Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'GASTAR EXPLORATION LTD | ' |
Entity Central Index Key | '0001170154 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 61,134,950 |
Gastar Exploration USA Inc. | ' | ' |
Entity Registrant Name | 'GASTAR EXPLORATION USA, INC. | ' |
Entity Central Index Key | '0001431372 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 750 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $21,375 | $8,901 |
Accounts receivable, net of allowance for doubtful accounts of $514 and $546, respectively | 10,697 | 9,540 |
Commodity derivative contracts | 2,259 | 7,799 |
Prepaid expenses | 616 | 1,097 |
Total current assets | 34,947 | 27,337 |
Natural gas and oil properties, full cost method of accounting: | ' | ' |
Unproved properties, excluded from amortization | 102,338 | 67,892 |
Proved properties | 769,054 | 671,193 |
Total natural gas and oil properties | 871,392 | 739,085 |
Furniture and equipment | 2,409 | 1,925 |
Total property, plant and equipment | 873,801 | 741,010 |
Accumulated depreciation, depletion and amortization | -506,187 | -484,759 |
Total property, plant and equipment, net | 367,614 | 256,251 |
OTHER ASSETS: | ' | ' |
Commodity derivative contracts | 7,399 | 1,369 |
Deferred charges, net | 2,133 | 836 |
Advances to operators and other assets | 12,311 | 4,275 |
Total other assets | 21,843 | 6,480 |
TOTAL ASSETS | 424,404 | 290,068 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 5,611 | 23,863 |
Revenue payable | 12,063 | 8,801 |
Accrued interest | 6,469 | 151 |
Accrued drilling and operating costs | 2,727 | 3,907 |
Advances from non-operators | 12,951 | 17,540 |
Commodity derivative contracts | 794 | 1,399 |
Current commodity derivative premium put payable | 1,819 | 0 |
Asset retirement obligation | 750 | 358 |
Other accrued liabilities | 8,319 | 1,493 |
Total current liabilities | 51,503 | 57,512 |
LONG-TERM LIABILITIES: | ' | ' |
Long-term debt | 194,830 | 98,000 |
Commodity derivative contracts | 0 | 1,304 |
Commodity derivative premium payable | 7,651 | 0 |
Asset retirement obligation | 8,006 | 6,605 |
Other long-term liabilities | 0 | 111 |
Total long-term liabilities | 210,487 | 106,020 |
Commitments and contingencies (Note 13) | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Common stock | 306,593 | 316,346 |
Additional paid-in capital | 30,526 | 28,336 |
Accumulated deficit | -251,479 | -294,787 |
Total shareholders' equity | 85,640 | 49,895 |
Non-controlling interest: | ' | ' |
Preferred stock of subsidiary, aggregate liquidation preference $98,954 and $98,781 at September 30, 2013 and December 31, 2012, respectively | 76,774 | 76,641 |
Total equity | 162,414 | 126,536 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 424,404 | 290,068 |
Gastar Exploration USA Inc. | ' | ' |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | 21,362 | 8,892 |
Accounts receivable, net of allowance for doubtful accounts of $514 and $546, respectively | 10,696 | 9,539 |
Commodity derivative contracts | 2,259 | 7,799 |
Prepaid expenses | 587 | 919 |
Total current assets | 34,904 | 27,149 |
Natural gas and oil properties, full cost method of accounting: | ' | ' |
Unproved properties, excluded from amortization | 102,338 | 67,892 |
Proved properties | 769,046 | 671,185 |
Total natural gas and oil properties | 871,384 | 739,077 |
Furniture and equipment | 2,409 | 1,925 |
Total property, plant and equipment | 873,793 | 741,002 |
Accumulated depreciation, depletion and amortization | -506,180 | -484,752 |
Total property, plant and equipment, net | 367,613 | 256,250 |
OTHER ASSETS: | ' | ' |
Commodity derivative contracts | 7,399 | 1,369 |
Deferred charges, net | 2,133 | 836 |
Advances to operators and other assets | 12,311 | 4,275 |
Total other assets | 21,843 | 6,480 |
TOTAL ASSETS | 424,360 | 289,879 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 5,611 | 23,863 |
Revenue payable | 12,063 | 8,801 |
Accrued interest | 6,469 | 151 |
Accrued drilling and operating costs | 2,727 | 3,907 |
Advances from non-operators | 12,951 | 17,540 |
Commodity derivative contracts | 794 | 1,399 |
Current commodity derivative premium put payable | 1,819 | 0 |
Asset retirement obligation | 750 | 358 |
Other accrued liabilities | 7,974 | 1,480 |
Total current liabilities | 51,158 | 57,499 |
LONG-TERM LIABILITIES: | ' | ' |
Long-term debt | 194,830 | 98,000 |
Commodity derivative contracts | 0 | 1,304 |
Commodity derivative premium payable | 7,651 | 0 |
Asset retirement obligation | 7,999 | 6,598 |
Other long-term liabilities | 0 | 111 |
Due to parent | 34,805 | 30,903 |
Total long-term liabilities | 245,285 | 136,916 |
Commitments and contingencies (Note 13) | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock | 40 | 40 |
Common stock | 225,431 | 237,431 |
Additional paid-in capital | 76,734 | 76,601 |
Accumulated deficit | -174,288 | -218,608 |
Total shareholders' equity | 127,917 | 95,464 |
Non-controlling interest: | ' | ' |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $424,360 | $289,879 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Accounts receivable, net of allowance for doubtful accounts | $514 | $546 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 'unlimited | 'unlimited |
Common stock, shares issued | 61,134,950 | 66,432,609 |
Common stock, shares outstanding | 61,134,950 | 66,432,609 |
Preferred stock of subsidiary, aggregate liquidation preference | 98,954 | 98,781 |
Gastar Exploration USA Inc. | ' | ' |
Accounts receivable, net of allowance for doubtful accounts | $514 | $546 |
Common stock, shares issued | 750 | 750 |
Common stock, shares outstanding | 750 | 750 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 3,958,160 | 3,951,254 |
Preferred stock, shares outstanding | 3,958,160 | 3,951,254 |
Liquidation Preference | $25 | $25 |
Common stock, shares authorized | 1,000 | 1,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUES: | ' | ' | ' | ' |
Natural gas | $11,396 | $8,906 | $34,673 | $22,499 |
Condensate and oil | 8,680 | 3,457 | 22,823 | 7,748 |
NGLs | 3,768 | 2,483 | 10,690 | 6,394 |
Total natural gas, condensate, oil and NGLs revenues | 23,844 | 14,846 | 68,186 | 36,641 |
Unrealized hedge loss | -5,004 | -5,403 | -7,156 | -4,123 |
Total revenues | 18,840 | 9,443 | 61,030 | 32,518 |
EXPENSES: | ' | ' | ' | ' |
Production taxes | 1,319 | 560 | 3,112 | 1,494 |
Lease operating expenses | 2,190 | 780 | 6,196 | 4,754 |
Transportation, treating and gathering | 1,098 | 1,305 | 3,386 | 3,715 |
Depreciation, depletion and amortization | 8,467 | 7,135 | 21,428 | 19,744 |
