Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001168054 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-31446 | ||
Entity Registrant Name | CIMAREX ENERGY CO | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 45-0466694 | ||
Entity Address, Address Line One | 1700 Lincoln Street, Suite 3700 | ||
Entity Address, City or Town | Denver | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80203 | ||
City Area Code | 303 | ||
Local Phone Number | 295-3995 | ||
Title of 12(b) Security | Common Stock ($0.01 par value) | ||
Trading Symbol | XEC | ||
Security Exchange Name | NYSE | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,750 | ||
Entity Common Stock, Shares Outstanding | 102,807,656 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 273,145 | $ 94,722 |
Accounts receivable, net of allowance: | ||
Trade | 49,650 | 57,879 |
Oil and gas sales | 271,141 | 384,707 |
Gas gathering, processing, and marketing | 11,694 | 5,998 |
Oil and gas well equipment and supplies | 37,150 | 47,893 |
Derivative instruments | 6,848 | 17,944 |
Prepaid expenses | 7,113 | 10,759 |
Other current assets | 597 | 1,584 |
Total current assets | 657,338 | 621,486 |
Oil and gas properties at cost, using the full cost method of accounting: | ||
Proved properties | 21,281,840 | 20,678,334 |
Unproved properties and properties under development, not being amortized | 1,142,183 | 1,255,908 |
Gross oil and gas properties | 22,424,023 | 21,934,242 |
Less—accumulated depreciation, depletion, amortization, and impairment | (18,987,354) | (16,723,544) |
Net oil and gas properties | 3,436,669 | 5,210,698 |
Fixed assets, net of accumulated depreciation of $455,815 and $389,458, respectively | 436,101 | 519,291 |
Goodwill | 0 | 716,865 |
Derivative instruments | 2,342 | 580 |
Deferred income taxes | 20,472 | 0 |
Other assets | 69,067 | 71,109 |
Total assets | 4,621,989 | 7,140,029 |
Accounts payable: | ||
Trade | 21,902 | 36,280 |
Gas gathering, processing, and marketing | 22,388 | 12,740 |
Accrued liabilities: | ||
Exploration and development | 50,014 | 112,228 |
Taxes other than income | 29,051 | 54,446 |
Other | 201,784 | 252,304 |
Derivative instruments | 145,398 | 16,681 |
Revenue payable | 130,637 | 207,939 |
Operating leases | 59,051 | 66,003 |
Total current liabilities | 660,225 | 758,621 |
Long-term debt: | ||
Principal | 2,000,000 | 2,000,000 |
Less—unamortized debt issuance costs and discounts | (12,701) | (14,754) |
Long-term debt, net | 1,987,299 | 1,985,246 |
Deferred income taxes | 0 | 338,424 |
Asset retirement obligation | 165,595 | 154,045 |
Derivative instruments | 17,749 | 1,018 |
Operating leases | 134,705 | 184,172 |
Other liabilities | 66,181 | 60,742 |
Total liabilities | 3,031,754 | 3,482,268 |
Commitments and contingencies (Note 10) | ||
Redeemable preferred stock - 8.125% Series A Cumulative Perpetual Convertible Preferred Stock, $0.01 par value, 28,165 shares authorized and issued and 62,500 shares authorized and issued, respectively (Note 2) | 36,781 | 81,620 |
Stockholders’ equity: | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 102,866,806 and 102,144,577 shares issued, respectively | 1,029 | 1,021 |
Additional paid-in capital | 3,211,562 | 3,243,325 |
(Accumulated deficit) retained earnings | (1,659,137) | 331,795 |
Total stockholders’ equity | 1,553,454 | 3,576,141 |
Total liabilities and stockholders' equity | $ 4,621,989 | $ 7,140,029 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Financial Position [Abstract] | ||
Fixed assets, accumulated depreciation | $ 455,815 | $ 389,458 |
Redeemable preferred stock dividend rate (as a percent) | 8.125% | |
Redeemable preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Redeemable preferred stock authorized (shares) | 28,165 | 28,165 |
Redeemable preferred stock issued (shares) | 62,500 | 62,500 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 200,000,000 | 200,000,000 |
Common stock issued (shares) | 102,866,806 | 102,144,577 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Total revenues | $ 1,558,595 | $ 2,362,969 | $ 2,339,017 |
Costs and expenses: | |||
Impairment of oil and gas properties | 1,638,329 | 618,693 | 0 |
Depreciation, depletion, and amortization | 695,954 | 882,173 | 590,473 |
Asset retirement obligation | 14,653 | 8,586 | 7,142 |
Impairment of goodwill | 714,447 | 0 | 0 |
Production | 285,324 | 339,941 | 296,189 |
Transportation, processing, and other operating | 213,366 | 238,259 | 211,463 |
Gas gathering and other | 23,591 | 23,294 | 28,327 |
Taxes other than income | 79,699 | 148,953 | 125,169 |
General and administrative | 111,005 | 95,843 | 77,843 |
Stock-based compensation | 29,895 | 26,398 | 22,895 |
Loss (gain) on derivative instruments, net | 35,534 | 76,850 | (85,959) |
Other operating expense, net | 839 | 19,305 | 18,507 |
Total costs and expenses | 3,842,636 | 2,478,295 | 1,292,049 |
Operating (loss) income | (2,284,041) | (115,326) | 1,046,968 |
Other (income) and expense: | |||
Interest expense | 92,914 | 93,386 | 68,224 |
Capitalized interest | (50,030) | (56,232) | (20,855) |
Loss on early extinguishment of debt | 0 | 4,250 | 0 |
Other, net | (540) | (5,741) | (22,908) |
(Loss) income before income tax | (2,326,385) | (150,989) | 1,022,507 |
Income tax (benefit) expense | (358,927) | (26,370) | 230,656 |
Net (loss) income | $ (1,967,458) | $ (124,619) | $ 791,851 |
Earnings (loss) per share to common stockholders: | |||
Basic (USD per share) | $ (19.73) | $ (1.33) | $ 8.32 |
Diluted (USD per share) | $ (19.73) | $ (1.33) | $ 8.32 |
Comprehensive (loss) income: | |||
Net (loss) income | $ (1,967,458) | $ (124,619) | $ 791,851 |
Other comprehensive (loss) income: | |||
Change in fair value of investments, net of tax of $0, $(222), and $(425), respectively | 0 | (755) | (1,444) |
Total comprehensive (loss) income | (1,967,458) | (125,374) | 790,407 |
Oil sales | |||
Revenues: | |||
Total revenues | 999,682 | 1,660,210 | 1,398,813 |
Gas and NGL sales | |||
Revenues: | |||
Total revenues | 513,006 | 661,711 | 898,832 |
Gas gathering and other | |||
Revenues: | |||
Total revenues | 47,842 | 42,454 | 41,180 |
Gas marketing | |||
Revenues: | |||
Total revenues | $ (1,935) | $ (1,406) | $ 192 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Tax on change in fair value of investments | $ 0 | $ (222) | $ (425) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (1,967,458) | $ (124,619) | $ 791,851 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Impairment of oil and gas properties | 1,638,329 | 618,693 | 0 |
Depreciation, depletion, and amortization | 695,954 | 882,173 | 590,473 |
Asset retirement obligation | 14,653 | 8,586 | 7,142 |
Impairment of goodwill | 714,447 | 0 | 0 |
Deferred income taxes | (358,896) | (26,902) | 233,280 |
Stock-based compensation | 29,895 | 26,398 | 22,895 |
Loss (gain) on derivative instruments, net | 35,534 | 76,850 | (85,959) |
Settlements on derivative instruments | 119,247 | (13,131) | (24,429) |
Loss on early extinguishment of debt | 0 | 4,250 | 0 |
Changes in non-current assets and liabilities | 7,189 | (2,797) | (1,779) |
Other, net | 15,305 | 14,639 | 105 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 116,492 | 65,128 | 5,421 |
Other current assets | 5,134 | (739) | (1,957) |
Accounts payable and other current liabilities | (161,658) | (184,563) | 13,951 |
Net cash provided by operating activities | 904,167 | 1,343,966 | 1,550,994 |
Cash flows from investing activities: | |||
Oil and gas capital expenditures | (594,796) | (1,245,457) | (1,540,305) |
Acquisition of oil and gas properties | (11,878) | (288,781) | (26,278) |
Other capital expenditures | (44,302) | (73,693) | (103,459) |
Sales of oil and gas assets | 69,983 | 28,945 | 580,652 |
Sales of other assets | 2,118 | 1,104 | 3,772 |
Net cash used by investing activities | (578,875) | (1,577,882) | (1,085,618) |
Cash flows from financing activities: | |||
Borrowings of long-term debt | 172,000 | 2,619,310 | 0 |
Repayments of long-term debt | (172,000) | (2,990,000) | 0 |
Financing, underwriting, and debt redemption fees | (1,566) | (11,798) | (100) |
Finance lease payments | (4,842) | (3,869) | 0 |
Dividends paid | (92,976) | (81,709) | (55,243) |
Repurchase of redeemable preferred stock | (43,029) | 0 | 0 |
Employee withholding taxes paid upon the net settlement of equity-classified stock awards | (4,456) | (5,229) | (12,142) |
Proceeds from exercise of stock options | 0 | 1,267 | 2,241 |
Net cash used by financing activities | (146,869) | (472,028) | (65,244) |
Net change in cash and cash equivalents | 178,423 | (705,944) | 400,132 |
Cash and cash equivalents at beginning of period | 94,722 | 800,666 | 400,534 |
Cash and cash equivalents at end of period | $ 273,145 | $ 94,722 | $ 800,666 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period (shares) at Dec. 31, 2017 | 95,437 | ||||
Balance at beginning of period at Dec. 31, 2017 | $ 2,568,278 | $ 954 | $ 2,764,384 | $ (199,259) | $ 2,199 |
Increase (Decrease) in Stockholders' Equity | |||||
Dividends paid on stock awards subsequently forfeited | 52 | 34 | 18 | ||
Dividends declared | (64,921) | (15,196) | (49,725) | ||
Net (loss) income | 791,851 | 791,851 | |||
Unrealized change in fair value of investments, net of tax | (1,444) | (1,444) | |||
Issuance of restricted stock awards (shares) | 593 | ||||
Issuance of restricted stock awards | 0 | $ 6 | (6) | ||
Common stock reacquired and retired (shares) | (139) | ||||
Common stock reacquired and retired | (12,142) | $ 0 | (12,142) | ||
Restricted stock forfeited or canceled and retired (shares) | (168) | ||||
Restricted stock forfeited or canceled and retired | 0 | $ (2) | 2 | ||
Exercise of stock options (shares) | 33 | ||||
Exercise of stock options | 2,241 | 2,241 | |||
Stock-based compensation | 45,871 | 45,871 | |||
Balance at end of period (shares) at Dec. 31, 2018 | 95,756 | ||||
Balance at end of period at Dec. 31, 2018 | 3,329,786 | $ 958 | 2,785,188 | 542,885 | 755 |
Increase (Decrease) in Stockholders' Equity | |||||
Dividends paid on stock awards subsequently forfeited | 26 | 8 | 18 | ||
Dividends declared | (81,350) | 61 | (81,411) | ||
Dividends declared on redeemable preferred stock ($81.25 per share) | (5,078) | (5,078) | |||
Net (loss) income | (124,619) | (124,619) | |||
Issuance of stock for Resolute Energy acquisition (Note 13) (shares) | 5,652 | ||||
Issuance of stock for Resolute Energy acquisition (Note 13) | 413,015 | $ 56 | 412,959 | ||
Unrealized change in fair value of investments, net of tax | (755) | (755) | |||
Issuance of restricted stock awards (shares) | 946 | ||||
Issuance of restricted stock awards | 0 | $ 9 | (9) | ||
Common stock reacquired and retired (shares) | (105) | ||||
Common stock reacquired and retired | (5,229) | $ (1) | (5,228) | ||
Restricted stock forfeited or canceled and retired (shares) | (133) | ||||
Restricted stock forfeited or canceled and retired | 0 | $ (1) | 1 | ||
Exercise of stock options (shares) | 29 | ||||
Exercise of stock options | 1,267 | 1,267 | |||
Stock-based compensation | 49,078 | 49,078 | |||
Balance at end of period (shares) at Dec. 31, 2019 | 102,145 | ||||
Balance at end of period at Dec. 31, 2019 | 3,576,141 | $ 1,021 | 3,243,325 | 331,795 | 0 |
Increase (Decrease) in Stockholders' Equity | |||||
Dividends paid on stock awards subsequently forfeited | 156 | 32 | 124 | ||
Dividends declared | (89,987) | (67,658) | (22,329) | ||
Dividends declared on redeemable preferred stock ($81.25 per share) | (4,861) | (3,592) | (1,269) | ||
Return from repurchase of redeemable preferred stock | 1,810 | 1,810 | |||
Net (loss) income | (1,967,458) | (1,967,458) | |||
Unrealized change in fair value of investments, net of tax | 0 | ||||
Issuance of restricted stock awards (shares) | 1,159 | ||||
Issuance of restricted stock awards | 0 | $ 13 | (13) | ||
Common stock reacquired and retired (shares) | (162) | ||||
Common stock reacquired and retired | (4,456) | $ (2) | (4,454) | ||
Restricted stock forfeited or canceled and retired (shares) | (275) | ||||
Restricted stock forfeited or canceled and retired | 0 | $ (3) | 3 | ||
Stock-based compensation | 42,109 | 42,109 | |||
Balance at end of period (shares) at Dec. 31, 2020 | 102,867 | ||||
Balance at end of period at Dec. 31, 2020 | $ 1,553,454 | $ 1,029 | $ 3,211,562 | $ (1,659,137) | $ 0 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividends declared (USD per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.16 | $ 0.16 | $ 0.88 | $ 0.80 | $ 0.68 |
Dividends declared per preferred share (USD per share) | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 81.25 | $ 81.25 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cimarex Energy Co., a Delaware corporation, is an independent oil and gas exploration and production company. Our operations are located entirely within the United States of America, mainly in Texas, New Mexico, and Oklahoma. Basis of Presentation Our Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. Our significant accounting policies are discussed below. The accounts of Cimarex and its subsidiaries are presented in the accompanying Consolidated Financial Statements. All intercompany accounts and transactions were eliminated in consolidation. Certain amounts in the prior year financial statements have been reclassified to conform to the 2020 financial statement presentation. Segment Information We have determined that our business is comprised of only one segment because our gathering, processing, and marketing activities are ancillary to our oil and gas production operations. Use of Estimates The preparation of our financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. Areas of significance requiring the use of management’s judgments include the estimation of proved oil and gas reserves used in calculating depletion, the estimation of future net revenues used in computing ceiling test limitations, the estimation of future abandonment obligations used in recording asset retirement obligations, and the assessment of goodwill. Estimates and judgments also are required in determining allowances for credit losses, impairments of unproved properties and other assets, valuation of deferred tax assets, fair value measurements, lease liabilities, and contingencies. We analyze our estimates and base them on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The process of estimating quantities of oil and gas reserves is complex, requiring judgment and interpretation in the evaluation of all available geological, geophysical, engineering, and economic data. The data for a given field may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history, and continual reassessment of the viability of production under varying economic conditions. As a result, material revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure that our reserve estimates represent the most accurate assessments possible, subjective decisions, and available data for our various fields make these estimates generally less precise than other estimates included in financial statement disclosures. Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and investments readily convertible into cash, which have original maturities of three months or less. Cash equivalents are stated at cost, which approximates market value. Oil and Gas Well Equipment and Supplies Our oil and gas well equipment and supplies are valued at the lower of cost and net realizable value, where net realizable value is based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Declines in the price of oil and gas well equipment and supplies in future periods could cause us to recognize impairments on these assets. An impairment would not affect cash flow from operating activities, but would adversely affect our net income and stockholders’ equity. Oil and Gas Properties We use the full cost method of accounting for our oil and gas operations. All costs associated with property acquisition, exploration, and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities, and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the acquisition, exploration, and development of properties, as well as other internal costs that can be directly identified with acquisition, exploration and development activities, are also capitalized. Under the full cost method of accounting, no gain or loss is recognized upon the disposition of oil and gas properties unless such disposition would significantly alter the relationship between capitalized costs and proved reserves. Expenditures for maintenance and repairs are charged to production expense in the period incurred. Under the full cost method of accounting, we are required to perform quarterly ceiling test calculations to test our oil and gas properties for possible impairment. If the net capitalized cost of our oil and gas properties, as adjusted for income taxes, exceeds the ceiling limitation, the excess is charged to expense. The ceiling limitation is equal to the sum of: (i) the present value discounted at 10% of estimated future net revenues from proved reserves, (ii) the cost of properties not being amortized, and (iii) the lower of cost or estimated fair value of unproven properties included in the costs being amortized, as adjusted for income taxes. We currently do not have any unproven properties that are being amortized. Estimated future net revenues are determined based on trailing twelve-month average commodity prices and estimated proved reserve quantities, operating costs, and capital expenditures. During the years ended December 31, 2020 and 2019, we recognized ceiling test impairments totaling $1.64 billion and $618.7 million, respectively. The impairments resulted primarily from the impact of decreases in the 12-month average trailing prices for oil, natural gas, and NGLs as well as significant basis differentials utilized in determining the estimated future net cash flows from proved reserves. We did not recognize a ceiling test impairment during the year ended December 31, 2018 because the net capitalized cost of our oil and gas properties, as adjusted for income taxes, did not exceed the ceiling limitation. The quarterly ceiling test is primarily impacted by commodity prices, changes in estimated reserve quantities, reserves produced, overall exploration and development costs, depletion expense, and deferred taxes. If pricing conditions decline, or if there is a negative impact on one or more of the other components of the calculation, we may incur full cost ceiling test impairments in future quarters. The calculated ceiling limitation is not intended to be indicative of the fair market value of our proved reserves or future results. Impairment charges do not affect cash flow from operating activities, but do adversely affect our net income and various components of our balance sheet. Any impairment of oil and gas properties is not reversible at a later date. Depletion of proved oil and gas properties is computed on the units-of-production method, whereby capitalized costs, including future development costs and asset retirement costs, are amortized over total estimated proved reserves. Changes in our estimate of proved reserve quantities and impairment of oil and gas properties will cause corresponding changes in depletion expense in periods subsequent to these changes. The capitalized costs of unproved properties, including those in wells in progress, are excluded from the costs being amortized. We do not have major development projects that are excluded from costs being amortized. On a quarterly basis, we evaluate excluded costs for inclusion in the costs to be amortized. Significant unproved properties are evaluated individually. Unproved properties that are not considered individually significant are aggregated for evaluation purposes and related costs are transferred to the costs to be amortized quarterly based on the application of historical factors. Fixed Assets Fixed assets consist primarily of gas gathering and plant facilities, water infrastructure, vehicles, airplanes, office furniture, and computer equipment and software. These items are recorded at cost and are depreciated on the straight-line method based on expected lives of the individual assets, which range from 3 to 30 years. Also included in Fixed assets are operating lease right-of-use assets. See Note 10 for additional information regarding our leases. Goodwill Goodwill represents the excess of the purchase price of business combinations over the fair value of the net assets acquired and is tested for impairment at least annually. In performing the goodwill test, we compare the fair value of our reporting unit with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized in the amount of this excess, limited to the total amount of goodwill allocated to that reporting unit. We evaluate our goodwill for impairment in the fourth quarter of each year and whenever events or changes in circumstances indicate the possibility that goodwill may be impaired. Based upon our assessment as of October 31, 2019, goodwill was not impaired. However, during the three months ended March 31, 2020 the company’s market capitalization declined significantly, caused by macroeconomic and geopolitical conditions including the collapse of oil prices driven by surplus supply and decreased demand caused by the COVID-19 pandemic. In addition, the uncertainty related to oil demand significantly impacted our investment and operating decisions. As a result, we concluded that a triggering event had occurred and we performed an interim quantitative impairment test for goodwill as of March 31, 2020. As a result of that quantitative impairment test, which utilized quoted market prices for our common stock as a basis for determining the fair value of our reporting unit, we concluded that goodwill was fully impaired at March 31, 2020. The following table reflects components of the change in the carrying amount of goodwill for the year ended December 31, 2020: (in thousands) Year Ended Goodwill balance at January 1, 2020 $ 716,865 Resolute acquisition purchase price adjustments (Note 13) (2,418) Impairment (714,447) Goodwill balance at December 31, 2020 $ — Revenue Recognition Oil, Gas, and NGL Sales Revenue is recognized from the sales of oil, gas, and NGLs when the customer obtains control of the product, when we have no further obligations to perform related to the sale, and when collectability is probable. All of our sales of oil, gas, and NGLs are made under contracts with customers, which typically include variable consideration based on monthly pricing tied to local indices and monthly volumes delivered. The nature of our contracts with customers does not require us to constrain that variable consideration or to estimate the amount of transaction price attributable to future performance obligations for accounting purposes. As of December 31, 2020, we had open contracts with customers with terms of one month to multiple years, as well as “evergreen” contracts that renew on a periodic basis if not canceled by us or the customer. Performance obligations under our contracts with customers are typically satisfied at a point-in-time through monthly delivery of oil, gas, and/or NGLs. Our contracts with customers typically require payment within one month of delivery. Our gas is sold under various contracts. Under these contracts the gas and its components, including residue gas and NGLs, may be sold to a single purchaser or separate purchasers. Regardless of the contract, we are compensated for the value of the residue gas and NGLs at current market prices for each product. Depending on the specific contract terms, certain gathering, treating, transportation, processing, and other charges may be deducted against the prices we