Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2020 |
Document Transition Report | false |
Entity File Number | 001-34778 |
Entity Registrant Name | QEP RESOURCES, INC. |
Entity Incorporation, State or Country Code | DE |
Entity Central Index Key | 0001108827 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Tax Identification Number | 87-0287750 |
Entity Address, Address Line One | 1050 17th Street, Suite 800 |
Entity Address, City or Town | Denver |
Entity Address, State or Province | CO |
Entity Address, Postal Zip Code | 80265 |
City Area Code | 303 |
Local Phone Number | 672-6900 |
Title of 12(b) Security | Common stock, $0.01 par value |
Trading Symbol | QEP |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 242,221,121 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues [Abstract] | ||||
Revenues | $ 177.8 | $ 307.5 | $ 524.2 | $ 884.3 |
Operating Expenses [Abstract] | ||||
General and administrative | 20.9 | 29.6 | 63.1 | 124.4 |
Production and property taxes | 14 | 20 | 42.3 | 67.6 |
Depreciation, depletion and amortization | 133 | 144.2 | 424.6 | 395.5 |
Impairment | 0 | 0 | 0 | 5 |
Total Operating Expenses | 220 | 253.3 | 689.8 | 778.2 |
Net gain (loss) from asset sales, inclusive of restructuring costs | 0.1 | (2.1) | 3.8 | 2.5 |
OPERATING INCOME (LOSS) | (42.1) | 52.1 | (161.8) | 108.6 |
Realized and unrealized gains (losses) on derivative contracts | (34.2) | 87.4 | 317 | (55.8) |
Interest and other income (expense) | 7.7 | 0.9 | 7.7 | 4.6 |
Gain from early extinguishment of debt | (7.4) | 0 | 18.2 | 0 |
Interest expense | (28.4) | (32.8) | (89.8) | (100) |
INCOME (LOSS) BEFORE INCOME TAXES | (104.4) | 107.6 | 91.3 | (42.6) |
Income tax (provision) benefit | 55.2 | (26.6) | 42.5 | 55.7 |
Net income (loss) | $ (49.2) | $ 81 | $ 133.8 | $ 13.1 |
Earnings Per Share [Abstract] | ||||
Basic | $ (0.20) | $ 0.34 | $ 0.55 | $ 0.06 |
Diluted | $ (0.20) | $ 0.34 | $ 0.55 | $ 0.06 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Used in basic calculation | 242.3 | 237.9 | 241.2 | 237.7 |
Used in diluted calculation | 242.3 | 237.9 | 241.2 | 237.7 |
Oil and Gas, Exploration and Production [Member] | ||||
Revenues [Abstract] | ||||
Revenues | $ 175.8 | $ 305.6 | $ 515.9 | $ 875.8 |
Product and Service, Other [Member] | ||||
Revenues [Abstract] | ||||
Revenues | 1.4 | 1.8 | 1.6 | 7.1 |
Oil and Gas, Purchased [Member] | ||||
Revenues [Abstract] | ||||
Revenues | 0.6 | 0.1 | 6.7 | 1.4 |
Operating Expenses [Abstract] | ||||
Operating Costs and Expenses | 0.8 | 0.1 | 8.2 | 1.5 |
Lease Operating Expense [Member] | ||||
Operating Expenses [Abstract] | ||||
Operating Costs and Expenses | 35.5 | 38.3 | 104.5 | 135.5 |
Natural Gas, Gathering, Transportation, Marketing and Processing [Member] | ||||
Operating Expenses [Abstract] | ||||
Operating Costs and Expenses | 12.4 | 18 | 38.2 | 38.8 |
Gathering and other expense [Member] | ||||
Operating Expenses [Abstract] | ||||
Operating Costs and Expenses | $ 3.4 | $ 3.1 | $ 8.9 | $ 9.9 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (49.2) | $ 81 | $ 133.8 | $ 13.1 | |
Pension and other postretirement plans adjustments: | |||||
Amortization of prior service costs | 0 | 0.1 | 0 | 0.2 | |
Amortization of actuarial losses(1) | [1] | 0.1 | 0.5 | 0.1 | |
Net curtailment (1) | [2] | 0 | (0.3) | ||
Other comprehensive income (loss) | 0.1 | 0.1 | 0.5 | 0 | |
Comprehensive income (loss) | $ (49.1) | $ 81.1 | $ 134.3 | $ 13.1 | |
[1] | Presented net of income tax benefit of $0.1 million and $0.2 million for the three and nine months ended September 30, 2020, respectively. | ||||
[2] | Presented net of income tax benefit of $0.1 million for the nine months ended September 30, 2019. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | $ (0.1) | $ (0.2) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Adjustment for Settlement or Curtailment Gain (Loss), Tax | $ 0 | $ 0 | $ (0.1) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 9.5 | $ 166.3 |
Accounts receivable, net | 84.1 | 108.4 |
Income tax receivable | 50.5 | 37.4 |
Fair value of derivative contracts | 77.5 | 1.5 |
Prepaid expenses and other current assets | 8.5 | 11.6 |
Total Current Assets | 230.1 | 325.2 |
Property, Plant and Equipment (successful efforts method for oil and gas properties) | ||
Proved properties | 9,812.9 | 9,574.9 |
Unproved properties | 544.2 | 599.1 |
Gathering and other | 165.5 | 164.2 |
Materials and supplies | 16.9 | 15.6 |
Total Property, Plant and Equipment | 10,539.5 | 10,353.8 |
Less Accumulated Depreciation, Depletion and Amortization | ||
Exploration and production | 5,603.6 | 5,250.5 |
Gathering and other | 68.5 | 61 |
Total Accumulated Depreciation, Depletion and Amortization | 5,672.1 | 5,311.5 |
Net Property, Plant and Equipment | 4,867.4 | 5,042.3 |
Fair value of derivative contracts | 0.8 | 0.2 |
Operating lease right-of-use assets, net | 52.7 | 56.8 |
Other noncurrent assets | 85.7 | 53.3 |
TOTAL ASSETS | 5,236.7 | 5,477.8 |
Current Liabilities | ||
Checks outstanding in excess of cash balances | 0 | 18.3 |
Accounts payable and accrued expenses | 164.5 | 227.2 |
Production and property taxes | 10.7 | 18.9 |
Interest payable | 29.1 | 31 |
Fair value of derivative contracts | 4.7 | 18.7 |
Current operating lease lease liabilities | 22.6 | 18 |
Asset retirement obligations | 7.1 | 6 |
Total Current Liabilities | 238.7 | 338.1 |
Long-term debt | 1,590.4 | 2,015.6 |
Deferred income taxes | 440 | 274.5 |
Asset retirement obligations | 94.8 | 94.9 |
Fair value of derivative contracts | 6.7 | 0.5 |
Operating lease liabilities | 35.4 | 44.8 |
Other long-term liabilities | 32.1 | 48.8 |
Commitments and contingencies (Note 11) | ||
EQUITY | ||
Common stock – par value $0.01 per share; 500.0 million shares authorized; 247.2 million and 242.1 million shares issued, respectively | 2.5 | 2.4 |
Treasury stock – 5.0 million and 4.4 million shares, respectively | (56.7) | (55.4) |
Additional paid-in capital | 1,466.2 | 1,456.5 |
Retained earnings | 1,398.6 | 1,269.6 |
Accumulated other comprehensive income (loss) | (12) | (12.5) |
Total Common Shareholders' Equity | 2,798.6 | 2,660.6 |
TOTAL LIABILITIES AND EQUITY | $ 5,236.7 | $ 5,477.8 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500 | 500 |
Common stock, shares issued (in shares) | 247.2 | 242.1 |
Treasury stock (in shares) | 5 | 4.4 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) Statement - USD ($) shares in Millions, $ in Millions | Total | Common Stock, Value [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Other Comprehensive Income (Loss) [Member] |
Stockholders' Equity | $ 2,750.9 | $ 2.4 | $ (45.6) | $ 1,431.9 | $ 1,376.5 | $ (14.3) |
Common Stock, Shares | 239.8 | |||||
Treasury Stock, Shares | (3.1) | |||||
Stockholders' Equity | 2,770 | $ 2.4 | $ (54.8) | 1,451.9 | 1,384.8 | (14.3) |
Net income (loss) | 13.1 | 13.1 | ||||
Cash dividends paid, $0.02 per share | (4.8) | (4.8) | ||||
Share-based compensation, Shares | 2.3 | |||||
Share-based compensation | 10.8 | $ 0 | $ (9.2) | 20 | ||
Shares Paid for Tax Withholding for Share Based Compensation | (1.2) | |||||
Change in pension and postretirement liability, net of tax | 0 | 0 | ||||
Stockholders' Equity at Sep. 30, 2019 | 2,770 | 2.4 | $ (54.8) | 1,451.9 | 1,384.8 | (14.3) |
Stockholders' Equity | 2,689.3 | $ 2.4 | $ (53.6) | 1,446.3 | 1,308.6 | (14.4) |
Common Stock, Shares | 242 | |||||
Treasury Stock, Shares | (4.1) | |||||
Stockholders' Equity | 2,770 | $ 2.4 | $ (54.8) | 1,451.9 | 1,384.8 | (14.3) |
Net income (loss) | 81 | 81 | ||||
Cash dividends paid, $0.02 per share | (4.8) | (4.8) | ||||
Share-based compensation, Shares | 0.1 | |||||
Share-based compensation | 4.4 | $ (1.2) | 5.6 | |||
Shares Paid for Tax Withholding for Share Based Compensation | (0.2) | |||||
Change in pension and postretirement liability, net of tax | 0.1 | 0.1 | ||||
Stockholders' Equity at Sep. 30, 2019 | 2,770 | $ 2.4 | $ (54.8) | 1,451.9 | 1,384.8 | (14.3) |
Stockholders' Equity | 2,770 | $ 2.4 | $ (54.8) | 1,451.9 | 1,384.8 | (14.3) |
Common Stock, Shares | 242.1 | |||||
Treasury Stock, Shares | (4.3) | |||||
Stockholders' Equity | $ 2,660.6 | $ 2.4 | $ (55.4) | 1,456.5 | 1,269.6 | (12.5) |
Common Stock, Shares | 242.1 | |||||
Treasury Stock, Shares | (4.4) | (4.4) | ||||
Stockholders' Equity | $ 2,798.6 | $ 2.5 | $ (56.7) | 1,466.2 | 1,398.6 | (12) |
Net income (loss) | 133.8 | 133.8 | ||||
Cash dividends paid, $0.02 per share | (4.8) | (4.8) | ||||
Share-based compensation, Shares | 5.1 | |||||
Share-based compensation | 8.5 | $ 0.1 | $ (1.3) | 9.7 | 0 | 0 |
Shares Paid for Tax Withholding for Share Based Compensation | (0.6) | |||||
Change in pension and postretirement liability, net of tax | 0.5 | 0.5 | ||||
Stockholders' Equity at Sep. 30, 2020 | 2,798.6 | 2.5 | $ (56.7) | 1,466.2 | 1,398.6 | (12) |
Stockholders' Equity | 2,844.9 | $ 2.5 | $ (56.6) | 1,463.3 | 1,447.8 | (12.1) |
Common Stock, Shares | 247.2 | |||||
Treasury Stock, Shares | (4.9) | |||||
Stockholders' Equity | 2,798.6 | $ 2.5 | $ (56.7) | 1,466.2 | 1,398.6 | (12) |
Net income (loss) | (49.2) | (49.2) | ||||
Share-based compensation, Shares | 0 | |||||
Share-based compensation | 2.8 | $ (0.1) | 2.9 | |||
Shares Paid for Tax Withholding for Share Based Compensation | (0.1) | |||||
Change in pension and postretirement liability, net of tax | 0.1 | 0.1 | ||||
Stockholders' Equity at Sep. 30, 2020 | 2,798.6 | $ 2.5 | $ (56.7) | 1,466.2 | 1,398.6 | (12) |
Stockholders' Equity | $ 2,798.6 | $ 2.5 | $ (56.7) | $ 1,466.2 | $ 1,398.6 | $ (12) |
Common Stock, Shares | 247.2 | |||||
Treasury Stock, Shares | (5) | (5) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 133.8 | $ 13.1 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation, depletion and amortization | 424.6 | 395.5 |
Deferred income taxes (benefit) | 165.3 | (61.2) |
Impairment | 0 | 5 |
Non-cash share-based compensation | 9.3 | 16.2 |
Non-cash (gain) loss from warehouse inventory | 0.7 | 0 |
Amortization of debt issuance costs and discounts | 3.7 | 4 |
Net (gain) loss from asset sales, inclusive of restructuring costs | (3.8) | (2.5) |
Gain from early extinguishment of debt | (18.2) | 0 |
Unrealized (gains) losses on marketable securities | (1.1) | (2.8) |
Unrealized (gains) losses on derivative contracts | (84.4) | 29 |
Changes in operating assets and liabilities | (75.9) | (54.3) |
Net Cash Provided by (Used in) Operating Activities | 554 | 342 |
INVESTING ACTIVITIES | ||
Property acquisitions | (4.1) | (3.6) |
Expenditures for property, plant and equipment, including exploratory well expense | (284.5) | (465.2) |
Proceeds from disposition of assets | 13.4 | 676.5 |
Net Cash Provided by (Used in) Investing Activities | (275.2) | 207.7 |
FINANCING ACTIVITIES | ||
Checks outstanding in excess of cash balances | (18.3) | (13.9) |
Long-term debt issuance costs paid | (0.5) | 0 |
Repurchases of senior notes | (410.3) | 0 |
Proceeds from credit facility | 21.1 | 56 |
Repayments of credit facility | (21.1) | (486) |
Treasury stock repurchases | (0.8) | (7) |
Dividends paid | (4.8) | (4.8) |
Net Cash Provided by (Used in) Financing Activities | (434.7) | (455.7) |
Change in cash, cash equivalents and restricted cash(1) | (155.9) | 94 |
Beginning cash, cash equivalents and restricted cash(1) | 196.4 | 28.1 |
Ending cash, cash equivalents and restricted cash(1) | 40.5 | 122.1 |
Supplemental Disclosures: | ||
Cash paid for interest, net of capitalized interest | 88.2 | 94.1 |
Cash paid (refunds received) for income taxes, net | (164) | 5 |
Cash paid for amounts included in the measurement of lease liabilities | 19 | 14.5 |
Right-of-use assets obtained in exchange for operating lease liabilities | 9.3 | 11.1 |
Non-cash Investing Activities: | ||
Capital expenditure accruals as of September 30, 2020 and 2019 | $ 32.3 | $ 55.3 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation [Text Block] | Nature of Business QEP Resources, Inc. (QEP or the Company) is an independent crude oil and natural gas exploration and production company with operations in two regions of the United States: the Southern Region (primarily in Texas) and the Northern Region (primarily in North Dakota). Unless otherwise specified or the context otherwise requires, all references to "QEP" or the "Company" are to QEP Resources, Inc. and its subsidiaries on a consolidated basis. QEP's corporate headquarters are located in Denver, Colorado and shares of QEP's common stock trade on the New York Stock Exchange (NYSE) under the ticker symbol "QEP". Basis of Presentation The interim Condensed Consolidated Financial Statements (financial statements) contain the accounts of QEP and its majority-owned or controlled subsidiaries. The financial statements were prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States and with the instructions for Quarterly Reports on Form 10-Q and Regulation S-X. All intercompany accounts and transactions have been eliminated in consolidation. The financial statements reflect all normal recurring adjustments and accruals that are, in the opinion of management, necessary for a fair statement of financial position and results of operations for the interim periods presented. Interim financial statements do not include all of the information and notes required by GAAP for annual consolidated financial statements. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. The preparation of the financial statements and Notes in conformity with GAAP requires that management make estimates and assumptions that affect revenues, expenses, assets and liabilities, and disclosure of contingent assets and liabilities. Actual results could differ from estimates. Further, these estimates and other factors, including those outside the Company's control, such as the impact of sustained lower commodity prices, could have a significant adverse impact to the Company's financial condition, results of operations and cash flows. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Certain prior period balances on the Condensed Consolidated Balance Sheets (balance sheets) and Condensed Consolidated Statements of Cash Flows (statements of cash flows) have been reclassified to conform to the current year presentation. Such reclassifications had no effect on the Company's net income (loss), earnings (loss) per share or retained earnings previously reported. Cash, Cash Equivalents and Restricted Cash Cash equivalents primarily consist of highly liquid investments in securities with original maturities of three months or less made through commercial bank accounts that result in available funds the next business day. Restricted cash are funds that are legally or contractually reserved for a specific purpose and therefore not available for immediate or general business use. