COVER PAGE
COVER PAGE - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33999 | ||
Entity Registrant Name | NORTHERN OIL AND GAS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-3848122 | ||
Entity Address, Address Line One | 4350 Baker Road | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Minnetonka | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55343 | ||
City Area Code | 952 | ||
Local Phone Number | 476-9800 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | NOG | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.9 | ||
Entity Common Stock, Shares Outstanding | 85,273,377 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement related to the registrant’s 2023 Annual Meeting of Stockholders (the “Proxy Statement”) are incorporated by reference into Part III of this report for the year ended December 31, 2022. | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Entity Central Index Key | 0001104485 |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Minneapolis, Minnesota |
BALANCE SHEETS
BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and Cash Equivalents | $ 2,528 | $ 9,519 |
Accounts Receivable, Net | 271,336 | 193,554 |
Advances to Operators | 8,976 | 6,319 |
Prepaid Expenses and Other | 2,014 | 3,417 |
Derivative Instruments | 35,293 | 2,519 |
Income Tax Receivable | 338 | 0 |
Total Current Assets | 320,485 | 215,328 |
Oil and Natural Gas Properties, Full Cost Method of Accounting | ||
Proved | 6,492,683 | 5,034,769 |
Unproved | 41,565 | 24,998 |
Other Property and Equipment | 6,858 | 2,616 |
Total Property and Equipment | 6,541,106 | 5,062,383 |
Less – Accumulated Depreciation, Depletion and Impairment | (4,058,180) | (3,809,041) |
Total Property and Equipment, Net | 2,482,926 | 1,253,342 |
Derivative Instruments | 12,547 | 1,863 |
Acquisition Deposit | 43,000 | 40,650 |
Other Noncurrent Assets, Net | 16,220 | 11,683 |
Total Assets | 2,875,178 | 1,522,866 |
Current Liabilities: | ||
Accounts Payable | 128,582 | 65,464 |
Accrued Liabilities | 121,737 | 105,590 |
Accrued Interest | 24,347 | 20,498 |
Derivative Instruments | 58,418 | 134,283 |
Contingent Consideration | 10,107 | 0 |
Other Current Liabilities | 1,781 | 1,722 |
Total Current Liabilities | 344,972 | 327,557 |
Long-term Debt, Net | 1,525,413 | 803,437 |
Derivative Instruments | 225,905 | 147,762 |
Asset Retirement Obligations | 31,582 | 25,865 |
Other Noncurrent Liabilities | 2,045 | 3,110 |
Total Liabilities | 2,129,917 | 1,307,731 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Preferred Stock, par value $0.001; 5,000,000 authorized; zero shares outstanding at 12/31/2022 2,218,732 shares outstanding at 12/31/2021 | 0 | 2 |
Common Stock, par value $0.001; 135,000,000 authorized; 85,165,807 shares outstanding at 12/31/2022 77,341,921 shares outstanding at 12/31/2021 | 487 | 479 |
Additional Paid-In Capital | 1,745,532 | 1,988,649 |
Retained Deficit | (1,000,759) | (1,773,996) |
Total Stockholders’ Equity | 745,260 | 215,135 |
Total Liabilities and Stockholders’ Equity | $ 2,875,178 | $ 1,522,866 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 2,218,732 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 135,000,000 | 135,000,000 |
Common stock, shares outstanding (in shares) | 85,165,807 | 77,341,921 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Oil and Gas Sales | $ 1,985,798,000 | $ 975,093,000 | $ 324,069,000 |
Gain (Loss) on Commodity Derivatives, Net | (415,262,000) | (478,193,000) | 228,141,000 |
Total Revenues | 1,570,535,000 | 496,899,000 | 552,210,000 |
Operating Expenses | |||
Production Expenses | 260,676,000 | 170,817,000 | 116,336,000 |
Production Taxes | 158,194,000 | 76,954,000 | 29,783,000 |
General and Administrative Expenses | 47,201,000 | 30,341,000 | 18,546,000 |
Depletion, Depreciation, Amortization and Accretion | 251,272,000 | 140,828,000 | 162,120,000 |
Impairment of Other Current Assets | 0 | ||
Impairment Expense | 0 | 0 | 1,066,668,000 |
Total Operating Expenses | 717,343,000 | 418,940,000 | 1,393,453,000 |
Income (Loss) From Operations | 853,192,000 | 77,959,000 | (841,243,000) |
Other Income (Expense) | |||
Interest Expense, Net of Capitalization | (80,331,000) | (59,020,000) | (58,503,000) |
Write-off of Debt Issuance Costs | 0 | 0 | (1,543,000) |
Gain (Loss) on Interest Rate Derivatives, Net | 993,000 | 1,043,000 | (1,019,000) |
Gain (Loss) on the Extinguishment of Debt, Net | 810,000 | (13,087,000) | (3,718,000) |
Contingent Consideration Gain (Loss) | 1,859,000 | (292,000) | (169,000) |
Other Income (Expense) | (185,000) | (9,000) | (12,000) |
Total Other Income (Expense) | (76,854,000) | (71,365,000) | (64,964,000) |
Income (Loss) Before Income Taxes | 776,338,000 | 6,594,000 | (906,207,000) |
Income Tax Expense (Benefit) | 3,101,000 | 233,000 | (166,000) |
Net Income (Loss) | 773,237,000 | 6,361,000 | (906,041,000) |
Cumulative Preferred Stock Dividend | (9,803,000) | (14,761,000) | (15,266,000) |
Premium on Repurchase of Preferred Stock | (35,731,000) | 0 | 0 |
Net Income (Loss) Attributable to Common Stockholders | $ 727,703,000 | $ (8,400,000) | $ (921,307,000) |
Net Loss Per Common Share - Basic (in dollars per share) | $ 9.26 | $ (0.13) | $ (21.55) |
Net Loss Per Common Share - Diluted (in dollars per share) | $ 8.92 | $ (0.13) | $ (21.55) |
Weighted Average Shares Outstanding - Basic (in shares) | 78,557,216 | 62,989,543 | 42,744,639 |
Weighted Average Shares Outstanding - Diluted (in shares) | 86,675,365 | 62,989,543 | 42,744,639 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows From Operating Activities | |||
Net Income (Loss) | $ 773,237,000 | $ 6,361,000 | $ (906,041,000) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | |||
Depletion, Depreciation, Amortization and Accretion | 251,272,000 | 140,828,000 | 162,120,000 |
Amortization of Debt Issuance Costs | 4,975,000 | 3,764,000 | 5,172,000 |
Write-off of Debt Issuance Costs | 0 | 0 | 1,543,000 |
(Gain) Loss on Extinguishment of Debt | (810,000) | 13,087,000 | 3,718,000 |
Amortization of Bond (Premium) Discount on Long-term Debt | (2,125,000) | (413,000) | (1,037,000) |
Loss on the Sale of Other Property & Equipment | 185,000 | 17,000 | 0 |
Deferred Income Taxes | (571,000) | 233,000 | 210,000 |
Unrealized (Gain) Loss on Derivative Instruments | (41,180,000) | 311,328,000 | (38,858,000) |
Loss on Contingent Consideration | (1,859,000) | 292,000 | 169,000 |
Share-Based Compensation Expense | 5,656,000 | 3,621,000 | 4,119,000 |
Impairment of Other Current Assets | 0 | ||
Impairment Expense | 0 | 0 | 1,066,668,000 |
Other | 2,038,000 | 3,162,000 | (234,000) |
Changes in Working Capital and Other Items: | |||
Accounts Receivable, Net | (74,904,000) | (122,160,000) | 37,637,000 |
Prepaid and Other Expenses | (720,000) | (1,999,000) | 546,000 |
Accounts Payable | (338,000) | 14,091,000 | (1,089,000) |
Accrued Liabilities | 9,955,000 | 12,318,000 | 342,000 |
Accrued Interest | 3,607,000 | 11,937,000 | (3,300,000) |
Net Cash Provided By Operating Activities | 928,418,000 | 396,467,000 | 331,685,000 |
Cash Flows From Investing Activities | |||
Acquisitions of and Capital Expenditures on Oil and Natural Gas Properties | (1,355,197,000) | (593,228,000) | (283,632,000) |
Acquisition Deposit | (43,000,000) | (40,650,000) | 0 |
Purchases of Other Property and Equipment | (4,579,000) | (556,000) | (295,000) |
Net Cash Used For Investing Activities | (1,402,777,000) | (634,434,000) | (283,926,000) |
Cash Flows From Financing Activities | |||
Advances on Revolving Credit Facility | 1,260,000,000 | 554,000,000 | 78,000,000 |
Repayments on Revolving Credit Facility | (996,000,000) | (1,031,000,000) | (126,000,000) |
Purchase of Capped Call | (36,100,000) | 0 | 0 |
Issuance of Convertible Notes | 482,971,000 | 0 | 0 |
Repayments of Second Lien Notes | 0 | (295,918,000) | (13,514,000) |
Repayments of Senior Unsecured Promissory Note | 0 | (130,000,000) | 0 |
Issuance of Senior Notes | 0 | 763,500,000 | 0 |
Repurchase of Senior Notes | (24,907,000) | 0 | 0 |
Debt Issuance Costs Paid | (7,388,000) | (17,611,000) | (446,000) |
Issuance of Common Stock | 0 | 438,077,000 | 0 |
Common Stock Dividends Paid | (51,602,000) | (4,938,000) | 0 |
Repurchases of Common Stock | (54,502,000) | 0 | 0 |
Repurchase of Preferred Stock | (81,236,000) | 0 | 0 |
Preferred Stock Dividends Paid | (21,664,000) | (29,212,000) | 0 |
Restricted Stock Surrenders - Tax Obligations | (2,206,000) | (839,000) | (439,000) |
Net Cash Provided (Used) By Financing Activities | 467,367,000 | 246,059,000 | (62,399,000) |
Net Increase (Decrease) in Cash and Cash Equivalents | (6,992,000) | 8,092,000 | (14,640,000) |
Cash and Cash Equivalents – Beginning of Period | 9,519,000 | 1,428,000 | 16,068,000 |
Cash and Cash Equivalents – End of Period | $ 2,528,000 | $ 9,519,000 | $ 1,428,000 |
STATEMENTS OF STOCKHOLDERS' EQU
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Retained Earnings (Deficit) |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 40,608,518 | 1,500,000 | |||
Balance at beginning of period at Dec. 31, 2019 | $ 558,643 | $ 406 | $ 2 | $ 1,431,438 | $ (873,203) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of Common Stock (in shares) | 460,382 | ||||
Issuance of Common Stock | 2 | $ 2 | |||
Restricted Stock Forfeitures (in shares) | (107,071) | ||||
Restricted Stock Forfeitures | 0 | ||||
Share Based Compensation | 4,612 | 4,612 | |||
Restricted Stock Surrenders - Tax Obligations (in shares) | (39,686) | ||||
Restricted Stock Surrenders - Tax Obligations | (439) | (438) | |||
Issuance of shares, net of issuance costs (in shares) | 794,702 | ||||
Issuance of Shares, Net of Issuance Costs | 81,212 | $ 1 | 81,211 | ||
Debt Exchange Agreements (in shares) | 4,164,941 | ||||
Debt Exchange Agreements | 37,169 | $ 34 | 37,135 | ||
Conversion of convertible securities (in shares) | 526,695 | (75,970) | |||
Conversion of convertible securities | 0 | $ 5 | 1,108 | (1,113) | |
Acquisition of Oil and Natural Gas Properties (in shares) | 295,000 | ||||
Acquisition of Oil and Natural Gas Properties | 1,537 | 1,537 | |||
Net Income (Loss) | (906,041) | (906,041) | |||
Balance at end of period (in shares) at Dec. 31, 2020 | 45,908,779 | 2,218,732 | |||
Balance at end of period at Dec. 31, 2020 | (223,304) | $ 448 | $ 2 | 1,556,602 | (1,780,357) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of Common Stock (in shares) | 339,653 | ||||
Issuance of Common Stock | 0 | ||||
Restricted Stock Forfeitures (in shares) | (14,355) | ||||
Restricted Stock Forfeitures | 1 | 1 | |||
Share Based Compensation | 3,903 | 3,903 | |||
Restricted Stock Surrenders - Tax Obligations (in shares) | (60,611) | ||||
Restricted Stock Surrenders - Tax Obligations | (839) | (839) | |||
Issuance of shares, net of issuance costs (in shares) | 31,125,000 | ||||
Issuance of Shares, Net of Issuance Costs | 438,077 | $ 31 | 438,045 | ||
Issuance of Common Stock Warrants | 30,512 | 30,512 | |||
Contingent Consideration Settlements (in shares) | 43,455 | ||||
Contingent Consideration Settlements | 785 | 785 | |||
Preferred Stock Dividends | (29,212) | (29,212) | |||
Common Stock Dividends Declared | (11,149) | (11,149) | |||
Net Income (Loss) | 6,361 | 6,361 | |||
Balance at end of period (in shares) at Dec. 31, 2021 | 77,341,921 | 2,218,732 | |||
Balance at end of period at Dec. 31, 2021 | 215,135 | $ 479 | $ 2 | 1,988,649 | (1,773,996) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of Common Stock (in shares) | 125,789 | ||||
Issuance of Common Stock | 0 | ||||
Restricted Stock Forfeitures (in shares) | (2,615) | ||||
Restricted Stock Forfeitures | 0 | ||||
Share Based Compensation | 5,873 | 5,873 | |||
Restricted Stock Surrenders - Tax Obligations (in shares) | (89,620) | ||||
Restricted Stock Surrenders - Tax Obligations | (2,206) | (2,206) | |||
Conversion of convertible securities (in shares) | 7,376,739 | (1,643,732) | |||
Conversion of convertible securities | 0 | $ 7 | $ (2) | (6) | |
Acquisition of Oil and Natural Gas Properties | 17,870 | 17,870 | |||
Repurchases of Common Stock (in shares) | (1,909,097) | ||||
Repurchases of Common Stock | (54,502) | $ (2) | (54,500) | ||
Purchase of Capped Calls | (36,100) | (36,100) | |||
Repurchases of Preferred Stock (in shares) | (575,000) | ||||
Repurchases of Preferred Stock | (81,236) | $ (1) | (81,236) | ||
Preferred Stock Dividends | (21,664) | (21,664) | |||
Common Stock Warrant Exchange Agreement warrant (in shares) | 2,322,690 | ||||
Common Stock Warrant Exchange Agreement - Reliance Warrants | 0 | $ 2 | (2) | ||
Common Stock Dividends Declared | (71,148) | (71,148) | |||
Net Income (Loss) | 773,237 | 773,237 | |||
Balance at end of period (in shares) at Dec. 31, 2022 | 85,165,807 | 0 | |||
Balance at end of period at Dec. 31, 2022 | $ 745,260 | $ 487 | $ 0 | $ 1,745,532 | $ (1,000,759) |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS | ORGANIZATION AND NATURE OF BUSINESS Northern Oil and Gas, Inc. (the “Company,” “Northern,” “our” and words of similar import), a Delaware 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 New York Stock Exchange under the symbol “NOG”. The Company’s principal business is crude oil and natural gas exploration, development, and production with operations in the United States. The Company’s primary strategy is investing in non-operated minority working and mineral interests in oil and gas properties in the United States. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 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, 2022, the Company has evaluated subsequent events through the date of this filing and determined (i) that there were no subsequent events which required recognition in the financial statements through the date of this filing and (ii) to include the disclosure in Note 14 regarding subsequent events. 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 reserves, which includes limited control over future development plans as a non-operator, estimates relating to certain crude oil and natural gas revenues and expenses, fair value of derivative instruments, fair value of contingent consideration, acquisition date fair values of assets acquired and liabilities assumed, impairment of crude oil and natural gas properties, asset retirement obligations and deferred income taxes. Management’s estimates and assumptions were based on historical data and consideration of future market conditions. Given the uncertainty inherent in any projection, actual results may differ from the estimates and assumptions used, and conditions may change, which could materially affect amounts reported in the financial statements. Reclassifications Certain prior period balances in the statements of cash flows have been reclassified to conform to the current year presentation. Such reclassifications had no impact on net income (loss), cash flows or stockholders’ equity (deficit) previously reported. Cash and Cash Equivalents The Company 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. The Company’s cash positions represent assets held in checking and money market accounts. Cash and cash equivalents are generally available on a daily or weekly basis and are highly liquid in nature. 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 balances. Accounts receivable not expected to be collected within the next twelve months are included within Other Noncurrent Assets, Net in the balance sheets. The allowance for doubtful accounts was $4.9 million and $3.9 million as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the Company included accounts receivable of $3.2 million and $4.0 million, respectively, in Other Noncurrent Assets, Net due to their long-term nature. 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 Oil and Gas Properties The Company 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 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 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, 2022, 2021 and 2020, respectively: December 31, (In thousands) 2022 2021 2020 Capitalized Certain Payroll and Other Internal Costs $ 1,045 $ 1,353 $ 1,159 Capitalized Interest Costs 3,365 1,103 556 Total $ 4,410 $ 2,456 $ 1,716 As of December 31, 2022, the Company held leasehold and other oil and gas interests in the United States in the Williston Basin, Permian Basin and Appalachian Basin. 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, 2022, 2021 and 2020, there were no property sales that resulted in a significant alteration. Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the net book value of the proved oil and gas properties. Net capitalized costs are limited to the lower of unamortized cost net of deferred income taxes, or the cost center ceiling. The proved oil and natural gas properties, net balance was $2.5 billion as of December 31, 2022. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, based on the trailing twelve-month unweighted average of the first-day-of-the-month price, adjusted for any contract provisions or financial derivatives designated as hedges for accounting purposes, if any, that hedge the Company’s oil and natural gas revenue, and excluding the estimated abandonment costs for properties with asset retirement obligations recorded in the balance sheet, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized, including related deferred taxes for differences between the book and tax basis of the oil and natural gas properties. If the net book value, including related deferred taxes, exceeds the ceiling, an impairment or non-cash writedown is required. The Company did not have any ceiling test impairment for the years ended December 31, 2022 and 2021. The Company recorded a ceiling test impairment of $1,066.7 million for the year ended December 31, 2020. Impairment charges affect the Company’s reported net income but do not reduce the Company’s cash flow. The Company computes the provision for depletion of oil and natural gas properties using the unit-of-production method based upon production and estimates of proved reserve quantities. Unproved costs and related carrying costs are excluded from the depletion base until the properties associated with these costs are considered proved or impaired. The following table presents depletion and depletion per BOE sold of the Company’s proved oil and natural gas properties for the periods presented: Year Ended December 31, (In thousands) 2022 2021 2020 Depletion of Proved Oil and Natural Gas Properties $ 248,252 $ 138,759 $ 160,643 Depletion per BOE Produced $ 9.01 $ 7.07 $ 13.27 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. Capitalized costs associated with impaired unproved properties, which includes leases that have expired or have been deemed uneconomic, and capitalized costs related to properties having proved reserves, plus the estimated future development costs and asset retirement costs, are included in the depletion calculation. Under this method, depletion is calculated at the end of each period by multiplying total production for the period by a depletion rate. The depletion rate is determined by dividing the total unamortized cost base plus future development costs by net equivalent proved reserves at the beginning of the period. 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, 2022, 2021 and 2020, unproved properties of $8.7 million, $3.0 million, and $2.9 million, respectively, were impaired. Asset Retirement Obligations The Company records a liability equal to the fair value of the estimated cost to retire an asset upon initial recognition. The asset retirement liability is recorded in the period in which the obligation meets the definition of a liability, which is generally when the asset is placed into service. When the liability is initially recorded, the Company increases the carrying amount of oil and natural gas properties by an amount equal to the original liability. The liability is accreted to its present value each period, and the capitalized cost is depreciated consistent with depletion of reserves. Upon settlement of the liability or the sale of the well, the liability is relieved. These liability amounts may change because of changes in asset lives, estimated costs of abandonment or legal or statutory remediation requirements. Business Combinations The Company accounts for its acquisitions that qualify as a business using the acquisition method. Under the acquisition method, assets acquired and liabilities assumed are recognized and measured at their fair values. The use of fair value accounting requires the use of significant judgment since some transaction components do not have fair values that are readily determinable. The excess, if any, of the purchase price over the net fair value amounts assigned to assets acquired and liabilities assumed is recognized as goodwill. Conversely, if the fair value of assets acquired exceeds the purchase price, including liabilities assumed, the excess is immediately recognized in earnings as a bargain purchase gain. Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, receivables, payables, commodity derivative assets and liabilities, contingent consideration, and long-term debt. The carrying amounts of cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. The fair values of the Company’s derivative instruments assets and liabilities are based on a third-party industry-standard pricing model using contract terms and prices and assumptions and inputs that are substantially observable in active markets throughout the full term of the instruments, including forward oil price curves, discount rates, volatility factors and credit risk adjustments. The fair values of the Company’s contingent consideration liabilities are determined by a third-party valuation specialist using Monte Carlo simulations that include observable market data. The carrying amount of long-term debt associated with borrowings outstanding under the Company’s Revolving Credit Facility approximates fair value as borrowings bear interest at variable rates. The carrying amounts of the Company’s Senior Notes and Convertible Notes (see Note 4 below) may not approximate fair value because carrying amounts are net of unamortized premiums and debt issuance costs, and the Senior Notes and Convertible Notes bear interest at fixed rates. See Note 11 for additional discussion. Debt Issuance Costs Debt issuance costs related to our Senior Notes and Convertible Notes are included as a deduction from the carrying amount of long-term debt in the balance sheets and are amortized to interest expense using the effective interest method over the term of the related debt. Debt issuance costs related to the Revolving Credit Facility are included in other noncurrent assets and are amortized to interest expense on a straight-line basis over the term of the agreement. Debt Premiums Debt premiums related to the Company’s Senior Notes are included as an addition to the carrying amount of the long-term debt in the balance sheets and are amortized to interest expense using the effective interest method over the term of the related notes. Revenue Recognition The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. The Company recognizes revenue from its interests in the sales of crude oil and natural gas in the period that its performance obligations are satisfied. Performance obligations are satisfied when the customer obtains control of the product, when the Company has no further obligations to perform related to the sale, when the transaction price has been determined and when collectability is probable. The sales of oil and natural gas are made under contracts which the third-party operators of the wells have negotiated with customers, which typically include variable consideration that is based on pricing tied to local indices and volumes delivered in the current month. The Company receives payment from the sale of oil and natural gas production from one to three months after delivery. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in trade receivables, net in the balance sheets. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received, however, differences have been and are insignificant. Accordingly, the variable consideration is not constrained. The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption, which applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company’s oil is typically sold at delivery points under contracts terms that are common in our industry. The Company’s natural gas produced is delivered by the well operators to various purchasers at agreed upon delivery points under a limited number of contract types that are also common in our industry. Regardless of the contract type, the terms of these contracts compensate the well operators for the value of the oil and natural gas at specified prices, and then the well operators will remit payment to the Company for its share in the value of the oil and natural gas sold. A wellhead imbalance liability equal to the Company’s share is recorded to the extent that the Company’s well operators have sold volumes in excess of its share of remaining reserves in an underlying property. However, for the years ended December 31, 2022, 2021 and 2020, 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. The Company’s disaggregated revenue has two primary sources: oil sales and natural gas and NGL sales. Substantially all of the Company’s oil and natural gas sales come from three geographic areas in the United States: the Williston Basin (North Dakota and Montana), the Appalachian Basin (Pennsylvania), and the Permian Basin (New Mexico and Texas). The following tables present the disaggregation of the Company’s oil revenues and natural gas and NGL revenues by basin for the years ended December 31, 2022, 2021 and 2020. Twelve Months Ended December 31, 2022 (In thousands) Williston Permian Appalachian Total Oil Revenues $ 1,058,878 $ 415,732 $ — $ 1,474,610 Natural Gas and NGL Revenues 260,462 116,034 134,692 511,188 Total $ 1,319,340 $ 531,766 $ 134,692 $ 1,985,798 Twelve Months Ended December 31, 2021 (In thousands) Williston Permian Appalachian Total Oil Revenues $ 730,982 $ 42,488 $ — $ 773,470 Natural Gas and NGL Revenues 141,425 7,386 52,808 201,619 Total $ 872,407 $ 49,874 $ 52,808 $ 975,089 Twelve Months Ended December 31, 2020 (In thousands) Williston Permian Appalachian Total Oil Revenues $ 304,754 $ 495 $ — $ 305,249 Natural Gas and NGL Revenues 18,773 30 — 18,802 Total $ 323,527 $ 525 $ — $ 324,052 Concentrations of Market, Credit Risk and Other Risks 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, indirectly via the third-party operators of the wells, from purchasers of its crude oil and natural gas production. While certain of these customers, as well as third-party operators of the wells, 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 have been immaterial. As a non-operator, 100% of the Company’s wells are operated by third-party operating partners. As a result, the Company is highly dependent on the success of these third-party operators. If they are not successful in the development, exploitation, production and exploration activities relating to the Company’s leasehold interests, or are unable or unwilling to perform, the Company’s financial condition and results of operation could be adversely affected. These risks are heightened in a low commodity price environment, which may present significant challenges to these third-party operators. The Company’s third-party operators will make decisions in connection with their operations that may not be in the Company’s best interests, and the Company may have little or no ability to exercise influence over the operational decisions of its third-party operators. For the years ended December 31, 2022, 2021 and 2020, the Company’s top four operators made up 39%, 50% and 49%, respectively, of total oil and natural gas sales. The Company faces concentration risk due to the fact that a majority of its oil and natural gas revenue is sourced from North Dakota. Acquisitions since 2021 have diversified the Company’s portfolio to include New Mexico, Pennsylvania, and Texas, but the Company remains disproportionately exposed to risks affecting a limited number of geographic areas of operations. 