Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document and Entity Information | |
Entity Registrant Name | CIMAREX ENERGY CO |
Entity Central Index Key | 1,168,054 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 94,559,630 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
CONDENSED BALANCE SHEETS
CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 899,312 | $ 405,862 |
Receivables, net | 260,060 | 412,108 |
Oil and gas well equipment and supplies | 65,096 | 89,780 |
Deferred income taxes | 6,863 | 13,475 |
Derivative instruments | 1,501 | |
Prepaid expenses | 4,229 | 9,356 |
Other current assets | 1,400 | 1,223 |
Total current assets | 1,238,461 | 931,804 |
Oil and gas properties at cost, using the full cost method of accounting: | ||
Proved properties | 15,206,618 | 14,402,064 |
Unproved properties and properties under development, not being amortized | 584,799 | 759,149 |
Gross oil and gas properties | 15,791,417 | 15,161,213 |
Less - accumulated depreciation, depletion, amortization and impairment | (11,597,715) | (8,257,502) |
Net oil and gas properties | 4,193,702 | 6,903,711 |
Fixed assets, net | 229,136 | 211,031 |
Goodwill | 620,232 | 620,232 |
Derivative instruments | 467 | |
Other assets, net | 54,364 | 58,515 |
Total assets | 6,336,362 | 8,725,293 |
Current liabilities: | ||
Accounts payable: | 71,620 | 138,051 |
Accrued liabilities: | 286,760 | 447,384 |
Revenue payable | 122,728 | 190,892 |
Total current liabilities | 481,108 | 776,327 |
Long-term debt | 1,500,000 | 1,500,000 |
Deferred income taxes | 733,371 | 1,754,706 |
Other liabilities | 187,916 | 193,628 |
Total liabilities | $ 2,902,395 | $ 4,224,661 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 15,000,000 shares authorized, no shares issued | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 94,559,630 and 87,592,535 shares issued, respectively | $ 946 | $ 876 |
Paid-in capital | 2,753,768 | 1,997,080 |
Retained earnings | 678,950 | 2,501,574 |
Accumulated other comprehensive income | 303 | 1,102 |
Total stockholders' equity | 3,433,967 | 4,500,632 |
Total liabilities and stockholders' equity | $ 6,336,362 | $ 8,725,293 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Condensed Consolidated Balance Sheets | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 15,000,000 | 15,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 94,559,630 | 87,592,535 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Oil sales | $ 192,501 | $ 348,276 | $ 647,850 | $ 1,028,229 |
Gas sales | 114,649 | 176,539 | 331,985 | 519,139 |
NGL sales | 40,159 | 111,701 | 135,236 | 297,128 |
Gas gathering and other | 8,754 | 12,951 | 26,165 | 39,699 |
Gas marketing, net | (8) | 273 | 104 | 1,430 |
Total revenues | 356,055 | 649,740 | 1,141,340 | 1,885,625 |
Costs and expenses: | ||||
Impairment of oil and gas properties | 1,180,649 | 2,751,535 | ||
Depreciation, depletion and amortization | 185,654 | 219,359 | 619,883 | 588,279 |
Asset retirement obligation | 2,615 | 1,420 | 6,393 | 8,288 |
Production | 69,334 | 89,084 | 222,145 | 250,310 |
Transportation, processing and other operating | 46,290 | 54,573 | 129,645 | 145,299 |
Gas gathering and other | 8,429 | 8,588 | 28,599 | 27,413 |
Taxes other than income | 19,717 | 33,510 | 67,678 | 99,454 |
General and administrative | 20,413 | 20,240 | 50,405 | 57,523 |
Stock compensation | 4,737 | 3,603 | 14,880 | 10,875 |
(Gain) loss on derivative instruments, net | (1,968) | (9,229) | (1,968) | 8,960 |
Other operating, net | 60 | (181) | 844 | 34 |
Total costs and expenses | 1,535,930 | 420,967 | 3,890,039 | 1,196,435 |
Operating income (loss) | (1,179,875) | 228,773 | (2,748,699) | 689,190 |
Other (income) and expense: | ||||
Interest expense | 21,416 | 20,879 | 63,969 | 51,645 |
Capitalized interest | (7,100) | (10,005) | (25,087) | (25,870) |
Other, net | (2,375) | (11,123) | (9,814) | (22,207) |
Income (loss) before income tax | (1,191,816) | 229,022 | (2,777,767) | 685,622 |
Income tax expense (benefit) | (428,532) | 84,707 | (999,327) | 254,210 |
Net income (loss) | $ (763,284) | $ 144,315 | $ (1,778,440) | $ 431,412 |
Earnings (loss) per share to common stockholders: | ||||
Basic (in dollars per share) | $ (8.21) | $ 1.65 | $ (19.14) | $ 4.94 |
Diluted (in dollars per share) | (8.21) | 1.65 | (19.14) | 4.94 |
Dividends per share | $ 0.16 | $ 0.16 | $ 0.48 | $ 0.48 |
Comprehensive income (loss): | ||||
Net income (loss) | $ (763,284) | $ 144,315 | $ (1,778,440) | $ 431,412 |
Other comprehensive income: | ||||
Change in fair value of investments, net of tax | (609) | (123) | (800) | (139) |
Total comprehensive income (loss) | $ (763,893) | $ 144,192 | $ (1,779,240) | $ 431,273 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,778,440) | $ 431,412 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Impairment of oil and gas properties | 2,751,535 | |
Depreciation, depletion and amortization | 619,883 | 588,279 |
Asset retirement obligation | 6,393 | 8,288 |
Deferred income taxes | (1,014,264) | 254,210 |
Stock compensation | 14,880 | 10,875 |
(Gain) loss on derivative instruments | (1,968) | 8,960 |
Settlements on derivative instruments | (6,015) | |
Changes in non-current assets and liabilities | 16,343 | (1,873) |
Other, net | 3,494 | (2,384) |
Changes in operating assets and liabilities: | ||
Receivables, net | 151,783 | (63,091) |
Other current assets | 29,634 | (26,110) |
Accounts payable and other current liabilities | (222,727) | 69,419 |
Net cash provided by operating activities | 576,546 | 1,271,970 |
Cash flows from investing activities: | ||
Oil and gas expenditures | (771,029) | (1,630,929) |
Sales of oil and gas assets | 38,343 | 451,710 |
Sales of other assets | 1,057 | 8,178 |
Other capital expenditures | (58,085) | (76,784) |
Net cash used by investing activities | (789,714) | (1,247,825) |
Cash flows from financing activities: | ||
Net bank debt borrowings | (174,000) | |
Proceeds from other long-term debt | 750,000 | |
Proceeds from sale of common stock | 752,100 | |
Financing and underwriting fees | (22,663) | (11,616) |
Dividends paid | (43,211) | (39,932) |
Proceeds from exercise of stock options and other | 20,392 | 10,529 |
Net cash provided by financing activities | 706,618 | 534,981 |
Net change in cash and cash equivalents | 493,450 | 559,126 |
Cash and cash equivalents at beginning of period | 405,862 | 4,531 |
