224,366,826 | $ | 1,041,354,794 | $ | 838,697,384 | |||||||||||
The twelve month average prices were adjusted to reflect applicable transportation and quality differentials on a well-by-well basis to arrive at realized sales prices used to estimate the Company’s reserves. The price of other liquids is included in natural gas. The prices for the Company’s reserve estimates were as follows: | |||||||||||||||||
Natural Gas | Oil | ||||||||||||||||
MCF | Bbl | ||||||||||||||||
December 31, 2013 | $ | 5.23 | $ | 88 | |||||||||||||
December 31, 2012 | $ | 4.78 | $ | 84.92 | |||||||||||||
December 31, 2011 | $ | 6.18 | $ | 90.17 | |||||||||||||
Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum follow: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning of Period | $ | 1,041,354,794 | $ | 838,697,384 | $ | 210,612,791 | |||||||||||
Sales of Oil and Natural Gas Produced, Net of Production Costs | (292,369,010 | ) | (235,769,953 | ) | (132,095,155 | ) | |||||||||||
Extensions and Discoveries | 640,467,848 | 455,623,034 | 756,304,288 | ||||||||||||||
Previously Estimated Development Cost Incurred During the Period | 139,069,899 | 193,669,706 | 23,941,194 | ||||||||||||||
Net Change of Prices and Production Costs | 16,693,046 | (179,505,191 | ) | 140,217,589 | |||||||||||||
Change in Future Development Costs | 45,583,609 | (112,995,358 | ) | (11,285,152 | ) | ||||||||||||
Revisions of Quantity and Timing Estimates | (454,395,244 | ) | 15,687,427 | 13,491,953 | |||||||||||||
Accretion of Discount | 128,740,632 | 110,133,321 | 29,551,146 | ||||||||||||||
Change in Income Taxes | (50,871,552 | ) | 16,584,302 | (177,737,162 | ) | ||||||||||||
Other | 10,092,804 | (60,769,878 | ) | (14,304,107 | ) | ||||||||||||
End of Period | $ | 1,224,366,826 | $ | 1,041,354,794 | $ | 838,697,384 |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of financial statements under GAAP 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 period. The most significant estimates relate to proved crude oil and natural gas reserve volumes, future development costs, estimates relating to certain crude oil and natural gas revenues and expenses, fair value of derivative instruments, and deferred income taxes. Actual results may differ from those estimates. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents | |||||||||||||
Northern considers highly liquid investments with insignificant interest rate risk and original maturities to the Company of three months or less to be cash equivalents. Cash equivalents consist primarily of interest-bearing bank accounts and money market funds. The Company’s cash positions represent assets held in checking and money market accounts. These assets are generally available on a daily or weekly basis and are highly liquid in nature. Due to the balances being greater than $250,000, the Company does not have FDIC coverage on the entire amount of bank deposits. The Company believes this risk is minimal. In addition, the Company is subject to Security Investor Protection Corporation (“SIPC”) protection on a vast majority of its financial assets. | |||||||||||||
Accounts Receivable | ' | ||||||||||||
Accounts Receivable | |||||||||||||
Accounts receivable are carried on a gross basis, with no discounting. The Company regularly reviews all aged accounts receivable for collectability and establishes an allowance as necessary for individual customer balances. | |||||||||||||
At December 31, 2013 and 2012, the allowance for doubtful accounts was $1,050,000 and $0, respectively. The amount charged to operations for doubtful accounts was $1,050,000, $0, and $0 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Advances to Operators | ' | ||||||||||||
Advances to Operators | |||||||||||||
The Company participates in the drilling of crude oil and natural gas wells with other working interest partners. Due to the capital intensive nature of crude oil and natural gas drilling activities, the working interest partner responsible for conducting the drilling operations may request advance payments from other working interest partners for their share of the costs. The Company expects such advances to be applied by working interest partners against joint interest billings for its share of drilling operations within 90 days from when the advance is paid. | |||||||||||||
Other Property and Equipment | ' | ||||||||||||
Other Property and Equipment | |||||||||||||
Property and equipment that are not crude oil and natural gas properties are recorded at cost and depreciated using the straight-line method over their estimated useful lives of three to seven years. Expenditures for replacements, renewals, and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. Long-lived assets, other than crude oil and natural gas properties, are evaluated for impairment to determine if current circumstances and market conditions indicate the carrying amount may not be recoverable. The Company has not recognized any impairment losses on non-crude oil and natural gas long-lived assets. Depreciation expense was $325,859, $409,888, and $298,137 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Full Cost Method | ' | ||||||||||||
Full Cost Method | |||||||||||||
Northern follows the full cost method of accounting for crude oil and natural gas operations whereby all costs related to the exploration and development of crude oil and natural gas properties are initially capitalized into a single cost center (“full cost pool”). Such costs include land acquisition costs, geological and geophysical expenses, carrying charges on non-producing properties, costs of drilling directly related to acquisition, and exploration activities. Internal costs that are capitalized are directly attributable to acquisition, exploration and development activities and do not include costs related to the production, general corporate overhead or similar activities. Costs associated with production and general corporate activities are expensed in the period incurred. Capitalized costs are summarized as follows for the years ended December 31, 2013, 2012 and 2011, respectively: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Capitalized Certain Payroll and Other Internal Costs | $ | 3,295,427 | $ | 8,477,678 | $ | 16,952,995 | |||||||
Capitalized Interest Costs | 5,976,981 | 5,929,473 | 405,984 | ||||||||||
Total | $ | 9,272,408 | $ | 14,407,151 | $ | 17,358,979 | |||||||
As of December 31, 2013, the Company held leasehold interests in the Williston Basin on acreage located in North Dakota and Montana targeting the Bakken and Three Forks formations. | |||||||||||||
Proceeds from property sales will generally be credited to the full cost pool, with no gain or loss recognized, unless such a sale would significantly alter the relationship between capitalized costs and the proved reserves attributable to these costs. A significant alteration would typically involve a sale of 25% or more of the proved reserves related to a single full cost pool. In the years ended December 31, 2013, 2012 and 2011, the Company sold acreage and interests in producing properties for $0, $908,000, and $5.0 million, respectively. The proceeds for these sales were applied to reduce the capitalized costs of crude oil and natural gas properties. | |||||||||||||
Capitalized costs associated with impaired properties and capitalized costs related to properties having proved reserves, plus the estimated future development costs and asset retirement costs, are depleted and amortized on the unit-of-production method based on the estimated gross proved reserves as determined by independent petroleum engineers. The costs of unproved properties are withheld from the depletion base until such time as they are either developed or abandoned. When proved reserves are assigned or the property is considered to be impaired, the cost of the property or the amount of the impairment is added to costs subject to depletion and full cost ceiling calculations. For the years ended December 31, 2013, 2012 and 2011, the Company transferred into the full cost pool costs related to expired leases of $14.1 million, $7.1 million, and $9.0 million, respectively. | |||||||||||||
Capitalized costs of crude oil and natural gas properties (net of related deferred income taxes) may not exceed an amount equal to the present value, discounted at 10% per annum, of the estimated future net cash flows from proved crude oil and natural gas reserves plus the cost of unproved properties (adjusted for related income tax effects). Should capitalized costs exceed this ceiling, impairment is recognized. The present value of estimated future net cash flows is computed by applying the 12-month average price of crude oil and natural gas to estimated future production of proved crude oil and natural gas reserves as of period-end, less estimated future expenditures to be incurred in developing and producing the proved reserves and assuming continuation of existing economic conditions. Such present value of proved reserves’ future net cash flows excludes future cash outflows associated with settling asset retirement obligations that have been accrued on the balance sheet. Should this comparison indicate an excess carrying value, the excess is charged to earnings as an impairment expense. During the three year period ended December 31, 2013, the Company has not realized any impairment of its properties. | |||||||||||||
Asset Retirement Obligations | ' | ||||||||||||
Asset Retirement Obligations | |||||||||||||
Asset retirement obligation is included in other noncurrent liabilities and relates to future costs associated with the plugging and abandonment of crude oil and natural gas wells, removal of equipment and facilities from leased acreage and returning the land to its original condition. Estimates are based on estimated remaining lives of those wells based on reserve estimates, external estimates to plug and abandon the wells in the future, inflation, credit adjusted discount rates and federal and state regulatory requirements. The liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. | |||||||||||||
Debt Issuance Costs | ' | ||||||||||||
Debt Issuance Costs | |||||||||||||
Deferred financing costs include origination, legal and other fees to issue debt in connection with the Company’s credit facility and senior unsecured notes. These debt issuance costs are being amortized over the term of the related financing using the straight-line method, which approximates the effective interest method (see Note 4). | |||||||||||||
The amortization of debt issuance costs for the years ended December 31, 2013, 2012 and 2011 was $2,625,240, $1,527,194 and $430,760, respectively. | |||||||||||||
Bond Premium on Senior Notes | ' | ||||||||||||
Bond Premium on Senior Notes | |||||||||||||