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 counterparties 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. In determining the fair value of performance-based share awards subject to market conditions, the Company utilizes a Monte Carlo simulation prepared by an independent third-party. 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. Treasury Stock Treasury stock is recorded at cost, which includes incremental direct transaction costs, and is retired upon acquisition as a result of share repurchases under the share repurchase program or from the withholding of shares of stock to satisfy employee tax withholding obligations that arise upon the lapse of restrictions on their stock-based awards at the employees’ election. Income Taxes The Company’s income tax expense, deferred tax assets and deferred tax liabilities reflect management’s best assessment of estimated current and future taxes to be paid. The Company estimates for each interim reporting period the effective tax rate expected for the full fiscal year and uses that estimated rate in providing for income taxes on a current year-to-date basis. The Company’s only taxing jurisdictions are the United States and the US states in which we operate. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results and incorporates assumptions about the amount of future state and federal pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. 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. In assessing the need for a valuation allowance for the Company’s deferred tax assets, a significant item of negative evidence considered was the cumulative book losses in recent years, driven primarily by the full cost ceiling impairments over that period. Additionally, the Company’s revenue, profitability and future growth are substantially dependent upon prevailing and future prices for oil and natural gas. The markets for these commodities continue to be volatile. Changes in oil and natural gas prices have a significant impact on the value of the Company’s reserves and on its cash flows. Due to these factors, management has placed a lower weight on the prospect of future earnings in its overall analysis of the valuation allowance. Accordingly, the valuation allowance against the Company’s deferred tax asset at December 31, 2022 and 2021 was $156.3 million and $341.3 million, respectively. Derivative Instruments and Price Risk Management The Company uses derivative instruments to manage market risks resulting from fluctuations in the prices of crude oil and natural gas commodities. 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 the applicable commodity without the exchange of underlying volumes. The notional amounts of these financial instruments are based on expected production from existing wells. The Company may also use exchange traded futures contracts and option contracts to hedge the delivery price of commodities at a future date. The Company recognizes derivative instruments as assets or liabilities in the balance sheet, measured at fair value and marked-to-market at the end of each period. Any realized gains and losses on settled derivatives, as well as mark-to-market gains or losses, are aggregated and recorded to gain (loss) on derivative instruments, net on the statements of operations. See Note 12 for a description of the derivative contracts into which the Company has entered. Employee Benefit Plans The Company sponsors a 401(k) defined contribution plan for the benefit of substantially all employees at the date of hire. The plan allows eligible employees to make pre-tax contributions up to 100% of their annual compensation, not to exceed annual limits established by the federal government. Employees are 100% vested in the employer contributions upon receipt. Net Income (Loss) Per Common Share Basic earnings per share (“EPS”) are computed by dividing net income (loss) attributable to common stockholders (the numerator) by the weighted average number of common shares outstanding for the period (the denominator). Diluted EPS is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include shares issuable upon exercise of stock options or warrants and vesting of restricted stock awards, and shares issuable upon conversion of the Series A Preferred Stock (see Note 5). The number of potential common shares outstanding are calculated using the treasury stock or if-converted method. In those reporting periods in which the Company has reported net income available to common stockholders, anti-dilutive shares generally are comprised of the restricted stock that has average unrecognized stock compensation expense greater than the average stock price. In those reporting periods in which the Company has a net loss, anti-dilutive shares are comprised of the impact of those number of shares that would have been dilutive had the Company had net income plus the number of common stock equivalents that would be anti-dilutive had the company had net income. Restricted stock awards are excluded from the calculation of basic weighted average common shares outstanding until they vest. For restricted stock awards that vest based on achievement of performance and/or market conditions, the number of contingently issuable common shares included in diluted weighted-average common shares outstanding is based on the number of common shares, if any, that would be issuable under the terms of the arrangement if the end of the reporting period were the end of the contingency period, assuming the result would be dilutive. Supplemental Cash Flow Information The following reflects the Company’s supplemental cash flow information for the years ended December 31, 2022, 2021 and 2020 : December 31, (In thousands) 2022 2021 2020 Supplemental Cash Items: Cash Paid During the Period for Interest, Net of Amount Capitalized $ 74,933 $ 46,951 $ 55,109 Cash Paid During the Period for Income Taxes 3,672 — — Non-cash Investing Activities: Oil and Natural Gas Properties Included in Accounts Payable and Accrued Liabilities 163,059 111,897 88,564 Capitalized Asset Retirement Obligations 3,917 6,950 710 Contingent Consideration 11,966 785 324 Compensation Capitalized on Oil and Gas Properties 218 282 495 Issuance of Common Stock Warrants - Acquisitions of Oil and Natural Gas Properties 17,870 30,512 — Issuance of Common Stock - Acquisitions of Oil and Natural Gas Properties — — 1,537 Other Property and Equipment Included in Accounts Payable — 578 — Non-cash Financing Activities: Common Stock Dividends Declared, but not paid 19,546 6,210 — Issuance of Preferred Stock in Exchange for 8.5% Second Lien Notes due 2023 — — 81,212 Issuance of Common Stock for 2L Notes Repurchase — — 37,169 Issuance of Common Stock for Preferred Stock Exchange 36,627 — 1,113 Issuance of Common Stock Warrants - Acquisitions of Oil and Natural Gas Properties 17,870 — — Issuance of Common Stock in Exchange for Warrants 76,904 — — Adopted and Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“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. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) followed by ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), issued in January 2021 to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. The Company has not elected to use the optional guidance and continues to evaluate the options provided by ASU 2020-04 and ASU 2021-01 and the impact the new standard will have on its financial statements and related disclosure. |
CRUDE OIL AND NATURAL GAS PROPE
CRUDE OIL AND NATURAL GAS PROPERTIES | 12 Months Ended |
Dec. 31, 2022 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
CRUDE OIL AND NATURAL GAS PROPERTIES | CRUDE OIL AND NATURAL GAS PROPERTIES The book value of the Company’s crude oil and natural gas properties consists of all 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 operations from the closing date of the acquisition. Acquired assets and liabilities assumed are recorded based on their estimated fair value at the time of the acquisition. 2022 Acquisitions During 2022, the Company completed the following larger bolt-on acquisitions (each as defined and described below): the Veritas Acquisition, the Incline Acquisition, the Laredo Acquisition, the Alpha Acquisition, and the Delaware Acquisition (collectively, the “2022 Bolt-on Acquisitions”). During 2022, in addition to the 2022 Bolt-on Acquisitions, the Company acquired oil and natural gas properties through a number of smaller independent transactions for a total of $100.0 million. Veritas Acquisition On January 27, 2022, the Company completed the acquisition of certain non-operated oil and gas properties, interests and related assets in the Permian Basin from Veritas TM Resources, LLC, Veritas Permian Resources, LLC, Veritas Lone Star Resources, LLC, and Veritas MOC Resources, LLC, effective as of October 1, 2021 (the “Veritas Acquisition”). The total consideration was $408.8 million, which included $390.9 million in cash and warrants to purchase 1,939,998 shares of the Company’s common stock, par value $0.001 per share, at an exercise price equal to $28.30 per share. The warrants had a total estimated fair value of $17.9 million. As a result of customary post-closing adjustments, the Company further decreased its proved oil and natural gas properties and total consideration by $3.1 million subsequent to closing. The results of operations from the acquisition from the January 27, 2022 closing date through December 31, 2022, represented approximately $244.1 million of revenue and $168.0 million of income from operations. The Company incurred $7.3 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the statement of operations. The following table reflects the initial fair values of the net assets and liabilities: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 383,755 Unproved oil and natural gas properties 26,262 Total assets acquired 410,017 Asset retirement obligations (1,219) Net assets acquired $ 408,798 Fair value of consideration paid for net assets: Cash consideration $ 390,928 Issuance of Common Stock Warrants (1.9 million shares at $28.30 per share) 17,870 Total fair value of consideration transferred $ 408,798 Incline Acquisition On August 15, 2022, the Company completed the acquisition of certain non-operated oil and gas properties, interests and related assets in the Williston Basin from Incline Bakken, LLC, effective as of April 1, 2022 (the “Incline Acquisition”). The total consideration at closing was $159.8 million, which includes $158.0 million in cash and $1.8 million in value attributable to potential additional contingent consideration (described in more detail below). As a result of customary post-closing adjustments, the Company reduced its proved oil and natural gas properties and total consideration by $7.5 million subsequent to closing. The results of operations from the acquisition from the August 15, 2022 closing date through December 31, 2022, represented approximately $25.3 million of revenue and $17.0 million of income from operations. The Company incurred $1.1 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the statement of operations. The following table reflects the fair values of the net assets and liabilities as of the closing date of the acquisition: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 160,155 Total assets acquired 160,155 Asset retirement obligations (319) Net assets acquired $ 159,836 Fair value of consideration paid for net assets: Cash consideration $ 157,977 Contingent consideration 1,850 Total fair value of consideration transferred $ 159,827 A contingent consideration liability arising from potential additional consideration in connection with the Incline Acquisition was recognized at its fair value. The seller had the potential to earn up to $5.0 million of additional cash consideration dependent upon NYMEX WTI oil pricing at the end of 2022. The acquisition date fair value of the potential additional consideration, totaling $1.8 million, was recorded within contingent consideration liabilities on the Company’s balance sheets. Changes in the fair value of the liability (that were not accounted for as revisions of the acquisition date fair value) are recorded in other income (expense) on the Company’s statement of operations. This contingent consideration was not earned, and there was no remaining associated liability as of December 31, 2022. Laredo Acquisition On October 3, 2022, the Company completed the acquisition of certain non-operated oil and gas properties, interests and related assets in the Permian Midland Basin from Laredo Petroleum, Inc., effective as of August 1, 2022 (the “Laredo Acquisition”). The total consideration at closing was $110.1 million in cash. As a result of customary post-closing adjustments, the Company reduced its proved oil and natural gas properties and total consideration by $6.0 million subsequent to closing. The results of operations from the acquisition from the October 3, 2022 closing date through December 31, 2022, represented approximately $9.4 million revenue and $6.8 million of income from operations. The Company incurred $0.8 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the statement of operations. The following table reflects the fair values of the net assets and liabilities as of the closing date of the acquisition: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 110,258 Total assets acquired 110,258 Asset retirement obligations (187) Net assets acquired $ 110,071 Fair value of consideration paid for net assets: Cash consideration $ 110,071 Total fair value of consideration transferred $ 110,071 Alpha Acquisition On December 1, 2022, the Company completed the acquisition of certain non-operated oil and gas properties, interests and related assets in the Permian Midland Basin from Alpha Energy Partners, effective as of September 1, 2022 (the “Alpha Acquisition”). The total consideration at closing was $164.0 million, which includes $153.9 million in cash and $10.1 million in value attributable to potential additional contingent consideration (described in more detail below). As a result of customary post-closing adjustments, the Company may adjust its proved oil and natural gas properties and total consideration subsequent to closing. The results of operations from the acquisition from the December 1, 2022 closing date through December 31, 2022, represented approximately $2.6 million of revenue and $1.5 million of income from operations. The Company incurred $1.3 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the statement of operations. The following table reflects the fair values of the net assets and liabilities as of the closing date of the acquisition: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 164,300 Total assets acquired 164,300 Asset retirement obligations (278) Net assets acquired $ 164,023 Fair value of consideration paid for net assets: Cash consideration $ 153,916 Contingent consideration 10,107 Total fair value of consideration transferred $ 164,023 A contingent consideration liability arising from potential additional consideration in connection with the Alpha Acquisition was recognized at its fair value. The seller has the potential to earn additional cash consideration dependent upon average front month NYMEX WTI oil pricing during the first six months of 2023. The amount will be determined on a sliding scale from zero additional consideration if such pricing is below $75.00 per barrel, up to $22.5 million of additional consideration if such pricing is at least $87.85 per barrel. The acquisition date fair value of the potential additional consideration, totaling $10.1 million, was recorded within contingent consideration liabilities on the Company’s balance sheets. Changes in the fair value of the liability (that were not accounted for as revisions of the acquisition date fair value) are recorded in other income (expense) on the Company’s statement of operations. Delaware Acquisition On December 16, 2022, the Company completed the acquisition of certain non-operated oil and gas properties, interests and related assets in the Permian Delaware Basin from a private seller, effective as of November 1, 2022 (the “Delaware Acquisition”). The total consideration at closing was $131.6 million in cash. As a result of customary post-closing adjustments, the Company may adjust its proved oil and natural gas properties and total consideration subsequent to closing. The results of operations from the acquisition from the December 16, 2022 closing date through December 31, 2022, represented approximately $1.2 million of revenue and $0.7 million of income from operations. The Company incurred $1.3 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the statement of operations. The following table reflects the fair values of the net assets and liabilities as of the closing date of the acquisition: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 131,773 Total assets acquired 131,773 Asset retirement obligations (155) Net assets acquired $ 131,618 Fair value of consideration paid for net assets: Cash consideration $ 131,618 Total fair value of consideration transferred $ 131,618 2021 Acquisitions During 2021, in addition to the Reliance Acquisition, CM Resources Acquisition and the Comstock Acquisition (each defined below), the Company acquired oil and natural gas properties, through a number of independent transactions, for a total of $37.9 million, excluding the associated development costs. Reliance Acquisition On April 1, 2021, the Company completed the acquisition of certain oil and gas properties, interests and related net assets from Reliance Marcellus, LLC (the “Reliance Acquisition”), effective July 1, 2020. The total consideration paid by the Company was $140.6 million, consisting of (i) warrants to purchase 3,250,000 shares of the Company’s common stock with an exercise price equal to $14.00 per share and a total estimated fair value of $30.5 million and (ii) cash purchase consideration of $110.1 million. The following table reflects the fair values of the net assets and liabilities as of the date of acquisition: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 139,644 Unproved oil and natural gas properties 10,912 Total assets acquired $ 150,556 Asset retirement obligations (6,549) Minimum volume commitment liability (3,443) Net assets acquired $ 140,564 Fair value of consideration paid for net assets: Cash consideration $ 110,052 Issuance of Warrants (3.2 million shares at $14.00 per share) 30,512 Total fair value of consideration transferred $ 140,564 CM Resources Acquisition On August 2, 2021, the Company completed the acquisition of certain non-operated oil and gas properties from CM Resources, LLC, effective as of April 1, 2021 (the “CM Resources Acquisition”) , for total consideration of $101.7 million in cash. The following table reflects the fair values of the net assets and liabilities as of the date of acquisition: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 101,869 Total assets acquired $ 101,869 Asset retirement obligations (179) Net assets acquired $ 101,691 Fair value of consideration paid for net assets: Cash consideration $ 101,691 Total fair value of consideration transferred $ 101,691 Pro Forma Information The following summarized unaudited pro forma statement of operations information for the years ended December 31, 2022 and December 31, 2021 assumes that each of the Reliance, CM Resources, Veritas, Incline, Laredo, Alpha, and Delaware Acquisitions occurred as of January 1, 2021. The Company prepared the following summarized unaudited pro forma financial results for comparative purposes only. The summarized unaudited pro forma information may not be indicative of the results that would have occurred had the Company completed the acquisitions as of January 1, 2021, or that would be attained in the future. Year Ended December 31, Year Ended December 31, (In thousands) 2022 2021 Total Revenues $ 1,747,105 $ 729,487 Net Income $ 904,583 $ 124,294 Comstock Acquisition On November 16, 2021, the Company completed the acquisition of certain oil and gas properties, interests and related assets from Comstock Oil & Gas, LLC (“Comstock”), effective as of October 1, 2021 (the “Comstock Acquisition”), for total estimated consideration of $150.5 million in cash. The acquired assets consisted of approximately 65.9 net producing wells located primarily in Williams, McKenzie, Mountrail and Dunn Counties, North Dakota. Of the purchase price, 100% was allocated to proved properties and the Company recognized approximately $1.7 million of asset retirement obligations. The Comstock Acquisition was completed pursuant to the purchase and sale agreement between the Company and Comstock, dated October 6, 2021. Divestitures From time-to-time the Company may divest assets. In addition, the Company may 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 27,663 net acres and 29,835 net acres of undeveloped leasehold interests at December 31, 2022 and 2021, 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 and transferred into the full cost pool. 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, 2022 by year incurred. December 31, (In thousands) 2022 2021 2020 Prior Years Property Acquisition $ 17,659 $ 16,337 $ 160 $ 7,409 Development — — — — Total $ 17,659 $ 16,337 $ 160 $ 7,409 The Company historically has acquired unproved properties by purchasing individual or small groups of leases directly from mineral owners, 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. |
LONG TERM DEBT
LONG TERM DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG TERM DEBT | LONG-TERM DEBT The Company’s long-term debt consists of the following: December 31, 2022 (In thousands) Principal Balance Unamortized Net Premium Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 319,000 $ — $ — $ 319,000 Senior Notes 724,235 10,682 (11,946) 722,972 Convertible Notes 500,000 — (16,558) 483,442 Total $ 1,543,235 $ 10,682 $ (28,504) $ 1,525,413 December 31, 2021 Principal Balance Unamortized Net Premium Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 55,000 $ — $ — $ 55,000 Senior Notes 750,000 13,217 (14,780) 748,437 Total $ 805,000 $ 13,217 $ (14,780) $ 803,437 _______________ (1) Debt issuance costs related to the Company’s Revolving Credit Facility of $10.9 million and $5.7 million as of December 31, 2022 and 2021, are recorded in “Other Noncurrent Assets, Net” in the balance sheets. Revolving Credit Facility On June 7, 2022, the Company entered into a Third Amended and Restated Credit Agreement (the “Revolving Credit Facility”) with Wells Fargo Bank, National Association, as administrative agent and collateral agent (“Agent”), and the lenders from time to time party thereto, which amended and restated the Company’s prior revolving credit facility that was entered into on November 22, 2019. The Revolving Credit Facility is scheduled to mature on June 7, 2027. The Revolving Credit Facility is comprised of revolving loans and letters of credit and is subject to a borrowing base with maximum loan value to be assigned to the proved reserves attributable to the Company and its subsidiaries’ (if any) oil and gas properties. As of December 31, 2022, the borrowing base was $1.6 billion and the aggregate elected commitment amount was $1.0 billion. The Company’s borrowing availability is set at the lesser of the borrowing base and the elected commitment amount. The borrowing base will be redetermined semiannually on or around April 1st and October 1st, with one interim “wildcard” redetermination available to each of the Company and the Agent between scheduled redeterminations. The first scheduled redetermination each year is based on a December 31st engineering report audited by a third party (reasonably acceptable to the Agent). The Company has the option to seek commitments for term loans, which such term loans (if obtained) are to be subject to the borrowing base and the other terms of the Revolving Credit Facility. At the Company’s option, borrowings under the Revolving Credit Facility shall bear interest at the base rate or SOFR plus an applicable margin. Base rate loans bear interest at a rate per annum equal to the greatest of: (i) the Agent bank’s prime rate; (ii) the federal funds effective rate plus 50 basis points; and (iii) the adjusted SOFR rate for a one-month interest period plus 100 basis points. The applicable margin for base rate loans ranges from 125 to 225 basis points, and the applicable margin for SOFR loans ranges from 225 to 325 basis points basis points, in each case depending on the percentage of the borrowing base utilized. The Revolving Credit Facility contains negative covenants that limit the Company’s ability, among other things, to pay dividends, incur additional indebtedness, sell assets, enter into certain derivatives contracts, change the nature of its business or operations, merge, consolidate, or make certain types of investments. In addition, the Revolving Credit Facility requires that the Company comply with the following financial covenants: (i) as of the date of determination, the ratio of total net debt to EBITDAX (as defined in the Revolving Credit Facility) shall be no more than 3.50 to 1.00, measured on a rolling four quarter basis, and (ii) the current ratio (defined as consolidated current assets including unused amounts of the total commitments, but excluding non-cash assets under FASB ASC 815, divided by consolidated current liabilities excluding current non-cash obligations under FASB ASC 815, current maturities under the Revolving Credit Facility and current maturities of any long-term debt) shall not be less than 1.00 to 1.00. The Company is in compliance with these financial covenants as of December 31, 2022. The Company’s obligations under the Revolving Credit Facility may be accelerated, subject to customary grace and cure periods, upon the occurrence of certain Events of Default (as defined in the Revolving Credit Facility). Such Events of Default include customary events for a financing agreement of this type, including, without limitation, payment defaults, the inaccuracy of representations and warranties, defaults in the performance of affirmative or negative covenants, defaults on other indebtedness of the Company or its subsidiaries, defaults related to judgments and the occurrence of a Change in Control (as defined in the Revolving Credit Facility). The Company’s obligations under the Revolving Credit Facility are secured by mortgages on not less than 90% of the value of proven reserves associated with the oil and gas properties included in the determination of the borrowing base. Additionally, the Company entered into a Guaranty and Collateral Agreement in favor of the Agent for the secured parties, pursuant to which the Company’s obligations under the Revolving Credit Facility are secured by a first priority security interest in substantially all of the Company’s assets. Senior Notes On February 18, 2021, the Company and Wilmington Trust, National Association, as trustee, entered into an indenture (the “Senior Notes Indenture”), pursuant to which the Company issued $550.0 million in aggregate principal amount of 8.125% senior unsecured notes due 2028 (the “Original 2028 Notes”). On November 15, 2021, the Company