receive for the products. Our oil typically is sold at specific delivery points under contract terms that are common in our industry. Gas Gathering When we transport, process, and/or market third-party gas associated with our equity gas, we recognize revenue for the fees charged to third-parties for such services. Gas Marketing When we market and sell gas for other working interest owners, we act as agent under short-term sales and supply agreements and may earn a fee for such services. Revenues from such services are recognized as gas is delivered. Gas Imbalances Revenue from the sale of gas is recorded on the basis of gas actually sold by or for us. If our aggregate sales volumes for a well are greater (or less) than our proportionate share of production from the well, a liability (or receivable) is established to the extent there are insufficient proved reserves available to make-up the overproduced (or underproduced) imbalance. Imbalances have not been significant in the periods presented. General and Administrative Expenses General and administrative expenses are reported net of amounts reimbursed to us by other working interest owners of the oil and gas properties we operate and net of amounts capitalized pursuant to the full cost method of accounting. General and administrative expense for the year ended December 31, 2020 included $28.7 million in severance expense associated with the voluntary early retirement incentive program that we offered to employees who met certain eligibility criteria in the first quarter of 2020 and the involuntary reduction in workforce program that we carried out in the third quarter of 2020. All of the expense for these programs was recognized in 2020. The remaining liability for these programs at December 31, 2020 is $11.3 million. The majority of this amount will be paid out in 2021, with the final payments expected to be made in 2022. Derivatives Our derivative contracts are recorded on the balance sheet at fair value. Our firm sales contracts qualify for the normal purchase and normal sale exception. Contracts that qualify for this treatment do not require mark-to-market accounting treatment. See Note 4 for additional information regarding our derivative instruments. Income Taxes We record deferred tax assets and liabilities to account for the expected future tax consequences of events that have been recognized in the financial statements and tax returns. We classify all deferred tax assets and liabilities as non-current. We routinely assess the realizability of our deferred tax assets. Numerous judgments and assumptions are inherent in this assessment, including the determination of future taxable income, which is affected by factors such as future operating conditions (particularly as related to prevailing oil and gas prices) and changing tax laws. If we conclude that it is more likely than not that some or all of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. We regularly assess and, if required, establish accruals for tax contingencies that could result from assessments of additional tax by taxing jurisdictions where the company operates. See Note 9 for additional information regarding our income taxes. Contingencies A provision for contingencies is charged to expense when the loss is probable and the cost can be reasonably estimated. Determining when expenses should be recorded for these contingencies and the appropriate amounts for accrual is a complex estimation process that includes subjective judgment. In many cases, this judgment is based on interpretation of laws and regulations, which can be interpreted differently by regulators and/or courts of law. We closely monitor known and potential legal, environmental, and other contingencies and determine when we should record losses for these items based on information available to us. See Note 10 for additional information regarding our contingencies. Asset Retirement Obligations We recognize the present value of the fair value of liabilities for retirement obligations associated with tangible long-lived assets in the period in which there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The liability includes costs related to the plugging and abandonment of wells, the removal of facilities and equipment, and site restorations. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and are depleted or depreciated as applicable. Subsequent to initial measurement at present value, a period-to-period increase in the carrying amount of the liability is recognized as accretion expense, which represents the effect of the passage of time on the amount of the liability. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement capitalized cost. The current portion of our asset retirement obligations is recorded in “Accrued liabilities — Other” in the accompanying Consolidated Balance Sheets and cash payments for settlements of retirement obligations are classified as cash used in operating activities in the accompanying Consolidated Statements of Cash Flows. See Note 8 for additional information regarding our asset retirement obligations. Stock-based Compensation We grant various types of stock-based awards including equity-classified awards such as stock options, restricted stock (including awards with service-based vesting and market condition-based vesting provisions), restricted stock units, and liability-classified awards such as cash-settled phantom stock. We recognize compensation cost related to equity-classified awards based on the estimated grant date fair value of the awards. The grant date fair value of stock option awards is determined using the Black-Scholes option pricing model. The grant date fair value of service-based restricted stock and units is the closing market price of our common stock on the grant date. The grant date fair value of the market condition-based restricted stock incorporates the effect of the market condition using a multiple probability simulation model. Compensation cost related to equity-classified awards is recognized ratably over the applicable vesting period. We recognize compensation cost related to liability-classified awards over the applicable vesting period based on an estimated fair value that is remeasured each reporting period using a multiple probability simulation model. To the extent compensation cost relates to employees directly involved in oil and gas acquisition, exploration, and development activities, such amounts are capitalized to oil and gas properties. Amounts not capitalized to oil and gas properties are recognized as stock-based compensation expense. See Note 6 for additional information regarding our stock-based compensation. Earnings (Loss) per Share We calculate earnings (loss) per share recognizing that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are “participating securities” and, therefore, should be included in computing earnings per share using the two-class earnings allocation method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Our unvested share-based payment awards, consisting of restricted stock and units, qualify as participating securities. Our participating securities do not have a contractual obligation to share in the losses of the entity and, therefore, net losses are not allocated to them. See Note 7 for additional information regarding our earnings per share. Lease Accounting In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (“Topic 842”). The FASB subsequently issued various ASUs that provided additional implementation guidance. Topic 842 requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for contracts that provide lessees with the right to control the use of identified assets for a period of time. The scope of Topic 842 excludes leases to explore for or use minerals, oil, natural gas, and similar nonregenerative resources. We adopted Topic 842 effective January 1, 2019, using the modified retrospective method applied to all leases that existed on that date, which resulted in the recognition of lease liabilities of $276.9 million and right-of-use assets of $265.0 million. In connection with adoption we made use of the following practical expedients, which are provided in Topic 842: • a package of practical expedients to not reassess: 1) whether expired or existing contracts are or contain a lease, 2) lease classification for expired or existing leases, and 3) initial direct costs for existing leases; • an election not to apply the recognition requirements in Topic 842 to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that the company is reasonably certain to exercise); • a practical expedient that permits combining lease and nonlease components in a contract and accounting for the combination as a lease (elected by asset class); and • a practical expedient to not reassess certain land easements in existence prior to January 1, 2019. |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Authorized capital stock consists of 200 million shares of common stock and 15 million shares of preferred stock. At December 31, 2020, there were 102.9 million shares of common stock and 28.2 thousand shares of preferred stock outstanding. Redeemable Preferred Stocks In February 2019, our Board of Directors created a new series of preferred stock, par value $0.01 per share, designated as 8.125% Series A Cumulative Perpetual Convertible Preferred Stock (the “Preferred Stock”) and authorized 62.5 thousand shares. In March 2019, in conjunction with the Resolute acquisition (see Note 13), we issued all of these shares of Preferred Stock. Prior to this issuance, we had not issued any preferred stock. Holders of the Preferred Stock are entitled to receive, when, as, and if declared by the Board out of funds of Cimarex legally available for payment, cumulative cash dividends at the annual rate of 8.125% of each share’s liquidation preference of $1,000. Dividends on the Preferred Stock are payable quarterly in arrears and accumulate from the most recent date as to which dividends have been paid. In the event of any liquidation, winding up, or dissolution of Cimarex, whether voluntary or involuntary, each holder will be entitled to receive in respect of its shares and to be paid out of the assets of Cimarex legally available for distribution to its stockholders, after satisfaction of liabilities to Cimarex’s creditors and any senior stock (of which there is currently none) and before any payment or distribution is made to holders of junior stock (including common stock), the liquidation preference of $1,000 per share, with the total liquidation preference at December 31, 2020 being $28.2 million in the aggregate. Each holder has the right at any time, at its option, to convert any or all of such holder’s shares of Preferred Stock at an initial conversion rate of 8.0421 shares of fully paid and nonassessable shares of our common stock and $471.40 in cash per share of Preferred Stock. The initial conversion rate of 8.0421 adjusts upon the occurrence of certain events, including the payment of cash dividends to common shareholders, and is 8.38732 as of December 31, 2020. Additionally, at any time on or after October 15, 2021, we shall have the right, at our option, if the closing sale price of our common stock meets certain criteria, to elect to cause all, and not part, of the outstanding shares of Preferred Stock to be automatically converted into that number of shares of Cimarex common stock for each share of Preferred Stock equal to the conversion rate in effect on the mandatory conversion date as such terms are defined in the Certificate of Designations for the Preferred Stock and $471.40 in cash per share of Preferred Stock. We also have the right at any time to repurchase shares of Preferred Stock through privately negotiated transactions. As a result of the cash redemption features included in the Preferred Stock conversion option, with such conversion not solely within our control, the instruments are classified as “Redeemable preferred stock” in temporary equity on the Consolidated Balance Sheets. In December 2020, we repurchased 34.3 thousand shares of Preferred Stock, leaving 28.2 thousand shares of 8.125% Series A Cumulative Perpetual Convertible Preferred Stock authorized and issued at December 31, 2020. The book value of the repurchased shares exceeded the aggregate amount Cimarex paid to repurchase the shares by $1.8 million. That amount has been treated as a return from the holders of the Preferred Stock and recorded as an increase to additional paid-in capital (similar to the treatment of dividends declared, which are recorded as a reduction of additional paid-in capital). Dividends Common Stock A quarterly cash dividend has been paid on our common stock every quarter since the first quarter of 2006. In each quarter of 2020, a $0.22 per common share dividend was declared. In each quarter of 2019 a $0.20 per common share dividend was declared. A dividend of $0.18 per common share was declared in both the third and fourth quarters of 2018 and a dividend of $0.16 per common share was declared in both the first and second quarters of 2018. Dividends are paid in the quarter following the quarter of declaration. At December 31, 2020, we had dividends payable to common stockholders of $22.9 million that was included in “Accrued liabilities — Other”. Dividends declared are recorded as a reduction of retained earnings to the extent retained earnings are available at the close of the period prior to the date of the declared dividend. Dividends in excess of retained earnings are recorded as a reduction of additional paid-in capital. Nonforfeitable dividends paid on stock awards that subsequently forfeit are reclassified out of retained earnings or additional paid-in capital, as applicable, to compensation expense in the period in which the stock award forfeitures occur. Dividends accrued and unpaid on performance stock awards that are canceled upon completion of the vesting period due to the market condition not being met, are reversed out of retained earnings or additional paid-in capital, as applicable, in the period in which the stock award cancellations occur. Future dividend payments will depend on our level of earnings, financial requirements, and other factors considered relevant by our Board of Directors. Preferred Stock In each quarter of 2020 and 2019 our Board of Directors declared a cash dividend of $20.3125 per share of Preferred Stock. Dividends are paid in the quarter following the quarter of declaration. At December 31, 2020, we had dividends payable to preferred stockholders of $0.6 million that was included in “Accrued liabilities — Other”. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt at December 31, 2020 and 2019 consisted of the following: December 31, 2020 December 31, 2019 (in thousands) Principal Unamortized Long-term Principal Unamortized Long-term 4.375% notes due 2024 $ 750,000 $ (2,672) $ 747,328 $ 750,000 $ (3,535) $ 746,465 3.90% notes due 2027 750,000 (5,541) 744,459 750,000 (6,289) 743,711 4.375% notes due 2029 500,000 (4,488) 495,512 500,000 (4,930) 495,070 Total long-term debt $ 2,000,000 $ (12,701) $ 1,987,299 $ 2,000,000 $ (14,754) $ 1,985,246 ________________________________________ (1) The 4.375% notes due 2024 were issued at par , therefore, the amounts shown in the table are for unamortized debt issuance costs only. At December 31, 2020, the unamortized debt issuance costs and discount related to the 3.90% notes due 2027 were $4.3 million and $1.3 million, respectively. At December 31, 2020, the unamortized debt issuance costs and discount related to the 4.375% notes due 2029 were $3.9 million and $0.6 million, respectively. At December 31, 2019, the unamortized debt issuance costs and discount related to the 3.90% notes due 2027 were $4.8 million and $1.5 million, respectively. At December 31, 2019, the unamortized debt issuance costs and discount related to the 4.375% notes due 2029 were $4.3 million and $0.6 million, respectively. Bank Debt On June 3, 2020, we entered into the First Amendment to Amended and Restated Credit Agreement (the “First Amendment”) dated as of February 5, 2019 for our senior unsecured revolving credit facility (“Credit Facility”). The Credit Facility has aggregate commitments of $1.25 billion with an option for us to increase the aggregate commitments to $1.5 billion, and matures on February 5, 2024. There is no borrowing base subject to the discretion of the lenders based on the value of our proved reserves under the Credit Facility. The First Amendment, among other things: (i) allows up to $3.5 billion of non-cash impairment charge add-backs to Shareholders’ Equity for covenant calculation purposes, (ii) institutes traditional anti-cash hoarding provisions (if borrowings are outstanding under the Credit Facility) at a consolidated cash threshold of $175.0 million, (iii) reduces the priority lien debt basket from 15% of Consolidated Net Tangible Assets (as defined in the credit agreement) to a $50.0 million cap, and (iv) adds an acknowledgement and consent to European Union bail-in legislation. As of December 31, 2020, we had no bank borrowings outstanding under the Credit Facility, but did have letters of credit of $2.5 million outstanding, leaving an unused borrowing availability of $1.248 billion. During the year ended December 31, 2020, we borrowed and repaid an aggregate of $172.0 million on the Credit Facility to meet cash requirements as needed. At our option, borrowings under the Credit Facility may bear interest at either (a) LIBOR (or an alternate rate determined by the administrative agent for the Credit Facility in accordance with the Credit Facility when LIBOR is no longer available) plus 1.125 - 2.0% based on the credit rating for our senior unsecured long-term debt, or (b) a base rate (as defined in the credit agreement) plus 0.125 - 1.0%, based on the credit rating for our senior unsecured long-term debt. Unused borrowings are subject to a commitment fee of 0.125 - 0.35%, based on the credit rating for our senior unsecured long-term debt. The Credit Facility contains representations, warranties, covenants, and events of default that are customary for investment grade, senior unsecured bank credit agreements, including a financial covenant for the maintenance of a defined total debt-to-capitalization ratio of no greater than 65%. As of December 31, 2020, we were in compliance with all of the financial covenants. At December 31, 2020 and 2019, we had $4.3 million and $4.0 million, respectively, of unamortized debt issuance costs associated with our Credit Facility, which were recorded as assets and included in “Other assets” in our Consolidated Balance Sheets. During the year ended December 31, 2020, we incurred $1.5 million in fees paid to the lenders and third-party costs for the First Amendment. The debt issuance costs are being amortized to interest expense ratably over the life of the Credit Facility. Senior Notes On March 8, 2019, we issued $500.0 million aggregate principal amount of 4.375% senior unsecured notes at 99.862% of par to yield 4.392% per annum. The notes are due March 15, 2029 and interest is payable semiannually on March 15 and September 15. The effective interest rate on these notes, including the amortization of debt issuance costs and discount, is 4.50%. In April 2017, we issued $750.0 million aggregate principal amount of 3.90% senior unsecured notes at 99.748% of par to yield 3.93% per annum. These notes are due May 15, 2027 and interest is payable semiannually on May 15 and November 15. The effective interest rate on these notes, including the amortization of debt issuance costs and discount, is 4.01%. In June 2014, we issued $750.0 million aggregate principal amount of 4.375% senior unsecured notes at par. These notes are due June 1, 2024 and interest is payable semiannually on June 1 and December 1. The effective interest rate on these notes, including the amortization of debt issuance costs, is 4.50%. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS We periodically use derivative instruments to mitigate volatility in commodity prices. While the use of these instruments limits the downside risk of adverse price changes, their use may also limit future cash flow from favorable price changes. Depending on changes in oil and gas futures markets and management’s view of underlying supply and demand trends, we may increase or decrease our derivative positions from current levels. As of December 31, 2020, we have entered into oil and gas collars, oil basis swaps, and oil “roll differential” swaps. Under our collars, we receive the difference between the published index price and a floor price if the index price is below the floor price or we pay the difference between the ceiling price and the index price if the index price is above the ceiling price. No amounts are paid or received if the index price is between the floor and the ceiling prices. By using a collar, we have fixed the minimum and maximum prices we can receive on the underlying production. Our basis swaps are settled based on the difference between a published index price plus or minus a fixed differential, as applicable, and the applicable local index price under which the underlying production is sold. By using a basis swap, we have fixed the differential between the published index price and certain of our physical pricing points. For our Permian oil production, the basis swaps fix the price differential between the WTI NYMEX (Cushing, Oklahoma) price and the WTI Midland price. For our Permian and Mid-Continent gas production, the contract prices in our collars are consistent with the index prices used to sell our production. Our roll differential swaps are settled based on the difference between the monthly roll differential and a fixed price per Bbl. The monthly roll differential is calculated as the sum of 2/3 of the difference in the WTI NYMEX closing settlement price for the first nearby month futures contract minus the second nearby month futures contract and 1/3 of the difference in the WTI NYMEX calendar month average price and the physical crude oil delivery month price. The following tables summarize our outstanding derivative contracts as of December 31, 2020: Oil Collars First Second Third Fourth Total 2021: WTI (1) Volume (Bbls) 3,600,000 3,094,000 3,680,000 3,680,000 14,054,000 Weighted Avg Price - Floor $ 38.06 $ 34.62 $ 34.65 $ 34.65 $ 35.52 Weighted Avg Price - Ceiling $ 46.45 $ 43.28 $ 44.37 $ 44.37 $ 44.66 2022: WTI (1) Volume (Bbls) 2,340,000 1,729,000 920,000 — 4,989,000 Weighted Avg Price - Floor $ 37.31 $ 38.16 $ 40.00 $ — $ 38.10 Weighted Avg Price - Ceiling $ 48.41 $ 49.56 $ 49.19 $ — $ 48.95 ________________________________________ (1) The index price for these collars is West Texas Intermediate (“WTI”) as quoted on the New York Mercantile Exchange (“NYMEX”). Gas Collars First Second Third Fourth Total 2021: PEPL (1) Volume (MMBtu) 9,000,000 9,100,000 8,280,000 8,280,000 34,660,000 Weighted Avg Price - Floor $ 1.83 $ 1.89 $ 2.00 $ 2.00 $ 1.93 Weighted Avg Price - Ceiling $ 2.23 $ 2.28 $ 2.42 $ 2.42 $ 2.33 Perm EP (2) Volume (MMBtu) 6,300,000 7,280,000 6,440,000 6,440,000 26,460,000 Weighted Avg Price - Floor $ 1.50 $ 1.62 $ 1.86 $ 1.86 $ 1.71 Weighted Avg Price - Ceiling $ 1.79 $ 1.92 $ 2.22 $ 2.22 $ 2.03 Waha (3) Volume (MMBtu) 8,100,000 9,100,000 8,280,000 8,280,000 33,760,000 Weighted Avg Price - Floor $ 1.52 $ 1.61 $ 1.82 $ 1.82 $ 1.69 Weighted Avg Price - Ceiling $ 1.83 $ 1.93 $ 2.17 $ 2.17 $ 2.03 2022: PEPL (1) Volume (MMBtu) 5,400,000 1,820,000 — — 7,220,000 Weighted Avg Price - Floor $ 2.13 $ 2.40 — — $ 2.20 Weighted Avg Price - Ceiling $ 2.55 $ 2.86 — — $ 2.63 Perm EP (2) Volume (MMBtu) 3,600,000 