At December 31, 2013, the Company had recorded a bond premium of $10.5 million in connection with the “8% Senior Notes Due 2020” (see Note 4). This bond premium is being amortized over the term of the related financing using the straight-line method, which approximates the effective interest method. | |||||||||||||
The amortization of the bond premium for the years ended December 31, 2013, 2012 and 2011 was $960,177, $0 and $0, respectively. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
The Company recognizes crude oil and natural gas revenues from its interests in producing wells when production is delivered to, and title has transferred to, the purchaser and to the extent the selling price is reasonably determinable. The Company uses the sales method of accounting for natural gas balancing of natural gas production and would recognize a liability if the existing proven reserves were not adequate to cover the current imbalance situation. As of December 31, 2013, 2012 and 2011, the Company’s natural gas production was in balance, meaning its cumulative portion of natural gas production taken and sold from wells in which it has an interest equaled its entitled interest in natural gas production from those wells. | |||||||||||||
Concentrations of Market and Credit Risk | ' | ||||||||||||
Concentrations of Market and Credit Risk | |||||||||||||
The future results of the Company’s crude oil and natural gas operations will be affected by the market prices of crude oil and natural gas. The availability of a ready market for crude oil and natural gas products in the future will depend on numerous factors beyond the control of the Company, including weather, imports, marketing of competitive fuels, proximity and capacity of crude oil and natural gas pipelines and other transportation facilities, any oversupply or undersupply of crude oil, natural gas and liquid products, the regulatory environment, the economic environment, and other regional and political events, none of which can be predicted with certainty. | |||||||||||||
The Company operates in the exploration, development and production sector of the crude oil and natural gas industry. The Company’s receivables include amounts due from purchasers of its crude oil and natural gas production. While certain of these customers are affected by periodic downturns in the economy in general or in their specific segment of the crude oil or natural gas industry, the Company believes that its level of credit-related losses due to such economic fluctuations has been and will continue to be immaterial to the Company’s results of operations over the long-term. Trade receivables are generally not collateralized. | |||||||||||||
The Company manages and controls market and counterparty credit risk. In the normal course of business, collateral is not required for financial instruments with credit risk. Financial instruments which potentially subject the Company to credit risk consist principally of temporary cash balances and derivative financial instruments. The Company maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits. The Company has not experienced any significant losses from such investments. The Company attempts to limit the amount of credit exposure to any one financial institution or company. The Company believes the credit quality of its customers is generally high. In the normal course of business, letters of credit or parent guarantees may be required for counterparties which management perceives to have a higher credit risk. | |||||||||||||
Stock-Based Compensation | ' | ||||||||||||
Stock-Based Compensation | |||||||||||||
The Company records expense associated with the fair value of stock-based compensation. For fully vested stock and restricted stock grants the Company calculates the stock based compensation expense based upon estimated fair value on the date of grant. For stock options, the Company uses the Black-Scholes option valuation model to calculate stock based compensation at the date of grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. | |||||||||||||
Stock Issuance | ' | ||||||||||||
Stock Issuance | |||||||||||||
The Company records the stock-based compensation awards issued to non-employees and other external entities for goods and services at either the fair market value of the goods received or services rendered or the instruments issued in exchange for such services, whichever is more readily determinable. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all of the benefits of deferred tax assets will not be realized. No valuation allowance has been recorded as of December 31, 2013 and 2012. | |||||||||||||
Net Income Per Common Share | ' | ||||||||||||
Net Income Per Common Share | |||||||||||||
Basic earnings per share (“EPS”) are computed by dividing net income (the numerator) by the weighted average number of common shares outstanding for the period (the denominator). Diluted EPS is computed by dividing net income by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include stock options and warrants and restricted stock. The number of potential common shares outstanding relating to stock options and warrants and restricted stock is computed using the treasury stock method. | |||||||||||||
The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average common shares outstanding – basic | 62,364,957 | 62,485,836 | 61,789,289 | ||||||||||
Plus: Potentially dilutive common shares | |||||||||||||
Stock options, warrants, and restricted stock | 382,341 | 383,243 | 406,051 | ||||||||||
Weighted average common shares outstanding – diluted | 62,747,298 | 62,869,079 | 62,195,340 | ||||||||||
Restricted stock excluded from EPS due to the anti-dilutive effect | 7,330 | 18,348 | 29,876 | ||||||||||
As of December 31, 2013, 2012 and 2011, potentially dilutive shares from stock options were 241,872, 251,963, and 262,463, respectively. These options are all exercisable at December 31, 2013, 2012 and 2011, at an exercise price of $5.18. | |||||||||||||
The Company also has potentially dilutive shares from restricted stock grants outstanding of 592,565, 777,437, and 1,216,992, at December 31, 2013, 2012, and 2011, respectively. | |||||||||||||
In January 2011, 300,000 warrants that were issued in conjunction with the February 2009 revolving credit facility were exercised at a price of $5.00 per share. | |||||||||||||
Derivative Instruments and Price Risk Management | ' | ||||||||||||
Derivative Instruments and Price Risk Management | |||||||||||||
The Company uses derivative instruments to manage market risks resulting from fluctuations in the prices of crude oil. The Company enters into derivative contracts, including price swaps, caps and floors, which require payments to (or receipts from) counterparties based on the differential between a fixed price and a variable price for a fixed quantity of crude oil without the exchange of underlying volumes. The notional amounts of these financial instruments are based on expected production from existing wells. The Company has, and may continue to use exchange traded futures contracts and option contracts to hedge the delivery price of crude oil at a future date. | |||||||||||||
On November 1, 2009, due to the volatility of price differentials in the Williston Basin, the Company de-designated all derivatives that were previously classified as cash flow hedges and in addition, the Company has elected not to designate any subsequent derivative contracts as accounting hedges. As such, all derivative positions are carried at their fair value on the balance sheet and are marked-to-market at the end of each period. Any realized gains and losses are recorded to gain (loss) on settled derivatives and mark-to-market gains or losses are recorded to (loss) gain on the mark-to-market of derivative instruments on the statements of income and comprehensive income rather than as a component of accumulated other comprehensive income (loss) or other income (expense). See Note 14 for a description of the derivative contracts which the Company has entered into. | |||||||||||||
Prior to November 1, 2009, the Company, at the inception of a derivative contract, designated the derivative as a cash flow hedge. For all derivatives designated as cash flow hedges, the Company formally documented the relationship between the derivative contract and the hedged items, as well as the risk management objective for entering into the derivative contract. To be designated as a cash flow hedge transaction, the relationship between the derivative and the hedged items must be highly effective in achieving the offset of changes in cash flows attributable to the risk both at the inception of the derivative and on an ongoing basis. The Company historically measured hedge effectiveness on a quarterly basis and hedge accounting would be discontinued prospectively if it determined that the derivative was no longer effective in offsetting changes in the cash flows of the hedged item. Gains and losses deferred in accumulated other comprehensive income (loss) related to cash flow hedge derivatives that become ineffective remain unchanged until the related production was delivered. If the Company determined that it was probable that a hedged forecasted transaction would not occur, deferred gains or losses on the derivative were recognized in earnings immediately. | |||||||||||||
Derivatives, historically, were recorded on the balance sheet at fair value and changes in the fair value of derivatives were recorded each period in current earnings or other comprehensive income (loss), depending on whether a derivative was designated as part of a hedge transaction and, if it was, depending on the type of hedge transaction. The Company’s derivatives historically consisted primarily of cash flow hedge transactions in which the Company was hedging the variability of cash flows related to a forecasted transaction. Period to period changes in the fair value of derivative instruments designated as cash flow hedges were reported in accumulated other comprehensive income (loss) and reclassified to earnings in the periods in which the hedged item impacts earnings. The ineffective portion of the cash flow hedges were reflected in current period earnings as gain or loss from derivatives. Gains and losses on derivative instruments that did not qualify for hedge accounting were included in income or loss from derivatives in the period in which they occur. The resulting cash flows from derivatives were reported as cash flows from operating activities. | |||||||||||||
Impairment | ' | ||||||||||||
Impairment | |||||||||||||
Long-lived assets to be held and used are required to be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Crude oil and natural gas properties accounted for using the full cost method of accounting (which the Company uses) are excluded from this requirement but continue to be subject to the full cost method’s impairment rules. There was no impairment recorded at December 31, 2013, 2012, and 2011. | |||||||||||||
