COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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, par value $0.001 | |
Trading Symbol | NOG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100,172,478 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001104485 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash and Cash Equivalents | $ 7,778 | $ 8,195 |
Accounts Receivable, Net | 359,649 | 370,531 |
Advances to Operators | 21,685 | 49,210 |
Prepaid Expenses and Other | 2,651 | 2,489 |
Derivative Instruments | 19,569 | 75,733 |
Income Tax Receivable | 2,335 | 3,249 |
Total Current Assets | 413,667 | 509,407 |
Oil and Natural Gas Properties, Full Cost Method of Accounting | ||
Proved | 9,111,493 | 8,428,518 |
Unproved | 37,654 | 36,785 |
Other Property and Equipment | 8,146 | 8,069 |
Total Property and Equipment | 9,157,293 | 8,473,372 |
Less – Accumulated Depreciation, Depletion and Impairment | (4,891,014) | (4,541,808) |
Total Property and Equipment, Net | 4,266,279 | 3,931,563 |
Derivative Instruments | 4,107 | 10,725 |
Acquisition Deposit | 25,500 | 17,094 |
Other Noncurrent Assets, Net | 15,111 | 15,466 |
Total Assets | 4,724,664 | 4,484,255 |
Current Liabilities: | ||
Accounts Payable | 150,145 | 192,672 |
Accrued Liabilities | 215,833 | 147,943 |
Accrued Interest | 26,804 | 26,219 |
Derivative Instruments | 70,726 | 16,797 |
Other Current Liabilities | 2,061 | 2,130 |
Total Current Liabilities | 465,569 | 385,761 |
Long-term Debt, Net | 1,874,909 | 1,835,554 |
Deferred Tax Liability | 112,870 | 68,488 |
Derivative Instruments | 159,091 | 105,831 |
Asset Retirement Obligations | 41,409 | 38,203 |
Other Noncurrent Liabilities | 2,509 | 2,741 |
Total Liabilities | 2,656,357 | 2,436,578 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Common Stock, Par Value $.001; 270,000,000 Shares Authorized; 100,172,478 Shares Outstanding at 6/30/2024 100,761,148 Shares Outstanding at 12/31/2023 | 502 | 503 |
Additional Paid-In Capital | 1,995,432 | 2,124,963 |
Retained Earnings (Deficit) | 72,373 | (77,790) |
Total Stockholders’ Equity | 2,068,307 | 2,047,676 |
Total Liabilities and Stockholders’ Equity | $ 4,724,664 | $ 4,484,255 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | May 23, 2024 | May 22, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Common stock, shares authorized (in shares) | 270,000,000 | 270,000,000 | 135,000,000 | 270,000,000 |
Common stock, shares outstanding (in shares) | 100,172,478 | 100,761,148 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues | ||||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Oil and Gas Sales, Other Revenues | Oil and Gas Sales, Other Revenues | Oil and Gas Sales, Other Revenues | Oil and Gas Sales, Other Revenues |
Gain (Loss) on Commodity Derivatives, Net | $ (3,428) | $ 57,769 | $ (141,959) | $ 211,425 |
Total Revenues | 560,766 | 476,554 | 957,113 | 1,058,769 |
Operating Expenses | ||||
Production Expenses | 100,859 | 84,350 | 206,306 | 162,438 |
Production Taxes | 48,589 | 37,138 | 99,799 | 72,056 |
General and Administrative Expenses | 13,538 | 12,402 | 24,931 | 25,402 |
Depletion, Depreciation, Amortization, and Accretion | 176,612 | 106,427 | 350,570 | 201,045 |
Other Expenses | 2,232 | 1,446 | 4,251 | 2,447 |
Total Operating Expenses | 341,830 | 241,763 | 685,857 | 463,388 |
Income From Operations | 218,936 | 234,791 | 271,256 | 595,380 |
Other Income (Expense) | ||||
Interest Expense, Net of Capitalization | (37,696) | (31,968) | (75,620) | (62,111) |
Loss on Unsettled Interest Rate Derivatives, Net | 0 | 0 | 0 | (1,017) |
Gain on Extinguishment of Debt, Net | 0 | 0 | 0 | 659 |
Contingent Consideration Gain | 0 | 3,931 | 0 | 10,107 |
Other Income (Expense) | 63 | 72 | 119 | 4,691 |
Total Other Income (Expense) | (37,633) | (27,965) | (75,501) | (47,671) |
Income Before Income Taxes | 181,303 | 206,826 | 195,755 | 547,709 |
Income Tax Expense | 42,746 | 39,012 | 45,592 | 39,703 |
Net Income | $ 138,556 | $ 167,815 | $ 150,163 | $ 508,006 |
Net Income Per Common Share – Basic (in dollars per share) | $ 1.38 | $ 1.89 | $ 1.50 | $ 5.85 |
Net Income Per Common Share - Diluted (in dollars per share) | $ 1.36 | $ 1.88 | $ 1.47 | $ 5.82 |
Weighted Average Common Shares Outstanding – Basic (in shares) | 100,266,462 | 88,800,994 | 100,354,467 | 86,869,094 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 101,985,074 | 89,108,519 | 101,810,603 | 87,268,591 |
Oil and Gas Sales | ||||
Revenues | ||||
Oil and Gas Sales | $ 561,025 | $ 416,491 | $ 1,093,066 | $ 842,725 |
Other Revenues | ||||
Revenues | ||||
Oil and Gas Sales | $ 3,169 | $ 2,294 | $ 6,006 | $ 4,619 |
CONDENSED STATEMENTS OF CASH FL
CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities | ||
Net Income | $ 150,163 | $ 508,006 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depletion, Depreciation, Amortization, and Accretion | 350,570 | 201,045 |
Amortization of Debt Issuance Costs | 4,586 | 3,650 |
Gain on Extinguishment of Debt | 0 | (659) |
Amortization of Bond Premium/Discount on Long-term Debt | (568) | (901) |
Deferred Income Taxes | 44,382 | 38,813 |
Unrealized (Gain) Loss of Derivative Instruments | 169,972 | (169,473) |
Gain on Contingent Consideration | 0 | (10,107) |
Stock-Based Compensation Expense | 5,301 | 3,190 |
Other | 2,229 | 2,983 |
Changes in Working Capital and Other Items: | ||
Accounts Receivable, Net | 12,190 | 6,688 |
Prepaid and Other Expenses | (164) | (473) |
Accounts Payable | (398) | (15,514) |
Accrued Interest | 575 | 4,401 |
Accrued Liabilities and Expenses | (6,214) | 5,445 |
Net Cash Provided by Operating Activities | 732,624 | 577,094 |
Cash Flows from Investing Activities | ||
Capital Expenditures on Oil and Natural Gas Properties | (604,679) | (833,377) |
Acquisition Deposit | (25,500) | (37,500) |
Purchases of Other Property and Equipment | (76) | (503) |
Net Cash Used for Investing Activities | (630,255) | (871,380) |
Cash Flows from Financing Activities | ||
Advances on Revolving Credit Facility | 246,000 | 380,000 |
Repayments on Revolving Credit Facility | (209,000) | (699,000) |
Repurchase of Senior Notes Due 2028 | 0 | (18,436) |
Issuance of Senior Notes | 0 | 492,840 |
Debt Issuance Costs Paid | (1,875) | (8,524) |
Issuance of Common Stock | 0 | 224,682 |
Repurchases of Common Stock | (54,877) | (8,004) |
Restricted Stock Surrenders - Tax Obligations | (2,712) | (2,616) |
Common Dividends Paid | (80,322) | (54,377) |
Net Cash Provided by (Used for) Financing Activities | (102,786) | 306,564 |
Net Increase (Decrease) in Cash and Cash Equivalents | (417) | 12,278 |
Cash and Cash Equivalents - Beginning of Period | 8,195 | 2,528 |
Cash and Cash Equivalents - End of Period | $ 7,778 | $ 14,805 |
CONDENSED STATEMENTS OF STOCKHO
CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-In | Retained Earnings |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 85,165,807 | 0 | |||
Balance at beginning of period at Dec. 31, 2022 | $ 745,260 | $ 487 | $ 0 | $ 1,745,532 | $ (1,000,759) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of Common Stock (in shares) | 193,293 | ||||
Restricted Stock Forfeitures (in shares) | (6,854) | ||||
Restricted Stock Forfeitures | (54) | (54) | |||
Share Based Compensation | 2,316 | 2,316 | |||
Restricted Stock Surrenders - Tax Obligations (in shares) | (98,052) | ||||
Restricted Stock Surrenders - Tax Obligations | (2,616) | (2,616) | |||
Issuance of Common Stock in Exchange for Warrants (in shares) | 403,780 | ||||
Repurchases of Common Stock (in shares) | (287,751) | ||||
Repurchases of Common Stock | (8,004) | (8,004) | |||
Common Stock Dividends Declared | (29,026) | (29,026) | |||
Net Income | 340,191 | 340,191 | |||
Balance at end of period (in shares) at Mar. 31, 2023 | 85,370,223 | 0 | |||
Balance at end of period at Mar. 31, 2023 | 1,048,067 | $ 487 | $ 0 | 1,708,147 | (660,568) |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 85,165,807 | 0 | |||
Balance at beginning of period at Dec. 31, 2022 | 745,260 | $ 487 | $ 0 | 1,745,532 | (1,000,759) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 508,006 | ||||
Balance at end of period (in shares) at Jun. 30, 2023 | 93,022,758 | 0 | |||
Balance at end of period at Jun. 30, 2023 | 1,415,797 | $ 495 | $ 0 | 1,908,055 | (492,753) |
Balance at beginning of period (in shares) at Mar. 31, 2023 | 85,370,223 | 0 | |||
Balance at beginning of period at Mar. 31, 2023 | 1,048,067 | $ 487 | $ 0 | 1,708,147 | (660,568) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of Common Stock (in shares) | 11,585 | ||||
Restricted Stock Forfeitures (in shares) | (6,550) | ||||
Share Based Compensation | 1,207 | 1,207 | |||
Equity offerings, net of issuance costs (in shares) | 7,647,500 | ||||
Equity Offerings, Net of Issuance Costs | 224,682 | $ 8 | 224,674 | ||
Common Stock Dividends Declared | (34,414) | (34,414) | |||
Deferred Taxes Related to Capped Calls | 8,441 | 8,441 | |||
Net Income | 167,815 | 167,815 | |||
Balance at end of period (in shares) at Jun. 30, 2023 | 93,022,758 | 0 | |||
Balance at end of period at Jun. 30, 2023 | 1,415,797 | $ 495 | $ 0 | 1,908,055 | (492,753) |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 100,761,148 | 0 | |||
Balance at beginning of period at Dec. 31, 2023 | 2,047,676 | $ 503 | $ 0 | 2,124,963 | (77,790) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of Common Stock (in shares) | 139,873 | ||||
Share Based Compensation | 2,296 | 2,296 | |||
Restricted Stock Surrenders - Tax Obligations (in shares) | (71,548) | ||||
Restricted Stock Surrenders - Tax Obligations | (2,712) | (2,712) | |||
Acquisition of Oil and Natural Gas Properties (in shares) | 107,657 | ||||
Acquisition of Oil and Natural Gas Properties | 3,737 | 3,737 | |||
Issuance of Common Stock in Exchange for Warrants (in shares) | 656,297 | ||||
Issuance of Common Stock in Exchange for Warrants | 0 | $ 1 | (1) | ||
Repurchases of Common Stock (in shares) | (549,356) | ||||
Repurchases of Common Stock | (20,207) | $ (1) | (20,206) | ||
Common Stock Dividends Declared | (40,418) | (40,418) | |||
Net Income | 11,606 | 11,606 | |||
Balance at end of period (in shares) at Mar. 31, 2024 | 101,044,071 | 0 | |||
Balance at end of period at Mar. 31, 2024 | 2,001,980 | $ 503 | $ 0 | 2,067,660 | (66,183) |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 100,761,148 | 0 | |||
Balance at beginning of period at Dec. 31, 2023 | 2,047,676 | $ 503 | $ 0 | 2,124,963 | (77,790) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 150,163 | ||||
Balance at end of period (in shares) at Jun. 30, 2024 | 100,172,478 | 0 | |||
Balance at end of period at Jun. 30, 2024 | 2,068,307 | $ 502 | $ 0 | 1,995,432 | 72,373 |
Balance at beginning of period (in shares) at Mar. 31, 2024 | 101,044,071 | 0 | |||
Balance at beginning of period at Mar. 31, 2024 | 2,001,980 | $ 503 | $ 0 | 2,067,660 | (66,183) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of Common Stock (in shares) | 23,907 | ||||
Restricted Stock Forfeitures (in shares) | (424) | ||||
Restricted Stock Forfeitures | (2) | (2) | |||
Share Based Compensation | 3,058 | 3,058 | |||
Repurchases of Common Stock (in shares) | (895,076) | ||||
Repurchases of Common Stock | (35,218) | $ (1) | (35,217) | ||
Common Stock Dividends Declared | (40,067) | (40,067) | |||
Net Income | 138,556 | 138,556 | |||
Balance at end of period (in shares) at Jun. 30, 2024 | 100,172,478 | 0 | |||
Balance at end of period at Jun. 30, 2024 | $ 2,068,307 | $ 502 | $ 0 | $ 1,995,432 | $ 72,373 |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 6 Months Ended |
Jun. 30, 2024 | |
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, development and production of oil and natural gas properties in the United States, primarily in the Williston Basin, the Permian Basin and the Appalachian Basin. 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, with a core area of focus in three premier basins within the United States. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial information included herein is unaudited. The balance sheet as of December 31, 2023 has been derived from the Company’s audited financial statements for the year ended December 31, 2023. However, such information includes all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for an entire year. Certain information, accounting policies, and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to certain rules and regulations of the Securities and Exchange Commission (“SEC”). The condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2023, which were included in the Company’s 2023 Annual Report on Form 10-K for the fiscal year ended December 31, 2023. 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 unaudited condensed financial statements. 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 November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires the Company to expand the breadth and frequency of segment disclosures to include additional information about significant segment expenses, the chief operating decision maker (CODM) and other items, and also require the annual disclosures on an interim basis. This guidance is effective for annual periods beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact the new standard will have on its financial statements and related disclosure. 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 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 contract 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 three and six months ended June 30, 2024 and 2023, 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 Permian Basin (New Mexico and Texas), and the Appalachian Basin (Ohio and Pennsylvania). The following table presents the disaggregation of the Company’s oil revenues and natural gas and NGL revenues by basin for the three and six months ended June 30, 2024 and 2023. Three Months Ended Three Months Ended (In thousands) Williston Permian Appalachian Total Williston Permian Appalachian Total Oil Revenues $ 228,692 $ 259,800 $ 198 $ 488,690 $ 221,790 $ 132,045 $ — $ 353,834 Natural Gas and NGL Revenues 35,239 27,408 9,688 72,335 32,953 23,363 6,341 62,657 Other — 3,169 — 3,169 — 2,294 — 2,294 Total $ 263,931 $ 290,377 $ 9,886 $ 564,194 $ 254,743 $ 157,702 $ 6,341 $ 418,785 Six Months Ended Six Months Ended (In thousands) Williston Permian Appalachian Total Williston Permian Appalachian Total Oil Revenues $ 450,067 $ 503,980 $ 323 $ 954,369 $ 434,513 $ 274,700 $ — $ 709,213 Natural Gas and NGL Revenues 60,282 56,779 21,636 138,697 65,376 46,467 21,670 133,513 Other — 6,006 — 6,006 — 4,619 — 4,619 Total $ 510,349 $ 566,765 $ 21,959 $ 1,099,073 $ 499,889 $ 325,785 $ 21,670 $ 847,343 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 exploration, development and production 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 three months ended June 30, 2024, the Company’s top four operators made up 39% of total oil and natural gas sales, with one operator comprising of more than 10% but less than 15%. For the six months ended June 30, 2024, the Company’s top four operators made up 34% of total oil and natural gas sales, with no operators comprising of more than 10%. For the three months ended June 30, 2023, the Company’s top four operators made up 41% of total oil and natural gas sales, with three operators comprising of more than 10% but less than 15%. For the six months ended June 30, 2023, the Company’s top four operators made up 40% of total oil and natural gas sales, with two operators comprising of more than 10% but less than 15%. The Company faces concentration risk due to the fact that substantially all of its oil and natural gas revenue is sourced from a limited number of geographic areas of operations. As a result, the Company is disproportionately exposed to risks that affect one or more of those areas in the Williston Basin (North Dakota and Montana), the Permian Basin (New Mexico and Texas), and the Appalachian Basin (Ohio and Pennsylvania). 