1,820,000 — — 5,420,000 Weighted Avg Price - Floor $ 2.13 $ 2.40 — — $ 2.22 Weighted Avg Price - Ceiling $ 2.53 $ 2.88 — — $ 2.65 Waha (3) Volume (MMBtu) 5,400,000 1,820,000 — — 7,220,000 Weighted Avg Price - Floor $ 1.98 $ 2.40 — — $ 2.09 Weighted Avg Price - Ceiling $ 2.39 $ 2.86 — — $ 2.50 ________________________________________ (1) The index price for these collars is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (2) The index price for these collars is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (3) The index price for these collars is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC. Oil Basis Swaps First Second Third Fourth Total 2021: WTI Midland (1) Volume (Bbls) 2,790,000 3,003,000 3,220,000 3,220,000 12,233,000 Weighted Avg Differential (2) $ 0.03 $ (0.02) $ (0.08) $ (0.08) $ (0.04) 2022: WTI Midland (1) Volume (Bbls) 1,980,000 1,365,000 644,000 — 3,989,000 Weighted Avg Differential (2) $ 0.25 $ 0.31 $ 0.38 $ — $ 0.29 ________________________________________ (1) The index price we pay under these basis swaps is WTI Midland as quoted by Argus Americas Crude. (2) The index price we receive under these basis swaps is WTI as quoted on the NYMEX plus or minus, as applicable, the weighted average differential shown in the table. Oil Roll Differential Swaps First Second Third Fourth Total 2021: WTI (1) Volume (Bbls) 630,000 1,001,000 1,656,000 1,656,000 4,943,000 Weighted Avg Price $ (0.24) $ (0.22) $ (0.10) $ (0.10) $ (0.14) 2022: WTI (1) Volume (Bbls) 1,620,000 1,001,000 644,000 — 3,265,000 Weighted Avg Price $ (0.10) $ (0.01) $ 0.10 $ — $ (0.03) ________________________________________ (1) The index price used to determine the settlement “roll” is WTI as quoted on the NYMEX. Derivative Gains and Losses Net gains and losses on our derivative instruments are a function of fluctuations in the underlying commodity index prices as compared to the contracted prices and the monthly cash settlements (if any) of the instruments. We have elected not to designate our derivatives as hedging instruments for accounting purposes and, therefore, we do not apply hedge accounting treatment to our derivative instruments. Consequently, changes in the fair value of our derivative instruments and cash settlements on the instruments are included as a component of operating costs and expenses as either a net gain or loss on derivative instruments. Cash settlements of our contracts are included in cash flows from operating activities in our statements of cash flows. The following table presents the components of “Loss (gain) on derivative instruments, net” for the periods indicated. Years Ended December 31, (in thousands) 2020 2019 2018 Decrease (increase) in fair value of derivative instruments, net: Gas contracts $ 56,475 $ (13,114) $ 15,742 Oil contracts 98,306 76,833 (126,130) 154,781 63,719 (110,388) Cash (receipts) payments on derivative instruments, net: Gas contracts (15,476) (40,114) (13,794) Oil contracts (103,771) 53,245 38,223 (119,247) 13,131 24,429 Loss (gain) on derivative instruments, net $ 35,534 $ 76,850 $ (85,959) Derivative Fair Value Our derivative contracts are carried at their fair value on our balance sheet using Level 2 inputs and are subject to master netting arrangements, which allow us to offset recognized asset and liability fair value amounts on contracts with the same counterparty. Our accounting policy is to not offset asset and liability positions in our balance sheets. The following tables present the amounts and classifications of our derivative assets and liabilities as of December 31, 2020 and 2019, as well as the potential effect of netting arrangements on our recognized derivative asset and liability amounts. December 31, 2020 (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ 5,425 $ — Gas contracts Current assets — Derivative instruments 1,423 — Gas contracts Non-current assets — Derivative instruments 2,342 — Oil contracts Current liabilities — Derivative instruments — 106,507 Gas contracts Current liabilities — Derivative instruments — 38,891 Oil contracts Non-current liabilities — Derivative instruments — 12,526 Gas contracts Non-current liabilities — Derivative instruments — 5,223 Total gross amounts presented in the balance sheet 9,190 163,147 Less: gross amounts not offset in the balance sheet (8,863) (8,863) Net amount $ 327 $ 154,284 December 31, 2019 (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ 1,624 $ — Gas contracts Current assets — Derivative instruments 16,320 — Oil contracts Non-current assets — Derivative instruments 580 — Oil contracts Current liabilities — Derivative instruments — 16,681 Oil contracts Non-current liabilities — Derivative instruments — 824 Gas contracts Non-current liabilities — Derivative instruments — 194 Total gross amounts presented in the balance sheet 18,524 17,699 Less: gross amounts not offset in the balance sheet (9,865) (9,865) Net amount $ 8,659 $ 7,834 We are exposed to financial risks associated with our derivative contracts from non-performance by our counterparties. We mitigate our exposure to any single counterparty by contracting with a number of financial institutions, each of which has a high credit rating and is a member of our bank credit facility. Our member banks do not require us to post collateral for our derivative liability positions, nor do we require our counterparties to post collateral for our benefit. In the future we may enter into derivative instruments with counterparties outside our bank group to obtain competitive terms and to spread counterparty risk. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Authoritative accounting guidance has established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs are the highest priority and consist of unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable. The following table provides fair value measurement information for certain assets and liabilities as of December 31, 2020 and 2019. December 31, 2020 December 31, 2019 (in thousands) Book Value Fair Value Book Value Fair Value Financial Assets (Liabilities): 4.375% Notes due 2024 $ (750,000) $ (818,025) $ (750,000) $ (792,225) 3.90% Notes due 2027 $ (750,000) $ (826,575) $ (750,000) $ (778,050) 4.375% Notes due 2029 $ (500,000) $ (567,250) $ (500,000) $ (530,400) Derivative instruments — assets $ 9,190 $ 9,190 $ 18,524 $ 18,524 Derivative instruments — liabilities $ (163,147) $ (163,147) $ (17,699) $ (17,699) Assessing the significance of a particular input to the fair value measurement requires judgment, including the consideration of factors specific to the asset or liability. The fair value (Level 1) of our fixed rate notes was based on quoted market prices. The fair value of our derivative instruments (Level 2) was estimated using discounted cash flow and option pricing models. These models use certain observable variables including forward prices, volatility curves, interest rates, and credit ratings and spreads. The fair value estimates are adjusted relative to non-performance risk as appropriate. See Note 4 for further information on the fair value of our derivative instruments. Other Financial Instruments The carrying amounts of our cash, cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value because of the short-term maturities and/or liquid nature of these assets and liabilities. Included in “Accrued liabilities — Other” at December 31, 2020 are: (i) accrued operating expenses (e.g. production, transportation, and midstream expenses) of approximately $67.4 million and (ii) accrued general and administrative costs of approximately $46.8 million, which consisted primarily of $34.1 million in regular payroll-related costs and $11.3 million in voluntary early retirement incentive program and involuntary reduction in workforce severance accruals. Included in “Accrued liabilities — Other” at December 31, 2019 are: (i) accrued operating expenses (e.g. production, transportation, and midstream expenses) of approximately $74.7 million and (ii) accrued general and administrative costs, primarily payroll-related, of approximately $43.3 million. Most of our accounts receivable balances are uncollateralized and result from transactions with other companies in the oil and gas industry. Concentration of customers may impact our overall credit risk because our customers may be similarly affected by changes in economic or other conditions within the industry. We conduct credit analyses prior to making any sales to new customers or increasing credit for existing customers and may require parent company guarantees, letters of credit, or prepayments when deemed necessary. For properties we operate, we have the right to realize amounts due to us from non-operators by netting the non-operators’ share of production revenues from those properties. We routinely assess the recoverability of all material accounts receivable and accrue a reserve to the allowance for credit losses based on our estimation of expected losses over the life of the receivables. At December 31, 2020 and 2019, the allowance for credit losses totaled $2.6 million and $3.6 million, respectively. Major Customers In each of the years ended December 31, 2020, 2019, and 2018, we made sales to two customers that each amounted to 10% or more of our consolidated revenues for the respective year. Sales to those two customers accounted for 26% and 23%, respectively, of our consolidated revenues in 2020, 29% and 25%, respectively, of our consolidated revenues in 2019, and 21% and 23%, respectively, of our consolidated revenues in 2018. If any one of our major customers were to stop purchasing our production, we believe there are a number of other purchasers to whom we could sell our production. If multiple significant customers were to discontinue purchasing our production, we believe there could be some initial challenges, but we have ample alternative markets to handle any sales disruption. |
STOCK-BASED AND OTHER COMPENSAT
STOCK-BASED AND OTHER COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
STOCK-BASED AND OTHER COMPENSATION | STOCK-BASED AND OTHER COMPENSATION Equity Incentive Plan Our 2019 Equity Incentive Plan (the “2019 Plan”) was approved by stockholders in May 2019. Outstanding awards under previous plans were not impacted, but no additional awards will be made under the previous plans. A total of 6.3 million shares of common stock may be issued under the 2019 Plan, including shares available from the previous plans. The 2019 Plan provides for grants of options, stock appreciation rights, restricted stock, restricted stock units, performance stock units, cash awards, and other stock-based awards. Stock-based Compensation Cost We have recognized stock-based compensation cost as shown below. Historical amounts may not be representative of future amounts as the value of future awards may vary from historical amounts. Years Ended December 31, (in thousands) 2020 2019 2018 Restricted stock awards: Performance stock awards $ 17,338 $ 21,590 $ 23,083 Service-based stock awards 26,014 25,611 20,385 43,352 47,201 43,468 Stock option awards 1,460 1,903 2,456 Total stock-based compensation cost 44,812 49,104 45,924 Less amounts capitalized to oil and gas properties (14,917) (22,706) (23,029) Stock-based compensation expense $ 29,895 $ 26,398 $ 22,895 Periodic stock-based compensation expense will fluctuate based on the grant date fair value of awards, the number of awards, the requisite service period of the awards, employee forfeitures, and the timing of the awards. Our acco unting policy is to account for forfeitures in compensation cost when they occur. To the extent compensation cost relates to employees directly involved in oil and gas acquisition, exploration, and development activities, such amounts are capitalized to oil and gas properties. The amount capitalized to oil and gas properties decreased as a percentage of total stock-based compensation cost in 2020 as compared to 2019 and 2018 due to reduced acquisition, exploration, and development activities in 2020 as a result of the low oil prices and demand destruction experienced in 2020 stemming from the COVID-19 pandemic and OPEC and other countries’ actions. The decreased capitalization caused the overall stock-based compensation expense to increase. Restricted Stock The following table provides information about restricted stock awards granted during the last three years. Years Ended December 31, 2020 2019 2018 Number Weighted Number Weighted Number Weighted Performance stock awards 311,974 $ 29.84 264,393 $ 47.66 123,533 $ 90.26 Service-based stock awards 846,918 $ 35.54 681,988 $ 45.88 469,438 $ 81.29 Total restricted stock awards 1,158,892 $ 34.01 946,381 $ 46.38 592,971 $ 83.16 Performance stock awards are granted to eligible executives and are subject to service and market condition-based vesting determined by our stock price performance relative to defined peer groups’ stock price performance. The performance stock awards granted in 2018 and 2019 are equity-classified awards and after three years of continued service, an executive will be entitled to vest in 0% to 200% of the award depending on our stock price performance, with the vested amount paid in shares. For the performance stock awards granted in 2020, after three years of continued service, an executive will be entitled to vest in 0% to 200% of the award depending on our stock price performance, with the vested amount up to 100% paid in shares and any vested amount above 100% paid in cash. The share-settled portion of these awards are equity-classified awards and the cash-settled portion of these awards are liability-classified awards. We recognize compensation cost related to the equity-classified portion of performance stock awards ratably over the applicable vesting period based on the estimated grant date fair value of the awards, which is calculated using a multiple probability simulation model incorporating the effect of the market condition. We recognize compensation cost related to the liability-classified portion of performance stock awards over the applicable vesting period based on an estimated fair value that is remeasured each reporting period using a multiple probability simulation model incorporating the effect of the market condition. In accordance with Internal Revenue Code Section 162(m), certain of the amounts awarded may not be deductible for tax purposes. Service-based stock awards are granted to eligible employees and non-employee directors and have vesting schedules ranging from one The following table provides information on restricted stock activity during the year. Service-based Performance Number of Weighted Number of Weighted Outstanding as of January 1, 2020 1,639,069 $ 74.51 664,977 $ 72.99 Vested (237,616) $ 94.23 (205,746) $ 82.83 Granted 846,918 $ 35.54 311,974 $ 29.84 Canceled (1) — $ — (119,521) $ 89.46 Forfeited (155,450) $ 78.43 — $ — Outstanding as of December 31, 2020 2,092,921 $ 56.21 651,684 $ 46.20 ________________________________________ (1) These performance shares were canceled since the market condition was not satisfied as of the end of the performance period. The total vest date market value of restricted stock that vested during the years ended December 31, 2020, 2019, and 2018 was $12.0 million, $15.1 million, and $34.1 million, respectively. Unrecognized compensation cost related to equity-classified unvested restricted stock at December 31, 2020 was approximately $84.2 million. We expect to recognize this cost over a weighted average period of 2.6 years. As of December 31, 2020, the fair value of the unvested liability-classified performance stock awards was $3.5 million and the associated vested liability was $70 thousand. The vested liability is included in “Other liabilities”. Restricted Units As of December 31, 2020 and 2019, we had 8,838 restricted units outstanding. These represent restricted units held by a non-employee director who has elected to defer payment of common stock represented by the units until termination of his service on the Board of Directors. Stock Options Options outstanding as of December 31, 2020 expire seven years from the grant date and have service-based vesting whereby the awards vest in increments of one-third, generally on each of the first three We recognize compensation cost related to options based on the estimated grant date fair value of the award and it is recognized ratably over the applicable vesting period. We estimate the grant date fair value using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of our common stock. We also use historical data to estimate the expected years until exercise. We use U.S. Treasury bond rates in effect at the grant date for our risk-free interest rates. The following table provides information regarding options granted during the last three years, including the assumptions used to determine the fair value of those options. Years Ended December 31, 2020 2019 2018 Options granted 194,900 132,900 92,050 Weighted average grant date fair value $ 12.61 $ 12.14 $ 26.71 Weighted average exercise price $ 34.06 $ 42.78 $ 83.28 Total fair value (in thousands) $ 2,458 $ 1,613 $ 2,458 Expected years until exercise 4.9 4.9 5.0 Expected stock volatility 53.9 % 37.1 % 34.7 % Dividend yield 2.6 % 1.9 % 0.9 % Risk-free interest rate 0.4 % 1.4 % 2.7 % The following table provides information regarding outstanding stock options as of December 31, 2020 and changes during the year. Number of Options Weighted Weighted Aggregate Outstanding as of January 1, 2020 495,538 $ 87.17 Exercised — $ — Granted 194,900 $ 34.06 Canceled (107,025) $ 94.29 Forfeited (36,036) $ 55.69 Outstanding as of December 31, 2020 547,377 $ 68.94 4.6 years $ 711 Exercisable as of December 31, 2020 271,827 $ 99.38 3.0 years $ — The following table provides information regarding options exercised and the grant date fair value of options vested. Years Ended December 31, (in thousands) 2020 2019 2018 Cash received from option exercises $ — $ 1,267 $ 2,241 Intrinsic value of options exercised $ — $ 425 $ 1,030 Grant date fair value of options vested $ 1,855 $ 2,262 $ 2,547 The following table provides information regarding non-vested stock options as of December 31, 2020 and changes during the year. Number of Options Weighted Weighted Non-vested as of January 1, 2020 208,255 $ 17.60 $ 58.47 Vested (91,569) $ 20.26 $ 66.47 Granted 194,900 $ 12.61 $ 34.06 Forfeited (36,036) $ 16.74 $ 55.69 Non-vested as of December 31, 2020 275,550 As of December 31, 2020, there was $3.2 million of unrecognized compensation cost related to non-vested stock options. We expect to recognize that cost over a weighted average period of 2.2 years. Other Compensation We maintain and sponsor a contributory 401(k) plan for our employees. Employer contributions related to the plan were $8.2 million, $8.7 million, and $13.1 million for 2020, 2019, and 2018, respectively. Employer discretionary contributions were included in the 2018 amount. No such employer discretionary contributions were accrued for 2020 or 2019. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The calculations of basic and diluted net earnings (loss) per common share under the two-class method are presented below. Earnings (loss) per share are based on actual figures rather than the rounded figures presented. Year Ended December 31, 2020 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (1,967,458) Plus: return from repurchase of redeemable preferred stock 1,810 Less: dividends attributable to participating securities (1) (1,808) Less: redeemable preferred stock dividends (4,861) Basic loss per share Loss available to common stockholders (1,972,317) 99,952 $ (19.73) Effects of dilutive securities Dilutive securities (2) — — Diluted loss per share Loss available to common stockholders and assumed conversions $ (1,972,317) 99,952 $ (19.73) Year Ended December 31, 2019 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (124,619) Less: dividends attributable to participating securities (1) (1,519) Less: redeemable preferred stock dividends (5,078) Basic loss per share Loss available to common stockholders (131,216) 98,789 $ (1.33) Effects of dilutive securities Dilutive securities (2) — — Diluted loss per share Loss available to common stockholders and assumed conversions $ (131,216) 98,789 $ (1.33) Year Ended December 31, 2018 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 791,851 Less: dividends and net income attributable to participating securities (11,087) Basic earnings per share Income available to common stockholders 780,764 93,793 $ 8.32 Effects of dilutive securities Dilutive securities (2) 3 27 Diluted earnings per share Income available to common stockholders and assumed conversions $ 780,767 93,820 $ 8.32 ________________________________________ (1) Participating securities do not have a contractual obligation to share in the losses of the entity, therefore, net losses are not attributable to participating securities. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The following table reflects the components of the change in the carrying amount of the asset retirement obligation for the years ended December 31, 2020 and 2019. (in thousands) 2020 2019 Asset retirement obligation at January 1, $ 181,869 $ 166,904 Liabilities incurred 4,491 21,511 Liability settlements and disposals (21,922) (19,595) Accretion expense 7,485 7,499 Revisions of estimated liabilities 5,944 5,550 Asset retirement obligation at December 31, 177,867 181,869 Less current obligation 12,272 27,824 Long-term asset retirement obligation $ 165,595 $ 154,045 Liabilities incurred during the year ended December 31, 2019 included $9.4 million for the Resolute acquisition. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of our provision for income taxes were as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Current taxes: Federal benefit $ (198) $ — $ (3,007) State expense 167 532 383 (31) 532 (2,624) Deferred taxes: Federal (benefit) expense (323,597) (24,055) 211,717 State (benefit) expense (35,299) (2,847) 21,563 (358,896) (26,902) 233,280 $ (358,927) $ (26,370) $ 230,656 Federal income tax expense (benefit) for the years presented differs from the amounts that would be provided by applying the U.S. federal income tax rate, primarily due to the effect of state income taxes, non-deductible expenses, changes in tax laws and tax rates enacted in the period, and changes in valuation allowances. Reconciliations of the income tax (benefit) expense calculated at the federal statutory rate of 21% to the total income tax (benefit) expense are as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Provision at statutory rate $ (488,541) $ (31,708) $ 214,726 Effect of state taxes (29,467) (1,717) 18,795 Acquisition-related costs — 1,318 — Tax credits and other permanent differences 1,365 2,548 1,583 Change in valuation allowance, net (4,221) — (1,376) Stock-based compensation 11,903 3,189 (3,072) Goodwill impairment 150,034 — — Income tax (benefit) expense $ (358,927) $ (26,370) $ 230,656 The components of net deferred taxes are as follows: December 31, (in thousands) 2020 2019 Assets: Stock-based compensation and other accrued amounts $ 59,659 $ 31,521 Net operating loss and other carryforwards, net of valuation allowance 456,613 454,743 Credit carryforward, net of valuation allowance 4,223 3,936 520,495 490,200 Liabilities: Property, plant and equipment (500,023) (828,624) Net deferred tax assets (liabilities) $ 20,472 $ (338,424) On March 1, 2019, we completed the acquisition of Resolute. For federal income tax purposes, the acquisition was a tax-free merger whereby Cimarex acquired carryover tax basis in Resolute’s tax assets and liabilities. See Note 13 for more information regarding the purchase price allocation. The net deferred tax liability recorded in connection with the acquisition includes certain deferred tax assets net of valuation allowances. The acquired tax attributes include federal net operating loss, capital loss, and enhanced oil recovery tax credit carryforwards. Since the acquisition resulted in a greater than 50% ownership change in Resolute, the tax attributes Cimarex acquired from Resolute are subject to limitation pursuant to Section 382 of the Internal Revenue Code. Our ability to utilize the Resolute net operating losses (“NOLs”) and other tax attributes acquired is limited to an annual amount calculated at acquisition plus any net unrealized built-in gains recognized within five years of the ownership change. The annual limitation amount is $19.6 million. The estimated net unrealized built-in gain at December 31, 2019 of $253.9 million was increased to $291.0 million at December 31, 2020, pursuant to filed returns and changes in estimates. As of December 31, 2019, the acquired Resolute federal NOLs were reduced by a $57.6 million valuation allowance. As a result of the increase in the estimated net unrealized built-in gain and the utilization of $13.5 million of Resolute’s Section 382 limited tax attributes in Cimarex’s 2019 federal income tax return, the valuation allowance was reduced to $34.0 million at December 31, 2020. A full valuation allowance remains on the Resolute acquired capital loss carryforward of $67.2 million and enhanced oil recovery credit carryforwards of $4.0 million to reflect the expected tax effect of the Section 382 limitation. The Resolute federal NOLs will begin to expire in 2033. At December 31, 2020, we had a U.S. net tax operating loss carryforward (including Resolute) of approximately $1.997 billion, $1.773 billion of which is subject to expiration in years 2032 through 2037 and $224.4 million of which is not subject to expiration. We believe that the carryforward, net of valuation allowance, will be utilized before it expires. At December 31, 2020, we recorded a $1.7 million increase to the valuation allowance related to state net operating losses. The total valuation allowance on state net operating losses at December 31, 2020 was $120.7 million since it is not more likely than not that these additional state net operating losses will be utilized before they expire. We also had enhanced oil recovery and marginal well credits of $4.2 million at December 31, 2020. When assessing the need for a valuation allowance against a deferred tax asset, both positive and negative evidence is considered when determining the ability to utilize our deferred tax assets. Based on our estimate of the timing of future reversals of existing taxable temporary differences, our estimate of future taxable income exclusive of reversing temporary differences and carryforwards, the length of time before the deferred tax assets associated with the net operating loss carryovers begin to expire, and tax planning strategies that could be implemented to accelerate taxable amounts to utilize expiring carryovers, we believe it is more likely than not that the benefit from the deferred tax asset recorded in the financial statements will be realized. We will continue to assess all available positive and negative evidence to estimate whether sufficient future taxable income will be generated in order to utilize the deferred tax assets. Additional valuation allowances may be required in future periods if additional losses are incurred or other circumstances change. At December 31, 2020 and 2019, we had no unrecognized tax benefits that would impact our effective rate and we have made no provisions for interest or penalties related to uncertain tax positions. The tax years 2017 through 2019 remain open to examination by the Internal Revenue Service of the United States. We file tax returns with various state taxing authorities which remain open to examination for tax years 2016 through 2019. We do not anticipate the need for any significant income tax payments in the near term. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Lease Commitments Effective January 1, 2019, we began accounting for leases in accordance with Topic 842, which requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for contracts that provide lessees with the right to control the use of identified assets for periods of greater than 12 months. Prior to January 1, 2019, we accounted for leases in accordance with ASC Topic 840, Leases , under which operating leases were not recorded on the balance sheet. Real Estate Leases We have operating leases for office space in various locations that provide us the right to control the use of the specified office space over the term of the contract. These leases require us to make monthly “base rent” payments, as well as “additional payments” for our share of operating expenses and taxes incurred by the landlord. At our option, the terms of these leases can be renewed for varying periods, and in some cases may be terminated early at our option. As of December 31, 2020, these leases had remaining lease terms ranging from 3.4 to 5.7 years. These leases do not contain residual value guarantees, options to purchase the underlying office space, or terms or covenants that impose restrictions on our ability to pay dividends, incur debt, or enter into additional leases. We have no subleases of office space. Lease liabilities associated with our real estate leases were recorded at the present value of the estimated future lease payments, after considering the following: • “Base rent” payments are considered fixed lease payments, while “additional payments” are considered variable lease payments. • At commencement of each real estate lease we were not reasonably certain to exercise the option to renew or terminate such lease. • The discount rate used to calculate each lease liability was based on our incremental borrowing rate, which was estimated utilizing trading metrics for our senior unsecured notes as adjusted using relevant market factors to develop a synthetic secured yield curve. • As an accounting policy we have elected not to separate nonlease components from lease components for our real estate class of assets. • Where applicable, we determined that the effect of accounting for the right to use land separately from other lease components would be insignificant. Production-Related Leases We have operating leases for equipment used in connection with our oil and gas production operations, including well-head compressors, pipeline compressors, and artificial lift mechanisms. These leases provide us the right to control the use of explicitly or implicitly identified equipment during the term of the contract. These leases often include an “evergreen” provision that allows the contract term to continue on a month-to-month basis following expiration of the initial term stated in the contract. As of December 31, 2020, these leases had remaining lease terms ranging from one month to 10.4 years. These leases require us to make monthly payments of fixed amounts, which cover the cost of renting the equipment and, in some cases, the cost of maintaining the leased equipment. These leases do not typically require us to make variable lease payments. These leases do not contain residual value guarantees, options to purchase the underlying equipment, or terms or covenants that impose restrictions on our ability to pay dividends, incur debt, or enter into additional leases. We have no subleases of production-related equipment. Lease liabilities associated with our production-related operating leases were recorded at the present value of the estimated future lease payments, after considering the following: • For leases with an evergreen provision, the term of the lease was determined to be the noncancellable period in the contract plus the period beyond the noncancellable period that we believe it is reasonably certain we will need the equipment for operational purposes, limited to the point in time at which both we and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty. • The discount rate used to calculate each lease liability was based on our incremental borrowing rate, which was estimated utilizing trading metrics for our senior unsecured notes as adjusted using relevant market factors to develop a synthetic secured yield curve. • As an accounting policy, we have elected not to separate nonlease components from lease components for our production-related class of assets. We have one finance lease, which results from a gathering agreement (the “Gathering Agreement”) on a gathering system. Under terms of the Gathering Agreement, we have the option to acquire a portion of the underlying gathering system upon termination of the Gathering Agreement. We make monthly payments under the Gathering Agreement based on the volume of oil gathered and a gathering rate per barrel, which is adjusted periodically. As of December 31, 2020, this lease had a remaining term of 4.7 years. Exploration and Development-Related Leases We have operating leases for equipment used in connection with our exploration and development activities, including drilling rigs, pressure pumping equipment, directional drilling tools, well-control devices, and various pieces of support equipment. These leases provide us the right to control the use of explicitly or implicitly identified equipment during the term of the contract. As of December 31, 2020, these leases had remaining lease terms of 12 months or less. These leases typically require us to make payments in amounts based on the usage of the underlying equipment. These leases do not contain residual value guarantees, options to purchase the underlying equipment, or terms or covenants that impose restrictions on our ability to pay dividends, incur debt, or enter into additional leases. We have no subleases of exploration and development-related equipment. As an accounting policy, we have elected not to apply the recognition requirements of Topic 842 to our exploration and development-related class of assets with lease terms at commencement of 12 months or less. As such, we have not recorded any lease liabilities associated with our exploration and development-related leases. In addition, as an accounting policy we have elected not to separate nonlease components from lease components for our exploration and development-related class of assets. Balance Sheet Presentation The following tables present the amounts and classifications of our estimated right-of-use assets, net and lease liabilities as of December 31, 2020 and 2019: December 31, (in thousands) Balance Sheet Location 2020 2019 Operating lease right-of-use assets Non-current assets — Fixed assets, net $ 185,118 $ 240,263 Finance lease right-of-use asset Non-current assets — Other assets 25,052 24,849 Total right-of-use assets $ 210,170 $ 265,112 December 31, (in thousands) Balance Sheet Location 2020 2019 Operating lease liabilities — current Current liabilities — Operating leases $ 59,051 $ 66,003 Operating lease liabilities — non-current Non-current liabilities — Operating leases 134,705 184,172 Finance lease liability — current Current liabilities — Accrued liabilities — Other 7,099 7,328 Finance lease liability — non-current Non-current liabilities — Other liabilities 19,731 18,749 Total lease liabilities $ 220,586 $ 276,252 Lease Cost and Cash Flows The following table summarizes estimated total lease cost, which includes amounts recognized in income and amounts capitalized for the indicated periods: Years Ended December 31, (in thousands) 2020 2019 Finance lease cost: Amortization of right-of-use asset $ 5,286 $ 4,385 Interest on lease liability 1,663 1,719 Operating lease cost: Production expense (1) 19,914 20,965 Transportation, processing, and other operating (1) 21,386 17,264 Gas gathering and other expense (1) 991 5,607 General and administrative expense (2) 12,701 12,421 Short-term lease cost (3) 235,840 539,110 Total lease cost $ 297,781 $ 601,471 ________________________________________ (1) Operating lease cost in the table above is composed of costs incurred under production-related leases. These costs are included in the indicated captions on the Consolidated Statements of Operations and Comprehensive Income (Loss). (2) Operating lease cost in the table above is composed of costs incurred under real estate leases. A majority of these costs are included in the indicated caption on the Consolidated Statements of Operations and Comprehensive Income (Loss). A portion of these costs are capitalized as part of proved properties on the Consolidated Balance Sheets. These costs include variable lease costs of $3.2 million and $3.1 million for the years ended December 31, 2020 and 2019, respectively. (3) Short-term lease cost in the table above is composed of costs incurred under leases with terms of 12 months or less for right-of-use assets used in exploration and development activities. Payments under such leases are typically based on usage of the underlying right-of-use asset and, therefore, are also variable lease costs. These costs are capitalized as part of proved properties on the Consolidated Balance Sheets. The following table summarizes estimated cash paid for our leases for the indicated periods: Years Ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash outflows from finance lease $ 4,842 $ 3,869 Operating cash outflows from operating leases $ 53,066 $ 54,044 Cash paid for short-term leases and variable lease payments: Operating cash outflows from operating leases $ 3,169 $ 3,103 Investing cash outflows from operating leases $ 235,024 $ 551,325 During the years ended December 31, 2020 and 2019, we recognized $42.7 million and $91.7 million, respectively, in right-of-use assets in connection with new operating leases entered into during the period. The following table presents the weighted-average remaining lease terms and discount rates of our leases as of the indicated dates: December 31, 2020 2019 Weighted-average remaining lease term (in years): Finance lease 4.7 5.9 Operating leases 3.9 4.1 Weighted-average discount rate: Finance lease 6.3 % 5.7 % Operating leases 5.0 % 3.9 % Lease Liability Maturity Analysis The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities recorded at December 31, 2020: December 31, 2020 (in thousands) Operating Leases Finance Lease January 1, 2021 — December 31, 2021 $ 67,330 $ 7,618 January 1, 2022 — December 31, 2022 61,595 6,666 January 1, 2023 — December 31, 2023 41,567 6,340 January 1, 2024 — December 31, 2024 21,259 6,015 January 1, 2025 — December 31, 2025 8,438 3,829 Remaining periods 14,695 — Total undiscounted future cash flows 214,884 30,468 Less effects of discounting (21,128) (3,638) Lease liabilities recognized $ 193,756 $ 26,830 Other Commitments At December 31, 2020, we had estimated commitments of approximately: (i) $224.2 million to finish drilling, completing, or performing other work on wells and various other infrastructure projects in progress and (ii) $4.3 million to finish midstream construction in progress. At December 31, 2020, we had firm sales contracts to deliver approximately 470.3 Bcf of gas over the next 10.5 years. If we do not deliver this gas, our estimated financial commitment, calculated using the January 2021 index prices, would be approximately $908.1 million. The value of this commitment will fluctuate due to price volatility and actual volumes delivered. In connection with gas gathering and processing agreements, we have volume commitments over the next 8.0 years. If we do not deliver the committed gas or NGLs, as applicable, the estimated maximum amount that would be payable under these commitments, calculated as of December 31, 2020, would be approximately $640.7 million. We have minimum volume delivery commitments associated with agreements to reimburse connection costs to various pipelines. If we do not deliver this gas or oil, as applicable, the estimated maximum amount that would be payable under these commitments, calculated as of December 31, 2020, would be approximately $104.7 million. Of this total, we have accrued a liability of $4.3 million representing the estimated amount we will have to pay due to insufficient forecasted volumes at particular connection points. At December 31, 2020, we have various firm transportation agreements for gas pipeline capacity with end dates ranging from 2021 - 2025 under which we will have to pay an estimated $16.6 million over the remaining terms of the agreements. We have minimum volume water delivery commitments associated with a water services agreement, which ends in 2030, that was entered into in connection with the sale of certain water infrastructure assets in Eddy County, New Mexico (see Note 13). If we do not deliver the water volumes, the estimated maximum amount that would be payable under this commitment, calculated as of December 31, 2020, would be approximately $64.1 million. All of the noted commitments were routine and made in the ordinary course of our business. Litigation In the ordinary course of business, we are involved with various litigation matters. When a loss contingency exists, we assess whether it is probable that an asset has been impaired or a liability has been incurred and, if so, we determine if the amount of loss can be reasonably estimated, all in accordance with authoritative accounting guidance, and adjust our accruals accordingly. Though some of the related claims may be significant, we believe the resolution of them, individually or in the aggregate, would not have a material adverse effect on our financial condition or results of operations after consideration of current accruals. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSHelmerich & Payne, Inc. (“H&P”) provides contract drilling services to Cimarex. Cimarex incurred drilling costs of approximately $24.9 million, $72.8 million, and $80.1 million related to these services during the years ended December 31, 2020, 2019, and 2018, respectively. The amounts incurred in the years ended December 31, 2020 and 2019 are included in the short-term lease costs disclosed in Note 10. Hans Helmerich, a director of Cimarex, is Chairman of the Board of Directors of H&P. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Years Ended December 31, (in thousands) 2020 2019 2018 Cash paid during the period for: Interest expense (net of capitalized amounts of $48,306, $49,944, and $19,969, respectively) (1) $ 41,407 $ 50,601 $ 45,357 Income taxes $ 300 $ 1,364 $ — Cash received for income tax refunds $ 2,118 $ 2,033 $ 760 ________________________________________ (1) The year ended December 31, 2019 includes $17.6 million in interest paid upon the redemption of Resolute’s senior notes and credit facility on March 1, 2019. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES On August 31, 2018, we closed on the divestiture of oil and gas properties principally located in Ward County, Texas for which we received $534.6 million in net cash proceeds in 2018, as adjusted for customary closing adjustments to reflect an effective date of April 1, 2018 and transaction costs. This divestiture did not significantly alter the relationship between capitalized costs and proved reserves, therefore, in accordance with the full cost method of accounting, no gain or loss was recognized. On September 30, 2020, we closed on the sale of certain water infrastructure assets in Eddy County, New Mexico, for which we received net cash proceeds of $68.7 million during 2020, as adjusted for customary closing adjustments and transaction costs. We will be entitled to additional future cash payments from the buyer upon the delivery of certain rights-of-way and if water volumes delivered by Cimarex or third parties meet certain thresholds during the 10 years following the date of sale. See Note 10 for more information on this sale. On March 1, 2019, we completed the acquisition of Resolute Energy Corporation, an independent oil and gas company focused on the acquisition and development of unconventional oil and gas properties in the Delaware Basin area of the Permian Basin of west Texas. The principal factors considered by management in making this acquisition included: (i) our expectation that Resolute’s assets’ returns would be competitive with those in our existing portfolio, (ii) the opportunity to apply our experience and learnings from already operating in this area to generating productivity gains from Resolute’s properties, (iii) the ability to increase our acreage position in the Delaware Basin, and (iv) the expectation that the acquisition would be financially accretive. We acquired 100% of the outstanding common shares and voting interests of Resolute in a cash and stock transaction. The acquisition date fair value of the consideration transferred totaled $820.3 million, which consisted of cash, common stock, and a newly created series of preferred stock (see Note 2 for more information on the preferred stock) as follows: (in thousands) Fair Value of Consideration Transferred Cash $ 325,677 Common stock (5,652 shares issued) 413,015 Preferred stock (63 shares issued) 81,620 $ 820,312 The fair value of the common stock issued as part of the consideration was determined on the basis of the closing market price of Cimarex common stock on the acquisition date. The fair value of the preferred stock issued as part of the consideration was determined using a multiple probability simulation model. Purchase Price Allocation The Resolute acquisition has been accounted for as a business combination, using the acquisition method. The following table presents the allocation of the Resolute purchase price to the identifiable assets acquired and liabilities assumed based on the fair values at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired recorded to goodwill. The table also presents the adjustments made to the purchase price allocation during the 12-month period following the acquisition date. The purchase price allocation was finalized during the three months ended March 31, 2020. The most significant adjustment was made to reduce the fair value of the unproved oil and gas properties acquired by $30.3 million based on the finalization of the quantity of acres acquired. The tax effect of this adjustment reduced the related deferred income taxes by $6.9 million. The completion of the final Resolute tax returns provided the underlying tax basis of Resolute’s assets and liabilities and net operating losses and resulted in a reduction of the deferred tax liability of $24.4 million. The remaining adjustments were related to finalization of working capital balances. The offset to all of the adjustments was goodwill. The following table sets forth the purchase price allocation: (in thousands) March 1, 2019 Adjustments March 1, 2020 Cash $ 41,236 $ — $ 41,236 Accounts receivable 50,739 11,521 62,260 Other current assets 13,280 (1,176) 12,104 Proved oil and gas properties 692,600 — 692,600 Unproved oil and gas properties 1,054,200 (30,314) 1,023,886 Fixed assets 5,355 (32) 5,323 Goodwill 107,341 (13,126) 94,215 Other assets 142 — 142 Current liabilities (202,735) 1,790 (200,945) Long-term debt (870,000) — (870,000) Deferred income taxes (62,409) 31,337 (31,072) Asset retirement obligation (9,437) — (9,437) Total identifiable net assets $ 820,312 $ — $ 820,312 In connection with the acquisition, we assumed, and immediately repaid, $870.0 million principal amount of long-term debt consisting of $600.0 million of senior notes and $270.0 million of credit facility borrowings. On March 1, 2019, we repaid Resolute’s credit facility borrowings, delivered a notice of optional redemption of Resolute’s senior