Impairment recorded (pre-tax) (in thousands) | 0 | 78,054 | 0 | 150,787 |
Accretion of asset retirement obligation | 142 | 101 | 358 | 284 |
General and administrative expense | 3,998 | 2,951 | 11,964 | 9,263 |
Litigation settlement expense | 0 | 0 | 1,000 | 1,250 |
Total expenses | 17,214 | 90,886 | 47,444 | 191,291 |
INCOME (LOSS) FROM OPERATIONS | 1,626 | -81,443 | 13,586 | -158,773 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Gain on acquisition of assets at fair value | 0 | 0 | 43,712 | 0 |
Interest expense | -3,439 | -30 | -7,593 | -86 |
Investment income and other | 8 | 2 | 16 | 6 |
Foreign transaction loss | -3 | -2 | -15 | -2 |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | -1,808 | -81,473 | 49,706 | -158,855 |
Provision for income taxes | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | -1,808 | -81,473 | 49,706 | -158,855 |
Dividend on preferred stock attributable to non-controlling interest | -2,134 | -1,984 | -6,398 | -4,947 |
NET INCOME (LOSS) ATTRIBUTABLE TO GASTAR EXPLORATION LTD. | -3,942 | -83,457 | 43,308 | -163,802 |
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO GASTAR EXPLORATION LTD. COMMON SHAREHOLDERS: | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.07) | ($1.31) | $0.71 | ($2.58) |
Diluted (in dollars per share) | ($0.07) | ($1.31) | $0.68 | ($2.58) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ' | ' | ' | ' |
Basic (shares) | 57,359,357 | 63,601,645 | 61,159,117 | 63,494,224 |
Diluted (shares) | 57,359,357 | 63,601,645 | 63,971,038 | 63,494,224 |
Gastar Exploration USA Inc. | ' | ' | ' | ' |
REVENUES: | ' | ' | ' | ' |
Natural gas | 11,396 | 8,906 | 34,673 | 22,499 |
Condensate and oil | 8,680 | 3,457 | 22,823 | 7,748 |
NGLs | 3,768 | 2,483 | 10,690 | 6,394 |
Total natural gas, condensate, oil and NGLs revenues | 23,844 | 14,846 | 68,186 | 36,641 |
Unrealized hedge loss | -5,004 | -5,403 | -7,156 | -4,123 |
Total revenues | 18,840 | 9,443 | 61,030 | 32,518 |
EXPENSES: | ' | ' | ' | ' |
Production taxes | 1,319 | 560 | 3,112 | 1,494 |
Lease operating expenses | 2,190 | 780 | 6,196 | 4,754 |
Transportation, treating and gathering | 1,098 | 1,305 | 3,386 | 3,715 |
Depreciation, depletion and amortization | 8,467 | 7,135 | 21,428 | 19,744 |
Impairment recorded (pre-tax) (in thousands) | 0 | 78,054 | 0 | 150,787 |
Accretion of asset retirement obligation | 142 | 101 | 358 | 284 |
General and administrative expense | 3,538 | 2,481 | 10,935 | 8,105 |
Litigation settlement expense | 0 | 0 | 1,000 | 1,250 |
Total expenses | 16,754 | 90,416 | 46,415 | 190,133 |
INCOME (LOSS) FROM OPERATIONS | 2,086 | -80,973 | 14,615 | -157,615 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Gain on acquisition of assets at fair value | 0 | 0 | 43,712 | 0 |
Interest expense | -3,439 | -30 | -7,593 | -87 |
Investment income and other | -7 | -5 | -5 | -4 |
Foreign transaction loss | -3 | 1 | -11 | 2 |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | -1,363 | -81,007 | 50,718 | -157,704 |
Provision for income taxes | 0 | 0 | 0 | 0 |
NET INCOME (LOSS) | -1,363 | -81,007 | 50,718 | -157,704 |
Dividend on preferred stock | -2,134 | -1,984 | -6,398 | -4,947 |
NET INCOME (LOSS) ATTRIBUTABLE TO GASTAR EXPLORATION LTD. | ($3,497) | ($82,991) | $44,320 | ($162,651) |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ||
Net income (loss) | $49,706 | ($158,855) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ||
Depreciation, depletion and amortization | 21,428 | 19,744 | ||
Impairment of natural gas and oil properties | 0 | 150,787 | ||
Stock-based compensation | 2,540 | 2,575 | ||
Unrealized hedge loss | 7,156 | 4,123 | ||
Realized loss (gain) on derivative contracts | 18 | -662 | ||
Amortization of deferred financing costs | 1,790 | [1],[2] | 157 | [1],[2] |
Accretion of asset retirement obligation | -358 | -284 | ||
Gain on acquisition of assets at fair value | -43,712 | 0 | ||
Changes in operating assets and liabilities: | ' | ' | ||
Accounts receivable | -1,259 | 2,429 | ||
Prepaid expenses | 481 | 345 | ||
Accounts payable and accrued liabilities | 733 | 129 | ||
Net cash provided by operating activities | 39,239 | 21,056 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ||
Development and purchase of natural gas and oil properties | -77,813 | -100,606 | ||
Acquisition of natural gas and oil properties | -78,809 | 0 | ||
Proceeds from sale of natural gas and oil properties | 70,708 | 0 | ||
Advances to operators | -13,104 | -4,282 | ||
Use of advances from non-operators | -4,589 | -1,085 | ||
Purchase of furniture and equipment | -484 | -235 | ||
Net cash used in investing activities | -104,091 | -106,208 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ||
Proceeds from revolving credit facility | 19,000 | 70,000 | ||
Repayment of revolving credit facility | -117,000 | -30,000 | ||
Proceeds from issuance of senior secured notes, net of discount | 194,500 | 0 | ||
Repurchase of outstanding common shares | -9,753 | 0 | ||
Proceeds from issuance of preferred stock, net of issuance costs | 133 | 49,169 | ||
Dividend on preferred stock attributable to non-controlling interest | -6,398 | -4,947 | ||
Deferred financing charges | -2,807 | -332 | ||
Other | -349 | -282 | ||
Net cash provided by financing activities | 77,326 | 83,608 | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 12,474 | -1,544 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 8,901 | 10,647 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 21,375 | 9,103 | ||
Gastar Exploration USA Inc. | ' | ' | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ||
Net income (loss) | 50,718 | -157,704 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ||
Depreciation, depletion and amortization | 21,428 | 19,744 | ||
Impairment of natural gas and oil properties | 0 | 150,787 | ||
Stock-based compensation | 2,540 | 2,575 | ||
Unrealized hedge loss | 7,156 | 4,123 | ||
Realized loss (gain) on derivative contracts | 18 | -662 | ||
Amortization of deferred financing costs | 1,790 | 157 | ||
Accretion of asset retirement obligation | -358 | -284 | ||
Gain on acquisition of assets at fair value | -43,712 | 0 | ||
Changes in operating assets and liabilities: | ' | ' | ||
Accounts receivable | -1,259 | 2,427 | ||
Prepaid expenses | 332 | 215 | ||
Accounts payable and accrued liabilities | 421 | -43 | ||
Net cash provided by operating activities | 39,790 | 21,903 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ||
Development and purchase of natural gas and oil properties | -77,813 | -100,606 | ||
Acquisition of natural gas and oil properties | -78,809 | 0 | ||
Proceeds from sale of natural gas and oil properties | 70,708 | 0 | ||