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets to the amounts shown in the statements of cash flows: September 30, 2020 2019 (in millions) Cash and cash equivalents $ 9.5 $ 92.4 Restricted cash (1) 31.0 29.7 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 40.5 $ 122.1 _______________________ (1) As of September 30, 2020 and 2019, the restricted cash balance is cash held in an escrow account related to a title dispute between outside parties in the Williston Basin. The restricted cash balance is recorded within "Other noncurrent assets" on the balance sheets. Income Tax The tax legislation enacted in December 2017 reduced our federal corporate tax rate from 35% to 21% and eliminated the corporate Alternative Minimum Tax (AMT), allowing the Company to claim AMT refunds for AMT credits carried forward from prior tax years. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) enacted in March 2020 permitted the Company to carry back its net operating loss (NOL) generated in 2018 and 2019, creating additional AMT credits, and accelerate all of its AMT refunds. The Company received $170.7 million of AMT credit refunds, inclusive of $5.6 million in interest income, during the three months ended September 30, 2020 and $73.9 million of AMT credit refunds in 2019. As of September 30, 2020, the Company expects to receive an additional $81.0 million in AMT credit refunds due to additional NOL carrybacks relating to the 2018 and 2019 tax years. The NOLs that were generated are primarily due to the issuance of final regulations by the U.S Department of Treasury in July 2020 that relate to the deductibility of interest expense. Of the $81.0 million in AMT credit refunds to be received, $50.1 million is included in "Income taxes receivable" and $30.9 million is included in "Other noncurrent assets" on the balance sheets as of September 30, 2020. QEP’s effective federal and state income tax rate was 52.9% during the third quarter of 2020 compared to a rate of 24.7% during the third quarter of 2019. The increase in the federal and state income tax rate was primarily driven by the impact of discrete items (unusual or infrequent items impacting the tax provision) and permanent differences recognized during the third quarter of 2020 and 2019. During the third quarter 2020 the effective rate was above the statutory rate due to discrete items recognized in the third quarter of 2020, including the remeasurement of deferred taxes due to NOL carrybacks under the CARES Act to a year with a higher federal tax rate, partially offset by a state tax payment. During the third quarter 2019 the rate was driven higher than the statutory rate by the recognition of a discrete item related to share-based compensation and a permanent difference related to the change in the estimated amount of non-deductible executive compensation. QEP’s effective federal and state income tax rate was negative 46.5% during the nine months ended September 30, 2020 compared to a rate of 130.8% during the nine months ended September 30, 2019. The decrease in the federal and state income tax rate was primarily driven by the impact of discrete items and permanent differences recognized during the nine months ended September 30, 2020 and 2019. During the first three quarters of 2020 the primary discrete item lowering the effective tax rate was the remeasurement of deferred taxes due to NOL carrybacks under the CARES Act to a year with a higher federal tax rate. The primary discrete items recognized during the nine months ended September 30, 2019 related to the remeasurement of deferred taxes associated with the sale of QEP's Haynesville/Cotton Valley assets in January 2019, share-based compensation adjustments and a permanent difference related to the estimated amount of non-deductible executive compensation. Impairment of Long-Lived Assets During the nine months ended September 30, 2020, there were no impairment charges. During the nine months ended September 30, 2019, QEP recorded impairment charges of $5.0 million related to an office building lease. Employee Benefits QEP provides pension and other postretirement benefits to certain employees through three retiree benefit plans: the QEP Resources, Inc. Retirement Plan (the Pension Plan), the Supplemental Executive Retirement Plan (the SERP), and a postretirement medical plan (the Medical Plan). The Pension Plan is a closed, qualified, defined-benefit pension plan that is funded and provides pension benefits to certain QEP employees. The Pension Plan was amended in June 2015 and was frozen, such that active participants do not earn any additional accrued benefits on or after January 1, 2016. The SERP is a nonqualified retirement plan that is unfunded and provides postretirement benefits to certain QEP employees. The Medical Plan is a self-insured plan. It is unfunded and provides other postretirement benefits including certain health care and life insurance benefits for certain retired QEP employees. During the nine months ended September 30, 2020, the Company made contributions of $11.5 million to its retiree benefit plans (including $4.0 million to the Pension Plan and $7.5 million to the SERP) and expects to contribute an additional $2.3 million during the remainder of 2020 (including $2.2 million to the SERP and $0.1 million to the Medical Plan). Contributions to the Pension Plan increase plan assets whereas contributions to the SERP and Medical Plan are used to fund current benefit payments. The Company recognizes service costs related to SERP and Medical Plan benefits on the Condensed Consolidated Statements of Operations (statements of operations) within "General and administrative" expense. All other expenses related to the Pension Plan, SERP and Medical Plan are recognized on the statements of operations within "Interest and other income (expense)". QEP also offers a nonqualified, unfunded deferred compensation wrap plan (Wrap Plan) to certain individuals. The Wrap Plan provides participants with certain tax planning benefits as well as supplemental funds for retirement and allows participants to defer the receipt of various types of compensation. Participants are able to select from a variety of investment options, including mutual funds and phantom QEP shares. As of September 30, 2020 and December 31, 2019, the Wrap Plan obligations for participants' future benefits were $25.0 million and $26.8 million, respectively, and are included in "Other long-term liabilities" on the balance sheets. The Company established a trust (Rabbi Trust) to hold the investments associated with the Wrap Plan (other than phantom QEP shares) and to pay Wrap Plan obligations as they arise. As of September 30, 2020 and December 31, 2019, the marketable securities held in the Rabbi Trust were $23.6 million and $23.1 million, respectively, and are included in "Other noncurrent assets" on the balance sheets. Changes in the fair value of Wrap Plan obligations and marketable securities are recorded as "Deferred compensation mark-to-market adjustments" and "Unrealized gain/loss on marketable securities" within "General and administrative" and "Interest and other income (expense)", respectively, on the statements of operations. "Deferred compensation mark-to-market adjustments" and "Unrealized gain/loss on marketable securities" for the three and nine months ended September 30, 2020 and 2019, respectively, are summarized in the table below: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Deferred compensation mark-to-market adjustments $ 0.5 $ (3.1) $ (2.7) $ 0.6 Unrealized (gain)/loss on marketable securities (1.1) (0.1) (1.1) (2.8) Refer to Note 6 – Fair Value Measurements for information on the fair value measurement of the marketable securities held in the Rabbi Trust and the Wrap Plan obligations. Recent Accounting Developments In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of credit losses on financial instruments , which requires a company immediately recognize management's current estimated credit losses ("CECL") for all financial instruments that are not accounted for at fair value through net income. Previously, credit losses on financial assets were only required to be recognized when they were incurred. The Company adopted ASU 2016-13 on January 1, 2020. The guidance did not have a significant impact on the financial statements or notes accompanying the financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair value measurement (Topic 820) - Disclosure framework - Changes to the disclosure requirements for fair value measurement , which modifies the disclosure requirements on fair value measurements in Topic 820. The Company adopted ASU 2018-13 on January 1, 2020. The guidance did not have a significant impact on the financial statements or notes accompanying the financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform , which provides temporary optional guidance to companies impacted by the transition away from the London Interbank Offered Rate (LIBOR). The amendment provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. This amendment is effective upon issuance and expires on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition and this ASU on the Company's financial statements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue | Revenue Recognition QEP recognizes revenue from the sale of oil and condensate, gas and NGL in the period that the performance obligations are satisfied. QEP's performance obligations are satisfied when the customer obtains control of product, when QEP has no further obligations to perform related to the sale, when the transaction price has been determined and when collectability is probable. The sale of oil and condensate, gas and NGL are made under contracts with customers, which typically include consideration that is based on pricing tied to local indices and volumes delivered in the current month. Reported revenues include estimates for the two most recent months using published commodity price indices and volumes supplied by field operators. Performance obligations under our contracts with customers are typically satisfied at a point in time through monthly delivery of oil and condensate, gas and/or NGL. Our contracts with customers typically require payment for oil and condensate, gas and NGL sales within 30 days following the calendar month of delivery. QEP's oil and condensate is typically sold at specific delivery points under contract terms that are common in the industry. QEP's gas and NGL are also sold under contract types that are common in the industry; however, under these contracts, the gas and its components, including NGL, may be sold to a single purchaser or the residue gas and NGL may be sold to separate purchasers. Regardless of the contract type, the terms of these contracts compensate QEP for the value of the residue gas and NGL constituent components at market prices for each product. QEP also purchases and resells oil and gas primarily to fulfill volume commitments when production does not fulfill contractual commitments and to capture additional margin from subsequent sales of third party purchases. QEP recognizes revenue from these resale activities in the period that the performance obligations are satisfied. The following tables present QEP's revenues that are disaggregated by revenue source and by geographic area. Transportation and processing costs in the following table are not all of the transportation and processing costs that QEP incurs, only the costs that are netted against revenues pursuant to ASC Topic 606, Revenue Recognition . Oil and condensate sales Gas sales NGL sales Transportation and processing costs included in revenue Oil and condensate, gas and NGL sales, as reported (in millions) Three Months Ended September 30, 2020 Northern Region Williston Basin $ 58.6 $ 3.3 $ 4.1 $ (9.4) $ 56.6 Other Northern — — — — — Southern Region Permian Basin 110.7 6.0 9.1 (6.6) 119.2 Other Southern — — — — — Total oil and condensate, gas and NGL sales $ 169.3 $ 9.3 $ 13.2 $ (16.0) $ 175.8 Three Months Ended September 30, 2019 Northern Region Williston Basin $ 88.9 $ 5.5 $ 2.4 $ (7.0) $ 89.8 Other Northern — 0.1 0.1 — 0.2 Southern Region Permian Basin 209.9 3.4 9.4 (7.2) 215.5 Other Southern — 0.1 — — 0.1 Total oil and condensate, gas and NGL sales $ 298.8 $ 9.1 $ 11.9 $ (14.2) $ 305.6 Oil and condensate sales Gas sales NGL sales Transportation and processing costs included in revenue Oil and condensate, gas and NGL sales, as reported (in millions) Nine Months Ended September 30, 2020 Northern Region Williston Basin $ 173.2 $ 10.9 $ 8.1 $ (27.3) $ 164.9 Other Northern 0.1 1.2 — — 1.3 Southern Region Permian Basin 334.5 12.5 21.0 (18.3) 349.7 Other Southern — — — — — Total oil and condensate, gas and NGL sales $ 507.8 $ 24.6 $ 29.1 $ (45.6) $ 515.9 Nine Months Ended September 30, 2019 Northern Region Williston Basin $ 306.3 $ 25.5 $ 15.6 $ (26.0) $ 321.4 Other Northern 0.9 0.4 0.1 — 1.4 Southern Region Permian Basin 526.7 7.4 27.4 (14.7) 546.8 Other Southern 0.1 6.1 — — 6.2 Total oil and condensate, gas and NGL sales $ 834.0 $ 39.4 $ 43.1 $ (40.7) $ 875.8 |
Acquisitions & Divestitures