New Accounting Pronouncements | ' | ||||||||||||
New Accounting Pronouncements | |||||||||||||
From time to time, new accounting pronouncements are issued by FASB that are adopted by the Company as of the specified effective date. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. | |||||||||||||
Recently Adopted | |||||||||||||
Balance Sheet Offsetting — In December 2011, the FASB issued Balance Sheet (Topic 210) — Disclosures about Offsetting Assets and Liabilities (ASU No. 2011-11), which requires disclosures regarding netting arrangements in agreements underlying derivatives, certain financial instruments and related collateral amounts, and the extent to which an entity’s financial statement presentation policies related to netting arrangements impact amounts recorded to the financial statements. These disclosure requirements do not affect the presentation of amounts in the balance sheets, and are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual reporting periods. The implementation of this disclosure guidance did not have a material impact on the Company’s financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | ||||||||||||
Capitalized costs related to the exploration and development of crude oil and natural gas properties | ' | ||||||||||||
Capitalized costs are summarized as follows for the years ended December 31, 2013, 2012 and 2011, respectively: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Capitalized Certain Payroll and Other Internal Costs | $ | 3,295,427 | $ | 8,477,678 | $ | 16,952,995 | |||||||
Capitalized Interest Costs | 5,976,981 | 5,929,473 | 405,984 | ||||||||||
Total | $ | 9,272,408 | $ | 14,407,151 | $ | 17,358,979 | |||||||
Reconciliation of denominators used to calculate basic and diluted EPS | ' | ||||||||||||
The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the years ended December 31, 2013, 2012 and 2011 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average common shares outstanding – basic | 62,364,957 | 62,485,836 | 61,789,289 | ||||||||||
Plus: Potentially dilutive common shares | |||||||||||||
Stock options, warrants, and restricted stock | 382,341 | 383,243 | 406,051 | ||||||||||
Weighted average common shares outstanding – diluted | 62,747,298 | 62,869,079 | 62,195,340 | ||||||||||
Restricted stock excluded from EPS due to the anti-dilutive effect | 7,330 | 18,348 | 29,876 |
CRUDE_OIL_AND_NATURAL_GAS_PROP1
CRUDE OIL AND NATURAL GAS PROPERTIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
CRUDE OIL AND NATURAL GAS PROPERTIES [Abstract] | ' | ||||||||||||||||
Summary of capitalized costs excluded from depletion | ' | ||||||||||||||||
Excluded costs for unproved properties are accumulated by year. Costs are reflected in the full cost pool as the drilling costs are incurred or as costs are evaluated and deemed impaired. The Company anticipates these excluded costs will be included in the depletion computation over the next five years. The Company is unable to predict the future impact on depletion rates. The following is a summary of capitalized costs excluded from depletion at December 31, 2013 by year incurred. | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | Prior Years | ||||||||||||||
Property Acquisition | $ | 19,608,861 | $ | 18,629,120 | $ | 33,133,410 | $ | 30,971,709 | |||||||||
Development | - | 193,017 | - | - | |||||||||||||
Total | $ | 19,608,861 | $ | 18,822,137 | $ | 33,133,410 | $ | 30,971,709 |
COMMON_AND_PREFERRED_STOCK_Tab
COMMON AND PREFERRED STOCK (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
COMMON AND PREFERRED STOCK [Abstract] | ' | ||||||||||||
Schedule of changes in the number of common stock shares | ' | ||||||||||||
The following is a schedule of changes in the number of shares of common stock since the beginning of 2011: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Beginning Balance | 63,532,622 | 63,330,421 | 62,129,424 | ||||||||||
Stock Based Compensation | 57,371 | 53,140 | 161,628 | ||||||||||
Stock Options Exercised | 10,091 | 10,500 | 3,500 | ||||||||||
Restricted Stock Grants (Note 7) | 353,596 | 837,239 | 786,263 | ||||||||||
Warrants Exercised | - | - | 300,000 | ||||||||||
Stock Repurchase | (2,036,383 | ) | - | - | |||||||||
Other Surrenders | (59,098 | ) | (698,678 | ) | (50,394 | ) | |||||||
Ending Balance | 61,858,199 | 63,532,622 | 63,330,421 |
STOCK_OPTIONSSTOCKBASED_COMPEN1
STOCK OPTIONS/STOCK-BASED COMPENSATION AND WARRANTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
STOCK OPTIONS/STOCK-BASED COMPENSATION AND WARRANTS [Abstract] | ' | ||||||||||||||||||||||||
Restricted stock activity | ' | ||||||||||||||||||||||||
The following table reflects the outstanding restricted stock awards and activity related thereto for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | ||||||||||||||||||||
of | Average | Of | Average | Of | Average | ||||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | ||||||||||||||||||||
Restricted Stock Awards: | |||||||||||||||||||||||||
Restricted Shares Outstanding at the Beginning of the Year | 777,437 | $ | 18.93 | 1,216,992 | $ | 19.87 | 1,135,622 | $ | 13.28 | ||||||||||||||||
Shares Granted | 353,596 | 15.33 | 837,239 | 19.91 | 786,263 | 27.11 | |||||||||||||||||||
Shares Forfeited | (39,049 | ) | 16.78 | (628,550 | ) | 19.08 | - | - | |||||||||||||||||
Lapse of Restrictions | (499,419 | ) | 19.03 | (648,244 | ) | 21.83 | (704,893 | ) | 17.32 | ||||||||||||||||
Restricted Shares Outstanding at the End of the Year | 592,565 | $ | 16.84 | 777,437 | $ | 18.93 | 1,216,992 | $ | 19.87 | ||||||||||||||||
Stock option activity | ' | ||||||||||||||||||||||||
Changes in stock options for the years ended December 31, 2013, 2012, and 2011 were as follows: | |||||||||||||||||||||||||
Number | Weighted Average Exercise Price | Remaining Contractual Term | Intrinsic Value | ||||||||||||||||||||||
of | (in Years) | ||||||||||||||||||||||||
Shares | |||||||||||||||||||||||||
2013:00:00 | |||||||||||||||||||||||||
Beginning Balance | 251,963 | $ | - | - | $ | - | |||||||||||||||||||
Granted | - | - | - | - | |||||||||||||||||||||
Exercised | (10,091 | ) | 5.18 | - | - | ||||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at December 31 | 241,872 | 5.18 | 3.8 | 2,392,000 | |||||||||||||||||||||
Exercisable | 241,872 | 5.18 | 3.8 | 2,392,000 | |||||||||||||||||||||
Ending Vested | 241,872 | 5.18 | 3.8 | 2,392,000 | |||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | |||||||||||||||||||||||
2012:00:00 | |||||||||||||||||||||||||
Beginning Balance | 262,463 | $ | - | - | $ | - | |||||||||||||||||||
Granted | - | - | - | - | |||||||||||||||||||||
Exercised | (10,500 | ) | 5.18 | - | - | ||||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at December 31 | 251,963 | 5.18 | 4.8 | 2,933,000 | |||||||||||||||||||||
Exercisable | 251,963 | 5.18 | 4.8 | 2,933,000 | |||||||||||||||||||||
Ending Vested | 251,963 | 5.18 | 4.8 | 2,933,000 | |||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | |||||||||||||||||||||||
2011:00:00 | |||||||||||||||||||||||||
Beginning Balance | 265,963 | $ | - | - | $ | - | |||||||||||||||||||
Granted | - | - | - | - | |||||||||||||||||||||
Exercised | (3,500 | ) | 5.18 | - | - | ||||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at December 31 | 262,463 | 5.18 | 5.8 | 4,934,000 | |||||||||||||||||||||
Exercisable | 262,463 | 5.18 | 5.8 | 4,934,000 | |||||||||||||||||||||
Ending Vested | 262,463 | 5.18 | 5.8 | 4,934,000 | |||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - |
ASSET_RETIREMENT_OBLIGATION_Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
ASSET RETIREMENT OBLIGATION [Abstract] | ' | ||||||||
Asset retirement obligation transactons | ' | ||||||||
The following table summarizes the company’s asset retirement obligation transactions recorded during the year ended December 31, 2013 and 2012. | |||||||||
Year Ended December 31 | |||||||||
2013 | 2012 | ||||||||
Beginning Asset Retirement Obligation | $ | 1,542,542 | $ | 916,622 | |||||
Liabilities Incurred for New Wells Placed in Production | 755,484 | 539,727 | |||||||
Revision of Estimates | 1,097,097 | - | |||||||
Accretion of Discount on Asset Retirement Obligations | 428,879 | 86,193 | |||||||
Ending Asset Retirement Obligation | $ | 3,824,002 | $ | 1,542,542 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
Income tax expense provision | ' | ||||||||||||
The income tax provision for the year ended December 31, 2013, 2012, and 2011 consists of the following: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current Income Taxes | $ | (8,386 | ) | $ | 17,772 | $ | 2,300 | ||||||
Deferred Income Taxes | |||||||||||||
Federal | 29,826,000 | 39,850,000 | 22,982,000 | ||||||||||
State | 1,950,000 | 3,134,000 | 3,851,000 | ||||||||||
Total Expense | $ | 31,767,614 | $ | 43,001,772 | $ | 26,835,300 | |||||||
Reconciliation of reported amount of income tax expense (benefit) | ' | ||||||||||||
Reconciliation of reported amount of income tax expense: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income Before Taxes and NOL | $ | 84,834,650 | $ | 115,286,396 | $ | 67,446,792 | |||||||
Federal Statutory Rate | X 35 | % | X 35 | % | X 35 | % | |||||||
Taxes Computed at Federal Statutory Rates | 29,692,000 | 40,350,000 | 23,606,000 | ||||||||||
State Taxes, Net of Federal Taxes | 909,614 | 2,086,772 | 2,408,300 | ||||||||||
Executive Compensation Deductibility Limits | 987,000 | 523,000 | 617,000 | ||||||||||
Other | 179,000 | 42,000 | 204,000 | ||||||||||
Reported Provision | $ | 31,767,614 | $ | 43,001,772 | $ | 26,835,300 | |||||||
Components of deferred tax asset (liability) | ' | ||||||||||||
The components of the Company’s deferred tax asset (liability) were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Current: | |||||||||||||
Share Based Compensation | $ | 1,834,000 | $ | 2,384,000 | |||||||||
Accrued Interest | 1,241,000 | 751,000 | |||||||||||
Derivative Instruments | 7,094,000 | - | |||||||||||
Other | 391,000 | 201,000 | |||||||||||
Total Current | 10,560,000 | 3,336,000 | |||||||||||
Non-Current: | |||||||||||||
Net Operating Loss Carryforwards (NOLs) | 316,266,000 | 256,473,000 | |||||||||||
Derivative Instruments | - | 295,000 | |||||||||||
Other | 69,000 | 65,000 | |||||||||||
Total Non-Current | 316,335,000 | 256,833,000 | |||||||||||
Total Deferred Tax Asset | $ | 326,895,000 | $ | 260,169,000 | |||||||||
Deferred Tax Liabilities | |||||||||||||
Current: | |||||||||||||
Derivative Instruments | - | (1,538,000 | ) | ||||||||||
Other | (129,000 | ) | (103,000 | ) | |||||||||
Total Current | $ | (129,000 | ) | $ | (1,641,000 | ) | |||||||
Non-Current: | |||||||||||||
Crude Oil and Natural Gas Properties and Other Property | (432,596,000 | ) | (333,008,000 | ) | |||||||||