notes for an April 1, 2019 redemption date, and irrevocably deposited with a trustee the full amount of funds to repay the aggregate outstanding senior notes principal balance plus accrued and unpaid interest, incurring a $4.3 million loss on early extinguishment of debt. The cash consideration transferred and the repayment of Resolute’s long-term debt were funded using cash on hand and borrowings on our Credit Facility. We subsequently repaid the borrowings on our Credit Facility using the net proceeds from the March 8, 2019 issuance of $500.0 million aggregate principal amount of 4.375% senior unsecured notes. Goodwill of $94.2 million was recognized in the purchase price allocation principally as a result of recording net deferred tax liabilities arising from the difference between the tax basis and the purchase price allocated to Resolute’s assets and liabilities, and anticipated opportunities for cost savings through administrative and operational synergies. We concluded that goodwill was impaired at March 31, 2020 (see Note 1 for more information regarding the goodwill impairment). Acquisition-related costs incurred were $11.4 million, with $8.4 million expensed in 2019 and $3.0 million expensed in 2018. These costs, which were comprised primarily of advisory and legal fees, are included in the “Other operating expense, net” line item on our Consolidated Statements of Operations and Comprehensive Income (Loss). Pro Forma Financial Information (Unaudited) The results of Resolute’s operations have been included in our consolidated financial statements since the March 1, 2019 acquisition date. The following supplemental pro forma information for the years ended December 31, 2019 and 2018 has been prepared to give effect to the Resolute acquisition as if it had occurred on January 1, 2018. The information below reflects pro forma adjustments based on available information and certain assumptions that we believe are reasonable, including (i) the depletion of the combined company’s proved oil and gas properties, (ii) the capitalization of interest expense, and (iii) the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred by Cimarex and Resolute. The pro forma results of operations do not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been or will be incurred by Cimarex to integrate the Resolute assets. The pro forma financial data has not been adjusted to reflect any other acquisitions or dispositions made during the periods presented as their results were not deemed material. The pro forma information is not necessarily indicative of the results that might have occurred had the transaction actually taken place on January 1, 2018 and is not intended to be a projection of future results. Future results may vary significantly from the results reflected in the following pro forma information because of normal production declines, changes in commodity prices, future acquisitions and divestitures, future development and exploration activities, and other factors. Years Ended December 31, (in thousands, except per share information) 2019 2018 Revenue $ 2,416,105 $ 2,667,561 Net (loss) income $ (139,553) $ 872,140 Net (loss) income per common share: Basic $ (1.47) $ 8.65 Diluted $ (1.47) $ 8.65 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationOur Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. Our significant accounting policies are discussed below. The accounts of Cimarex and its subsidiaries are presented in the accompanying Consolidated Financial Statements. All intercompany accounts and transactions were eliminated in consolidation. Certain amounts in the prior year financial statements have been reclassified to conform to the 2020 financial statement presentation. |
Segment Information | Segment Information We have determined that our business is comprised of only one segment because our gathering, processing, and marketing activities are ancillary to our oil and gas production operations. |
Use of Estimates | Use of Estimates The preparation of our financial statements in conformity with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. Areas of significance requiring the use of management’s judgments include the estimation of proved oil and gas reserves used in calculating depletion, the estimation of future net revenues used in computing ceiling test limitations, the estimation of future abandonment obligations used in recording asset retirement obligations, and the assessment of goodwill. Estimates and judgments also are required in determining allowances for credit losses, impairments of unproved properties and other assets, valuation of deferred tax assets, fair value measurements, lease liabilities, and contingencies. We analyze our estimates and base them on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The process of estimating quantities of oil and gas reserves is complex, requiring judgment and interpretation in the evaluation of all available geological, geophysical, engineering, and economic data. The data for a given field may also change substantially over time as a result of numerous factors including, but not limited to, additional development activity, evolving production history, and continual reassessment of the viability of production under varying economic conditions. As a result, material revisions to existing reserve estimates may occur from time to time. Although every reasonable effort is made to ensure that our reserve estimates represent the most accurate assessments possible, subjective decisions, and available data for our various fields make these estimates generally less precise than other estimates included in financial statement disclosures. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash in banks and investments readily convertible into cash, which have original maturities of three months or less. Cash equivalents are stated at cost, which approximates market value. |
Oil and Gas Properties | Oil and Gas Well Equipment and Supplies Our oil and gas well equipment and supplies are valued at the lower of cost and net realizable value, where net realizable value is based on estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Declines in the price of oil and gas well equipment and supplies in future periods could cause us to recognize impairments on these assets. An impairment would not affect cash flow from operating activities, but would adversely affect our net income and stockholders’ equity. Oil and Gas Properties We use the full cost method of accounting for our oil and gas operations. All costs associated with property acquisition, exploration, and development activities are capitalized. Exploration and development costs include dry hole costs, geological and geophysical costs, direct overhead related to exploration and development activities, and other costs incurred for the purpose of finding oil and gas reserves. Salaries and benefits paid to employees directly involved in the acquisition, exploration, and development of properties, as well as other internal costs that can be directly identified with acquisition, exploration and development activities, are also capitalized. Under the full cost method of accounting, no gain or loss is recognized upon the disposition of oil and gas properties unless such disposition would significantly alter the relationship between capitalized costs and proved reserves. Expenditures for maintenance and repairs are charged to production expense in the period incurred. Under the full cost method of accounting, we are required to perform quarterly ceiling test calculations to test our oil and gas properties for possible impairment. If the net capitalized cost of our oil and gas properties, as adjusted for income taxes, exceeds the ceiling limitation, the excess is charged to expense. The ceiling limitation is equal to the sum of: (i) the present value discounted at 10% of estimated future net revenues from proved reserves, (ii) the cost of properties not being amortized, and (iii) the lower of cost or estimated fair value of unproven properties included in the costs being amortized, as adjusted for income taxes. We currently do not have any unproven properties that are being amortized. Estimated future net revenues are determined based on trailing twelve-month average commodity prices and estimated proved reserve quantities, operating costs, and capital expenditures. During the years ended December 31, 2020 and 2019, we recognized ceiling test impairments totaling $1.64 billion and $618.7 million, respectively. The impairments resulted primarily from the impact of decreases in the 12-month average trailing prices for oil, natural gas, and NGLs as well as significant basis differentials utilized in determining the estimated future net cash flows from proved reserves. We did not recognize a ceiling test impairment during the year ended December 31, 2018 because the net capitalized cost of our oil and gas properties, as adjusted for income taxes, did not exceed the ceiling limitation. The quarterly ceiling test is primarily impacted by commodity prices, changes in estimated reserve quantities, reserves produced, overall exploration and development costs, depletion expense, and deferred taxes. If pricing conditions decline, or if there is a negative impact on one or more of the other components of the calculation, we may incur full cost ceiling test impairments in future quarters. The calculated ceiling limitation is not intended to be indicative of the fair market value of our proved reserves or future results. Impairment charges do not affect cash flow from operating activities, but do adversely affect our net income and various components of our balance sheet. Any impairment of oil and gas properties is not reversible at a later date. Depletion of proved oil and gas properties is computed on the units-of-production method, whereby capitalized costs, including future development costs and asset retirement costs, are amortized over total estimated proved reserves. Changes in our estimate of proved reserve quantities and impairment of oil and gas properties will cause corresponding changes in depletion expense in periods subsequent to these changes. The capitalized costs of unproved properties, including those in wells in progress, are excluded from the costs being amortized. We do not have major development projects that are excluded from costs being amortized. On a quarterly basis, we evaluate excluded costs for inclusion in the costs to be amortized. Significant unproved properties are evaluated individually. Unproved properties that are not considered individually significant are aggregated for evaluation purposes and related costs are transferred to the costs to be amortized quarterly based on the application of historical factors. |
Fixed Assets | Fixed AssetsFixed assets consist primarily of gas gathering and plant facilities, water infrastructure, vehicles, airplanes, office furniture, and computer equipment and software. These items are recorded at cost and are depreciated on the straight-line method based on expected lives of the individual assets, which range from 3 to 30 years. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of business combinations over the fair value of the net assets acquired and is tested for impairment at least annually. In performing the goodwill test, we compare the fair value of our reporting unit with its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, an impairment charge is recognized in the amount of this excess, limited to the total amount of goodwill allocated to that reporting unit. We evaluate our goodwill for impairment in the fourth quarter of each year and whenever events or changes in circumstances indicate the possibility that goodwill may be impaired. Based upon our assessment as of October 31, 2019, goodwill was not impaired. However, during the three months ended March 31, 2020 the company’s market capitalization declined significantly, caused by macroeconomic and geopolitical conditions including the collapse of oil prices driven by surplus supply and decreased demand caused by the COVID-19 pandemic. In addition, the uncertainty related to oil demand significantly impacted our investment and operating decisions. As a result, we concluded that a triggering event had occurred and we performed an interim quantitative impairment test for goodwill as of March 31, 2020. As a result of that quantitative impairment test, which utilized quoted market prices for our common stock as a basis for determining the fair value of our reporting unit, we concluded that goodwill was fully impaired at March 31, 2020. |
Revenue Recognition | Revenue Recognition Oil, Gas, and NGL Sales Revenue is recognized from the sales of oil, gas, and NGLs when the customer obtains control of the product, when we have no further obligations to perform related to the sale, and when collectability is probable. All of our sales of oil, gas, and NGLs are made under contracts with customers, which typically include variable consideration based on monthly pricing tied to local indices and monthly volumes delivered. The nature of our contracts with customers does not require us to constrain that variable consideration or to estimate the amount of transaction price attributable to future performance obligations for accounting purposes. As of December 31, 2020, we had open contracts with customers with terms of one month to multiple years, as well as “evergreen” contracts that renew on a periodic basis if not canceled by us or the customer. Performance obligations under our contracts with customers are typically satisfied at a point-in-time through monthly delivery of oil, gas, and/or NGLs. Our contracts with customers typically require payment within one month of delivery. Our gas is sold under various contracts. Under these contracts the gas and its components, including residue gas and NGLs, may be sold to a single purchaser or separate purchasers. Regardless of the contract, we are compensated for the value of the residue gas and NGLs at current market prices for each product. Depending on the specific contract terms, certain gathering, treating, transportation, processing, and other charges may be deducted against the prices we receive for the products. Our oil typically is sold at specific delivery points under contract terms that are common in our industry. Gas Gathering When we transport, process, and/or market third-party gas associated with our equity gas, we recognize revenue for the fees charged to third-parties for such services. Gas Marketing When we market and sell gas for other working interest owners, we act as agent under short-term sales and supply agreements and may earn a fee for such services. Revenues from such services are recognized as gas is delivered. Gas Imbalances Revenue from the sale of gas is recorded on the basis of gas actually sold by or for us. If our aggregate sales volumes for a well are greater (or less) than our proportionate share of production from the well, a liability (or receivable) is established to the extent there are insufficient proved reserves available to make-up the overproduced (or underproduced) imbalance. Imbalances have not been significant in the periods presented. |
General and Administrative Expenses | General and Administrative ExpensesGeneral and administrative expenses are reported net of amounts reimbursed to us by other working interest owners of the oil and gas properties we operate and net of amounts capitalized pursuant to the full cost method of accounting. General and administrative expense for the year ended December 31, 2020 included $28.7 million in severance expense associated with the voluntary early retirement incentive program that we offered to employees who met certain eligibility criteria in the first quarter of 2020 and the involuntary reduction in workforce program that we carried out in the third quarter of 2020. All of the expense for these programs was recognized in 2020. The remaining liability for these programs at December 31, 2020 is $11.3 million. The majority of this amount will be paid out in 2021, with the final payments expected to be made in 2022. |
Derivatives | Derivatives Our derivative contracts are recorded on the balance sheet at fair value. Our firm sales contracts qualify for the normal purchase and normal sale exception. Contracts that qualify for this treatment do not require mark-to-market accounting treatment. See Note 4 for additional information regarding our derivative instruments. |
Income Taxes | Income Taxes We record deferred tax assets and liabilities to account for the expected future tax consequences of events that have been recognized in the financial statements and tax returns. We classify all deferred tax assets and liabilities as non-current. We routinely assess the realizability of our deferred tax assets. Numerous judgments and assumptions are inherent in this assessment, including the determination of future taxable income, which is affected by factors such as future operating conditions (particularly as related to prevailing oil and gas prices) and changing tax laws. If we conclude that it is more likely than not that some or all of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. We regularly assess and, if required, establish accruals for tax |
Contingencies | Contingencies A provision for contingencies is charged to expense when the loss is probable and the cost can be reasonably estimated. Determining when expenses should be recorded for these contingencies and the appropriate amounts for accrual is a complex estimation process that includes subjective judgment. In many cases, this judgment is based on interpretation of laws and regulations, which can be interpreted differently by regulators and/or courts of law. We closely monitor known and potential legal, environmental, and other contingencies and determine when we should record losses for these items based on information available to us. See Note 10 for additional information regarding our contingencies. |
Asset Retirement Obligations | Asset Retirement Obligations We recognize the present value of the fair value of liabilities for retirement obligations associated with tangible long-lived assets in the period in which there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The liability includes costs related to the plugging and abandonment of wells, the removal of facilities and equipment, and site restorations. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and are depleted or depreciated as applicable. Subsequent to initial measurement at present value, a period-to-period increase in the carrying amount of the liability is recognized as accretion expense, which represents the effect of the passage of time on the amount of the liability. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement capitalized cost. The current portion of our asset retirement obligations is recorded in “Accrued liabilities — Other” in the accompanying Consolidated Balance Sheets and cash payments for settlements of retirement obligations are classified as cash used in operating activities in the accompanying Consolidated Statements of Cash Flows. See Note 8 for additional information regarding our asset retirement obligations. |
Stock-based Compensation | Stock-based Compensation We grant various types of stock-based awards including equity-classified awards such as stock options, restricted stock (including awards with service-based vesting and market condition-based vesting provisions), restricted stock units, and liability-classified awards such as cash-settled phantom stock. We recognize compensation cost related to equity-classified awards based on the estimated grant date fair value of the awards. The grant date fair value of stock option awards is determined using the Black-Scholes option pricing model. The grant date fair value of service-based restricted stock and units is the closing market price of our common stock on the grant date. The grant date fair value of the market condition-based restricted stock incorporates the effect of the market condition using a multiple probability simulation model. Compensation cost related to equity-classified awards is recognized ratably over the applicable vesting period. We recognize compensation cost related to liability-classified awards over the applicable vesting period based on an estimated fair value that is remeasured each reporting period using a multiple probability simulation model. To the extent compensation cost relates to employees directly involved in oil and gas acquisition, exploration, and development activities, such amounts are capitalized to oil and gas properties. Amounts not capitalized to oil and gas properties are recognized as stock-based compensation expense. See Note 6 for additional information regarding our stock-based compensation. |
Earnings (Loss) per Share | Earnings (Loss) per Share We calculate earnings (loss) per share recognizing that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are “participating securities” and, therefore, should be included in computing earnings per share using the two-class earnings allocation method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Our unvested share-based payment awards, consisting of restricted stock and units, qualify as participating securities. Our participating securities do not have a contractual obligation to share in the losses of the entity and, therefore, net losses are not allocated to them. See Note 7 for additional information regarding our earnings per share. |