Cash and cash equivalents at end of period | $ 899,312 | $ 563,657 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited financial statements have been prepared by Cimarex Energy Co. (“Cimarex,” “we” or “us”) pursuant to rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, certain disclosures required by accounting principles generally accepted in the United States and normally included in Annual Reports on Form 10-K have been omitted. Although management believes that our disclosures in these interim financial statements are adequate, they should be read in conjunction with the financial statements, summary of significant accounting policies, and footnotes included in our Annual Report on Form 10-K/A for the year ended December 31, 2014 . In the opinion of management, the accompanying financial statements reflect all adjustments necessary to present fairly our financial position, results of operations, and cash flows for the periods and as of the dates shown. We have evaluated subsequent events through the date of this filing. Use of Estimates Areas of significance requiring the use of management’s judgments relate to the estimation of proved oil and gas reserves, the use of proved reserves in calculating depletion, depreciation, and amortization (DD&A), estimates of future net revenues in computing ceiling test limitations and estimates of future abandonment obligations used in recording asset retirement obligations, and the assessment of goodwill. Estimates and judgments also are required in determining allowance for bad debt, impairments of undeveloped properties and other assets, purchase price allocation, valuation of deferred tax assets, fair value measurements and contingencies. Oil and Gas Well Equipment and Supplies Our oil and gas well equipment and supplies are valued at the lower of cost or market using weighted average cost. An analysis of our oil and gas well equipment and supplies was performed and no impairment was required. However, the industry-wide decline in drilling operations has put downward pressure on the price of oil and gas well equipment and supplies. Further declines 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. Accounting rules require us to perform a quarterly ceiling test calculation to test our oil and gas properties for possible impairment. If the net capitalized cost of our oil and gas properties subject to amortization (the carrying value) exceeds the ceiling limitation, the excess is charged to expense. The ceiling limitation is equal to the sum of the present value discounted at 10% of estimated future net cash flows from proved reserves, the cost of properties not being amortized, the lower of cost or estimated fair value of unproven properties included in the costs being amortized, and all related tax effects. Estimated future net cash flows are determined by commodity prices and proved reserve quantities. At September 30, 2015 , the carrying value of our oil and gas properties subject to the test exceeded the calculated value of the ceiling limitation, and we recognized an impairment of $1.2 b illion ( $750.2 million, net of tax). We also recognized impairments in the first and second quarters of 2015. Year-to-date impairments totaled $2.8 billion ( $1.7 billion, net of tax). Th ese impairment s resulted primarily from the impact of decreases in the 12-month average trailing prices for oil, natural gas and NGLs utilized in determining the future net cash flows from proved reserves. If pricing conditions stay at current levels or decline further, or if there is a negative impact on one or more of the other components of the calculation, we will incur full cost ceiling impairments in future quarters. T he ceiling calculation 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 stockholders’ equity. Any recorded impairment of oil and gas properties is not reversible at a later date. Accounts Receivable, Accounts Payable and Accrued Liabilities The components of our accounts receivable, accounts payable and accrued liabilities are shown below: September 30, December 31, (in thousands) 2015 2014 Receivables, net of allowance Trade $ $ Oil and gas sales Gas gathering, processing, and marketing Other Receivables, net $ $ Accounts payable Trade $ $ Gas gathering, processing, and marketing Accounts payable $ $ Accrued liabilities Exploration and development $ $ Taxes other than income Other Accrued liabilities $ $ Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU ) 2014-09, Revenue from Contracts with Customers (Topic 606). In July 2015, the FASB deferred the effective date by one year to annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted, but not before the original effective date of reporting periods beginning after December 15, 2016. We do not intend to adopt the standard early and are currently evaluating the potential impact of this guidance. At this time we do not expect that the adoption of this standard will have a material effect on our financial position or results of operation and related disclosures . |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2015 | |
Capital Stock | |
Capital Stock | 2. Capital Stock Authorized capital stock consists of 200 million shares of common stock and 15 million shares of preferred stock. At September 30, 2015 , there were no shares of preferred stock outstanding. A summary of our common stock activity for the nine months ended September 30, 2015 follows: (in thousands) Issued and outstanding as of December 31, 2014 Issuance of common stock Issuance of performance stock awards Issuance of service-based restricted stock awards Restricted stock forfeited and retired Common stock reacquired and retired Option exercises, net of cancellations Issued and outstanding as of September 30, 2015 In May 2015, we completed an underwritten public offering of 6,900,000 shares of common stock, which included 900,000 shares of common stock issued pursuant to an overallotment option to purchase additional shares granted to the underwriters. The stock was sold to the public at $109.00 per share, with a par value of $0.01 , and we received net proceeds of approximately $730 million from the sale of these shares of common stock, after deducting underwriting fees. Dividends In September 2015, the Board of Directors declared a cash dividend of $0.16 per share. The dividend is payable on December 1, 2015, to stockholders of record on November 1 3 , 2015. Future dividend payments will depend on our level of earnings, financing requirements, and other factors considered relevant by the Board of Directors. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2015 | |
STOCK-BASED COMPENSATION | |