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 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. Net Income 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 Convertible Notes (see Note 4). 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. The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and six months ended June 30, 2024 and 2023 are as follows: Three Months Ended Six Months Ended (In thousands, except share and per share data) 2024 2023 2024 2023 Net Income $ 138,556 $ 167,815 $ 150,163 $ 508,006 Weighted Average Common Shares Outstanding: Weighted Average Common Shares Outstanding – Basic 100,266,462 88,800,994 100,354,467 86,869,094 Plus: Dilutive Effect of Restricted Stock and Common Stock Warrants 980,385 307,525 1,087,022 399,497 Plus: Dilutive Effect of Convertible Notes 738,227 — 369,114 — Weighted Average Common Shares Outstanding – Diluted 101,985,074 89,108,519 101,810,603 87,268,591 Net Income per Common Share: Basic $ 1.38 $ 1.89 $ 1.50 $ 5.85 Diluted $ 1.36 $ 1.88 $ 1.47 $ 5.82 Shares Excluded from EPS Due to Anti-Dilutive Effect: Restricted Stock — 1,324 — 1,934 Supplemental Cash Flow Information The following reflects the Company’s supplemental cash flow information: Six Months Ended (In thousands) 2024 2023 Supplemental Cash Items: Cash Paid During the Period for Interest, Net of Amount Capitalized $ 71,553 $ 59,311 Cash Paid During the Period for Income Taxes 296 891 Non-cash Investing Activities: Capital Expenditures on Oil and Natural Gas Properties Included in Accounts Payable and Accrued Liabilities 262,988 242,593 Capitalized Asset Retirement Obligations 4,074 2,367 Compensation Capitalized on Oil and Gas Properties 52 278 Issuance of Common Stock - Acquisition of Oil and Natural Gas Properties 3,737 — Non-cash Financing Activities: Issuance of Common Stock in Exchange for Warrants 23,338 13,328 Common Stock Dividends Declared, But Not Paid 40,064 34,512 Repurchases of Common Stock - Excise Tax 548 — |
CRUDE OIL AND NATURAL GAS PROPE
CRUDE OIL AND NATURAL GAS PROPERTIES | 6 Months Ended |
Jun. 30, 2024 | |
Oil and Gas Disclosure [Abstract] | |
CRUDE OIL AND NATURAL GAS PROPERTIES | CRUDE OIL AND NATURAL 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. 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 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 Company did not have any impairment of its proved oil and gas properties for the three and six months ended June 30, 2024 and 2023. 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 condensed 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. 2024 Acquisitions In addition to the closing of the Delaware Acquisition (as defined below), during the three and six months ended June 30, 2024, the Company acquired oil and natural gas properties through a number of smaller independent transactions for a total of $25.2 million and $30.1 million, respectively. Delaware Acquisition In January 2024, the Company completed its acquisition of certain oil and gas properties, interests and related assets in the Delaware Basin from a private seller, effective as of November 1, 2023 (the “Delaware Acquisition”). The total consideration paid to the seller at closing included 107,657 shares of common stock and $147.8 million in cash, a portion of which was funded by a $17.1 million deposit paid at signing in November 2023. As a result of customary post- closing adjustments, the Company decreased its proved oil and natural gas properties and total consideration by $0.4 million subsequent to closing. The results of operations from the acquisition from the January 16, 2024 closing date through June 30, 2024 represented approximately $22.3 million of revenue and $10.0 million of income from operations. The Company incurred $0.7 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the Company’s 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 $ 151,912 Total assets acquired 151,912 Asset retirement obligations (380) Net assets acquired $ 151,531 Fair value of consideration paid for net assets: Cash consideration $ 147,794 Non-cash consideration 3,737 Total fair value of consideration transferred $ 151,531 2023 Acquisitions During 2023, the Company completed the following larger bolt-on acquisitions (each as defined and described below): the MPDC Acquisition, the Forge Acquisition and the Novo Acquisition (collectively, the “2023 Bolt-on Acquisitions”). During 2023, in addition to the 2023 Bolt-on Acquisitions, the Company acquired oil and natural gas properties through a number of smaller independent transactions for a total of $277.9 million. MPDC Acquisition On January 5, 2023, the Company completed its acquisition (the “MPDC 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, which includes an interest in gathering assets associated with the project. The total consideration at closing was $319.9 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 $8.2 million subsequent to closing. The results of operations from the acquisition from the January 5, 2023 closing date through December 31, 2023 represented approximately $157.0 million of revenue and $102.3 million of income from operations. The Company incurred $3.5 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the Company’s 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 $ 320,395 Total assets acquired 320,395 Asset retirement obligations (451) Net assets acquired $ 319,944 Fair value of consideration paid for net assets: Cash consideration $ 319,944 Total fair value of consideration transferred $ 319,944 Forge Acquisition On June 30, 2023, the Company completed its acquisition (the “Forge Acquisition”) of certain Permian Delaware Basin assets from Forge Energy II Delaware, LLC (“Forge”), effective as of March 1, 2023. At closing, the Company acquired a 30% undivided stake in the assets sold by Forge, with Vital Energy, Inc., an unaffiliated third party, acquiring the other 70% and becoming the operator of the acquired assets. The total consideration at closing, net to the Company, was $167.9 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 $0.7 million subsequent to closing. The results of operations from the acquisition from the June 30, 2023, closing date through December 31, 2023 represented approximately $46.0 million of revenue and $29.3 million of income from operations. The Company incurred $2.3 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the Company’s 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 $ 164,925 Unproved oil and natural gas properties 3,892 Total assets acquired 168,817 Asset retirement obligations (889) Net assets acquired $ 167,928 Fair value of consideration paid for net assets: Cash consideration $ 167,928 Total fair value of consideration transferred $ 167,928 Novo Acquisition On August 15, 2023, the Company completed its acquisition (the “Novo Acquisition”) of certain Permian Delaware Basin assets of Novo Oil & Gas Holdings, LLC (“Novo”), effective as of May 1, 2023. At closing, the Company acquired a 33.33% undivided stake in the assets sold by Novo to Earthstone Energy Holdings, LLC (“Earthstone”), an unaffiliated third party, with Earthstone retaining the other 66.67% and becoming operator of the acquired assets. The total consideration at closing, net to the Company, was $468.4 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 $1.2 million subsequent to closing. The results of operations from the acquisition from the August 15, 2023 closing date through December 31, 2023 represented approximately $78.5 million of revenue and $40.9 million of income from operations. The Company incurred $4.6 million of transaction costs in connection with the acquisition, which are included in general and administrative expense in the Company’s 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 $ 474,417 Total assets acquired 474,417 Asset retirement obligations (813) Accrued Liabilities (5,168) Net assets acquired $ 468,436 Fair value of consideration paid for net assets: Cash consideration $ 468,436 Total fair value of consideration transferred $ 468,436 Pro Forma Information The following summarized unaudited pro forma condensed statement of operations information for the three months ended June 30, 2023, and the six months ended June 30, 2024 and 2023, assumes that the Delaware Acquisition and each of the 2023 Bolt-on Acquisitions occurred as of January 1, 2023. There is no pro forma information included for the three months ended June 30, 2024, because the Company’s actual financial results for such period fully reflect all such acquisitions. 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, 2023, or that would be attained in the future. Six Months Ended Three Months Ended Six Months Ended (In thousands) June 30, 2024 June 30, 2023 June 30, 2023 Total Revenues $ 960,063 $ 636,733 $ 1,350,237 Net Income (Loss) 152,086 295,930 711,735 Unproved Properties All properties that are not classified as proved properties are considered unproved properties and, thus, the costs associated with such properties are not subject to depletion. Once a property is classified as proved, all associated acreage and drilling costs are subject to depletion. The Company historically has acquired 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. 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 depleted and amortized on the unit-of-production method. Under this method, depletion is calculated |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT The Company’s long-term debt consists of the following: June 30, 2024 (In thousands) Principal Balance Unamortized Premium/(Discount) Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 198,000 $ — $ — $ 198,000 Senior Notes due 2028 705,108 7,366 (8,237) 704,237 Convertible Notes due 2029 500,000 — (13,002) 486,998 Senior Notes due 2031 500,000 (6,159) (8,167) 485,675 Total $ 1,903,108 $ 1,207 $ (29,406) $ 1,874,909 December 31, 2023 Principal Balance Unamortized Premium/(Discount) Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 161,000 $ — $ — $ 161,000 Senior Notes due 2028 705,108 8,376 (9,366) 704,117 Convertible Notes due 2029 500,000 — (14,214) 485,786 Senior Notes due 2031 500,000 (6,600) (8,749) 484,651 Total $ 1,866,108 $ 1,776 $ (32,330) $ 1,835,554 ________________ (1) Debt issuance costs related to the Company’s Revolving Credit Facility of $10.8 million and $10.6 million as of June 30, 2024 and December 31, 2023, 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 (as amended, modified, or supplemented through the date of this filing, 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 June 30, 2024, the borrowing base was $1.8 billion and the aggregate elected commitment amount was $1.5 billion. The Company’s borrowing availability under the Revolving Credit Facility 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 (acting at the direction of the lenders holding at least two-thirds of commitments and loans outstanding under the Revolving Credit Facility) between scheduled redeterminations. Upon an acquisition of oil and gas properties with an aggregate value exceeding 5% of the borrowing base, the Company may request an additional redetermination. The scheduled redeterminations are based on a December 31st or June 30th reserve report, as applicable, prepared under the supervision of the Company’s chief engineer and, in the case of the December 31st reserve report, audited by an approved petroleum engineer (reasonably acceptable to the Agent). The Company has the option to seek commitments for term loans, which such term loans (if obtained) are capped at the least of (i) the borrowing base minus the aggregate elected commitment amount minus the then-outstanding principal amount of term loans, (ii) the aggregate elected commitment amount minus the then-outstanding principal amount of term loans and (iii) $500.0 million. Such term loans are subject to certain 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, 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 Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging (“ASC 815”), divided by consolidated current liabilities excluding current non-cash obligations under 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 June 30, 2024. 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 due 2028 On February 18, 2021, the Company and Wilmington Trust, National Association, as trustee, entered into an indenture (the “2028 Notes Indenture”), pursuant to which the Company issued $550.0 million in aggregate principal amount of 8.125% senior 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 due 2028”). The proceeds of the Senior Notes due 2028 were used primarily to refinance existing indebtedness, and for general corporate purposes. During the six months ended June 30, 2023, the Company repurchased and retired $19.1 million in aggregate principal amount of the Senior Notes due 2028 in open market transactions for a total of $18.4 million in cash, plus accrued interest. The Senior Notes due 2028 will mature on March 1, 2028. Interest is payable semi-annually in arrears on each March 1 and September 1 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. The Company may redeem all or a part of the Senior Notes due 2028 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. If a Change of Control Triggering Event (as defined in the 2028 Notes Indenture) occurs, each holder of Senior Notes due 2028 may require the Company to repurchase all or any part of that holder’s the Senior Notes due 2028 for cash at a price equal to 101% of the aggregate principal amount of the Senior Notes due 2028 repurchased, plus any accrued and unpaid interest on the Senior Notes due 2028 repurchased to, but excluding, the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date on or prior to the date of purchase). The 2028 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 due 2028 achieve an investment grade rating from either Moody’s Investors Services, Inc. or S&P Global Ratings. The 2028 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 due 2028; (ii) default in payment when due of the principal of, or premium, if any, on the Senior Notes due 2028; (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 due 2028 or the 2028 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 2028 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 2028 Notes Indenture, any guarantee of the Senior Notes due 2028 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 2028 Notes Indenture); and (vii) certain events of bankruptcy or insolvency described in the 2028 Notes Indenture with respect to the Company and its restricted subsidiaries that are Significant Subsidiaries. Convertible Notes due 2029 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 mature on April 15, 2029, unless earlier repurchased, redeemed or converted. The Convertible Notes accrue interest at a rate of 3.625% per annum, payable semi-annually in arrears on April 15 and October 15 of each year. Before October 16, 2028, noteholders 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 was 26.3104 shares of common stock per $1,000 principal amount of Convertible Notes, which represented an initial conversion price of approximately $38.01 per share of common stock. The conversion rate and conversion price are subject to customary anti-dilution and other adjustments upon the occurrence of certain events. As of June 30, 2024, the conversion rate was 26.6642 shares of common stock per $1,000 principal amount of Convertible Notes, which represented a conversion price of approximately $37.50 per share of common stock. 