Lease Accounting | Lease Accounting In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (“Topic 842”). The FASB subsequently issued various ASUs that provided additional implementation guidance. Topic 842 requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for contracts that provide lessees with the right to control the use of identified assets for a period of time. The scope of Topic 842 excludes leases to explore for or use minerals, oil, natural gas, and similar nonregenerative resources. We adopted Topic 842 effective January 1, 2019, using the modified retrospective method applied to all leases that existed on that date, which resulted in the recognition of lease liabilities of $276.9 million and right-of-use assets of $265.0 million. In connection with adoption we made use of the following practical expedients, which are provided in Topic 842: • a package of practical expedients to not reassess: 1) whether expired or existing contracts are or contain a lease, 2) lease classification for expired or existing leases, and 3) initial direct costs for existing leases; • an election not to apply the recognition requirements in Topic 842 to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that the company is reasonably certain to exercise); • a practical expedient that permits combining lease and nonlease components in a contract and accounting for the combination as a lease (elected by asset class); and • a practical expedient to not reassess certain land easements in existence prior to January 1, 2019. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The following table reflects components of the change in the carrying amount of goodwill for the year ended December 31, 2020: (in thousands) Year Ended Goodwill balance at January 1, 2020 $ 716,865 Resolute acquisition purchase price adjustments (Note 13) (2,418) Impairment (714,447) Goodwill balance at December 31, 2020 $ — |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-Term Debt | Long-term debt at December 31, 2020 and 2019 consisted of the following: December 31, 2020 December 31, 2019 (in thousands) Principal Unamortized Long-term Principal Unamortized Long-term 4.375% notes due 2024 $ 750,000 $ (2,672) $ 747,328 $ 750,000 $ (3,535) $ 746,465 3.90% notes due 2027 750,000 (5,541) 744,459 750,000 (6,289) 743,711 4.375% notes due 2029 500,000 (4,488) 495,512 500,000 (4,930) 495,070 Total long-term debt $ 2,000,000 $ (12,701) $ 1,987,299 $ 2,000,000 $ (14,754) $ 1,985,246 ________________________________________ (1) The 4.375% notes due 2024 were issued at par , therefore, the amounts shown in the table are for unamortized debt issuance costs only. At December 31, 2020, the unamortized debt issuance costs and discount related to the 3.90% notes due 2027 were $4.3 million and $1.3 million, respectively. At December 31, 2020, the unamortized debt issuance costs and discount related to the 4.375% notes due 2029 were $3.9 million and $0.6 million, respectively. At December 31, 2019, the unamortized debt issuance costs and discount related to the 3.90% notes due 2027 were $4.8 million and $1.5 million, respectively. At December 31, 2019, the unamortized debt issuance costs and discount related to the 4.375% notes due 2029 were $4.3 million and $0.6 million, respectively. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Schedule of Outstanding Derivative Contracts | The following tables summarize our outstanding derivative contracts as of December 31, 2020: Oil Collars First Second Third Fourth Total 2021: WTI (1) Volume (Bbls) 3,600,000 3,094,000 3,680,000 3,680,000 14,054,000 Weighted Avg Price - Floor $ 38.06 $ 34.62 $ 34.65 $ 34.65 $ 35.52 Weighted Avg Price - Ceiling $ 46.45 $ 43.28 $ 44.37 $ 44.37 $ 44.66 2022: WTI (1) Volume (Bbls) 2,340,000 1,729,000 920,000 — 4,989,000 Weighted Avg Price - Floor $ 37.31 $ 38.16 $ 40.00 $ — $ 38.10 Weighted Avg Price - Ceiling $ 48.41 $ 49.56 $ 49.19 $ — $ 48.95 ________________________________________ (1) The index price for these collars is West Texas Intermediate (“WTI”) as quoted on the New York Mercantile Exchange (“NYMEX”). Gas Collars First Second Third Fourth Total 2021: PEPL (1) Volume (MMBtu) 9,000,000 9,100,000 8,280,000 8,280,000 34,660,000 Weighted Avg Price - Floor $ 1.83 $ 1.89 $ 2.00 $ 2.00 $ 1.93 Weighted Avg Price - Ceiling $ 2.23 $ 2.28 $ 2.42 $ 2.42 $ 2.33 Perm EP (2) Volume (MMBtu) 6,300,000 7,280,000 6,440,000 6,440,000 26,460,000 Weighted Avg Price - Floor $ 1.50 $ 1.62 $ 1.86 $ 1.86 $ 1.71 Weighted Avg Price - Ceiling $ 1.79 $ 1.92 $ 2.22 $ 2.22 $ 2.03 Waha (3) Volume (MMBtu) 8,100,000 9,100,000 8,280,000 8,280,000 33,760,000 Weighted Avg Price - Floor $ 1.52 $ 1.61 $ 1.82 $ 1.82 $ 1.69 Weighted Avg Price - Ceiling $ 1.83 $ 1.93 $ 2.17 $ 2.17 $ 2.03 2022: PEPL (1) Volume (MMBtu) 5,400,000 1,820,000 — — 7,220,000 Weighted Avg Price - Floor $ 2.13 $ 2.40 — — $ 2.20 Weighted Avg Price - Ceiling $ 2.55 $ 2.86 — — $ 2.63 Perm EP (2) Volume (MMBtu) 3,600,000 1,820,000 — — 5,420,000 Weighted Avg Price - Floor $ 2.13 $ 2.40 — — $ 2.22 Weighted Avg Price - Ceiling $ 2.53 $ 2.88 — — $ 2.65 Waha (3) Volume (MMBtu) 5,400,000 1,820,000 — — 7,220,000 Weighted Avg Price - Floor $ 1.98 $ 2.40 — — $ 2.09 Weighted Avg Price - Ceiling $ 2.39 $ 2.86 — — $ 2.50 ________________________________________ (1) The index price for these collars is Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index (“PEPL”) as quoted in Platt’s Inside FERC. (2) The index price for these collars is El Paso Natural Gas Company, Permian Basin Index (“Perm EP”) as quoted in Platt’s Inside FERC. (3) The index price for these collars is Waha West Texas Natural Gas Index (“Waha”) as quoted in Platt’s Inside FERC. Oil Basis Swaps First Second Third Fourth Total 2021: WTI Midland (1) Volume (Bbls) 2,790,000 3,003,000 3,220,000 3,220,000 12,233,000 Weighted Avg Differential (2) $ 0.03 $ (0.02) $ (0.08) $ (0.08) $ (0.04) 2022: WTI Midland (1) Volume (Bbls) 1,980,000 1,365,000 644,000 — 3,989,000 Weighted Avg Differential (2) $ 0.25 $ 0.31 $ 0.38 $ — $ 0.29 ________________________________________ (1) The index price we pay under these basis swaps is WTI Midland as quoted by Argus Americas Crude. (2) The index price we receive under these basis swaps is WTI as quoted on the NYMEX plus or minus, as applicable, the weighted average differential shown in the table. Oil Roll Differential Swaps First Second Third Fourth Total 2021: WTI (1) Volume (Bbls) 630,000 1,001,000 1,656,000 1,656,000 4,943,000 Weighted Avg Price $ (0.24) $ (0.22) $ (0.10) $ (0.10) $ (0.14) 2022: WTI (1) Volume (Bbls) 1,620,000 1,001,000 644,000 — 3,265,000 Weighted Avg Price $ (0.10) $ (0.01) $ 0.10 $ — $ (0.03) ________________________________________ (1) The index price used to determine the settlement “roll” is WTI as quoted on the NYMEX. |
Schedule of Net (Gains) and Losses from Settlements and Changes of Derivative Contracts | The following table presents the components of “Loss (gain) on derivative instruments, net” for the periods indicated. Years Ended December 31, (in thousands) 2020 2019 2018 Decrease (increase) in fair value of derivative instruments, net: Gas contracts $ 56,475 $ (13,114) $ 15,742 Oil contracts 98,306 76,833 (126,130) 154,781 63,719 (110,388) Cash (receipts) payments on derivative instruments, net: Gas contracts (15,476) (40,114) (13,794) Oil contracts (103,771) 53,245 38,223 (119,247) 13,131 24,429 Loss (gain) on derivative instruments, net $ 35,534 $ 76,850 $ (85,959) |
Schedule of Amounts and Classifications of Derivative Assets and Liabilities | The following tables present the amounts and classifications of our derivative assets and liabilities as of December 31, 2020 and 2019, as well as the potential effect of netting arrangements on our recognized derivative asset and liability amounts. December 31, 2020 (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ 5,425 $ — Gas contracts Current assets — Derivative instruments 1,423 — Gas contracts Non-current assets — Derivative instruments 2,342 — Oil contracts Current liabilities — Derivative instruments — 106,507 Gas contracts Current liabilities — Derivative instruments — 38,891 Oil contracts Non-current liabilities — Derivative instruments — 12,526 Gas contracts Non-current liabilities — Derivative instruments — 5,223 Total gross amounts presented in the balance sheet 9,190 163,147 Less: gross amounts not offset in the balance sheet (8,863) (8,863) Net amount $ 327 $ 154,284 December 31, 2019 (in thousands) Balance Sheet Location Asset Liability Oil contracts Current assets — Derivative instruments $ 1,624 $ — Gas contracts Current assets — Derivative instruments 16,320 — Oil contracts Non-current assets — Derivative instruments 580 — Oil contracts Current liabilities — Derivative instruments — 16,681 Oil contracts Non-current liabilities — Derivative instruments — 824 Gas contracts Non-current liabilities — Derivative instruments — 194 Total gross amounts presented in the balance sheet 18,524 17,699 Less: gross amounts not offset in the balance sheet (9,865) (9,865) Net amount $ 8,659 $ 7,834 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Information for Certain Assets and Liabilities | The following table provides fair value measurement information for certain assets and liabilities as of December 31, 2020 and 2019. December 31, 2020 December 31, 2019 (in thousands) Book Value Fair Value Book Value Fair Value Financial Assets (Liabilities): 4.375% Notes due 2024 $ (750,000) $ (818,025) $ (750,000) $ (792,225) 3.90% Notes due 2027 $ (750,000) $ (826,575) $ (750,000) $ (778,050) 4.375% Notes due 2029 $ (500,000) $ (567,250) $ (500,000) $ (530,400) Derivative instruments — assets $ 9,190 $ 9,190 $ 18,524 $ 18,524 Derivative instruments — liabilities $ (163,147) $ (163,147) $ (17,699) $ (17,699) |
STOCK-BASED AND OTHER COMPENS_2
STOCK-BASED AND OTHER COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Recognition of Non-Cash Stock-Based Compensation Cost | We have recognized stock-based compensation cost as shown below. Historical amounts may not be representative of future amounts as the value of future awards may vary from historical amounts. Years Ended December 31, (in thousands) 2020 2019 2018 Restricted stock awards: Performance stock awards $ 17,338 $ 21,590 $ 23,083 Service-based stock awards 26,014 25,611 20,385 43,352 47,201 43,468 Stock option awards 1,460 1,903 2,456 Total stock-based compensation cost 44,812 49,104 45,924 Less amounts capitalized to oil and gas properties (14,917) (22,706) (23,029) Stock-based compensation expense $ 29,895 $ 26,398 $ 22,895 |
Schedule of Restricted Stock Awards Granted | The following table provides information about restricted stock awards granted during the last three years. Years Ended December 31, 2020 2019 2018 Number Weighted Number Weighted Number Weighted Performance stock awards 311,974 $ 29.84 264,393 $ 47.66 123,533 $ 90.26 Service-based stock awards 846,918 $ 35.54 681,988 $ 45.88 469,438 $ 81.29 Total restricted stock awards 1,158,892 $ 34.01 946,381 $ 46.38 592,971 $ 83.16 |
Schedule of Restricted Stock Rollforward | The following table provides information on restricted stock activity during the year. Service-based Performance Number of Weighted Number of Weighted Outstanding as of January 1, 2020 1,639,069 $ 74.51 664,977 $ 72.99 Vested (237,616) $ 94.23 (205,746) $ 82.83 Granted 846,918 $ 35.54 311,974 $ 29.84 Canceled (1) — $ — (119,521) $ 89.46 Forfeited (155,450) $ 78.43 — $ — Outstanding as of December 31, 2020 2,092,921 $ 56.21 651,684 $ 46.20 ________________________________________ |
Schedule of Options Granted, Weighted-Average Grant-Date Fair Value, Total Fair Value of the Options and Assumptions used to Determine Fair Market Value of those Options | The following table provides information regarding options granted during the last three years, including the assumptions used to determine the fair value of those options. Years Ended December 31, 2020 2019 2018 Options granted 194,900 132,900 92,050 Weighted average grant date fair value $ 12.61 $ 12.14 $ 26.71 Weighted average exercise price $ 34.06 $ 42.78 $ 83.28 Total fair value (in thousands) $ 2,458 $ 1,613 $ 2,458 Expected years until exercise 4.9 4.9 5.0 Expected stock volatility 53.9 % 37.1 % 34.7 % Dividend yield 2.6 % 1.9 % 0.9 % Risk-free interest rate 0.4 % 1.4 % 2.7 % |
Schedule of Outstanding Stock Options Rollforward | The following table provides information regarding outstanding stock options as of December 31, 2020 and changes during the year. Number of Options Weighted Weighted Aggregate Outstanding as of January 1, 2020 495,538 $ 87.17 Exercised — $ — Granted 194,900 $ 34.06 Canceled (107,025) $ 94.29 Forfeited (36,036) $ 55.69 Outstanding as of December 31, 2020 547,377 $ 68.94 4.6 years $ 711 Exercisable as of December 31, 2020 271,827 $ 99.38 3.0 years $ — |
Schedule of Information regarding Options Exercised and Grant-Date Fair Value of Options Vested | The following table provides information regarding options exercised and the grant date fair value of options vested. Years Ended December 31, (in thousands) 2020 2019 2018 Cash received from option exercises $ — $ 1,267 $ 2,241 Intrinsic value of options exercised $ — $ 425 $ 1,030 Grant date fair value of options vested $ 1,855 $ 2,262 $ 2,547 |
Schedule of Non-Vested Stock Options Rollforward | The following table provides information regarding non-vested stock options as of December 31, 2020 and changes during the year. Number of Options Weighted Weighted Non-vested as of January 1, 2020 208,255 $ 17.60 $ 58.47 Vested (91,569) $ 20.26 $ 66.47 Granted 194,900 $ 12.61 $ 34.06 Forfeited (36,036) $ 16.74 $ 55.69 Non-vested as of December 31, 2020 275,550 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Basic and Diluted Net Earnings (Loss) per Common Share | The calculations of basic and diluted net earnings (loss) per common share under the two-class method are presented below. Earnings (loss) per share are based on actual figures rather than the rounded figures presented. Year Ended December 31, 2020 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (1,967,458) Plus: return from repurchase of redeemable preferred stock 1,810 Less: dividends attributable to participating securities (1) (1,808) Less: redeemable preferred stock dividends (4,861) Basic loss per share Loss available to common stockholders (1,972,317) 99,952 $ (19.73) Effects of dilutive securities Dilutive securities (2) — — Diluted loss per share Loss available to common stockholders and assumed conversions $ (1,972,317) 99,952 $ (19.73) Year Ended December 31, 2019 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net loss $ (124,619) Less: dividends attributable to participating securities (1) (1,519) Less: redeemable preferred stock dividends (5,078) Basic loss per share Loss available to common stockholders (131,216) 98,789 $ (1.33) Effects of dilutive securities Dilutive securities (2) — — Diluted loss per share Loss available to common stockholders and assumed conversions $ (131,216) 98,789 $ (1.33) Year Ended December 31, 2018 (in thousands, except per share information) Income (Numerator) Shares (Denominator) Per-Share Amount Net income $ 791,851 Less: dividends and net income attributable to participating securities (11,087) Basic earnings per share Income available to common stockholders 780,764 93,793 $ 8.32 Effects of dilutive securities Dilutive securities (2) 3 27 Diluted earnings per share Income available to common stockholders and assumed conversions $ 780,767 93,820 $ 8.32 ________________________________________ (1) Participating securities do not have a contractual obligation to share in the losses of the entity, therefore, net losses are not attributable to participating securities. |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Change in the Carrying Amount of the Asset Retirement Obligation | The following table reflects the components of the change in the carrying amount of the asset retirement obligation for the years ended December 31, 2020 and 2019. (in thousands) 2020 2019 Asset retirement obligation at January 1, $ 181,869 $ 166,904 Liabilities incurred 4,491 21,511 Liability settlements and disposals (21,922) (19,595) Accretion expense 7,485 7,499 Revisions of estimated liabilities 5,944 5,550 Asset retirement obligation at December 31, 177,867 181,869 Less current obligation 12,272 27,824 Long-term asset retirement obligation $ 165,595 $ 154,045 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of the Provision for Income Taxes | The components of our provision for income taxes were as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Current taxes: Federal benefit $ (198) $ — $ (3,007) State expense 167 532 383 (31) 532 (2,624) Deferred taxes: Federal (benefit) expense (323,597) (24,055) 211,717 State (benefit) expense (35,299) (2,847) 21,563 (358,896) (26,902) 233,280 $ (358,927) $ (26,370) $ 230,656 |
Schedule of Reconciliations of Income Tax (Benefit) Expense Calculated at Federal Statutory Rate of 35% to the Total Income Tax (Benefit) Expense | Reconciliations of the income tax (benefit) expense calculated at the federal statutory rate of 21% to the total income tax (benefit) expense are as follows: Years Ended December 31, (in thousands) 2020 2019 2018 Provision at statutory rate $ (488,541) $ (31,708) $ 214,726 Effect of state taxes (29,467) (1,717) 18,795 Acquisition-related costs — 1,318 — Tax credits and other permanent differences 1,365 2,548 1,583 Change in valuation allowance, net (4,221) — (1,376) Stock-based compensation 11,903 3,189 (3,072) Goodwill impairment 150,034 — — Income tax (benefit) expense $ (358,927) $ (26,370) $ 230,656 |
Schedule of Components of Net Deferred Tax Liabilities | The components of net deferred taxes are as follows: December 31, (in thousands) 2020 2019 Assets: Stock-based compensation and other accrued amounts $ 59,659 $ 31,521 Net operating loss and other carryforwards, net of valuation allowance 456,613 454,743 Credit carryforward, net of valuation allowance 4,223 3,936 520,495 490,200 Liabilities: Property, plant and equipment (500,023) (828,624) Net deferred tax assets (liabilities) $ 20,472 $ (338,424) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Supplemental Balance Sheet Information of Leases | The following tables present the amounts and classifications of our estimated right-of-use assets, net and lease liabilities as of December 31, 2020 and 2019: December 31, (in thousands) Balance Sheet Location 2020 2019 Operating lease right-of-use assets Non-current assets — Fixed assets, net $ 185,118 $ 240,263 Finance lease right-of-use asset Non-current assets — Other assets 25,052 24,849 Total right-of-use assets $ 210,170 $ 265,112 December 31, (in thousands) Balance Sheet Location 2020 2019 Operating lease liabilities — current Current liabilities — Operating leases $ 59,051 $ 66,003 Operating lease liabilities — non-current Non-current liabilities — Operating leases 134,705 184,172 Finance lease liability — current Current liabilities — Accrued liabilities — Other 7,099 7,328 Finance lease liability — non-current Non-current liabilities — Other liabilities 19,731 18,749 Total lease liabilities $ 220,586 $ 276,252 |
Schedule of Lease Cost and Cash Paid for Leases | The following table summarizes estimated total lease cost, which includes amounts recognized in income and amounts capitalized for the indicated periods: Years Ended December 31, (in thousands) 2020 2019 Finance lease cost: Amortization of right-of-use asset $ 5,286 $ 4,385 Interest on lease liability 1,663 1,719 Operating lease cost: Production expense (1) 19,914 20,965 Transportation, processing, and other operating (1) 21,386 17,264 Gas gathering and other expense (1) 991 5,607 General and administrative expense (2) 12,701 12,421 Short-term lease cost (3) 235,840 539,110 Total lease cost $ 297,781 $ 601,471 ________________________________________ (1) Operating lease cost in the table above is composed of costs incurred under production-related leases. These costs are included in the indicated captions on the Consolidated Statements of Operations and Comprehensive Income (Loss). (2) Operating lease cost in the table above is composed of costs incurred under real estate leases. A majority of these costs are included in the indicated caption on the Consolidated Statements of Operations and Comprehensive Income (Loss). A portion of these costs are capitalized as part of proved properties on the Consolidated Balance Sheets. These costs include variable lease costs of $3.2 million and $3.1 million for the years ended December 31, 2020 and 2019, respectively. (3) Short-term lease cost in the table above is composed of costs incurred under leases with terms of 12 months or less for right-of-use assets used in exploration and development activities. Payments under such leases are typically based on usage of the underlying right-of-use asset and, therefore, are also variable lease costs. These costs are capitalized as part of proved properties on the Consolidated Balance Sheets. The following table summarizes estimated cash paid for our leases for the indicated periods: Years Ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Financing cash outflows from finance lease $ 4,842 $ 3,869 Operating cash outflows from operating leases $ 53,066 $ 54,044 Cash paid for short-term leases and variable lease payments: Operating cash outflows from operating leases $ 3,169 $ 3,103 Investing cash outflows from operating leases $ 235,024 $ 551,325 |
Schedule of Weighted-Average Remaining Lease Term and Discount Rates of Leases | The following table presents the weighted-average remaining lease terms and discount rates of our leases as of the indicated dates: December 31, 2020 2019 Weighted-average remaining lease term (in years): Finance lease 4.7 5.9 Operating leases 3.9 4.1 Weighted-average discount rate: Finance lease 6.3 % 5.7 % Operating leases 5.0 % 3.9 % |
Schedule of Maturity of Operating Leases | The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities recorded at December 31, 2020: December 31, 2020 (in thousands) Operating Leases Finance Lease January 1, 2021 — December 31, 2021 $ 67,330 $ 7,618 January 1, 2022 — December 31, 2022 61,595 6,666 January 1, 2023 — December 31, 2023 41,567 6,340 January 1, 2024 — December 31, 2024 21,259 6,015 January 1, 2025 — December 31, 2025 8,438 3,829 Remaining periods 14,695 — Total undiscounted future cash flows 214,884 30,468 Less effects of discounting (21,128) (3,638) Lease liabilities recognized $ 193,756 $ 26,830 |
Schedule of Maturity of Finance Leases | The following table reflects the undiscounted future cash flows utilized in the calculation of the lease liabilities recorded at December 31, 2020: December 31, 2020 (in thousands) Operating Leases Finance Lease January 1, 2021 — December 31, 2021 $ 67,330 $ 7,618 January 1, 2022 — December 31, 2022 61,595 6,666 January 1, 2023 — December 31, 2023 41,567 6,340 January 1, 2024 — December 31, 2024 21,259 6,015 January 1, 2025 — December 31, 2025 8,438 3,829 Remaining periods 14,695 — Total undiscounted future cash flows 214,884 30,468 Less effects of discounting (21,128) (3,638) Lease liabilities recognized $ 193,756 $ 26,830 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Years Ended December 31, (in thousands) 2020 2019 2018 Cash paid during the period for: Interest expense (net of capitalized amounts of $48,306, $49,944, and $19,969, respectively) (1) $ 41,407 $ 50,601 $ 45,357 Income taxes $ 300 $ 1,364 $ — Cash received for income tax refunds $ 2,118 $ 2,033 $ 760 ________________________________________ (1) The year ended December 31, 2019 includes $17.6 million in interest paid upon the redemption of Resolute’s senior notes and credit facility on March 1, 2019. |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The acquisition date fair value of the consideration transferred totaled $820.3 million, which consisted of cash, common stock, and a newly created series of preferred stock (see Note 2 for more information on the preferred stock) as follows: (in thousands) Fair Value of Consideration Transferred Cash $ 325,677 Common stock (5,652 shares issued) 413,015 Preferred stock (63 shares issued) 81,620 $ 820,312 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the purchase price allocation: (in thousands) March 1, 2019 Adjustments March 1, 2020 Cash $ 41,236 $ — $ 41,236 Accounts receivable 50,739 11,521 62,260 Other current assets 13,280 (1,176) 12,104 Proved oil and gas properties 692,600 — 692,600 Unproved oil and gas properties 1,054,200 (30,314) 1,023,886 Fixed assets 5,355 (32) 5,323 Goodwill 107,341 (13,126) 94,215 Other assets 142 — 142 Current liabilities (202,735) 1,790 (200,945) Long-term debt (870,000) — (870,000) Deferred income taxes (62,409) 31,337 (31,072) Asset retirement obligation (9,437) — (9,437) Total identifiable net assets $ 820,312 $ — $ 820,312 |
Schedule of Pro Forma Information | Years Ended December 31, (in thousands, except per share information) 2019 2018 Revenue $ 2,416,105 $ 2,667,561 Net (loss) income $ (139,553) $ 872,140 Net (loss) income per common share: Basic $ (1.47) $ 8.65 Diluted $ (1.47) $ 8.65 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Oil and Gas Properties | ||||
Discount rate for calculating present value of estimated future net revenues from proved reserves (as a percent) | 10.00% | |||
Impairment of oil and gas properties | $ 1,638,329 | $ 618,693 | $ 0 | |
Fixed assets, net | ||||
Severance costs | 28,700 | |||
Restructuring reserve | 11,300 | |||
Lease liabilities | 193,756 | |||
Right-of-use assets | $ 185,118 | $ 240,263 | ||
Accounting Standards Update 2016-02 | ||||
Fixed assets, net | ||||
Lease liabilities | $ 276,900 | |||
Right-of-use assets | $ 265,000 | |||
Minimum | ||||
Fixed assets, net | ||||
Fixed assets expected lives | 3 years | |||
Delivery term | 1 month | |||