Acquisitions & Divestitures | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions & Divestitures [Text Block] | Acquisitions During the nine months ended September 30, 2020 and 2019, QEP acquired various oil and gas properties, which primarily included proved leasehold acreage in the Permian Basin for an aggregate purchase price of $4.1 million and $3.6 million, respectively, subject to post-closing purchase price adjustments. Divestitures During the nine months ended September 30, 2020, QEP received proceeds of $13.4 million and recorded a pre-tax gain on sale of $3.8 million, primarily related to the divestiture of certain properties outside its main operating areas. Gains and losses on divestitures of properties are reported on the statements of operations within "Net gain (loss) from asset sales, inclusive of restructuring costs". Haynesville/Cotton Valley Divestiture In January 2019, QEP sold its Haynesville/Cotton Valley assets (Haynesville Divestiture), and during the year ended December 31, 2019, reached final settlement on asserted environmental and title defects and received aggregate net cash proceeds of $633.9 million. QEP recorded a total net pre-tax loss on sale, including restructuring costs of $4.0 million. During the three and nine months ended September 30, 2019, QEP recorded $0.3 million and $1.0 million of pre-tax loss on sale, respectively, within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations. During the three and nine months ended September 30, 2019, QEP accounted for revenues and expenses related to Haynesville/Cotton Valley, including the pre-tax loss on sale of $0.3 million and $1.0 million, respectively, as income from continuing operations on the statements of operations because the Haynesville Divestiture did not cause a strategic shift for the Company and therefore did not qualify as discontinued operations. During the three months ended September 30, 2019, QEP recorded net loss before income taxes related to the divested Haynesville/Cotton Valley properties of $0.2 million, which includes the pre-tax loss on sale of $0.3 million. Other Divestitures In addition to the Haynesville Divestiture, during the nine months ended September 30, 2019, QEP received net cash proceeds of $42.6 million and recorded a pre-tax gain on sale of $3.5 million, primarily related to the divestiture of properties outside its main operating areas. These gains and losses were recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Basic earnings (loss) per share (EPS) are computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the potential increase in the number of outstanding shares that could result from the exercise of in-the-money stock options. QEP's unvested restricted share awards are included in weighted-average basic common shares outstanding because, once the shares are granted, the restricted share awards are considered issued and outstanding, the historical forfeiture rate is minimal and the restricted share awards are eligible to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of earnings (loss) per share pursuant to the two-class method. The Company's unvested restricted share awards contain non-forfeitable dividend rights and participate equally with common stock with respect to dividends issued or declared. However, the Company's unvested restricted share awards do not have a contractual obligation to share in losses of the Company. The Company's unexercised stock options do not contain rights to dividends. Under the two-class method, the earnings used to determine basic earnings (loss) per common share are reduced by an amount allocated to participating securities. When the Company records a net loss, none of the loss is allocated to the participating securities since the securities are not obligated to share in Company losses. Use of the two-class method has an insignificant impact on the calculation of basic and diluted earnings (loss) per common share. For the three months ended September 30, 2020, the Company was in a net loss position, therefore, all potentially dilutive securities were anti-dilutive. The following is a reconciliation of the components of basic and diluted shares used in the EPS calculation: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in millions) Weighted-average basic common shares outstanding 242.3 237.9 241.2 237.7 Potential number of shares issuable upon exercise of in-the-money stock options under the Long-Term Stock Incentive Plan — — — — Average diluted common shares outstanding 242.3 237.9 241.2 237.7 |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations [Text Block] | QEP records asset retirement obligations (ARO) associated with the retirement of tangible, long-lived assets. The Company's ARO liability applies primarily to abandonment costs associated with oil and gas wells and certain other properties. The fair values of such costs are estimated by Company personnel based on abandonment costs of similar assets and depreciated over the life of the related assets. Revisions to the ARO estimates result from changes in expected cash flows or material changes in estimated asset retirement costs or estimated lives. The ARO liability is adjusted each period through an accretion calculation using a credit-adjusted risk-free interest rate. The balance sheet line items of QEP's ARO liability are presented in the table below: Asset Retirement Obligations September 30, December 31, 2020 2019 Balance Sheet line item (in millions) Current: Asset retirement obligations, current liability $ 7.1 $ 6.0 Long-term: Asset retirement obligations 94.8 94.9 Total ARO Liability $ 101.9 $ 100.9 The following is a reconciliation of the changes in the Company's ARO for the period specified below: Asset Retirement Obligations (in millions) ARO liability at January 1, 2020 $ 100.9 Accretion 2.9 Additions 1.1 Revisions (0.5) Liabilities related to assets sold (1.4) Liabilities settled (1.1) ARO liability at September 30, 2020 $ 101.9 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements [Text Block] | QEP measures and discloses fair values in accordance with the provisions of ASC 820, Fair Value Measurements and Disclosures . This guidance defines fair value in applying GAAP, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 also establishes a fair value hierarchy. Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. QEP has determined that its commodity derivative instruments are Level 2. The Level 2 fair value of commodity derivative contracts (refer to Note 7 – Derivative Contracts for more information) is based on market prices posted on the respective commodity exchange on the last trading day of the reporting period and industry standard discounted cash flow models. QEP primarily applies the market approach for recurring fair value measurements and maximizes its use of observable inputs and minimizes its use of unobservable inputs. QEP considers bid and ask prices for valuing the majority of its assets and liabilities measured and reported at fair value. In addition to using market data, QEP makes assumptions in valuing its assets and liabilities, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company's policy is to recognize transfers between levels at the end of the reporting period. Certain of the Company's commodity derivative instruments are valued using industry standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument and can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace. The determination of fair value for derivative assets and liabilities also incorporates nonperformance risk for counterparties and for QEP. Derivative contract fair values are reported on a net basis to the extent a legal right of offset with the counterparty exists. QEP has determined that the marketable securities held in the Rabbi Trust and the Wrap Plan obligations are Level 1. The fair value of the marketable securities in the Rabbi Trust is based on actively traded mutual funds. The Wrap Plan obligations, which represent the underlying liabilities to the participants in the Wrap Plan, are recorded at amounts due to participants, based on the fair value of participants' selected investments, including both actively traded mutual funds and phantom QEP shares. Refer to Note 1 – Basis of Presentation for additional information. The fair value of financial assets and liabilities at September 30, 2020 and December 31, 2019, is shown in the table below: Fair Value Measurements Gross Amounts of Assets and Liabilities Netting Adjustments (1) Net Amounts Presented on the Balance Sheets Level 1 Level 2 Level 3 (in millions) Financial Assets September 30, 2020 Fair value of derivative contracts – short-term $ — $ 89.0 $ — $ (11.5) $ 77.5 Fair value of derivative contracts – long-term — 0.9 — (0.1) 0.8 Fair value of Rabbi Trust marketable securities 23.6 — — — 23.6 Total financial assets $ 23.6 $ 89.9 $ — $ (11.6) $ 101.9 Financial Liabilities Fair value of derivative contracts – short-term $ — $ 16.2 $ — $ (11.5) $ 4.7 Fair value of derivative contracts – long-term — 6.8 — (0.1) 6.7 Fair value of Wrap Plan obligations 25.0 — — — 25.0 Total financial liabilities $ 25.0 $ 23.0 $ — $ (11.6) $ 36.4 December 31, 2019 Financial Assets Fair value of derivative contracts – short-term $ — $ 1.5 $ — $ — $ 1.5 Fair value of derivative contracts – long-term — 0.2 — — 0.2 Fair value of Rabbi Trust marketable securities 23.1 — — — 23.1 Total financial assets $ 23.1 $ 1.7 $ — $ — $ 24.8 Financial Liabilities Fair value of derivative contracts – short-term $ — $ 18.7 $ — $ — $ 18.7 Fair value of derivative contracts – long-term — 0.5 — — 0.5 Fair value of Wrap Plan obligations 26.8 — — — 26.8 Total financial liabilities $ 26.8 $ 19.2 $ — $ — $ 46.0 _______________________ (1) The Company nets its derivative contract assets and liabilities outstanding with the same counterparty on the balance sheets for the contracts that contain netting provisions. Refer to Note 7 – Derivative Contracts for additional information regarding the Company's derivative contracts. The following table discloses the fair value and related carrying amount of certain financial instruments not disclosed in other notes to the financial statements: Carrying Amount Level 1 Fair Value Carrying Amount Level 1 Fair Value September 30, 2020 December 31, 2019 Financial Liabilities (in millions) Total debt outstanding $ 1,590.4 $ 1,128.4 $ 2,015.6 $ 2,029.4 The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and checks outstanding in excess of cash balances approximate fair value. The fair value of fixed-rate long-term debt is based on the trading levels and dollar prices for the Company's debt at the end of the quarter. At times when the Company has outstanding debt under the credit facility, the carrying amount of variable-rate long-term debt approximates fair value because the floating interest rate paid on such debt is set for periods of one month or less. The initial measurement of ARO at fair value is calculated using discounted cash flow techniques and is based on internal estimates of future retirement costs associated with property, plant and equipment. Significant Level 3 inputs used in the calculation of ARO includes plugging costs and reserve lives. A reconciliation of the Company's ARO is presented in Note 5 – Asset Retirement Obligations. Nonrecurring Fair Value Measurements The provisions of the fair value measurement standard are also applied to the Company's nonrecurring measurements. The Company reviews its proved oil and gas properties and operating lease right-of-use assets for potential impairment at least annually and when events and changes in circumstances indicate that the carrying amount of such property may not be recoverable. If impairment is indicated, the fair value of property is measured utilizing the income approach and utilizing inputs that are primarily based upon internally developed cash flow models discounted at an appropriate weighted average cost of capital. In addition, the signing of a purchase and sale agreement could also trigger an impairment of proved properties. For assets subject to a purchase and sale agreement, the terms of the purchase and sale agreement are used as an indicator of fair value. If a range is estimated for the amount of future cash flows, the fair value of property is measured utilizing a probability-weighted approach in which the likelihood of possible outcomes is taken into consideration. Given the unobservable nature of the inputs, fair value calculations associated with long-term operating lease right-of-use assets and proved oil and gas property impairments are considered Level 3 within the fair value hierarchy. During the nine months ended September 30, 2020, the Company did not have an impairment charge. During the nine months ended September 30, 2019, the Company recorded impairment charges of $5.0 million related to an office building lease. Acquisitions of proved and unproved properties are also measured at fair value on a nonrecurring basis. The Company utilizes a discounted cash flow model to estimate the fair value of acquired property as of the acquisition date, which utilizes the following inputs to estimate future net cash flows: (i) estimated quantities of oil and condensate, gas and NGL reserves; (ii) estimates of future commodity prices; and (iii) estimated production rates, and future operating and development costs, which are based on the Company's historic experience with similar properties. In some instances, market comparable information of recent transactions is used to estimate fair value of unproved acreage. Due to the unobservable characteristics of the inputs, the fair value of the acquired properties is considered Level 3 within the fair value hierarchy. Refer to Note 3 – Acquisitions and Divestitures for more information on the fair value of acquired properties. |
Derivative Contracts