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 are 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 (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 $50.0 million; (vi) the rendering of certain judgments against the Company or any of its subsidiaries for the payment of at least $50.0 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 (as defined in the Convertible Notes Indenture), 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 In October 2022, in connection with the Convertible Notes offering described above, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain of the initial purchasers of the Convertible Notes and/or their respective affiliates and/or other financial institutions. The Company paid $36.1 million in total consideration to enter into the Capped Call Transactions. The Capped Call Transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Convertible Notes, the number of shares of common stock initially underlying the Convertible Notes. The Capped Call Transactions are expected generally to reduce potential dilution to the common stock upon any conversion of Convertible Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of such converted Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap. The cap price of the Capped Call Transactions was initially approximately $52.17 per share of common stock, which represents a premium of 75% over the last reported sale price of the common stock of $29.81 per share on October 11, 2022, and is subject to certain customary adjustments under the terms of the Capped Call Transactions. As of June 30, 2024, the cap price of the Capped Call Transactions was approximately $51.48 per share of common stock. Senior Notes due 2031 On May 15, 2023, the Company and Wilmington Trust, National Association, as trustee, entered into an indenture (the “2031 Notes Indenture”), pursuant to which the Company issued $500.0 million in aggregate principal amount of the Company’s 8.750% senior notes due 2031 (the “Senior Notes due 2031”). The proceeds of the Senior Notes due 2031 were used primarily to refinance existing indebtedness, and for general corporate purposes. The Senior Notes due 2031 will mature on June 15, 2031. Interest is payable semi-annually in arrears on each June 15 and December 15, to holders of record on the June 1 and December 1 immediately preceding the related interest payment date, at a rate of 8.750% per annum. Prior to June 15, 2026, the Company may redeem up to 35% of the aggregate principal amount of Senior Notes due 2031, upon not less than 10 or more than 60 days’ notice, at a redemption price of 108.750% of the principal amount of the Senior Notes due 2031 redeemed, plus accrued and unpaid interest, if any, to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the redemption date), in an amount not greater than the net cash proceeds of one or more equity offerings by the Company, provided that (i) at least 65% of the aggregate principal amount of Senior Notes due 2031 issued under the 2031 Notes Indenture (including any Additional Notes (as defined in the 2031 Notes Indenture) but excluding the Senior Notes due 2031 held by the Company and its Subsidiaries (as defined in the 2031 Notes Indenture)) remains outstanding immediately after the occurrence of such redemption (unless all Senior Notes due 2031 are redeemed substantially concurrently) and (ii) the redemption occurs within 180 days of the date of the closing of each such equity offering. In addition, prior to June 15, 2026, the Company may redeem all or a part of the Senior Notes due 2031, on any one or more occasions, upon not less than 10 or more than 60 days’ notice, at a redemption price equal to 100% of the principal amount of the Senior Notes due 2031 redeemed, plus an applicable make-whole premium and accrued and unpaid interest, if any, to, but excluding, the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the redemption date). On or after June 15, 2026, the Company may redeem all or a part of the Senior Notes due 2031 at redemption prices (expressed as percentages of principal amount) equal to 104.375% for the twelve-month period beginning on June 15, 2026, 102.188% for the twelve-month period beginning on June 15, 2027, and 100% beginning on June 15, 2028, plus accrued and unpaid interest to the redemption date. If a Change of Control Triggering Event (as defined in the 2031 Notes Indenture) occurs, each holder of Senior Notes due 2031 may require the Company to repurchase all or any part of that holder’s Senior Notes due 2031 for cash at a price equal to 101% of the aggregate principal amount of the Senior Notes due 2031 repurchased, plus any accrued and unpaid interest on the Senior Notes due 2031 repurchased to, but excluding, the date of purchase (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date on or prior to the date of purchase). The 2031 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 due 2031 achieve an investment grade rating from either Moody’s Investors Service, Inc. or S&P Global Ratings. The 2031 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 due 2031; (ii) default in payment when due of the principal of, or premium, if any, on the Senior Notes due 2031; (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 due 2031 or the 2031 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 2031 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 2031 Notes Indenture, any guarantee of the Senior Notes due 2031 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 2031 Notes Indenture); and (vii) certain events of bankruptcy or insolvency described in the 2031 Notes Indenture with respect to the Company and its restricted subsidiaries that are Significant Subsidiaries. |
COMMON AND PREFERRED STOCK
COMMON AND PREFERRED STOCK | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
COMMON AND PREFERRED STOCK | COMMON AND PREFERRED STOCK Common Stock On May 23, 2024, the Company filed an amendment to its certificate of incorporation, which was effective upon filing, to increase the number of authorized shares of common stock, par value 0.001 per share, from 135,000,000 to 270,000,000, as approved by the Company’s stockholders at the 2024 Annual Meeting of Stockholders on May 23, 2024. As of June 30, 2024, the Company had 100,172,478 shares of common stock issued and outstanding. 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 Company’s board of directors. As of June 30, 2024, the Company had zero shares of preferred stock issued and outstanding. 2024 Activity Common Stock During the six months ended June 30, 2024, 71,548 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 $5.8 million, which is based on the market prices on the dates the shares were surrendered. During the six months ended June 30, 2024, the Company issued 656,297 shares of common stock in exchange for the surrender and cancellation of outstanding warrants to purchase common stock, which immediately prior to their cancellation were exercisable for an aggregate of approximately 1,223,963 shares of common stock at an exercise price of $26.3324 per share. During the six months ended June 30, 2024, the Company issued 107,657 shares of its common stock as partial consideration for the Delaware Acquisition (see Note 3). Dividends In February 2024, the Company’s board of directors declared a cash dividend on the Company’s common stock in the amount of $0.40 per share. The dividend was paid on April 30, 2024 to stockholders of record as of the close of business on March 28, 2024. In May 2024, the Company’s board of directors declared a cash dividend on the Company’s common stock in the amount of $0.40 per share. The dividend was paid on July 31, 2024 to stockholders of record as of the close of business on June 27, 2024. 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. In July 2024, the Company’s board of directors terminated the prior stock repurchase program, which was substantially depleted, and approved a new 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 six months ended June 30, 2024, the Company repurchased 1,444,432 shares of its common stock for $55.4 million (including commissions and $0.5 million in excise tax) under the Company’s then current stock repurchase program. During the six months ended June 30, 2023, the Company repurchased 287,751 shares of its common stock under the same stock repurchase program at a total cost of $8.0 million. The Company’s accounting policy upon the repurchase of shares is to deduct its par value from common stock and to reflect any excess of cost over par value as a deduction from Additional Paid-in Capital. All repurchased shares are included in the Company’s pool of authorized but unissued shares. |
STOCK-BASED COMPENSATION AND WA
STOCK-BASED COMPENSATION AND WARRANTS | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION AND WARRANTS | STOCK-BASED COMPENSATION AND WARRANTS Stock-Based Compensation The Company maintains the Amended and Restated 2018 Equity Incentive Plan (the “2018 Plan”) for the purpose of making equity-based awards to employees, directors and other eligible persons. As of June 30, 2024, there were 2,841,360 shares available for future awards or settlement of 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 unaudited 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 unaudited balance sheet. Issuances made pursuant to the 2018 Plan are summarized as follows: The Company issues share-based awards in the form of restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and share appreciation awards (“SARs”), subject to various vesting conditions, as compensation to executive officers, employees and directors of the Company. Typically, RSAs issued to employees and executive officers contain a service condition only and generally vest over three For awards 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 subject to both service and performance conditions are recognized on a graded basis 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. Service-Based RSAs The following table reflects the outstanding service-based RSAs and activity related thereto for the six months ended June 30, 2024: Service-based Awards Number of Shares Weighted-average Grant Date Fair Value Outstanding at December 31, 2023 497,722 $ 27.45 Shares granted 163,780 35.82 Shares forfeited (424) 35.41 Shares vested (180,387) 25.88 Outstanding at June 30, 2024 480,691 $ 35.41 At June 30, 2024, there was $13.5 million of total unrecognized compensation expense related to unvested RSAs. That cost is expected to be recognized over a weighted average period of 1.49 years. For the six months ended June 30, 2024 and 2023, the total fair value of the Company’s RSAs that vested was $5.8 million and $6.2 million, respectively. For the six months ended June 30, 2024, the compensation expenses associated with these awards were $3.7 million. Performance Equity Awards In April 2022, the Company granted performance equity awards under its 2022 executive compensation program to certain executive officers. The awards were subject to a market condition, which was based on a comparison of the Company versus a defined peer group with respect to TSR based on the last 20 trading days of 2022 compared to the same period of 2021 (“2022 TSR Awards”). Depending on the Company’s TSR relative to the defined peer group, the award recipients in the aggregate could 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. In January 2023, the Company issued 74,220 restricted shares of common stock in settlement of these awards, with service-based vesting over three years. The shares are included in the above table. In December 2023, the Company granted performance equity awards, in the form of RSUs, that are subject to the achievement of either the Company’s absolute TSR or a comparison of the Company’s TSR versus a defined peer group based on the last 20 trading days of 2025 compared to the same period of 2022 (“2023 TSR Awards”). The number of RSUs issued as a target amount on the grant date was 83,710. Depending on the Company’s stock performance, the number of common shares grantees shall be entitled to receive following the end of the performance period on December 31, 2025, can range from zero to 166% of the target amount. The grant date fair value for these awards ranges from $35.73 per share to $52.41 per share. For the six months ended June 30, 2024, the compensation expenses associated with these awards were $0.9 million. As of June 30, 2024, the unrecognized compensation expenses were $2.8 million, which will be amortized over the remaining performance period. The following table reflects the outstanding 2023 TSR Awards and activity related thereto for the six months ended June 30, 2024: 2023 TSR Awards Number of Units Weighted-average Grant Date Fair Value Outstanding at December 31, 2023 83,710 $ 44.49 Units granted — — Units forfeited — — Units vested — — Outstanding at June 30, 2024 83,710 $ 44.49 In December 2023, the Company also granted performance equity awards, in the form of SARs, that are subject to the achievement of an annualized adjusted market capitalization appreciation rate measured based on the last 20 trading days of 2027 compared to the same period of 2022 (“2023 SARs Awards”). The final payout (if any) will be a dollar amount, which may be settled in cash, shares or a combination of both at the Company’s option. The