Advances to operators | -13,104 | -4,282 | ||
Use of advances from non-operators | -4,589 | -1,085 | ||
Purchase of furniture and equipment | -484 | -235 | ||
Net cash used in investing activities | -104,091 | -106,208 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ||
Proceeds from revolving credit facility | 19,000 | 70,000 | ||
Repayment of revolving credit facility | -117,000 | -30,000 | ||
Proceeds from issuance of senior secured notes, net of discount | 194,500 | 0 | ||
Proceeds from issuance of preferred stock, net of issuance costs | 133 | 49,169 | ||
Dividend on preferred stock attributable to non-controlling interest | -6,398 | -4,947 | ||
Deferred financing charges | -2,807 | -332 | ||
Distribution to Parent, net | -10,657 | -1,196 | ||
Other | 0 | 25 | ||
Net cash provided by financing activities | 76,771 | 82,719 | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 12,470 | -1,586 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 8,892 | 10,595 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $21,362 | $9,009 | ||
[1] | The nine months ended SeptemberB 30, 2013 includes $1.2 million of deferred financing costs written off as a result of the new Revolving Credit Facility. See Note 4, bLong-Term Debt - Second Amended and Restated Revolving Credit Facility.b | |||
[2] | The three and nine months ended SeptemberB 30, 2013 includes $221,000 and $330,000, respectively, of debt discount accretion related to the Notes. |
Description_Of_Business
Description Of Business | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of business | ' |
Description of Business | |
Gastar Exploration Ltd. is an independent energy company engaged in the exploration, development and production of natural gas, condensate, oil and NGLs in the United States (“U.S.”). Gastar Exploration Ltd.’s principal business activities include the identification, acquisition, and subsequent exploration and development of natural gas and oil properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar Exploration Ltd. is currently pursuing the development of liquids-rich natural gas in the Marcellus Shale in West Virginia and is in the early stages of exploring and developing the Hunton Limestone horizontal oil play in Oklahoma. Gastar Exploration Ltd. also holds prospective Marcellus Shale acreage in Pennsylvania. The Company sold substantially all of its East Texas assets on October 2, 2013. | |
On August 1, 2013, the shareholders of Gastar Exploration Ltd. voted to approve a special resolution approving a plan of arrangement (as amended, the “Arrangement”) pursuant to which Gastar Exploration Ltd. would be continued as if it had been incorporated under the laws of the State of Delaware (the “Delaware Migration”). On August 2, 2013, Gastar Exploration Ltd. obtained a Final Order from the Court of the Queen's Bench of Alberta, as amended on September 17, 2013 and October 28, 2013, approving the Arrangement. Gastar Exploration Ltd. expects to complete the Delaware Migration in the fourth quarter of 2013. | |
Gastar Exploration Ltd. is a holding company and substantially all of its operations are conducted through, and substantially all of its assets are held by, its primary operating subsidiary, Gastar Exploration USA, Inc. and its wholly-owned subsidiaries. Unless otherwise stated or the context requires otherwise, all references in these notes to “Gastar USA” refer collectively to Gastar Exploration USA, Inc. and its wholly-owned subsidiaries, all references to “Parent” refer solely to Gastar Exploration Ltd., and all references to “Gastar,” the “Company” and similar terms refer collectively to Gastar Exploration Ltd. and its subsidiaries, including Gastar Exploration USA, Inc. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary Of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
The accounting policies followed by the Company are set forth in the notes to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2012 (as amended, the “2012 Form 10-K”) filed with the SEC. Please refer to the notes to the financial statements included in the 2012 Form 10-K for additional details of the Company’s financial condition, results of operations and cash flows. No material item included in those notes has changed except as a result of normal transactions in the interim or as disclosed within this report. | |
These financial statements are a combined presentation of the condensed consolidated financial statements of the Company and Gastar USA. Separate information is provided for the Company and Gastar USA as required. Except as otherwise noted, there are no material differences between the unaudited condensed consolidated information for the Company presented herein and the unaudited condensed consolidated information of Gastar USA. | |
The unaudited interim condensed consolidated financial statements of the Company and Gastar USA included herein are stated in U.S. dollars and were prepared from the records of the Company and Gastar USA by management in accordance with U.S. GAAP applicable to interim financial statements and reflect all normal and recurring adjustments, which are, in the opinion of management, necessary to provide a fair presentation of the results of operations and financial position for the interim periods. Such financial statements conform to the presentation reflected in the 2012 Form 10-K. The current interim period reported herein should be read in conjunction with the financial statements and accompanying notes, including Item 8. “Financial Statements and Supplementary Data, Note 2 – Summary of Significant Accounting Policies,” included in the 2012 Form 10-K. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates with regard to these financial statements include the estimate of proved natural gas and oil reserve quantities and the related present value of estimated future net cash flows. | |
The unaudited condensed consolidated financial statements of the Company include the accounts of Parent and the consolidated accounts of all of its subsidiaries, including Gastar USA. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
The unaudited condensed consolidated financial statements of Gastar USA include the accounts of Gastar USA and the consolidated accounts of all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Certain reclassifications of prior year balances have been made to conform to the current year presentation; these reclassifications have no impact on net income (loss). | |