Derivative Instruments | (413,000 | ) | - | ||||||||||
Total Non-Current | (433,009,000 | ) | (333,008,000 | ) | |||||||||
Total Deferred Tax Liability | (433,138,000 | ) | (334,649,000 | ) | |||||||||
Total Net Deferred Tax Liability | $ | (106,243,000 | ) | $ | (74,480,000 | ) | |||||||
OPERATING_LEASES_Tables
OPERATING LEASES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
OPERATING LEASES [Abstract] | ' | ||||
Minimum future lease payments | ' | ||||
The Company has prepaid the last three months rent in the amount of $53,553. Minimum future lease payments under the building leases are as follows: | |||||
Year Ended December 31, | Amount | ||||
2014 | $ | 278,000 | |||
2015 | 177,000 | ||||
Total | $ | 455,000 |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
FAIR VALUE [Abstract] | ' | ||||||||||||
Financial instruments measured at fair value on recurring basis | ' | ||||||||||||
The following schedule summarizes the valuation of financial instruments measured at fair value on a recurring basis in the balance sheet as of December 31, 2013 and 2012. | |||||||||||||
Fair Value Measurements at | |||||||||||||
December 31, 2013 Using | |||||||||||||
Quoted Prices In Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||
Commodity Derivatives – Current Asset (crude oil swaps and collars) | $ | - | $ | 62,890 | $ | - | |||||||
Commodity Derivatives – Current Liability (crude oil swaps and collars) | - | (19,119,646 | ) | - | |||||||||
Commodity Derivatives – Non-Current Asset (crude oil swaps and collars) | - | 1,745,405 | - | ||||||||||
Commodity Derivatives – Non-Current Liability (crude oil swaps and collars | - | (637,208 | ) | - | |||||||||
Total | - | $ | (17,948,559 | ) | $ | - | |||||||
Fair Value Measurements at | |||||||||||||
December 31, 2012 Using | |||||||||||||
Quoted Prices In Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||
Commodity Derivatives – Current Asset (crude oil swaps and collars) | $ | - | $ | 4,095,197 | $ | - | |||||||
Commodity Derivatives – Non-Current Asset (crude oil swaps and collars) | - | 1,763,008 | - | ||||||||||
Commodity Derivatives – Non-Current Liability (crude oil swaps and collars | - | (2,547,745 | ) | - | |||||||||
Total | $ | - | $ | 3,310,460 | $ | - |
DERIVATIVE_INSTRUMENTS_AND_PRI1
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT [Abstract] | ' | ||||||||||||||
Open Commodity Swap Contracts | ' | ||||||||||||||
The following table reflects open commodity swap contracts as of December 31, 2013, the associated volumes and the corresponding fixed price. | |||||||||||||||
Settlement Period | Oil (Barrels) | Fixed Price | |||||||||||||
Swaps-Crude Oil | |||||||||||||||
01/01/14 – 06/30/14 | 300,000 | $ | 89.5 | ||||||||||||
01/01/14 – 06/30/14 | 240,000 | 90 | |||||||||||||
01/01/14 – 06/30/14 | 240,000 | 100 | |||||||||||||
01/01/14 – 12/31/14 | 240,000 | 91.65 | |||||||||||||
01/01/14 – 12/31/14 | 345,000 | 88.55 | |||||||||||||
01/01/14 – 12/31/14 | 345,000 | 88.6 | |||||||||||||
01/01/14 – 12/31/14 | 345,000 | 88.4 | |||||||||||||
01/01/14 – 12/31/14 | 345,000 | 88.5 | |||||||||||||
01/01/14 – 12/31/14 | 120,000 | 91.35 | |||||||||||||
01/01/14 – 12/31/14 | 120,000 | 90 | |||||||||||||
01/01/14 – 12/31/14 | 240,000 | 90.15 | |||||||||||||
01/01/14 – 12/31/14 | 240,000 | 91 | |||||||||||||
01/01/14 – 12/31/14 | 120,000 | 93 | |||||||||||||
07/01/14 – 12/31/14 | 120,000 | 90 | |||||||||||||
07/01/14 – 12/31/14 | 120,000 | 90 | |||||||||||||
07/01/14 – 12/31/14 | 120,000 | 93.5 | |||||||||||||
07/01/14 – 12/31/14 | 30,000 | 90.58 | |||||||||||||
01/01/14 – 06/30/15 | 480,000 | 89.15 | |||||||||||||
01/01/15 – 06/30/15 | 60,000 | 90.5 | |||||||||||||
01/01/15 – 06/30/15 | 180,000 | 88.55 | |||||||||||||
01/01/15 – 06/30/15 | 180,000 | 88 | |||||||||||||
01/01/15 – 06/30/15 | 60,000 | 90.75 | |||||||||||||
01/01/15 – 06/30/15 | 60,000 | 90.25 | |||||||||||||
01/01/15 – 06/30/15 | 90,000 | 89 | |||||||||||||
01/01/15 – 06/30/15 | 90,000 | 89 | |||||||||||||
01/01/15 – 12/31/15 | 720,000 | 89 | |||||||||||||
01/01/15 – 12/31/15 | 360,000 | 89 | |||||||||||||
01/01/15 – 12/31/15 | 360,000 | 89.02 | |||||||||||||
01/01/15 – 12/31/15 | 180,000 | 89 | |||||||||||||
01/01/15 – 12/31/15 | 180,000 | 89 | |||||||||||||
Schedule of weighted average price of open commodity derivative contracts | ' | ||||||||||||||
The following table reflects the weighted average price of open commodity derivative contracts as of December 31, 2013, by year with associated volumes. | |||||||||||||||
Weighted Average Price | |||||||||||||||
Of Open Commodity Swap Contracts | |||||||||||||||
Year | Volumes (Bbl) | Weighted | |||||||||||||
Average Price | |||||||||||||||
2014 | 3,750,000 | $ | 90.46 | ||||||||||||
2015 | 2,880,000 | 89.02 | |||||||||||||
Open costless collar futures agreements | ' | ||||||||||||||
In addition to the open commodity swap contracts the Company has entered into costless collars. The costless collars are used to establish floor and ceiling prices on anticipated crude oil production. There were no premiums paid or received by the Company related to the costless collar agreements. The following table reflects open costless collar agreements as of December 31, 2013. | |||||||||||||||
Term | Oil (Barrels) | Floor/Ceiling Price | Basis | ||||||||||||
Costless Collars – Crude Oil | |||||||||||||||
01/01/14 – 12/31/14 | 240,000 | $ | 90.00/$99.05 | NYMEX | |||||||||||
Derivatives Instruments Balance Sheet Location | ' | ||||||||||||||
The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at December 31, 2013 and 2012, respectively. Certain amounts may be presented on a net basis on the consolidated financial statements when such amounts are with the same counterparty and subject to a master netting arrangement: | |||||||||||||||
December 31, | |||||||||||||||
Estimated Fair Value | |||||||||||||||
Type of Crude Oil Contract | Balance Sheet Location | 2013 | 2012 | ||||||||||||
Derivative Assets: | |||||||||||||||
Swap Contracts | Current assets/liabilities | $ | 62,890 | $ | 680,647 | ||||||||||
Swap Contracts | Non-current assets | 1,745,405 | 1,977,722 | ||||||||||||
Costless Collars | Current assets/liabilities | - | 11,769,415 | ||||||||||||
Costless Collars | Non-current asset/liabilities | - | 5,629,996 | ||||||||||||
Total Derivative Assets | $ | 1,808,295 | $ | 20,057,780 | |||||||||||
Derivative Liabilities: | |||||||||||||||
Swap Contracts | Current assets/liabilities | $ | (19,111,820 | ) | $ | (2,037,070 | ) | ||||||||
Swap Contracts | Non-current assets | (637,208 | ) | (3,170,945 | ) | ||||||||||
Costless Collars | Current assets/liabilities | (7,826 | ) | (6,317,795 | ) | ||||||||||
Costless Collars | Non-current assets/liabilities | - | (5,221,510 | ) | |||||||||||
Total Derivative Liabilities | $ | (19,756,854 | ) | $ | (16,747,320 | ) | |||||||||
Gain (Loss) in Statement of Income | ' | ||||||||||||||
The following disclosures are applicable to the Company’s financial statements, as of December 31, 2013, 2012 and 2011: | |||||||||||||||
Derivative Type | Location of Loss for Effective and Ineffective Portion of Derivative in Income | Amount of Loss Reclassified from AOCI into Income | |||||||||||||
Year Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Commodity – Cash Flow | Loss on Settled Derivatives | $ | - | $ | 101,309 | $ | 1,157,775 | ||||||||
Schedule of fair value of offsetting assets and liabilities | ' | ||||||||||||||
The tables presented below provide reconciliation between the gross assets and liabilities and the amounts reflected on the balance sheet. The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates. | |||||||||||||||
Estimated Fair Value at December 31, 2013 | |||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets Presented in the Balance Sheet | |||||||||||||
Offsetting of Derivative Assets: | |||||||||||||||
Current Assets | $ | 629,178 | $ | (566,288 | ) | $ | 62,890 | ||||||||
Non-Current Assets | 2,589,079 | (843,674 | ) | 1,745,405 | |||||||||||
Total Derivative Assets | $ | 3,218,257 | $ | (1,409,962 | ) | $ | 1,808,295 | ||||||||
Offsetting of Derivative Liabilities: | |||||||||||||||
Current Liabilities | $ | (19,685,934 | ) | $ | 566,288 | $ | (19,119,646 | ) | |||||||
Non-Current Liabilities | (1,480,882 | ) | 843,674 | (637,208 | ) | ||||||||||
Total Derivative Liabilities | $ | (21,166,816 | ) | $ | 1,409,962 | $ | (19,756,854 | ) | |||||||
Estimated Fair Value at December 31, 2012 | |||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Balance Sheet | Net Amounts of Assets Presented in the Balance Sheet | |||||||||||||
Offsetting of Derivative Assets: | |||||||||||||||
Current Assets | $ | 12,450,062 | $ | (8,354,865 | ) | $ | 4,095,197 | ||||||||
Non-Current Assets | 7,607,718 | (5,844,710 | ) | 1,763,008 | |||||||||||
Total Derivative Assets | $ | 20,057,780 | $ | (14,199,575 | ) | $ | 5,858,205 | ||||||||
Offsetting of Derivative Liabilities: | |||||||||||||||
Current Liabilities | $ | (8,354,865 | ) | $ | 8,354,865 | $ | - | ||||||||
Non-Current Liabilities | (8,392,455 | ) | 5,844,710 | (2,547,745 | ) | ||||||||||
Total Derivative Liabilities | $ | (16,747,320 | ) | $ | 14,199,575 | $ | (2,547,745 | ) | |||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Calculation of earnings per share | ' | ||||||||||||||||||||||||||||||||||||
The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the years ended December 31, 2013, 2012, and 2011: | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Net | Shares | Per Share | Net | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||||||||||||||||||
Income | Income | ||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 53,067,036 | 62,364,957 | $ | 0.85 | $ | 72,284,624 | 62,485,836 | $ | 1.16 | $ | 40,611,492 | 61,789,289 | $ | 0.66 | ||||||||||||||||||||||
Dilutive Effect of Options | - | 382,341 | - | - | 383,243 | (0.01 | ) | - | 406,051 | (0.01 | ) | ||||||||||||||||||||||||||
Diluted EPS | $ | 53,067,036 | 62,747,298 | $ | 0.85 | $ | 72,284,624 | 62,869,079 | $ | 1.15 | $ | 40,611,492 | 62,195,340 | $ | 0.65 |
ORGANIZATION_AND_NATURE_OF_BUS1
ORGANIZATION AND NATURE OF BUSINESS (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
acre | acre | |
ORGANIZATION AND NATURE OF BUSINESS [Abstract] | ' | ' |
Percentage of mineral rights developed (in hundredths) | 58.00% | 50.00% |
Gas and oil acreage net mineral rights (in acres) | 187,044 | 179,131 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash and Cash Equivalents [Abstract] | ' | ' | ' |
Threshold amount of FDIC coverage | $250,000 | ' | ' |
Accounts Receivable [Abstract] | ' | ' | ' |
Allowance for doubtful accounts | 1,050,000 | 0 | ' |
Provision for doubtful accounts | 1,050,000 | 0 | 0 |
Advance to Operators [Abstract] | ' | ' | ' |
Period for advance payments to be applied against joint interest billings | '90 days | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | 325,859 | 409,888 | 298,137 |