Derivative Contracts | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | QEP has established policies and procedures for managing commodity price volatility through the use of derivative instruments. In the normal course of business, QEP uses commodity price derivative instruments to reduce the impact of potential downward movements in commodity prices on cash flow, returns on capital investment, and other financial results. However, these instruments typically limit gains from favorable price movements. The volume of production subject to commodity derivative instruments and the mix of the instruments are frequently evaluated and adjusted by management in response to changing market conditions. QEP may enter into commodity derivative contracts for up to 100% of forecasted production, but generally, QEP enters into commodity derivative contracts for approximately 50% to 75% of its forecasted annual production by the end of the first quarter of each fiscal year. QEP does not enter into commodity derivative contracts for speculative purposes. QEP uses commodity derivative instruments known as fixed-price swaps, basis swaps or costless collars to realize a known price or price range for a specific volume of production delivered into a regional sales point. QEP's commodity derivative instruments do not require the physical delivery of oil or gas between the parties at settlement. All transactions are settled in cash with one party paying the other for the net difference in prices, multiplied by the contract volume, for the settlement period. Oil price derivative instruments are typically structured as NYMEX fixed-price swaps based at Cushing, Oklahoma. QEP also enters into oil price derivative swaps that use Intercontinental Exchange, Inc. (ICE) Brent or regional price indices as the reference price. In addition, QEP enters into oil basis swaps to achieve a fixed-price swap for a portion of its oil sales at prices that reference specific regional index prices. Gas price derivative instruments are typically structured as fixed-price swaps or collars at NYMEX Henry Hub or regional price indices. QEP does not currently have any commodity derivative instruments that have margin requirements or collateral provisions that would require payments prior to the scheduled settlement dates. QEP's commodity derivative contract counterparties are typically financial institutions and energy trading firms with investment-grade credit ratings. QEP routinely monitors and manages its exposure to counterparty risk by requiring specific minimum credit standards for all counterparties, actively monitoring counterparties' public credit ratings and avoiding the concentration of credit exposure by transacting with multiple counterparties. The Company has master-netting agreements with some counterparties that allow the offsetting of receivables and payables in a default situation. Derivative Contracts – Production The following table presents QEP's volumes and average prices for its commodity derivative swap contracts as of September 30, 2020: Year Index Total Volumes Average Swap Price per Unit (in millions) Oil sales (bbls) ($/bbl) 2020 NYMEX WTI 3.9 $ 57.60 2020 Argus WTI Midland 0.4 $ 57.30 2021 (January - June) NYMEX WTI 5.0 $ 44.78 2021 (July - December) NYMEX WTI 5.0 $ 42.22 Gas sales (MMbtu) ($/MMbtu) 2020 IF Waha (1) 3.7 $ 0.97 2020 NYMEX HH 2.8 $ 2.20 2021 IF Waha (1) 18.2 $ 1.92 2021 NYMEX HH 9.1 $ 2.44 _______________________ (1) IF Waha Index pricing reported in Platts' Inside FERC's Gas Market Report, reflects the weighted average price of Natural Gas transactions at the Waha Hub in west Texas on the first day of the month. QEP uses oil basis swaps, combined with NYMEX WTI fixed-price swaps, to achieve fixed price swaps for the location at which it physically sells its production. The following table presents details of QEP's oil basis swaps as of September 30, 2020: Year Index Basis Total Volumes Weighted-Average Differential (in millions) Oil sales (bbls) ($/bbl) 2020 NYMEX WTI Argus WTI Midland 1.8 $ 0.22 2021 NYMEX WTI Argus WTI Midland 4.4 $ 0.99 The following table presents QEP's volumes and average prices for its commodity derivative costless oil collars as of September 30, 2020: Year Index Total Volumes Average Price Floor Average Price Ceiling (in millions) (bbls) ($/bbl) ($/bbl) 2021 NYMEX WTI 0.4 $ 40.00 $ 49.20 The effects of the change in fair value and settlement of QEP's derivative contracts recorded in "Realized and unrealized gains (losses) on derivative contracts" on the statements of operations are summarized in the following table: Three Months Ended Nine Months Ended Derivative contracts September 30, September 30, 2020 2019 2020 2019 (1) Realized gains (losses) on commodity derivative contracts (in millions) Oil derivative contracts $ 70.3 $ (4.9) $ 233.1 $ (23.9) Gas derivative contracts (0.7) — (0.5) (2.9) Realized gains (losses) on commodity derivative contracts 69.6 (4.9) 232.6 (26.8) Unrealized gains (losses) on commodity derivative contracts Oil derivative contracts (91.7) 92.3 105.0 (30.5) Gas derivative contracts (12.1) — (20.6) (0.3) Unrealized gains (losses) on commodity derivative contracts (103.8) 92.3 84.4 (30.8) Total realized and unrealized gains (losses) on commodity derivative contracts related to production $ (34.2) $ 87.4 $ 317.0 $ (57.6) Derivatives associated with Haynesville Divestiture Unrealized gains (losses) on commodity derivative contracts Gas derivative contracts — — — 1.8 Unrealized gains (losses) on commodity derivative contracts related to divestitures (1) $ — $ — $ — $ 1.8 Total realized and unrealized gains (losses) on commodity derivative contracts $ (34.2) $ 87.4 $ 317.0 $ (55.8) _______________________ (1) During the nine months ended September 30, 2019, the unrealized gains (losses) on commodity derivative contracts related to the Haynesville Divestiture were comprised of derivatives included as part of the Haynesville/Cotton Valley purchase and sale agreement, which were subsequently novated to the buyer upon the closing of the sale in January 2019. Refer to Note 3 – Acquisitions and Divestitures for more information. The unrealized gains (losses) on commodity derivatives associated with the Haynesville Divestiture are offset by an equal amount recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | QEP enters into contractual lease arrangements to rent office space, compressors, generators, drilling rigs and other equipment from third-party lessors. QEP records a net operating lease right-of-use (ROU) asset and operating lease liability on the balance sheets for all operating leases with a contract term in excess of 12 months. ROU assets represent QEP’s right to use an underlying asset for the lease term and lease liabilities represent QEP’s obligation to make future lease payments arising from the lease. Operating lease ROU assets and liabilities are recorded at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. With the exception of generators, QEP does not account for lease components separately from the non-lease components. The contractual consideration provided under QEP's leased generators is allocated between lease components, such as equipment, and non-lease components, such as maintenance service fees, based on estimated costs from the vendor. QEP uses its incremental borrowing rate at commencement date of the contract in calculating the present value of future lease payments. The incremental borrowing rate is calculated using a risk-free interest rate adjusted for QEP's risk. The operating lease ROU asset also includes any lease incentives received in the recognition of the present value of future lease payments. Certain of QEP's leases may also include escalation clauses or options to extend or terminate the lease. These options are included in the present value recorded for the leases when it is reasonably certain that QEP will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. QEP determines if an arrangement is a lease at inception of the contract and records the resulting operating lease asset on the balance sheets as “Operating lease right-of-use assets, net” with offsetting liabilities recorded as “Current operating lease liabilities” and “Operating lease liabilities.” QEP recognizes a lease in the financial statements when the arrangement either explicitly or implicitly involves property, plant, or equipment (PP&E), the contract terms are dependent on the use of the PP&E, and QEP has the ability or right to operate the PP&E or to direct others to operate the PP&E and receive the majority of the economic benefits of the assets. As of September 30, 2020, QEP does not have any financing leases. Lease costs represent the straight-line lease expense of ROU assets and short-term leases. The components of lease cost are classified as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Lease Cost included in the Condensed Consolidated Balance Sheets (in millions) Property, Plant and Equipment acquisitions (1) $ 2.1 $ 2.5 $ 9.2 $ 11.3 Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Lease Cost included in the Condensed Consolidated Statement of Operations (in millions) Lease operating expense $ 3.4 $ 2.9 $ 8.8 $ 9.0 Gathering and other expense 1.9 2.0 5.7 5.8 General and administrative 1.5 1.3 4.5 4.5 Total lease cost $ 8.9 $ 8.7 $ 28.2 $ 30.6 ____________________________ (1) Represents short-term lease capital expenditures related to drilling rigs for the three and nine months ended September 30, 2020 and 2019. These costs are capitalized as a part of "Proved properties" on the balance sheets. Lease term and discount rate related to the Company's leases are as follows: September 30, 2020 September 30, 2019 Weighted-average remaining lease term (years) 3.5 3.4 Weighted-average discount rate 7.2 % 7.7 % As of September 30, 2020 and December 31, 2019, the maturity analysis for long-term operating leases under the scope of ASC 842 is as follows: September 30, 2020 December 31, 2019 Year (in millions) 2020 $ 6.8 $ 22.3 2021 25.0 20.4 2022 17.0 15.9 2023 11.4 10.6 2024 2.3 1.4 After 2024 2.6 2.4 Less: Interest (1) (7.1) (10.2) Present value of lease liabilities (2) $ 58.0 $ 62.8 ____________________________ (1) Calculated using the estimated interest rate for each lease. (2) As of September 30, 2020 and December 31, 2019, of the total present value of lease liabilities, $22.6 million and $18.0 million, was recorded in "Current operating lease liabilities", respectively, and $35.4 million and $44.8 million was recorded in "Operating lease liabilities", respectively, on the balance sheets. |
Restructuring Costs
Restructuring Costs | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | In February 2018, QEP's Board of Directors (Board) approved certain strategic and financial initiatives. In February 2019, QEP's Board commenced a comprehensive review of strategic alternatives to maximize shareholder value. In connection with these activities, QEP has incurred various restructuring costs associated with contractual termination benefits including severance, accelerated vesting of share-based compensation and other expenses. The termination benefits are accounted for under ASC 712, Compensation – Nonretirement Postemployment Benefits and ASC 718, Compensation – Stock Compensation . There were no restructuring costs recognized during the three months ended September 30, 2020. Restructuring costs recognized are summarized below: Total recognized Recognized in "General and administrative" Recognized in "Net (gain) loss from asset sales, inclusive of restructuring costs" Recognized in "Interest and other (income) expense" (in millions) Nine Months Ended September 30, 2020 Termination benefits $ 1.0 $ 1.0 $ — $ — Accelerated share-based compensation 0.5 0.5 — — Retention expense (including share-based compensation) 0.4 0.4 — — Total restructuring costs $ 1.9 $ 1.9 $ — $ — Three Months Ended September 30, 2019 Termination benefits $ 4.3 $ 4.3 $ — $ — Accelerated share-based compensation 1.6 1.6 — — Retention expense (including share-based compensation) 4.5 4.5 — — Pension and Medical Plan curtailment — — — — Total restructuring costs $ 10.4 $ 10.4 $ — $ — Nine Months Ended September 30, 2019 Termination benefits $ 11.0 $ 10.9 $ 0.1 $ — Office lease termination costs 0.6 0.6 — — Accelerated share-based compensation 11.3 9.8 1.5 — Retention expense (including share-based compensation) 15.4 15.4 — — Pension and Medical Plan curtailment (0.4) — (0.2) (0.2) Total restructuring costs $ 37.9 $ 36.7 $ 1.4 $ (0.2) Costs recognized from inception through September 30, 2020 (1) Total remaining costs expected to be incurred (in millions) Termination benefits $ 45.6 $ — Office lease termination costs 1.6 — Accelerated share-based compensation 24.1 — Retention expense (including share-based compensation) 38.7 — Pension and Medical Plan curtailment 1.3 — Total restructuring costs $ 111.3 $ — ____________________________ (1) Represents costs incurred since February 2018 when QEP's Board approved certain strategic and financial initiatives. The following table is a reconciliation of QEP's restructuring liability, which is included within "Accounts payable and accrued expenses" on the balance sheets. Restructuring liability Termination benefits Office lease termination costs Accelerated share-based compensation Retention expense Pension curtailment Total (in millions) Balance at December 31, 2019 $ 1.2 $ — $ — $ 6.5 $ — $ 7.7 Costs incurred and charged to expense 1.0 — 0.5 0.4 — 1.9 Costs paid or otherwise settled (2.2) — (0.5) (6.9) — (9.6) Balance at September 30, 2020 $ — $ — $ — $ — $ — $ — |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | As of the indicated dates, QEP's long-term debt outstanding consisted of the following: September 30, December 31, (in millions) Revolving Credit Facility due 2022 $ — $ — 6.875% Senior Notes due 2021 — 382.4 5.375% Senior Notes due 2022 465.1 500.0 5.25% Senior Notes due 2023 636.8 650.0 5.625% Senior Notes due 2026 500.0 500.0 Less: unamortized discount and unamortized debt issuance costs (11.5) (16.8) Total long-term debt outstanding $ 1,590.4 $ 2,015.6 Of the total debt outstanding on September 30, 2020, the 5.375% Senior Notes due October 1, 2022 and the 5.25% Senior Notes due May 1, 2023, will mature within the next five years. In addition, the revolving credit facility matures on September 1, 2022. Credit Facility In June 2020, QEP entered into the Eighth Amendment to its credit agreement, which, among other things, reduced the aggregate principal amount of commitments to $850.0 million, requires the Company’s material subsidiaries to guarantee the obligations under the credit agreement as well as certain swap obligations and modified the leverage ratio and present value financial covenants, such that they only pertain to net priority guaranteed debt (primarily consisting of borrowings under the credit facility and letters of credit). The amended credit agreement also provides the ability to use up to $500.0 million of loan proceeds to repurchase outstanding senior notes, provides the ability to issue subsidiary guarantees of up to $500.0 million of unsecured debt, with such guarantees being subordinated to the obligations under the credit agreement, and may limit the Company’s ability to make certain restricted payments, including dividends. The amended credit agreement, which matures on September 1, 2022, provides for borrowings at short-term interest rates and contains customary covenants and restrictions and contains financial covenants (that are defined in the credit agreement) that limit the amount of debt the Company can incur and may limit the amount available to be drawn under the credit facility including: (i) a minimum liquidity amount of at least $100.0 million (ii) a net priority guaranteed leverage ratio under which net priority guaranteed debt may not exceed 2.50 times consolidated EBITDAX (as defined in the credit agreement), and (iii) a present value coverage ratio under which the present value of the Company's proved reserves