The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued and has disclosed certain subsequent events in these condensed consolidated financial statements, as appropriate. | |
Recent Accounting Developments | |
The following recently issued accounting pronouncement may impact the Company in future periods: | |
Income Taxes. In July 2013, the FASB issued an amendment to previously issued guidance regarding the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The amendment requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. This amendment does not require new recurring disclosures. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Earlier application is permitted. The Company is currently evaluating the provisions of this amendment. |
Property_Plant_And_Equipment
Property, Plant And Equipment | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||
Property, Plant And Equipment | ' | |||||||||||||||
Property, Plant and Equipment | ||||||||||||||||
The amount capitalized as natural gas and oil properties was incurred for the purchase and development of various properties in the U.S., specifically the states of Texas, Pennsylvania, West Virginia and Oklahoma, as well as the acquisition of properties in Oklahoma. The Company sold substantially all of its East Texas assets on October 2, 2013. | ||||||||||||||||
The following table summarizes the components of unproved properties excluded from amortization for the periods indicated: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
(in thousands) | ||||||||||||||||
Unproved properties, excluded from amortization: | ||||||||||||||||
Drilling in progress costs | $ | 8,821 | $ | 1,902 | ||||||||||||
Acreage acquisition costs | 88,033 | 62,395 | ||||||||||||||
Capitalized interest | 5,484 | 3,595 | ||||||||||||||
Total unproved properties excluded from amortization | $ | 102,338 | $ | 67,892 | ||||||||||||
For the three and nine months ended September 30, 2013, management's evaluation of unproved properties resulted in an impairment. Due to continued lower natural gas prices for dry gas and no current plans to drill or extend leases in Marcellus East, the Company reclassified $98,000 and $8.0 million of unproved properties to proved properties for the three and nine months ended September 30, 2013, respectively, related to acreage in Marcellus East. For the nine months ended September 30, 2012, management's evaluation of unproved properties resulted in an impairment and the Company reclassified $19.1 million of unproved properties to proved properties due to a decline in natural gas prices and the suspension of drilling activity in East Texas. | ||||||||||||||||
The full cost method of accounting for natural gas and oil properties requires a quarterly calculation of a limitation on capitalized costs, often referred to as a full cost ceiling calculation. The ceiling is the present value of estimated future cash flow from proved natural gas, condensate, oil and NGLs reserves reduced by future operating expenses, development expenditures, abandonment costs (net of salvage) to the extent not included in natural gas and oil properties pursuant to authoritative guidance and estimated future income taxes thereon. To the extent that our capitalized costs (net of accumulated depletion and deferred taxes) exceed the ceiling, the excess must be written off to expense. Once incurred, this impairment of natural gas and oil properties is not reversible at a later date even if natural gas and oil prices increase. The ceiling calculation dictates that the trailing 12-month unweighted arithmetic average of the first-day-of-the-month prices and costs in effect are held constant indefinitely. The 12-month unweighted arithmetic average of the first-day-of-the-month prices are adjusted for basis and quality differentials in determining the present value of the reserves. The table below sets forth relevant pricing assumptions utilized in the quarterly ceiling test computations for the respective periods noted before adjustment for basis and quality differentials: | ||||||||||||||||
2013 | ||||||||||||||||
Total Impairment | 30-Sep | 30-Jun | 31-Mar | |||||||||||||
Henry Hub natural gas price (per MMBtu) | $ | 3.61 | $ | 3.44 | $ | 2.95 | ||||||||||
West Texas Intermediate oil price (per Bbl) | $ | 91.69 | $ | 88.13 | $ | 89.17 | ||||||||||
Impairment recorded (pre-tax) (in thousands) | $ | — | $ | — | $ | — | $ | — | ||||||||
2012 | ||||||||||||||||
Total Impairment | 30-Sep | 30-Jun | 31-Mar | |||||||||||||
Henry Hub natural gas price (per MMBtu) | $ | 2.83 | $ | 3.15 | $ | 3.73 | ||||||||||
West Texas Intermediate oil price (per Bbl) | $ | 91.48 | $ | 92.17 | $ | 94.65 | ||||||||||
Impairment recorded (pre-tax) (in thousands) | $ | 150,787 | $ | 78,054 | $ | 72,733 | $ | — | ||||||||
Future declines in the 12-month average of natural gas, condensate, oil and NGLs prices could result in the recognition of future ceiling impairments. | ||||||||||||||||
Chesapeake Acquisition | ||||||||||||||||
On March 28, 2013, Gastar USA entered into a Purchase and Sale Agreement by and among Chesapeake Exploration, L.L.C., Arcadia Resources, L.P., Jamestown Resources, L.L.C., Larchmont Resources, L.L.C. (together, the “Chesapeake Parties”) and Gastar USA (the “Chesapeake Purchase Agreement”). Pursuant to the Chesapeake Purchase Agreement, Gastar USA was to acquire approximately 157,000 net acres of Oklahoma oil and gas leasehold interests from the Chesapeake Parties, including production from interests in 206 producing wells located in Oklahoma (the “Chesapeake Assets”). The Chesapeake Purchase Agreement contained customary representations and warranties and covenants, including provisions for indemnification, subject to the limitations described in the Chesapeake Purchase Agreement. On June 7, 2013, the parties to the Chesapeake Purchase Agreement entered into an Amendment to Purchase and Sale Agreement, dated June 7, 2013, in order to revise the description of the properties to be acquired and to evidence the withdrawal of Arcadia Resources, L.P. and Jamestown Resources, L.L.C. from the Chesapeake Purchase Agreement. Pursuant to the Chesapeake Purchase Agreement, as amended, on June 7, 2013, Gastar USA completed the acquisition of the Chesapeake Assets for a final adjusted purchase price of $69.4 million, reflecting adjustment for an acquisition effective date of October 1, 2012. | ||||||||||||||||