Full Cost Method [Abstract] | ' | ' | ' |
Capitalized Certain Payroll and Other Internal Costs | 3,295,427 | 8,477,678 | 16,952,995 |
Capitalized Interest Cost | 5,976,981 | 5,929,473 | 405,984 |
Total | 9,272,408 | 14,407,151 | 17,358,979 |
Minimum percentage of proved reserves sold to be considered a significant alteration (in hundredths) | 25.00% | ' | ' |
Proceeds from sale of oil and gas properties | 0 | 908,000 | 5,000,000 |
Capitalized costs related to expired leases subject to depletion | 14,100,000 | 7,100,000 | 9,000,000 |
Discount rate (in hundredths) | 10.00% | ' | ' |
Debt Issuance Costs [Abstract] | ' | ' | ' |
Amortization of debt issuance costs | 2,625,240 | 1,527,194 | 430,760 |
Rate of Senior notes (in hundredths) | 8.00% | ' | ' |
Amortization of bond premium | 960,177 | 0 | 0 |
Income Taxes [Abstract] | ' | ' | ' |
Valuation allowance | 0 | 0 | 0 |
Net Income Per Common Share [Abstract] | ' | ' | ' |
Weighted average number of common shares outstanding-basic (in shares) | 62,364,957 | 62,485,836 | 61,789,289 |
Plus: Potentially dilutive common shares [Abstract] | ' | ' | ' |
Stock options, warrants, and restricted stock (in shares) | 382,341 | 383,243 | 406,051 |
Weighted average number of common shares outstanding-diluted (in shares) | 62,747,298 | 62,869,079 | 62,195,340 |
Restricted stock excluded from EPS due to the anti-dilutive effect (in shares) | 7,330 | 18,348 | 29,876 |
Impairment [Abstract] | ' | ' | ' |
Asset Impairment Charges | 0 | 0 | 0 |
Stock Options [Member] | ' | ' | ' |
Plus: Potentially dilutive common shares [Abstract] | ' | ' | ' |
Stock options, warrants, and restricted stock (in shares) | 241,872 | 251,963 | 262,463 |
Exercise price (in dollars per share) | $5.18 | $5.18 | $5.18 |
Restricted Stock [Member] | ' | ' | ' |
Plus: Potentially dilutive common shares [Abstract] | ' | ' | ' |
Stock options, warrants, and restricted stock (in shares) | 592,565 | 777,437 | 1,216,992 |
Restricted stock excluded from EPS due to the anti-dilutive effect (in shares) | 7,330 | 18,348 | ' |
Warrants [Member] | ' | ' | ' |
Plus: Potentially dilutive common shares [Abstract] | ' | ' | ' |
Stock options, warrants, and restricted stock (in shares) | ' | ' | 300,000 |
Exercised price of warrants (in dollars per share) | ' | ' | $5 |
Senior Unsecured Notes [Member] | ' | ' | ' |
Debt Issuance Costs [Abstract] | ' | ' | ' |
Capitalized costs in connection with debt | $10,500,000 | ' | ' |
Rate of Senior notes (in hundredths) | 8.00% | ' | ' |
Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, estimated useful lives | '7 years | ' | ' |
CRUDE_OIL_AND_NATURAL_GAS_PROP2
CRUDE OIL AND NATURAL GAS PROPERTIES (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2011 | Dec. 31, 2012 | |
acre | acre | 2011 Acquisitions [Member] | 2012 Acquisitions [Member] | 2013 Acquisitions [Member] | Anvil Project [Member] | North Dakota and Montana properties [Member] | |||
acre | acre | acre | PlannedWells | acre | |||||
PlannedWells | |||||||||
Acquisitions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures incurred but not yet paid | $163,000,000 | $92,000,000 | ' | ' | ' | ' | ' | ' | ' |
Mineral acres acquired, net (in acres) | ' | ' | ' | ' | 43,239 | 17,590 | 20,900 | ' | ' |
Average acquisition cost per net acre | ' | ' | ' | ' | 1,832 | 1,788 | 1,279 | ' | ' |
Productive oil and gas wells number of wells gross | ' | ' | ' | ' | ' | ' | 70 | ' | ' |
Productive oil and gas wells number of wells net | ' | ' | ' | ' | ' | ' | 7 | ' | ' |
Productive Oil and Gas Wells, Cost | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' |
Number of acres earned through farm-in arrangements (in acres) | ' | ' | ' | ' | ' | 6,450 | ' | ' | ' |
Divestitures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of oil and gas properties | 908,000 | 0 | 5,027,162 | ' | ' | ' | ' | 5,000,000 | 900,000 |
Cost basis of oil and gas properties sold | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' |
Wells drilled and completed | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Gas and Oil acreage, net acres sold | ' | ' | ' | ' | ' | ' | ' | ' | 835 |
Unproved Properties [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unproven leasehold interests (in net acres) | 60,600 | 63,000 | ' | ' | ' | ' | ' | ' | ' |
Anticipated future period over which excluded costs will become subject to depletion | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization, Period Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property Acquisition | 19,608,861 | 18,629,120 | 33,133,410 | ' | ' | ' | ' | ' | ' |
Development | 0 | 193,017 | 0 | ' | ' | ' | ' | ' | ' |
Total | 19,608,861 | 18,822,137 | 33,133,410 | ' | ' | ' | ' | ' | ' |
Capitalized Costs of Unproved Properties Excluded from Amortization, Cumulative [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property Acquisition, Cumulative | ' | ' | ' | 30,971,709 | ' | ' | ' | ' | ' |
Development, Cumulative | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Total, Cumulative | ' | ' | ' | $30,971,709 | ' | ' | ' | ' | ' |
REVOLVING_CREDIT_FACILITY_AND_1
REVOLVING CREDIT FACILITY AND LONG TERM DEBT (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ' |
Rate of Senior unsecured notes (in hundredths) | 8.00% |
Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Revolving credit facility, maximum borrowing | $750 |
Borrowing base | 450 |
Borrowings under Credit Facility | 75 |
Remaining borrowing capacity of Credit Facility | 375 |
Percent of total additional permitted borrowing (in hundredths) | 25.00% |
Permitted additional indebtedness | 500 |
Revolving credit facility, maturity date | 30-Sep-18 |
Credit Facility interest rate description | 'Borrowings under the Revolving Credit Facility can either be at the Alternate Base Rate (as defined) plus a spread ranging from 0.5% to 1.5% or LIBOR borrowings at the Adjusted LIBOR Rate (as defined) plus a spread ranging from 1.5% to 2.5%. The applicable spread at any time is dependent upon the amount of borrowings relative to the borrowing base at such time. The Company may elect, from time to time, to convert all or any part of its LIBOR loans to base rate loans or to convert all or any of the base rate loans to LIBOR loans. A commitment fee is paid on the undrawn balance based on an annual rate of either 0.375% or 0.50%. At December 31, 2013, the commitment fee was 0.375% and the interest rate margin was 1.5% on LIBOR loans and 0.5% on base rate loans. |
Commitment fee, description | 'A commitment fee is paid on the undrawn balance based on an annual rate of either 0.375% or 0.50%. |
Credit facility covenants | 'The Revolving Credit Facility contains negative covenants that limit the Companybs ability, among other things, to pay any cash dividends, incur additional indebtedness, sell assets, enter into certain hedging contracts, change the nature of its business or operations, merge, consolidate, or make investments. In addition, the Company is required to maintain a current ratio (as defined in the credit agreement) of no less than 1.0 to 1.0. |
Line Of Credit Facility Covenant Terms Current Ratio | 1 |
Minimum [Member] | Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Commitment fee percentage (in hundredths) | 0.38% |
Maximum [Member] | Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Commitment fee percentage (in hundredths) | 0.50% |
8.000% Senior Notes Due 2020 [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Principal amount of Senior unsecured notes | 300 |
Rate of Senior unsecured notes (in hundredths) | 8.00% |
Maturity date | 1-Jun-20 |
Price of Senior unsecured notes (in hundredths) | 105.25% |
Additional amount of Senior unsecured notes | 200 |
Net proceeds from issuance of Senior unsecured notes | 291.2 |
Additional net proceeds from issuance of Senior unsecured notes | 200.1 |
Percentage of notes that can be redeemed (in hundredths) | 35.00% |
Rate of redemption price of notes (in hundredths) | 108.00% |
Limitation (in number of days) to redeemed the notes | '180 days |
Limitation (in percentage of aggregate principal amount of Notes) to redeemed the notes | 65.00% |
Percentage of notes at redemption prices for prior to June 1, 2016 (in hundredths) | 100.00% |
Percentage of notes at redemption prices for the twelve-month period beginning on June 1, 2016 (in hundredths) | 104.00% |
Percentage of notes at redemption prices for the twelve-month period beginning on June 1, 2017 (in hundredths) | 102.00% |
Percentage of notes at redemption prices for beginning on June 1, 2018 (in hundredths) | 100.00% |
Number of days in default payment of interest | '30 days |
Payment of certain final judgments | $25 |
Number of days related to payment certain final judgments | '60 days |
LIBOR Loans [Member] | Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate margin in effect during period (in hundredths) | 1.50% |
Commitment fee percentage (in hundredths) | 0.38% |
LIBOR Loans [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate margin in effect during period (in hundredths) | 1.50% |
LIBOR Loans [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate margin in effect during period (in hundredths) | 2.50% |
Alternate Base Rate Loans [Member] | Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate margin in effect during period (in hundredths) | 0.50% |
Alternate Base Rate Loans [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate margin in effect during period (in hundredths) | 0.50% |
Alternate Base Rate Loans [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Interest rate margin in effect during period (in hundredths) | 1.50% |
COMMON_AND_PREFERRED_STOCK_Det
COMMON AND PREFERRED STOCK (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Class | |||
COMMON AND PREFERRED STOCK [Abstract] | ' | ' | ' |
Total shares of preferred and common stock authorized for issuance (in shares) | 100,000,000 | ' | ' |
Number of classes of shares | 2 | ' | ' |
Common stock, shares authorized (in shares) | 95,000,000 | 95,000,000 | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | ' |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | ' |
Changes in number of common stock shares [Roll forward] | ' | ' | ' |
Beginning Balance (in shares) | 63,532,622 | 63,330,421 | 62,129,424 |
Stock Based Compensation (in shares) | 57,371 | 53,140 | 161,628 |
Stock Options Exercised (in shares) | 10,091 | 10,500 | 3,500 |
Restricted Stock Grants (in shares) | 353,596 | 837,239 | 786,263 |
Warrants Exercised (in shares) | 0 | 0 | 300,000 |
Stock Repurchase | -2,036,383 | 0 | ' |
Other Surrenders (in shares) | -59,098 | -698,678 | -50,394 |
Ending balance (in shares) | 61,858,199 | 63,532,622 | 63,330,421 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock Based Compensation (in shares) | 57,371 | 53,140 | 161,628 |