issued an additional $200.0 million aggregate principal amount of 8.125% senior notes due 2028 (the “Additional 2028 Notes” and, together with the Original 2028 Notes, the “Senior Notes”). The proceeds of the Senior Notes were used primarily to refinance existing indebtedness, and for general corporate purposes. During 2022, the Company repurchased and retired $25.8 million in aggregate principal amount of the Senior Notes in open market transactions for a total of $24.9 million in cash, plus accrued interest. The Senior Notes will mature on March 1, 2028. Interest on the Senior Notes is payable semi-annually in arrears on each March 1 and September 1, commencing September 1, 2021, to holders of record on the February 15 and August 15 immediately preceding the related interest payment date, at a rate of 8.125% per annum. Prior to March 1, 2024, the Company may redeem all or a part of the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes redeemed, plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. On or after March 1, 2024, the Company may redeem all or a part of the Senior Notes at redemption prices (expressed as percentages of principal amount) equal to 104.063% for the twelve-month period beginning on March 1, 2024, 102.031% for the twelve-month period beginning on March 1, 2025, and 100% beginning on March 1, 2026, plus accrued and unpaid interest to the redemption date. The Senior Notes Indenture contains covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries, if any, to: (i) incur or guarantee additional indebtedness or issue certain types of preferred stock; (ii) pay dividends or distributions in respect of equity interests or redeem, repurchase or retire equity securities or subordinated indebtedness; (iii) transfer or sell certain assets; (iv) make investments; (v) create liens to secure indebtedness; (vi) enter into agreements that restrict dividends or other payments from any non-guarantor subsidiary to the Company; (vii) consolidate with or merge with or into, or sell substantially all of the Company’s assets to, another person; (viii) enter into transactions with affiliates; and (ix) create unrestricted subsidiaries. These covenants are subject to a number of important exceptions and qualifications, and many of these covenants will be terminated if the Senior Notes achieve an investment grade rating from either Moody’s Investors Services, Inc. or S&P Global Ratings. The Senior Notes Indenture contains customary events of default, including, but not limited to: (i) default for 30 days in the payment when due of interest on the Senior Notes; (ii) default in payment when due of the principal of, or premium, if any, on the Senior Notes; (iii) failure by the Company or certain of its subsidiaries, if any, to comply with certain of their respective obligations, covenants or agreements contained in the Senior Notes or the Senior Notes Indenture, subject to certain notice and grace periods; (iv) failure by the Company or any of its restricted subsidiaries to pay indebtedness within any applicable grace period or the acceleration of any such indebtedness if the total amount of such indebtedness exceeds $35.0 million; (v) failure by the Company or any of its restricted subsidiaries that is a Significant Subsidiary (as defined in the Senior Notes Indenture) to pay final non-appealable judgments aggregating in excess of $35.0 million, which judgments are not paid, discharged or stayed for a period of 60 days; (vi) except as permitted by the Senior Notes Indenture, any guarantee of the Senior Notes is held in any judicial proceeding to be unenforceable or invalid, or ceases for any reason to be in full force and effect, or is denied or disaffirmed by a Guarantor (as defined in the Senior Notes Indenture); and (vii) certain events of bankruptcy or insolvency described in the Senior Notes Indenture with respect to the Company and its restricted subsidiaries that are Significant Subsidiaries. Convertible Notes On October 14, 2022, the Company and Wilmington Trust, National Association, as trustee, entered into an indenture (the “Convertible Notes Indenture”), pursuant to which the Company issued $500.0 million in aggregate principal amount of 3.625% convertible senior notes due 2029 (the “Convertible Notes”). The proceeds of the Convertible Notes were used to refinance existing indebtedness and for other general corporate purposes. The Convertible Notes will mature on April 15, 2029, unless earlier repurchased, redeemed or converted. The Convertible Notes will accrue interest at a rate of 3.625% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, beginning on April 15, 2023. Before October 16, 2028, noteholders will have the right to convert their Convertible Notes only upon the occurrence of certain events. From and after October 16, 2028, noteholders may convert their Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. The Company will have the right to elect to settle conversions either entirely in cash or in a combination of cash and shares of its common stock. However, upon conversion of any Convertible Notes, the conversion value, which will be determined over a period of 40 trading days, will be paid in cash up to at least the principal amount of the Convertible Notes being converted. The initial conversion rate is 26.3104 shares of common stock per $1,000.0 principal amount of Convertible Notes, which represents an initial conversion price of approximately $38.01 per share of common stock. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Convertible Notes Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. The Convertible Notes will be redeemable, in whole or in part (subject to certain limitations), at the Company’s option at any time, and from time to time, on or after April 15, 2026 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. In addition, calling any Convertible Note for redemption will constitute a Make-Whole Fundamental Change with respect to that Convertible Note, in which case the conversion rate applicable to the conversion of that Convertible Note will be increased in certain circumstances if it is converted after it is called for redemption. If certain corporate events that constitute a “Fundamental Change” (as defined in the Convertible Notes Indenture) occur, then, subject to a limited exception for certain cash mergers, noteholders may require the Company to repurchase their Convertible Notes at a cash repurchase price equal to the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The definition of Fundamental Change includes certain business combination transactions involving the Company and certain de-listing events with respect to the Company’s common stock. The Convertible Notes have customary provisions relating to the occurrence of “Events of Default” (as defined in the Convertible Notes Indenture), which include the following: (i) certain payment defaults on the Convertible Notes due 2029 (which, in the case of a default in the payment of interest on the Convertible Notes, will be subject to a 30-day cure period); (ii) the Company’s failure to send certain notices under the Convertible Notes Indenture within specified periods of time; (iii) the Company’s failure to comply with certain covenants in the Convertible Notes Indenture relating to the Company’s ability to consolidate with or merge with or into, or sell, lease or otherwise transfer, in one transaction or a series of transactions, all or substantially all of the assets of the Company and any subsidiaries that the Company may form or acquire in the future, taken as a whole, to another person; (iv) a default by the Company in certain of its other obligations or agreements under the Convertible Notes Indenture or the Convertible Notes if such default is not cured or waived within 60 days after notice is given in accordance with the Convertible Notes Indenture; (v) certain defaults by the Company or any subsidiaries that the Company may form or acquire in the future with respect to indebtedness for borrowed money of at least $50.00 million; (vi) the rendering of certain judgments against the Company or any of its subsidiaries for the payment of at least $50.00 million, where such judgments are not paid, discharged or stayed within 60 days after the date on which the right to appeal has expired or on which all rights to appeal have been extinguished; and (vii) certain events of bankruptcy, insolvency and reorganization involving the Company or any of the Company’s significant subsidiaries that the Company may form or acquire in the future. If an Event of Default involving bankruptcy, insolvency or reorganization events with respect to the Company (and not solely with respect to any significant subsidiary that the Company may form or acquire in the future) occurs, then the principal amount of, and all accrued and unpaid interest on, all of the Convertible Notes then outstanding will immediately become due and payable without any further action or notice by any person. If any other Event of Default occurs and is continuing, then, the Trustee, by notice to the Company, or noteholders of at least 25% of the aggregate principal amount of Convertible Notes then outstanding, by notice to the Company and the Trustee, may declare the principal amount of, and all accrued and unpaid interest on, all of the Convertible Notes then outstanding to become due and payable immediately. However, notwithstanding the foregoing, the Company may elect, at its option, that the sole remedy for an Event of Default relating to certain failures by the Company to comply with certain reporting covenants in the Convertible Notes Indenture consists exclusively of the right of the noteholders to receive special interest on the Convertible Notes for up to 365 days at a specified rate per annum not exceeding 0.25% on the principal amount of the Convertible Notes for the first 180 days and, thereafter, at a specified rate per annum not exceeding 0.50% on the principal amount of the Convertible Notes. Capped Call Transactions |
COMMON AND PREFERRED STOCK
COMMON AND PREFERRED STOCK | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
COMMON AND PREFERRED STOCK | COMMON AND PREFERRED STOCK Common Stock The Company is authorized to issue up to 135,000,000 shares of common stock, par value $0.001 per share. As of December 31, 2022 and 2021, the Company had 85,165,807 and 77,341,921 shares of common stock issued and outstanding, respectively. Dividends In January 2022, the Company’s Board of Directors declared a cash dividend on the Company’s common stock in the amount of $0.14 per share. The dividend was paid on April 29, 2022 to stockholders of record as of the close of business on March 30, 2022. In May 2022, the Company’s Board of Directors declared a cash dividend on the Company’s common stock in the amount of $0.19 per share. The dividend was paid on July 29, 2022 to stockholders of record as of the close of business on June 29, 2022. In August 2022, the Company’s Board of Directors declared a cash dividend on the Company’s common stock in the amount of $0.25 per share. The dividend was paid on October 31, 2022 to stockholders of record as of the close of business on September 29, 2022. In November 2022, the Company’s Board of Directors declared a cash dividend on the Company’s common stock in the amount of $0.30 per share. The dividend was paid on January 31, 2023 to stockholders of record as of the close of business on December 29, 2022. On February 6, 2023, the Company’s Board of Directors declared a cash dividend on the Company’s common stock in the amount of $0.34 per share. The dividend is payable on April 28, 2023 to stockholders of record as of the close of business on March 30, 2023. Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock, par value $0.001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. As of December 31, 2022 and 2021, the Company had zero and 2,218,732 shares of preferred stock issued and outstanding, respectively, all of which were shares of 6.500% Series A Perpetual Cumulative Convertible Preferred Stock (the “Series A Preferred Stock”). The terms of the Series A Preferred Stock were set forth in the Certificate of Designations for the Series A Preferred Stock (the “Certificate of Designations”), as originally filed with the Delaware Secretary of State on November 22, 2019, and as amended thereafter. Dividends During the years ended December 31, 2022 and 2021, the Company paid $21.7 million and $29.2 million respectively, in aggregate dividends on the Series A Preferred Stock. The Company was current in the payment of dividends as of the Mandatory Conversion Date (defined below). Conversion On November 8, 2022, the Company exercised in full its mandatory conversion rights (the “Mandatory Conversion Exercise”) on its Series A Preferred Stock to convert such shares of Series A Preferred Stock into shares of the Company’s common stock. The outstanding shares of Series A Preferred Stock automatically converted to shares of common stock on November 15, 2022 (the “Mandatory Conversion Date”). Pursuant to the Certificate of Designations, holders of Series A Preferred Stock received 4.4878 shares of common stock and a cash payment of $6.3337 for each share of Series A Preferred Stock converted on the Mandatory Conversion Date. On the Mandatory Conversion Date, 1,643,732 outstanding shares of Series A Preferred Stock converted into an aggregate of 7,376,739 shares of common stock. Cash was paid in lieu of fractional shares of common stock. As a result, there were no remaining shares of Series A Preferred Stock outstanding as of December 31, 2022. 2022 Activity Common Stock During the year ended December 31, 2022, 89,620 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 $2.2 million, which is based on the market prices on the dates the shares were surrendered. In June 2022, the Company issued 2,322,690 shares of common stock in exchange for the surrender and cancellation of all warrants originally issued by the Company at closing of the Reliance Acquisition, which immediately prior to their cancellation were exercisable for an aggregate of 3,294,092 shares of common stock at an exercise price of $13.81 per share. Preferred Stock During the year ended December 31, 2022, the Company repurchased 575,000 shares of Series A Preferred Stock in a number of independent transactions for an aggregate of $81.2 million in cash. On November 15, 2022, all 1,643,732 outstanding shares of Series A Preferred Stock converted into an aggregate of 7,376,739 shares of common stock, pursuant to the Mandatory Conversion Exercise described above. Stock Repurchase Program In May 2022, the Company’s board of directors approved a stock repurchase program to acquire up to $150.0 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 year ended December 31, 2022 the Company repurchased 1,909,097 shares of its common stock under the stock repurchase program at a total cost of $54.5 million. During the year ended December 31, 2021 the Company did not repurchase shares of its common stock under any stock repurchase program. 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. All repurchased shares are now included in the Company’s pool of authorized but unissued shares. |
STOCK-BASED COMPENSATION AND WA
STOCK-BASED COMPENSATION AND WARRANTS | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION AND WARRANTS | STOCK-BASED COMPENSATION AND WARRANTS The Company maintains its 2018 Equity Incentive Plan (the “2018 Plan”) for making equity-based awards to employees, directors and other eligible persons. As of December 31, 2022, there were 459,580 shares available for future awards under the 2018 Plan. The Company recognizes the fair value of stock-based compensation awards expected to vest over the requisite service period as a charge against earnings, net of amounts capitalized. The Company’s stock-based compensation awards are accounted for as equity instruments and are included in the “General and administrative expenses” line item in the statements of operations. The Company capitalizes a portion of stock-based compensation for employees who are directly involved in the acquisition of oil and natural gas properties into the full cost pool. Capitalized stock-based compensation is included in the “Oil and natural gas properties” line item in the balance sheet. The 2018 Plan award types are summarized as follows: Restricted Stock Awards The Company issues restricted stock awards (“RSAs”) subject to various vesting conditions as compensation to executive officers, employees and directors of the Company. RSAs issued to employees and executive officers generally vest over three years, provided that any performance and/or market conditions are also met. RSAs issued to directors generally vest over one year, provided that any performance and/or market conditions are also met. For RSAs subject to service and/or performance vesting conditions, the grant-date fair value is established based on the closing price of the Company’s common stock on such date. Stock-based compensation expense for awards subject to only service conditions is recognized on a straight-line basis over the service period. Stock-based compensation expense for awards with both service and performance conditions is recognized on a graded basis only if it is probable that the performance condition will be achieved. The Company accounts for forfeitures of awards granted under these plans as they occur in determining stock-based compensation expense. For awards subject to a market condition, the grant-date fair value is estimated using a Monte Carlo valuation model. The Company recognizes stock-based compensation expense for awards subject to market-based vesting conditions regardless of whether it becomes probable that these conditions will be achieved or not, and stock-based compensation expense for any such awards is not reversed if vesting does not actually occur. The Monte Carlo model is based on random projections of stock price paths and must be repeated numerous times to achieve a probabilistic assessment. Expected volatility is calculated based on the historical volatility and implied volatility of the Company’s common stock, and the risk-free interest rate is based on U.S. Treasury yield curve rates with maturities consistent with the three-year vesting period. During 2022, 2021 and 2020, 125,789, 339,653 and 460,382 shares, respectively, of service-based RSAs were granted to executive officers, employees and directors under the 2018 Equity Plan. The weighted average grant date fair value of service-based RSAs was $26.34 per share, $16.45 per share and $9.15 per share for the years ended December 31, 2022, 2021, and 2020, respectively. The following table reflects the outstanding RSAs and activity related thereto for the year ended December 31, 2022: Service-based Awards Service, Performance, and Market-based Awards Number of Shares Weighted-average Grant Date Fair Value Number of Shares Weighted-average Grant Date Fair Value Outstanding at December 31, 2021 420,122 $ 13.68 18,600 $ 9.80 Shares granted 125,789 26.34 — — Shares forfeited (2,615) 9.99 Shares vested (226,963) 16.88 (18,600) 9.80 Outstanding at December 31, 2022 316,333 $ 16.39 — $ — At December 31, 2022, there was $3.3 million of total unrecognized compensation expense related to unvested RSAs. That cost is expected to be recognized over a weighted average period of 0.62 years. For the years ended December 31, 2022, 2021 and 2020, the total fair value of the Company’s restricted stock awards vested was $4.6 million, $1.8 million and $2.7 million, respectively. Performance Equity Awards In April 2022, the Company granted performance equity awards under its 2022 executive compensation program to certain executive officers. The awards are subject to a market condition, which is based on a comparison of the Company versus a defined peer group with respect to total shareholder return (“TSR”) based on the last 20 trading days of 2022 compared to the same period of 2021. Depending on the Company’s TSR relative to the defined peer group, the award recipients in the aggregate will earn between zero and $2.4 million in the form of awards expected to be settled in restricted shares of the Company’s common stock with service-based vesting over three years beginning in 2023. The Company used a Monte Carlo simulation model, described above, to estimate the fair value of the awards based on the expected outcome of the Company’s TSR relative to the defined peer group using key valuation assumptions. The assumptions used for the Monte Carlo model were as follows: 2022 Risk-free interest rate 1.69 % Dividend yield 2.40 % Expected volatility 56.94 % Company’s closing stock price on grant date $ 24.98 The maximum value of the awards issuable if all participants earned the maximum award would total $2.4 million. For the year ended December 31, 2022, the Company recorded $0.5 million of compensation expense in connection with these performance awards. Warrants In April 2021, the Company issued common stock warrants as a part of the Reliance Acquisition as purchase consideration. These warrants gave holders the right to purchase 3,250,000 shares of the Company’s common stock at an exercise price equal to $14.00 per share (subject to certain anti-dilution adjustments), had a total fair value of $30.5 million at issuance , and were generally exercisable from June 30, 2021 until April 1, 2028. The fair value of the warrants at issuance was determined by utilizing an Option Pricing Model, which used the market value of the Company’s common stock on the issue date, an exercise price of $14.00, an implied volatility of 80% and a risk-free rate of 1.34%. In June 2022, the Company issued 2,322,690 shares of common stock in exchange for the surrender and cancellation of all such warrants originally issued by the Company at closing of the Reliance Acquisition, which immediately prior to their cancellation were exercisable (due to anti-dilution adjustments) for an aggregate of 3,294,092 shares of common stock at an exercise price of $13.81 per share. Neither the Company nor the holder paid any cash consideration in the transaction. In January 2022, the Company issued common stock warrants as a part of the Veritas Acquisition as purchase consideration. These warrants gave holders the right to purchase 1,939,998 shares of the Company’s common stock at an exercise price equal to $28.30 per share (subject to certain anti-dilution adjustments), had a total fair value of $17.9 million at issuance, and are generally exercisable from April 27, 2022 until January 27, 2029. The fair value of the warrants at issuance was determined by utilizing an Option Pricing Model, which used the market value of the Company’s common stock on the issue date, an exercise price of $28.30 , an implied volatility of 60%, a risk-free rate of 2.14% and an implied dividend yield of 3.00%. The following table reflects the outstanding warrants and activity related thereto for the year ended December 31, 2022: Reliance Veritas Warrants Weighted-average Exercise Price Warrants Weighted-average Exercise Price Outstanding at December 31, 2021 3,276,582 $ 13.89 — $ — Issued — — 1,939,998 28.30 Anti-Dilution Adjustments for Common Stock Dividends 17,510 13.81 56,831 27.49 Exercised — — — — Cancelled (3,294,092) — — — Expired — — — — Outstanding at December 31, 2022 — $ — 1,996,829 $ 27.49 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Preferred Stock Repurchase During February 2022, we entered into and closed three separate stock repurchase agreements pursuant to which we repurchased an aggregate of 71,894 shares of the Company’s Series A Preferred Stock, on identical financial terms from each party for an aggregate purchase price of approximately $9.5 million in cash. Of the total amount, 21,894 shares were repurchased from affiliates of TRT Holdings, Inc., for $2.9 million in cash. Two of our directors at the time, Mr. Frantz and Mr. Popejoy, are employed by TRT Holdings, Inc., which together with its affiliates beneficially owned more than 10% of our outstanding common stock at the time of the transactions described in this paragraph. The Company’s Audit Committee is responsible for approving all transactions involving related parties. |