Upon completion of the initial purchase price allocation, as of June 7, 2013, the Company reviewed and verified its assessment, including the identification and valuation of assets acquired. The Company accounted for the acquisition as a business combination and therefore, recorded the assets acquired at their estimated acquisition date fair values. The Company included $1.4 million of transaction and integration costs associated with the acquisition and expensed these costs as incurred as general and administrative expenses. The Company utilized relevant market assumptions to determine fair value and allocate the purchase price, such as future commodity prices, projections of estimated natural gas and oil reserves, expectations for future development and operating costs, projections of future rates of production, expected recovery rates and market multiples for similar transactions. Many of the assumptions used are unobservable and as such, represent Level 3 inputs under the fair value hierarchy as described in Note 5, “Fair Value Measurements.” The Company's preliminary assessment of the fair value of the Chesapeake Assets resulted in a fair market valuation of $113.5 million. As a result of incorporating the valuation information into the purchase price allocation, a bargain purchase gain of $43.7 million was recognized in the accompanying condensed consolidated statements of operations. The bargain purchase gain was primarily attributable to the non-strategic nature of the divestiture to the seller, coupled with favorable economic trends in the industry and the geographic region in which the Chesapeake Assets are located. The Company believes the estimates used in the fair market valuation and purchase price allocation are reasonable and that the significant effects of the acquisition are properly reflected. However, the estimates are subject to change as additional information becomes available and is assessed by the Company. Changes to the purchase price allocation and any corresponding change to the bargain purchase gain will be adjusted retrospectively to the period of the acquisition. | ||||||||||||||||
Hunton Joint Venture | ||||||||||||||||
Effective July 1, 2013, Gastar USA's working interest partner in its original AMI in Oklahoma exercised its rights to acquire approximately 12,800 net acres and certain proved properties that Gastar USA acquired pursuant to the Chesapeake Purchase Agreement for a total payment of $12.1 million, of which $133,000 was deemed to be a reimbursement of transaction and integration costs associated with the acquisition and was recorded as a reduction of the Company's general and administrative expense. | ||||||||||||||||
Hunton Divestiture | ||||||||||||||||
On July 2, 2013, Gastar USA entered into a purchase and sale agreement with Newfield Exploration Mid-Continent Inc. (“Newfield”), dated July 2, 2013, pursuant to which Newfield acquired approximately 76,000 net acres of oil and gas leasehold interests in Kingfisher and Canadian Counties, Oklahoma from Gastar USA and Gastar USA acquired approximately 2,260 net acres of Oklahoma oil and gas leasehold interests from Newfield. The transaction closed on August 6, 2013 for a net cash purchase price of approximately $54.0 million, adjusted for an acquisition effective date of May 1, 2013. The Company did not record a gain or loss related to the divestiture as it was not significant to the full cost pool. | ||||||||||||||||
WEHLU Acquisition | ||||||||||||||||
On September 4, 2013, Gastar USA entered into a Purchase and Sale Agreement, dated September 4, 2013, by and among Lime Rock Resources II-A, L.P. and Lime Rock Resources II-C, L.P. (the “Lime Rock Parties”) and Gastar USA (the “WEHLU Purchase Agreement”). Pursuant to the WEHLU Purchase Agreement, Gastar USA will acquire a 98.3% working interest (80.5% net revenue interest) in 24,000 net acres of the West Edmond Hunton Lime Unit (“WEHLU”) located in Kingfisher, Logan and Oklahoma Counties, Oklahoma, for a cash purchase price of $187.5 million, subject to, among other customary adjustments, adjustment for an acquisition effective date of August 1, 2013 (the “WEHLU Acquisition”). The Company paid a deposit of $9.4 million, which is currently recorded as an other asset and will be applied to the purchase price at closing. The closing of the WEHLU Acquisition is subject to satisfaction of customary closing conditions and delivery of the total acquisition purchase price. Gastar USA anticipates the WEHLU Acquisition will close in late November 2013. | ||||||||||||||||
Hilltop Area, East Texas Sale | ||||||||||||||||
On April 19, 2013, Gastar Exploration Texas, LP (“Gastar Texas”) and Gastar USA entered into a Purchase and Sale Agreement by and among Gastar Texas, Gastar USA and Cubic Energy, Inc. (“Cubic Energy”) (the “East Texas Sale Agreement”). Pursuant to the East Texas Sale Agreement, as amended, on October 2, 2013, Cubic Energy acquired from Gastar Texas approximately 31,800 gross (16,300 net) acres of leasehold interests in the Hilltop area of East Texas in Leon and Robertson Counties, Texas, including production from interests in producing wells, for net proceeds of approximately $43.9 million, reflecting adjustment for accounting effective date of January 1, 2013 and other customary adjustments and of which $4.7 million was previously received as a deposit and was accounted for in other liabilities at September 30, 2013. The Company will not record a gain or loss related to the divestiture as it was not significant to the full cost pool. | ||||||||||||||||
Atinum Joint Venture | ||||||||||||||||
In September 2010, Gastar USA entered into a joint venture (the “Atinum Joint Venture”) pursuant to which Gastar USA assigned to an affiliate of Atinum Partners Co., Ltd. (“Atinum”), for $70.0 million in total consideration, an initial 21.43% interest in all of its existing Marcellus Shale assets in West Virginia and Pennsylvania at that date, which consisted of certain undeveloped acreage and a 50% working interest in 16 producing shallow conventional wells and one non-producing vertical Marcellus Shale well (the “Atinum Joint Venture Assets”). In early 2012, Gastar USA made additional assignments to Atinum as a result of which Atinum owns a 50% interest in the Atinum Joint Venture Assets. Subsequent to December 31, 2011, Atinum funds only its 50% share of costs. Effective June 30, 2011, an AMI was established for additional acreage acquisitions in Ohio, New York, Pennsylvania and West Virginia, excluding the counties of Pendleton, Pocahontas, Preston, Randolph and Tucker, West Virginia. Within this AMI, Gastar USA acts as operator and is obligated to offer any future lease acquisitions within the AMI to Atinum on a 50/50 basis, and Atinum will pay Gastar USA on an annual basis an amount equal to 10% of lease bonuses and third party leasing costs up to $20.0 million and 5% of such costs on activities above $20.0 million. | ||||||||||||||||