Stock-based Compensation | 3. Stock-based Compensation 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. Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Restricted stock awards Performance stock awards $ $ $ $ Service-based stock awards Stock option awards Less amounts capitalized to oil and gas properties Compensation expense $ $ $ $ The increase in compensation expense is primarily due to performance stock awards granted in December 2014 , a portion of which were amortized during the 2015 periods . |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligations | |
Asset Retirement Obligations | 4. Asset Retirement Obligations We recognize 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 associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. This liability includes costs related to the plugging and abandonment of wells, the removal of facilities and equipment, and site restorations. Subsequent to initial measurement, the asset retirement liability is required to be accreted each period. 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. Capitalized costs are included as a component of the DD&A calculations. The following table reflects the components of the change in the carrying amount of the asset retirement obligation for the nine months ended September 30, 2015 : (in thousands) Asset retirement obligation at January 1, 2015 $ Liabilities incurred Liability settlements and disposals Accretion expense Revisions of estimated liabilities Asset retirement obligation at September 30, 2015 Less current obligation Long-term asset retirement obligation $ During the first nine months of 2015, the liability settlements and disposals included $12.6 million related to properties that were sold. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2015 | |
Long-Term Debt | |
Long-Term Debt | 5. Long-Term Debt Debt at September 30, 2015 and December 31, 2014 consisted of the following: September 30, December 31, (in thousands) 2015 2014 5.875% Senior Notes, due May 1, 2022 $ $ 4.375% Senior Notes, due June 1, 2024 Total long-term debt $ $ All of our long-term debt is senior unsecured debt and is pari passu with respect to the payment of both principal and interest. Bank Debt In October 2015, we entered into a new senior unsecured revolving credit facility (Credit Facility) which matures October 16, 2020. The Credit Facility replaced our previous senior unsecured revolving credit facility (Previous Credit Facility). The Credit Facility has aggregate commitments of $1.0 billion, with an option to increase aggregate commitments to $1.25 billion. The Credit Facility does not have a borrowing base subject to the discretion of the lenders based on the value of our proved reserves. Advances under the Credit Facility will accrue interest based on either LIBOR plus an applicable margin or the base rate (as defined in the Credit Facility) plus an applicable margin. 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 total debt-to-capital ratio of no greater than 65% . Our Previous Credit Facility had a borrowing base of $2.5 billion and aggregate commitments of $1.0 billion. As of September 30, 2015 , we had letters of credit outstanding under the Previous Credit Facility of $2.5 million, leaving an unused borrowing availability of $997.5 million. These letters of credit remain outstanding. The Previous Credit Facility also had customary covenants with which we were in compliance as of September 30, 2015 . Senior Notes Each of our senior notes is governed by an indenture containing certain covenants, events of default and other restrictive provisions with which we were in compliance as of September 30, 2015 . Interest on each of the senior notes is payable semi-annually. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (loss) per Share | |
Earnings (loss) per Share | 6. Earnings (loss) per Share The calculations of basic and diluted net earnings (loss) per common share under the two-class method are presented below: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2015 2014 2015 2014 Basic: Net income (loss) $ $ $ $ Participating securities’ share in earnings (1) — — Net income (loss) applicable to common stockholders $ $ $ $ Diluted: Net income (loss) $ $ $ $ Participating securities’ share in earnings (1) — — Net income (loss) applicable to common stockholders $ $ $ $ Shares: Basic shares outstanding Dilutive effect of stock options — — Fully diluted common stock Excluded (2) Earnings (loss) per share to common stockholders (3): Basic $ $ $ $ Diluted $ $ $ $ (1) Participating securities are not included in undistributed earnings when a loss exists. (2) Inclusion of certain shares would have an anti-dilutive effect. (3) Earnings (loss) per share are based on actual figures rather than the rounded figures presented. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | |
Income Taxes | 7. Income Taxes The components of our provision for income taxes are as follows: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Current taxes (benefit) $ $ — $ $ — Deferred taxes (benefit) $ $ $ $ Combined Federal and State effective income tax rate % % % % For tax year 2014, w e ha d a U.S. net tax operating loss carryforward of approximately $518.0 million, which will expire in tax years 2031 through 2034. We believe that the carryforward will be utilized before it expires. The amount of U.S. net tax operating loss carryforward that will be recorded to equity when utilized to reduce taxes payable is $47.5 million , which relates to stock compensation deductions. We also had an alternative minimum tax credit carryforward of approximately $6.0 million. At September 30, 2015 , we had no unrecognized tax benefits that would impact our effective tax rate and have made no provisions for interest or penalties related to uncertain tax positions. The tax years 201 2 through 201 4 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 the 201 1 through 201 4 tax years. Our provision for income taxes differed from the U.S. statutory rate of 35% primarily due to state income taxes and non-deductible expenses. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | |
Fair Value Measurements | 8. 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 (exit price). The FASB 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 are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 are unobservable inputs for an asset or liability. The following tables provide fair value measurement information for certain assets and liabilities as of September 30, 2015 and December 31, 2014 : September 30, 2015: Carrying Fair (in thousands) Amount Value Financial Assets (Liabilities): 5.875% Notes due 2022 $ $ 4.375% Notes due 2024 $ $ Derivative instruments — assets $ $ December 31, 2014: Carrying Fair (in thousands) Amount Value Financial Assets (Liabilities): 5.875% Notes due 2022 $ $ 4.375% Notes due 2024 $ $ 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 4.375% and 5.875% fixed rate notes was based on their last traded value before period end. The fair value of our derivative instruments (Level 2) was estimated using option pricing models. These models use certain variables including forward price and volatility curves and the strike prices for the instruments. The fair value estimates are adjusted relative to non-performance risk as appropriate. See Note 9 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. 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 routinely assess the recoverability of all material accounts receivable to determine their collectability. We accrue a reserve to the allowance for doubtful accounts when it is probable that a receivable will not be collected and the amount of the reserve may be reasonably estimated. At September 30, 2015 and December 31, 2014 , the allowance for doubtful accounts was $1.8 million and $1.5 million , respectively. |
DERIVATIVE INSTRUMENTS_HEDGING
DERIVATIVE INSTRUMENTS/HEDGING | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments/Hedging | |
Derivative Instruments/Hedging | 9. Derivative Instruments/Hedging We periodically use derivative instruments to mitigate our exposure to a decline in commodity prices and the corresponding negative impact on cash flow available for reinvestment. While the use of these instruments limits the downside risk of adverse price changes, their use may also limit future revenues 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 hedging positions. The following table summarizes our outstanding derivative contracts as of September 30, 2015: First Second Third Fourth Quarter Quarter Quarter Quarter Total Gas Collars: 2016: PEPL (1) Volume (MMBtu) Wtd Avg Price - Floor $ $ $ $ $ Wtd Avg Price - Ceiling $ $ $ $ $ Perm EP (1) Volume (MMBtu) Wtd Avg Price - Floor $ $ $ $ $ Wtd Avg Price - Ceiling $ $ $ $ $ 2017: Perm EP (1) Volume (MMBtu) — — Wtd Avg Price - Floor $ $ $ — $ — $ Wtd Avg Price - Ceiling $ $ $ — $ — $ (1) PEPL refers to Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index as quoted in Platt’s Inside FERC. Perm EP refers to El Paso Natural Gas Company, Permian Basin Index as quoted in Platt’s Inside FERC. Under a collar agreement, we receive the difference between the published index price and a floor price if the index price is below the floor. We pay the difference between the ceiling price and the index price if the index price is above the contracted ceiling price. No amounts are paid or received if the index price is between the floor and the ceiling price. Subsequent to September 30, 2015, we hedged 3,000 barrels of oil per day for 2016 production using three-way costless collars with weighted average lower floor (sold put), upper floor (bought put) and ceiling (sold call) prices per barrel of $40 , $50 , and $60 , respectively. Upon settlement of this hedge, if the index price is below the lower floor, we receive the difference between the two floors. If the index price is between the two floors, we receive the difference between the upper floor and the index price. If the index price is between the upper floor and the ceiling, we do not receive or pay any amounts. If the index price is above the ceiling, we pay the excess over the ceiling price. We have elected not to account for our derivatives as cash flow hedges. Therefore, we recognize settlements and changes in the assets or liabilities relating to our open derivative contracts in earnings. Cash settlements of our contracts are included in cash flows from operating activities in our statements of cash flows. The following table presents the aggregate net gain (loss) from settlements and changes in fair value of our derivative contracts, and the gains (losses) only from settlements during the periods shown below. Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Gain (loss) on derivative instruments, net $ $ $ $ Settlement gains (losses) $ — $ $ — $ Our derivative contracts are carried at their fair value on our balance sheet using Level 2 inputs and are subject to enforceable master netting arrangements, which allow us to offset recognized asset and liability fair value amounts on contracts with the same counterparty. Our policy is to not offset asset and liability positions in our accompanying balance sheets. The following table presents the amounts and classifications of our derivative assets and liabilities as of September 30, 2015, as well as the potential effect of netting arrangements on contracts with the same counterparty. We did not have any outstanding contracts as of December 31, 2014. September 30, 2015: (in thousands) Balance Sheet Location Asset Liability Natural gas contracts Current assets — Derivative instruments $ $ — Natural gas contracts Non-current assets — Derivative instruments — Total gross amounts presented in accompanying balance sheet — Less: gross amounts not offset in the accompanying balance sheet — — Net amount: $ $ — 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 have 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 hedge liability positions. Because some of the member banks have discontinued hedging activities, in the future we may hedge with counterparties outside our bank group to obtain competitive terms and to spread counterparty risk. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Commitments We have commitments of $163.3 million to finish drilling and completing wells in progress at September 30, 2015 . We also have various commitments for drilling rigs . The total minimum expenditure commitments under these agreements are $29.6 million. At September 30, 2015 , we had firm sales contracts to deliver approximately 44.3 Bcf of natural gas over the next 37 months. If this gas is not delivered, our financial commitment would be a pproximately $105.4 million. This commitment will fluctuate due to price volatility and actual volumes delivered. However, we believe no financial commitment will be due based on our current proved reserves and production levels from which we can fulfill these obligations. In connection with gas gathering and processing agreements, we have volume commitments over the next ten years. If no gas is delivered, the maximum amount that would be payable under these commitments would be approximately $207.2 million . However, we believe no financial commitment will be due based on our current