Company plans to settle the 2023 SARs Awards by issuing a number of common shares equal to the payout amount divided by the trailing 20-day average price as of the last trading day of 2027. In 2023, the Company issued SARs with an aggregate grant-date fair value of $6.0 million. For the six months ended June 30, 2024, the compensation expenses associated with these awards were $0.7 million. As of June 30, 2024, the unrecognized compensation expenses for these awards were $5.2 million, which will be amortized over the remaining performance period. The Company used Monte Carlo simulation models, described above, to estimate (i) the fair value of the 2022 TSR Awards and 2023 TSR Awards based on the expected outcome of the Company’s absolute TSR as well as TSR relative to the defined peer group and (ii) the fair value of the SARs based on the expected outcome of the Company’s market capitalization appreciation rate. The assumptions used for the Monte Carlo model were as follows: 2022 2023 TSR Awards TSR Awards SARs Awards Risk-free interest rate 1.69 % 4.23 % 3.92 % Dividend yield 2.40 % — % 4.30 % Expected volatility 56.94 % 56.40 % 72.30 % Company’s closing stock price on grant date $ 24.98 $ 37.07 $ 37.07 Warrants In January 2022, as partial consideration for the purchase of certain oil and gas properties, the Company issued warrants 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) (the “Warrants”). In March 2023, the Company issued 403,780 shares of common stock in exchange for the surrender and cancellation of a portion of the Warrants. Immediately prior to their cancellation, such Warrants that were surrendered were exercisable for an aggregate of approximately 824,602 shares of common stock at an exercise price of $27.4946 per share. Neither the Company nor the holders paid any cash consideration in the transaction. In March 2024, the Company issued 656,297 shares of common stock in exchange for the surrender and cancellation of all of the remaining Warrants. Immediately prior to their cancellation, such Warrants that were surrendered were exercisable for an aggregate of approximately 1,223,963 shares of common stock at an exercise price of $26.3324 per share. Neither the Company nor the holders paid any cash consideration in the transaction. The following table reflects the outstanding warrants and activity related thereto for the six months ended June 30, 2024: Warrants Number of Warrants Weighted-average Exercise Price Outstanding at December 31, 2023 1,223,963 $ 26.33 Issued — — Anti-Dilution Adjustments for Common Stock Dividends — — Exercised — — Cancelled (1,223,963) 26.33 Expired — — Outstanding at June 30, 2024 — $ — |
COMMITMENTS & CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
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. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The provision for income taxes for the three and six months ended June 30, 2024 and 2023 differs from the amount that would be provided by applying the statutory U.S. federal income tax rate of 21% to pre-tax income primarily due to the non-deductibility of permanent items, state income taxes, and discrete items during the three and six months ended June 30, 2024 and the recognition of a full valuation allowance during the three and six months ended June 30, 2023. In assessing the realizability of deferred tax assets (“DTAs”), management considers whether it is more likely than not that some portion, or all, of the Company’s DTAs will not be realized. In making such determination, the Company considers 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. If the Company concludes that it is more likely than not that some portion, or all, of its DTAs will not be realized, the tax asset is reduced by a valuation allowance. The Company assesses the appropriateness of its valuation allowance on a quarterly basis. The Company’s income tax expense was $42.7 million and $39.0 million for the three months ended June 30, 2024 and 2023, respectively. The effective tax rates for the three months ended June 30, 2024 and 2023 were 23.6% and 18.9%, respectively. The Company’s income tax expense was $45.6 million and $39.7 million for the six months ended June 30, 2024 and 2023, respectively. The effective tax rates for the six months ended June 30, 2024 and 2023 were 23.3% and 7.2%, respectively. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets 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 June 30, 2024 and December 31, 2023: Fair Value Measurements at June 30, 2024 Using (In thousands) Quoted Prices In Active Markets for Identical Assets (Liabilities) Significant Other Observable Inputs Significant Unobservable Inputs Commodity Derivatives – Current Assets $ — $ 19,569 $ — Commodity Derivatives – Noncurrent Assets — 4,107 — Commodity Derivatives – Current Liabilities — (70,726) — Commodity Derivatives – Noncurrent Liabilities — (159,091) — Total $ — $ (206,141) $ — Fair Value Measurements at December 31, 2023 Using (In thousands) Quoted Prices In Active Markets for Identical Assets (Liabilities) Significant Other Observable Inputs Significant Unobservable Inputs Commodity Derivatives – Current Assets $ — $ 75,733 $ — Commodity Derivatives – Noncurrent Assets — 10,725 — Commodity Derivatives – Current Liabilities — (16,797) — Commodity Derivatives – Noncurrent Liabilities — (105,831) — Total $ — $ (36,169) $ — Commodity Derivatives. The Level 2 instruments presented in the tables above consist of commodity derivative instruments (see Note 10). 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 condensed balance sheet. The current derivative asset and liability amounts represent the fair values expected to be settled in the subsequent twelve months. 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 due 2028, Convertible Notes due 2029 and Senior Notes due 2031 was $710.4 million, $581.6 million and $522.5 million, respectively, at June 30, 2024. These fair values 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 Company estimates asset retirement obligations pursuant to the provisions of FASB ASC Topic 410, Asset Retirement and Environmental Obligations. The initial measurement of asset retirement obligations 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 asset retirement obligations liability is deemed to use Level 3 inputs. Asset retirement obligations incurred and acquired during the six months ended June 30, 2024 were approximately $3.0 million. The Company issued common stock warrants in January 2022 as a part of the purchase consideration for certain oil and gas properties acquired by the Company. Upon issuance, the Warrants granted 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), generally exercisable from April 27, 2022 until January 27, 2029. A portion of the Warrants were surrendered and cancelled in March 2023, and the remaining Warrants were surrendered and cancelled in March 2024, in each case in exchange for shares of common stock. See Note 6. The fair value of the 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 six months ended June 30, 2024 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 six months ended June 30, 2024. |
DERIVATIVE INSTRUMENTS AND PRIC
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT | 6 Months Ended |
Jun. 30, 2024 | |
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 9). 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 condensed 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 condensed financial statements: Three Months Ended Six Months Ended (In thousands) 2024 2023 2024 2023 Cash Received on Settled Derivatives $ 8,896 $ 27,265 $ 28,012 $ 40,935 Non-Cash Mark-to-Market Gain (Loss) on Derivatives (12,324) 30,503 (169,972) 170,490 Gain (Loss) on Commodity Derivatives, Net $ (3,428) $ 57,769 $ (141,959) $ 211,425 The following table summarizes open commodity derivative positions as of June 30, 2024, for commodity derivatives that were entered into through June 30, 2024, for the settlement period presented : 2024 2025 2026 2027 2028 Oil: WTI NYMEX - Swaps: Volume (Bbl) 5,436,205 6,279,687 1,434,557 — — Weighted-Average Price ($/Bbl) $ 74.73 $ 73.95 $ 71.88 $ — $ — WTI NYMEX - Swaptions (1) : Volume (Bbl) 552,000 4,268,075 4,108,995 730,000 640,500 Weighted-Average Price ($/Bbl) $ 78.42 $ 72.99 $ 67.70 $ 75.30 $ 70.00 Argus American Crude WTI Midland to WTI NYMEX - Basis Swaps: Volume (Bbl) 3,131,981 4,319,776 2,595,291 — — Weighted-Average Price ($/Bbl) $ 1.15 $ 1.05 $ 1.10 $ — $ — WTI NYMEX - Call Options (1) : Volume (Bbl) 368,000 4,346,420 4,526,365 3,102,500 366,000 Weighted-Average Price ($/Bbl) $ 85.00 $ 80.36 $ 70.65 $ 82.94 $ 80.00 Brent ICE - Call Options: Volume (Bbl) — — — — 316,590 Weighted-Average Price ($/Bbl) $ — $ — $ — $ — $ 80.00 WTI NYMEX - Collars: Collar Put Volume (Bbl) 3,158,056 2,406,539 1,071,842 — — Collar Call Volume (Bbl) 3,483,805 3,454,962 1,544,057 — — Weighted-average floor price (Bbl) $ 71.13 $ 69.77 $ 68.89 $ — $ — Weighted-average ceiling price (Bbl) $ 80.99 $ 78.66 $ 75.28 $ — $ — Natural Gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 18,578,366 4,085,000 1,825,000 155,000 — Weighted-Average Price ($/MMBtu) $ 3.49 $ 3.59 $ 3.20 $ 3.20 $ — Henry Hub NYMEX - Swaptions: Volume (MMBtu) — 20,075,000 5,475,000 — — Weighted-Average Price ($/MMBtu) $ — $ 3.89 $ 4.00 $ — $ — Waha Inside FERC to Henry Hub - Basis Swaps: Volume (MMBtu) 9,568,000 18,568,000 14,600,000 3,650,000 — Weighted-Average Differential ($/MMBtu) $ (0.85) $ (0.85) $ (0.78) $ (0.78) $ — NE - TETCO M2 - Basis Swaps: Volume (MMBtu) 7,360,000 3,650,000 1,825,000 — — Weighted-Average Differential ($/MMBtu) $ (0.99) $ (1.01) $ (1.14) $ — $ — Henry Hub NYMEX - Call Options: Volume (MMBtu) 3,428,050 12,207,700 3,239,500 35,523,000 6,700,000 Weighted-Average Price ($/MMBtu) $ 3.82 $ 3.73 $ 6.00 $ 5.97 $ 5.50 Henry Hub NYMEX - Collars: Collar Put Volume (MMBtu) 16,456,586 33,994,006 22,182,303 3,340,000 — Collar Call Volume (MMBtu) 16,456,586 33,994,006 22,182,303 3,340,000 — Weighted-average floor price ($/MMBtu) $ 3.06 $ 3.12 $ 3.09 $ 3.00 $ — Weighted-average ceiling price ($/MMBtu) $ 4.51 $ 4.93 $ 5.04 $ 3.83 $ — ______________ (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. 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 June 30, 2024 and December 31, 2023, respectively. Certain amounts may be presented on a net basis in the condensed financial statements when such amounts are with the same counterparty and subject to a master netting arrangement. (In thousands) Type of Commodity Balance Sheet Location June 30, 2024 Estimated Fair Value December 31, 2023 Estimated Fair Value Derivative Assets: Commodity Price Swap Contracts Current Assets $ 16,555 $ 61,323 Commodity Basis Swap Contracts Current Assets 8,171 4,487 Commodity Price Collar Contracts Current Assets 22,782 36,619 Commodity Price Call Option Contracts Current Assets 4,062 17,964 Commodity Price Put Option Contracts Current Assets — 664 Commodity Price Swap Contracts Noncurrent Assets 6,414 16,621 Commodity Basis Swap Contracts Noncurrent Assets 7,893 1,874 Commodity Price Collar Contracts Noncurrent Assets 29,645 26,841 Commodity Price Call Option Contracts Noncurrent Assets 2,330 3,635 Total Derivative Assets $ 97,852 $ 170,029 Derivative Liabilities: Commodity Price Swap Contracts Current Liabilities $ (32,205) $ (8,079) Commodity Basis Swap Contracts Current Liabilities (4,950) (6,796) Commodity Price Swaptions Contracts Current Liabilities (23,000) (1,496) Commodity Price Collar Contracts Current Liabilities (26,003) (14,370) Commodity Price Call Option Contracts Current Liabilities (16,569) (31,380) Commodity Price Swap Contracts Noncurrent Liabilities (5,252) (2,288) Commodity Basis Swap Contracts Noncurrent Liabilities (4,329) (8,922) Commodity Price Collar Contracts Noncurrent Liabilities (37,834) (18,849) Commodity Price Call Option Contracts Noncurrent Liabilities (91,492) (78,123) Commodity Price Swaptions Contracts Noncurrent Liabilities (62,359) (35,896) Total Derivative Liabilities $ (303,993) $ (206,198) 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 June 30, 2024 (In thousands) Gross Amounts of Gross Amounts Offset Net Amounts of Assets (Liabilities) Presented on the Balance Sheet Offsetting of Derivative Assets: Current Assets $ 51,571 $ (32,002) $ 19,569 Non-Current Assets 46,282 (42,174) 4,107 Total Derivative Assets $ 97,852 $ (74,176) $ 23,676 Offsetting of Derivative Liabilities: Current Liabilities $ (102,727) $ 32,002 $ (70,726) Non-Current Liabilities (201,266) 42,174 (159,091) Total Derivative Liabilities $ (303,993) $ 74,176 $ (229,817) Estimated Fair Value at December 31, 2023 (In thousands) Gross Amounts of Gross Amounts Offset Net Amounts of Assets (Liabilities) Presented on the Balance Sheet Offsetting of Derivative Assets: Current Assets $ 121,057 $ (45,324) $ 75,733 Non-Current Assets 48,971 $ (38,246) 10,725 Total Derivative Assets $ 170,029 $ (83,570) $ 86,459 Offsetting of Derivative Liabilities: Current Liabilities $ (62,120) $ 45,324 $ (16,797) Non-Current Liabilities (144,077) 38,246 (105,831) Total Derivative Liabilities $ (206,198) $ 83,570 $ (122,628) 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 June 30, 2024. 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 9 for the aggregate fair value of all derivative instruments that were in a net liability position at June 30, 2024 and December 31, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 138,556 | $ 11,606 | $ 167,815 | $ 340,191 | $ 150,163 | $ 508,006 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The information required by Item 408(a) of Regulation S-K is included in the table below. Name (Title) Action Date Trading Arrangement Total Shares to be Sold Expiration Date Rule 10b5-1* Non-Rule 10b5-1** Nicholas O’Grady (CEO) Adopt May 24, 2024 X 25,000 August 22, 2025 Adam Dirlam (President) Adopt May 30, 2024 X 25,008 July 31, 2025 Chad Allen (CFO) Adopt May 31, 2024 X 12,000 July 31, 2025 Erik Romslo (CLO) Adopt May 20, 2024 X 15,000 June 30, 2025 * Intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. ** Not intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Nicholas O'Grady [Member] | ||
Trading Arrangements, by Individual | ||
Name | Nicholas O’Grady | |
Title | CEO | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 24, 2024 | |
Expiration Date | August 22, 2025 | |
Arrangement Duration | 455 days | |
Aggregate Available | 25,000 | 25,000 |
Adam Dirlam [Member] | ||
Trading Arrangements, by Individual | ||
Name | Adam Dirlam | |
Title | President | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 30, 2024 | |
Expiration Date | July 31, 2025 | |
Arrangement Duration | 427 days | |
Aggregate Available | 25,008 | 25,008 |
Chad Allen [Member] | ||
Trading Arrangements, by Individual | ||
Name | Chad Allen | |
Title | CFO | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 31, 2024 | |
Expiration Date | July 31, 2025 | |
Arrangement Duration | 426 days | |