Maximum | ||||
Fixed assets, net | ||||
Fixed assets expected lives | 30 years |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill balance at beginning of period | $ 716,865 | ||
Goodwill | (2,418) | ||
Goodwill, Impairment Loss | (714,447) | $ 0 | $ 0 |
Goodwill balance at end of period | $ 0 | $ 716,865 |
CAPITAL STOCK - Narrative (Deta
CAPITAL STOCK - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2019 | |
Class of Stock [Line Items] | |||||||||||||||||
Common stock authorized (shares) | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||
Preferred stock authorized (shares) | 15,000,000 | 15,000,000 | 15,000,000 | ||||||||||||||
Common stock outstanding (shares) | 102,900,000 | 102,900,000 | 102,900,000 | ||||||||||||||
Redeemable preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||
Preferred stock dividend rate (as a percent) | 8.125% | ||||||||||||||||
Preferred stock liquidation preference per share (USD per share) | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||||||
Preferred stock, liquidation preference | $ 28.2 | $ 28.2 | $ 28.2 | ||||||||||||||
Stock issued upon conversion of preferred stock (shares) | 8.38732 | 8.38732 | 8.38732 | 8.0421 | |||||||||||||
Price received per share upon conversion (USD per share) | $ 471.40 | $ 471.40 | $ 471.40 | ||||||||||||||
Dividends | |||||||||||||||||
Dividends declared per common share (USD per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.18 | $ 0.18 | $ 0.16 | $ 0.16 | $ 0.88 | 0.80 | $ 0.68 | ||
Dividends payable | $ 22.9 | $ 22.9 | $ 22.9 | ||||||||||||||
Dividends declared per preferred share (USD per share) | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 20.3125 | $ 81.25 | $ 81.25 | |||||||
Series A Preferred Stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Preferred stock authorized (shares) | 62,500 | 62,500 | 62,500 | ||||||||||||||
Preferred stock outstanding (shares) | 28,200 | 28,200 | 28,200 | ||||||||||||||
Stock repurchased during period (shares) | 34,300 | ||||||||||||||||
Excess of book value over payment of stock repurchased | $ 1.8 | ||||||||||||||||
Dividends | |||||||||||||||||
Dividends payable | $ 0.6 | $ 0.6 | $ 0.6 |
LONG-TERM DEBT - Summary (Detai
LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 08, 2019 | Apr. 10, 2017 | Jun. 30, 2015 |
Debt Instrument | |||||
Principal | $ 2,000,000 | $ 2,000,000 | |||
Unamortized Debt Issuance Costs and Discount | (12,701) | (14,754) | |||
Long-term debt, net | 1,987,299 | 1,985,246 | |||
4.375% notes due 2024 | |||||
Debt Instrument | |||||
Principal | 750,000 | 750,000 | |||
Unamortized Debt Issuance Costs and Discount | (2,672) | (3,535) | |||
Long-term debt, net | 747,328 | 746,465 | $ 750,000 | ||
Interest rate (as a percent) | 4.375% | ||||
3.90% notes due 2027 | |||||
Debt Instrument | |||||
Principal | 750,000 | 750,000 | $ 750,000 | ||
Unamortized Debt Issuance Costs and Discount | (5,541) | (6,289) | |||
Long-term debt, net | 744,459 | 743,711 | |||
Interest rate (as a percent) | 3.90% | ||||
Unamortized debt issuance costs | 4,300 | 4,800 | |||
Unamortized discount | 1,300 | 1,500 | |||
4.375% notes due 2029 | |||||
Debt Instrument | |||||
Principal | 500,000 | 500,000 | |||
Unamortized Debt Issuance Costs and Discount | (4,488) | (4,930) | |||
Long-term debt, net | 495,512 | 495,070 | |||
Interest rate (as a percent) | 4.375% | ||||
Unamortized debt issuance costs | 3,900 | 4,300 | |||
Unamortized discount | $ 600 | $ 600 |
LONG-TERM DEBT - Bank Debt Narr
LONG-TERM DEBT - Bank Debt Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Feb. 05, 2019 | |
Line of Credit Facility [Line Items] | |||
Unamortized debt issuance costs and discount | $ 12,701,000 | $ 14,754,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Aggregate commitments under credit facility | $ 1,250,000,000 | ||
Maximum borrowing capacity including accordion feature | 1,500,000,000 | ||
Maximum additional non-cash impairment charge add-backs | 3,500,000,000 | ||
Consolidated cash threshold | $ 175,000,000 | ||
Property lien debt basket (as a percent) | 15.00% | ||
Consolidated net tangible assets cap | $ 50,000,000 | ||
Borrowings outstanding | 0 | ||
Credit facility borrowings during period | 172,000,000 | ||
Credit facility repayments during period | 172,000,000 | ||
Unamortized debt issuance costs and discount | $ 1,500,000 | ||
Unamortized debt issuance costs | 4,300,000 | $ 4,000,000 | |
Line of credit | |||
Line of Credit Facility [Line Items] | |||
Unused borrowing availability | 1,248,000,000 | ||
Letters of credit outstanding under the credit facility | $ 2,500,000 | ||
Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Commitment fee rate (as a percent) | 0.125% | ||
Maximum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Commitment fee rate (as a percent) | 0.35% | ||
Debt-to-capital ratio (as a percent) | 65.00% | ||
London Interbank Offered Rate (LIBOR) | Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate margin (as a percent) | 1.125% | ||
London Interbank Offered Rate (LIBOR) | Maximum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate margin (as a percent) | 2.00% | ||
Base Rate | Minimum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate margin (as a percent) | 0.125% | ||
Base Rate | Maximum | Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Interest rate margin (as a percent) | 1.00% |
LONG-TERM DEBT - Senior Notes N
LONG-TERM DEBT - Senior Notes Narrative (Details) - USD ($) $ in Thousands | Mar. 08, 2019 | Apr. 10, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2015 |
Debt Instrument | ||||||
Principal | $ 2,000,000 | $ 2,000,000 | ||||
Proceeds from issuance of long-term debt | 172,000 | 2,619,310 | $ 0 | |||
4.375% notes due 2029 | ||||||
Debt Instrument | ||||||
Principal | 500,000 | 500,000 | ||||
Interest rate (as a percent) | 4.375% | |||||
3.90% notes due 2027 | ||||||
Debt Instrument | ||||||
Principal | $ 750,000 | $ 750,000 | 750,000 | |||
Interest rate (as a percent) | 3.90% | |||||
Issuance price relative to par value (as a percent) | 99.748% | |||||
Effective rate (as a percent) | 3.93% | 4.01% | ||||
4.375% notes due 2024 | ||||||
Debt Instrument | ||||||
Principal | $ 750,000 | $ 750,000 | ||||
Interest rate (as a percent) | 4.375% | |||||
Effective rate (as a percent) | 4.50% | 4.50% | ||||
Senior notes | 4.375% notes due 2024 | ||||||
Debt Instrument | ||||||
Issuance price relative to par value (as a percent) | 99.862% | |||||
Effective rate (as a percent) | 4.392% |
DERIVATIVE INSTRUMENTS - Deriva
DERIVATIVE INSTRUMENTS - Derivative Contracts (Details) - Outstanding Derivative as of Balance Sheet Date MMBTU in Thousands | 12 Months Ended |
Dec. 31, 2020MMBTU$ / MMBTU$ / bblbbl | |
Derivative Contract Oil Collar W T I Index | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 14,054,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 35.52 |
Weighted Avg Price - Ceiling (USD per unit) | 44.66 |
Derivative Contract Oil Collar W T I Index | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,600,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 38.06 |
Weighted Avg Price - Ceiling (USD per unit) | 46.45 |
Derivative Contract Oil Collar W T I Index | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,094,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 34.62 |
Weighted Avg Price - Ceiling (USD per unit) | 43.28 |
Derivative Contract Oil Collar W T I Index | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,680,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 34.65 |
Weighted Avg Price - Ceiling (USD per unit) | 44.37 |
Derivative Contract Oil Collar W T I Index | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,680,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 34.65 |
Weighted Avg Price - Ceiling (USD per unit) | 44.37 |
Derivative Contract Oil Collar W T I Index | 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 4,989,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 38.10 |
Weighted Avg Price - Ceiling (USD per unit) | 48.95 |
Derivative Contract Oil Collar W T I Index | First Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 2,340,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 37.31 |
Weighted Avg Price - Ceiling (USD per unit) | 48.41 |
Derivative Contract Oil Collar W T I Index | Second Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,729,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 38.16 |
Weighted Avg Price - Ceiling (USD per unit) | 49.56 |
Derivative Contract Oil Collar W T I Index | Third Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 920,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 40 |
Weighted Avg Price - Ceiling (USD per unit) | 49.19 |
Derivative Contract Oil Collar W T I Index | Fourth Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Derivative Contract Gas Collar PEPL Index | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 34,660 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.93 |
Weighted Avg Price - Ceiling (USD per unit) | 2.33 |
Derivative Contract Gas Collar PEPL Index | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 9,000 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.83 |
Weighted Avg Price - Ceiling (USD per unit) | 2.23 |
Derivative Contract Gas Collar PEPL Index | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 9,100 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.89 |
Weighted Avg Price - Ceiling (USD per unit) | 2.28 |
Derivative Contract Gas Collar PEPL Index | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 8,280 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2 |
Weighted Avg Price - Ceiling (USD per unit) | 2.42 |
Derivative Contract Gas Collar PEPL Index | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 8,280 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2 |
Weighted Avg Price - Ceiling (USD per unit) | 2.42 |
Derivative Contract Gas Collar PEPL Index | 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 7,220 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2.20 |
Weighted Avg Price - Ceiling (USD per unit) | 2.63 |
Derivative Contract Gas Collar PEPL Index | First Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 5,400 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2.13 |
Weighted Avg Price - Ceiling (USD per unit) | 2.55 |
Derivative Contract Gas Collar PEPL Index | Second Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 1,820 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2.40 |
Weighted Avg Price - Ceiling (USD per unit) | 2.86 |
Derivative Contract Gas Collar PEPL Index | Third Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Derivative Contract Gas Collar PEPL Index | Fourth Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Derivative Contract Gas Collar Perm EP | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 26,460 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.71 |
Weighted Avg Price - Ceiling (USD per unit) | 2.03 |
Derivative Contract Gas Collar Perm EP | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 6,300 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.50 |
Weighted Avg Price - Ceiling (USD per unit) | 1.79 |
Derivative Contract Gas Collar Perm EP | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 7,280 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.62 |
Weighted Avg Price - Ceiling (USD per unit) | 1.92 |
Derivative Contract Gas Collar Perm EP | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 6,440 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.86 |
Weighted Avg Price - Ceiling (USD per unit) | 2.22 |
Derivative Contract Gas Collar Perm EP | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 6,440 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.86 |
Weighted Avg Price - Ceiling (USD per unit) | 2.22 |
Derivative Contract Gas Collar Perm EP | 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 5,420 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2.22 |
Weighted Avg Price - Ceiling (USD per unit) | 2.65 |
Derivative Contract Gas Collar Perm EP | First Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 3,600 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2.13 |
Weighted Avg Price - Ceiling (USD per unit) | 2.53 |
Derivative Contract Gas Collar Perm EP | Second Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 1,820 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2.40 |
Weighted Avg Price - Ceiling (USD per unit) | 2.88 |
Derivative Contract Gas Collar Perm EP | Third Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Derivative Contract Gas Collar Perm EP | Fourth Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Derivative Contract Gas Collar Waha | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 33,760 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.69 |
Weighted Avg Price - Ceiling (USD per unit) | 2.03 |
Derivative Contract Gas Collar Waha | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 8,100 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.52 |
Weighted Avg Price - Ceiling (USD per unit) | 1.83 |
Derivative Contract Gas Collar Waha | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 9,100 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.61 |
Weighted Avg Price - Ceiling (USD per unit) | 1.93 |
Derivative Contract Gas Collar Waha | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 8,280 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.82 |
Weighted Avg Price - Ceiling (USD per unit) | 2.17 |
Derivative Contract Gas Collar Waha | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 8,280 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.82 |
Weighted Avg Price - Ceiling (USD per unit) | 2.17 |
Derivative Contract Gas Collar Waha | 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 7,220 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2.09 |
Weighted Avg Price - Ceiling (USD per unit) | 2.50 |
Derivative Contract Gas Collar Waha | First Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 5,400 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 1.98 |
Weighted Avg Price - Ceiling (USD per unit) | 2.39 |
Derivative Contract Gas Collar Waha | Second Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 1,820 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 2.40 |
Weighted Avg Price - Ceiling (USD per unit) | 2.86 |
Derivative Contract Gas Collar Waha | Third Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
Derivative Contract Gas Collar Waha | Fourth Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (MMBtu) | MMBTU | 0 |
Weighted Average Price | |
Weighted Avg Price - Floor (USD per unit) | 0 |
Weighted Avg Price - Ceiling (USD per unit) | 0 |
WTI Midland Oil Basis Swaps | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 12,233,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | (0.04) |
WTI Midland Oil Basis Swaps | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 2,790,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.03 |
WTI Midland Oil Basis Swaps | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,003,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | (0.02) |
WTI Midland Oil Basis Swaps | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,220,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | (0.08) |
WTI Midland Oil Basis Swaps | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,220,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | (0.08) |
WTI Midland Oil Basis Swaps | 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,989,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.29 |
WTI Midland Oil Basis Swaps | First Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,980,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.25 |
WTI Midland Oil Basis Swaps | Second Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,365,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.31 |
WTI Midland Oil Basis Swaps | Third Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 644,000 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0.38 |
WTI Midland Oil Basis Swaps | Fourth Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Differential (USD per unit) | $ / bbl | 0 |
Derivative Contract Oil Roll Differential Swaps W T I Index | 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 4,943,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | (0.14) |
Derivative Contract Oil Roll Differential Swaps W T I Index | First Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 630,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | (0.24) |
Derivative Contract Oil Roll Differential Swaps W T I Index | Second Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,001,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | (0.22) |
Derivative Contract Oil Roll Differential Swaps W T I Index | Third Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,656,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | (0.10) |
Derivative Contract Oil Roll Differential Swaps W T I Index | Fourth Quarter - 2021 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,656,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | (0.10) |
Derivative Contract Oil Roll Differential Swaps W T I Index | 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 3,265,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | (0.03) |
Derivative Contract Oil Roll Differential Swaps W T I Index | First Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,620,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | (0.10) |
Derivative Contract Oil Roll Differential Swaps W T I Index | Second Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 1,001,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | (0.01) |
Derivative Contract Oil Roll Differential Swaps W T I Index | Third Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 644,000 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | 0.10 |
Derivative Contract Oil Roll Differential Swaps W T I Index | Fourth Quarter - 2022 | |
Fair values of derivative assets and liabilities | |
Volume (Bbls) | bbl | 0 |
Weighted Average Price | |
Weighted Avg Price (USD per unit) | $ / bbl | 0 |
DERIVATIVE INSTRUMENTS - (Gains
DERIVATIVE INSTRUMENTS - (Gains) / Losses from Cash Settlements of Derivative Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net (gains) and losses on derivative contracts | |||
Change in fair value of derivative instruments, net | $ 154,781 | $ 63,719 | $ (110,388) |
Cash (receipts) payments on derivative instruments, net | (119,247) | 13,131 | 24,429 |
(Gain) loss on derivative instruments, net | 35,534 | 76,850 | (85,959) |
Gas contracts | |||
Net (gains) and losses on derivative contracts | |||
Change in fair value of derivative instruments, net | 56,475 | (13,114) | 15,742 |
Cash (receipts) payments on derivative instruments, net | (15,476) | (40,114) | (13,794) |
Oil contracts | |||
Net (gains) and losses on derivative contracts | |||
Change in fair value of derivative instruments, net | 98,306 | 76,833 | (126,130) |
Cash (receipts) payments on derivative instruments, net | $ (103,771) | $ 53,245 | $ 38,223 |
DERIVATIVE INSTRUMENTS - Deri_2
DERIVATIVE INSTRUMENTS - Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Asset | ||
Derivative instruments - assets | $ 6,848 | $ 17,944 |
Liability | ||
Derivative instruments - liabilities | 145,398 | 16,681 |
Not Designated as Hedging Instrument | ||
Asset | ||
Derivative instruments - assets | 9,190 | 18,524 |
Less: gross amounts not offset in the balance sheet | (8,863) | (9,865) |
Net amount | 327 | 8,659 |
Liability | ||
Derivative instruments - liabilities | 163,147 | 17,699 |
Less: gross amounts not offset in the balance sheet | (8,863) | (9,865) |
Net amount | 154,284 | 7,834 |
Not Designated as Hedging Instrument | Oil contracts | Current Assets | ||
Asset | ||
Derivative instruments - assets | 5,425 | 1,624 |
Not Designated as Hedging Instrument | Oil contracts | Non-Current Assets | ||
Asset | ||
Derivative instruments - assets | 580 | |
Not Designated as Hedging Instrument | Oil contracts | Current Liabilities | ||
Liability | ||
Derivative instruments - liabilities | 106,507 | 16,681 |
Not Designated as Hedging Instrument | Oil contracts | Non-Current Liabilities | ||
Liability | ||
Derivative instruments - liabilities | 12,526 | 824 |
Not Designated as Hedging Instrument | Gas contracts | Current Assets | ||
Asset | ||
Derivative instruments - assets | 1,423 | 16,320 |
Not Designated as Hedging Instrument | Gas contracts | Non-Current Assets | ||
Asset | ||
Derivative instruments - assets | 2,342 | |
Not Designated as Hedging Instrument | Gas contracts | Current Liabilities | ||
Liability | ||
Derivative instruments - liabilities | 38,891 | |
Not Designated as Hedging Instrument | Gas contracts | Non-Current Liabilities | ||
Liability | ||
Derivative instruments - liabilities | $ 5,223 | $ 194 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 08, 2019 | Apr. 10, 2017 | Jun. 30, 2015 |
Financial Assets (Liabilities): | |||||
Derivative instruments - assets | $ 6,848 | $ 17,944 | |||
Derivative instruments - liabilities | (145,398) | (16,681) | |||
Level 2: Fair Value Inputs | Carrying Amount | |||||
Financial Assets (Liabilities): | |||||
Derivative instruments - assets | 9,190 | 18,524 | |||
Derivative instruments - liabilities | (163,147) | (17,699) | |||
Level 2: Fair Value Inputs | Fair Value | |||||
Financial Assets (Liabilities): | |||||
Derivative instruments - assets | 9,190 | 18,524 | |||
Derivative instruments - liabilities | (163,147) | (17,699) | |||
4.375% notes due 2024 | |||||
Financial Assets (Liabilities): | |||||
Interest rate (as a percent) | 4.375% | ||||
4.375% notes due 2024 | Carrying Amount | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | (750,000) | (750,000) | |||
4.375% notes due 2024 | Fair Value | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | (818,025) | (792,225) | |||
3.90% notes due 2027 | |||||
Financial Assets (Liabilities): | |||||
Interest rate (as a percent) | 3.90% | ||||
3.90% notes due 2027 | Carrying Amount | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | (750,000) | (750,000) | |||
3.90% notes due 2027 | Fair Value | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | (826,575) | (778,050) | |||
4.375% notes due 2029 | |||||
Financial Assets (Liabilities): | |||||
Interest rate (as a percent) | 4.375% | ||||
4.375% notes due 2029 | Carrying Amount | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | (500,000) | (500,000) | |||
4.375% notes due 2029 | Fair Value | |||||
Financial Assets (Liabilities): | |||||
Long-term debt | $ (567,250) | $ (530,400) |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)customer | Dec. 31, 2019USD ($)customer | Dec. 31, 2018customer | |
Concentration Risk | |||
Accrued operating expenses | $ 67.4 | $ 74.7 | |
Accrued general and administrative costs | 46.8 | $ 43.3 | |
Accrued payroll related general and administrative expenses | 34.1 | ||
Accrued voluntary early retirement incentive program and involuntary reduction in workforce accruals | $ 11.3 | ||
Number of major customers that each accounted for more than 10% of revenue | customer | 2 | 2 | 2 |
Revenue Benchmark | Customer One | Customer Concentration Risk | |||
Concentration Risk | |||
Percentage of sales to revenue, major customers (as a percent) | 26.00% | 29.00% | 21.00% |
Revenue Benchmark | Customer Two | Customer Concentration Risk | |||
Concentration Risk | |||
Percentage of sales to revenue, major customers (as a percent) | 23.00% | 25.00% | 23.00% |
Allowance for Trade Receivables | |||
Concentration Risk | |||
Aggregate allowance for doubtful accounts | $ 2.6 | $ 3.6 |
STOCK-BASED AND OTHER COMPENS_3
STOCK-BASED AND OTHER COMPENSATION - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Options, Restricted Stock and Unit Awards | |||