COMMITMENTS & CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS & CONTINGENCIES | COMMITMENTS & CONTINGENCIES Litigation The Company is engaged in various 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 Company’s 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’s interests in certain crude oil and natural gas leases from the State of North Dakota are subject to an ongoing dispute over the ownership of minerals underlying the bed of the Missouri River within the boundaries of the Fort Berthold Reservation. The ongoing dispute is between the State of North Dakota and three affiliated tribes, both of whom have purported to lease mineral rights in tracts of riverbed within the reservation boundaries. In the event the ongoing dispute results in a final judgment that is adverse to the Company’s interests, the Company would be required to reverse approximately $3.2 million in revenue (net of accrued taxes) that has been accrued since the first quarter of 2013 based on the Company’s purported interest in the crude oil and natural gas leases at issue. Due to the long-term nature of this title dispute, the $3.2 million in accounts receivable is included in “Other Noncurrent Assets, Net” in the balance sheets. The Company fully maintains the validity of its interests in the crude oil and natural gas leases. Delivery Commitments As of December 31, 2022, the Company had certain agreements associated with the Company’s Appalachian basin properties which require the Company to deliver firm quantities of natural gas to certain third parties, which we seek to fulfill with products from existing reserves. In the event we are not able to meet these firm commitments, we are subject to deficiency payments. The estimable future commitments under these volume commitment agreements as of December 31, 2022 are as follows: (in Bcf) Commitment Volumes 2023 19.0 2024 18.4 2025 3.2 Total 40.6 |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The Company has asset retirement obligations associated with the future plugging and abandonment of proved properties and related facilities. Initially, the fair value of a liability for an asset retirement obligation (“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, an adjustment to the full cost pool is recognized. The Company has no assets that are legally restricted for purposes of settling asset retirement obligations. Inherent in the fair value calculation are numerous assumptions and judgments including the ultimate retirement costs, inflation factors, credit-adjusted risk-free 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 2021, the Company adjusted the assumed productive lives of certain of its wells and during 2022, there were no adjustments to the aforementioned assumptions requiring revisions of previous estimates. The following table summarizes the Company’s asset retirement obligation transactions recorded during the years ended December 31, 2022 and 2021. December 31, (in thousands) 2022 2021 Beginning Asset Retirement Obligations $ 28,012 $ 19,181 Liabilities Acquired During the Period 2,158 8,419 Liabilities Incurred During the Period 1,014 3,075 Revision of Estimates 276 (4,084) Accretion of Discount on Asset Retirement Obligations 1,980 1,654 Liabilities Settled During the Period (359) (234) Ending Asset Retirement Obligations $ 33,082 $ 28,012 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses and tax credit carry-forwards. Under this method, deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income (loss) in the period that includes the enactment date. The income tax provision (benefit) for the years ended December 31, 2022, 2021, and 2020 consists of the following: (In thousands) 2022 2021 2020 Current Federal $ — $ — $ (376) State 3,101 233 — Deferred Federal 164,453 130 (175,309) State 20,627 (3,984) (17,778) Valuation Allowance (185,080) 3,854 193,297 Total Tax Benefit (Expense) $ 3,101 $ 233 $ (166) The following is a reconciliation of the reported amount of income tax benefit for the years ended December 31, 2022, 2021, and 2020 to the amount of income tax expenses that would result from applying the statutory rate to pretax income (loss). (In thousands) 2022 2021 2020 Income (Loss) Before Taxes and NOL $ 776,338 $ 6,594 $ (906,207) Federal Statutory Rate 21.00 % 21.00 % 21.00 % Taxes Computed at Federal Statutory Rates 163,031 1,385 (190,303) State Tax (Benefit), Net of Federal Taxes 20,270 (3,752) (20,881) Deferred Tax Adjustment 3,532 (1,488) 3,686 Share Based Compensation Tax Deficiency — — — Net Operating Loss Adjustment — — 12,494 Other 1,347 234 1,541 Valuation Allowance (185,080) 3,854 193,297 Reported Tax Expense (Benefit) $ 3,101 $ 233 $ (166) In 2020, the Company reduced its net operating loss deferred tax asset and related valuation allowance by $12.5 million due to changes from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the finalized IRC regulations, that increased the limitation on the amount of deductible interest expense. A valuation allowance is established to reduce deferred tax assets if it is determined that it is more likely than not that the related tax benefit will not be realized. On a quarterly basis, management evaluates the need for and adequacy of valuation allowances based on the expected realizability of the deferred tax assets and adjusts the amount of such allowances, if necessary. During 2022, in evaluating whether it was more likely than not that the Company’s net deferred tax assets were realized through future net income, management considered all available positive and negative evidence, including (i) its earnings history, (ii) its ability to recover net operating loss carry-forwards, (iii) the projected future income and results of operations, and (iv) its ability to use tax planning strategies. Based on all the evidence available, management determined it was more likely than not that the net deferred tax assets, other than the deferred tax asset related to the Company’s alternative minimum tax credit, were not realizable. The Company’s valuation allowance at December 31, 2022 was $156.3 million. We intend to continue maintaining a full valuation allowance on our deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. Release of any portion of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. It is reasonably possible that sufficient positive evidence will exist within the next 12 months to release our current valuation allowance position which would be indicative of our ability to utilize deferred tax assets in the future. The exact timing and amount of the valuation allowance release are subject to change based on the evaluation of all evidence and actual results, including, but not limited to, the level of profitability that we are forecasted to achieve in future periods. At December 31, 2022 and December 31, 2021, the Company maintains a full valuation allowance on its net DTAs. At December 31, 2022, the Company had a net operating loss carryforward for federal income tax purposes of $520.7 million, which is net of the IRC Section 382 limitation, and state NOL carryforwards of $686.3 million. The determination of the state NOL carryforwards is dependent upon apportionment percentages and state laws that can change from year to year and that can thereby impact the amount of such carryforwards. If unutilized, all of the federal net operating losses will expire from 2031 to 2037, except for $276.5 million of federal net operating losses that have an indefinite life. If unutilized, all of the state net operating losses will expire from 2023 to 2037, except for $174.5 million of state net operating losses that have an indefinite life. The significant components of the Company’s deferred tax assets (liabilities) were as follows: Year Ended December 31, (in thousands) 2022 2021 Net Operating Loss (NOLs) and Tax Credit Carryforwards $ 134,103 $ 150,736 Share Based Compensation 901 570 Accrued Interest 1,019 1,031 Allowance for Doubtful Accounts 1,143 919 Crude Oil and Natural Gas Properties and Other Properties (43,415) 124,531 Interest Carryforwards 10,050 — Derivative Instruments 52,891 63,739 Other (424) (178) Total Net Deferred Tax Assets (Liabilities) Before Valuation Allowance 156,269 341,348 Valuation Allowance (156,269) (341,348) Total Net Deferred Tax Assets $ — $ — 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% 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, 2022, 2021 and 2020, the Company did not recognize any interest or penalties in its statements of operations, nor did it have any interest or penalties accrued in its balance sheet at December 31, 2022 and 2021 relating to unrecognized benefits. The tax years 2022, 2021, 2020, and 2019 remain open to examination for federal income tax purposes and by the other major taxing jurisdictions to which the Company is subject. Additionally, NOLs from 2011-2018 could be adjusted in the future when such NOLs are utilized. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUEFair 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 or 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. Financial Assets and Liabilities As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2022 and 2021. Fair Value Measurements at December 31, 2022 Using (In thousands) Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Commodity Derivatives – Current Assets $ — $ 34,276 $ — Commodity Derivatives – Noncurrent Assets — 12,547 — Commodity Derivatives – Current Liabilities — (58,418) — Commodity Derivatives – Noncurrent Liabilities — (225,905) — Interest Rate Derivatives – Current Assets — 1,017 — Contingent Consideration – Current Liabilities — 10,107 — Total $ — $ (226,376) $ — Fair Value Measurements at December 31, 2021 Using (In thousands) Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Commodity Derivatives – Current Assets $ — $ 2,519 $ — Commodity Derivatives – Noncurrent Assets — 1,740 — Commodity Derivatives – Current Liabilities — (134,183) — Commodity Derivatives – Noncurrent Liabilities — (147,762) — Interest Rate Derivatives – Noncurrent Assets — 123 — Interest Rate Derivatives – Current Liabilities — (100) — Total $ — $ (277,664) $ — Commodity Derivatives. The Level 2 instruments presented in the tables above consist of commodity derivative instruments (see Note 12). The fair value of the Company’s commodity derivative 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 commodity derivative contracts is reflected in the balance sheet. The current derivative asset and liability amounts represent the fair values expected to be settled in the subsequent twelve months. Interest Rate Derivatives. The Level 2 instruments presented in the tables above consist of interest rate derivative instruments (see Note 12). The fair value of the Company’s interest rate derivative instruments is determined based upon contracted notional amounts, active market-quoted interest yield curves, and time to maturity, among other things. Counterparty statements are utilized to determine the value of the interest rate 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 interest rate derivative contracts is reflected in the balance sheets. The current derivative asset and liability amounts represent the fair values expected to be settled in the subsequent twelve months. Contingent Consideration. These Level 2 instruments presented in the tables above consist of contingent consideration liabilities potentially payable by the Company in connection with both the Incline Acquisition and the Alpha Acquisition (see Note 3). The fair value of these liabilities was estimated using observable market data (NYMEX WTI forward price curve) and Monte Carlo simulation models. The acquisition date fair values were recorded within contingent consideration liabilities on the Company’s balance sheets. Changes in the fair value of the liability (that are not accounted for as revisions of the acquisition date fair value) are recorded in other income (expense) on the Company’s statement of operations. Fair Value of Other Financial Instruments The carrying amounts of cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. Long-term debt is not presented at fair value in the balance sheets, as it is recorded at carrying value, net of unamortized debt issuance costs and unamortized premium (see Note 4). The fair value of the Company’s Senior Notes and Convertible Notes was $695.3 million and $543.1 million, respectively, at December 31, 2022. The fair value of the Company’s Senior Notes and Convertible Notes are based on market quotes that represent Level 2 inputs. There is no active market for the Revolving Credit Facility. The recorded value of the Revolving Credit Facility approximates its fair value because of its floating rate structure based on the SOFR spread, secured interest, and the Company’s borrowing base utilization. The fair value measurement for the Revolving Credit Facility represents Level 2 inputs. Non-Financial Assets and Liabilities The initial measurement of AROs at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and natural gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the AROs liability is deemed to use Level 3 inputs. AROs incurred and acquired during the year ended December 31, 2022 were approximately $3.2 million. The Company issued common stock warrants as a part of the Veritas Acquisition as purchase consideration. The common stock warrants issued grant holders the right to purchase 1,939,998 shares of the Company’s common stock at an exercise price equal to $28.30 per share (subject to certain adjustments), which are generally exercisable from April 27, 2022 until January 27, 2029. The fair value of the common stock warrants consideration was determined by utilizing an Option Pricing Model. These non-recurring fair value measurements are primarily determined using inputs that are observable or can be corroborated by observable market data (Level 2 inputs). The Company accounts for acquisitions of oil and natural gas properties under the acquisition method of accounting. Accordingly, the Company conducts assessments of net assets acquired and recognizes amounts for identifiable assets acquired and liabilities assumed at the estimated acquisition date fair values, while transaction costs associated with the acquisitions are expensed as incurred. The Company makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. The most significant assumptions relate to the estimated fair value of oil and natural gas properties. The fair value of these properties is measured using a discounted cash flow model that converts future cash flows to a single discounted amount. These assumptions represent Level 3 inputs under the fair value hierarchy. See Note 3 for additional discussion of the Company’s acquisitions of oil and natural gas properties during the year ended December 31, 2022 and discussion of the significant inputs to the valuations. 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, 2022 and 2021. |
DERIVATIVE INSTRUMENTS AND PRIC
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT | DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT The Company utilizes various commodity price derivative instruments to (i) reduce the effects of volatility in price changes on the crude oil and natural gas 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. In addition, from time to time the Company utilizes interest rate swaps to mitigate exposure to changes in interest rates on the Company’s variable-rate indebtedness. All derivative instruments are recorded in the Company’s balance sheet as either assets or liabilities measured at their fair value (see Note 11). The Company has not designated any derivative instruments as hedges for accounting purposes and does not enter into such instruments for speculative trading purposes. If a derivative does not qualify as a hedge or is not designated as a hedge, the changes in the fair value are recognized in the Company’s statements of operations as a gain or loss on derivative instruments. Mark-to-market gains and losses represent changes in fair values of derivatives that have not been settled. The Company’s cash flow is only impacted when the actual settlements under the derivative contracts result in making or receiving a payment to or from the counterparty. These cash settlements represent the cumulative gains and losses on the Company’s derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. The Company has master netting agreements on individual derivative instruments with certain counterparties and therefore the current asset and liability are netted in the balance sheet and the non-current asset and liability are netted in the balance sheet for contracts with these counterparties. Commodity Derivative Instruments The following table presents settlements on commodity derivative instruments and unsettled gains and losses on open commodity derivative instruments for the periods presented which is recorded in the revenue section of our financial statements: Year ended December 31, (In thousands) 2022 2021 2020 Cash Received (Paid) on Settled Derivatives $ (455,450) $ (165,823) $ 188,264 Non-Cash Mark-to-Market Gain (Loss) on Derivatives 40,187 (312,370) 39,878 Gain (Loss) on Commodity Derivatives, Net $ (415,262) $ (478,193) $ 228,141 The following table summarizes open commodity derivative positions as of December 31, 2022, for commodity derivatives that were entered into through December 31, 2022, for the settlement period presented: 2023 2024 2025 2026 Oil: WTI NYMEX - Swaps: Volume (Bbl) 7,689,250 2,177,775 — — Weighted-Average Price ($/Bbl) $ 75.30 $ 75.98 $ — $ — WTI NYMEX - Swaptions (1) : Volume (Bbl) — 2,424,750 684,375 1,827,920 Weighted-Average Price ($/Bbl) $ — $ 67.61 $ 61.68 $ 62.29 WTI NYMEX - Call Options (1) : Volume (Bbl) 730,000 4,362,210 2,647,345 — Weighted-Average Price ($/Bbl) $ 63.48 $ 62.71 $ 71.54 $ — WTI NYMEX - Collars: Volume (Bbl) 3,816,000 1,989,250 478,500 — Weighted-average floor price (Bbl) $ 74.45 $ 69.91 $ 70.00 $ — Weighted-average ceiling price (Bbl) $ 89.43 $ 86.15 $ 78.62 $ — Natural Gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 18,921,000 9,040,000 — — Weighted-Average Price ($/MMBtu) $ 4.54 $ 4.19 $ — $ — Waha Swaps: Volume (MMBtu) 2,250,000 — — — Weighted-Average Price ($/MMBtu) $ 3.69 $ — $ — $ — Waha Inside FERC to Henry Hub - Basis Swaps: Volume (MMBtu) 2,105,000 2,562,000 2,128,000 — Weighted-Average Differential ($/MMBtu) $ (1.52) $ (1.53) $ (1.53) $ — Henry Hub NYMEX - Call Options: Volume (MMBtu) — 5,490,000 5,475,000 — Weighted-Average Price ($/MMBtu) $ — $ 3.87 $ 3.87 Henry Hub NYMEX - Collars: Volume (MMBtu) 18,187,500 1,820,000 Weighted-average floor price ($/MMBtu) $ 4.16 $ 4.00 $ — $ — Weighted-average ceiling price ($/MMBtu) $ 6.76 $ 8.02 $ — $ — NE - TETCO M2 - Basis Swaps: Volume (MMBtu) 15,040,000 3,660,000 — — Weighted-Average Differential ($/MMBtu) $ (1.04) $ (1.24) $ — $ — ______________ (1) Swaptions are crude oil derivative contracts that give counterparties the option to extend certain derivative contracts for additional periods. Call Options are crude oil derivative contracts sold by the Company that give counterparties the option to exercise certain derivative contracts. The volumes and prices reflected as Swaptions and Call Options in this table will only be effective if the options are exercised by the applicable counterparties. Interest Rate Derivative Instruments The Company uses interest rate swaps to effectively convert a portion of its variable rate indebtedness to fixed rate indebtedness. As of December 31, 2022, the Company had interest rate swaps with a total notional amount of $100.0 million. The settlement of these derivative instruments is recognized as a component of interest expense in the statements of operations. The mark-to-market component of these derivative instruments is recognized in gain (loss) on unsettled interest rate derivatives, net in the statements of operations. Other Information Regarding Derivative Instruments The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at December 31, 2022 and 2021, respectively. Certain amounts may be presented on a net basis on the financial statements when such amounts are with the same counterparty and subject to a master netting arrangement: (In thousands) December 31, Type of Commodity Balance Sheet Location 2022 2021 Derivative Assets: Commodity Price Swap Contracts Current Assets $ 30,513 $ 4,272 Commodity Basis Swap Contracts Current Assets 5,620 1,916 Interest Rate Swap Contracts Current Assets 1,017 89 Commodity Price Swaptions Contracts Current Assets — 3,020 Commodity Price Collar Contracts Current Assets 40,652 1,963 Commodity Price Swap Contracts Noncurrent Assets 11,490 3,619 Commodity Basis Swap Contracts Noncurrent Assets 547 309 Commodity Price Collar Contracts Noncurrent Assets 29,538 407 Interest Rate Swap Contracts Noncurrent Assets — 123 Total Derivative Assets $ 119,377 $ 15,719 Derivative Liabilities: Commodity Price Swap Contracts Current Liabilities $ (53,386) $ (138,389) Commodity Basis Swap Contracts Current Liabilities (4,407) (1,309) Commodity Price Swaptions Contracts Current Liabilities — (3,020) Interest Rate Swap Contracts Current Liabilities — (189) Commodity Price Collar Contracts Current Liabilities (29,218) (119) Commodity Price Call Option Contracts Current Liabilities (13,916) — Commodity Price Swap Contracts Noncurrent Liabilities (8,343) (8,465) Commodity Basis Swap Contracts Noncurrent Liabilities (3,071) (823) Commodity Price Collar Contracts Noncurrent Liabilities (33,210) (275) Commodity Price Call Option Contracts Noncurrent Liabilities (132,794) (71,815) Commodity Price Swaptions Contracts Noncurrent Liabilities (77,515) (68,980) Total Derivative Liabilities $ (355,860) $ (293,383) 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 in the balance sheet. The tables presented below provide reconciliation between the gross assets and liabilities and the amounts reflected in the balance sheet. The amounts presented exclude derivative settlement receivables and payables as of the balance sheet dates. Estimated Fair Value at December 31, 2022 (In thousands) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset on the Net Amounts of Assets (Liabilities) Presented on the Balance Sheet Offsetting of Derivative Assets: Current Assets $ 77,802 $ (42,509) $ 35,293 Non-Current Assets 41,575 (29,028) 12,547 Total Derivative Assets $ 119,377 $ (71,537) $ 47,840 Offsetting of Derivative Liabilities: Current Liabilities $ (100,927) $ 42,509 $ (58,418) Non-Current Liabilities (254,933) 29,028 (225,905) Total Derivative Liabilities $ (355,860) $ 71,537 $ (284,324) Estimated Fair Value at December 31, 2021 (In thousands) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset on the Net Amounts of Assets (Liabilities) Presented on the Balance Sheet Offsetting of Derivative Assets: Current Assets $ 11,261 $ (8,742) $ 2,519 Non-Current Assets 4,458 (2,595) 1,863 Total Derivative Assets $ 15,719 $ (11,337) $ 4,382 Offsetting of Derivative Liabilities: Current Liabilities $ (143,025) $ 8,742 $ (134,283) Non-Current Liabilities (150,357) 2,595 (147,762) Total Derivative Liabilities $ (293,383) $ 11,337 $ (282,045) All of the Company’s outstanding derivative instruments are covered by International Swap Dealers Association Master Agreements (“ISDAs”) entered into with parties that are also lenders under the Company’s Revolving Credit Facility. The Company’s obligations under the derivative instruments are secured pursuant to the Revolving Credit Facility, and no additional collateral had been posted by the Company as of December 31, 2022. The ISDAs may provide that as a result of certain circumstances, such as cross-defaults, a counterparty may require all outstanding derivative instruments under an ISDA to be settled immediately. See Note 11 for the aggregate fair value of all derivative instruments that were in a net liability position at December 31, 2022 and 2021. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREThe reconciliation of the numerators and denominators used to calculate basic EPS and diluted EPS for the years ended December 31, 2022, 2021 and 2020 are as follows: December 31, (In thousands, except share and per share data) 2022 2021 2020 Net Income (Loss) $ 773,237 $ 6,361 $ (906,041) Less: Cumulative Dividends on Preferred Stock 9,803 14,761 15,266 Less: Premium on Repurchase of Preferred Stock 35,731 — — Net Income (Loss) Attributable to Common Stock $ 727,703 $ (8,400) $ (921,307) Weighted Average Common Shares Outstanding: Weighted Average Common Shares Outstanding – Basic 78,557,216 62,989,543 42,744,639 Plus: Dilutive Effect of Restricted Stock, Preferred Stock, and Common Stock Warrants 8,118,149 — — Weighted Average Common Shares Outstanding – Diluted 86,675,365 62,989,543 42,744,639 Net Income (Loss) per Common Share: Basic $ 9.26 $ (0.13) $ (21.55) Diluted $ 8.92 $ (0.13) $ (21.55) For the years ended December 31, 2021 and 2020, the Company’s potentially dilutive securities, which include restricted stock and convertible preferred shares, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. As of December 31, 2022, the conversion spread for the Convertible Notes were anti-dilutive as the average market price of the Company’s common stock for a given period did not exceed the conversion price. The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect: December 31, 2022 2021 2020 Restricted Stock Awards — 150,011 98,595 Series A Preferred Stock (if converted) — 9,758,871 9,899,376 Warrants — 468,325 — Total — 10,377,207 9,997,971 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS MPDC Acquisition On January 5, 2023, the Company completed its previously announced acquisition of certain oil and gas properties, interests and related assets from Midland Petro D.C. Partners, LLC and Collegiate Midstream LLC (collectively, “MPDC”), effective as of August 1, 2022. At closing, the Company acquired a 39.958% working interest in MPDC’s four-unit development project in the Permian Midland Basin. The total estimated closing consideration consisted of $320.0 million in cash (which included a $43.0 million cash deposit previously paid by the Company into escrow in October 2022). The cash closing payment is net of preliminary and customary purchase price adjustments and remains subject to final post-closing settlement between the Company and MPDC. The Company has considered the disclosure requirements of ASC 805-10-50-2 and ASC 805-10-50-4 but has not included the required disclosures due to the timing of the transaction relative to the date of the report containing these financial statements. |
SUPPLEMENTAL OIL AND GAS INFORM
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) | SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) Oil and Natural Gas Exploration and Production Activities Oil and natural 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. December 31, (In thousands) 2022 2021 2020 Costs Incurred for the Year: Proved Property Acquisition and Other $ 1,036,412 $ 434,519 $ 50,345 Unproved Property Acquisition 51,097 19,358 770 Development 386,972 202,325 162,797 Total $ 1,474,482 $ 656,202 $ 213,912 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, 2022 by year incurred. December 31, (In thousands) 2022 2021 2020 Prior Years Property Acquisition $ 17,659 $ 16,337 $ 160 $ 7,409 Development — — — — Total $ 17,659 $ 16,337 $ 160 $ 7,409 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 the Company and audited by Cawley, Gillespie & Associates, Inc., our third-party independent reserve engineers. Oil and Natural Gas Reserve Data The following tables present the Company’s 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. (In thousands) Natural Gas Oil BOE Proved Developed and Undeveloped Reserves at December 31, 2019 189,318 131,754 163,307 Revisions of Previous Estimates (21,512) (33,289) (36,874) Extensions, Discoveries and Other Additions 8,308 6,921 8,306 Production (16,473) (9,361) (12,107) Proved Developed and Undeveloped Reserves at December 31, 2020 159,641 96,025 122,632 Revisions of Previous Estimates 89,115 19,914 34,766 Extensions, Discoveries and Other Additions 32,432 12,759 18,164 Purchases of Minerals in Place 700,610 14,985 131,753 Production (44,074) (12,288) (19,634) Proved Developed and Undeveloped Reserves at December 31, 2021 937,724 131,395 287,682 Revisions of Previous Estimates (14,678) (2,787) (5,233) Extensions, Discoveries and Other Additions 54,431 22,563 31,635 Purchases of Minerals in Place 99,760 27,660 44,286 Production (68,829) (16,090) (27,562) Proved Developed and Undeveloped Reserves at December 31, 2022 1,008,407 162,741 330,808 Proved Developed Reserves: December 31, 2019 116,846 77,160 96,634 December 31, 2020 114,060 65,135 84,145 December 31, 2021 498,558 87,505 170,598 December 31, 2022 611,856 112,626 214,602 Proved Undeveloped Reserves: December 31, 2019 72,473 54,594 66,673 December 31, 2020 45,581 30,890 38,487 December 31, 2021 439,165 43,890 117,084 December 31, 2022 396,551 50,115 116,207 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. Notable changes in proved reserves for the year ended December 31, 2022 included the following: • Extensions and discoveries . In 2022, total extensions and discoveries of 31.6 MMBoe were primarily attributable to successful drilling operations as well as the addition of proved undeveloped locations. Included in these extensions and discoveries were 13.3 MMBoe as a result of successful drilling operations and 18.3 MMBoe as a result of additional proved undeveloped locations. • Purchases of minerals in place . In 2022, total purchases of minerals in place of 44.3 MMBoe were primarily attributable to acquisitions of oil and natural gas properties (see Note 3). • Revisions to previous estimates . In 2022, revisions to previous estimates decreased proved developed and undeveloped reserves by a net amount of 5.2 MMBoe. Included in these revisions were 10.2 MMBoe of upward adjustments caused by higher crude oil and natural gas prices, a 1.0 MMBoe downward adjustment attributable to increased operating costs and 14.4 MMBoe of downward adjustments related to the removal of undeveloped drilling locations related to the 5-year rule and other adjustments. Notable changes in proved reserves for the year ended December 31, 2021 included the following: • Extensions and discoveries . In 2021, total extensions and discoveries of 18.2 MMBoe were primarily attributable to successful drilling operations as well as the addition of proved undeveloped locations. Included in these extensions and discoveries were 4.9 MMBoe as a result of successful drilling operations and 13.3 MMBoe as a result of additional proved undeveloped locations. • Purchases of minerals in place . In 2021, total purchases of minerals in place of 131.8 MMBoe were primarily attributable to acquisitions of oil and natural gas properties (see Note 3). • Revisions to previous estimates . In 2021, revisions to previous estimates increased proved developed and undeveloped reserves by a net amount of 34.8 MMBoe. Included in these revisions were 50.2 MMBoe of upward adjustments caused by higher crude oil and natural gas prices, a 1.1 MMBoe downward adjustment attributable to well performance when comparing the Company’s reserve estimates at December 31, 2021 to December 31, 2020 and 14.2 MMBoe of downward adjustments related to the removal of undeveloped drilling locations related to the 5-year rule and other adjustments. Notable changes in proved reserves for the year ended December 31, 2020 included the following: • Extensions and discoveries . In 2020, total extensions and discoveries of 8.3 MMBoe were primarily attributable to successful drilling in the Williston Basin as well as the addition of proved undeveloped locations. Included in these extensions and discoveries were 3.1 MMBoe as a result of successful drilling in the Williston Basin and 5.2 MMBoe as a result of additional proved undeveloped locations. • Revisions to previous estimates . In 2020, revisions to previous estimates decreased proved developed and undeveloped reserves by a net amount of 36.9 MMBoe. Included in these revisions were 33.8 MMBoe of downward adjustments caused by lower crude oil and natural gas prices, a 0.7 MMBoe downward adjustment attributable to well performance when comparing the Company’s reserve estimates at December 31, 2020 to December 31, 2019 and 2.3 MMBoe of downward adjustments related to the removal of undeveloped drilling locations related to the 5-year rule. 