The Atinum Joint Venture's initial three-year development program called for the partners to drill a minimum of 12 horizontal wells in 2011 and 24 operated horizontal wells in each of 2012 and 2013, respectively, for a total of 60 wells to be drilled. At December 31, 2012, 38 gross operated wells were on production under the Atinum Joint Venture. Due to natural gas price declines, Atinum and Gastar USA agreed to reduce the 2013 minimum wells to be drilled requirement to 19 wells which will result in 57 gross wells on production at December 31, 2013, compared to the 60 gross wells originally agreed upon. As of September 30, 2013, all 57 gross wells were on production as agreed upon. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |
Sep. 30, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Long-Term Debt | ' | |
Long-Term Debt | ||
Second Amended and Restated Revolving Credit Facility | ||
On June 7, 2013, Gastar USA entered into the Second Amended and Restated Credit Agreement, dated as of June 7, 2013, among Gastar USA, Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, Swing Line Lender and Issuing Lender and the lenders named therein (the “New Revolving Credit Facility”). The New Revolving Credit Facility provides an initial borrowing base of $50.0 million, with borrowings bearing interest, at Gastar USA's election, at the reference rate or the Eurodollar rate plus an applicable margin. The reference rate is the greater of (i) the rate of interest publicly announced by the administrative agent or (ii) the federal funds rate plus 50 basis points. The applicable interest rate margin varies from 1.0% to 2.0% in the case of borrowings based on the reference rate and from 2.0% to 3.0% in the case of borrowings based on the Eurodollar rate, depending on the utilization percentage in relation to the borrowing base. An annual commitment fee of 0.5% is payable quarterly on the unutilized balance of the borrowing base. The New Revolving Credit Facility has a scheduled maturity of November 14, 2017. | ||
The New Revolving Credit Facility is guaranteed by all of Gastar USA's current domestic subsidiaries and all future domestic subsidiaries formed during the term of the New Revolving Credit Facility. Borrowings and related guarantees are secured by a first priority lien on all domestic natural gas and oil properties currently owned by or later acquired by Gastar USA and its subsidiaries, excluding de minimus value properties as determined by the lender. The New Revolving Credit Facility is secured by a first priority pledge of the stock of each domestic subsidiary, a first priority interest on all accounts receivable, notes receivable, inventory, contract rights, general intangibles and material property of the issuer and 65% of the stock of each foreign subsidiary of Gastar USA. | ||
The New Revolving Credit Facility contains various covenants, including among others: | ||
• | Restrictions on liens, incurrence of other indebtedness without lenders' consent and common stock dividends and other restricted payments; | |
• | Maintenance of a minimum consolidated current ratio as of the end of each quarter of not less than 1.0 to 1.0, as adjusted; | |
• | Maintenance of a maximum ratio of indebtedness to EBITDA, as of the fiscal quarter ending September 30, 2013, of not greater than 4.25 to 1.0, and for each quarter thereafter, of not greater than 4.0 to 1.0; and | |
• | Maintenance of an interest coverage ratio on a rolling four quarters basis, as adjusted, of EBITDA to interest expense, as of the end of each quarter, to be less than 2.5 to 1.0. | |
All outstanding amounts owed become due and payable upon the occurrence of certain usual and customary events of default, including among others: | ||
• | Failure to make payments; | |
• | Non-performance of covenants and obligations continuing beyond any applicable grace period; and | |
• | The occurrence of a change in control of Gastar USA, as defined in the New Revolving Credit Facility. | |
On July 31, 2013, Gastar USA, together with the parties thereto, entered into the Waiver, Agreement and Amendment No. 1 to Second Amended and Restated Credit Agreement (the “First Amendment”). The First Amendment amended the New Revolving Credit Facility to clarify the current ratio covenant calculation. | ||
On October 18, 2013, Gastar USA, together with the parties thereto, entered into the Agreement and Amendment No. 2 (“Amendment No. 2”) to Second Amended and Restated Credit Agreement, dated as of June 7, 2013. Amendment No. 2 amended the New Revolving Credit Facility to, among other things, (i) increase the aggregate principal amount of 8 5/8% Senior Secured Notes due 2018 permitted to be issued from $200.0 million to $325.0 million, (ii) allow for the issuance by Gastar USA of Series B Preferred Stock and (iii) increase the aggregate amount of cash dividends permitted to be paid to preferred stockholders from $12.5 million to $20.0 million. | ||
Borrowing base redeterminations are scheduled semi-annually in May and November of each calendar year. Gastar USA and its lenders may request one additional unscheduled redetermination during any six-month period between scheduled redeterminations. At September 30, 2013, the New Revolving Credit Facility had a borrowing base of $50.0 million, with $0 borrowings outstanding and availability of $50.0 million. The next regularly scheduled redetermination is set for November 2013. Future increases in the borrowing base in excess of the $50.0 million are limited to 17.5% of the increase in adjusted consolidated net tangible assets as defined in the Notes agreement (as discussed below in “Senior Secured Notes”). | ||
At September 30, 2013, Gastar USA was in compliance with all financial covenants under the New Revolving Credit Facility. | ||
Amended and Restated Revolving Credit Facility | ||
For the period October 28, 2009 through June 6, 2013, Gastar USA, together with the other parties thereto, was subject to an amended and restated credit facility (the “Old Amended Revolving Credit Facility”). The Old Amended Revolving Credit Facility provided for various borrowing base amounts based on an initial borrowing base of $47.5 million and a final borrowing base of $160.0 million effective March 31, 2013. Borrowings bore interest, at Gastar USA’s election, at the prime rate or LIBO rate plus an applicable margin. The applicable interest rate margin varied from 1.0% to 2.0% in the case of borrowings based on the prime rate and from 2.5% to 3.5% in the case of borrowings based on LIBO rate, depending on the utilization percentage in relation to the borrowing base. An annual commitment fee of 0.5% was payable quarterly based on the unutilized balance of the borrowing base. The Old Amended Revolving Credit Facility had a final scheduled maturity date of September 30, 2015. | ||