proved reserves and production levels from which w e can fulfill these obligations. We have other various transportation , delivery and facilities commitments in the normal course of business, which approximate $47.6 million . We have various commitments for office space and equipment under operating lease arrangements totaling $99.2 million. Subsequent to September 30, 2015, we pledged to donate $5 million over ten years to a charitable organization in Tulsa, Oklahoma. All of the noted commitments were routine and made in the ordinary course of our business. Litigation We have various litigation matters related to the ordinary course of our business. We assess the probability of estimable amounts related to those matters in accordance with guidance established by the FASB 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. H.B. Krug, et al versus H&P On April 1, 2014, Cimarex paid the plaintiffs $15.8 million for damages, post-judgment interest, and other expenses, all of which are now final and not appealable. On June 24, 2014, the trial court ruled the plaintiffs were not entitled to prejudgment interest but were entitled to attorney’s fees and costs, the amount of which will be determined at a subsequent hearing. On July 31, 2014, the plaintiffs appealed the trial court’s denial of prejudgment interest, which will be determined by the Oklahoma Supreme Court. The outcome of these remaining issues cannot be determined, and our current estimates and assessments will likely change as a result of future legal proceedings. |
SUPPLEMENTAL DISCLOSURE OF CASH
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Disclosure of Cash Flow Information: | |
Supplemental Disclosure of Cash Flow Information: | 11. Supplemental Disclosure of Cash Flow Information Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Cash paid during the period for: Interest expense (including capitalized amounts) $ $ $ $ Interest capitalized $ $ $ $ Income taxes $ $ — $ $ Cash received for income taxes $ — $ — $ $ |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | |
Use of Estimates | Use of Estimates Areas of significance requiring the use of management’s judgments relate to the estimation of proved oil and gas reserves, the use of proved reserves in calculating depletion, depreciation, and amortization (DD&A), estimates of future net revenues in computing ceiling test limitations and estimates of future abandonment obligations used in recording asset retirement obligations, and the assessment of goodwill. Estimates and judgments also are required in determining allowance for bad debt, impairments of undeveloped properties and other assets, purchase price allocation, valuation of deferred tax assets, fair value measurements and contingencies. |
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 or market using weighted average cost. An analysis of our oil and gas well equipment and supplies was performed and no impairment was required. However, the industry-wide decline in drilling operations has put downward pressure on the price of oil and gas well equipment and supplies. Further declines 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. Accounting rules require us to perform a quarterly ceiling test calculation to test our oil and gas properties for possible impairment. If the net capitalized cost of our oil and gas properties subject to amortization (the carrying value) exceeds the ceiling limitation, the excess is charged to expense. The ceiling limitation is equal to the sum of the present value discounted at 10% of estimated future net cash flows from proved reserves, the cost of properties not being amortized, the lower of cost or estimated fair value of unproven properties included in the costs being amortized, and all related tax effects. Estimated future net cash flows are determined by commodity prices and proved reserve quantities. At September 30, 2015 , the carrying value of our oil and gas properties subject to the test exceeded the calculated value of the ceiling limitation, and we recognized an impairment of $1.2 b illion ( $750.2 million, net of tax). We also recognized impairments in the first and second quarters of 2015. Year-to-date impairments totaled $2.8 billion ( $1.7 billion, net of tax). Th ese impairment s resulted primarily from the impact of decreases in the 12-month average trailing prices for oil, natural gas and NGLs utilized in determining the future net cash flows from proved reserves. If pricing conditions stay at current levels or decline further, or if there is a negative impact on one or more of the other components of the calculation, we will incur full cost ceiling impairments in future quarters. T he ceiling calculation 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 stockholders’ equity. Any recorded impairment of oil and gas properties is not reversible at a later date. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Basis of Presentation | |
Schedule of components of receivable accounts, accounts payable, and accrued liabilities | September 30, December 31, (in thousands) 2015 2014 Receivables, net of allowance Trade $ $ Oil and gas sales Gas gathering, processing, and marketing Other Receivables, net $ $ Accounts payable Trade $ $ Gas gathering, processing, and marketing Accounts payable $ $ Accrued liabilities Exploration and development $ $ Taxes other than income Other Accrued liabilities $ $ |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Capital Stock | |
Common stock activity | (in thousands) Issued and outstanding as of December 31, 2014 Issuance of common stock Issuance of performance stock awards Issuance of service-based restricted stock awards Restricted stock forfeited and retired Common stock reacquired and retired Option exercises, net of cancellations Issued and outstanding as of September 30, 2015 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
STOCK-BASED COMPENSATION | |
Recognition of non-cash stock-based compensation cost | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Restricted stock awards Performance stock awards $ $ $ $ Service-based stock awards Stock option awards Less amounts capitalized to oil and gas properties Compensation expense $ $ $ $ |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligations | |
Change in the carrying amount of the asset retirement obligation | (in thousands) Asset retirement obligation at January 1, 2015 $ Liabilities incurred Liability settlements and disposals Accretion expense Revisions of estimated liabilities Asset retirement obligation at September 30, 2015 Less current obligation Long-term asset retirement obligation $ |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Long-Term Debt | |