Aggregate Available | 12,000 | 12,000 |
Erik Romslo [Member] | ||
Trading Arrangements, by Individual | ||
Name | Erik Romslo | |
Title | CLO | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 20, 2024 | |
Expiration Date | June 30, 2025 | |
Arrangement Duration | 406 days | |
Aggregate Available | 15,000 | 15,000 |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial information included herein is unaudited. The balance sheet as of December 31, 2023 has been derived from the Company’s audited financial statements for the year ended December 31, 2023. However, such information includes all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. The results of operations for interim periods are not necessarily indicative of the results to be expected for an entire year. |
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 unaudited condensed financial statements. |
Adopted and Recently Issued 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 November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires the Company to expand the breadth and frequency of segment disclosures to include additional information about significant segment expenses, the chief operating decision maker (CODM) and other items, and also require the annual disclosures on an interim basis. This guidance is effective for annual periods beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact the new standard will have on its financial statements and related disclosure. |
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 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 contract 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 three and six months ended June 30, 2024 and 2023, 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. The Company faces concentration risk due to the fact that substantially all of its oil and natural gas revenue is sourced from a limited number of geographic areas of operations. As a result, the Company is disproportionately exposed to risks that affect one or more of those areas in the Williston Basin (North Dakota and Montana), the Permian Basin (New Mexico and Texas), and the Appalachian Basin (Ohio and Pennsylvania). 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 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. |
Net Income Per Common Share | Net Income 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 Convertible Notes (see Note 4). 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. |
Fair Value | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets 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 10). 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 condensed balance sheet. The current derivative asset and liability amounts represent the fair values expected to be settled in the subsequent twelve months. |
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 9). 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 condensed 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. |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the disaggregation of the Company’s oil revenues and natural gas and NGL revenues by basin for the three and six months ended June 30, 2024 and 2023. Three Months Ended Three Months Ended (In thousands) Williston Permian Appalachian Total Williston Permian Appalachian Total Oil Revenues $ 228,692 $ 259,800 $ 198 $ 488,690 $ 221,790 $ 132,045 $ — $ 353,834 Natural Gas and NGL Revenues 35,239 27,408 9,688 72,335 32,953 23,363 6,341 62,657 Other — 3,169 — 3,169 — 2,294 — 2,294 Total $ 263,931 $ 290,377 $ 9,886 $ 564,194 $ 254,743 $ 157,702 $ 6,341 $ 418,785 Six Months Ended Six Months Ended (In thousands) Williston Permian Appalachian Total Williston Permian Appalachian Total Oil Revenues $ 450,067 $ 503,980 $ 323 $ 954,369 $ 434,513 $ 274,700 $ — $ 709,213 Natural Gas and NGL Revenues 60,282 56,779 21,636 138,697 65,376 46,467 21,670 133,513 Other — 6,006 — 6,006 — 4,619 — 4,619 Total $ 510,349 $ 566,765 $ 21,959 $ 1,099,073 $ 499,889 $ 325,785 $ 21,670 $ 847,343 |
Schedule of Reconciliation of Denominators Used to Calculate Basic and Diluted EPS | The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three and six months ended June 30, 2024 and 2023 are as follows: Three Months Ended Six Months Ended (In thousands, except share and per share data) 2024 2023 2024 2023 Net Income $ 138,556 $ 167,815 $ 150,163 $ 508,006 Weighted Average Common Shares Outstanding: Weighted Average Common Shares Outstanding – Basic 100,266,462 88,800,994 100,354,467 86,869,094 Plus: Dilutive Effect of Restricted Stock and Common Stock Warrants 980,385 307,525 1,087,022 399,497 Plus: Dilutive Effect of Convertible Notes 738,227 — 369,114 — Weighted Average Common Shares Outstanding – Diluted 101,985,074 89,108,519 101,810,603 87,268,591 Net Income per Common Share: Basic $ 1.38 $ 1.89 $ 1.50 $ 5.85 Diluted $ 1.36 $ 1.88 $ 1.47 $ 5.82 Shares Excluded from EPS Due to Anti-Dilutive Effect: Restricted Stock — 1,324 — 1,934 |
Schedule of Supplemental Cash Flow Information | The following reflects the Company’s supplemental cash flow information: Six Months Ended (In thousands) 2024 2023 Supplemental Cash Items: Cash Paid During the Period for Interest, Net of Amount Capitalized $ 71,553 $ 59,311 Cash Paid During the Period for Income Taxes 296 891 Non-cash Investing Activities: Capital Expenditures on Oil and Natural Gas Properties Included in Accounts Payable and Accrued Liabilities 262,988 242,593 Capitalized Asset Retirement Obligations 4,074 2,367 Compensation Capitalized on Oil and Gas Properties 52 278 Issuance of Common Stock - Acquisition of Oil and Natural Gas Properties 3,737 — Non-cash Financing Activities: Issuance of Common Stock in Exchange for Warrants 23,338 13,328 Common Stock Dividends Declared, But Not Paid 40,064 34,512 Repurchases of Common Stock - Excise Tax 548 — |
CRUDE OIL AND NATURAL GAS PRO_2
CRUDE OIL AND NATURAL GAS PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Oil and Gas Disclosure [Abstract] | |
Schedule of Fair Values of the Assets and Liabilities as of the Date of Acquisition | 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 $ 151,912 Total assets acquired 151,912 Asset retirement obligations (380) Net assets acquired $ 151,531 Fair value of consideration paid for net assets: Cash consideration $ 147,794 Non-cash consideration 3,737 Total fair value of consideration transferred $ 151,531 (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 320,395 Total assets acquired 320,395 Asset retirement obligations (451) Net assets acquired $ 319,944 Fair value of consideration paid for net assets: Cash consideration $ 319,944 Total fair value of consideration transferred $ 319,944 (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 164,925 Unproved oil and natural gas properties 3,892 Total assets acquired 168,817 Asset retirement obligations (889) Net assets acquired $ 167,928 Fair value of consideration paid for net assets: Cash consideration $ 167,928 Total fair value of consideration transferred $ 167,928 (In thousands) Fair value of net assets: Proved oil and natural gas properties $ 474,417 Total assets acquired 474,417 Asset retirement obligations (813) Accrued Liabilities (5,168) Net assets acquired $ 468,436 Fair value of consideration paid for net assets: Cash consideration $ 468,436 Total fair value of consideration transferred $ 468,436 |
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, 2023, or that would be attained in the future. Six Months Ended Three Months Ended Six Months Ended (In thousands) June 30, 2024 June 30, 2023 June 30, 2023 Total Revenues $ 960,063 $ 636,733 $ 1,350,237 Net Income (Loss) 152,086 295,930 711,735 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The Company’s long-term debt consists of the following: June 30, 2024 (In thousands) Principal Balance Unamortized Premium/(Discount) Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 198,000 $ — $ — $ 198,000 Senior Notes due 2028 705,108 7,366 (8,237) 704,237 Convertible Notes due 2029 500,000 — (13,002) 486,998 Senior Notes due 2031 500,000 (6,159) (8,167) 485,675 Total $ 1,903,108 $ 1,207 $ (29,406) $ 1,874,909 December 31, 2023 Principal Balance Unamortized Premium/(Discount) Debt Issuance Costs, Net Long-term Debt, Net Revolving Credit Facility (1) $ 161,000 $ — $ — $ 161,000 Senior Notes due 2028 705,108 8,376 (9,366) 704,117 Convertible Notes due 2029 500,000 — (14,214) 485,786 Senior Notes due 2031 500,000 (6,600) (8,749) 484,651 Total $ 1,866,108 $ 1,776 $ (32,330) $ 1,835,554 ________________ (1) Debt issuance costs related to the Company’s Revolving Credit Facility of $10.8 million and $10.6 million as of June 30, 2024 and December 31, 2023, are recorded in “Other Noncurrent Assets, Net” in the balance sheets. |
STOCK-BASED COMPENSATION AND _2
STOCK-BASED COMPENSATION AND WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Outstanding RSAs and Related Activity | The following table reflects the outstanding service-based RSAs and activity related thereto for the six months ended June 30, 2024: Service-based Awards Number of Shares Weighted-average Grant Date Fair Value Outstanding at December 31, 2023 497,722 $ 27.45 Shares granted 163,780 35.82 Shares forfeited (424) 35.41 Shares vested (180,387) 25.88 Outstanding at June 30, 2024 480,691 $ 35.41 The following table reflects the outstanding 2023 TSR Awards and activity related thereto for the six months ended June 30, 2024: 2023 TSR Awards Number of Units Weighted-average Grant Date Fair Value Outstanding at December 31, 2023 83,710 $ 44.49 Units granted — — Units forfeited — — Units vested — — Outstanding at June 30, 2024 83,710 $ 44.49 |
Schedule of Performance Shares Valuation Assumptions | The assumptions used for the Monte Carlo model were as follows: 2022 2023 TSR Awards TSR Awards SARs Awards Risk-free interest rate 1.69 % 4.23 % 3.92 % Dividend yield 2.40 % — % 4.30 % Expected volatility 56.94 % 56.40 % 72.30 % Company’s closing stock price on grant date $ 24.98 $ 37.07 $ 37.07 |
Schedule of Warrant Activity | The following table reflects the outstanding warrants and activity related thereto for the six months ended June 30, 2024: Warrants Number of Warrants Weighted-average Exercise Price Outstanding at December 31, 2023 1,223,963 $ 26.33 Issued — — Anti-Dilution Adjustments for Common Stock Dividends — — Exercised — — Cancelled (1,223,963) 26.33 Expired — — Outstanding at June 30, 2024 — $ — |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023: Fair Value Measurements at June 30, 2024 Using (In thousands) Quoted Prices In Active Markets for Identical Assets (Liabilities) Significant Other Observable Inputs Significant Unobservable Inputs Commodity Derivatives – Current Assets $ — $ 19,569 $ — Commodity Derivatives – Noncurrent Assets — 4,107 — Commodity Derivatives – Current Liabilities — (70,726) — Commodity Derivatives – Noncurrent Liabilities — (159,091) — Total $ — $ (206,141) $ — Fair Value Measurements at December 31, 2023 Using (In thousands) Quoted Prices In Active Markets for Identical Assets (Liabilities) Significant Other Observable Inputs Significant Unobservable Inputs Commodity Derivatives – Current Assets $ — $ 75,733 $ — Commodity Derivatives – Noncurrent Assets — 10,725 — Commodity Derivatives – Current Liabilities — (16,797) — Commodity Derivatives – Noncurrent Liabilities — (105,831) — Total $ — $ (36,169) $ — |
DERIVATIVE INSTRUMENTS AND PR_2
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 condensed financial statements: Three Months Ended Six Months Ended (In thousands) 2024 2023 2024 2023 Cash Received on Settled Derivatives $ 8,896 $ 27,265 $ 28,012 $ 40,935 Non-Cash Mark-to-Market Gain (Loss) on Derivatives (12,324) 30,503 (169,972) 170,490 Gain (Loss) on Commodity Derivatives, Net $ (3,428) $ 57,769 $ (141,959) $ 211,425 |
Schedule of Open Commodity Derivative Positions | The following table summarizes open commodity derivative positions as of June 30, 2024, for commodity derivatives that were entered into through June 30, 2024, for the settlement period presented : 2024 2025 2026 2027 2028 Oil: WTI NYMEX - Swaps: Volume (Bbl) 5,436,205 6,279,687 1,434,557 — — Weighted-Average Price ($/Bbl) $ 74.73 $ 73.95 $ 71.88 $ — $ — WTI NYMEX - Swaptions (1) : Volume (Bbl) 552,000 4,268,075 4,108,995 730,000 640,500 Weighted-Average Price ($/Bbl) $ 78.42 $ 72.99 $ 67.70 $ 75.30 $ 70.00 Argus American Crude WTI Midland to WTI NYMEX - Basis Swaps: Volume (Bbl) 3,131,981 4,319,776 2,595,291 — — Weighted-Average Price ($/Bbl) $ 1.15 $ 1.05 $ 1.10 $ — $ — WTI NYMEX - Call Options (1) : Volume (Bbl) 368,000 4,346,420 4,526,365 3,102,500 366,000 Weighted-Average Price ($/Bbl) $ 85.00 $ 80.36 $ 70.65 $ 82.94 $ 80.00 Brent ICE - Call Options: Volume (Bbl) — — — — 316,590 Weighted-Average Price ($/Bbl) $ — $ — $ — $ — $ 80.00 WTI NYMEX - Collars: Collar Put Volume (Bbl) 3,158,056 2,406,539 1,071,842 — — Collar Call Volume (Bbl) 3,483,805 3,454,962 1,544,057 — — Weighted-average floor price (Bbl) $ 71.13 $ 69.77 $ 68.89 $ — $ — Weighted-average ceiling price (Bbl) $ 80.99 $ 78.66 $ 75.28 $ — $ — Natural Gas: Henry Hub NYMEX - Swaps: Volume (MMBtu) 18,578,366 4,085,000 1,825,000 155,000 — Weighted-Average Price ($/MMBtu) $ 3.49 $ 3.59 $ 3.20 $ 3.20 $ — Henry Hub NYMEX - Swaptions: Volume (MMBtu) — 20,075,000 5,475,000 — — Weighted-Average Price ($/MMBtu) $ — $ 3.89 $ 4.00 $ — $ — Waha Inside FERC to Henry Hub - Basis Swaps: Volume (MMBtu) 9,568,000 18,568,000 14,600,000 3,650,000 — Weighted-Average Differential ($/MMBtu) $ (0.85) $ (0.85) $ (0.78) $ (0.78) $ — NE - TETCO M2 - Basis Swaps: Volume (MMBtu) 7,360,000 3,650,000 1,825,000 — — Weighted-Average Differential ($/MMBtu) $ (0.99) $ (1.01) $ (1.14) $ — $ — Henry Hub NYMEX - Call Options: Volume (MMBtu) 3,428,050 12,207,700 3,239,500 35,523,000 6,700,000 Weighted-Average Price ($/MMBtu) $ 3.82 $ 3.73 $ 6.00 $ 5.97 $ 5.50 Henry Hub NYMEX - Collars: Collar Put Volume (MMBtu) 16,456,586 33,994,006 22,182,303 3,340,000 — Collar Call Volume (MMBtu) 16,456,586 33,994,006 22,182,303 3,340,000 — Weighted-average floor price ($/MMBtu) $ 3.06 $ 3.12 $ 3.09 $ 3.00 $ — Weighted-average ceiling price ($/MMBtu) $ 4.51 $ 4.93 $ 5.04 $ 3.83 $ — ______________ (1) |