Stock options exercised (in shares) | 10,091 | 10,500 | 3,500 |
Fair value of common stock issued, share based compensation | ' | $1,300,000 | $4,300,000 |
Stock Activity [Abstract] | ' | ' | ' |
Common stock surrendered by certain employees to cover tax obligations (in shares) | 16,585 | 70,128 | 50,394 |
Fair value of common stock surrendered by certain employees to cover tax obligations | 253,000 | 1,500,000 | 1,100,000 |
Common stock surrendered by certain employees related to termination of employment (in shares) | 39,049 | 628,550 | ' |
Proceeds from warrants exercised | ' | ' | 1,500,000 |
Share-based compensation, market value of common stock issued, minimum (in dollars per share) | ' | $19.34 | $17.81 |
Share-based compensation, market value of common stock issued, maximum (in dollars per share) | ' | $24.89 | $27.98 |
Share-based compensation expense | ' | 500,000 | 1,400,000 |
Stock Repurchase Program [Abstract] | ' | ' | ' |
Stock repurchase program, amount approved | 150,000,000 | ' | ' |
Treasury stock, repurchased and retired | 26,100,000 | ' | ' |
Director [Member] | ' | ' | ' |
Changes in number of common stock shares [Roll forward] | ' | ' | ' |
Stock Options Exercised (in shares) | 10,091 | 10,500 | 3,500 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock options exercised (in shares) | 10,091 | 10,500 | 3,500 |
Shares surrendered to cover aggregate exercise price | 3,464 | ' | ' |
Aggregate exercise price of stock surrendered | 52,000 | ' | ' |
Chief Executive Officer [Member] | ' | ' | ' |
Changes in number of common stock shares [Roll forward] | ' | ' | ' |
Stock Based Compensation (in shares) | 57,371 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock Based Compensation (in shares) | 57,371 | ' | ' |
Fair value of common stock issued, share based compensation | $825,000 | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Gallatin [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Percentage interest that one of the Company's directors owned (in hundredths) | 25.00% | ' | ' |
Payments to related parties | $0 | $500 | $6,500 |
Emerald [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Percentage interest that one of the Company's directors owned (in hundredths) | 5.00% | ' | ' |
Number of producing wells, gross | 14 | ' | ' |
Number of producing wells, net | 3.1 | ' | ' |
Number of drilling or awaiting completion wells, gross | 3 | ' | ' |
Number of drilling or awaiting completion wells, net | 0.7 | ' | ' |
Number of producing and drilling wells, gross | 17 | ' | ' |
Estimated total drilling and completion cost of wells | 176,000,000 | ' | ' |
Estimated total drilling and completion cost of wells attributable to entity | 40,000,000 | ' | ' |
Accounts receivable from related parties | 4,600,000 | 0 | ' |
Accounts payable to related parties | 23,200,000 | 0 | ' |
Revenue from related party transactions | $7,800,000 | $0 | $0 |
STOCK_OPTIONSSTOCKBASED_COMPEN2
STOCK OPTIONS/STOCK-BASED COMPENSATION AND WARRANTS (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 27, 2009 | |
2013 Equity Incentive Plan [Member] | Directors [Member] | Directors [Member] | Directors [Member] | Restricted Stock Awards [Member] | Restricted Stock Awards [Member] | Restricted Stock Awards [Member] | Stock Option Awards [Member] | Stock Option Awards [Member] | Stock Option Awards [Member] | Stock Option Awards [Member] | Stock Option Awards [Member] | Stock Option Awards [Member] | CIT Warrants [Member] | ||||
2006 Incentive Stock Option Plan [Member] | Directors [Member] | Employee [Member] | |||||||||||||||
2006 Incentive Stock Option Plan [Member] | 2006 Incentive Stock Option Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares were authorized for grant (in shares) | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock Awards [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | ' | ' | ' | $5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of forfeiture rate assumed for restricted stock (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock Awards Activity [Roll forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Shares Outstanding at the Beginning of the Year (in shares) | ' | ' | ' | ' | ' | ' | ' | 777,437 | 1,216,992 | 1,135,622 | 0 | 0 | ' | ' | ' | ' | ' |
Shares Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | 353,596 | 837,239 | 786,263 | ' | ' | ' | ' | ' | ' | ' |
Shares Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | -39,049 | -628,550 | 0 | ' | ' | ' | ' | ' | ' | ' |
Lapse of Restrictions (in shares) | ' | ' | ' | ' | ' | ' | ' | -499,419 | -648,244 | -704,893 | ' | ' | ' | ' | ' | ' | ' |
Restricted Shares Outstanding at the End of the Year (in shares) | ' | ' | ' | ' | ' | ' | ' | 592,565 | 777,437 | 1,216,992 | 0 | 0 | 0 | ' | ' | ' | ' |
Restricted Stock Awards, Additional Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Shares Outstanding, Weighted-Average Price at the Beginning of the Year (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $18.93 | $19.87 | $13.28 | ' | ' | ' | ' | ' | ' | ' |
Shares Granted, Weighted-Average Price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $15.33 | $19.91 | $27.11 | ' | ' | ' | ' | ' | ' | ' |
Shares Forfeited, Weighted-Average Price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $16.78 | $19.08 | $0 | ' | ' | ' | ' | ' | ' | ' |
Lapse of Restrictions, Weighted-Average Price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $19.03 | $21.83 | $17.32 | ' | ' | ' | ' | ' | ' | ' |
Restricted Shares Outstanding, Weighted-Average Price at the End of the Year (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $16.84 | $18.93 | $19.87 | ' | ' | ' | ' | ' | ' | ' |
Stock Option Awards [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 560,000 | 500,000 | 60,000 | ' |
Shares granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $5.18 | ' | ' | ' |
Number of Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 251,963 | 262,463 | 265,963 | ' | ' | ' | ' |
Shares granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 560,000 | 500,000 | 60,000 | ' |
Exercised (in shares) | -10,091 | -10,500 | -3,500 | ' | -10,091 | -10,500 | -3,500 | ' | ' | ' | -10,091 | -10,500 | -3,500 | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' |
Outstanding at period end (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 241,872 | 251,963 | 262,463 | ' | ' | ' | ' |
Exercisable (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 241,872 | 251,963 | 262,463 | ' | ' | ' | ' |
Ending Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 241,872 | 251,963 | 262,463 | ' | ' | ' | ' |
Weighted Average Exercise Price [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.18 | $5.18 | $5.18 | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' |
Outstanding at period end (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.18 | $5.18 | $5.18 | ' | ' | ' | ' |
Exercisable (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.18 | $5.18 | $5.18 | ' | ' | ' | ' |
Ending Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.18 | $5.18 | $5.18 | ' | ' | ' | ' |
Weighted Average Fair Value of Options Granted During Year (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $5.18 | ' | ' | ' |
Remaining Contractual Term [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at period end (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 9 months 18 days | '4 years 9 months 18 days | '5 years 9 months 18 days | ' | ' | ' | ' |
Exercisable (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 9 months 18 days | '4 years 9 months 18 days | '5 years 9 months 18 days | ' | ' | ' | ' |
Ending Vested (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years 9 months 18 days | '4 years 9 months 18 days | '5 years 9 months 18 days | ' | ' | ' | ' |
Intrinsic Value [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,392,000 | 2,933,000 | 4,934,000 | ' | ' | ' | ' |
Exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,392,000 | 2,933,000 | 4,934,000 | ' | ' | ' | ' |
Ending Vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,392,000 | 2,933,000 | 4,934,000 | ' | ' | ' | ' |
Currently Outstanding Options [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options expired during period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' |
Share-based compensation expense | ' | $500,000 | $1,400,000 | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' |
Unvested options outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | 592,565 | 777,437 | 1,216,992 | 0 | 0 | 0 | ' | ' | ' | ' |
Warrants Granted February 2009 [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants issued in conjunction with prior credit facility (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 |
Exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 |
COMMITMENTS_CONTINGENCIES_Deta
COMMITMENTS & CONTINGENCIES (Details) (USD $) | 12 Months Ended | 66 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
COMMITMENTS & CONTINGENCIES [Abstract] | ' | ' | ' | ' |
Estimated reversal of revenue | $0.30 | $0.20 | $0.20 | $1.50 |
ASSET_RETIREMENT_OBLIGATION_De
ASSET RETIREMENT OBLIGATION (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
ASSET RETIREMENT OBLIGATION [Abstract] | ' | ' |
Increase in ARO | $1,100,000 | ' |
Increase in ARO (in hundredths) | 71.00% | ' |
Asset retirement obligation [Roll Forward] | ' | ' |
Beginning Asset Retirement Obligation | 1,542,542 | 916,622 |
Liabilities Incurred for New Wells Placed in Production | 755,484 | 539,727 |
Revision of Estimates | 1,097,097 | 0 |
Accretion of Discount on Asset Retirement Obligations | 428,879 | 86,193 |
Ending Asset Retirement Obligation | $3,824,002 | $1,542,542 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
INCOME TAXES [Abstract] | ' | ' | ' | ' |
Decrease in deferred state income tax expense | $500,000 | ' | ' | ' |
Income tax provision [Abstract] | ' | ' | ' | ' |
Current Income Taxes | -8,386 | 17,772 | 2,300 | ' |
Deferred Income Taxes [Abstract] | ' | ' | ' | ' |
Federal | 29,826,000 | 39,850,000 | 22,982,000 | ' |
State | 1,950,000 | 3,134,000 | 3,851,000 | ' |
Total Expense | 31,767,614 | 43,001,772 | 26,835,300 | ' |
Reconciliation of reported amount of income tax expense (benefit) [Abstract] | ' | ' | ' | ' |
Income Before Taxes and NOL | 84,834,650 | 115,286,396 | 67,446,792 | ' |
Federal Statutory Rate (in hundredths) | 35.00% | 35.00% | 35.00% | ' |
Taxes Computed at Federal Statutory Rates | 29,692,000 | 40,350,000 | 23,606,000 | ' |
State Taxes, Net of Federal Taxes | 909,614 | 2,086,772 | 2,408,300 | ' |
Executive Compensation Deductibility Limits | 987,000 | 523,000 | 617,000 | ' |
Other | 179,000 | 42,000 | 204,000 | ' |
Total Expense | 31,767,614 | 43,001,772 | 26,835,300 | ' |
Deferred Tax Assets [Abstract] | ' | ' | ' | ' |
Total Deferred Tax Asset | 326,895,000 | 260,169,000 | ' | ' |
Deferred Tax Liabilities [Abstract] | ' | ' | ' | ' |