Summary of debt | September 30, December 31, (in thousands) 2015 2014 5.875% Senior Notes, due May 1, 2022 $ $ 4.375% Senior Notes, due June 1, 2024 Total long-term debt $ $ |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (loss) per Share | |
Calculations of basic and diluted net earnings (loss) per common share under the two-class method | Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share data) 2015 2014 2015 2014 Basic: Net income (loss) $ $ $ $ Participating securities’ share in earnings (1) — — Net income (loss) applicable to common stockholders $ $ $ $ Diluted: Net income (loss) $ $ $ $ Participating securities’ share in earnings (1) — — Net income (loss) applicable to common stockholders $ $ $ $ Shares: Basic shares outstanding Dilutive effect of stock options — — Fully diluted common stock Excluded (2) Earnings (loss) per share to common stockholders (3): Basic $ $ $ $ Diluted $ $ $ $ (1) Participating securities are not included in undistributed earnings when a loss exists. (2) Inclusion of certain shares would have an anti-dilutive effect. (3) Earnings (loss) per share are based on actual figures rather than the rounded figures presented. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | |
Components of the provision for income taxes | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Current taxes (benefit) $ $ — $ $ — Deferred taxes (benefit) $ $ $ $ Combined Federal and State effective income tax rate % % % % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Measurements | |
Fair value measurement information for certain assets and liabilities | September 30, 2015: Carrying Fair (in thousands) Amount Value Financial Assets (Liabilities): 5.875% Notes due 2022 $ $ 4.375% Notes due 2024 $ $ Derivative instruments — assets $ $ December 31, 2014: Carrying Fair (in thousands) Amount Value Financial Assets (Liabilities): 5.875% Notes due 2022 $ $ 4.375% Notes due 2024 $ $ |
DERIVATIVE INSTRUMENTS_HEDGING
DERIVATIVE INSTRUMENTS/HEDGING (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments/Hedging | |
Outstanding hedging contracts relative to future production | First Second Third Fourth Quarter Quarter Quarter Quarter Total Gas Collars: 2016: PEPL (1) Volume (MMBtu) Wtd Avg Price - Floor $ $ $ $ $ Wtd Avg Price - Ceiling $ $ $ $ $ Perm EP (1) Volume (MMBtu) Wtd Avg Price - Floor $ $ $ $ $ Wtd Avg Price - Ceiling $ $ $ $ $ 2017: Perm EP (1) Volume (MMBtu) — — Wtd Avg Price - Floor $ $ $ — $ — $ Wtd Avg Price - Ceiling $ $ $ — $ — $ (1) PEPL refers to Panhandle Eastern Pipe Line, Tex/OK Mid-Continent Index as quoted in Platt’s Inside FERC. Perm EP refers to El Paso Natural Gas Company, Permian Basin Index as quoted in Platt’s Inside FERC. |
Net gains and (losses) from settlements and changes in fair value of derivative contracts | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Gain (loss) on derivative instruments, net $ $ $ $ Settlement gains (losses) $ — $ $ — $ |
Schedule of amounts and classifications of entity's derivative assets and liabilities as well as the potential effect of netting arrangements on contracts with the same counterparty | September 30, 2015: (in thousands) Balance Sheet Location Asset Liability Natural gas contracts Current assets — Derivative instruments $ $ — Natural gas contracts Non-current assets — Derivative instruments — Total gross amounts presented in accompanying balance sheet — Less: gross amounts not offset in the accompanying balance sheet — — Net amount: $ $ — |
SUPPLEMENTAL DISCLOSURE OF CA27
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Disclosure of Cash Flow Information: | |
Supplemental Disclosure of Cash Flow Information | Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2015 2014 2015 2014 Cash paid during the period for: Interest expense (including capitalized amounts) $ $ $ $ Interest capitalized $ $ $ $ Income taxes $ $ — $ $ Cash received for income taxes $ — $ — $ $ |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
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 | $ 1,180,649 | $ 2,751,535 | |
Impairment of oil and gas properties, after tax | 750,200 | 1,700,000 | |
Receivables, net of allowance | |||
Trade | 74,873 | 74,873 | $ 134,443 |
Oil and gas sales | 171,583 | 171,583 | 259,220 |
Gas gathering, processing, and marketing | 13,377 | 13,377 | 18,009 |
Other | 227 | 227 | 436 |
Receivables, net | 260,060 | 260,060 | 412,108 |
Accounts payable: | |||
Trade | 44,311 | 44,311 | 102,276 |
Gas gathering, processing, and marketing | 27,309 | 27,309 | 35,775 |
Accounts payable | 71,620 | 71,620 | 138,051 |
Accrued liabilities | |||
Exploration and development | 74,263 | 74,263 | 200,929 |
Taxes other than income | 22,698 | 22,698 | 26,950 |
Other | 189,799 | 189,799 | 219,505 |
Accrued liabilities | $ 286,760 | $ 286,760 | $ 447,384 |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | May. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Capital Stock [Line Items] | |||||||
Price per share sold | $ 109 | ||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||
Proceeds from sale of common stock, net of underwriting fees | $ 730 | ||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||
Preferred stock, shares authorized | 15,000,000 | 15,000,000 | 15,000,000 | 15,000,000 | |||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | ||||
Summary of issued and outstanding common stock activity | |||||||
Beginning balance, shares | 87,592,535 | ||||||
Issuance of common stock | 6,900,000 | 6,900,000 | |||||
Issuance of performance stock awards | 10,000 | ||||||
Issuance of service-based restricted stock awards, shares | 191,000 | ||||||
Restricted stock forfeited and retired, shares | (71,000) | ||||||
Common stock reacquired and retired, shares | (188,000) | ||||||
Option exercises, net of cancellations | 126,000 | ||||||
Ending balance, shares | 94,559,630 | 94,559,630 | 94,559,630 | ||||
Dividends | |||||||
Cash dividend declared (in dollars per share) | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.48 | $ 0.48 | ||
Additional Shares Issued [Member] | |||||||
Summary of issued and outstanding common stock activity | |||||||
Issuance of common stock | 900,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Options, Restricted Stock and Unit Awards | ||||
Compensation expense before capitalized cost | $ 7,741 | $ 6,672 | $ 27,468 | $ 20,657 |
Less amounts capitalized to oil and gas properties | (3,004) | (3,069) | (12,588) | (9,782) |