must exceed net priority guaranteed debt by at least 1.50 times. At September 30, 2020 and December 31, 2019, QEP was in compliance with the covenants under its credit agreement. During the nine months ended September 30, 2020, the Company recorded a $1.5 million loss associated with the write-off of non-cash deferred financing costs as part of amending the credit facility and recorded the loss within "Gain (loss) from early extinguishment of debt" on the statements of operations. During the nine months ended September 30, 2020, QEP's weighted average interest rate on borrowings under its credit facility was 2.60%. As of September 30, 2020, QEP had no borrowings outstanding and $11.9 million in letters of credit outstanding under the credit facility. As of December 31, 2019, QEP had no borrowings outstanding and $2.9 million in letters of credit outstanding under the credit facility. Senior Notes At September 30, 2020, the Company had $1,601.9 million in principal amount of senior notes outstanding with maturities ranging from October 1, 2022 to March 1, 2026, and coupons ranging from 5.25% to 5.625%. The senior notes pay interest semi-annually, are unsecured senior obligations and rank equally with all of QEP's other existing and future senior unsecured indebtedness. QEP may redeem some or all of its senior notes at any time before their maturity at a redemption price based on a make-whole amount plus accrued and unpaid interest to the date of redemption. The indentures governing QEP's senior notes contain customary events of default and covenants that may limit QEP's ability to, among other things, place liens on its property or assets. During the nine months ended September 30, 2020, QEP repurchased, at a discount, $107.1 million in principal amount of its 6.875% Senior Notes due March 1, 2021, $34.9 million in principal amount of its 5.375% Senior Notes due October 1, 2022 and $13.2 million in principal amount of its 5.25% Senior Notes due May 1, 2023, resulting in a $27.1 million gain from early extinguishment of debt. In addition, during the third quarter of 2020, QEP redeemed the remaining $275.3 million in principal amount of its 6.875% Senior Notes due March 1, 2021, resulting in a loss on early extinguishment of debt of $7.4 million. In total, during the nine months ended September 30, 2020, the Company recorded a $19.7 million net gain in "Gain (loss) from early extinguishment of debt" on the statements of operations related to the repurchase and redemption of senior notes. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitment and Contingencies [Text Block] | The Company is involved in various commercial and regulatory claims, litigation and other legal proceedings that arise in the ordinary course of its business. In each reporting period, the Company assesses these claims in an effort to determine the degree of probability and range of possible loss for potential accrual in its financial statements. In accordance with ASC 450, Contingencies , an accrual is recorded for a material loss contingency when its occurrence is probable and damages are reasonably estimable based on the anticipated most likely outcome or the minimum amount within a range of possible outcomes. Legal proceedings are inherently unpredictable and unfavorable resolutions can occur. Assessing contingencies is highly subjective and requires judgment about uncertain future events. When evaluating contingencies related to legal proceedings, the Company may be unable to estimate losses due to a number of factors, including potential defenses, the procedural status of the matter in question, the presence of complex legal and/or factual issues and the ongoing discovery and/or development of information important to the matter. Mandan, Hidatsa and Arikara Nation ("MHA Nation") Title Dispute – In June 2018, the MHA Nation notified QEP of its position that QEP has no valid lease covering certain minerals underlying the Missouri and Little Missouri Riverbeds on the Fort Berthold Reservation in North Dakota. The MHA Nation also passed a resolution purporting to rescind those portions of QEP's IMDA lease covering the disputed minerals underlying the Missouri River. In May 2020, the Office of the Solicitor of the United States Department of the Interior issued an opinion finding that the State of North Dakota, not the MHA Nation, is the legal owner of the minerals underlying the Missouri River. QEP holds leases granted by the State of North Dakota covering the majority of QEP’s producing tracts underlying the Missouri River. The MHA Nation has filed actions in two federal courts seeking to overturn the May 2020 opinion. Overriding Royalty Interest Litigation – In July 2019, owners of small overriding royalty interests in certain wells in the South Antelope oil and gas field in North Dakota filed suit against QEP, alleging QEP has improperly taken deductions for post-production expenses. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheets to the amounts shown in the statements of cash flows: September 30, 2020 2019 (in millions) Cash and cash equivalents $ 9.5 $ 92.4 Restricted cash (1) 31.0 29.7 Total cash, cash equivalents and restricted cash shown in the statements of cash flows $ 40.5 $ 122.1 _______________________ |
Schedule of Deferred Compensation Mark To Market And Unrealized Gain Loss [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (in millions) Deferred compensation mark-to-market adjustments $ 0.5 $ (3.1) $ (2.7) $ 0.6 Unrealized (gain)/loss on marketable securities (1.1) (0.1) (1.1) (2.8) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition [Table Text Block] | The following tables present QEP's revenues that are disaggregated by revenue source and by geographic area. Transportation and processing costs in the following table are not all of the transportation and processing costs that QEP incurs, only the costs that are netted against revenues pursuant to ASC Topic 606, Revenue Recognition . Oil and condensate sales Gas sales NGL sales Transportation and processing costs included in revenue Oil and condensate, gas and NGL sales, as reported (in millions) Three Months Ended September 30, 2020 Northern Region Williston Basin $ 58.6 $ 3.3 $ 4.1 $ (9.4) $ 56.6 Other Northern — — — — — Southern Region Permian Basin 110.7 6.0 9.1 (6.6) 119.2 Other Southern — — — — — Total oil and condensate, gas and NGL sales $ 169.3 $ 9.3 $ 13.2 $ (16.0) $ 175.8 Three Months Ended September 30, 2019 Northern Region Williston Basin $ 88.9 $ 5.5 $ 2.4 $ (7.0) $ 89.8 Other Northern — 0.1 0.1 — 0.2 Southern Region Permian Basin 209.9 3.4 9.4 (7.2) 215.5 Other Southern — 0.1 — — 0.1 Total oil and condensate, gas and NGL sales $ 298.8 $ 9.1 $ 11.9 $ (14.2) $ 305.6 Oil and condensate sales Gas sales NGL sales Transportation and processing costs included in revenue Oil and condensate, gas and NGL sales, as reported (in millions) Nine Months Ended September 30, 2020 Northern Region Williston Basin $ 173.2 $ 10.9 $ 8.1 $ (27.3) $ 164.9 Other Northern 0.1 1.2 — — 1.3 Southern Region Permian Basin 334.5 12.5 21.0 (18.3) 349.7 Other Southern — — — — — Total oil and condensate, gas and NGL sales $ 507.8 $ 24.6 $ 29.1 $ (45.6) $ 515.9 Nine Months Ended September 30, 2019 Northern Region Williston Basin $ 306.3 $ 25.5 $ 15.6 $ (26.0) $ 321.4 Other Northern 0.9 0.4 0.1 — 1.4 Southern Region Permian Basin 526.7 7.4 27.4 (14.7) 546.8 Other Southern 0.1 6.1 — — 6.2 Total oil and condensate, gas and NGL sales $ 834.0 $ 39.4 $ 43.1 $ (40.7) $ 875.8 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted shares used in EPS [Table Text Block] | The following is a reconciliation of the components of basic and diluted shares used in the EPS calculation: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in millions) Weighted-average basic common shares outstanding 242.3 237.9 241.2 237.7 Potential number of shares issuable upon exercise of in-the-money stock options under the Long-Term Stock Incentive Plan — — — — Average diluted common shares outstanding 242.3 237.9 241.2 237.7 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Asset Retirement Obligations September 30, December 31, 2020 2019 Balance Sheet line item (in millions) Current: Asset retirement obligations, current liability $ 7.1 $ 6.0 Long-term: Asset retirement obligations 94.8 94.9 Total ARO Liability $ 101.9 $ 100.9 |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | The following is a reconciliation of the changes in the Company's ARO for the period specified below: Asset Retirement Obligations (in millions) ARO liability at January 1, 2020 $ 100.9 Accretion 2.9 Additions 1.1 Revisions (0.5) Liabilities related to assets sold (1.4) Liabilities settled (1.1) ARO liability at September 30, 2020 $ 101.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of financial assets and liabilities [Table Text Block] | The fair value of financial assets and liabilities at September 30, 2020 and December 31, 2019, is shown in the table below: Fair Value Measurements Gross Amounts of Assets and Liabilities Netting Adjustments (1) Net Amounts Presented on the Balance Sheets Level 1 Level 2 Level 3 (in millions) Financial Assets September 30, 2020 Fair value of derivative contracts – short-term $ — $ 89.0 $ — $ (11.5) $ 77.5 Fair value of derivative contracts – long-term — 0.9 — (0.1) 0.8 Fair value of Rabbi Trust marketable securities 23.6 — — — 23.6 Total financial assets $ 23.6 $ 89.9 $ — $ (11.6) $ 101.9 Financial Liabilities Fair value of derivative contracts – short-term $ — $ 16.2 $ — $ (11.5) $ 4.7 Fair value of derivative contracts – long-term — 6.8 — (0.1) 6.7 Fair value of Wrap Plan obligations 25.0 — — — 25.0 Total financial liabilities $ 25.0 $ 23.0 $ — $ (11.6) $ 36.4 December 31, 2019 Financial Assets Fair value of derivative contracts – short-term $ — $ 1.5 $ — $ — $ 1.5 Fair value of derivative contracts – long-term — 0.2 — — 0.2 Fair value of Rabbi Trust marketable securities 23.1 — — — 23.1 Total financial assets $ 23.1 $ 1.7 $ — $ — $ 24.8 Financial Liabilities Fair value of derivative contracts – short-term $ — $ 18.7 $ — $ — $ 18.7 Fair value of derivative contracts – long-term — 0.5 — — 0.5 Fair value of Wrap Plan obligations 26.8 — — — 26.8 Total financial liabilities $ 26.8 $ 19.2 $ — $ — $ 46.0 _______________________ (1) The Company nets its derivative contract assets and liabilities outstanding with the same counterparty on the balance sheets for the contracts that contain netting provisions. Refer to Note 7 – Derivative Contracts for additional information regarding the Company's derivative contracts. |
Fair value and related carrying amount of certain financial instruments [Table Text Block] | The following table discloses the fair value and related carrying amount of certain financial instruments not disclosed in other notes to the financial statements: Carrying Amount Level 1 Fair Value Carrying Amount Level 1 Fair Value September 30, 2020 December 31, 2019 Financial Liabilities (in millions) Total debt outstanding $ 1,590.4 $ 1,128.4 $ 2,015.6 $ 2,029.4 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | Derivative Contracts – Production The following table presents QEP's volumes and average prices for its commodity derivative swap contracts as of September 30, 2020: Year Index Total Volumes Average Swap Price per Unit (in millions) Oil sales (bbls) ($/bbl) 2020 NYMEX WTI 3.9 $ 57.60 2020 Argus WTI Midland 0.4 $ 57.30 2021 (January - June) NYMEX WTI 5.0 $ 44.78 2021 (July - December) NYMEX WTI 5.0 $ 42.22 Gas sales (MMbtu) ($/MMbtu) 2020 IF Waha (1) 3.7 $ 0.97 2020 NYMEX HH 2.8 $ 2.20 2021 IF Waha (1) 18.2 $ 1.92 2021 NYMEX HH 9.1 $ 2.44 _______________________ (1) IF Waha Index pricing reported in Platts' Inside FERC's Gas Market Report, reflects the weighted average price of Natural Gas transactions at the Waha Hub in west Texas on the first day of the month. QEP uses oil basis swaps, combined with NYMEX WTI fixed-price swaps, to achieve fixed price swaps for the location at which it physically sells its production. The following table presents details of QEP's oil basis swaps as of September 30, 2020: Year Index Basis Total Volumes Weighted-Average Differential (in millions) Oil sales (bbls) ($/bbl) 2020 NYMEX WTI Argus WTI Midland 1.8 $ 0.22 2021 NYMEX WTI Argus WTI Midland 4.4 $ 0.99 The following table presents QEP's volumes and average prices for its commodity derivative costless oil collars as of September 30, 2020: Year Index Total Volumes Average Price Floor Average Price Ceiling (in millions) (bbls) ($/bbl) ($/bbl) 2021 NYMEX WTI 0.4 $ 40.00 $ 49.20 |
Derivative Instruments, Gain (Loss) [Table Text Block] | The effects of the change in fair value and settlement of QEP's derivative contracts recorded in "Realized and unrealized gains (losses) on derivative contracts" on the statements of operations are summarized in the following table: Three Months Ended Nine Months Ended Derivative contracts September 30, September 30, 2020 2019 2020 2019 (1) Realized gains (losses) on commodity derivative contracts (in millions) Oil derivative contracts $ 70.3 $ (4.9) $ 233.1 $ (23.9) Gas derivative contracts (0.7) — (0.5) (2.9) Realized gains (losses) on commodity derivative contracts 69.6 (4.9) 232.6 (26.8) Unrealized gains (losses) on commodity derivative contracts Oil derivative contracts (91.7) 92.3 105.0 (30.5) Gas derivative contracts (12.1) — (20.6) (0.3) Unrealized gains (losses) on commodity derivative contracts (103.8) 92.3 84.4 (30.8) Total realized and unrealized gains (losses) on commodity derivative contracts related to production $ (34.2) $ 87.4 $ 317.0 $ (57.6) Derivatives associated with Haynesville Divestiture Unrealized gains (losses) on commodity derivative contracts Gas derivative contracts — — — 1.8 Unrealized gains (losses) on commodity derivative contracts related to divestitures (1) $ — $ — $ — $ 1.8 Total realized and unrealized gains (losses) on commodity derivative contracts $ (34.2) $ 87.4 $ 317.0 $ (55.8) _______________________ (1) During the nine months ended September 30, 2019, the unrealized gains (losses) on commodity derivative contracts related to the Haynesville Divestiture were comprised of derivatives included as part of the Haynesville/Cotton Valley purchase and sale agreement, which were subsequently novated to the buyer upon the closing of the sale in January 2019. Refer to Note 3 – Acquisitions and Divestitures for more information. The unrealized gains (losses) on commodity derivatives associated with the Haynesville Divestiture are offset by an equal amount recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Lease costs represent the straight-line lease expense of ROU assets and short-term leases. The components of lease cost are classified as follows: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Lease Cost included in the Condensed Consolidated Balance Sheets (in millions) Property, Plant and Equipment acquisitions (1) $ 2.1 $ 2.5 $ 9.2 $ 11.3 Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Lease Cost included in the Condensed Consolidated Statement of Operations (in millions) Lease operating expense $ 3.4 $ 2.9 $ 8.8 $ 9.0 Gathering and other expense 1.9 2.0 5.7 5.8 General and administrative 1.5 1.3 4.5 4.5 Total lease cost $ 8.9 $ 8.7 $ 28.2 $ 30.6 ____________________________ (1) Represents short-term lease capital expenditures related to drilling rigs for the three and nine months ended September 30, 2020 and 2019. These costs are capitalized as a part of "Proved properties" on the balance sheets. |