Schedule of Classification of Outstanding Financial Instruments | The following table sets forth the amounts, on a gross basis, and classification of the Company’s outstanding derivative financial instruments at June 30, 2024 and December 31, 2023, respectively. Certain amounts may be presented on a net basis in the condensed financial statements when such amounts are with the same counterparty and subject to a master netting arrangement. (In thousands) Type of Commodity Balance Sheet Location June 30, 2024 Estimated Fair Value December 31, 2023 Estimated Fair Value Derivative Assets: Commodity Price Swap Contracts Current Assets $ 16,555 $ 61,323 Commodity Basis Swap Contracts Current Assets 8,171 4,487 Commodity Price Collar Contracts Current Assets 22,782 36,619 Commodity Price Call Option Contracts Current Assets 4,062 17,964 Commodity Price Put Option Contracts Current Assets — 664 Commodity Price Swap Contracts Noncurrent Assets 6,414 16,621 Commodity Basis Swap Contracts Noncurrent Assets 7,893 1,874 Commodity Price Collar Contracts Noncurrent Assets 29,645 26,841 Commodity Price Call Option Contracts Noncurrent Assets 2,330 3,635 Total Derivative Assets $ 97,852 $ 170,029 Derivative Liabilities: Commodity Price Swap Contracts Current Liabilities $ (32,205) $ (8,079) Commodity Basis Swap Contracts Current Liabilities (4,950) (6,796) Commodity Price Swaptions Contracts Current Liabilities (23,000) (1,496) Commodity Price Collar Contracts Current Liabilities (26,003) (14,370) Commodity Price Call Option Contracts Current Liabilities (16,569) (31,380) Commodity Price Swap Contracts Noncurrent Liabilities (5,252) (2,288) Commodity Basis Swap Contracts Noncurrent Liabilities (4,329) (8,922) Commodity Price Collar Contracts Noncurrent Liabilities (37,834) (18,849) Commodity Price Call Option Contracts Noncurrent Liabilities (91,492) (78,123) Commodity Price Swaptions Contracts Noncurrent Liabilities (62,359) (35,896) Total Derivative Liabilities $ (303,993) $ (206,198) Estimated Fair Value at June 30, 2024 (In thousands) Gross Amounts of Gross Amounts Offset Net Amounts of Assets (Liabilities) Presented on the Balance Sheet Offsetting of Derivative Assets: Current Assets $ 51,571 $ (32,002) $ 19,569 Non-Current Assets 46,282 (42,174) 4,107 Total Derivative Assets $ 97,852 $ (74,176) $ 23,676 Offsetting of Derivative Liabilities: Current Liabilities $ (102,727) $ 32,002 $ (70,726) Non-Current Liabilities (201,266) 42,174 (159,091) Total Derivative Liabilities $ (303,993) $ 74,176 $ (229,817) Estimated Fair Value at December 31, 2023 (In thousands) Gross Amounts of Gross Amounts Offset Net Amounts of Assets (Liabilities) Presented on the Balance Sheet Offsetting of Derivative Assets: Current Assets $ 121,057 $ (45,324) $ 75,733 Non-Current Assets 48,971 $ (38,246) 10,725 Total Derivative Assets $ 170,029 $ (83,570) $ 86,459 Offsetting of Derivative Liabilities: Current Liabilities $ (62,120) $ 45,324 $ (16,797) Non-Current Liabilities (144,077) 38,246 (105,831) Total Derivative Liabilities $ (206,198) $ 83,570 $ (122,628) |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 geographicArea revenueSource | Jun. 30, 2023 | Jun. 30, 2024 geographicArea revenueSource | Jun. 30, 2023 | |
Accounting Policies [Line Items] | ||||
Number of revenue sources | revenueSource | 2 | 2 | ||
Number of geographic areas in which entity operates | geographicArea | 3 | 3 | ||
Minimum | ||||
Accounting Policies [Line Items] | ||||
Payment period | 1 month | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Payment period | 3 months | |||
Revenue Benchmark | Operator Concentration Risk | Oil and Gas Sales | Top Four Operators | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 39% | 41% | 34% | 40% |
Revenue Benchmark | Operator Concentration Risk | Oil and Gas Sales | Largest Customer | Minimum | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 10% | 10% | 10% | |
Revenue Benchmark | Operator Concentration Risk | Oil and Gas Sales | Largest Customer | Maximum | ||||
Accounting Policies [Line Items] | ||||
Concentration risk percentage | 15% | 15% | 15% |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Oil and Gas Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 564,194 | $ 418,785 | $ 1,099,073 | $ 847,343 |
Oil Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 488,690 | 353,834 | 954,369 | 709,213 |
Natural Gas and NGL Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 72,335 | 62,657 | 138,697 | 133,513 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,169 | 2,294 | 6,006 | 4,619 |
Williston | Oil and Gas Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 263,931 | 254,743 | 510,349 | 499,889 |
Williston | Oil Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 228,692 | 221,790 | 450,067 | 434,513 |
Williston | Natural Gas and NGL Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 35,239 | 32,953 | 60,282 | 65,376 |
Williston | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Permian | Oil and Gas Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 290,377 | 157,702 | 566,765 | 325,785 |
Permian | Oil Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 259,800 | 132,045 | 503,980 | 274,700 |
Permian | Natural Gas and NGL Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27,408 | 23,363 | 56,779 | 46,467 |
Permian | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,169 | 2,294 | 6,006 | 4,619 |
Appalachian | Oil and Gas Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,886 | 6,341 | 21,959 | 21,670 |
Appalachian | Oil Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 198 | 0 | 323 | 0 |
Appalachian | Natural Gas and NGL Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,688 | 6,341 | 21,636 | 21,670 |
Appalachian | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
BASIS OF PRESENTATION AND SIG_6
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Denominators Used to Calculate Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Net Income | $ 138,556 | $ 11,606 | $ 167,815 | $ 340,191 | $ 150,163 | $ 508,006 |
Weighted Average Common Shares Outstanding: | ||||||
Weighted Average Common Shares Outstanding – Basic (in shares) | 100,266,462 | 88,800,994 | 100,354,467 | 86,869,094 | ||
Plus: Dilutive Effect of Restricted Stock and Warrants (in shares) | 980,385 | 307,525 | 1,087,022 | 399,497 | ||
Plus: Dilutive Effect of Convertible Notes | 738,227 | 0 | 369,114 | 0 | ||
Weighted Average Common Shares Outstanding – Diluted (in shares) | 101,985,074 | 89,108,519 | 101,810,603 | 87,268,591 | ||
Net Income per Common Share: | ||||||
Basic (in dollars per share) | $ 1.38 | $ 1.89 | $ 1.50 | $ 5.85 | ||
Diluted (in dollars per share) | $ 1.36 | $ 1.88 | $ 1.47 | $ 5.82 | ||
Restricted Stock | ||||||
Net Income per Common Share: | ||||||
Shares Excluded from EPS Due to Anti-Dilutive Effect (in shares) | 0 | 1,324 | 0 | 1,934 |
BASIS OF PRESENTATION AND SIG_7
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Supplemental Cash Items: | ||
Cash Paid During the Period for Interest, Net of Amount Capitalized | $ 71,553 | $ 59,311 |
Cash Paid During the Period for Income Taxes | 296 | 891 |
Non-cash Investing Activities: | ||
Capital Expenditures on Oil and Natural Gas Properties Included in Accounts Payable and Accrued Liabilities | 262,988 | 242,593 |
Capitalized Asset Retirement Obligations | 4,074 | 2,367 |
Compensation Capitalized on Oil and Gas Properties | 52 | 278 |
Issuance of Common Stock - Acquisition of Oil and Natural Gas Properties | 3,737 | 0 |
Non-cash Financing Activities: | ||
Issuance of Common Stock in Exchange for Warrants | 23,338 | 13,328 |
Common Stock Dividends Declared, But Not Paid | 40,064 | 34,512 |
Repurchases of Common Stock - Excise Tax | $ 548 | $ 0 |
CRUDE OIL AND NATURAL GAS PRO_3
CRUDE OIL AND NATURAL GAS PROPERTIES - Narrative (Details) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||||
Jan. 16, 2024 USD ($) | Aug. 15, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jan. 05, 2023 USD ($) unit Rate | Jan. 31, 2024 USD ($) shares | Oct. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) shares | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Asset Acquisition [Line Items] | |||||||||||||||||
Impairment Expense | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||||
Consideration transferred | $ 36,100,000 | ||||||||||||||||
Cash deposit | $ 17,100,000 | ||||||||||||||||
Anticipated future period over which excluded costs will become subject to depletion | 5 years | ||||||||||||||||
Capitalized costs related to expired leases subject to depletion | 500,000 | $ 2,000,000 | $ 1,600,000 | $ 2,600,000 | |||||||||||||
Forge Energy II Delaware, LLC | Vital Energy, Inc. | |||||||||||||||||
Asset Acquisition [Line Items] | |||||||||||||||||
Ownership percentage of the parent company | 70% | 70% | 70% | ||||||||||||||
Novo Acquisition | Earthstone Energy Holdings, LLC | |||||||||||||||||
Asset Acquisition [Line Items] | |||||||||||||||||
Ownership percentage of the parent company | 66.67% | ||||||||||||||||
Delaware Acquisition | |||||||||||||||||
Asset Acquisition [Line Items] | |||||||||||||||||
Total estimated consideration | $ 151,531,000 | ||||||||||||||||
Acquisition, shares issued (in shares) | shares | 107,657 | 107,657 | |||||||||||||||
Cash consideration | $ 147,800,000 | ||||||||||||||||
Post closing adjustment to consideration transferred | $ (400,000) | ||||||||||||||||
Revenue of acquiree since acquisition date | $ 22,300,000 | ||||||||||||||||
Income from of acquiree since acquisition date | $ 10,000,000 | ||||||||||||||||
Transaction costs | $ 700,000 | ||||||||||||||||
MPDC | |||||||||||||||||
Asset Acquisition [Line Items] | |||||||||||||||||
Total estimated consideration | $ 319,944,000 | ||||||||||||||||
Post closing adjustment to consideration transferred | (8,200,000) | ||||||||||||||||
Revenue of acquiree since acquisition date | $ 157,000,000 | ||||||||||||||||
Income from of acquiree since acquisition date | $ 102,300,000 | ||||||||||||||||
Transaction costs | $ 3,500,000 | ||||||||||||||||
Interests acquired | Rate | 39.958% | ||||||||||||||||
Business acquisition, number of units acquired | unit | 4 | ||||||||||||||||
Forge Acquisition | |||||||||||||||||
Asset Acquisition [Line Items] | |||||||||||||||||
Total estimated consideration | $ 167,928,000 | ||||||||||||||||
Post closing adjustment to consideration transferred | $ 700,000 | ||||||||||||||||
Revenue of acquiree since acquisition date | $ 46,000,000 | ||||||||||||||||
Income from of acquiree since acquisition date | $ 29,300,000 | ||||||||||||||||
Transaction costs | $ 4,600,000 | $ 2,300,000 | $ 2,300,000 | $ 2,300,000 | |||||||||||||
Interests acquired | 30% | 30% | 30% | ||||||||||||||
Novo Acquisition | |||||||||||||||||
Asset Acquisition [Line Items] | |||||||||||||||||
Total estimated consideration | $ 468,436,000 | ||||||||||||||||
Post closing adjustment to consideration transferred | $ (1,200,000) | ||||||||||||||||
Revenue of acquiree since acquisition date | $ 78,500,000 | ||||||||||||||||
Income from of acquiree since acquisition date | $ 40,900,000 | ||||||||||||||||
Interests acquired | 33.33% | ||||||||||||||||
Independent Transactions | |||||||||||||||||
Asset Acquisition [Line Items] | |||||||||||||||||
Consideration transferred | $ 25,200,000 | $ 30,100,000 | $ 277,900,000 |
CRUDE OIL AND NATURAL GAS PRO_4
CRUDE OIL AND NATURAL GAS PROPERTIES - Fair Values of the Net Assets and Liabilities as off the Date of Acquisition (Details) - USD ($) $ in Thousands | Jan. 16, 2024 | Aug. 15, 2023 | Jun. 30, 2023 | Jan. 05, 2023 | Jun. 30, 2024 | Dec. 31, 2023 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Proved oil and natural gas properties | $ 9,111,493 | $ 8,428,518 | ||||
Unproved oil and natural gas properties | $ 37,654 | $ 36,785 | ||||
Delaware Acquisition | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Proved oil and natural gas properties | $ 151,912 | |||||
Total assets acquired | 151,912 | |||||
Asset retirement obligations | (380) | |||||
Net assets acquired | 151,531 | |||||
Asset Acquisition, Consideration Transferred [Abstract] | ||||||
Cash consideration | 147,794 | |||||
Non-cash consideration | 3,737 | |||||
Total fair value of consideration transferred | $ 151,531 | |||||
MPDC | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Proved oil and natural gas properties | $ 320,395 | |||||
Total assets acquired | 320,395 | |||||
Asset retirement obligations | (451) | |||||
Net assets acquired | 319,944 | |||||
Asset Acquisition, Consideration Transferred [Abstract] | ||||||
Cash consideration | 319,944 | |||||
Total fair value of consideration transferred | $ 319,944 | |||||
Forge Acquisition | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Proved oil and natural gas properties | $ 164,925 | |||||
Unproved oil and natural gas properties | 3,892 | |||||
Total assets acquired | 168,817 | |||||
Asset retirement obligations | (889) | |||||
Net assets acquired | 167,928 | |||||
Asset Acquisition, Consideration Transferred [Abstract] | ||||||
Cash consideration | 167,928 | |||||
Total fair value of consideration transferred | $ 167,928 | |||||
Novo Acquisition | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||
Proved oil and natural gas properties | $ 474,417 | |||||
Total assets acquired | 474,417 | |||||
Asset retirement obligations | (813) | |||||
Accrued Liabilities | (5,168) | |||||
Net assets acquired | 468,436 | |||||
Asset Acquisition, Consideration Transferred [Abstract] | ||||||
Cash consideration | 468,436 | |||||
Total fair value of consideration transferred | $ 468,436 |
CRUDE OIL AND NATURAL GAS PRO_5
CRUDE OIL AND NATURAL GAS PROPERTIES - Summary of Unaudited Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Oil and Gas Disclosure [Abstract] | |||
Total Revenues | $ 636,733 | $ 960,063 | $ 1,350,237 |
Net Income (Loss) | $ 295,930 | $ 152,086 | $ 711,735 |
LONG-TERM DEBT - Schedule of Lo
LONG-TERM DEBT - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Principal Balance | $ 1,903,108 | $ 1,866,108 |
Unamortized Premium/(Discount) | 1,207 | 1,776 |
Debt Issuance Costs, Net | (29,406) | (32,330) |
Long-term Debt, Net | 1,874,909 | 1,835,554 |
Senior Notes due 2028 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Principal Balance | 705,108 | 705,108 |
Unamortized Premium/(Discount) | 7,366 | 8,376 |
Debt Issuance Costs, Net | (8,237) | (9,366) |
Long-term Debt, Net | 704,237 | 704,117 |
Convertible Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Principal Balance | 500,000 | 500,000 |
Unamortized Premium/(Discount) | 0 | 0 |
Debt Issuance Costs, Net | (13,002) | (14,214) |
Long-term Debt, Net | 486,998 | 485,786 |
Senior Notes due 2031 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Principal Balance | 500,000 | 500,000 |
Unamortized Premium/(Discount) | (6,159) | (6,600) |
Debt Issuance Costs, Net | (8,167) | (8,749) |
Long-term Debt, Net | 485,675 | 484,651 |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Principal Balance | 198,000 | 161,000 |
Unamortized Premium/(Discount) | 0 | 0 |
Debt Issuance Costs, Net | 0 | 0 |
Long-term Debt, Net | 198,000 | 161,000 |
Revolving Credit Facility | Other Noncurrent Assets, Net | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ (10,800) | $ (10,600) |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) | 1 Months Ended | 6 Months Ended | |||||||||||
Jun. 15, 2026 USD ($) | May 15, 2023 USD ($) | Oct. 14, 2022 USD ($) day $ / shares | Oct. 11, 2022 $ / shares | Feb. 18, 2021 USD ($) | Nov. 22, 2019 | Oct. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares | Jun. 07, 2022 | Nov. 15, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Repayments of unsecured debt | $ 0 | $ 18,436,000 | |||||||||||
Consideration transferred | $ 36,100,000 | ||||||||||||