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 to proved crude oil and natural gas were prepared in accordance with the provisions of ASC 932 Extractive Activities - Oil and Gas . 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. December 31, (In thousands) 2022 2021 2020 Future Cash Inflows $ 22,452,776 $ 11,339,861 $ 3,395,670 Future Production Costs (6,820,784) (4,213,186) (1,747,325) Future Development Costs (1,145,225) (932,480) (416,507) Future Income Tax Expense (2,764,111) (947,303) (3,273) Future Net Cash Inflows $ 11,722,656 $ 5,246,892 $ 1,228,565 10% Annual Discount for Estimated Timing of Cash Flows (5,285,758) (2,356,783) (516,554) Standardized Measure of Discounted Future Net Cash Flows $ 6,436,898 $ 2,890,109 $ 712,011 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 MCF Oil Bbl December 31, 2022 $ 7.43 $ 91.95 December 31, 2021 $ 3.37 $ 62.25 December 31, 2020 $ 1.61 $ 32.69 The expected tax benefits to be realized from utilization of the net operating loss and tax credit carryforwards are used in the computation of future income tax cash flows. As a result of available net operating loss carryforwards and the remaining tax basis of its assets at December 31, 2022, the Company’s future income taxes were significantly reduced. Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum follow: December 31, (In thousands) 2022 2021 2020 Beginning of Period $ 2,890,109 $ 712,011 $ 1,678,061 Sales of Oil and Natural Gas Produced, Net of Production Costs (1,566,927) (727,317) (177,932) Extensions and Discoveries 888,067 258,399 52,232 Previously Estimated Development Cost Incurred During the Period 147,439 85,526 78,633 Net Change of Prices and Production Costs 3,424,794 1,366,197 (815,278) Change in Future Development Costs 141,884 (103,806) (150,991) Revisions of Quantity and Timing Estimates (134,880) 607,774 (280,481) Accretion of Discount 334,109 71,254 182,202 Change in Income Taxes (1,014,277) (450,455) 143,438 Purchases of Minerals in Place 1,157,060 940,910 — Other 169,521 129,615 19,902 End of Period $ 6,436,898 $ 2,890,109 $ 712,011 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 reserves, which includes limited control over future development plans as a non-operator, estimates relating to certain crude oil and natural gas revenues and expenses, fair value of derivative instruments, fair value of contingent consideration, acquisition date fair values of assets acquired and liabilities assumed, impairment of crude oil and natural gas properties, asset retirement obligations and deferred income taxes. Management’s estimates and assumptions were based on historical data and consideration of future market conditions. Given the uncertainty inherent in any projection, actual results may differ from the estimates and assumptions used, and conditions may change, which could materially affect amounts reported in the financial statements. |
Reclassifications | Reclassifications Certain prior period balances in the statements of cash flows have been reclassified to conform to the current year presentation. Such reclassifications had no impact on net income (loss), cash flows or stockholders’ equity (deficit) previously reported. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company 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. The Company’s cash positions represent assets held in checking and money market accounts. Cash and cash equivalents are generally available on a daily or weekly basis and are highly liquid in nature. |
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 balances. Accounts receivable not expected to be collected within the next twelve months are included within Other Noncurrent Assets, Net in the balance sheets. |
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 EquipmentProperty 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 |
Oil and Gas Properties | Oil and Gas Properties The Company 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 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 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, 2022, 2021 and 2020, respectively: December 31, (In thousands) 2022 2021 2020 Capitalized Certain Payroll and Other Internal Costs $ 1,045 $ 1,353 $ 1,159 Capitalized Interest Costs 3,365 1,103 556 Total $ 4,410 $ 2,456 $ 1,716 As of December 31, 2022, the Company held leasehold and other oil and gas interests in the United States in the Williston Basin, Permian Basin and Appalachian Basin. 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, 2022, 2021 and 2020, there were no property sales that resulted in a significant alteration. Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the net book value of the proved oil and gas properties. Net capitalized costs are limited to the lower of unamortized cost net of deferred income taxes, or the cost center ceiling. The proved oil and natural gas properties, net balance was $2.5 billion as of December 31, 2022. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, based on the trailing twelve-month unweighted average of the first-day-of-the-month price, adjusted for any contract provisions or financial derivatives designated as hedges for accounting purposes, if any, that hedge the Company’s oil and natural gas revenue, and excluding the estimated abandonment costs for properties with asset retirement obligations recorded in the balance sheet, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized, including related deferred taxes for differences between the book and tax basis of the oil and natural gas properties. If the net book value, including related deferred taxes, exceeds the ceiling, an impairment or non-cash writedown is required. The Company did not have any ceiling test impairment for the years ended December 31, 2022 and 2021. The Company recorded a ceiling test impairment of $1,066.7 million for the year ended December 31, 2020. Impairment charges affect the Company’s reported net income but do not reduce the Company’s cash flow. The Company computes the provision for depletion of oil and natural gas properties using the unit-of-production method based upon production and estimates of proved reserve quantities. Unproved costs and related carrying costs are excluded from the depletion base until the properties associated with these costs are considered proved or impaired. The following table presents depletion and depletion per BOE sold of the Company’s proved oil and natural gas properties for the periods presented: Year Ended December 31, (In thousands) 2022 2021 2020 Depletion of Proved Oil and Natural Gas Properties $ 248,252 $ 138,759 $ 160,643 Depletion per BOE Produced $ 9.01 $ 7.07 $ 13.27 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. |
Asset Retirement Obligations | Asset Retirement Obligations The Company records a liability equal to the fair value of the estimated cost to retire an asset upon initial recognition. The asset retirement liability is recorded in the period in which the obligation meets the definition of a liability, which is generally when the asset is placed into service. When the liability is initially recorded, the Company increases the carrying amount of oil and natural gas properties by an amount equal to the original liability. The liability is accreted to its present value each period, and the capitalized cost is depreciated consistent with depletion of reserves. Upon settlement of the liability or the sale of the well, the liability is relieved. These liability amounts may change because of changes in asset lives, estimated costs of abandonment or legal or statutory remediation requirements. |
Business Combinations | Business Combinations The Company accounts for its acquisitions that qualify as a business using the acquisition method. Under the acquisition method, assets acquired and liabilities assumed are recognized and measured at their fair values. The use of fair value accounting requires the use of significant judgment since some transaction components do not have fair values that are readily determinable. The excess, if any, of the purchase price over the net fair value amounts assigned to assets acquired and liabilities assumed is recognized as goodwill. Conversely, if the fair value of assets acquired exceeds the purchase price, including liabilities assumed, the excess is immediately recognized in earnings as a bargain purchase gain. |
Financial Instruments | Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, receivables, payables, commodity derivative assets and liabilities, contingent consideration, and long-term debt. The carrying amounts of cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. The fair values of the Company’s derivative instruments assets and liabilities are based on a third-party industry-standard pricing model using contract terms and prices and assumptions and inputs that are substantially observable in active markets throughout the full term of the instruments, including forward oil price curves, discount rates, volatility factors and credit risk adjustments. The fair values of the Company’s contingent consideration liabilities are determined by a third-party valuation specialist using Monte Carlo simulations that include observable market data. 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 or 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. Financial Assets and Liabilities Commodity Derivatives. The Level 2 instruments presented in the tables above consist of commodity derivative instruments (see Note 12). The fair value of the Company’s commodity derivative 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 commodity derivative contracts is reflected in the balance sheet. The current derivative asset and liability amounts represent the fair values expected to be settled in the subsequent twelve months. Interest Rate Derivatives. The Level 2 instruments presented in the tables above consist of interest rate derivative instruments (see Note 12). The fair value of the Company’s interest rate derivative instruments is determined based upon contracted notional amounts, active market-quoted interest yield curves, and time to maturity, among other things. Counterparty statements are utilized to determine the value of the interest rate 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 interest rate derivative contracts is reflected in the balance sheets. The current derivative asset and liability amounts represent the fair values expected to be settled in the subsequent twelve months. Contingent Consideration. These Level 2 instruments presented in the tables above consist of contingent consideration liabilities potentially payable by the Company in connection with both the Incline Acquisition and the Alpha Acquisition (see Note 3). The fair value of these liabilities was estimated using observable market data (NYMEX WTI forward price curve) and Monte Carlo simulation models. The acquisition date fair values were recorded within contingent consideration liabilities on the Company’s balance sheets. Changes in the fair value of the liability (that are not accounted for as revisions of the acquisition date fair value) are recorded in other income (expense) on the Company’s statement of operations. Fair Value of Other Financial Instruments The carrying amounts of cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. Non-Financial Assets and Liabilities The initial measurement of AROs at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and natural gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the AROs liability is deemed to use Level 3 inputs. AROs incurred and acquired during the year ended December 31, 2022 were approximately $3.2 million. The Company issued common stock warrants as a part of the Veritas Acquisition as purchase consideration. The common stock warrants issued grant holders the right to purchase 1,939,998 shares of the Company’s common stock at an exercise price equal to $28.30 per share (subject to certain adjustments), which are generally exercisable from April 27, 2022 until January 27, 2029. The fair value of the common stock warrants consideration was determined by utilizing an Option Pricing Model. These non-recurring fair value measurements are primarily determined using inputs that are observable or can be corroborated by observable market data (Level 2 inputs). The Company accounts for acquisitions of oil and natural gas properties under the acquisition method of accounting. Accordingly, the Company conducts assessments of net assets acquired and recognizes amounts for identifiable assets acquired and liabilities assumed at the estimated acquisition date fair values, while transaction costs associated with the acquisitions are expensed as incurred. The Company makes various assumptions in estimating the fair values of assets acquired and liabilities assumed. The most significant assumptions relate to the estimated fair value of oil and natural gas properties. The fair value of these properties is measured using a discounted cash flow model that converts future cash flows to a single discounted amount. These assumptions represent Level 3 inputs under the fair value hierarchy. See Note 3 for additional discussion of the Company’s acquisitions of oil and natural gas properties during the year ended December 31, 2022 and discussion of the significant inputs to the valuations. |
Debt Issuance Costs | Debt Issuance Costs Debt issuance costs related to our Senior Notes and Convertible Notes are included as a deduction from the carrying amount of long-term debt in the balance sheets and are amortized to interest expense using the effective interest method over the term of the related debt. Debt issuance costs related to the Revolving Credit Facility are included in other noncurrent assets and are amortized to interest expense on a straight-line basis over the term of the agreement. |
Debt Premiums | Debt Premiums Debt premiums related to the Company’s Senior Notes are included as an addition to the carrying amount of the long-term debt in the balance sheets and are amortized to interest expense using the effective interest method over the term of the related notes. |
Revenue Recognition | Revenue Recognition The Company’s revenues are primarily derived from its interests in the sale of oil and natural gas production. The Company recognizes revenue from its interests in the sales of crude oil and natural gas in the period that its performance obligations are satisfied. Performance obligations are satisfied when the customer obtains control of the product, when the Company has no further obligations to perform related to the sale, when the transaction price has been determined and when collectability is probable. The sales of oil and natural gas are made under contracts which the third-party operators of the wells have negotiated with customers, which typically include variable consideration that is based on pricing tied to local indices and volumes delivered in the current month. The Company receives payment from the sale of oil and natural gas production from one to three months after delivery. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in trade receivables, net in the balance sheets. Variances between the Company’s estimated revenue and actual payments are recorded in the month the payment is received, however, differences have been and are insignificant. Accordingly, the variable consideration is not constrained. The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical exemption, which applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied, and disclosure of the transaction price allocated to remaining performance obligations is not required. The Company’s oil is typically sold at delivery points under contracts terms that are common in our industry. The Company’s natural gas produced is delivered by the well operators to various purchasers at agreed upon delivery points under a limited number of contract types that are also common in our industry. Regardless of the contract type, the terms of these contracts compensate the well operators for the value of the oil and natural gas at specified prices, and then the well operators will remit payment to the Company for its share in the value of the oil and natural gas sold. A wellhead imbalance liability equal to the Company’s share is recorded to the extent that the Company’s well operators have sold volumes in excess of its share of remaining reserves in an underlying property. However, for the years ended December 31, 2022, 2021 and 2020, 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, Credit Risk and Other Risks | Concentrations of Market, Credit Risk and Other Risks 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, indirectly via the third-party operators of the wells, from purchasers of its crude oil and natural gas production. While certain of these customers, as well as third-party operators of the wells, 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 have been immaterial. As a non-operator, 100% of the Company’s wells are operated by third-party operating partners. As a result, the Company is highly dependent on the success of these third-party operators. If they are not successful in the development, exploitation, production and exploration activities relating to the Company’s leasehold interests, or are unable or unwilling to perform, the Company’s financial condition and results of operation could be adversely affected. These risks are heightened in a low commodity price environment, which may present significant challenges to these third-party operators. The Company’s third-party operators will make decisions in connection with their operations that may not be in the Company’s best interests, and the Company may have little or no ability to exercise influence over the operational decisions of its third-party operators. For the years ended December 31, 2022, 2021 and 2020, the Company’s top four operators made up 39%, 50% and 49%, respectively, of total oil and natural gas sales. The Company faces concentration risk due to the fact that a majority of its oil and natural gas revenue is sourced from North Dakota. Acquisitions since 2021 have diversified the Company’s portfolio to include New Mexico, Pennsylvania, and Texas, but the Company remains disproportionately exposed to risks affecting a limited number of geographic areas of operations. 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 counterparties is generally high. In the |
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. In determining the fair value of performance-based share awards subject to market conditions, the Company utilizes a Monte Carlo simulation prepared by an independent third-party. 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. |
Treasury Stock | Treasury Stock Treasury stock is recorded at cost, which includes incremental direct transaction costs, and is retired upon acquisition as a result of share repurchases under the share repurchase program or from the withholding of shares of stock to satisfy employee tax withholding obligations that arise upon the lapse of restrictions on their stock-based awards at the employees’ election. |
Income Taxes | Income Taxes The Company’s income tax expense, deferred tax assets and deferred tax liabilities reflect management’s best assessment of estimated current and future taxes to be paid. The Company estimates for each interim reporting period the effective tax rate expected for the full fiscal year and uses that estimated rate in providing for income taxes on a current year-to-date basis. The Company’s only taxing jurisdictions are the United States and the US states in which we operate. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results and incorporates assumptions about the amount of future state and federal pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates the Company is using to manage the underlying businesses. 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. In assessing the need for a valuation allowance for the Company’s deferred tax assets, a significant item of negative evidence considered was the cumulative book losses in recent years, driven primarily by the full cost ceiling impairments over that period. Additionally, the Company’s revenue, profitability and future growth are substantially dependent upon prevailing and future prices for oil and natural gas. The markets for these commodities continue to be volatile. Changes in oil and natural gas prices have a significant impact on the value of the Company’s reserves and on its cash flows. Due to these factors, management has placed a lower weight on the prospect of future earnings in its overall analysis of the valuation allowance. Accordingly, the valuation allowance against the Company’s deferred tax asset at December 31, 2022 and 2021 was $156.3 million and $341.3 million, respectively. |
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 and natural gas commodities. 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 the applicable commodity without the exchange of underlying volumes. The notional amounts of these financial instruments are based on expected production from existing wells. The Company may also use exchange traded futures contracts and option contracts to hedge the delivery price of commodities at a future date. The Company recognizes derivative instruments as assets or liabilities in the balance sheet, measured at fair value and marked-to-market at the end of each period. Any realized gains and losses on settled derivatives, as well as mark-to-market gains or losses, are aggregated and recorded to gain (loss) on derivative instruments, net on the statements of operations. See Note 12 for a description of the derivative contracts into which the Company has entered. The Company utilizes various commodity price derivative instruments to (i) reduce the effects of volatility in price changes on the crude oil and natural gas 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. In addition, from time to time the Company utilizes interest rate swaps to mitigate exposure to changes in interest rates on the Company’s variable-rate indebtedness. All derivative instruments are recorded in the Company’s balance sheet as either assets or liabilities measured at their fair value (see Note 11). The Company has not designated any derivative instruments as hedges for accounting purposes and does not enter into such instruments for speculative trading purposes. If a derivative does not qualify as a hedge or is not designated as a hedge, the changes in the fair value are recognized in the Company’s statements of operations as a gain or loss on derivative instruments. Mark-to-market gains and losses represent changes in fair values of derivatives that have not been settled. The Company’s cash flow is only impacted when the actual settlements under the derivative contracts result in making or receiving a payment to or from the counterparty. These cash settlements represent the cumulative gains and losses on the Company’s derivative instruments for the periods presented and do not include a recovery of costs that were paid to acquire or modify the derivative instruments that were settled. The Company has master netting agreements on individual derivative instruments with certain counterparties and therefore the current asset and liability are netted in the balance sheet and the non-current asset and liability are netted in the balance sheet for contracts with these counterparties. |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors a 401(k) defined contribution plan for the benefit of substantially all employees at the date of hire. The plan allows eligible employees to make pre-tax contributions up to 100% of their annual compensation, not to exceed annual limits established by the federal government. Employees are 100% vested in the employer contributions upon receipt. |
Net Income (Loss) Per Common Share | Net Income (Loss) Per Common Share Basic earnings per share (“EPS”) are computed by dividing net income (loss) attributable to common stockholders (the numerator) by the weighted average number of common shares outstanding for the period (the denominator). Diluted EPS is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares and potential common shares outstanding (if dilutive) during each period. Potential common shares include shares issuable upon exercise of stock options or warrants and vesting of restricted stock awards, and shares issuable upon conversion of the Series A Preferred Stock (see Note 5). The number of potential common shares outstanding are calculated using the treasury stock or if-converted method. In those reporting periods in which the Company has reported net income available to common stockholders, anti-dilutive shares generally are comprised of the restricted stock that has average unrecognized stock compensation expense greater than the average stock price. In those reporting periods in which the Company has a net loss, anti-dilutive shares are comprised of the impact of those number of shares that would have been dilutive had the Company had net income plus the number of common stock equivalents that would be anti-dilutive had the company had net income. |
New Accounting Pronouncements | Adopted and Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“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. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) followed by ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope (“ASU 2021-01”), issued in January 2021 to provide clarifying guidance regarding the scope of Topic 848. ASU 2020-04 was issued to provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. Generally, the guidance is to be applied as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. ASU 2020-04 and ASU 2021-01 are effective for all entities through December 31, 2022. The Company has not elected to use the optional guidance and continues to evaluate the options provided by ASU 2020-04 and ASU 2021-01 and the impact the new standard will have on its financial statements and related disclosure. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of 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, 2022, 2021 and 2020, respectively: December 31, (In thousands) 2022 2021 2020 Capitalized Certain Payroll and Other Internal Costs $ 1,045 $ 1,353 $ 1,159 Capitalized Interest Costs 3,365 1,103 556 Total $ 4,410 $ 2,456 $ 1,716 The costs incurred in crude oil and natural gas acquisition, exploration and development activities are highlighted in the table below. December 31, (In thousands) 2022 2021 2020 Costs Incurred for the Year: Proved Property Acquisition and Other $ 1,036,412 $ 434,519 $ 50,345 Unproved Property Acquisition 51,097 19,358 770 Development 386,972 202,325 162,797 Total $ 1,474,482 $ 656,202 $ 213,912 December 31, (In thousands) 2022 2021 2020 Prior Years Property Acquisition $ 17,659 $ 16,337 $ 160 $ 7,409 Development — — — — Total $ 17,659 $ 16,337 $ 160 $ 7,409 |