Compensation expense | 4,737 | 3,603 | 14,880 | 10,875 |
Restricted Stock [Member] | ||||
Options, Restricted Stock and Unit Awards | ||||
Compensation expense before capitalized cost | 6,886 | 5,825 | 25,327 | 18,255 |
Performance Based Restricted Stock [Member] | ||||
Options, Restricted Stock and Unit Awards | ||||
Compensation expense before capitalized cost | 4,984 | 2,900 | 14,627 | 8,714 |
Service Based Restricted Stock [Member] | ||||
Options, Restricted Stock and Unit Awards | ||||
Compensation expense before capitalized cost | 1,902 | 2,925 | 10,700 | 9,541 |
Employee Stock Option [Member] | ||||
Options, Restricted Stock and Unit Awards | ||||
Compensation expense before capitalized cost | $ 855 | $ 847 | $ 2,141 | $ 2,402 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Asset Retirement Obligations | |
Balance at beginning of year | $ 173,008 |
Liabilities incurred | 2,522 |
Liability settlements and disposals | (24,276) |
Accretion expense | 5,812 |
Revisions of estimated liabilities | 4,038 |
Balance at end of year | 161,104 |
Less current obligation | (9,756) |
Long-term asset retirement obligation | 151,348 |
Liability settlements and disposals related to properties that were sold | $ 12,600 |
LONG-TERM DEBT - Summary (Detai
LONG-TERM DEBT - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument | ||
Long-term debt | $ 1,500,000 | $ 1,500,000 |
Notes 5.875 Percent [Member] | ||
Debt Instrument | ||
Long-term debt | $ 750,000 | $ 750,000 |
Interest rate (as a percent) | 5.875% | 5.875% |
Notes 4.375 Percent [Member] | ||
Debt Instrument | ||
Long-term debt | $ 750,000 | $ 750,000 |
Interest rate (as a percent) | 4.375% | 4.375% |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Millions | 1 Months Ended | |
Oct. 31, 2015 | Sep. 30, 2015 | |
Line of Credit [Member] | ||
Debt Instrument | ||
Credit facility amount | $ 1,000 | |
Borrowing base of credit facility | 2,500 | |
Letters of credit outstanding under the credit facility | 2.5 | |
Unused borrowing availability | $ 997.5 | |
Revolving Credit Facility [Member] | ||
Debt Instrument | ||
Credit facility amount | $ 1,000 | |
Credit facility, increase amount option | $ 1,250 | |
Debt-to-Capital ratio | 65.00% |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Basic: | ||||
Net income (loss) | $ (763,284) | $ 144,315 | $ (1,778,440) | $ 431,412 |
Participating securities' share in earnings (in dollars) | (2,411) | (7,206) | ||
Net income (loss) applicable to common stockholders | (763,284) | 141,904 | (1,778,440) | 424,206 |
Diluted: | ||||
Net income (loss) | (763,284) | 144,315 | (1,778,440) | 431,412 |
Participating securities' share in earnings (in dollars) | (2,407) | (7,194) | ||
Net income (loss) applicable to common stockholders | $ (763,284) | $ 141,908 | $ (1,778,440) | $ 424,218 |
Shares: | ||||
Basic shares outstanding | 92,969 | 85,643 | 92,969 | 85,643 |
Dilutive effect of stock options | 136 | 145 | ||
Fully diluted common stock (in shares) | 92,969 | 85,779 | 92,969 | 85,788 |
Excluded antidilutive securities (in shares) | 1,915 | 83 | 1,915 | 87 |
Earnings per share to common shareholders | ||||
Basic (in dollars per share) | $ (8.21) | $ 1.65 | $ (19.14) | $ 4.94 |
Diluted (in dollars per share) | $ (8.21) | $ 1.65 | $ (19.14) | $ 4.94 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components of provision for income taxes (in thousands): | ||||
Current taxes (benefit) | $ 14,937 | $ 14,937 | ||
Deferred taxes (benefit) | (443,469) | $ 84,707 | (1,014,264) | $ 254,210 |
Total income tax expense (benefits) | $ (428,532) | $ 84,707 | $ (999,327) | $ 254,210 |
Combined Federal and State effective income tax rate | 36.00% | 37.00% | 36.00% | 37.10% |
U.S. net tax operating loss carryforward | $ 518,000 | $ 518,000 | ||
U.S. net tax operating loss carryforward recorded to equity when utilized to reduce taxes payable | 47,500 | 47,500 | ||
Alternative minimum tax credit carryforward | 6,000 | 6,000 | ||
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 | ||
U.S. statutory rate (as a percent) | 35.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets (Liabilities): | ||
Derivative instruments | $ 1,501 | |
Notes 5.875 Percent [Member] | ||
Financial Assets (Liabilities): | ||
Interest rate (as a percent) | 5.875% | 5.875% |
Notes 5.875 Percent [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets (Liabilities): | ||
Interest rate (as a percent) | 5.875% | 5.875% |
Notes 4.375 Percent [Member] | ||
Financial Assets (Liabilities): | ||
Interest rate (as a percent) | 4.375% | 4.375% |
Notes 4.375 Percent [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets (Liabilities): | ||
Interest rate (as a percent) | 4.375% | 4.375% |
Reported Value Measurement [Member] | ||
Financial Assets (Liabilities): | ||
Derivative instruments | $ 1,968 | |
Reported Value Measurement [Member] | Notes 5.875 Percent [Member] | ||
Financial Assets (Liabilities): | ||
Long-term debt | (750,000) | $ (750,000) |
Reported Value Measurement [Member] | Notes 4.375 Percent [Member] | ||
Financial Assets (Liabilities): | ||
Long-term debt | (750,000) | (750,000) |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets (Liabilities): | ||
Derivative instruments | 1,968 | |
Estimate of Fair Value Measurement [Member] | Notes 5.875 Percent [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets (Liabilities): | ||
Long-term debt | (797,565) | (776,250) |
Estimate of Fair Value Measurement [Member] | Notes 4.375 Percent [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets (Liabilities): | ||
Long-term debt | $ (726,953) | $ (720,000) |
FAIR VALUE MEASUREMENTS - Other
FAIR VALUE MEASUREMENTS - Other instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Allowance for Trade Receivables [Member] | ||
Other Financial Instruments | ||
Aggregate allowance for doubtful accounts | $ 1.8 | $ 1.5 |
DERIVATIVE INSTRUMENTS_HEDGIN38
DERIVATIVE INSTRUMENTS/HEDGING (Details) MMBTU / D in Thousands | Sep. 30, 2015MMBTU / Ditem$ / MMBTU$ / bbl |
Subsequent Event [Member] | 2016 [Member] | |
Fair values of derivative assets and liabilities | |
Volume | item | 3,000 |
Weighted Average Price | |
Ceiling, weighted average price (in dollars per unit) | $ / bbl | 60 |
Derivative Contract Gas Collar PEPL Index [Member] | 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 3,660 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.70 |
Ceiling, weighted average price (in dollars per unit) | 2.85 |
Derivative Contract Gas Collar PEPL Index [Member] | First Quarter - 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 910 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.70 |