Total Non-Current | 116,674,000 | 76,175,000 | ' | ' |
Total Deferred Tax Liability | -433,138,000 | -334,649,000 | ' | ' |
Total Net Deferred Tax Liability | -106,243,000 | -74,480,000 | ' | ' |
Minimum Amount Tax Benefits Likely Realized Upon Settlement Percentage (in hundredths) | 50.00% | ' | ' | ' |
Unrecognized tax benefits | 0 | ' | ' | ' |
Unrecognized tax benefits, income tax penalties and interest expense | 0 | 0 | 0 | ' |
Unrecognized tax benefits, interest and penalties accrued | 0 | 0 | ' | ' |
Increase in prior period balance of deferred tax asset for net operating losses | ' | 62,000,000 | ' | ' |
Increase in prior period balance of deferred tax liability for crude oil and natural gas properties and other property | ' | 62,000,000 | ' | ' |
Open tax years | '2013 | '2012 | '2011 | '2010 |
Current [Member] | ' | ' | ' | ' |
Deferred Tax Assets [Abstract] | ' | ' | ' | ' |
Share Based Compensation | 1,834,000 | 2,384,000 | ' | ' |
Accrued Interest | 1,241,000 | 751,000 | ' | ' |
Derivative Instruments | 7,094,000 | 0 | ' | ' |
Other | 391,000 | 201,000 | ' | ' |
Total Current | 10,560,000 | 3,336,000 | ' | ' |
Deferred Tax Liabilities [Abstract] | ' | ' | ' | ' |
Derivative Instruments | 0 | -1,538,000 | ' | ' |
Other | -129,000 | -103,000 | ' | ' |
Total Current | -129,000 | -1,641,000 | ' | ' |
Non-Current [Member] | ' | ' | ' | ' |
Deferred Tax Assets [Abstract] | ' | ' | ' | ' |
Derivative Instruments | 0 | 295,000 | ' | ' |
Other | 69,000 | 65,000 | ' | ' |
Net Operating Loss Carryforwards (NOLs) | 316,266,000 | 256,473,000 | ' | ' |
Total Non-Current | 316,335,000 | 256,833,000 | ' | ' |
Deferred Tax Liabilities [Abstract] | ' | ' | ' | ' |
Derivative Instruments | -413,000 | 0 | ' | ' |
Crude Oil and Natural Gas Properties and Other Property | -432,596,000 | -333,008,000 | ' | ' |
Total Non-Current | -433,009,000 | -333,008,000 | ' | ' |
Federal [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net operating loss carryforward | $850,100,000 | ' | ' | ' |
Federal [Member] | Minimum [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net operating loss carryforward, expiration date | 31-Dec-27 | ' | ' | ' |
Federal [Member] | Maximum [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net operating loss carryforward, expiration date | 31-Dec-33 | ' | ' | ' |
OPERATING_LEASES_Details
OPERATING LEASES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Vehicles [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Lease expense | $28,000 | $48,000 | $63,000 |
Future minimum lease payments [Abstract] | ' | ' | ' |
2014 | 27,000 | ' | ' |
Building [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Lease expense | 249,000 | 217,000 | 150,000 |
Buildings [Abstract] | ' | ' | ' |
Total square feet of office space leased | 4,653 | ' | ' |
Number of leases | 2 | ' | ' |
Initial gross monthly lease payments | 18,612 | ' | ' |
Percentage increase on each anniversary date (in hundredths) | 4.00% | ' | ' |
Number of months rent prepaid | '3 months | ' | ' |
Lease Expiration date | 30-Nov-15 | ' | ' |
Rent paid in advance as security deposit | 53,553 | ' | ' |
Future minimum lease payments [Abstract] | ' | ' | ' |
2014 | 278,000 | ' | ' |
2015 | 177,000 | ' | ' |
Total | 455,000 | ' | ' |
Initial Building [Member] | ' | ' | ' |
Buildings [Abstract] | ' | ' | ' |
Total square feet of office space leased | 3,044 | ' | ' |
Future minimum lease payments [Abstract] | ' | ' | ' |
Landlord incentives | 91,320 | ' | ' |
Additional Building [Member] | ' | ' | ' |
Buildings [Abstract] | ' | ' | ' |
Total square feet of office space leased | 1,609 | ' | ' |
Future minimum lease payments [Abstract] | ' | ' | ' |
Landlord incentives | $58,620 | ' | ' |
FAIR_VALUE_Details
FAIR VALUE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Transfers between Level 1 and Level 2 | $0 | ' |
Fair Value, Measurements, Recurring [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity Derivatives - Current Asset (crude oil swaps and collars) | 0 | 0 |
Commodity Derivatives - Non-Current Asset (crude oil swaps and collars) | 0 | 0 |
Commodity Derivatives - Current Liability (crude oil swaps and collars) | 0 | ' |
Commodity Derivatives - Non-Current Liability (crude oil swaps and collars) | 0 | 0 |
Total | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity Derivatives - Current Asset (crude oil swaps and collars) | 62,890 | 4,095,197 |
Commodity Derivatives - Non-Current Asset (crude oil swaps and collars) | 1,745,405 | 1,763,008 |
Commodity Derivatives - Current Liability (crude oil swaps and collars) | -19,119,646 | ' |
Commodity Derivatives - Non-Current Liability (crude oil swaps and collars) | -637,208 | -2,547,745 |
Total | -17,948,559 | 3,310,460 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Commodity Derivatives - Current Asset (crude oil swaps and collars) | 0 | 0 |
Commodity Derivatives - Non-Current Asset (crude oil swaps and collars) | 0 | 0 |
Commodity Derivatives - Current Liability (crude oil swaps and collars) | 0 | ' |
Commodity Derivatives - Non-Current Liability (crude oil swaps and collars) | 0 | 0 |
Total | $0 | $0 |
FAIR_VALUE_Part_2_Details
FAIR VALUE, Part 2 (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Rate of Senior unsecured notes (in hundredths) | 8.00% | ' |
Carrying Amount [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior unsecured notes | $500 | $300 |
Revolving credit facility | 75 | 124 |
Estimated Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Senior unsecured notes | 527.5 | 310.5 |
Revolving credit facility | $75 | $124 |
DERIVATIVE_INSTRUMENTS_AND_PRI2
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Total volumes of open contracts | 6,600,000 | ' | ' |
Weighted average price on open contracts | 89.84 | ' | ' |
Oil Swap 1 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 300,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89.5 | ' | ' |
Oil Swap 1 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 1 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-14 | ' | ' |
Oil Swap 2 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 240,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90 | ' | ' |
Oil Swap 2 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 2 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-14 | ' | ' |
Oil Swap 3 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 240,000 | ' | ' |
Fixed Price (in dollars per barrel) | 100 | ' | ' |
Oil Swap 3 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 3 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-14 | ' | ' |
Oil Swap 4 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 240,000 | ' | ' |
Fixed Price (in dollars per barrel) | 91.65 | ' | ' |
Oil Swap 4 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 4 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 5 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 345,000 | ' | ' |
Fixed Price (in dollars per barrel) | 88.55 | ' | ' |
Oil Swap 5 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 5 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 6 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 345,000 | ' | ' |
Fixed Price (in dollars per barrel) | 88.6 | ' | ' |
Oil Swap 6 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 6 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 7 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 345,000 | ' | ' |
Fixed Price (in dollars per barrel) | 88.4 | ' | ' |
Oil Swap 7 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 7 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 8 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 345,000 | ' | ' |
Fixed Price (in dollars per barrel) | 88.5 | ' | ' |
Oil Swap 8 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 8 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 9 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 120,000 | ' | ' |
Fixed Price (in dollars per barrel) | 91.35 | ' | ' |
Oil Swap 9 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 9 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 10 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 120,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90 | ' | ' |
Oil Swap 10 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 10 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 11 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 240,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90.15 | ' | ' |
Oil Swap 11 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 11 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 12 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 240,000 | ' | ' |
Fixed Price (in dollars per barrel) | 91 | ' | ' |
Oil Swap 12 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 12 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 13 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 120,000 | ' | ' |
Fixed Price (in dollars per barrel) | 93 | ' | ' |
Oil Swap 13 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 13 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 14 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 120,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90 | ' | ' |
Oil Swap 14 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jul-14 | ' | ' |
Oil Swap 14 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 15 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 120,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90 | ' | ' |
Oil Swap 15 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jul-14 | ' | ' |
Oil Swap 15 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 16 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 120,000 | ' | ' |
Fixed Price (in dollars per barrel) | 93.5 | ' | ' |
Oil Swap 16 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jul-14 | ' | ' |
Oil Swap 16 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 17 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 30,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90.58 | ' | ' |
Oil Swap 17 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jul-14 | ' | ' |
Oil Swap 17 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Oil Swap 18 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 480,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89.15 | ' | ' |
Oil Swap 18 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Oil Swap 18 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-15 | ' | ' |
Oil Swap 19 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 60,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90.5 | ' | ' |
Oil Swap 19 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 19 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-15 | ' | ' |
Oil Swap 20 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 180,000 | ' | ' |
Fixed Price (in dollars per barrel) | 88.55 | ' | ' |