Maximum number of shares of common stock that may be issued under the Stock Incentive Plan (shares) | 6,300,000 | ||
Total stock-based compensation cost | $ 44,812 | $ 49,104 | $ 45,924 |
Less amounts capitalized to oil and gas properties | (14,917) | (22,706) | (23,029) |
Stock-based compensation expense | $ 29,895 | 26,398 | 22,895 |
Vesting amount up to percentage paid in shares (as a percent) | 100.00% | ||
Vesting amount above percentage paid in cash (as a percent) | 100.00% | ||
Restricted Stock | |||
Options, Restricted Stock and Unit Awards | |||
Total stock-based compensation cost | $ 43,352 | $ 47,201 | $ 43,468 |
Restricted stock granted (shares) | 1,158,892 | 946,381 | 592,971 |
Restricted stock granted, weighted average grant-date fair value (USD per share) | $ 34.01 | $ 46.38 | $ 83.16 |
Performance Based Restricted Stock | |||
Options, Restricted Stock and Unit Awards | |||
Total stock-based compensation cost | $ 17,338 | $ 21,590 | $ 23,083 |
Restricted stock granted (shares) | 311,974 | 264,393 | 123,533 |
Restricted stock granted, weighted average grant-date fair value (USD per share) | $ 29.84 | $ 47.66 | $ 90.26 |
Vesting period | 3 years | ||
Performance Based Restricted Stock | Minimum | |||
Options, Restricted Stock and Unit Awards | |||
Award vesting rate (as a percent) | 0.00% | ||
Performance Based Restricted Stock | Maximum | |||
Options, Restricted Stock and Unit Awards | |||
Award vesting rate (as a percent) | 200.00% | ||
Service Based Restricted Stock | |||
Options, Restricted Stock and Unit Awards | |||
Total stock-based compensation cost | $ 26,014 | $ 25,611 | $ 20,385 |
Restricted stock granted (shares) | 846,918 | 681,988 | 469,438 |
Restricted stock granted, weighted average grant-date fair value (USD per share) | $ 35.54 | $ 45.88 | $ 81.29 |
Service Based Restricted Stock | Minimum | |||
Options, Restricted Stock and Unit Awards | |||
Vesting period | 1 year | ||
Service Based Restricted Stock | Maximum | |||
Options, Restricted Stock and Unit Awards | |||
Vesting period | 5 years | ||
Service Based Restricted Stock | Average | |||
Options, Restricted Stock and Unit Awards | |||
Vesting period | 5 years | ||
Employee Stock Option | |||
Options, Restricted Stock and Unit Awards | |||
Total stock-based compensation cost | $ 1,460 | $ 1,903 | $ 2,456 |
Vesting period | 3 years |
STOCK-BASED AND OTHER COMPENS_4
STOCK-BASED AND OTHER COMPENSATION - Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock | |||
Restricted stock and unit activity | |||
Granted (shares) | 1,158,892 | 946,381 | 592,971 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Granted (USD per share) | $ 34.01 | $ 46.38 | $ 83.16 |
Fair value of resticted stock vested | $ 12,000 | $ 15,100 | $ 34,100 |
Unrecognized compensation cost of unvested restricted stock | $ 84,200 | ||
Unrecognized compensation cost of unvested restricted stock, period for recognition | 2 years 7 months 6 days | ||
Service Based Restricted Stock | |||
Restricted stock and unit activity | |||
Outstanding at beginning of period (shares) | 1,639,069 | ||
Vested (shares) | (237,616) | ||
Granted (shares) | 846,918 | 681,988 | 469,438 |
Canceled (shares) | 0 | ||
Forfeited (shares) | (155,450) | ||
Outstanding at end of period (shares) | 2,092,921 | 1,639,069 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding beginning of period (USD per share) | $ 74.51 | ||
Vested (USD per share) | 94.23 | ||
Granted (USD per share) | 35.54 | $ 45.88 | $ 81.29 |
Canceled (USD per share) | 0 | ||
Forfeited (USD per share) | 78.43 | ||
Outstanding end of period (USD per share) | $ 56.21 | $ 74.51 | |
Performance Based Restricted Stock | |||
Restricted stock and unit activity | |||
Outstanding at beginning of period (shares) | 664,977 | ||
Vested (shares) | (205,746) | ||
Granted (shares) | 311,974 | 264,393 | 123,533 |
Canceled (shares) | (119,521) | ||
Forfeited (shares) | 0 | ||
Outstanding at end of period (shares) | 651,684 | 664,977 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding beginning of period (USD per share) | $ 72.99 | ||
Vested (USD per share) | 82.83 | ||
Granted (USD per share) | 29.84 | $ 47.66 | $ 90.26 |
Canceled (USD per share) | 89.46 | ||
Forfeited (USD per share) | 0 | ||
Outstanding end of period (USD per share) | $ 46.20 | $ 72.99 | |
Unrecognized compensation cost of unvested restricted stock | $ 3,500 | ||
Liability associated with liability-classified stock awards | $ 70 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Awards outstanding (shares) | 8,838 | 8,838 |
STOCK-BASED AND OTHER COMPENS_5
STOCK-BASED AND OTHER COMPENSATION - Options, Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Grant-Date Fair value | |||
Cash received from option exercises | $ 0 | $ 1,267 | $ 2,241 |
Employee Stock Option | |||
Options, Restricted Stock and Unit Awards | |||
Vesting period | 3 years | ||
Assumptions used to determine the fair market value of options | |||
Granted (shares) | 194,900 | 132,900 | 92,050 |
Granted (USD per share) | $ 12.61 | $ 12.14 | $ 26.71 |
Weighted average exercise price (USD per share) | $ 34.06 | $ 42.78 | $ 83.28 |
Total fair value of options granted | $ 2,458 | $ 1,613 | $ 2,458 |
Expected years until exercise | 4 years 10 months 24 days | 4 years 10 months 24 days | 5 years |
Expected stock volatility (as a percent) | 53.90% | 37.10% | 34.70% |
Dividend yield (as a percent) | 2.60% | 1.90% | 0.90% |
Risk-free interest rate (as a percent) | 0.40% | 1.40% | 2.70% |
Number of Options | |||
Outstanding balance at beginning of period (shares) | 495,538 | ||
Exercised (shares) | 0 | ||
Granted (shares) | 194,900 | 132,900 | 92,050 |
Canceled (shares) | (107,025) | ||
Forfeited (shares) | (36,036) | ||
Outstanding balance at end of period (shares) | 547,377 | 495,538 | |
Exercisable at end of period (shares) | 271,827 | ||
Weighted Average Exercise Price | |||
Outstanding balance at beginning of period (USD per share) | $ 87.17 | ||
Exercised (USD per share) | 0 | ||
Granted (USD per share) | 34.06 | ||
Canceled (USD per share) | 94.29 | ||
Forfeited (USD per share) | 55.69 | ||
Outstanding balance at end of period (USD per share) | 68.94 | $ 87.17 | |
Exercisable at end of period (USD per share) | $ 99.38 | ||
Weighted Average Remaining Term | |||
Weighted average remaining term, outstanding at end of period | 4 years 7 months 6 days | ||
Weighted average remaining term, exercisable at end of period | 3 years | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value outstanding at end of period | $ 711 | ||
Aggregate intrinsic value exercisable at the end of the period | 0 | ||
Grant-Date Fair value | |||
Cash received from option exercises | 0 | $ 1,267 | $ 2,241 |
Intrinsic value of options exercised | 0 | 425 | 1,030 |
Grant date fair value of options vested | $ 1,855 | $ 2,262 | $ 2,547 |
Number of Options | |||
Non-vested at beginning of period (shares) | 208,255 | ||
Vested (shares) | (91,569) | ||
Granted (shares) | 194,900 | 132,900 | 92,050 |
Forfeited (shares) | (36,036) | ||
Non-vested at end of period (shares) | 275,550 | 208,255 | |
Weighted Average Grant Date Fair Value | |||
Non-vested at beginning of period (USD per share) | $ 17.60 | ||
Vested (USD per share) | 20.26 | ||
Granted (USD per share) | 12.61 | $ 12.14 | $ 26.71 |
Forfeited (USD per share) | 16.74 | ||
Non-vested at end of period (USD per share) | 17.60 | ||
Weighted Average Exercise Price | |||
Non-vested at beginning of period (USD per share) | 58.47 | ||
Vested (USD per share) | 66.47 | ||
Granted (USD per share) | 34.06 | ||
Forfeited (USD per share) | 55.69 | ||
Non-vested at end of period (USD per share) | $ 58.47 | ||
Unrecognized compensation cost of unvested restricted stock | $ 3,200 | ||
Unrecognized compensation cost of unvested restricted stock, period for recognition | 2 years 2 months 12 days | ||
Maximum | Employee Stock Option | |||
Options, Restricted Stock and Unit Awards | |||
Term of options from grant to expiration | 7 years |
STOCK-BASED AND OTHER COMPENS_6
STOCK-BASED AND OTHER COMPENSATION - Other Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Annual costs related to the plan | $ 8.2 | $ 8.7 | $ 13.1 |
EARNINGS (LOSS) PER SHARE - Sum
EARNINGS (LOSS) PER SHARE - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings per share: | |||
Net (loss) income | $ (1,967,458) | $ (124,619) | $ 791,851 |
Plus: return from repurchase of redeemable preferred stock | 1,810 | ||
Less: dividends and net income attributable to participating securities | (1,808) | (1,519) | (11,087) |
Less: redeemable preferred stock dividends | (4,861) | (5,078) | |
Loss available to common stockholders | (1,972,317) | (131,216) | 780,764 |
Diluted earnings per share: | |||
Effects of dilutive securities - options | 0 | 0 | 3 |
Loss available to common stockholders and assumed conversions | $ (1,972,317) | $ (131,216) | $ 780,767 |
Shares (Denominator) | |||
Basic stock outstanding (shares) | 99,952,000 | 98,789,000 | 93,793,000 |
Effects of dilutive securities - options (shares) | 0 | 0 | 27,000 |
Fully diluted common stock (shares) | 99,952,000 | 98,789,000 | 93,820,000 |
Earnings (loss) per share to common stockholders | |||
Basic (USD per share) | $ (19.73) | $ (1.33) | $ 8.32 |
Diluted (USD per share) | $ (19.73) | $ (1.33) | $ 8.32 |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded antidilutive securities (shares) | 547,400 | 491,100 | 392,800 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded antidilutive securities (shares) | 512,400 | 426,400 | |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded antidilutive securities (shares) | 8,800 | 37,400 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligations | ||
Balance at beginning of year | $ 181,869 | $ 166,904 |
Liabilities incurred | 4,491 | 21,511 |
Liability settlements and disposals | (21,922) | (19,595) |
Accretion expense | 7,485 | 7,499 |
Revisions of estimated liabilities | 5,944 | 5,550 |
Balance at end of year | 177,867 | 181,869 |
Less current obligation | 12,272 | 27,824 |
Long-term asset retirement obligation | $ 165,595 | $ 154,045 |
ASSET RETIREMENT OBLIGATIONS _2
ASSET RETIREMENT OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Liabilities incurred | $ 4,491 | $ 21,511 |
Resolute | ||
Business Acquisition [Line Items] | ||
Liabilities incurred | $ 9,400 |
INCOME TAXES - Components of th
INCOME TAXES - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current taxes: | |||
Federal benefit | $ (198) | $ 0 | $ (3,007) |
State expense | 167 | 532 | 383 |
Current taxes (benefit) | (31) | 532 | (2,624) |
Deferred taxes: | |||
Federal (benefit) expense | (323,597) | (24,055) | 211,717 |
State (benefit) expense | (35,299) | (2,847) | 21,563 |
Deferred income taxes | (358,896) | (26,902) | 233,280 |
Income tax (benefit) expense | $ (358,927) | $ (26,370) | $ 230,656 |
INCOME TAXES - Reconciliations
INCOME TAXES - Reconciliations of the Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliations of the income tax (benefit) expense | |||
Provision at statutory rate | $ (488,541) | $ (31,708) | $ 214,726 |
Effect of state taxes | (29,467) | (1,717) | 18,795 |
Acquisition-related costs | 0 | 1,318 | 0 |
Tax credits and other permanent differences | 1,365 | 2,548 | 1,583 |
Change in valuation allowance, net | (4,221) | 0 | (1,376) |
Stock-based compensation | 11,903 | 3,189 | (3,072) |
Goodwill impairment | 150,034 | 0 | 0 |
Income tax (benefit) expense | $ (358,927) | $ (26,370) | $ 230,656 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Mar. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Items [Abstract] | |||
U.S. net tax operating loss carryforward | $ 1,997,000 | ||
Oil recovery and marginal well tax credit carryforward | 4,200 | ||
Unrecognized tax benefits that would impact the entity's effective rate | 0 | $ 0 | |
Provisions for interest or penalties related to uncertain tax positions | 0 | 0 | |
Domestic | |||
Income Tax Items [Abstract] | |||
Net tax operating loss carryforward subject to expiration | 1,773,000 | ||
Net tax operating loss carryforward not subject to expiration | 224,400 | ||
State | |||
Income Tax Items [Abstract] | |||
Change in valuation allowance on net operating losses | 1,700 | ||
Valuation allowance on net operating losses | 120,700 | ||
Resolute | |||
Income Tax Items [Abstract] | |||
Deferred tax liability | $ 62,409 | $ 31,072 | |
Proportion of ownership interest change (as a percent) | 50.00% | ||
Period of recognition of built-in gains | 5 years | ||
Limitation amount | $ 19,600 | ||
Limited amount of net unrealized built-in gain projection | $ 291,000 | 253,900 | |
Resolute | Domestic | |||
Income Tax Items [Abstract] | |||
Valuation allowance against net operating losses | $ 34,000 | 57,600 | |
Change in valuation allowance against net operating losses | $ (13,500) | ||
Capital loss | 67,200 | ||
Credit carryforwards | $ 4,000 |
INCOME TAXES - Components of Ne
INCOME TAXES - Components of Net Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Stock-based compensation and other accrued amounts | $ 59,659 | $ 31,521 |
Net operating loss and other carryforwards, net of valuation allowance | 456,613 | 454,743 |
Credit carryforward, net of valuation allowance | 4,223 | 3,936 |
Gross deferred tax assets | 520,495 | 490,200 |
Liabilities: | ||
Property, plant and equipment | (500,023) | (828,624) |
Net deferred tax assets (liabilities) | $ 20,472 | |
Net deferred tax assets (liabilities) | $ (338,424) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)leaseBcf | Dec. 31, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
Number of finance leases | lease | 1 | |
Remaining lease term of finance leases | 4 years 8 months 12 days | |
Right-of-use asset exchange for operating lease liability | $ 42.7 | $ 91.7 |
Maximum financial commitment resulting from inability to meet water delivery commitments | 64.1 | |
Other Transportation, Delivery And Facilities Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Other commitments | 4.3 | |
Maximum financial commitment resulting from inability to meet gas delivery commitments | $ 16.6 | |
Natural Gas Sales Contracts | ||
Long-term Purchase Commitment [Line Items] | ||
Volume of gas deliverable (Bcf) | Bcf | 470.3 | |
Delivery term | 10 years 6 months | |
Maximum financial commitment resulting from inability to meet gas delivery commitments | $ 908.1 | |
Gas Gathering And Processing Agreements | ||
Long-term Purchase Commitment [Line Items] | ||
Delivery term | 8 years | |
Maximum financial commitment resulting from inability to meet gas delivery commitments | $ 640.7 | |
Minimum Volume Agreement | ||
Long-term Purchase Commitment [Line Items] | ||
Maximum financial commitment resulting from inability to meet gas delivery commitments | 104.7 | |
Financial commitment resulting from inability to meet gas delivery commitments, insufficient forecasted volumes | 4.3 | |
Drilling Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments for purchases and other expenditures | $ 224.2 | |
Minimum | ||
Long-term Purchase Commitment [Line Items] | ||
Delivery term | 1 month | |
Building | Minimum | ||
Long-term Purchase Commitment [Line Items] | ||
Remaining lease term of operating leases | 3 years 4 months 24 days | |
Building | Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Remaining lease term of operating leases | 5 years 8 months 12 days | |
Energy equipment | Minimum | ||
Long-term Purchase Commitment [Line Items] | ||
Remaining lease term of operating leases | 1 month | |
Energy equipment | Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Remaining lease term of operating leases | 10 years 4 months 24 days | |
Exploration and production equipment | Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Remaining lease term of operating leases | 12 months |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Right-of-Use Assets and Estimated Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease right-of-use assets | $ 185,118 | $ 240,263 |
Finance lease right-of-use asset | 25,052 | 24,849 |
Total right-of-use assets | 210,170 | 265,112 |
Operating lease liabilities — current | 59,051 | 66,003 |
Operating lease liabilities — non-current | 134,705 | 184,172 |
Finance lease liability — current | 7,099 | 7,328 |
Finance lease liability — non-current | 19,731 | 18,749 |
Total lease liabilities | $ 220,586 | $ 276,252 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Amounts Recognized In Income and Amounts Capitalized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease cost: | ||
Amortization of right-of-use asset | $ 5,286 | $ 4,385 |
Interest on lease liability | 1,663 | 1,719 |
Operating lease cost | ||
Short-term lease, cost | 235,840 | 539,110 |
Total lease cost | 297,781 | 601,471 |
Variable lease cost | 3,200 | 3,100 |
Production expense | ||
Operating lease cost | ||
Operating lease, cost | 19,914 | 20,965 |
Transportation, processing, and other operating | ||
Operating lease cost | ||
Operating lease, cost | 21,386 | 17,264 |
Gas gathering and other expense | ||
Operating lease cost | ||
Operating lease, cost | 991 | 5,607 |
General and administrative expense | ||
Operating lease cost | ||
Operating lease, cost | $ 12,701 | $ 12,421 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Summarizes Estimated Cash Paid For Our Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Financing cash outflows from finance lease | $ 4,842 | $ 3,869 | $ 0 |
Operating cash outflows from operating leases | 53,066 | 54,044 | |
Cash paid for short-term leases and variable lease payments: | |||
Operating cash outflows from operating leases | 3,169 | 3,103 | |
Investing cash outflows from operating leases | $ 235,024 | $ 551,325 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Weighted-Average Remaining Lease Terms (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted-average remaining lease term (in years): | ||
Finance lease | 4 years 8 months 12 days | 5 years 10 months 24 days |
Operating leases | 3 years 10 months 24 days | 4 years 1 month 6 days |
Weighted-average discount rate: | ||
Finance lease | 6.30% | 5.70% |
Operating leases | 5.00% | 3.90% |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES - Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases | |
January 1, 2021 — December 31, 2021 | $ 67,330 |
January 1, 2022 — December 31, 2022 | 61,595 |
January 1, 2023 — December 31, 2023 | 41,567 |
January 1, 2024 — December 31, 2024 | 21,259 |
January 1, 2025 — December 31, 2025 | 8,438 |
Remaining periods | 14,695 |
Total undiscounted future cash flows | 214,884 |
Less effects of discounting | (21,128) |
Lease liabilities recognized | 193,756 |
Finance Lease | |
January 1, 2021 — December 31, 2021 | 7,618 |
January 1, 2022 — December 31, 2022 | 6,666 |
January 1, 2023 — December 31, 2023 | 6,340 |
January 1, 2024 — December 31, 2024 | 6,015 |
January 1, 2025 — December 31, 2025 | 3,829 |
Remaining periods | 0 |
Total undiscounted future cash flows | 30,468 |
Less effects of discounting | (3,638) |
Lease liabilities recognized | $ 26,830 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Helmerich and Payne | |||
Related Party Transactions | |||
Contract drilling services costs | $ 24.9 | $ 72.8 | $ 80.1 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid during the period for: | |||
Interest expense, net | $ 41,407 | $ 50,601 | $ 45,357 |
Income taxes | 300 | 1,364 | 0 |
Cash received for income tax refunds | 2,118 | 2,033 | 760 |
Capitalized interest | $ 48,306 | 49,944 | $ 19,969 |
Interest paid upon redemption of debt | $ 17,600 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narrative (Details) - USD ($) | Mar. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Mar. 08, 2019 | Jun. 30, 2015 |
Business Acquisition [Line Items] | ||||||||||
Net cash proceeds received | $ 69,983,000 | $ 28,945,000 | $ 580,652,000 | |||||||
Gain (loss) on extinguishment of debt | $ 4,300,000 | 0 | 4,250,000 | 0 | ||||||
Goodwill | $ 0 | $ 716,865,000 | 0 | 716,865,000 | $ 716,865,000 | |||||
Impairment of oil and gas properties | 1,638,329,000 | 618,693,000 | $ 0 | |||||||
Ward County, TX | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net cash proceeds received | $ 534,600,000 | |||||||||
Water Disposal Infrastructure in Eddy County, New Mexico | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Net cash proceeds received | 68,700,000 | |||||||||
Resolute | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total purchase price | 820,312,000 | |||||||||
Increase (decrease) in fair value of unproved oil and gas properties | (30,314,000) | |||||||||
Deferred income taxes | $ (6,900,000) | $ (31,337,000) | (24,400,000) | |||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent liabilities | $ 870,000,000 | 870,000,000 | 870,000,000 | |||||||
Goodwill | 107,341,000 | $ 94,215,000 | 94,215,000 | |||||||
Business combination, acquisition related costs | $ 8,400,000 | $ 3,000,000 | $ 11,400,000 | |||||||
Senior notes | Resolute | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent liabilities | 600,000,000 | |||||||||
Line of credit | Resolute | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent liabilities | $ 270,000,000 | |||||||||
4.375% notes due 2029 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Interest rate (as a percent) | 4.375% | |||||||||
4.375% notes due 2029 | Senior notes | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||
4.375% Notes due 2024 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Interest rate (as a percent) | 4.375% | |||||||||
4.375% Notes due 2024 | Senior notes | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt instrument, face amount | $ 500,000,000 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Consideration Transferred (Details) - Resolute shares in Thousands, $ in Thousands | Mar. 01, 2019USD ($)shares |
Business Acquisition [Line Items] | |
Cash | $ 325,677 |
Total purchase price | 820,312 |
Common stock (5,652 shares issued) | |
Business Acquisition [Line Items] | |
Stock | $ 413,015 |
Stock issued in acquisition (shares) | shares | 5,652 |
Preferred stock (63 shares issued) | |
Business Acquisition [Line Items] | |
Stock | $ 81,620 |
Stock issued in acquisition (shares) | shares | 63 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 716,865 | $ 0 | |
Adjustments | |||
Goodwill | (2,418) | ||
Resolute | |||
Business Acquisition [Line Items] | |||
Cash | $ 41,236 | 41,236 | |
Accounts receivable | 50,739 | 62,260 | |
Other current assets | 13,280 | 12,104 | |
Proved oil and gas properties | 692,600 | 692,600 | |
Unproved oil and gas properties | 1,054,200 | 1,023,886 | |
Fixed assets | 5,355 | 5,323 | |
Goodwill | 107,341 | 94,215 | |
Other assets | 142 | 142 | |
Current liabilities | (202,735) | (200,945) | |
Long-term debt | (870,000) | (870,000) | |
Deferred income taxes | (62,409) | (31,072) | |
Asset retirement obligation | (9,437) | (9,437) | |
Total identifiable net assets | 820,312 | 820,312 | |
Adjustments | |||
Cash | 0 | ||
Accounts receivable | 11,521 | ||
Other current assets | (1,176) | ||
Proved oil and gas properties | 0 | ||
Unproved oil and gas properties | (30,314) | ||
Fixed assets | (32) | ||
Goodwill | (13,126) | ||
Other assets | 0 | ||
Current liabilities | 1,790 | ||
Long-term debt | 0 | ||
Deferred income taxes | $ 6,900 | 31,337 | $ 24,400 |
Asset retirement obligation | 0 | ||
Total identifiable net assets | $ 0 |
ACQUISITIONS AND DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - Pro Forma Financial Information (Details) - Resolute - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
Revenue | $ 2,416,105 | $ 2,667,561 |
Net (loss) income | $ (139,553) | $ 872,140 |
Net (loss) income per common share: | ||
Basic (USD per share) | $ (1.47) | $ 8.65 |
Diluted (USD per share) | $ (1.47) | $ 8.65 |