Lessee, Operating Leases [Text Block] | Lease term and discount rate related to the Company's leases are as follows: September 30, 2020 September 30, 2019 Weighted-average remaining lease term (years) 3.5 3.4 Weighted-average discount rate 7.2 % 7.7 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | September 30, 2020 December 31, 2019 Year (in millions) 2020 $ 6.8 $ 22.3 2021 25.0 20.4 2022 17.0 15.9 2023 11.4 10.6 2024 2.3 1.4 After 2024 2.6 2.4 Less: Interest (1) (7.1) (10.2) Present value of lease liabilities (2) $ 58.0 $ 62.8 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | Restructuring costs recognized are summarized below: Total recognized Recognized in "General and administrative" Recognized in "Net (gain) loss from asset sales, inclusive of restructuring costs" Recognized in "Interest and other (income) expense" (in millions) Nine Months Ended September 30, 2020 Termination benefits $ 1.0 $ 1.0 $ — $ — Accelerated share-based compensation 0.5 0.5 — — Retention expense (including share-based compensation) 0.4 0.4 — — Total restructuring costs $ 1.9 $ 1.9 $ — $ — Three Months Ended September 30, 2019 Termination benefits $ 4.3 $ 4.3 $ — $ — Accelerated share-based compensation 1.6 1.6 — — Retention expense (including share-based compensation) 4.5 4.5 — — Pension and Medical Plan curtailment — — — — Total restructuring costs $ 10.4 $ 10.4 $ — $ — Nine Months Ended September 30, 2019 Termination benefits $ 11.0 $ 10.9 $ 0.1 $ — Office lease termination costs 0.6 0.6 — — Accelerated share-based compensation 11.3 9.8 1.5 — Retention expense (including share-based compensation) 15.4 15.4 — — Pension and Medical Plan curtailment (0.4) — (0.2) (0.2) Total restructuring costs $ 37.9 $ 36.7 $ 1.4 $ (0.2) |
Restructuring Costs [Table Text Block] | Costs recognized from inception through September 30, 2020 (1) Total remaining costs expected to be incurred (in millions) Termination benefits $ 45.6 $ — Office lease termination costs 1.6 — Accelerated share-based compensation 24.1 — Retention expense (including share-based compensation) 38.7 — Pension and Medical Plan curtailment 1.3 — Total restructuring costs $ 111.3 $ — ____________________________ (1) Represents costs incurred since February 2018 when QEP's Board approved certain strategic and financial initiatives. |
Restructuring Costs, Liability [Table Text Block] | The following table is a reconciliation of QEP's restructuring liability, which is included within "Accounts payable and accrued expenses" on the balance sheets. Restructuring liability Termination benefits Office lease termination costs Accelerated share-based compensation Retention expense Pension curtailment Total (in millions) Balance at December 31, 2019 $ 1.2 $ — $ — $ 6.5 $ — $ 7.7 Costs incurred and charged to expense 1.0 — 0.5 0.4 — 1.9 Costs paid or otherwise settled (2.2) — (0.5) (6.9) — (9.6) Balance at September 30, 2020 $ — $ — $ — $ — $ — $ — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Outstanding [Table Text Block] | As of the indicated dates, QEP's long-term debt outstanding consisted of the following: September 30, December 31, (in millions) Revolving Credit Facility due 2022 $ — $ — 6.875% Senior Notes due 2021 — 382.4 5.375% Senior Notes due 2022 465.1 500.0 5.25% Senior Notes due 2023 636.8 650.0 5.625% Senior Notes due 2026 500.0 500.0 Less: unamortized discount and unamortized debt issuance costs (11.5) (16.8) Total long-term debt outstanding $ 1,590.4 $ 2,015.6 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Expense [Table Text Block] | Share-based compensation expense is generally recognized within "General and administrative" expense on the statements of operations and is summarized in the table below. Three Months Ended Nine Months Ended September 30, September 30, 2020 (1) 2019 (2) 2020 (1) 2019 (2) (in millions) Non-cash share-based compensation Stock options $ — $ — $ — $ 0.3 Restricted share awards 2.9 5.0 9.3 15.9 Total non-cash share-based compensation 2.9 5.0 9.3 16.2 Cash share-based compensation Restricted cash awards 0.5 — 1.2 — Performance share units 0.5 (0.9) 0.5 4.6 Restricted share units — — — 0.2 Total cash share-based compensation 1.0 (0.9) 1.7 4.8 Total share-based compensation expense $ 3.9 $ 4.1 $ 11.0 $ 21.0 ________________________ (1) During the three months ended September 30, 2020, the Company did not incur any costs related to accelerated vesting. During the nine months ended September 30, 2020 the Company incurred $0.5 million of share-based compensation expense related to the acceleration of vesting that occurred as part of the restructuring program and is included in the table above. Refer to Note 9 – Restructuring for additional information. (2) During the three and nine months ended September 30, 2019, the Company recorded $1.6 million and $11.3 million, respectively, of share-based compensation expense related to the acceleration of vesting that occurred as part of the restructuring program. Of the $11.3 million recorded during the nine months ended September 30, 2019, $1.5 million was recorded in "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statement of operations and the remaining $9.8 million is included in the table above. Refer to Note 9 – Restructuring for additional information. |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock option transactions under the terms of the LTSIP are summarized below: Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (per share) (in years) (in millions) Outstanding at December 31, 2019 1,802,387 $ 20.87 Forfeited (311,203) 30.08 Outstanding at September 30, 2020 1,491,184 $ 18.94 2.02 $ — Options Exercisable at September 30, 2020 1,491,184 $ 18.94 2.02 $ — Unvested Options at September 30, 2020 — $ — 0 $ — |
Schedule Of Long Term Incentive Based Compensation Restricted Cash Awards [Table Text Block] | Restricted Cash Awards Outstanding Unvested balance at December 31, 2019 $ — Granted 3,249,925 Vested (7,000) Forfeited (64,750) Unvested balance at September 30, 2020 $ 3,178,175 |
Schedule of Other Share-based Compensation, PSUs & RSUs [Table Text Block] | Transactions involving performance share units under the terms of the CIP are summarized below: Performance Share Units Outstanding Weighted-Average Grant Date Fair Value (per share) Unvested balance at December 31, 2019 625,922 $ 9.04 Granted 1,926,026 2.17 Vested and paid (96,734) 13.06 Unvested balance at September 30, 2020 2,455,214 $ 3.56 |
Schedule of Share-based Compensation, Restricted Share Awards Activity [Table Text Block] | Transactions involving restricted share awards under the terms of the LTSIP and LTIP are summarized below: Restricted Share Awards Outstanding Weighted-Average Grant Date Fair Value (per share) Unvested balance at December 31, 2019 2,845,033 $ 8.67 Granted 5,080,589 2.10 Vested (1,383,618) 9.26 Forfeited (97,718) 4.91 Unvested balance at September 30, 2020 6,444,286 $ 3.42 Transactions involving restricted share units under the terms of the LTSIP and LTIP are summarized below: Restricted Share Units Outstanding Weighted-Average Grant Date Fair Value (per share) Unvested balance at December 31, 2019 34,393 $ 8.16 Granted 76,083 2.08 Vested and paid (26,770) 8.20 Unvested balance at September 30, 2020 83,706 $ 2.62 |
Basis of Presentation Restricte
Basis of Presentation Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Cash and cash equivalents | $ 9.5 | $ 166.3 | $ 92.4 | ||
Restricted cash(1) | [1] | 31 | 29.7 | ||
Total cash, cash equivalents and restricted cash shown in the statements of cash flows | $ 40.5 | $ 196.4 | $ 122.1 | $ 28.1 | |
[1] | As of September 30, 2020 and 2019, the restricted cash balance is cash held in an escrow account related to a title dispute between outside parties in the Williston Basin. The restricted cash balance is recorded within "Other noncurrent assets" on the balance sheets. |
Basis of Presentation Income Ta
Basis of Presentation Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |||||
Proceeds from Income Tax Refunds | $ 170.7 | $ 73.9 | |||||
Income tax receivable | 81 | $ 81 | |||||
Proceeds from Interest on AMT Credit Refunds | $ 5.6 | ||||||
Effective Income Tax Rate, Percent | 52.90% | 24.70% | 46.50% | 130.80% | |||
Other Current Assets [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Income tax receivable | $ 50.1 | $ 50.1 | |||||
Other Noncurrent Assets [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Income tax receivable | $ 30.9 | $ 30.9 |
Basis of Presentation Impairmen
Basis of Presentation Impairment of Real Estate (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Impairment of Real Estate | $ 5 |
Basis of Presentation Employee
Basis of Presentation Employee Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 11.5 | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 2.3 | 2.3 | |||
WRAP Plan Liabilities | 25 | 25 | $ 26.8 | ||
Rabbi Trust Marketable Securities | 23.6 | 23.6 | $ 23.1 | ||
Deferred Compensation Mark To Market Adjustments | 0.5 | $ (3.1) | (2.7) | $ 0.6 | |
Marketable Securities, Unrealized Gain (Loss) | (1.1) | $ (0.1) | (1.1) | $ (2.8) | |
Pension Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 4 | ||||
SERP [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 7.5 | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 2.2 | 2.2 | |||
Medical Plan [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 0.1 | $ 0.1 |
Revenue Disaggregated Revenue (
Revenue Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 177.8 | $ 307.5 | $ 524.2 | $ 884.3 |
As reported [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 175.8 | 305.6 | 515.9 | 875.8 |
Williston Basin [Member] | As reported [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 56.6 | 89.8 | 164.9 | 321.4 |
Other Northern [Member] | As reported [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0.2 | 1.3 | 1.4 |
Permian Basin [Member] | As reported [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 119.2 | 215.5 | 349.7 | 546.8 |
Other Southern [Member] | As reported [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0.1 | 0 | 6.2 |
Oil and Condensate [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 169.3 | 298.8 | 507.8 | 834 |
Oil and Condensate [Member] | Williston Basin [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 58.6 | 88.9 | 173.2 | 306.3 |
Oil and Condensate [Member] | Other Northern [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0.1 | 0.9 |
Oil and Condensate [Member] | Permian Basin [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 110.7 | 209.9 | 334.5 | 526.7 |
Oil and Condensate [Member] | Other Southern [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0.1 |
Natural Gas Liquids [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13.2 | 11.9 | 29.1 | 43.1 |
Natural Gas Liquids [Member] | Williston Basin [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4.1 | 2.4 | 8.1 | 15.6 |
Natural Gas Liquids [Member] | Other Northern [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0.1 | 0 | 0.1 |
Natural Gas Liquids [Member] | Permian Basin [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9.1 | 9.4 | 21 | 27.4 |
Natural Gas Liquids [Member] | Other Southern [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Natural Gas [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9.3 | 9.1 | 24.6 | 39.4 |
Natural Gas [Member] | Williston Basin [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3.3 | 5.5 | 10.9 | 25.5 |
Natural Gas [Member] | Other Northern [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0.1 | 1.2 | 0.4 |
Natural Gas [Member] | Permian Basin [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6 | 3.4 | 12.5 | 7.4 |
Natural Gas [Member] | Other Southern [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0.1 | 0 | 6.1 |
Natural Gas, Gathering, Transportation, Marketing and Processing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Cost of Goods and Services Sold | (16) | (14.2) | (45.6) | (40.7) |
Natural Gas, Gathering, Transportation, Marketing and Processing [Member] | Williston Basin [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Cost of Goods and Services Sold | (9.4) | (7) | (27.3) | (26) |
Natural Gas, Gathering, Transportation, Marketing and Processing [Member] | Other Northern [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 |
Natural Gas, Gathering, Transportation, Marketing and Processing [Member] | Permian Basin [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Cost of Goods and Services Sold | (6.6) | (7.2) | (18.3) | (14.7) |
Natural Gas, Gathering, Transportation, Marketing and Processing [Member] | Other Southern [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Cost of Goods and Services Sold | $ 0 | $ 0 | $ 0 | $ 0 |
Acquisitions & Divestitures Acq
Acquisitions & Divestitures Acquisitions (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Business Acquisition [Line Items] | ||
Payments to acquire oil and gas property | $ 4.1 | $ 3.6 |
Acquisitions & Divestitures Div
Acquisitions & Divestitures Divestitures (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 13.4 | $ 676.5 | ||
Gain (Loss) on Disposition of Oil and Gas Property | $ 0.1 | $ (2.1) | $ 3.8 | 2.5 |
Non-core properties Divestitures [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from Sale of Oil and Gas Property and Equipment | 42.6 | |||
Gain (Loss) on Disposition of Oil and Gas Property | $ 3.5 |
Acquisitions & Divestitures Hay