The Old Amended Revolving Credit Facility was guaranteed by Parent (as defined in the Old Amended Revolving Credit Facility) and all of Gastar USA’s current domestic subsidiaries and all future domestic subsidiaries formed during the term of the Old Amended Revolving Credit Facility. Borrowings and related guarantees were secured by a first priority lien on all domestic natural gas and oil properties currently owned by or later acquired by Gastar USA and its subsidiaries, excluding de minimus value properties as determined by the lender. The facility was secured by a first priority pledge of the stock of each domestic subsidiary, a first priority interest on all accounts receivable, notes receivable, inventory, contract rights, general intangibles and material property of the issuer and 65% of the stock of each foreign subsidiary of Gastar USA. | ||
The Old Amended Revolving Credit Facility contained various covenants, including among others: | ||
• | Restrictions on liens, incurrence of other indebtedness without lenders' consent and other restricted payments including a restriction on the amount of cash dividends to be paid in aggregate on the Gastar USA Series A Preferred Stock each calendar year, subject to certain available commitment thresholds; | |
• | Limitation of hedging volumes with a final limitation of 100% of the proved developed reserves as reflected in Gastar USA's reserve report using hedging other than floors and protective spreads; | |
• | Maintenance of a minimum consolidated current ratio as of the end of each quarter of not less than 1.0 to 1.0, as adjusted, except for quarters ending on March 31, 2013 through December 31, 2013 whereby the ratio was reduced to 0.6 to 1.0 and making certain changes in the calculation of current liabilities for such periods to exclude advances from non-operators; | |
• | Maintenance of a maximum ratio of indebtedness to EBITDA on a rolling four quarter basis, as adjusted, of not greater than 4.0 to 1.0; and | |
• | Maintenance of an interest coverage ratio on a rolling four quarters basis, as adjusted, of EBITDA to interest expense, as of the end of each quarter, to be less than 2.5 to 1.0. | |
All outstanding amounts owed became due and payable upon the occurrence of certain usual and customary events of default, including among others: | ||
• | Failure to make payments; | |
• | Non-performance of covenants and obligations continuing beyond any applicable grace period; and | |
• | The occurrence of a “Change in Control” (as defined in the Old Amended Revolving Credit Facility) of the Parent. | |
The Old Amended Revolving Credit Facility was amended and restated on June 7, 2013. | ||
Senior Secured Notes | ||
On May 15, 2013, Gastar USA issued $200.0 million aggregate principal amount of its 8 5/8% Senior Secured Notes due 2018 (the “Notes”) under an indenture (the “Indenture”) by and among Gastar USA, the Guarantors named therein (the “Guarantors”), Wells Fargo Bank, National Association, as Trustee (in such capacity, the “Trustee”) and Collateral Agent (in such capacity, the “Collateral Agent”). The Notes bear interest at a rate of 8.625% per year, payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2013. The Notes will mature on May 15, 2018. | ||
In the event of a change of control, as defined in the Indenture, each holder of the Notes will have the right to require Gastar USA to repurchase all or any part of their notes at an offer price in cash equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. | ||
The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by each of Gastar USA's material subsidiaries and certain future domestic subsidiaries (the “Guarantees”). The Notes and Guarantees will rank senior in right of payment to all of Gastar USA's and the Guarantors' future subordinated indebtedness and equal in right of payment to all of Gastar USA's and the Guarantors' existing and future senior indebtedness. The Notes and Guarantees also will be effectively senior to Gastar USA's unsecured indebtedness and effectively subordinated to Gastar USA's and Guarantors' under the New Revolving Credit Facility, any other indebtedness secured by a first-priority lien on the same collateral and any other indebtedness secured by assets other than the collateral, in each case to the extent of the value of the assets securing such obligation. | ||
The Indenture contains covenants that, among other things, limit Gastar USA's ability and the ability of its subsidiaries to: | ||
• | Transfer or sell assets or use asset sale proceeds; | |
• | Pay dividends or make distributions, redeem subordinated debt or make other restricted payments; | |
• | Make certain investments; incur or guarantee additional debt or issue preferred equity securities; | |
• | Create or incur certain liens on Gastar USA's assets; | |
• | Incur dividend or other payment restrictions affecting future restricted subsidiaries; | |
• | Merge, consolidated or transfer all or substantially all of Gastar USA's assets; | |
• | Enter into certain transactions with affiliates; and | |
• | Enter into certain sale and leaseback transactions. | |
These and other covenants that are contained in the Indenture are subject to important limitations and qualifications that are described in the Indenture. | ||
On May 15, 2013, in connection with the issuance and sale of the Notes, Gastar USA and each of the Guarantors entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with Imperial Capital, LLC, as representative of the initial purchasers. Under the Registration Rights Agreement, Gastar USA has agreed, subject to certain exceptions, to (i) file a registration statement with the SEC with respect to an exchange of the Notes for new notes having terms substantially identical in all material respects to the Notes (except that the exchange notes will not contain terms relating to transfer restrictions), (ii) use its reasonable best efforts to cause the exchange offer registration statement to be declared effective under the Securities Act of 1933, as amended, within 360 days after the issue date of the Notes, (iii) as soon as practicable after the effectiveness of the exchange offer registration statement, offer the exchange notes in exchange for the Notes, and (iv) keep the registered exchange offer open for not less than 30 days (or longer if required by applicable law) after the date of the registered exchange offer is mailed to the holders of the Notes. Gastar USA and the Guarantors also agreed to file a shelf registration statement for the resale of the Notes if an exchange offer cannot be effected within the time period specified above and in other circumstances. | ||