Oil Swap 20 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 20 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-15 | ' | ' |
Oil Swap 21 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 180,000 | ' | ' |
Fixed Price (in dollars per barrel) | 88 | ' | ' |
Oil Swap 21 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 21 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-15 | ' | ' |
Oil Swap 22 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 60,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90.75 | ' | ' |
Oil Swap 22 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 22 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-15 | ' | ' |
Oil Swap 23 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 60,000 | ' | ' |
Fixed Price (in dollars per barrel) | 90.25 | ' | ' |
Oil Swap 23 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 23 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-15 | ' | ' |
Oil Swap 24 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 90,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89 | ' | ' |
Oil Swap 24 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 24 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-15 | ' | ' |
Oil Swap 25 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 90,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89 | ' | ' |
Oil Swap 25 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 25 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 30-Jun-15 | ' | ' |
Oil Swap 26 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 720,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89 | ' | ' |
Oil Swap 26 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 26 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-15 | ' | ' |
Oil Swap 27 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 360,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89 | ' | ' |
Oil Swap 27 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 27 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-15 | ' | ' |
Oil Swap 28 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 360,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89.02 | ' | ' |
Oil Swap 28 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 28 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-15 | ' | ' |
Oil Swap 29 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 180,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89 | ' | ' |
Oil Swap 29 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 29 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-15 | ' | ' |
Oil Swap 30 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 180,000 | ' | ' |
Fixed Price (in dollars per barrel) | 89 | ' | ' |
Oil Swap 30 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-15 | ' | ' |
Oil Swap 30 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-15 | ' | ' |
Open Commodity Swap 1 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Total volumes of open contracts | 3,750,000 | ' | ' |
Weighted average price on open contracts | 90.46 | ' | ' |
Open Commodity Swap 1 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Open Commodity Swap 2 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Total volumes of open contracts | 2,880,000 | ' | ' |
Weighted average price on open contracts | 89.02 | ' | ' |
Open Commodity Swap 2 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-15 | ' | ' |
Collar 1 [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Oil (in barrels) | 240,000 | ' | ' |
Price minimum (in dollars per barrel) | 90 | ' | ' |
Price maximum (in dollars per barrel) | 99.05 | ' | ' |
Collar 1 [Member] | Minimum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 1-Jan-14 | ' | ' |
Collar 1 [Member] | Maximum [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Settlement period | 31-Dec-14 | ' | ' |
Not Designated as Hedging Instrument [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Not Designated as Hedges [Abstract] | ' | ' | ' |
Realized gain (loss) on price risk derivatives not designated as hedges | $12,200,000 | $400,000 | $13,400,000 |
Unrealized gain (loss) on price risk derivatives not designated as hedges | -21,300,000 | 15,100,000 | 3,100,000 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ' | ' | ' |
Crude Oil Derivative Contracts Cash-flow Hedge [Abstract] | ' | ' | ' |
Unrealized loss on price risk cash flow hedges designated as hedges | ' | ' | $101,000 |
DERIVATIVE_INSTRUMENTS_AND_PRI3
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT, Part 2 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Derivative Assets [Abstract] | ' | ' | ' |
Derivative Instruments | $62,890 | $4,095,197 | ' |
Derivative Assets, Noncurrent | 1,745,405 | 1,763,008 | ' |
Total Derivatives Assets | 1,808,295 | 5,858,205 | ' |
Derivative Liabilities [Abstract] | ' | ' | ' |
Derivative Liabilities, Current | -19,119,646 | 0 | ' |
Derivative Liabilities, Noncurrent | -637,208 | -2,547,745 | ' |
Total Derivatives Liabilities | -19,756,854 | -16,747,320 | ' |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ' | ' | ' |
Derivative Liabilities [Abstract] | ' | ' | ' |
Loss on settled derivatives reclassified to income | 0 | 101,309 | 1,157,775 |
Total Assets [Member] | ' | ' | ' |
Derivative Assets [Abstract] | ' | ' | ' |
Total Derivatives Assets | 1,808,295 | 20,057,780 | ' |
Swap Contracts [Member] | Current Assets/Liabilities [Member] | ' | ' | ' |
Derivative Assets [Abstract] | ' | ' | ' |
Derivative Instruments | 62,890 | 680,647 | ' |
Derivative Liabilities [Abstract] | ' | ' | ' |
Derivative Liabilities, Current | -19,111,820 | -2,037,070 | ' |
Swap Contracts [Member] | Non-Current Assets/Liabilities [Member] | ' | ' | ' |
Derivative Assets [Abstract] | ' | ' | ' |
Derivative Assets, Noncurrent | 1,745,405 | 1,977,722 | ' |
Derivative Liabilities [Abstract] | ' | ' | ' |
Derivative Liabilities, Noncurrent | -637,208 | -3,170,945 | ' |
Costless Collars [Member] | Current Assets/Liabilities [Member] | ' | ' | ' |
Derivative Assets [Abstract] | ' | ' | ' |
Derivative Instruments | 0 | 11,769,415 | ' |
Derivative Liabilities [Abstract] | ' | ' | ' |
Derivative Liabilities, Current | -7,826 | -6,317,795 | ' |
Costless Collars [Member] | Non-Current Assets/Liabilities [Member] | ' | ' | ' |
Derivative Assets [Abstract] | ' | ' | ' |
Derivative Assets, Noncurrent | 0 | 5,629,996 | ' |
Derivative Liabilities [Abstract] | ' | ' | ' |
Derivative Liabilities, Noncurrent | $0 | ($5,221,510) | ' |
DERIVATIVE_INSTRUMENTS_AND_PRI4
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT, Part 3 (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross amounts of recognized assets, offsetting derivative assets | $3,218,257 | $20,057,780 |
Gross amounts offset in the balance sheet, offsetting derivative assets | -1,409,962 | -14,199,575 |
Net amounts of assets presented in the balance sheet, offsetting derivative assets | 1,808,295 | 5,858,205 |
Gross amounts of recognized assets, offsetting derivative liabilities | -21,166,816 | -16,747,320 |
Gross amounts offset in the balance sheet, offsetting derivative liabilities | 1,409,962 | 14,199,575 |
Net amount of assets presented in balance sheet, offsetting derivative liabilities | -19,756,854 | -2,547,745 |
Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross amounts of recognized assets, offsetting derivative assets | 629,178 | 12,450,062 |
Gross amounts offset in the balance sheet, offsetting derivative assets | -566,288 | -8,354,865 |
Net amounts of assets presented in the balance sheet, offsetting derivative assets | 62,890 | 4,095,197 |
Non Current Assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross amounts of recognized assets, offsetting derivative assets | 2,589,079 | 7,607,718 |
Gross amounts offset in the balance sheet, offsetting derivative assets | -843,674 | -5,844,710 |
Net amounts of assets presented in the balance sheet, offsetting derivative assets | 1,745,405 | 1,763,008 |
Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross amounts of recognized assets, offsetting derivative liabilities | -19,685,934 | -8,354,865 |
Gross amounts offset in the balance sheet, offsetting derivative liabilities | 566,288 | 8,354,865 |
Net amount of assets presented in balance sheet, offsetting derivative liabilities | -19,119,646 | 0 |
Non Current Liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gross amounts of recognized assets, offsetting derivative liabilities | -1,480,882 | -8,392,455 |
Gross amounts offset in the balance sheet, offsetting derivative liabilities | 843,674 | 5,844,710 |
Net amount of assets presented in balance sheet, offsetting derivative liabilities | ($637,208) | ($2,547,745) |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Basic EPS [Abstract] | ' | ' | ' |
Net Income available to common shareholders | $53,067,036 | $72,284,624 | $40,611,492 |
Shares-Basic (in shares) | 62,364,957 | 62,485,836 | 61,789,289 |
Net Income per basic share (in dollars per share) | $0.85 | $1.16 | $0.66 |
Diluted EPS [Abstract] | ' | ' | ' |
Dilutive effect of options (in shares) | 382,341 | 383,243 | 406,051 |
Dilutive effect of options (in dollars per share) | $0 | ($0.01) | ($0.01) |
Net Income available to common shareholders, diluted | $53,067,036 | $72,284,624 | $40,611,492 |
Weighted average number of common shares outstanding-diluted (in shares) | 62,747,298 | 62,869,079 | 62,195,340 |
Earnings Per Share - Diluted (in dollars per share) | $0.85 | $1.15 | $0.65 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Shares excluded from EPS due to the anti-dilutive effect (in shares) | 7,330 | 18,348 | 29,876 |
Restricted Stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Shares excluded from EPS due to the anti-dilutive effect (in shares) | 7,330 | 18,348 | ' |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
EMPLOYEE BENEFIT PLANS [Abstract] | ' | ' | ' |
Percentage match of eligible employee's deferral contribution (in hundredths) | 100.00% | 100.00% | 100.00% |
Maximum percentage of eligible employee's deferral contribution matched (in hundredths) | 8.00% | 8.00% | 8.00% |
Matching contributions to the Plans | $240,000 | $189,000 | $103,000 |
SEVERANCE_ARRANGEMENTS_Details
SEVERANCE ARRANGEMENTS (Details) (USD $) | 3 Months Ended | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | |
Former President [Member] | Former President [Member] | Former President [Member] | Chief Operating Officer [Member] | |
Restricted Stock [Member] | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' |
Period of postemployment health care coverage | ' | '18 months | ' | '18 months |
Non-cash stock compensation costs | ' | ' | $4,300,000 | ' |
Estimated expenses for bonus, vehicle and continuation coverage pursuant to COBRA | 600,000 | ' | ' | ' |
Base salary considered for severance benefits to be paid | ' | ' | ' | $325,000 |