Schedule of Depletion and Depletion Per BOE Sold | The following table presents depletion and depletion per BOE sold of the Company’s proved oil and natural gas properties for the periods presented: Year Ended December 31, (In thousands) 2022 2021 2020 Depletion of Proved Oil and Natural Gas Properties $ 248,252 $ 138,759 $ 160,643 Depletion per BOE Produced $ 9.01 $ 7.07 $ 13.27 |
Schedule of Disaggregation of Revenue | The following tables present the disaggregation of the Company’s oil revenues and natural gas and NGL revenues by basin for the years ended December 31, 2022, 2021 and 2020. Twelve Months Ended December 31, 2022 (In thousands) Williston Permian Appalachian Total Oil Revenues $ 1,058,878 $ 415,732 $ — $ 1,474,610 Natural Gas and NGL Revenues 260,462 116,034 134,692 511,188 Total $ 1,319,340 $ 531,766 $ 134,692 $ 1,985,798 Twelve Months Ended December 31, 2021 (In thousands) Williston Permian Appalachian Total Oil Revenues $ 730,982 $ 42,488 $ — $ 773,470 Natural Gas and NGL Revenues 141,425 7,386 52,808 201,619 Total $ 872,407 $ 49,874 $ 52,808 $ 975,089 Twelve Months Ended December 31, 2020 (In thousands) Williston Permian Appalachian Total Oil Revenues $ 304,754 $ 495 $ — $ 305,249 Natural Gas and NGL Revenues 18,773 30 — 18,802 Total $ 323,527 $ 525 $ — $ 324,052 |
Schedule of Supplemental Cash Flow Information | The following reflects the Company’s supplemental cash flow information for the years ended December 31, 2022, 2021 and 2020 : December 31, (In thousands) 2022 2021 2020 Supplemental Cash Items: Cash Paid During the Period for Interest, Net of Amount Capitalized $ 74,933 $ 46,951 $ 55,109 Cash Paid During the Period for Income Taxes 3,672 — — Non-cash Investing Activities: Oil and Natural Gas Properties Included in Accounts Payable and Accrued Liabilities 163,059 111,897 88,564 Capitalized Asset Retirement Obligations 3,917 6,950 710 Contingent Consideration 11,966 785 324 Compensation Capitalized on Oil and Gas Properties 218 282 495 Issuance of Common Stock Warrants - Acquisitions of Oil and Natural Gas Properties 17,870 30,512 — Issuance of Common Stock - Acquisitions of Oil and Natural Gas Properties — — 1,537 Other Property and Equipment Included in Accounts Payable — 578 — Non-cash Financing Activities: Common Stock Dividends Declared, but not paid 19,546 6,210 — Issuance of Preferred Stock in Exchange for 8.5% Second Lien Notes due 2023 — — 81,212 Issuance of Common Stock for 2L Notes Repurchase — — 37,169 Issuance of Common Stock for Preferred Stock Exchange 36,627 — 1,113 Issuance of Common Stock Warrants - Acquisitions of Oil and Natural Gas Properties 17,870 — — Issuance of Common Stock in Exchange for Warrants 76,904 — — |
CRUDE OIL AND NATURAL GAS PRO_2
CRUDE OIL AND NATURAL GAS PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Schedule of Fair Values of the Net Assets and Liabilities as of the Date of Acquisition | The following table reflects the initial fair values of the net assets and liabilities: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 383,755 Unproved oil and natural gas properties 26,262 Total assets acquired 410,017 Asset retirement obligations (1,219) Net assets acquired $ 408,798 Fair value of consideration paid for net assets: Cash consideration $ 390,928 Issuance of Common Stock Warrants (1.9 million shares at $28.30 per share) 17,870 Total fair value of consideration transferred $ 408,798 (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 160,155 Total assets acquired 160,155 Asset retirement obligations (319) Net assets acquired $ 159,836 Fair value of consideration paid for net assets: Cash consideration $ 157,977 Contingent consideration 1,850 Total fair value of consideration transferred $ 159,827 (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 110,258 Total assets acquired 110,258 Asset retirement obligations (187) Net assets acquired $ 110,071 Fair value of consideration paid for net assets: Cash consideration $ 110,071 Total fair value of consideration transferred $ 110,071 (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 164,300 Total assets acquired 164,300 Asset retirement obligations (278) Net assets acquired $ 164,023 Fair value of consideration paid for net assets: Cash consideration $ 153,916 Contingent consideration 10,107 Total fair value of consideration transferred $ 164,023 (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 131,773 Total assets acquired 131,773 Asset retirement obligations (155) Net assets acquired $ 131,618 Fair value of consideration paid for net assets: Cash consideration $ 131,618 Total fair value of consideration transferred $ 131,618 (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 139,644 Unproved oil and natural gas properties 10,912 Total assets acquired $ 150,556 Asset retirement obligations (6,549) Minimum volume commitment liability (3,443) Net assets acquired $ 140,564 Fair value of consideration paid for net assets: Cash consideration $ 110,052 Issuance of Warrants (3.2 million shares at $14.00 per share) 30,512 Total fair value of consideration transferred $ 140,564 The following table reflects the fair values of the net assets and liabilities as of the date of acquisition: (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 101,869 Total assets acquired $ 101,869 Asset retirement obligations (179) Net assets acquired $ 101,691 Fair value of consideration paid for net assets: Cash consideration $ 101,691 Total fair value of consideration transferred $ 101,691 |
Schedule of Unaudited Pro Forma Information | The summarized unaudited pro forma information may not be indicative of the results that would have occurred had the Company completed the acquisitions as of January 1, 2021, or that would be attained in the future. Year Ended December 31, Year Ended December 31, (In thousands) 2022 2021 Total Revenues $ 1,747,105 $ 729,487 Net Income $ 904,583 $ 124,294 |
Schedule of Capitalized Costs Excluded from Depletion | The following is a summary of capitalized costs excluded from depletion at December 31, 2022 by year incurred. December 31, (In thousands) 2022 2021 2020 Prior Years Property Acquisition $ 17,659 $ 16,337 $ 160 $ 7,409 Development — — — — Total $ 17,659 $ 16,337 $ 160 $ 7,409 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | The Company’s long-term debt consists of the following: December 31, 2022 (In thousands) Principal Balance Unamortized Net Premium Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 319,000 $ — $ — $ 319,000 Senior Notes 724,235 10,682 (11,946) 722,972 Convertible Notes 500,000 — (16,558) 483,442 Total $ 1,543,235 $ 10,682 $ (28,504) $ 1,525,413 December 31, 2021 Principal Balance Unamortized Net Premium Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 55,000 $ — $ — $ 55,000 Senior Notes 750,000 13,217 (14,780) 748,437 Total $ 805,000 $ 13,217 $ (14,780) $ 803,437 _______________ (1) Debt issuance costs related to the Company’s Revolving Credit Facility of $10.9 million and $5.7 million as of December 31, 2022 and 2021, are recorded in “Other Noncurrent Assets, Net” in the balance sheets. |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND WARRANTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Outstanding RSAs and Related Activity | The following table reflects the outstanding RSAs and activity related thereto for the year ended December 31, 2022: Service-based Awards Service, Performance, and Market-based Awards Number of Shares Weighted-average Grant Date Fair Value Number of Shares Weighted-average Grant Date Fair Value Outstanding at December 31, 2021 420,122 $ 13.68 18,600 $ 9.80 Shares granted 125,789 26.34 — — Shares forfeited (2,615) 9.99 Shares vested (226,963) 16.88 (18,600) 9.80 Outstanding at December 31, 2022 316,333 $ 16.39 — $ — |
Schedule of Performance Shares Valuation Assumptions | The assumptions used for the Monte Carlo model were as follows: 2022 Risk-free interest rate 1.69 % Dividend yield 2.40 % Expected volatility 56.94 % Company’s closing stock price on grant date $ 24.98 |
Schedule of Warrant Activity | The following table reflects the outstanding warrants and activity related thereto for the year ended December 31, 2022: Reliance Veritas Warrants Weighted-average Exercise Price Warrants Weighted-average Exercise Price Outstanding at December 31, 2021 3,276,582 $ 13.89 — $ — Issued — — 1,939,998 28.30 Anti-Dilution Adjustments for Common Stock Dividends 17,510 13.81 56,831 27.49 Exercised — — — — Cancelled (3,294,092) — — — Expired — — — — Outstanding at December 31, 2022 — $ — 1,996,829 $ 27.49 |
COMMITMENTS & CONTINGENCIES (Ta
COMMITMENTS & CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Long-term Purchase Commitment | The estimable future commitments under these volume commitment agreements as of December 31, 2022 are as follows: (in Bcf) Commitment Volumes 2023 19.0 2024 18.4 2025 3.2 Total 40.6 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Asset Retirement Obligation Transactions | The following table summarizes the Company’s asset retirement obligation transactions recorded during the years ended December 31, 2022 and 2021. December 31, (in thousands) 2022 2021 Beginning Asset Retirement Obligations $ 28,012 $ 19,181 Liabilities Acquired During the Period 2,158 8,419 Liabilities Incurred During the Period 1,014 3,075 Revision of Estimates 276 (4,084) Accretion of Discount on Asset Retirement Obligations 1,980 1,654 Liabilities Settled During the Period (359) (234) Ending Asset Retirement Obligations $ 33,082 $ 28,012 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense Provision (Benefit) | The income tax provision (benefit) for the years ended December 31, 2022, 2021, and 2020 consists of the following: (In thousands) 2022 2021 2020 Current Federal $ — $ — $ (376) State 3,101 233 — Deferred Federal 164,453 130 (175,309) State 20,627 (3,984) (17,778) Valuation Allowance (185,080) 3,854 193,297 Total Tax Benefit (Expense) $ 3,101 $ 233 $ (166) |
Schedule of Reconciliation of Reported Amount of Income Tax Expense (Benefit) | The following is a reconciliation of the reported amount of income tax benefit for the years ended December 31, 2022, 2021, and 2020 to the amount of income tax expenses that would result from applying the statutory rate to pretax income (loss). (In thousands) 2022 2021 2020 Income (Loss) Before Taxes and NOL $ 776,338 $ 6,594 $ (906,207) Federal Statutory Rate 21.00 % 21.00 % 21.00 % Taxes Computed at Federal Statutory Rates 163,031 1,385 (190,303) State Tax (Benefit), Net of Federal Taxes 20,270 (3,752) (20,881) Deferred Tax Adjustment 3,532 (1,488) 3,686 Share Based Compensation Tax Deficiency — — — Net Operating Loss Adjustment — — 12,494 Other 1,347 234 1,541 Valuation Allowance (185,080) 3,854 193,297 Reported Tax Expense (Benefit) $ 3,101 $ 233 $ (166) |
Schedule of Components of Deferred Tax Asset (Liability) | The significant components of the Company’s deferred tax assets (liabilities) were as follows: Year Ended December 31, (in thousands) 2022 2021 Net Operating Loss (NOLs) and Tax Credit Carryforwards $ 134,103 $ 150,736 Share Based Compensation 901 570 Accrued Interest 1,019 1,031 Allowance for Doubtful Accounts 1,143 919 Crude Oil and Natural Gas Properties and Other Properties (43,415) 124,531 Interest Carryforwards 10,050 — Derivative Instruments 52,891 63,739 Other (424) (178) Total Net Deferred Tax Assets (Liabilities) Before Valuation Allowance 156,269 341,348 Valuation Allowance (156,269) (341,348) Total Net Deferred Tax Assets $ — $ — |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2022 and 2021. Fair Value Measurements at December 31, 2022 Using (In thousands) Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Commodity Derivatives – Current Assets $ — $ 34,276 $ — Commodity Derivatives – Noncurrent Assets — 12,547 — Commodity Derivatives – Current Liabilities — (58,418) — Commodity Derivatives – Noncurrent Liabilities — (225,905) — Interest Rate Derivatives – Current Assets — 1,017 — Contingent Consideration – Current Liabilities — 10,107 — Total $ — $ (226,376) $ — Fair Value Measurements at December 31, 2021 Using (In thousands) Quoted Prices In Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Commodity Derivatives – Current Assets $ — $ 2,519 $ — Commodity Derivatives – Noncurrent Assets — 1,740 — Commodity Derivatives – Current Liabilities — (134,183) — Commodity Derivatives – Noncurrent Liabilities — (147,762) — Interest Rate Derivatives – Noncurrent Assets — 123 — Interest Rate Derivatives – Current Liabilities — (100) — Total $ — $ (277,664) $ — |
DERIVATIVE INSTRUMENTS AND PR_2
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Non-Cash Gains or Losses on Derivative Contracts | The following table presents settlements on commodity derivative instruments and unsettled gains and losses on open commodity derivative instruments for the periods presented which is recorded in the revenue section of our financial statements: Year ended December 31, (In thousands) 2022 2021 2020 Cash Received (Paid) on Settled Derivatives $ (455,450) $ (165,823) $ 188,264 Non-Cash Mark-to-Market Gain (Loss) on Derivatives 40,187 (312,370) 39,878 Gain (Loss) on Commodity Derivatives, Net $ (415,262) $ (478,193) $ 228,141 |
Schedule of Weighted Average Price of Open Commodity Derivative Contracts | The following table summarizes open commodity derivative positions as of December 31, 2022, for commodity derivatives that were entered into through December 31, 2022, for the settlement period presented: 2023 2024 2025 2026 Oil: WTI NYMEX - Swaps: Volume (Bbl) 7,689,250 2,177,775 — — Weighted-Average Price ($/Bbl) $ 75.30 $ 75.98 $ — $ — WTI NYMEX - Swaptions (1) : Volume (Bbl) — 2,424,750 684,375 1,827,920 Weighted-Average Price ($/Bbl) $ — $ 67.61 $ 61.68 $ 62.29 WTI NYMEX - Call Options (1) : Volume (Bbl) 730,000 4,362,210 2,647,345 — Weighted-Average Price ($/Bbl) $ 63.48 $ 62.71 $ 71.54 $ — WTI NYMEX - Collars: Volume (Bbl) 3,816,000 1,989,250 478,500 — Weighted-average floor price (Bbl) $ 74.45 $ 69.91 $ 70.00 $ — Weighted-average ceiling price (Bbl) $ 89.43 $ 86.15 $ 78.62 $ — Natural Gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 18,921,000 9,040,000 — — Weighted-Average Price ($/MMBtu) $ 4.54 $ 4.19 $ — $ — Waha Swaps: Volume (MMBtu) 2,250,000 — — — Weighted-Average Price ($/MMBtu) $ 3.69 $ — $ — $ — Waha Inside FERC to Henry Hub - Basis Swaps: Volume (MMBtu) 2,105,000 2,562,000 2,128,000 — Weighted-Average Differential ($/MMBtu) $ (1.52) $ (1.53) $ (1.53) $ — Henry Hub NYMEX - Call Options: Volume (MMBtu) — 5,490,000 5,475,000 — Weighted-Average Price ($/MMBtu) $ — $ 3.87 $ 3.87 Henry Hub NYMEX - Collars: Volume (MMBtu) 18,187,500 1,820,000 Weighted-average floor price ($/MMBtu) $ 4.16 $ 4.00 $ — $ — Weighted-average ceiling price ($/MMBtu) $ 6.76 $ 8.02 $ — $ — NE - TETCO M2 - Basis Swaps: Volume (MMBtu) 15,040,000 3,660,000 — — Weighted-Average Differential ($/MMBtu) $ (1.04) $ (1.24) $ — $ — ______________ |
Schedule of Derivatives | The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at December 31, 2022 and 2021, respectively. Certain amounts may be presented on a net basis on the financial statements when such amounts are with the same counterparty and subject to a master netting arrangement: (In thousands) December 31, Type of Commodity Balance Sheet Location 2022 2021 Derivative Assets: Commodity Price Swap Contracts Current Assets $ 30,513 $ 4,272 Commodity Basis Swap Contracts Current Assets 5,620 1,916 Interest Rate Swap Contracts Current Assets 1,017 89 Commodity Price Swaptions Contracts Current Assets — 3,020 Commodity Price Collar Contracts Current Assets 40,652 1,963 Commodity Price Swap Contracts Noncurrent Assets 11,490 3,619 Commodity Basis Swap Contracts Noncurrent Assets 547 309 Commodity Price Collar Contracts Noncurrent Assets 29,538 407 Interest Rate Swap Contracts Noncurrent Assets — 123 Total Derivative Assets $ 119,377 $ 15,719 Derivative Liabilities: Commodity Price Swap Contracts Current Liabilities $ (53,386) $ (138,389) Commodity Basis Swap Contracts Current Liabilities (4,407) (1,309) Commodity Price Swaptions Contracts Current Liabilities — (3,020) Interest Rate Swap Contracts Current Liabilities — (189) Commodity Price Collar Contracts Current Liabilities (29,218) (119) Commodity Price Call Option Contracts Current Liabilities (13,916) — Commodity Price Swap Contracts Noncurrent Liabilities (8,343) (8,465) Commodity Basis Swap Contracts Noncurrent Liabilities (3,071) (823) Commodity Price Collar Contracts Noncurrent Liabilities (33,210) (275) Commodity Price Call Option Contracts Noncurrent Liabilities (132,794) (71,815) Commodity Price Swaptions Contracts Noncurrent Liabilities (77,515) (68,980) Total Derivative Liabilities $ (355,860) $ (293,383) Estimated Fair Value at December 31, 2022 (In thousands) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset on the Net Amounts of Assets (Liabilities) Presented on the Balance Sheet Offsetting of Derivative Assets: Current Assets $ 77,802 $ (42,509) $ 35,293 Non-Current Assets 41,575 (29,028) 12,547 Total Derivative Assets $ 119,377 $ (71,537) $ 47,840 Offsetting of Derivative Liabilities: Current Liabilities $ (100,927) $ 42,509 $ (58,418) Non-Current Liabilities (254,933) 29,028 (225,905) Total Derivative Liabilities $ (355,860) $ 71,537 $ (284,324) Estimated Fair Value at December 31, 2021 (In thousands) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset on the Net Amounts of Assets (Liabilities) Presented on the Balance Sheet Offsetting of Derivative Assets: Current Assets $ 11,261 $ (8,742) $ 2,519 Non-Current Assets 4,458 (2,595) 1,863 Total Derivative Assets $ 15,719 $ (11,337) $ 4,382 Offsetting of Derivative Liabilities: Current Liabilities $ (143,025) $ 8,742 $ (134,283) Non-Current Liabilities (150,357) 2,595 (147,762) Total Derivative Liabilities $ (293,383) $ 11,337 $ (282,045) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of the Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS | The reconciliation of the numerators and denominators used to calculate basic EPS and diluted EPS for the years ended December 31, 2022, 2021 and 2020 are as follows: December 31, (In thousands, except share and per share data) 2022 2021 2020 Net Income (Loss) $ 773,237 $ 6,361 $ (906,041) Less: Cumulative Dividends on Preferred Stock 9,803 14,761 15,266 Less: Premium on Repurchase of Preferred Stock 35,731 — — Net Income (Loss) Attributable to Common Stock $ 727,703 $ (8,400) $ (921,307) Weighted Average Common Shares Outstanding: Weighted Average Common Shares Outstanding – Basic 78,557,216 62,989,543 42,744,639 Plus: Dilutive Effect of Restricted Stock, Preferred Stock, and Common Stock Warrants 8,118,149 — — Weighted Average Common Shares Outstanding – Diluted 86,675,365 62,989,543 42,744,639 Net Income (Loss) per Common Share: Basic $ 9.26 $ (0.13) $ (21.55) Diluted $ 8.92 $ (0.13) $ (21.55) |
Schedule of Securities Excluded from the Calculation of Diluted Weighted Average Common Shares Outstanding | The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect: December 31, 2022 2021 2020 Restricted Stock Awards — 150,011 98,595 Series A Preferred Stock (if converted) — 9,758,871 9,899,376 Warrants — 468,325 — Total — 10,377,207 9,997,971 |
SUPPLEMENTAL OIL AND GAS INFO_2
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Extractive Industries [Abstract] | |
Schedule of Costs Incurred in Crude Oil and Natural Gas Acquisition, Exploration and Development Activities | Capitalized costs are summarized as follows for the years ended December 31, 2022, 2021 and 2020, respectively: December 31, (In thousands) 2022 2021 2020 Capitalized Certain Payroll and Other Internal Costs $ 1,045 $ 1,353 $ 1,159 Capitalized Interest Costs 3,365 1,103 556 Total $ 4,410 $ 2,456 $ 1,716 The costs incurred in crude oil and natural gas acquisition, exploration and development activities are highlighted in the table below. December 31, (In thousands) 2022 2021 2020 Costs Incurred for the Year: Proved Property Acquisition and Other $ 1,036,412 $ 434,519 $ 50,345 Unproved Property Acquisition 51,097 19,358 770 Development 386,972 202,325 162,797 Total $ 1,474,482 $ 656,202 $ 213,912 December 31, (In thousands) 2022 2021 2020 Prior Years Property Acquisition $ 17,659 $ 16,337 $ 160 $ 7,409 Development — — — — Total $ 17,659 $ 16,337 $ 160 $ 7,409 |
Schedule of Estimates of Its Proved Crude Oil and Natural Gas Reserves | The following tables present the Company’s 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. (In thousands) Natural Gas Oil BOE Proved Developed and Undeveloped Reserves at December 31, 2019 189,318 131,754 163,307 Revisions of Previous Estimates (21,512) (33,289) (36,874) Extensions, Discoveries and Other Additions 8,308 6,921 8,306 Production (16,473) (9,361) (12,107) Proved Developed and Undeveloped Reserves at December 31, 2020 159,641 96,025 122,632 Revisions of Previous Estimates 89,115 19,914 34,766 Extensions, Discoveries and Other Additions 32,432 12,759 18,164 Purchases of Minerals in Place 700,610 14,985 131,753 Production (44,074) (12,288) (19,634) Proved Developed and Undeveloped Reserves at December 31, 2021 937,724 131,395 287,682 Revisions of Previous Estimates (14,678) (2,787) (5,233) Extensions, Discoveries and Other Additions 54,431 22,563 31,635 Purchases of Minerals in Place 99,760 27,660 44,286 Production (68,829) (16,090) (27,562) Proved Developed and Undeveloped Reserves at December 31, 2022 1,008,407 162,741 330,808 Proved Developed Reserves: December 31, 2019 116,846 77,160 96,634 December 31, 2020 114,060 65,135 84,145 December 31, 2021 498,558 87,505 170,598 December 31, 2022 611,856 112,626 214,602 Proved Undeveloped Reserves: December 31, 2019 72,473 54,594 66,673 December 31, 2020 45,581 30,890 38,487 December 31, 2021 439,165 43,890 117,084 December 31, 2022 396,551 50,115 116,207 |
Schedule of Standardized Measure of Discounted Future Net Cash Flows | 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 to proved crude oil and natural gas were prepared in accordance with the provisions of ASC 932 Extractive Activities - Oil and Gas . 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. December 31, (In thousands) 2022 2021 2020 Future Cash Inflows $ 22,452,776 $ 11,339,861 $ 3,395,670 Future Production Costs (6,820,784) (4,213,186) (1,747,325) Future Development Costs (1,145,225) (932,480) (416,507) Future Income Tax Expense (2,764,111) (947,303) (3,273) Future Net Cash Inflows $ 11,722,656 $ 5,246,892 $ 1,228,565 10% Annual Discount for Estimated Timing of Cash Flows (5,285,758) (2,356,783) (516,554) Standardized Measure of Discounted Future Net Cash Flows $ 6,436,898 $ 2,890,109 $ 712,011 |
Schedule of Prices for Reserve Estimates | The prices for the Company’s reserve estimates were as follows: Natural Gas MCF Oil Bbl December 31, 2022 $ 7.43 $ 91.95 December 31, 2021 $ 3.37 $ 62.25 December 31, 2020 $ 1.61 $ 32.69 |
Schedule of Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% | Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum follow: December 31, (In thousands) 2022 2021 2020 Beginning of Period $ 2,890,109 $ 712,011 $ 1,678,061 Sales of Oil and Natural Gas Produced, Net of Production Costs (1,566,927) (727,317) (177,932) Extensions and Discoveries 888,067 258,399 52,232 Previously Estimated Development Cost Incurred During the Period 147,439 85,526 78,633 Net Change of Prices and Production Costs 3,424,794 1,366,197 (815,278) Change in Future Development Costs 141,884 (103,806) (150,991) Revisions of Quantity and Timing Estimates (134,880) 607,774 (280,481) Accretion of Discount 334,109 71,254 182,202 Change in Income Taxes (1,014,277) (450,455) 143,438 Purchases of Minerals in Place 1,157,060 940,910 — Other 169,521 129,615 19,902 End of Period $ 6,436,898 $ 2,890,109 $ 712,011 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Allowance for doubtful accounts | $ 4,900,000 | $ 3,900,000 | |
Period for advance payments to be applied against joint interest billings | 90 days | ||
Impairment losses on non-crude oil and natural gas long-lived assets | $ 0 | ||
Minimum percentage of proved reserves sold to be considered a significant alteration | 25% | ||
Capitalized costs, proved properties, net | $ 2,500,000,000 | ||
Discount rate | 10% | ||
Impairment losses on oil and gas properties | $ 0 | 0 | $ 1,066,668,000 |
Capitalized costs related to expired leases subject to depletion | 8,700,000 | 3,000,000 | $ 2,900,000 |
Valuation allowance against deferred tax assets | $ 156,269,000 | $ 341,348,000 | |
Maximum percentage of annual contributions per employee | 100% | ||
Vested percentage | 100% | ||
Oil and Gas Sales | Top Four Operators | Revenue Benchmark | Operator Concentration Risk | |||
Property, Plant and Equipment [Line Items] | |||
Concentration risk percentage | 39% | 50% | 49% |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful lives | 3 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, estimated useful lives | 7 years | ||
Other Noncurrent Assets | |||
Property, Plant and Equipment [Line Items] | |||
Accounts receivable | $ 3,200,000 | $ 4,000,000 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Oil and Gas Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Capitalized Certain Payroll and Other Internal Costs | $ 1,045 | $ 1,353 | $ 1,159 |
Capitalized Interest Costs | 3,365 | 1,103 | 556 |
Total | $ 4,410 | $ 2,456 | $ 1,716 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Depletion and Depletion per BOE Sold (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) $ / bbl | Dec. 31, 2021 USD ($) $ / bbl | Dec. 31, 2020 USD ($) $ / bbl | |
Accounting Policies [Abstract] | |||
Depletion of Proved Oil and Natural Gas Properties | $ | $ 248,252 | $ 138,759 | $ 160,643 |
Depletion per BOE Sold (in dollars per barrel) | $ / bbl | 9.01 | 7.07 | 13.27 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,985,798 | $ 975,093 | $ 324,069 |
Oil Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,474,610 | 773,470 | 305,249 |
Natural Gas and NGL Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 511,188 | 201,619 | 18,802 |
Oil and Gas Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,985,798 | 975,089 | 324,052 |
Williston | Oil Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,058,878 | 730,982 | 304,754 |
Williston | Natural Gas and NGL Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 260,462 | 141,425 | 18,773 |
Williston | Oil and Gas Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,319,340 | 872,407 | 323,527 |
Permian | Oil Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 415,732 | 42,488 | 495 |
Permian | Natural Gas and NGL Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 116,034 | 7,386 | 30 |
Permian | Oil and Gas Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 531,766 | 49,874 | 525 |
Appalachian | Oil Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | 0 | 0 |
Appalachian | Natural Gas and NGL Revenues | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 134,692 | 52,808 | 0 |