Acquisitions & Divestitures Haynesville/Cotton Valley Divestiture (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 13.4 | $ 676.5 | |||
Gain (Loss) on Disposition of Oil and Gas Property | $ 0.1 | $ (2.1) | $ 3.8 | 2.5 | |
Haynesville Divestiture [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 633.9 | ||||
Gain (Loss) on Disposition of Oil and Gas Property | (0.3) | $ (1) | $ (4) | ||
Results of Operations, Loss before Income Taxes | $ (0.2) |
Earnings Per Share Components o
Earnings Per Share Components of Basic and Diluted Shares Used In EPS Calculation (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares | 0 | 0 | 0 | 0 |
Weighted-average basic common shares outstanding | 242.3 | 237.9 | 241.2 | 237.7 |
Potential number of shares issuable upon exercise of in-the-money stock options under the Long-Term Stock Incentive Plan | 0 | 0 | 0 | 0 |
Average diluted common shares outstanding | 242.3 | 237.9 | 241.2 | 237.7 |
Asset Retirement Obligations Co
Asset Retirement Obligations Consolidated Balance Sheet Line Items of ARO Liability (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Asset Retirement Obligation Disclosure [Abstract] | |||
Asset retirement obligations, current liability | $ 7.1 | $ 6 | |
Asset retirement obligations | 94.8 | 94.9 | |
Total ARO Liability | $ 101.9 | $ 100.9 | $ 100.9 |
Asset Retirement Obligations As
Asset Retirement Obligations Asset Retirement Obligations ARO Rollforward (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Asset Retirement Obligation Disclosure [Abstract] | |
ARO liability at January 1, 2020 | $ 100.9 |
Accretion | 2.9 |
Additions | 1.1 |
Revisions | (0.5) |
Liabilities settled | (1.1) |
Liabilities related to assets sold | (1.4) |
ARO Liability at June 30, 2020 | $ 101.9 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |
Impairment of Real Estate | $ 5 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Financial Assets | |||
Derivative Asset, Netting Adjustments | [1] | $ (11.6) | $ 0 |
Assets, Fair Value Disclosure | 101.9 | 24.8 | |
Financial liabilities | |||
Derivative Liability, Netting Adjustments | [1] | (11.6) | 0 |
Financial Liabilities Fair Value Disclosure | 36.4 | 46 | |
Rabbi Trust Marketable Securities | 23.6 | 23.1 | |
WRAP Plan Liabilities | 25 | 26.8 | |
Level 1 [Member] | |||
Financial Assets | |||
Assets, Fair Value Disclosure | 23.6 | 23.1 | |
Financial liabilities | |||
Financial Liabilities Fair Value Disclosure | 25 | 26.8 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial Assets | |||
Assets, Fair Value Disclosure | 89.9 | 1.7 | |
Financial liabilities | |||
Financial Liabilities Fair Value Disclosure | 23 | 19.2 | |
Level 3 [Member] | |||
Financial Assets | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Financial liabilities | |||
Financial Liabilities Fair Value Disclosure | 0 | 0 | |
Long-term [Member] | |||
Financial Assets | |||
Derivative Asset, Netting Adjustments | [1] | (0.1) | 0 |
Investments, Fair Value Disclosure | 23.6 | 23.1 | |
Derivative Asset, Net | 0.8 | 0.2 | |
Financial liabilities | |||
Derivative Liability, Netting Adjustments | [1] | (0.1) | 0 |
Fair value of deferred compensation liabilities - long-term | 25 | 26.8 | |
Derivative Liability, Net | 6.7 | 0.5 | |
Long-term [Member] | Level 1 [Member] | |||
Financial Assets | |||
Derivative Asset, Fair Value, Gross | 0 | 0 | |
Financial liabilities | |||
Derivative Liability, Fair Value, Gross | 0 | 0 | |
Long-term [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Financial Assets | |||
Derivative Asset, Fair Value, Gross | 0.9 | 0.2 | |
Financial liabilities | |||
Derivative Liability, Fair Value, Gross | 6.8 | 0.5 | |
Long-term [Member] | Level 3 [Member] | |||
Financial Assets | |||
Derivative Asset, Fair Value, Gross | 0 | 0 | |
Financial liabilities | |||
Derivative Liability, Fair Value, Gross | 0 | 0 | |
Short-term [Member] | |||
Financial Assets | |||
Derivative Asset, Netting Adjustments | [1] | (11.5) | 0 |
Derivative Asset, Net | 77.5 | 1.5 | |
Financial liabilities | |||
Derivative Liability, Netting Adjustments | [1] | (11.5) | 0 |
Derivative Liability, Net | 4.7 | 18.7 | |
Short-term [Member] | Level 1 [Member] | |||
Financial Assets | |||
Derivative Asset, Fair Value, Gross | 0 | 0 | |
Financial liabilities | |||
Derivative Liability, Fair Value, Gross | 0 | 0 | |
Short-term [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Financial Assets | |||
Derivative Asset, Fair Value, Gross | 89 | 1.5 | |
Financial liabilities | |||
Derivative Liability, Fair Value, Gross | 16.2 | 18.7 | |
Short-term [Member] | Level 3 [Member] | |||
Financial Assets | |||
Derivative Asset, Fair Value, Gross | 0 | 0 | |
Financial liabilities | |||
Derivative Liability, Fair Value, Gross | $ 0 | $ 0 | |
[1] | The Company nets its derivative contract assets and liabilities outstanding with the same counterparty on the balance sheets for the contracts that contain netting provisions. Refer to Note 7 – Derivative Contracts for additional information regarding the Company's derivative contracts. |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value and Related Carrying Amount of Certain Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Outstanding debt | $ 1,590.4 | $ 2,015.6 |
Long-term debt, fair value | $ 1,128.4 | $ 2,029.4 |
Derivative Contracts (Narrative
Derivative Contracts (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative [Line Items] | |
Maximum Forecasted Production Covered By Derivatives | 100.00% |
Minimum [Member] | |
Derivative [Line Items] | |
Expected Annual Production Covered By Derivatives | 50.00% |
Maximum [Member] | |
Derivative [Line Items] | |
Expected Annual Production Covered By Derivatives | 75.00% |
Derivative Contracts Schedule O
Derivative Contracts Schedule Of Commodity Derivative Contracts (Details) MMBTU in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)MMBTU$ / MMBTU$ / bbl | ||
Oil Swaps [Member] | Year 2020 [Member] | NYMEX WTI [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3.9 | |
Average Swap Price per Unit | $ | $ 57.60 | |
Oil Swaps [Member] | Year 2020 [Member] | Argus WTI Midland [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0.4 | |
Average Swap Price per Unit | $ | $ 57.30 | |
Oil Swaps [Member] | Year 2021 January - June [Member] | NYMEX WTI [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 5 | |
Average Swap Price per Unit | $ | $ 44.78 | |
Oil Swaps [Member] | Year 2021 July - December [Member] | NYMEX WTI [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 5 | |
Average Swap Price per Unit | $ | $ 42.22 | |
Oil Basis Swaps [Member] | Year 2020 [Member] | NYMEX WTI less Argus WTI Midland [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 1.8 | |
Weighted-Average Differential | $ / MMBTU | 0.22 | |
Oil Basis Swaps [Member] | Year2021 [Member] | NYMEX WTI less Argus WTI Midland [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 4.4 | |
Weighted-Average Differential | $ / MMBTU | 0.99 | |
Gas Swaps [Member] | Year 2020 [Member] | IF Waha [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 3.7 | [1] |
Average Swap Price per Unit | $ | $ 0.97 | [1] |
Gas Swaps [Member] | Year 2020 [Member] | NYMEX HH [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2.8 | |
Average Swap Price per Unit | $ | $ 2.20 | |
Gas Swaps [Member] | Year2021 [Member] | IF Waha [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 18.2 | [1] |
Average Swap Price per Unit | $ | $ 1.92 | [1] |
Gas Swaps [Member] | Year2021 [Member] | NYMEX HH [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 9.1 | |
Average Swap Price per Unit | $ | $ 2.44 | |
Costless Oil Collars [Member] | Year2021 [Member] | NYMEX WTI [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 0.4 | |
Derivative, Average Floor Price | $ / bbl | 40 | |
Derivative, Average Cap Price | $ / bbl | 49.20 | |
[1] | IF Waha Index pricing reported in Platts' Inside FERC's Gas Market Report, reflects the weighted average price of Natural Gas transactions at the Waha Hub in west Texas on the first day of the month. |
Derivative Contracts Gain (Loss
Derivative Contracts Gain (Loss) in Statement of Financial Performance (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
Derivative [Line Items] | ||||||
Realized gain (loss) on commodity derivative contracts not designated as hedging instruments | $ 69.6 | $ (4.9) | $ 232.6 | $ (26.8) | ||
Unrealized gain (loss) on commodity derivative contracts not designated as hedging instruments | (103.8) | 92.3 | 84.4 | (30.8) | ||
Realized and Unrealized Gain (Loss) on Commodity Derivative Contracts Not Designated as Hedging Instruments | (34.2) | 87.4 | 317 | (57.6) | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | (34.2) | 87.4 | 317 | (55.8) | ||
Production [Member] | Oil derivative contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Realized gain (loss) on commodity derivative contracts not designated as hedging instruments | 70.3 | (4.9) | 233.1 | (23.9) | ||
Unrealized gain (loss) on commodity derivative contracts not designated as hedging instruments | (91.7) | 92.3 | 105 | (30.5) | ||
Production [Member] | Gas derivative contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Realized gain (loss) on commodity derivative contracts not designated as hedging instruments | (0.7) | 0 | (0.5) | (2.9) | ||
Unrealized gain (loss) on commodity derivative contracts not designated as hedging instruments | (12.1) | 0 | (20.6) | (0.3) | ||
Haynesville Divestiture [Member] | ||||||
Derivative [Line Items] | ||||||
Unrealized gain (loss) on commodity derivative contracts not designated as hedging instruments | 0 | 0 | 0 | [1] | 1.8 | [1] |
Haynesville Divestiture [Member] | Production [Member] | Gas derivative contracts [Member] | ||||||
Derivative [Line Items] | ||||||
Unrealized gain (loss) on commodity derivative contracts not designated as hedging instruments | $ 0 | $ 0 | $ 0 | $ 1.8 | ||
[1] | During the nine months ended September 30, 2019, the unrealized gains (losses) on commodity derivative contracts related to the Haynesville Divestiture were comprised of derivatives included as part of the Haynesville/Cotton Valley purchase and sale agreement, which were subsequently novated to the buyer upon the closing of the sale in January 2019. Refer to Note 3 – Acquisitions and Divestitures for more information. The unrealized gains (losses) on commodity derivatives associated with the Haynesville Divestiture are offset by an equal amount recorded within "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statements of operations. |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessor, Lease, Description [Line Items] | ||||
Lease, Cost | $ 8.9 | $ 8.7 | $ 28.2 | $ 30.6 |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 6 months | 3 years 4 months 24 days | 3 years 6 months | 3 years 4 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 7.20% | 7.70% | 7.20% | 7.70% |
Property, Plant and Equipment [Member] | ||||
Lessor, Lease, Description [Line Items] | ||||
Lease, Cost | $ 2.1 | $ 2.5 | $ 9.2 | $ 11.3 |
Lease Operating Expense [Member] | ||||
Lessor, Lease, Description [Line Items] | ||||
Lease, Cost | 3.4 | 2.9 | 8.8 | 9 |
Gathering and other expense [Member] | ||||
Lessor, Lease, Description [Line Items] | ||||
Lease, Cost | 1.9 | 2 | 5.7 | 5.8 |
General and Administrative Expense [Member] | ||||
Lessor, Lease, Description [Line Items] | ||||
Lease, Cost | $ 1.5 | $ 1.3 | $ 4.5 | $ 4.5 |
Leases Operating Lease Maturity
Leases Operating Lease Maturity Table (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 6.8 | $ 22.3 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 25 | 20.4 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 17 | 15.9 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 11.4 | 10.6 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 2.3 | 1.4 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 2.6 | 2.4 | |
Operating Leases, Undiscounted Interest | [1] | (7.1) | (10.2) |
Lessee, Operating Lease, Liability, Payments, Due | [2] | 58 | 62.8 |
Current operating lease lease liabilities | 22.6 | 18 | |
Operating lease liabilities | $ 35.4 | $ 44.8 | |
[1] | Calculated using the estimated interest rate for each lease. | ||
[2] | As of September 30, 2020 and December 31, 2019, of the total present value of lease liabilities, $22.6 million and $18.0 million, was recorded in "Current operating lease liabilities", respectively, and $35.4 million and $44.8 million was recorded in "Operating lease liabilities", respectively, on the balance sheets. |
Restructuring Costs Restructuri
Restructuring Costs Restructuring Costs Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | $ 10.4 | $ 1.9 | $ 37.9 | |
Restructuring and Related Cost, Cost Incurred to Date | $ 111.3 | 111.3 | ||
Restructuring Costs, Expected Costs | 0 | |||
General and Administrative Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 10.4 | 1.9 | 36.7 | |
Net gain (loss) from asset sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | 1.4 | |
Interest and other income (expense) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | (0.2) | |
One-time Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 4.3 | 1 | 11 | |
Restructuring and Related Cost, Cost Incurred to Date | 45.6 | 45.6 | ||
Restructuring Costs, Expected Costs | 0 | |||
One-time Termination Benefits [Member] | General and Administrative Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 4.3 | 1 | 10.9 | |
One-time Termination Benefits [Member] | Net gain (loss) from asset sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | 0.1 | |
One-time Termination Benefits [Member] | Interest and other income (expense) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | 0 | |
Lease Termination Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0.6 | |||
Restructuring and Related Cost, Cost Incurred to Date | 1.6 | 1.6 | ||
Restructuring Costs, Expected Costs | 0 | |||
Lease Termination Costs [Member] | General and Administrative Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0.6 | |||
Lease Termination Costs [Member] | Net gain (loss) from asset sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | |||
Lease Termination Costs [Member] | Interest and other income (expense) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | |||
Accelerated Share Based Compensation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 1.6 | 0.5 | 11.3 | |
Restructuring and Related Cost, Cost Incurred to Date | 24.1 | 24.1 | ||