Ceiling, weighted average price (in dollars per unit) | 2.85 |
Derivative Contract Gas Collar PEPL Index [Member] | Second Quarter - 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 910 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.70 |
Ceiling, weighted average price (in dollars per unit) | 2.85 |
Derivative Contract Gas Collar PEPL Index [Member] | Third Quarter - 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 920 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.70 |
Ceiling, weighted average price (in dollars per unit) | 2.85 |
Derivative Contract Gas Collar PEPL Index [Member] | Fourth Quarter - 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 920 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.70 |
Ceiling, weighted average price (in dollars per unit) | 2.85 |
Derivative Contract Gas Collar Perm EP [Member] | 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 4,870 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.75 |
Ceiling, weighted average price (in dollars per unit) | 3.09 |
Derivative Contract Gas Collar Perm EP [Member] | First Quarter - 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 1,820 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.75 |
Ceiling, weighted average price (in dollars per unit) | 3.12 |
Derivative Contract Gas Collar Perm EP [Member] | Second Quarter - 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 1,210 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.75 |
Ceiling, weighted average price (in dollars per unit) | 3.09 |
Derivative Contract Gas Collar Perm EP [Member] | Third Quarter - 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 920 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.75 |
Ceiling, weighted average price (in dollars per unit) | 3.06 |
Derivative Contract Gas Collar Perm EP [Member] | Fourth Quarter - 2016 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 920 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.75 |
Ceiling, weighted average price (in dollars per unit) | 3.06 |
Derivative Contract Gas Collar Perm EP [Member] | 2017 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 1,810 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.75 |
Ceiling, weighted average price (in dollars per unit) | 3.36 |
Derivative Contract Gas Collar Perm EP [Member] | First Quarter - 2017 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 900 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.75 |
Ceiling, weighted average price (in dollars per unit) | 3.36 |
Derivative Contract Gas Collar Perm EP [Member] | Second Quarter - 2017 [Member] | Scenario, Forecast [Member] | |
Fair values of derivative assets and liabilities | |
Volume | MMBTU / D | 910 |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | 2.75 |
Ceiling, weighted average price (in dollars per unit) | 3.36 |
Minimum [Member] | Subsequent Event [Member] | 2016 [Member] | |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | $ / bbl | 40 |
Maximum [Member] | Subsequent Event [Member] | 2016 [Member] | |
Weighted Average Price | |
Floor, weighted average price (in dollars per unit) | $ / bbl | 50 |
DERIVATIVE INSTRUMENTS_HEDGIN39
DERIVATIVE INSTRUMENTS/HEDGING (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gain (loss) on derivative instruments, net | ||||
Gain (loss) on derivative instruments, net | $ 1,968 | $ 9,229 | $ 1,968 | $ (8,960) |
Gains (losses) from settlement of derivative instruments: | ||||
Settlement gains (losses) | (6,015) | |||
Not Designated as Hedging Instrument [Member] | ||||
Gain (loss) on derivative instruments, net | ||||
Gain (loss) on derivative instruments, net | $ 1,968 | 9,229 | $ 1,968 | (8,960) |
Gains (losses) from settlement of derivative instruments: | ||||
Settlement gains (losses) | $ (211) | $ (6,015) |
DERIVATIVE INSTRUMENTS_HEDGIN40
DERIVATIVE INSTRUMENTS/HEDGING - Derivative assets and liabilities (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Asset | |
Total gross amounts presented in accompanying balance sheet | $ 1,501 |
Not Designated as Hedging Instrument [Member] | |
Asset | |
Total gross amounts presented in accompanying balance sheet | $ 1,968 |
Less: gross amounts not offset in the accompanying balance sheet | |
Net amount: | $ 1,968 |
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Current Assets [Member] | |
Asset | |
Total gross amounts presented in accompanying balance sheet | 1,501 |
Not Designated as Hedging Instrument [Member] | Natural Gas Contracts [Member] | Noncurrent Assets [Member] | |
Asset | |
Total gross amounts presented in accompanying balance sheet | $ 467 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Purchases (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Drilling Commitments [Member] | |
Construction, Drilling and Purchase Commitments | |
Commitments for purchases and other expenditures | $ 163.3 |
Commitments to Secure Use of Drilling Rigs [Member] | |
Construction, Drilling and Purchase Commitments | |
Commitments for purchases and other expenditures | $ 29.6 |
COMMITMENTS AND CONTINGENCIES42
COMMITMENTS AND CONTINGENCIES - Delivery, operating leases (Details) $ in Millions | 1 Months Ended | 9 Months Ended |
Oct. 31, 2015USD ($) | Sep. 30, 2015USD ($)MMcf | |
Non-cancelable operating leases | ||
Future minimum operating lease arrangements | $ 99.2 | |
Subsequent Event [Member] | ||
Delivery Commitments | ||
Charitable contribution, pledged amount | $ 5 | |
Charitable contribution, time period for payment | 10 years | |
Natural Gas Sales Contracts [Member] | ||
Delivery Commitments | ||
Volume of gas deliverable (in Bcf) | MMcf | 44,300 | |
Delivery term | 37 months | |
Financial commitment upon nondelivery | $ 105.4 | |
Gas Gathering And Processing Agreements [Member] | ||
Delivery Commitments | ||
Delivery term | 10 years | |
Financial commitment upon nondelivery | $ 207.2 | |
Other Transportation, Delivery And Facilities Commitments [Member] | ||
Delivery Commitments | ||
Financial commitment upon nondelivery | $ 47.6 |
COMMITMENTS AND CONTINGENCIES43
COMMITMENTS AND CONTINGENCIES - Loss (Details) $ in Millions | Apr. 01, 2014USD ($) |
Helmerich and Payne Case [Member] | |
Loss Contingencies | |
Payments to plaintiff | $ 15.8 |
SUPPLEMENTAL DISCLOSURE OF CA44
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Cash paid during the period for: | ||||
Interest expense (including capitalized amounts) | $ 1,014 | $ 835 | $ 41,226 | $ 27,125 |
Interest capitalized | 336 | $ 30 | 17,333 | 13,587 |
Income taxes | $ 2 | 558 | 354 | |
Cash received for income taxes | $ 409 | $ 342 |