Appalachian | Oil and Gas Sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 134,692 | $ 52,808 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 15, 2018 | |
Supplemental Cash Items: | ||||
Cash Paid During the Period for Interest, Net of Amount Capitalized | $ 74,933,000 | $ 46,951,000 | $ 55,109,000 | |
Cash Paid During the Period for Income Taxes | 3,672,000 | 0 | 0 | |
Non-cash Investing Activities: | ||||
Oil and Natural Gas Properties Included in Accounts Payable and Accrued Liabilities | 163,059,000 | 111,897,000 | 88,564,000 | |
Capitalized Asset Retirement Obligations | 3,917,000 | 6,950,000 | 710,000 | |
Contingent Consideration | 11,966,000 | 785,000 | 324,000 | |
Compensation Capitalized on Oil and Gas Properties | 218,000 | 282,000 | 495,000 | |
Issuance of Common Stock Warrants - Acquisitions of Oil and Natural Gas Properties | 17,870,000 | 30,512,000 | 0 | |
Issuance of Common Stock - Acquisitions of Oil and Natural Gas Properties | 0 | 0 | 1,537,000 | |
Other Property and Equipment Included in Accounts Payable | 0 | 578,000 | 0 | |
Non-cash Financing Activities: | ||||
Common Stock Dividends Declared, but not paid | 19,546,000 | 6,210,000 | 0 | |
Issuance of Common Stock for Preferred Stock Exchange | 36,627,000 | 0 | 1,113,000 | |
Issuance of Common Stock Warrants - Acquisitions of Oil and Natural Gas Properties | 17,870,000 | 0 | 0 | |
Common Stock | ||||
Non-cash Financing Activities: | ||||
Issuance of stock | 76,904,000 | 0 | 0 | |
8.5% Second Lien Notes Due 2023 | ||||
Non-cash Financing Activities: | ||||
Issuance of stock | 0 | 0 | 37,169,000 | |
8.5% Second Lien Notes Due 2023 | Second Lien Notes | ||||
Non-cash Financing Activities: | ||||
Interest rate percentage | 8.50% | |||
8.5% Second Lien Notes Due 2023 | Second Lien Notes | Preferred Stock | ||||
Non-cash Financing Activities: | ||||
Issuance of stock | $ 0 | $ 0 | $ 81,212,000 |
CRUDE OIL AND NATURAL GAS PRO_3
CRUDE OIL AND NATURAL GAS PROPERTIES - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||||
Dec. 16, 2022 USD ($) | Dec. 01, 2022 USD ($) $ / bbl | Oct. 03, 2022 USD ($) | Aug. 15, 2022 USD ($) | Jan. 27, 2022 USD ($) $ / shares shares | Nov. 16, 2021 USD ($) well | Aug. 02, 2021 USD ($) | Apr. 01, 2021 USD ($) $ / shares shares | Oct. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) a $ / shares | Dec. 31, 2022 USD ($) a $ / shares | Dec. 31, 2022 USD ($) a $ / shares | Dec. 31, 2022 USD ($) a $ / shares | Dec. 31, 2021 USD ($) a $ / shares | Dec. 31, 2020 USD ($) | Dec. 30, 2022 USD ($) | |
Asset Acquisition [Line Items] | ||||||||||||||||
Future cash outflow to pay for purchases of fixed assets that have occurred | $ 163,059 | $ 111,897 | $ 88,564 | |||||||||||||
Consideration transferred | $ 36,100 | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Asset retirement obligation | $ 33,082 | $ 33,082 | $ 33,082 | $ 33,082 | $ 28,012 | $ 19,181 | ||||||||||
Area of unproven leasehold interests | a | 27,663 | 27,663 | 27,663 | 27,663 | 29,835 | |||||||||||
Anticipated future period over which excluded costs will become subject to depletion | 5 years | |||||||||||||||
Veritas | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Consideration transferred | $ 408,798 | |||||||||||||||
Cash consideration | $ 390,900 | |||||||||||||||
Acquisition, shares issued (in shares) | shares | 1,939,998 | |||||||||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||||||||||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 28.30 | |||||||||||||||
Issuance of common stock warrants | $ 17,870 | |||||||||||||||
Cash consideration payable adjustment | $ (3,100) | |||||||||||||||
Revenue since acquisition | 244,100 | |||||||||||||||
Income from operations since acquisition | $ 168,000 | |||||||||||||||
Transaction costs | 7,300 | |||||||||||||||
Payments to acquire producing properties | 390,928 | |||||||||||||||
Asset retirement obligation | $ 1,219 | |||||||||||||||
Incline | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Consideration transferred | $ 159,827 | |||||||||||||||
Cash consideration | $ 158,000 | |||||||||||||||
Cash consideration payable adjustment | $ (7,500) | |||||||||||||||
Revenue since acquisition | 25,300 | |||||||||||||||
Income from operations since acquisition | 17,000 | |||||||||||||||
Transaction costs | 1,100 | |||||||||||||||
Additional cash contingent consideration | 5,000 | |||||||||||||||
Contingent consideration | 1,850 | $ 1,800 | ||||||||||||||
Payments to acquire producing properties | 157,977 | |||||||||||||||
Asset retirement obligation | $ 319 | |||||||||||||||
Laredo | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Consideration transferred | $ 110,071 | |||||||||||||||
Cash consideration | 110,100 | |||||||||||||||
Cash consideration payable adjustment | $ (6,000) | |||||||||||||||
Revenue since acquisition | 9,400 | |||||||||||||||
Income from operations since acquisition | $ 6,800 | |||||||||||||||
Transaction costs | 800 | |||||||||||||||
Payments to acquire producing properties | 110,071 | |||||||||||||||
Asset retirement obligation | $ 187 | |||||||||||||||
Alpha | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Consideration transferred | $ 164,023 | |||||||||||||||
Cash consideration | 153,916 | |||||||||||||||
Revenue since acquisition | 2,600 | |||||||||||||||
Income from operations since acquisition | 1,500 | |||||||||||||||
Contingent consideration | 10,107 | |||||||||||||||
Asset retirement obligation | 278 | |||||||||||||||
Alpha | Minimum | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Additional cash contingent consideration | $ 0 | |||||||||||||||
Average front month WTI oil price (in usd per barrel) | $ / bbl | 75 | |||||||||||||||
Alpha | Maximum | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Additional cash contingent consideration | $ 22,500 | |||||||||||||||
Average front month WTI oil price (in usd per barrel) | $ / bbl | 87.85 | |||||||||||||||
Delaware | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Consideration transferred | $ 131,618 | |||||||||||||||
Cash consideration | 131,618 | |||||||||||||||
Revenue since acquisition | 1,200 | |||||||||||||||
Income from operations since acquisition | 700 | |||||||||||||||
Transaction costs | $ 1,300 | |||||||||||||||
Asset retirement obligation | $ 155 | |||||||||||||||
Reliance | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Consideration transferred | $ 140,564 | |||||||||||||||
Cash consideration | $ 110,100 | |||||||||||||||
Acquisition, shares issued (in shares) | shares | 3,250,000 | |||||||||||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 14 | |||||||||||||||
Issuance of common stock warrants | $ 30,500 | |||||||||||||||
Payments to acquire producing properties | 110,052 | |||||||||||||||
Issuance of warrants | 30,512 | |||||||||||||||
Asset retirement obligation | $ 6,549 | |||||||||||||||
CM Resources Acquisition | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Consideration transferred | $ 101,691 | |||||||||||||||
Cash consideration | 101,700 | |||||||||||||||
Payments to acquire producing properties | 101,691 | |||||||||||||||
Asset retirement obligation | $ 179 | |||||||||||||||
Comstock Acquisition | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Cash consideration | $ 150,500 | |||||||||||||||
Number of net PDP wells acquired | well | 65.9 | |||||||||||||||
Allocation to proved properties | 100% | |||||||||||||||
Asset retirement obligation | $ 1,700 | |||||||||||||||
Independent Transactions | ||||||||||||||||
Asset Acquisition [Line Items] | ||||||||||||||||
Consideration transferred | $ 100,000 | $ 37,900 |
CRUDE OIL AND NATURAL GAS PRO_4
CRUDE OIL AND NATURAL GAS PROPERTIES - Fair Values of the Net Assets and Liabilities as of the Date of Acquisition (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 16, 2022 | Dec. 01, 2022 | Oct. 03, 2022 | Aug. 15, 2022 | Jan. 27, 2022 | Aug. 02, 2021 | Apr. 01, 2021 | Dec. 31, 2022 | Dec. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair value of net assets: | |||||||||||
Proved oil and natural gas properties | $ 6,492,683 | $ 5,034,769 | |||||||||
Unproved oil and natural gas properties | 41,565 | 24,998 | |||||||||
Asset retirement obligations | $ (33,082) | $ (28,012) | $ (19,181) | ||||||||
Veritas | |||||||||||
Fair value of net assets: | |||||||||||
Proved oil and natural gas properties | $ 383,755 | ||||||||||
Unproved oil and natural gas properties | 26,262 | ||||||||||
Total assets acquired | 410,017 | ||||||||||
Asset retirement obligations | (1,219) | ||||||||||
Net assets acquired | 408,798 | ||||||||||
Fair value of consideration paid for net assets: | |||||||||||
Cash consideration | 390,928 | ||||||||||
Issuance of common stock warrants | 17,870 | ||||||||||
Consideration transferred | $ 408,798 | ||||||||||
Acquisition, shares issued (in shares) | 1,939,998 | ||||||||||
Business acquisition, share price (in dollars per share) | $ 28.30 | ||||||||||
Incline | |||||||||||
Fair value of net assets: | |||||||||||
Total assets acquired | $ 160,155 | ||||||||||
Asset retirement obligations | (319) | ||||||||||
Net assets acquired | 159,836 | ||||||||||
Fair value of consideration paid for net assets: | |||||||||||
Cash consideration | 157,977 | ||||||||||
Contingent consideration | 1,850 | $ 1,800 | |||||||||
Consideration transferred | $ 159,827 | ||||||||||
Laredo | |||||||||||
Fair value of net assets: | |||||||||||
Total assets acquired | $ 110,258 | ||||||||||
Asset retirement obligations | (187) | ||||||||||
Net assets acquired | 110,071 | ||||||||||
Fair value of consideration paid for net assets: | |||||||||||
Cash consideration | 110,071 | ||||||||||
Consideration transferred | $ 110,071 | ||||||||||
Alpha | |||||||||||
Fair value of net assets: | |||||||||||
Total assets acquired | $ 164,300 | ||||||||||
Asset retirement obligations | (278) | ||||||||||
Net assets acquired | 164,023 | ||||||||||
Fair value of consideration paid for net assets: | |||||||||||
Contingent consideration | 10,107 | ||||||||||
Consideration transferred | $ 164,023 | ||||||||||
Delaware | |||||||||||
Fair value of net assets: | |||||||||||
Total assets acquired | $ 131,773 | ||||||||||
Asset retirement obligations | (155) | ||||||||||
Net assets acquired | 131,618 | ||||||||||
Fair value of consideration paid for net assets: | |||||||||||
Consideration transferred | $ 131,618 | ||||||||||
Reliance | |||||||||||
Fair value of net assets: | |||||||||||
Proved oil and natural gas properties | $ 139,644 | ||||||||||
Unproved oil and natural gas properties | 10,912 | ||||||||||
Total assets acquired | 150,556 | ||||||||||
Asset retirement obligations | (6,549) | ||||||||||
Minimum volume commitment liability | (3,443) | ||||||||||
Net assets acquired | 140,564 | ||||||||||
Fair value of consideration paid for net assets: | |||||||||||
Cash consideration | 110,052 | ||||||||||
Issuance of common stock warrants | 30,500 | ||||||||||
Consideration transferred | $ 140,564 | ||||||||||
Acquisition, shares issued (in shares) | 3,250,000 | ||||||||||
Business acquisition, share price (in dollars per share) | $ 14 | ||||||||||
CM Resources Acquisition | |||||||||||
Fair value of net assets: | |||||||||||
Proved oil and natural gas properties | $ 101,869 | ||||||||||
Total assets acquired | 101,869 | ||||||||||
Asset retirement obligations | (179) | ||||||||||
Net assets acquired | 101,691 | ||||||||||
Fair value of consideration paid for net assets: | |||||||||||
Cash consideration | 101,691 | ||||||||||
Consideration transferred | $ 101,691 |
CRUDE OIL AND NATURAL GAS PRO_5
CRUDE OIL AND NATURAL GAS PROPERTIES - Summarized Unaudited Pro Forma Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||
Total Revenues | $ 1,747,105 | $ 729,487 |
Net Income | $ 904,583 | $ 124,294 |
CRUDE OIL AND NATURAL GAS PRO_6
CRUDE OIL AND NATURAL GAS PROPERTIES - Capitalized Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ||||
Property Acquisition | $ 17,659 | $ 16,337 | $ 160 | $ 7,409 |
Development | 0 | 0 | 0 | 0 |
Total | $ 17,659 | $ 16,337 | $ 160 | $ 7,409 |
LONG TERM DEBT - Schedule of Lo
LONG TERM DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Principal Balance | $ 1,543,235 | $ 805,000 |
Unamortized Net Premium | 10,682 | 13,217 |
Debt Issuance Costs, Net | (28,504) | (14,780) |
Long-term Debt, Net | 1,525,413 | 803,437 |
Unsecured Notes Due 2028 | Unsecured Debt | ||
Line of Credit Facility [Line Items] | ||
Principal Balance | 724,235 | 750,000 |
Unamortized Net Premium | 10,682 | 13,217 |
Debt Issuance Costs, Net | (11,946) | (14,780) |
Long-term Debt, Net | 722,972 | 748,437 |
Convertible Notes due 2029 | ||
Line of Credit Facility [Line Items] | ||
Principal Balance | 500,000 | |
Unamortized Net Premium | 0 | |
Debt Issuance Costs, Net | (16,558) | |
Long-term Debt, Net | 483,442 | |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Principal Balance | 319,000 | 55,000 |
Unamortized Net Premium | 0 | 0 |
Debt Issuance Costs, Net | 0 | 0 |
Long-term Debt, Net | 319,000 | 55,000 |
Revolving Credit Facility | Other Noncurrent Assets | ||
Line of Credit Facility [Line Items] | ||
Debt Issuance Costs, Net | $ (10,900) | $ (5,700) |
LONG TERM DEBT - Narrative (Det
LONG TERM DEBT - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 14, 2022 USD ($) day $ / shares | Oct. 11, 2022 $ / shares | Feb. 18, 2021 USD ($) | Nov. 22, 2019 | Oct. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 30, 2022 $ / shares | Nov. 15, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Repayments of unsecured notes | $ 24,907,000 | $ 0 | $ 0 | |||||||
Long-term debt | 1,525,413,000 | 803,437,000 | ||||||||
Consideration transferred | $ 36,100,000 | |||||||||
Company's closing stock price on grant date (in dollars per share) | $ / shares | $ 24.98 | |||||||||
Premium over last reported sale | 75% | |||||||||
Common Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Initial conversion price | $ / shares | $ 38.01 | |||||||||
Interest Rate Cap | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Company's closing stock price on grant date (in dollars per share) | $ / shares | $ 52.17 | |||||||||
Interest Rate Cap | Common Stock | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Offering price (in dollars per share) | $ / shares | $ 29.81 | |||||||||
Unsecured Notes Due 2028 | Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 550,000,000 | $ 200,000,000 | ||||||||
Interest rate percentage | 8.125% | 8.125% | ||||||||
Principal repaid | 25,800,000 | |||||||||
Repayments of unsecured notes | 24,900,000 | |||||||||
Default period | 30 days | |||||||||
Acceleration threshold amount | $ 35,000,000 | |||||||||
Judgment discharge or stay period | 60 days | |||||||||
Long-term debt | 722,972,000 | 748,437,000 | ||||||||
Unsecured Notes Due 2028 | Unsecured Debt | Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price, percentage of principal amount redeemed | 100% | |||||||||
Unsecured Notes Due 2028 | Unsecured Debt | Period Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 104.063% | |||||||||
Unsecured Notes Due 2028 | Unsecured Debt | Period Three | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 102.031% | |||||||||
Unsecured Notes Due 2028 | Unsecured Debt | Period Four | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price percentage | 100% | |||||||||
Convertible Notes due 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 483,442,000 | |||||||||
Convertible Notes due 2029 | Unsecured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal amount | $ 500,000,000 | |||||||||
Interest rate percentage | 3.625% | |||||||||
Debt to shares conversion ratio | 0.0263104 | |||||||||
Convertible Notes due 2029 | Convertible Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Judgment discharge or stay period | 60 days | |||||||||
Threshold trading days | day | 40 | |||||||||
Threshold percentage of stock price trigger | 130% | |||||||||
Indebtedness for borrowed money | $ 50,000,000 | |||||||||
Amount of minimum unpaid judgements | 50,000,000 | |||||||||
Aggregate principal amount | 25% | |||||||||
Period of the special interest rate | 365 days | |||||||||
Special interest rate for the first period | 0.25% | |||||||||
Period of second special interest rate | 180 days | |||||||||
Special interest rate for the second period | 0.50% | |||||||||
Convertible Notes due 2029 | Convertible Debt | Period One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Threshold trading days | day | 20 | |||||||||
Threshold consecutive trading days | day | 30 | |||||||||
Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Covenant compliance, debt to EBITDAX ratio | 3.50 | |||||||||
Covenant compliance, current ratio | 1 | |||||||||
Security interests as a percent of properties | 90% | |||||||||
Long-term debt | $ 319,000,000 | $ 55,000,000 | ||||||||
Revolving Credit Facility | Third Amended And Restated Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Current borrowing capacity | 1,600,000,000 | |||||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||||
Revolving Credit Facility | Federal Funds | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin in effect during period | 0.50% | |||||||||
Revolving Credit Facility | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin in effect during period | 1% | |||||||||
Revolving Credit Facility | LIBOR | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin in effect during period | 2.25% | |||||||||
Revolving Credit Facility | LIBOR | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin in effect during period | 3.25% | |||||||||
Revolving Credit Facility | Base Rate | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin in effect during period | 1.25% | |||||||||
Revolving Credit Facility | Base Rate | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate margin in effect during period | 2.25% |
COMMON AND PREFERRED STOCK (Det
COMMON AND PREFERRED STOCK (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Feb. 06, 2023 | Nov. 08, 2022 | Nov. 30, 2022 | Aug. 31, 2022 | Jun. 30, 2022 | May 31, 2022 | Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock, shares authorized (in shares) | 135,000,000 | 135,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||||||||
Common stock, shares, issued (in shares) | 85,165,807 | 77,341,921 | |||||||||
Common stock, shares outstanding (in shares) | 85,165,807 | 77,341,921 | |||||||||
Common stock, dividends declared (in dollars per share) | $ 0.30 | $ 0.25 | $ 0.19 | $ 0.14 | |||||||
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||||||||
Preferred stock, shares issued (in shares) | 0 | 2,218,732 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 2,218,732 | |||||||||
Preferred stock, dividend rate, percentage | 6.50% | ||||||||||
Preferred stock dividends paid | $ (21,664,000) | $ (29,212,000) | $ 0 | ||||||||
Stock repurchase program, amount approved | $ 150,000,000 | ||||||||||
Shares repurchased (in shares) | 1,909,097 | 0 | |||||||||
Common stock repurchased | $ 54,500,000 | ||||||||||
Subsequent Event | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.34 | ||||||||||
Reliance | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Issuance of shares, net of issuance costs (in shares) | 2,322,690 | ||||||||||
Class of warrant or right, number of securities called by warrants or rights | 3,294,092 | ||||||||||
Class of warrant or right, exercise price of warrants or rights (in usd per share) | $ 13.81 | $ 0 | $ 13.89 | ||||||||
Series A Preferred Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Preferred stock, shares outstanding (in shares) | 0 | ||||||||||
Preferred stock dividends paid | $ (21,700,000) | $ (29,200,000) | |||||||||
Preferred shares repurchased (in shares) | 575,000 | ||||||||||
Amount of preferred shares repurchased | $ 81,200,000 | ||||||||||
Common Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares issued upon conversion | 7,376,739 | ||||||||||
Shares withheld for tax withholding | 89,620 | ||||||||||
Amount of tax withholding | $ 2,200,000 | ||||||||||
Convertible Preferred Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock received per share (in shares) | $ 4.4878 | ||||||||||
Cash payment per share (in usd per share) | $ 6.3337 | ||||||||||
Number of shares converted | 1,643,732 |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND WARRANTS - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jan. 27, 2022 USD ($) $ / shares shares | Apr. 01, 2021 USD ($) $ / shares shares | Jun. 30, 2022 $ / shares shares | Apr. 30, 2022 day | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Reliance | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Issuance of Warrants | $ | $ 30,512 | ||||||
Issuance of shares, net of issuance costs (in shares) | shares | 2,322,690 | ||||||
Class of warrant or right, number of securities called by warrants or rights | shares | 3,294,092 | ||||||
Class of warrant or right, exercise price of warrants or rights (in usd per share) | $ / shares | $ 13.81 | $ 0 | $ 13.89 | ||||
Acquisition, shares issued (in shares) | shares | 3,250,000 | ||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 14 | ||||||
Issuance of common stock warrants | $ | $ 30,500 | ||||||
Expected volatility | 80% | ||||||
Risk-free interest rate | 1.34% | ||||||
Veritas | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Class of warrant or right, exercise price of warrants or rights (in usd per share) | $ / shares | $ 27.49 | $ 0 | |||||
Acquisition, shares issued (in shares) | shares | 1,939,998 | ||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 28.30 | ||||||
Issuance of common stock warrants | $ | $ 17,870 | ||||||
Expected volatility | 60% | ||||||
Risk-free interest rate | 2.14% | ||||||
Dividend yield | 3% | ||||||
2018 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future awards (in shares) | shares | 459,580 | ||||||
Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense | $ | $ 3,300 | ||||||
Unrecognized compensation expense, recognized period | 7 months 13 days | ||||||
Fair value of vested awards | $ | $ 4,600 | $ 1,800 | $ 2,700 | ||||
Service-Based RSAs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards granted (in shares) | shares | 125,789 | 339,653 | 460,382 | ||||
Weighted-average grant date fair value of awards granted (in dollars per share) | $ / shares | $ 26.34 | $ 16.45 | $ 9.15 | ||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 16.39 | 13.68 | |||||
Service, Performance, and Market-based Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Awards granted (in shares) | shares | 0 | ||||||
Weighted-average grant date fair value of awards granted (in dollars per share) | $ / shares | $ 0 | ||||||
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 | $ 9.80 | |||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Share-based payment arrangement, total shareholder return, threshold trading days | day | 20 | ||||||
Share-based payment arrangement, expense | $ | $ 500 | ||||||
Expected volatility | 56.94% | ||||||
Risk-free interest rate | 1.69% | ||||||
Dividend yield | 2.40% | ||||||
Performance Shares | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, total shareholder return | $ | 0 | ||||||
Performance Shares | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, total shareholder return | $ | $ 2,400 | ||||||
Employees And Officers | Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Directors | Restricted Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND WARRANTS - Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Service-based Awards | |||
Number of Shares | |||
Outstanding at beginning of period (in shares) | 420,122 | ||
Shares granted (in shares) | 125,789 | 339,653 | 460,382 |
Shares forfeited (in shares) | (2,615) | ||
Shares vested (in shares) | (226,963) | ||
Outstanding at end of period (in shares) | 316,333 | 420,122 | |
Weighted-average Grant Date Fair Value | |||
Outstanding at beginning of the period (in dollars per share) | $ 13.68 | ||
Shares granted (in dollars per share) | 26.34 | $ 16.45 | $ 9.15 |
Shares forfeited (in dollars per share) | 9.99 | ||
Shares vested (in dollars per share) | 16.88 | ||
Outstanding at end of the period (in dollars per share) | $ 16.39 | $ 13.68 | |
Service, Performance, and Market-based Awards | |||
Number of Shares | |||
Outstanding at beginning of period (in shares) | 18,600 | ||
Shares granted (in shares) | 0 | ||
Shares forfeited (in shares) | |||
Shares vested (in shares) | (18,600) | ||
Outstanding at end of period (in shares) | 0 | 18,600 | |
Weighted-average Grant Date Fair Value | |||
Outstanding at beginning of the period (in dollars per share) | $ 9.80 | ||
Shares granted (in dollars per share) | 0 | ||
Shares forfeited (in dollars per share) | |||
Shares vested (in dollars per share) | 9.80 | ||
Outstanding at end of the period (in dollars per share) | $ 0 | $ 9.80 |
STOCK-BASED COMPENSATION AND _5
STOCK-BASED COMPENSATION AND WARRANTS - Schedule of Performance Shares Valuation Assumptions (Details) | 1 Months Ended |
Apr. 30, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company's closing stock price on grant date (in dollars per share) | $ 24.98 |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.69% |
Dividend yield | 2.40% |
Expected volatility | 56.94% |
STOCK-BASED COMPENSATION AND _6
STOCK-BASED COMPENSATION AND WARRANTS - Summary of Warrants Outstanding (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Veritas | |
Warrants | |
Outstanding at beginning of period (in shares) | shares | 0 |
Issued (in shares) | shares | 1,939,998 |
Anti-Dilution Adjustments for Common Stock (in shares) | shares | 56,831 |
Exercised (in shares) | shares | 0 |
Cancelled (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 1,996,829 |
Weighted-average Exercise Price | |
Outstanding at beginning of period, Weighted average exercise price (in usd per share) | $ / shares | $ 0 |
Issued, Weighted average exercise price (in usd per share) | $ / shares | 28.30 |
Anti-Dilution Adjustments for Common Stock, Weighted average exercise price (in usd per share) | $ / shares | 27.49 |
Exercised, Weighted average exercise price (in usd per share) | $ / shares | 0 |
Cancelled, Weighted average exercise price (in usd per share) | $ / shares | 0 |
Expired, Weighted average exercise price (in usd per share) | $ / shares | 0 |
Outstanding at end of period, Weighted average exercise price (in usd per share) | $ / shares | $ 27.49 |
Reliance | |
Warrants | |
Outstanding at beginning of period (in shares) | shares | 3,276,582 |
Issued (in shares) | shares | 0 |
Anti-Dilution Adjustments for Common Stock (in shares) | shares | 17,510 |
Exercised (in shares) | shares | 0 |
Cancelled (in shares) | shares | (3,294,092) |
Expired (in shares) | shares | 0 |
Outstanding at end of period (in shares) | shares | 0 |
Weighted-average Exercise Price | |
Outstanding at beginning of period, Weighted average exercise price (in usd per share) | $ / shares | $ 13.89 |
Issued, Weighted average exercise price (in usd per share) | $ / shares | 0 |
Anti-Dilution Adjustments for Common Stock, Weighted average exercise price (in usd per share) | $ / shares | 13.81 |
Exercised, Weighted average exercise price (in usd per share) | $ / shares | 0 |
Cancelled, Weighted average exercise price (in usd per share) | $ / shares | 0 |
Expired, Weighted average exercise price (in usd per share) | $ / shares | 0 |
Outstanding at end of period, Weighted average exercise price (in usd per share) | $ / shares | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2022 USD ($) agreement director shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares | |
Related Party Transaction [Line Items] | |||
Preferred stock, dividend rate, percentage | 6.50% | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |
Series A Preferred Stock | |||
Related Party Transaction [Line Items] | |||
Aggregate shares | shares | 575,000 | ||