Restructuring Costs, Expected Costs | 0 | |||
Accelerated Share Based Compensation [Member] | General and Administrative Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 1.6 | 0.5 | 9.8 | |
Accelerated Share Based Compensation [Member] | Net gain (loss) from asset sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | 1.5 | |
Accelerated Share Based Compensation [Member] | Interest and other income (expense) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | 0 | |
Retention Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 4.5 | 0.4 | 15.4 | |
Restructuring and Related Cost, Cost Incurred to Date | 38.7 | 38.7 | ||
Restructuring Costs, Expected Costs | 0 | |||
Retention Expense [Member] | General and Administrative Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 4.5 | 0.4 | 15.4 | |
Retention Expense [Member] | Net gain (loss) from asset sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | 0 | |
Retention Expense [Member] | Interest and other income (expense) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | 0 | |
Pension curtailment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | (0.4) | ||
Restructuring and Related Cost, Cost Incurred to Date | 1.3 | $ 1.3 | ||
Restructuring Costs, Expected Costs | $ 0 | |||
Pension curtailment [Member] | General and Administrative Expense [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | 0 | ||
Pension curtailment [Member] | Net gain (loss) from asset sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | 0 | (0.2) | ||
Pension curtailment [Member] | Interest and other income (expense) [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related costs incurred in the period | $ 0 | $ (0.2) |
Restructuring Costs Costs Recog
Restructuring Costs Costs Recognized and Remaining Costs Expected To Be Incurred (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Termination benefits | $ 111.3 |
Restructuring Costs, Expected Costs | 0 |
One-time Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Termination benefits | 45.6 |
Restructuring Costs, Expected Costs | 0 |
Lease Termination Costs [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Termination benefits | 1.6 |
Restructuring Costs, Expected Costs | 0 |
Accelerated Share Based Compensation [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Termination benefits | 24.1 |
Restructuring Costs, Expected Costs | 0 |
Retention Expense [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Termination benefits | 38.7 |
Restructuring Costs, Expected Costs | 0 |
Pension curtailment [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Termination benefits | 1.3 |
Restructuring Costs, Expected Costs | $ 0 |
Restructuring Costs Restructu_2
Restructuring Costs Restructuring Liability (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 0 | $ 7.7 |
Restructuring and Related Cost, Incurred Cost | 1.9 | |
Restructuring Costs, Paid or Settled | (9.6) | |
Restructuring Reserve | 0 | |
One-time Termination Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | 1.2 |
Restructuring and Related Cost, Incurred Cost | 1 | |
Restructuring Costs, Paid or Settled | (2.2) | |
Restructuring Reserve | 0 | |
Lease Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | 0 |
Restructuring and Related Cost, Incurred Cost | 0 | |
Restructuring Reserve | 0 | |
Accelerated Share Based Compensation [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | 0 |
Restructuring and Related Cost, Incurred Cost | 0.5 | |
Restructuring Costs, Paid or Settled | (0.5) | |
Restructuring Reserve | 0 | |
Retention Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | 6.5 |
Restructuring and Related Cost, Incurred Cost | 0.4 | |
Restructuring Costs, Paid or Settled | (6.9) | |
Restructuring Reserve | 0 | |
Pension curtailment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | 0 | $ 0 |
Restructuring and Related Cost, Incurred Cost | 0 | |
Restructuring Costs, Paid or Settled | 0 | |
Restructuring Reserve | $ 0 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,590.4 | $ 2,015.6 |
Principal amount of senior notes outstanding | $ 1,601.9 | |
Senior Notes, stated interest rate, minimum (in hundredths) | 5.25% | |
Senior Notes, stated interest rate, maximim (in hundredths) | 5.625% | |
Senior Note Repurchase Capacity | $ 500 | |
Subsidiary Guarantee Issuance Capacity | 500 | |
Minimum Liquidity Amount | 100 | |
Revolving Credit Facility due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 0 |
Borrowing capacity | 850 | |
Letters of credit outstanding | 11.9 | 2.9 |
Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | 1.5 | |
6.875% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 0 | 382.4 |
Long-term debt, interest rate (in hundredths) | 6.875% | |
5.375% Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 465.1 | 500 |
Long-term debt, interest rate (in hundredths) | 5.375% | |
Extinguishment of Debt, Amount | $ 34.9 | |
Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, interest rate (in hundredths) | 5.25% | |
Extinguishment of Debt, Amount | $ 13.2 | |
Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 500 | $ 500 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gain (Loss) on Extinguishment of Debt, before Write off of Debt Issuance Cost | (19.7) | |
Debt Repurchases [Member] | 6.875% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Extinguishment of Debt, Amount | 107.1 | |
Debt Redemptions [Member] | 6.875% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Extinguishment of Debt, Amount | $ 275.3 |
Debt Schedule of Debt Instrumen
Debt Schedule of Debt Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,590.4 | $ 2,015.6 |
Less unamortized discount | (11.5) | (16.8) |
Debt, Long-term and Short-term, Combined Amount | 1,590.4 | 2,015.6 |
Total long-term debt outstanding | 1,590.4 | 2,015.6 |
Revolving Credit Facility due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 0 |
6.875% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 382.4 |
5.375% Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 465.1 | 500 |
5.25% Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 636.8 | 650 |
Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 500 | $ 500 |
Commitments and Contingencies N
Commitments and Contingencies Narrative (Details) $ in Millions | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency, Estimate of Maximum Possible Loss | $ 10 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 10 | |
Shares available for future grants | 3.6 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Share Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value, grants | $ 2.10 | $ 7.79 |
Unrecognized compensation costs | $ 10.1 | |
Weighted average vesting period | 2 years 1 month 13 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Total fair value of stock that vested during the period | $ 2.5 | $ 29.6 |
Restricted Cash Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs | $ 2.1 | |
Weighted average vesting period | 2 years 6 months | |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ 0.3 | $ 12.1 |
Weighted average grant date fair value, grants | $ 2.17 | $ 7.93 |
Unrecognized compensation costs | $ 2.1 | |
Weighted average vesting period | 2 years 1 month 9 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Restricted Share Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value, grants | $ 2.08 | $ 7.90 |
Unrecognized compensation costs | $ 0.1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Share-Based Compensation Share-
Share-Based Compensation Share-based compensation expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | [1] | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||
Share-based Compensation Expense [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | $ 3.9 | $ 4.1 | [2] | $ 11 | [1] | $ 21 | [2] | |
Noncash Share Based Compensation | 2.9 | 5 | [2] | 9.3 | [1] | 16.2 | [2] | |
Cash Share Based Compensation | 1 | (0.9) | [2] | 1.7 | [1] | 4.8 | [2] | |
Restructuring and related costs incurred in the period | 10.4 | 1.9 | 37.9 | |||||
Stock Options [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | 0 | 0 | [2] | 0 | [1] | 0.3 | [2] | |
Restricted Shares [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | 2.9 | 5 | [2] | 9.3 | [1] | 15.9 | [2] | |
Restricted Cash Awards [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | 0.5 | 0 | [2] | 1.2 | [1] | 0 | [2] | |
Performance Share Units [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | 0.5 | (0.9) | [2] | 0.5 | [1] | 4.6 | [2] | |
Restricted Share Units (RSUs) [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Share-based Payment Arrangement, Expense | $ 0 | 0 | [2] | 0 | [1] | 0.2 | [2] | |
Accelerated Share Based Compensation [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Restructuring and related costs incurred in the period | 1.6 | 0.5 | 11.3 | |||||
Net gain (loss) from asset sales [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Restructuring and related costs incurred in the period | 0 | 0 | 1.4 | |||||
Net gain (loss) from asset sales [Member] | Accelerated Share Based Compensation [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Restructuring and related costs incurred in the period | 0 | 0 | 1.5 | |||||
General and Administrative Expense [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Restructuring and related costs incurred in the period | 10.4 | 1.9 | 36.7 | |||||
General and Administrative Expense [Member] | Accelerated Share Based Compensation [Member] | ||||||||
Share-based Compensation Expense [Line Items] | ||||||||
Restructuring and related costs incurred in the period | $ 1.6 | $ 0.5 | $ 9.8 | |||||
[1] | During the three months ended September 30, 2020, the Company did not incur any costs related to accelerated vesting. During the nine months ended September 30, 2020 the Company incurred $0.5 million of share-based compensation expense related to the acceleration of vesting that occurred as part of the restructuring program and is included in the table above. Refer to Note 9 – Restructuring for additional information.(2)During the three and nine months ended September 30, 2019, the Company recorded $1.6 million and $11.3 million, | |||||||
[2] | During the three and nine months ended September 30, 2019, the Company recorded $1.6 million and $11.3 million, respectively, of share-based compensation expense related to the acceleration of vesting that occurred as part of the restructuring program. Of the $11.3 million recorded during the nine months ended September 30, 2019, $1.5 million was recorded in "Net gain (loss) from asset sales, inclusive of restructuring costs" on the statement of operations and the remaining $9.8 million is included in the table above. Refer to Note 9 – Restructuring for additional information. |
Share-Based Compensation Schedu
Share-Based Compensation Schedule Of Stock Option Transactions (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning of period | 1,802,387 | |
Options canceled | (311,203) | |
Outstanding at end of period | 1,491,184 | |
Options exercisable, shares | 1,491,184 | |
Unvested options, shares | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average exercise price, beginning of year | $ 20.87 | |
Weighted average exercise price, canceled in period | 30.08 | |
Weighted average exercise price, end of year | 18.94 | |
Options exercisable, weighted average exercise price | 18.94 | |
Unvested options, weighted average exercise price | $ 0 | |
Weighted average remaining contractual term, options outstanding | 2 years 7 days | |
Weighted average remaining contractual term, options exercisable | 2 years 7 days | |
Weighted average remaining contractual term, options unvested | 0 years | |
Aggregate intrinsic value, options outstanding | $ 0 | |
Aggregate intrinsic value, options exercisable | 0 | |
Aggregate intrinsic value, options unvested | 0 | |
Income tax effect of compensation plan | $ 1.1 | $ 1 |
Share-Based Compensation Sche_2
Share-Based Compensation Schedule of Restricted Share Awards Transactions (Details) - Restricted Share Awards [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested balance at beginning of period | 2,845,033 | |
Shares granted | 5,080,589 | |
Shares vested | (1,383,618) | |
Shares forfeited | (97,718) | |
Unvested balance at end of period | 6,444,286 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Weighted average grant date fair value, beginning of period | $ 8.67 | |
Weighted average grant date fair value, grants | 2.10 | $ 7.79 |
Weighted average grant date fair value, vested | 9.26 | |
Weighted average grant date fair value, forfeited | 4.91 | |
Weighted average grant date fair value, end of period | $ 3.42 | |
Income tax effect of compensation plan | $ 2.3 | $ 2.1 |
Share-Based Compensation Sche_3
Share-Based Compensation Schedule of Restricted Cash Awards Transactions (Details) - Restricted Cash Awards [Member] | 9 Months Ended |
Sep. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested balance at beginning of period | 0 |
Shares granted | 3,249,925 |
Shares vested | (7,000) |
Shares forfeited | (64,750) |
Unvested balance at end of period | 3,178,175 |
Share-Based Compensation Sche_4
Share-Based Compensation Schedule Of Performance Share Unit Transactions (Details) - Performance Share Units [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ 0.3 | $ 12.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested balance at beginning of period | 625,922 | |
Shares granted | 1,926,026 | |
Shares vested | (96,734) | |
Unvested balance at end of period | 2,455,214 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Weighted average grant date fair value, beginning of period | $ 9.04 | |
Weighted average grant date fair value, grants | 2.17 | $ 7.93 |
Weighted average grant date fair value, vested | 13.06 | |
Weighted average grant date fair value, end of period | $ 3.56 |
Share-Based Compensation Sche_5
Share-Based Compensation Schedule of Restricted Share Unit Transactions (Details) - Restricted Share Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Unvested balance at beginning of period | 34,393 | |
Shares granted | 76,083 | |
Shares vested and paid | (26,770) | |
Unvested balance at end of period | 83,706 | |
Weighted average grant date fair value, beginning of period | $ 8.16 | |
Weighted average grant date fair value, grants | 2.08 | $ 7.90 |
Weighted average grant date fair value, vested | 8.20 | |
Weighted average grant date fair value, end of period | $ 2.62 | |
Unrecognized compensation costs | $ 0.1 |