Company's closing stock price on grant date (dollars per share) | $ / shares | $ 37.07 | $ 24.98 | |||||||||||
Premium over last reported sale | 75% | ||||||||||||
Common Stock | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Initial conversion price (in usd per share) | $ / shares | $ 38.01 | $ 37.50 | |||||||||||
Interest Rate Cap | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Company's closing stock price on grant date (dollars per share) | $ / shares | $ 52.17 | $ 51.48 | |||||||||||
Interest Rate Cap | Common Stock | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Offering price (in dollars per share) | $ / shares | $ 29.81 | ||||||||||||
Redemption Period 2 | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Default period | 30 days | ||||||||||||
Unsecured Debt | Redemption Period 2 | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Acceleration threshold amount | $ 35,000,000 | ||||||||||||
Senior Notes due 2028 | Unsecured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 550,000,000 | $ 200,000,000 | |||||||||||
Interest rate percentage | 8.125% | ||||||||||||
Principal repaid | 19,100,000 | ||||||||||||
Repayments of unsecured debt | $ 18,400,000 | ||||||||||||
Default period | 30 days | ||||||||||||
Acceleration threshold amount | $ 35,000,000 | ||||||||||||
Judgment discharge or stay period | 60 days | ||||||||||||
Senior Notes due 2028 | Unsecured Debt | Redemption Period 2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price percentage | 104.063% | ||||||||||||
Senior Notes due 2028 | Unsecured Debt | Redemption Period 3 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price percentage | 102.031% | ||||||||||||
Senior Notes due 2028 | Unsecured Debt | Redemption Period 4 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price percentage | 100% | ||||||||||||
Senior Notes due 2028 | Unsecured Debt | Redemption Period 5 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price percentage | 101% | ||||||||||||
Convertible Notes due 2029 | Unsecured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||||
Interest rate percentage | 3.625% | ||||||||||||
Debt to shares conversion ratio | 0.0263104 | 0.0266642 | |||||||||||
Convertible Notes due 2029 | Convertible Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Judgment discharge or stay period | 60 days | ||||||||||||
Threshold trading days | day | 40 | ||||||||||||
Threshold percentage of stock price trigger | 130% | ||||||||||||
Cure period | 30 days | ||||||||||||
Indebtedness for borrowed money | $ 50,000,000 | ||||||||||||
Amount of minimum unpaid judgements | $ 50,000,000 | ||||||||||||
Percent of 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 Notes | Redemption Period 1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Threshold trading days | day | 20 | ||||||||||||
Threshold consecutive trading days | day | 30 | ||||||||||||
Senior Notes due 2031 | Unsecured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||||
Interest rate percentage | 8.75% | ||||||||||||
Senior Notes due 2031 | Unsecured Debt | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price percentage | 100% | ||||||||||||
Debt redemption price percent of principal amount | 102.188% | ||||||||||||
Senior Notes due 2031 | Unsecured Debt | Redemption Period 1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate percentage | 8.75% | ||||||||||||
Redemption price percentage | 100% | ||||||||||||
Percent of aggregate principal amount | 35% | ||||||||||||
Period of second special interest rate | 180 days | ||||||||||||
Debt instrument redemption notice term | 10 days | ||||||||||||
Debt redemption price percent of principal amount | 108.75% | ||||||||||||
Debt redemption least price percent of principal amount | 65% | ||||||||||||
Senior Notes due 2031 | Unsecured Debt | Redemption Period 2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument redemption notice term | 60 days | ||||||||||||
Senior Notes due 2031 | Unsecured Debt | Redemption Period 2 | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption price percentage | 101% | ||||||||||||
Debt redemption price percent of principal amount | 104.375% | ||||||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum debt to EBITDAX ratio under debt covenant | 3.50 | ||||||||||||
Minimum current ratio under debt covenant | 1 | ||||||||||||
Minimum percent of the fair value of reserves secured by mortgages | 90% | ||||||||||||
Revolving Credit Facility | Federal Funds Effective Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 0.50% | ||||||||||||
Revolving Credit Facility | Base Rate | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.25% | ||||||||||||
Revolving Credit Facility | Base Rate | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 2.25% | ||||||||||||
Revolving Credit Facility | SOFR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1% | ||||||||||||
Revolving Credit Facility | SOFR | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 2.25% | ||||||||||||
Revolving Credit Facility | SOFR | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 3.25% | ||||||||||||
Revolving Credit Facility | Third Amended and Restated Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowing base | $ 1,800,000,000 | ||||||||||||
Elected commitment amount | 1,500,000,000 | ||||||||||||
Aggregate value of acquisition of oil and gas properties compared to borrowing base, percent | 5% | ||||||||||||
Term Loan | Third Amended and Restated Credit Agreement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity of term loans | $ 500,000,000 |
COMMON AND PREFERRED STOCK (Det
COMMON AND PREFERRED STOCK (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
May 31, 2024 | Mar. 31, 2024 | Feb. 29, 2024 | Jan. 31, 2024 | Mar. 31, 2023 | Jan. 31, 2022 | Jun. 30, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jul. 31, 2024 | May 23, 2024 | May 22, 2024 | Dec. 31, 2023 | May 31, 2022 | |
Class of Stock [Line Items] | |||||||||||||||
Common stock, shares authorized (in shares) | 270,000,000 | 270,000,000 | 270,000,000 | 135,000,000 | 270,000,000 | ||||||||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||
Common stock, shares outstanding (in shares) | 100,172,478 | 100,172,478 | 100,761,148 | ||||||||||||
Common stock, shares issued (in shares) | 100,172,478 | 100,172,478 | |||||||||||||
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 outstanding (in shares) | 0 | 0 | |||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||||||
Restricted Stock Forfeitures | $ 2,000 | $ 54,000 | |||||||||||||
Common stock, dividends declared (in dollars per share) | $ 0.40 | $ 0.40 | |||||||||||||
Stock repurchase program, amount approved (up to) | $ 150,000,000 | ||||||||||||||
Treasury stock, repurchased during period (in shares) | 1,444,432 | 287,751 | |||||||||||||
Common stock repurchase | $ 55,400,000 | $ 8,000,000 | |||||||||||||
Payments of issuance costs | $ 500,000 | ||||||||||||||
Subsequent Event | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock repurchase program, amount approved (up to) | $ 150,000,000 | ||||||||||||||
Veritas | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Equity offerings, net of issuance costs (in shares) | 656,297 | 403,780 | 656,297 | ||||||||||||
Number of securities called by warrants (in shares) | 824,602 | 824,602 | |||||||||||||
Exercise price of warrants (in dollars per share) | $ 27.4946 | $ 0 | $ 27.4946 | $ 0 | $ 26.33 | ||||||||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 1,939,998 | ||||||||||||||
Delaware Acquisition | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 107,657 | 107,657 | |||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock surrendered by certain employees to cover tax obligations (in shares) | 71,548 | ||||||||||||||
Restricted Stock Forfeitures | $ 5,800,000 |
STOCK-BASED COMPENSATION AND _3
STOCK-BASED COMPENSATION AND WARRANTS - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2024 shares | Dec. 31, 2023 day $ / shares shares | Mar. 31, 2023 $ / shares shares | Jan. 31, 2023 shares | Apr. 30, 2022 USD ($) day | Jan. 31, 2022 $ / shares shares | Jun. 30, 2024 USD ($) day $ / shares shares | Jun. 30, 2023 USD ($) | |
Veritas | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 1,939,998 | |||||||
Business acquisition, share price (in dollars per share) | $ / shares | $ 28.30 | |||||||
Equity offerings, net of issuance costs (in shares) | shares | 656,297 | 403,780 | 656,297 | |||||
Number of securities called by warrants (in shares) | shares | 824,602 | |||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 26.33 | $ 27.4946 | $ 0 | |||||
Veritas | Warrants Cancelled | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of securities called by warrants (in shares) | shares | 1,223,963 | |||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 26.3324 | |||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense | $ 13.5 | |||||||
Unrecognized compensation expense, recognized period | 1 year 5 months 26 days | |||||||
Fair value of vested awards | $ 5.8 | $ 6.2 | ||||||
Compensation expense | $ 3.7 | |||||||
Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | 3 years | ||||||
Total shareholder return, trading days | day | 20 | |||||||
Share-based compensation arrangement by share-based payment award, shares issued in period | shares | 74,220 | |||||||
Shares granted (in shares) | shares | 0 | |||||||
Shares granted (in dollars per share) | $ / shares | $ 0 | |||||||
Performance Shares | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total shareholder return | $ 0 | |||||||
Performance Shares | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total shareholder return | $ 2.4 | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense | $ 2.8 | |||||||
Compensation expense | 0.9 | |||||||
Total shareholder return, trading days | day | 20 | |||||||
Shares granted (in shares) | shares | 83,710 | |||||||
Restricted Stock Units (RSUs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of increase in awards | 0% | |||||||
Shares granted (in dollars per share) | $ / shares | $ 35.73 | |||||||
Restricted Stock Units (RSUs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of increase in awards | 166% | |||||||
Shares granted (in dollars per share) | $ / shares | $ 52.41 | |||||||
SARs Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense | 5.2 | |||||||
Compensation expense | $ 0.7 | |||||||
Total shareholder return, trading days | day | 20 | |||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, granted in period, fair value | $ 6 | |||||||
Employees and Executive Officers | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Employees and Executive Officers | Restricted Stock | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Employees and Executive Officers | Restricted Stock | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Director | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
2018 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for future awards (shares) | shares | 2,841,360 |
STOCK-BASED COMPENSATION AND _4
STOCK-BASED COMPENSATION AND WARRANTS - Summary of Outstanding RSAs and Related Activity (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Service-based Awards | |
Number of Shares | |
Outstanding, beginning (in shares) | shares | 497,722 |
Shares granted (in shares) | shares | 163,780 |
Shares forfeited (in shares) | shares | (424) |
Shares vested (in shares) | shares | (180,387) |
Outstanding, ending (in shares) | shares | 480,691 |
Weighted-average Grant Date Fair Value | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 27.45 |
Shares granted (in dollars per share) | $ / shares | 35.82 |
Shares forfeited (in dollars per share) | $ / shares | 35.41 |
Shares vested (in dollars per share) | $ / shares | 25.88 |
Outstanding, ending (in dollars per share) | $ / shares | $ 35.41 |
Performance Shares | |
Number of Shares | |
Outstanding, beginning (in shares) | shares | 83,710 |
Shares granted (in shares) | shares | 0 |
Shares forfeited (in shares) | shares | 0 |
Shares vested (in shares) | shares | 0 |
Outstanding, ending (in shares) | shares | 83,710 |
Weighted-average Grant Date Fair Value | |
Outstanding, beginning (in dollars per share) | $ / shares | $ 44.49 |
Shares granted (in dollars per share) | $ / shares | 0 |
Shares forfeited (in dollars per share) | $ / shares | 0 |
Shares vested (in dollars per share) | $ / shares | 0 |
Outstanding, ending (in dollars per share) | $ / shares | $ 44.49 |
STOCK-BASED COMPENSATION AND _5
STOCK-BASED COMPENSATION AND WARRANTS - Schedule of Performance Shares Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Company's closing stock price on grant date (dollars per share) | $ 37.07 | $ 24.98 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 4.23% | 1.69% |
Dividend yield | 0% | 2.40% |
Expected volatility | 56.40% | 56.94% |
SARs Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 3.92% | |
Dividend yield | 4.30% | |
Expected volatility | 72.30% |
STOCK-BASED COMPENSATION AND _6
STOCK-BASED COMPENSATION AND WARRANTS - Summary of Warrants Outstanding (Details) - Veritas | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Warrants | |
Balance at beginning of period (in shares) | shares | 1,223,963 |
Issued (in shares) | shares | 0 |
Anti-dilution adjustments for common stock dividends (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Cancelled (in shares) | shares | (1,223,963) |
Expired (in shares) | shares | 0 |
Balance at end of period (in shares) | shares | 0 |
Weighted-average Exercise Price | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 26.33 |
Issued (in dollars per share) | $ / shares | 0 |
Anti-dilution adjustments for common stock dividends (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Cancelled (in dollars per share) | $ / shares | 26.33 |
Expired (in dollars per share) | $ / shares | 0 |
Balance at end of period (in dollars per share) | $ / shares | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 42,746 | $ 39,012 | $ 45,592 | $ 39,703 |
Effective tax rates | 23.60% | 18.90% | 23.30% | 7.20% |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Accounted For At Fair Value On A Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
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) | (206,141) | (36,169) |
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 Asset | 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 Asset | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 19,569 | 75,733 |
Commodity Derivatives | Current Asset | 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 Asset | 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 Asset | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets (liabilities) | 4,107 | 10,725 |
Commodity Derivatives | Noncurrent Asset | 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) | (70,726) | (16,797) |
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) | (159,091) | (105,831) |