Aggregate purchase price | $ | $ 81.2 | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Number stock repurchase agreements | agreement | 3 | ||
Aggregate shares | shares | 71,894 | ||
Aggregate purchase price | $ | $ 9.5 | ||
Affiliated Entity | TRT Holdings, Inc. | |||
Related Party Transaction [Line Items] | |||
Aggregate shares | shares | 21,894 | ||
Aggregate purchase price | $ | $ 2.9 | ||
Affiliated Entity | Directors | |||
Related Party Transaction [Line Items] | |||
Number of director | director | 2 |
COMMITMENTS & CONTINGENCIES - N
COMMITMENTS & CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | |||
Total deficiency payments | $ 8.5 | $ 0.7 | $ 0 |
Other Noncurrent Assets | |||
Loss Contingencies [Line Items] | |||
Possible revenue to be reversed due to pending litigation | $ 3.2 | $ 4 |
COMMITMENTS & CONTINGENCIES - M
COMMITMENTS & CONTINGENCIES - Minimum Volume Commitments (Details) Bcf in Thousands | 12 Months Ended |
Dec. 31, 2022 Bcf | |
Long-term Purchase Commitment, Minimum Volume Required, Maturity [Abstract] | |
2023 | 19,000 |
2024 | 18,400 |
2025 | 3,200 |
Total | 40,600 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Asset retirement obligation [Roll Forward] | ||
Beginning Asset Retirement Obligations | $ 28,012 | $ 19,181 |
Liabilities Acquired During the Period | 2,158 | 8,419 |
Liabilities Incurred During the Period | 1,014 | 3,075 |
Revision of Estimates | 276 | (4,084) |
Accretion of Discount on Asset Retirement Obligations | 1,980 | 1,654 |
Liabilities Settled During the Period | (359) | (234) |
Ending Asset Retirement Obligations | $ 33,082 | $ 28,012 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | |||
Federal | $ 0 | $ 0 | $ (376) |
State | 3,101 | 233 | 0 |
Deferred | |||
Federal | 164,453 | 130 | (175,309) |
State | 20,627 | (3,984) | (17,778) |
Valuation Allowance | (185,080) | 3,854 | 193,297 |
Reported Tax Expense (Benefit) | $ 3,101 | $ 233 | $ (166) |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of reported amount of income tax expense (benefit) [Abstract] | |||
Income (Loss) Before Taxes and NOL | $ 776,338 | $ 6,594 | $ (906,207) |
Federal Statutory Rate | 21% | 21% | 21% |
Taxes Computed at Federal Statutory Rates | $ 163,031 | $ 1,385 | $ (190,303) |
State Tax (Benefit), Net of Federal Taxes | 20,270 | (3,752) | (20,881) |
Deferred Tax Adjustment | 3,532 | (1,488) | 3,686 |
Share Based Compensation Tax Deficiency | 0 | 0 | 0 |
Net Operating Loss Adjustment | 0 | 0 | 12,494 |
Other | 1,347 | 234 | 1,541 |
Valuation Allowance | (185,080) | 3,854 | 193,297 |
Reported Tax Expense (Benefit) | $ 3,101 | $ 233 | $ (166) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Net operating loss deferred tax asset reduction due to changes from the CARES Act and finalized IRC regulations | $ 0 | $ 0 | $ 12,494,000 |
Valuation allowance | (156,269,000) | (341,348,000) | |
Interest or penalties expense | 0 | 0 | $ 0 |
Interest or penalties accrued | $ 0 | 0 | |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | 520,700,000 | ||
Net operating losses with an indefinite life | 276,500,000 | ||
State and Local | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | 686,300,000 | ||
Net operating losses with an indefinite life | $ 174,500,000 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Net Operating Loss (NOLs) and Tax Credit Carryforwards | $ 134,103 | $ 150,736 |
Share Based Compensation | 901 | 570 |
Accrued Interest | 1,019 | 1,031 |
Allowance for Doubtful Accounts | 1,143 | 919 |
Crude Oil and Natural Gas Properties and Other Properties | (43,415) | 124,531 |
Interest Carryforwards | 10,050 | 0 |
Derivative Instruments | 52,891 | 63,739 |
Other | (424) | (178) |
Total Net Deferred Tax Assets (Liabilities) Before Valuation Allowance | 156,269 | 341,348 |
Valuation Allowance | (156,269) | (341,348) |
Total Net Deferred Tax Assets | $ 0 | $ 0 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Accounted for at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | $ 0 | $ 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | (226,376) | (277,664) |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Commodity Derivatives | Current Assets | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Commodity Derivatives | Current Assets | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 34,276 | 2,519 |
Commodity Derivatives | Current Assets | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Commodity Derivatives | Noncurrent Assets | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Commodity Derivatives | Noncurrent Assets | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 12,547 | 1,740 |
Commodity Derivatives | Noncurrent Assets | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Commodity Derivatives | Current Liabilities | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Commodity Derivatives | Current Liabilities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | (58,418) | (134,183) |
Commodity Derivatives | Current Liabilities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Commodity Derivatives | Noncurrent Liabilities | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Commodity Derivatives | Noncurrent Liabilities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | (225,905) | (147,762) |
Commodity Derivatives | Noncurrent Liabilities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | 0 |
Interest Rate Derivatives | Current Assets | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | |
Interest Rate Derivatives | Current Assets | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 1,017 | |
Interest Rate Derivatives | Current Assets | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | |
Interest Rate Derivatives | Current Liabilities | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | |
Interest Rate Derivatives | Current Liabilities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 123 | |
Interest Rate Derivatives | Current Liabilities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | |
Interest Rate Derivatives | Noncurrent Liabilities | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | |
Interest Rate Derivatives | Noncurrent Liabilities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | (100) | |
Interest Rate Derivatives | Noncurrent Liabilities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | $ 0 | |
Contingent Consideration | Current Liabilities | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 0 | |
Contingent Consideration | Current Liabilities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 10,107 | |
Contingent Consideration | Current Liabilities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 27, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset retirement obligations | $ 3.2 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Transfers, Net | 0 | $ 0 | |
Veritas | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Acquisition, shares issued (in shares) | 1,939,998 | ||
Business acquisition, share price (in dollars per share) | $ 28.30 | ||
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | 8.125% Senior Unsecured Notes Due 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of second lien notes | 695.3 | ||
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Liabilities) (Level 1) | Convertible Debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of second lien notes | $ 543.1 |
DERIVATIVE INSTRUMENTS AND PR_3
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT - Gains/Losses on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Cash Received (Paid) on Settled Derivatives | $ (455,450) | $ (165,823) | $ 188,264 |
Non-Cash Mark-to-Market Gain (Loss) on Derivatives | 40,187 | (312,370) | 39,878 |
Gain (Loss) on Commodity Derivatives, Net | $ (415,262) | $ (478,193) | $ 228,141 |
DERIVATIVE INSTRUMENTS AND PR_4
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT - Summary of Open Commodity Derivative Positions (Details) | Dec. 31, 2022 MMBTU bbl $ / bbl |
WTI NYMEX - Swaps | 2023 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 7,689,250 |
Weighted average price (in dollars per unit) | 75.30 |
WTI NYMEX - Swaps | 2024 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 2,177,775 |
Weighted average price (in dollars per unit) | 75.98 |
WTI NYMEX - Swaps | 2025 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
WTI NYMEX - Swaps | 2026 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
WTI NYMEX - Swaptions | 2023 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
WTI NYMEX - Swaptions | 2024 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 2,424,750 |
Weighted average price (in dollars per unit) | 67.61 |
WTI NYMEX - Swaptions | 2025 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 684,375 |
Weighted average price (in dollars per unit) | 61.68 |
WTI NYMEX - Swaptions | 2026 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 1,827,920 |
Weighted average price (in dollars per unit) | 62.29 |
WTI NYMEX - Call Options | 2023 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 730,000 |
Weighted average price (in dollars per unit) | 63.48 |
WTI NYMEX - Call Options | 2024 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 4,362,210 |
Weighted average price (in dollars per unit) | 62.71 |
WTI NYMEX - Call Options | 2025 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 2,647,345 |
Weighted average price (in dollars per unit) | 71.54 |
WTI NYMEX - Call Options | 2026 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
WTI NYMEX - Collars | 2023 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 3,816,000 |
Weighted average floor price (in dollars per unit) | 74.45 |
Weighted average ceiling price (in dollars per unit) | 89.43 |
WTI NYMEX - Collars | 2024 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 1,989,250 |
Weighted average floor price (in dollars per unit) | 69.91 |
Weighted average ceiling price (in dollars per unit) | 86.15 |
WTI NYMEX - Collars | 2025 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 478,500 |
Weighted average floor price (in dollars per unit) | 70 |
Weighted average ceiling price (in dollars per unit) | 78.62 |
WTI NYMEX - Collars | 2026 | |
Derivative [Line Items] | |
Volume (in units) | bbl | 0 |
Weighted average floor price (in dollars per unit) | 0 |
Weighted average ceiling price (in dollars per unit) | 0 |
Henry Hub NYMEX - Swaps | 2023 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 18,921,000 |
Weighted average price (in dollars per unit) | 4.54 |
Henry Hub NYMEX - Swaps | 2024 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 9,040,000 |
Weighted average price (in dollars per unit) | 4.19 |
Henry Hub NYMEX - Swaps | 2025 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average price (in dollars per unit) | 0 |
Henry Hub NYMEX - Swaps | 2026 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average price (in dollars per unit) | 0 |
Waha Swaps | 2023 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 2,250,000 |
Weighted average price (in dollars per unit) | 3.69 |
Waha Swaps | 2024 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average price (in dollars per unit) | 0 |
Waha Swaps | 2025 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average price (in dollars per unit) | 0 |
Waha Swaps | 2026 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average price (in dollars per unit) | 0 |
Waha Inside FERC to Henry Hub - Basis Swaps | 2023 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 2,105,000 |
Weighted average differential (in dollars per unit) | (1.52) |
Waha Inside FERC to Henry Hub - Basis Swaps | 2024 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 2,562,000 |
Weighted average differential (in dollars per unit) | (1.53) |
Waha Inside FERC to Henry Hub - Basis Swaps | 2025 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 2,128,000 |
Weighted average differential (in dollars per unit) | (1.53) |
Waha Inside FERC to Henry Hub - Basis Swaps | 2026 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average differential (in dollars per unit) | 0 |
Henry Hub NYMEX - Call Option | 2023 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average differential (in dollars per unit) | 0 |
Henry Hub NYMEX - Call Option | 2024 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 5,490,000 |
Weighted average differential (in dollars per unit) | 3.87 |
Henry Hub NYMEX - Call Option | 2025 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 5,475,000 |
Weighted average differential (in dollars per unit) | 3.87 |
Henry Hub NYMEX - Call Option | 2026 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Henry Hub NYMEX - Collars | 2023 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 18,187,500 |
Weighted average floor price (in dollars per unit) | 4.16 |
Weighted average ceiling price (in dollars per unit) | 6.76 |
Henry Hub NYMEX - Collars | 2024 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 1,820,000 |
Weighted average floor price (in dollars per unit) | 4 |
Weighted average ceiling price (in dollars per unit) | 8.02 |
Henry Hub NYMEX - Collars | 2025 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 0 |
Weighted average ceiling price (in dollars per unit) | 0 |
Henry Hub NYMEX - Collars | 2026 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 0 |
Weighted average ceiling price (in dollars per unit) | 0 |
NE - TETCO M2 - Basis Swaps | 2023 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 15,040,000 |
Weighted average differential (in dollars per unit) | (1.04) |
NE - TETCO M2 - Basis Swaps | 2024 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 3,660,000 |
Weighted average differential (in dollars per unit) | (1.24) |
NE - TETCO M2 - Basis Swaps | 2025 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average differential (in dollars per unit) | 0 |
NE - TETCO M2 - Basis Swaps | 2026 | |
Derivative [Line Items] | |
Volume (in units) | MMBTU | 0 |
Weighted average differential (in dollars per unit) | 0 |
DERIVATIVE INSTRUMENTS AND PR_5
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT - Narrative (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Interest Rate Swap Contracts | |
Derivative [Line Items] | |
Notional amount | $ 100 |
DERIVATIVE INSTRUMENTS AND PR_6
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT - Summary of Classification of Outstanding Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Assets: | ||
Current assets | $ 35,293 | $ 2,519 |
Noncurrent assets | $ 12,547 | $ 1,863 |
Derivative asset statement of financial position extensible enumeration not disclosed flag | Total Derivative Assets | Total Derivative Assets |
Derivative Liabilities: | ||
Derivative liability, current, statement of financial position [extensible enumeration] | Liabilities, Current | Liabilities, Current |
Derivative liability statement of financial position extensible enumeration not disclosed flag | Total Derivative Liabilities | Total Derivative Liabilities |
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | $ 119,377 | $ 15,719 |
Gross amounts offset in the balance sheet, offsetting of derivative assets | (71,537) | (11,337) |
Net amounts of assets presented in the balance sheet, offsetting of derivative assets | 47,840 | 4,382 |
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (355,860) | (293,383) |
Gross amounts offset in the balance sheet, offsetting of derivative liabilities | 71,537 | 11,337 |
Net amounts of assets presented in the balance sheet, offsetting of derivative liabilities | $ (284,324) | $ (282,045) |
Derivative asset, current, statement of financial position [extensible enumeration] | Assets, Current | Assets, Current |
Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | $ 77,802 | $ 11,261 |
Gross amounts offset in the balance sheet, offsetting of derivative assets | (42,509) | (8,742) |
Net amounts of assets presented in the balance sheet, offsetting of derivative assets | 35,293 | 2,519 |
Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 41,575 | 4,458 |
Gross amounts offset in the balance sheet, offsetting of derivative assets | (29,028) | (2,595) |
Net amounts of assets presented in the balance sheet, offsetting of derivative assets | 12,547 | 1,863 |
Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (100,927) | (143,025) |
Gross amounts offset in the balance sheet, offsetting of derivative liabilities | 42,509 | 8,742 |
Net amounts of assets presented in the balance sheet, offsetting of derivative liabilities | (58,418) | (134,283) |
Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (254,933) | (150,357) |
Gross amounts offset in the balance sheet, offsetting of derivative liabilities | 29,028 | 2,595 |
Net amounts of assets presented in the balance sheet, offsetting of derivative liabilities | (225,905) | (147,762) |
Commodity Price Swap Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 30,513 | 4,272 |
Commodity Price Swap Contracts | Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 11,490 | 3,619 |
Commodity Price Swap Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (53,386) | (138,389) |
Commodity Price Swap Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (8,343) | (8,465) |
Commodity Basis Swap Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 5,620 | 1,916 |
Commodity Basis Swap Contracts | Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 547 | 309 |
Commodity Basis Swap Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (4,407) | (1,309) |
Commodity Basis Swap Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (3,071) | (823) |
Interest Rate Swap Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 1,017 | 89 |
Interest Rate Swap Contracts | Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 0 | 123 |
Interest Rate Swap Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | 0 | (189) |
Commodity Price Swaptions Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 0 | 3,020 |
Commodity Price Swaptions Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | 0 | (3,020) |
Commodity Price Swaptions Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (77,515) | (68,980) |
Commodity Price Collar Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 40,652 | 1,963 |
Commodity Price Collar Contracts | Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 29,538 | 407 |
Commodity Price Collar Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (29,218) | (119) |
Commodity Price Collar Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (33,210) | (275) |
Commodity Price Call Option Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | (13,916) | 0 |
Commodity Price Call Option Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross amounts of recognized assets (liabilities), offsetting of derivative liabilities | $ (132,794) | $ (71,815) |
EARNINGS PER SHARE - Reconcilia
EARNINGS PER SHARE - Reconciliation of the Numerators and Denominators Used to Calculate Basic EPS and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net Income (Loss) | $ 773,237 | $ 6,361 | $ (906,041) |
Less: Cumulative Dividends on Preferred Stock | 9,803 | 14,761 | 15,266 |
Less: Premium on Repurchase of Preferred Stock | 35,731 | 0 | 0 |
Net Income (Loss) Attributable to Common Stock | $ 727,703 | $ (8,400) | $ (921,307) |
Weighted Average Common Shares Outstanding: | |||
Weighted Average Common Shares Outstanding – Basic (in shares) | 78,557,216 | 62,989,543 | 42,744,639 |
Plus: Dilutive Effect of Restricted Stock and Preferred Stock, and Common Stock (in shares) | 8,118,149 | 0 | 0 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 86,675,365 | 62,989,543 | 42,744,639 |
Net Income (Loss) per Common Share: | |||
Basic (in dollars per share) | $ 9.26 | $ (0.13) | $ (21.55) |
Diluted (in dollars per share) | $ 8.92 | $ (0.13) | $ (21.55) |
EARNINGS PER SHARE - Securities
EARNINGS PER SHARE - Securities Excluded from the Calculation of Diluted Weighted Average Common Shares Outstanding (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | $ 0 | $ 10,377,207 | $ 9,997,971 |
Restricted Stock Awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 0 | 150,011 | 98,595 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | 0 | 9,758,871 | 9,899,376 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities | $ 0 | $ 468,325 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - MPDC Acquisition - USD ($) $ in Millions | Jan. 05, 2023 | Oct. 31, 2022 |
Subsequent Event [Line Items] | ||
Cash deposit | $ 43 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Ownership interest acquired | 39.958% | |
Cash consideration | $ 320 |
SUPPLEMENTAL OIL AND GAS INFO_3
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Costs Incurred (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Extractive Industries [Abstract] | |||
Proved Property Acquisition and Other | $ 1,036,412 | $ 434,519 | $ 50,345 |
Unproved Property Acquisition | 51,097 | 19,358 | 770 |
Development | 386,972 | 202,325 | 162,797 |
Total | $ 1,474,482 | $ 656,202 | $ 213,912 |
SUPPLEMENTAL OIL AND GAS INFO_4
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Capitalized Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Extractive Industries [Abstract] | ||||
Property Acquisition | $ 17,659 | $ 16,337 | $ 160 | $ 7,409 |
Development | 0 | 0 | 0 | 0 |
Total | $ 17,659 | $ 16,337 | $ 160 | $ 7,409 |
SUPPLEMENTAL OIL AND GAS INFO_5
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Proved Reserve Data (Details) bbl in Thousands, Mcf in Thousands, Boe in Thousands | 12 Months Ended | ||||||
Dec. 31, 2022 Boe MMBoe Mcf bbl | Dec. 31, 2022 Boe MMBoe bbl Mcf | Dec. 31, 2022 MMBoe Boe bbl Mcf | Dec. 31, 2022 MMBoe Boe bbl Mcf | Dec. 31, 2021 Boe MMBoe bbl Mcf | Dec. 31, 2020 Boe MMBoe Mcf bbl | Dec. 31, 2019 Boe Mcf bbl | |
Natural Gas | |||||||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||||||
Proved Developed and Undeveloped Reserves, Beginning Balance | Mcf | 937,724 | 159,641 | 189,318 | ||||
Revisions of Previous Estimates | Mcf | (14,678) | 89,115 | (21,512) | ||||
Extensions, Discoveries and Other Additions | Mcf | 54,431 | 32,432 | 8,308 | ||||
Purchases of Minerals in Place | Mcf | 99,760 | 700,610 | |||||
Production | Mcf | (68,829) | (44,074) | (16,473) | ||||
Proved Developed and Undeveloped Reserves, Ending Balance | Mcf | 1,008,407 | 937,724 | 159,641 | ||||
Proved Developed Reserves | Mcf | 611,856 | 611,856 | 611,856 | 611,856 | 498,558 | 114,060 | 116,846 |
Proved Undeveloped Reserve | Mcf | 396,551 | 396,551 | 396,551 | 396,551 | 439,165 | 45,581 | 72,473 |
Oil Revenues | |||||||
Proved Developed and Undeveloped Reserves [Roll Forward] | |||||||
Proved Developed and Undeveloped Reserves, Beginning Balance | bbl | 131,395 | 96,025 | 131,754 | ||||
Revisions of Previous Estimates | bbl | (2,787) | 19,914 | (33,289) | ||||
Extensions, Discoveries and Other Additions | bbl | 22,563 | 12,759 | 6,921 | ||||
Purchases of Minerals in Place | bbl | 27,660 | 14,985 | |||||
Production | bbl | (16,090) | (12,288) | (9,361) | ||||
Proved Developed and Undeveloped Reserves, Ending Balance | bbl | 162,741 | 131,395 | 96,025 | ||||
Proved Developed Reserves | bbl | 112,626 | 112,626 | 112,626 | 112,626 | 87,505 | 65,135 | 77,160 |
Proved Undeveloped Reserve | bbl | 50,115 | 50,115 | 50,115 | 50,115 | 43,890 | 30,890 | 54,594 |
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||||||
Revisions of Previous Estimates | MMBoe | (5.2) | 34.8 | (36.9) | ||||
Extensions, Discoveries and Other Additions | MMBoe | 31.6 | ||||||
Purchases of Minerals in Place | MMBoe | 131.8 | ||||||
Proved Developed Reserves | MMBoe | 13.3 | 13.3 | 13.3 | 13.3 | |||
BOE | |||||||
Proved Developed and Undeveloped Reserve (Energy) [Roll Forward] | |||||||
Proved Developed and Undeveloped Reserves, Beginning Balance | Boe | 287,682 | 122,632 | 163,307 | ||||
Revisions of Previous Estimates | Boe | (5,233) | 34,766 | (36,874) | ||||
Extensions, Discoveries and Other Additions | Boe | 31,635 | 18,164 | 8,306 | ||||
Purchases of Minerals in Place | 44,286 | 44.3 | 131,753 | ||||
Production | Boe | (27,562) | (19,634) | (12,107) | ||||
Proved Developed and Undeveloped Reserves, Ending Balance | Boe | 330,808 | 287,682 | 122,632 | ||||
Proved Developed Reserves | Boe | 214,602 | 214,602 | 214,602 | 214,602 | 170,598 | 84,145 | 96,634 |
Proved Undeveloped Reserves | Boe | 116,207 | 116,207 | 116,207 | 116,207 | 117,084 | 38,487 | 66,673 |
SUPPLEMENTAL OIL AND GAS INFO_6
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2022 Boe MMBoe | Dec. 31, 2021 MMBoe | Dec. 31, 2020 MMBoe | |
Reserve Quantities [Line Items] | |||
Downward adjustment attributable to removal of undeveloped drilling locations | Boe | 14.4 | ||
Oil Revenues | |||
Reserve Quantities [Line Items] | |||
Extension and discoveries attributable to successful drilling | 31.6 | ||
Proved Developed Reserves | 13.3 | ||
Purchase of mineral in place | 131.8 | ||
Increase (decrease) to proved reserves | (5.2) | 34.8 | (36.9) |
Upward (downward) adjustment attributable to higher crude oil and natural gas prices | 10.2 | 50.2 | |
Upward (downward) adjustment attributable to lower crude oil and natural gas prices | (33.8) | ||
Downward adjustment due to well performance | 1 | 1.1 | (0.7) |
Downward adjustment attributable to removal of undeveloped drilling locations | (14.2) | (2.3) | |
Williston Basin | Oil Revenues | |||
Reserve Quantities [Line Items] | |||
Extension and discoveries attributable to successful drilling | 18.2 | 8.3 | |
Proved Developed Reserves | 4.9 | 3.1 | |
Additional Locations | Oil Revenues | |||
Reserve Quantities [Line Items] | |||
Proved Developed Reserves | 18.3 | 13.3 | 5.2 |
SUPPLEMENTAL OIL AND GAS INFO_7
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Future Net Cash Flows of Proved Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Extractive Industries [Abstract] | ||||
Future Cash Inflows | $ 22,452,776 | $ 11,339,861 | $ 3,395,670 | |
Future Production Costs | (6,820,784) | (4,213,186) | (1,747,325) | |
Future Development Costs | (1,145,225) | (932,480) | (416,507) | |
Future Income Tax Expense | (2,764,111) | (947,303) | (3,273) | |
Future Net Cash Inflows | 11,722,656 | 5,246,892 | 1,228,565 | |
10% Annual Discount for Estimated Timing of Cash Flows | (5,285,758) | (2,356,783) | (516,554) | |
Standardized Measure of Discounted Future Net Cash Flows | $ 6,436,898 | $ 2,890,109 | $ 712,011 | $ 1,678,061 |
SUPPLEMENTAL OIL AND GAS INFO_8
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Average Sales Prices (Details) | 12 Months Ended | ||
Dec. 31, 2022 $ / Mcf $ / bbl | Dec. 31, 2021 $ / bbl $ / Mcf | Dec. 31, 2020 $ / bbl $ / Mcf | |
Natural Gas | |||
Reserve Quantities [Line Items] | |||
Average sale price (in dollars per volume unit) | $ / Mcf | 7.43 | 3.37 | 1.61 |
Oil | |||
Reserve Quantities [Line Items] | |||
Average sale price (in dollars per volume unit) | $ / bbl | 91.95 | 62.25 | 32.69 |
SUPPLEMENTAL OIL AND GAS INFO_9
SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) - Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Roll Forward] | |||
Beginning of Period | $ 2,890,109 | $ 712,011 | $ 1,678,061 |
Sales of Oil and Natural Gas Produced, Net of Production Costs | (1,566,927) | (727,317) | (177,932) |
Extensions and Discoveries | 888,067 | 258,399 | 52,232 |
Previously Estimated Development Cost Incurred During the Period | 147,439 | 85,526 | 78,633 |
Net Change of Prices and Production Costs | 3,424,794 | 1,366,197 | (815,278) |
Change in Future Development Costs | 141,884 | (103,806) | (150,991) |
Revisions of Quantity and Timing Estimates | (134,880) | 607,774 | (280,481) |
Accretion of Discount | 334,109 | 71,254 | 182,202 |
Change in Income Taxes | (1,014,277) | (450,455) | 143,438 |
Purchases of Minerals in Place | 1,157,060 | 940,910 | 0 |
Other | 169,521 | 129,615 | 19,902 |
End of Period | $ 6,436,898 | $ 2,890,109 | $ 712,011 |