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 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended |
Jan. 31, 2022 | Jun. 30, 2024 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset retirement obligations incurred and acquired | $ 3 | |
Veritas | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | 1,939,998 | |
Business acquisition, share price (in dollars per share) | $ 28.30 | |
Senior Notes due 2028 | Estimated Fair Value | Unsecured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | 710.4 | |
Convertible Notes due 2029 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | 581.6 | |
Senior Notes due 2031 | Estimated Fair Value | Unsecured Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of long-term debt | $ 522.5 |
DERIVATIVE INSTRUMENTS AND PR_3
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT - Schedule of Non-cash Gains or Losses on Derivative Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Cash Received on Settled Derivatives | $ 8,896 | $ 27,265 | $ 28,012 | $ 40,935 |
Non-Cash Mark-to-Market Gain (Loss) on Derivatives | (12,324) | 30,503 | (169,972) | 170,490 |
Gain (Loss) on Commodity Derivatives, Net | $ (3,428) | $ 57,769 | $ (141,959) | $ 211,425 |
DERIVATIVE INSTRUMENTS AND PR_4
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT - Summary of Open Commodity Derivative Positions (Details) | Jun. 30, 2024 MMBTU bbl $ / bbl $ / MMBTU |
WTI NYMEX - Swaps | 2024 | |
Derivative [Line Items] | |
Volume | bbl | 5,436,205 |
Weighted average price (in dollars per unit) | 74.73 |
WTI NYMEX - Swaps | 2025 | |
Derivative [Line Items] | |
Volume | bbl | 6,279,687 |
Weighted average price (in dollars per unit) | 73.95 |
WTI NYMEX - Swaps | 2026 | |
Derivative [Line Items] | |
Volume | bbl | 1,434,557 |
Weighted average price (in dollars per unit) | 71.88 |
WTI NYMEX - Swaps | 2027 | |
Derivative [Line Items] | |
Volume | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
WTI NYMEX - Swaptions | 2024 | |
Derivative [Line Items] | |
Volume | bbl | 552,000 |
Weighted average price (in dollars per unit) | 78.42 |
WTI NYMEX - Swaptions | 2025 | |
Derivative [Line Items] | |
Volume | bbl | 4,268,075 |
Weighted average price (in dollars per unit) | 72.99 |
WTI NYMEX - Swaptions | 2026 | |
Derivative [Line Items] | |
Volume | bbl | 4,108,995 |
Weighted average price (in dollars per unit) | 67.70 |
WTI NYMEX - Swaptions | 2027 | |
Derivative [Line Items] | |
Volume | bbl | 730,000 |
Weighted average price (in dollars per unit) | 75.30 |
WTI NYMEX - Swaptions | 2028 | |
Derivative [Line Items] | |
Volume | bbl | 640,500 |
Weighted average price (in dollars per unit) | 70 |
Argus American Crude WTI Midland To WTI NYMEX - Basis Swaps | 2024 | |
Derivative [Line Items] | |
Volume | bbl | 3,131,981 |
Weighted average price (in dollars per unit) | 1.15 |
Argus American Crude WTI Midland To WTI NYMEX - Basis Swaps | 2025 | |
Derivative [Line Items] | |
Volume | bbl | 4,319,776 |
Weighted average price (in dollars per unit) | 1.05 |
Argus American Crude WTI Midland To WTI NYMEX - Basis Swaps | 2026 | |
Derivative [Line Items] | |
Volume | bbl | 2,595,291 |
Weighted average price (in dollars per unit) | 1.10 |
Argus American Crude WTI Midland To WTI NYMEX - Basis Swaps | 2027 | |
Derivative [Line Items] | |
Volume | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
Argus American Crude WTI Midland To WTI NYMEX - Basis Swaps | 2028 | |
Derivative [Line Items] | |
Volume | bbl | 366,000 |
Weighted average price (in dollars per unit) | 80 |
WTI NYMEX - Call Options | 2024 | |
Derivative [Line Items] | |
Volume | bbl | 368,000 |
Weighted average price (in dollars per unit) | 85 |
WTI NYMEX - Call Options | 2025 | |
Derivative [Line Items] | |
Volume | bbl | 4,346,420 |
Weighted average price (in dollars per unit) | 80.36 |
WTI NYMEX - Call Options | 2026 | |
Derivative [Line Items] | |
Volume | bbl | 4,526,365 |
Weighted average price (in dollars per unit) | 70.65 |
WTI NYMEX - Call Options | 2027 | |
Derivative [Line Items] | |
Volume | bbl | 3,102,500 |
Weighted average price (in dollars per unit) | 82.94 |
WTI NYMEX - Call Options | 2028 | |
Derivative [Line Items] | |
Volume | bbl | 316,590 |
Weighted average price (in dollars per unit) | 80 |
Brent ICE - Call Options | 2024 | |
Derivative [Line Items] | |
Volume | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
Brent ICE - Call Options | 2025 | |
Derivative [Line Items] | |
Volume | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
Brent ICE - Call Options | 2026 | |
Derivative [Line Items] | |
Volume | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
Brent ICE - Call Options | 2027 | |
Derivative [Line Items] | |
Volume | bbl | 0 |
Weighted average price (in dollars per unit) | 0 |
WTI NYMEX - Collars | 2024 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 71.13 |
Weighted average ceiling price (in dollars per unit) | 80.99 |
WTI NYMEX - Collars | 2025 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 69.77 |
Weighted average ceiling price (in dollars per unit) | 78.66 |
WTI NYMEX - Collars | 2026 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 68.89 |
Weighted average ceiling price (in dollars per unit) | 75.28 |
WTI NYMEX - Collars | 2027 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 0 |
Weighted average ceiling price (in dollars per unit) | 0 |
WTI NYMEX - Collars | Collar Put Volume | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,158,056 |
WTI NYMEX - Collars | Collar Put Volume | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 2,406,539 |
WTI NYMEX - Collars | Collar Put Volume | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 1,071,842 |
WTI NYMEX - Collars | Collar Put Volume | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 0 |
WTI NYMEX - Collars | Collar Call Volume | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,483,805 |
WTI NYMEX - Collars | Collar Call Volume | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,454,962 |
WTI NYMEX - Collars | Collar Call Volume | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 1,544,057 |
WTI NYMEX - Collars | Collar Call Volume | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 0 |
Henry Hub NYMEX - Swaps | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 18,578,366 |
Weighted average price (in dollars per unit) | $ / MMBTU | 3.49 |
Henry Hub NYMEX - Swaps | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 4,085,000 |
Weighted average price (in dollars per unit) | $ / MMBTU | 3.59 |
Henry Hub NYMEX - Swaps | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 1,825,000 |
Weighted average price (in dollars per unit) | $ / MMBTU | 3.20 |
Henry Hub NYMEX - Swaps | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 155,000 |
Weighted average price (in dollars per unit) | $ / MMBTU | 3.20 |
Henry Hub NYMEX - Swaptions | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 0 |
Weighted average differential (in dollars per unit) | 0 |
Henry Hub NYMEX - Swaptions | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 20,075,000 |
Weighted average differential (in dollars per unit) | 3.89 |
Henry Hub NYMEX - Swaptions | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 5,475,000 |
Weighted average differential (in dollars per unit) | 4 |
Henry Hub NYMEX - Swaptions | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 0 |
Weighted average differential (in dollars per unit) | 0 |
Waha Inside FERC to Henry Hub - Basis Swaps | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 9,568,000 |
Weighted average differential (in dollars per unit) | (0.85) |
Waha Inside FERC to Henry Hub - Basis Swaps | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 18,568,000 |
Weighted average differential (in dollars per unit) | (0.85) |
Waha Inside FERC to Henry Hub - Basis Swaps | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 14,600,000 |
Weighted average differential (in dollars per unit) | (0.78) |
Waha Inside FERC to Henry Hub - Basis Swaps | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,650,000 |
Weighted average differential (in dollars per unit) | (0.78) |
NE - TETCO M2 - Basis Swaps | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 7,360,000 |
Weighted average differential (in dollars per unit) | $ / MMBTU | (0.99) |
NE - TETCO M2 - Basis Swaps | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,650,000 |
Weighted average differential (in dollars per unit) | $ / MMBTU | (1.01) |
NE - TETCO M2 - Basis Swaps | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 1,825,000 |
Weighted average differential (in dollars per unit) | $ / MMBTU | (1.14) |
NE - TETCO M2 - Basis Swaps | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 0 |
Weighted average differential (in dollars per unit) | $ / MMBTU | 0 |
Henry Hub NYMEX - Call Options | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,428,050 |
Weighted average price (in dollars per unit) | 3.82 |
Henry Hub NYMEX - Call Options | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 12,207,700 |
Weighted average price (in dollars per unit) | 3.73 |
Henry Hub NYMEX - Call Options | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,239,500 |
Weighted average price (in dollars per unit) | 6 |
Henry Hub NYMEX - Call Options | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 35,523,000 |
Weighted average price (in dollars per unit) | 5.97 |
Henry Hub NYMEX - Call Options | 2028 | |
Derivative [Line Items] | |
Volume | bbl | 6,700,000 |
Weighted average price (in dollars per unit) | 5.50 |
Henry Hub NYMEX - Collars | 2024 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 3.06 |
Weighted average ceiling price (in dollars per unit) | 4.51 |
Henry Hub NYMEX - Collars | 2025 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 3.12 |
Weighted average ceiling price (in dollars per unit) | 4.93 |
Henry Hub NYMEX - Collars | 2026 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 3.09 |
Weighted average ceiling price (in dollars per unit) | 5.04 |
Henry Hub NYMEX - Collars | 2027 | |
Derivative [Line Items] | |
Weighted average floor price (in dollars per unit) | 3 |
Weighted average ceiling price (in dollars per unit) | 3.83 |
Henry Hub NYMEX - Collars | Collar Put Volume | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 16,456,586 |
Henry Hub NYMEX - Collars | Collar Put Volume | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 33,994,006 |
Henry Hub NYMEX - Collars | Collar Put Volume | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 22,182,303 |
Henry Hub NYMEX - Collars | Collar Put Volume | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,340,000 |
Henry Hub NYMEX - Collars | Collar Call Volume | 2024 | |
Derivative [Line Items] | |
Volume | MMBTU | 16,456,586 |
Henry Hub NYMEX - Collars | Collar Call Volume | 2025 | |
Derivative [Line Items] | |
Volume | MMBTU | 33,994,006 |
Henry Hub NYMEX - Collars | Collar Call Volume | 2026 | |
Derivative [Line Items] | |
Volume | MMBTU | 22,182,303 |
Henry Hub NYMEX - Collars | Collar Call Volume | 2027 | |
Derivative [Line Items] | |
Volume | MMBTU | 3,340,000 |
DERIVATIVE INSTRUMENTS AND PR_5
DERIVATIVE INSTRUMENTS AND PRICE RISK MANAGEMENT - Summary of Classification of Outstanding Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | $ 97,852 | $ 170,029 |
Gross amounts offset in the balance sheet, offsetting of derivative assets | (74,176) | (83,570) |
Net amounts of assets presented in the balance sheet, offsetting of derivative assets | 23,676 | 86,459 |
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (303,993) | (206,198) |
Gross Amounts Offset in the Balance Sheet, Offsetting of Derivative Liabilities | 74,176 | 83,570 |
Net Amounts of Assets (Liabilities) Presented in the Balance Sheet, Offsetting of Derivative Liabilities | (229,817) | (122,628) |
Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 51,571 | 121,057 |
Gross amounts offset in the balance sheet, offsetting of derivative assets | (32,002) | (45,324) |
Net amounts of assets presented in the balance sheet, offsetting of derivative assets | 19,569 | 75,733 |
Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 46,282 | 48,971 |
Gross amounts offset in the balance sheet, offsetting of derivative assets | (42,174) | (38,246) |
Net amounts of assets presented in the balance sheet, offsetting of derivative assets | 4,107 | 10,725 |
Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (102,727) | (62,120) |
Gross Amounts Offset in the Balance Sheet, Offsetting of Derivative Liabilities | 32,002 | 45,324 |
Net Amounts of Assets (Liabilities) Presented in the Balance Sheet, Offsetting of Derivative Liabilities | (70,726) | (16,797) |
Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (201,266) | (144,077) |
Gross Amounts Offset in the Balance Sheet, Offsetting of Derivative Liabilities | 42,174 | 38,246 |
Net Amounts of Assets (Liabilities) Presented in the Balance Sheet, Offsetting of Derivative Liabilities | (159,091) | (105,831) |
Commodity Price Swap Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 16,555 | 61,323 |
Commodity Price Swap Contracts | Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 6,414 | 16,621 |
Commodity Price Swap Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (32,205) | (8,079) |
Commodity Price Swap Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (5,252) | (2,288) |
Commodity Basis Swap Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 8,171 | 4,487 |
Commodity Basis Swap Contracts | Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 7,893 | 1,874 |
Commodity Basis Swap Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (4,950) | (6,796) |
Commodity Basis Swap Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (4,329) | (8,922) |
Commodity Price Swaptions Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (23,000) | (1,496) |
Commodity Price Swaptions Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (62,359) | (35,896) |
Commodity Price Collar Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 22,782 | 36,619 |
Commodity Price Collar Contracts | Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 29,645 | 26,841 |
Commodity Price Collar Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (26,003) | (14,370) |
Commodity Price Collar Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (37,834) | (18,849) |
Commodity Price Call Option Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 4,062 | 17,964 |
Commodity Price Call Option Contracts | Noncurrent Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | 2,330 | 3,635 |
Commodity Price Call Option Contracts | Current Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (16,569) | (31,380) |
Commodity Price Call Option Contracts | Noncurrent Liabilities | ||
Offsetting of Derivative Liabilities: | ||
Gross Amounts of Recognized Assets (Liabilities), Offsetting of Derivative Liabilities | (91,492) | (78,123) |
Commodity Price Put Option Contracts | Current Assets | ||
Offsetting of Derivative Assets: | ||
Gross amounts of recognized assets, offsetting of derivative assets | $ 0 | $ 664 |