At September 30, 2013, the Notes reflected a balance of $194.8 million, net of unamortized discounts of $5.2 million, on the condensed consolidated balance sheets. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The Company’s financial assets and liabilities are measured at fair value on a recurring basis. The Company discloses its recognized non-financial assets and liabilities, such as asset retirement obligations, unproved properties and other property and equipment, at fair value on a non-recurring basis. For non-financial assets and liabilities, the Company is required to disclose information that enables users of its financial statements to assess the inputs used to develop these measurements. The Company assesses its unproved properties for impairment whenever events or circumstances indicate the carrying value of those properties may not be recoverable. The fair value of the unproved properties is measured using an income approach based upon internal estimates of future production levels, current and future prices, drilling and operating costs, discount rates, current drilling plans and favorable and unfavorable drilling activity on the properties being evaluated and/or adjacent properties or estimated market data based on area transactions, which are Level 3 inputs. For the three and nine months ended September 30, 2013, management's evaluation of unproved properties resulted in an impairment. Due to continued lower natural gas prices for dry gas and no current plans to drill or extend leases in Marcellus East, the Company reclassified $8.0 million of unproved properties to proved properties as of September 30, 2013 related to acreage in Marcellus East. For the nine months ended September 30, 2012, the Company reclassified $19.1 million of unproved properties to proved properties due to a decline in natural gas prices and the suspension of drilling activity in East Texas. As no other fair value measurements are required to be recognized on a non-recurring basis at September 30, 2013, no additional disclosures are provided at September 30, 2013. | ||||||||||||||||
As defined in the guidance, fair value is the amount 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 (an exit price). To estimate fair value, the Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). The three levels of the fair value hierarchy are as follows: | ||||||||||||||||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company’s cash equivalents consist of short-term, highly liquid investments, which have maturities of 90 days or less, including sweep investments and money market funds. | |||||||||||||||
• | Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | |||||||||||||||
• | Level 3 inputs are measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources. These inputs may be used with internally developed methodologies or third party broker quotes that result in management’s best estimate of fair value. The Company’s valuation models consider various inputs including (a) quoted forward prices for commodities, (b) time value, (c) volatility factors and (d) current market and contractual prices for the underlying instruments. Significant increases or decreases in any of these inputs in isolation would result in a significantly higher or lower fair value measurement. Level 3 instruments are commodity costless collars, index swaps, basis and fixed price swaps and put and call options to hedge natural gas, oil and NGLs price risk. At each balance sheet date, the Company performs an analysis of all applicable instruments and includes in Level 3 all of those whose fair value is based on significant unobservable inputs. The fair values derived from counterparties and third-party brokers are verified by the Company using publicly available values for relevant NYMEX futures contracts and exchange traded contracts for each derivative settlement location. Although such counterparty and third-party broker quotes are used to assess the fair value of its commodity derivative instruments, the Company does not have access to the specific assumptions used in its counterparties valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided and the Company does not currently have sufficient corroborating market evidence to support classifying these contracts as Level 2 instruments. | |||||||||||||||
As required, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values below incorporates various factors, including the impact of the counterparty’s non-performance risk with respect to the Company’s financial assets and the Company’s non-performance risk with respect to the Company’s financial liabilities. The Company has not elected to offset the fair value amounts recognized for multiple derivative instruments executed with the same counterparty, but reports them gross on its consolidated balance sheets. | ||||||||||||||||
Transfers between levels are recognized at the end of the reporting period. There were no transfers between levels during the 2013 and 2012 periods. | ||||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 and December 31, 2012: | ||||||||||||||||
Fair value as of September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 21,375 | $ | — | $ | — | $ | 21,375 | ||||||||
Commodity derivative contracts | — | — | 9,658 | 9,658 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | — | — | (794 | ) | (794 | ) | ||||||||||
Total | $ | 21,375 | $ | — | $ | 8,864 | $ | 30,239 | ||||||||
Fair value as of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 8,901 | $ | — | $ | — | $ | 8,901 | ||||||||
Commodity derivative contracts | — | — | 9,168 | 9,168 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | — | — | (2,703 | ) | (2,703 | ) | ||||||||||
Total | $ | 8,901 | $ | — | $ | 6,465 | $ | 15,366 | ||||||||
The table below presents a reconciliation of the assets and liabilities classified as Level 3 in the fair value hierarchy for the three and nine months ended September 30, 2013 and 2012. Level 3 instruments presented in the table consist of net derivatives that, in management’s opinion, reflect the assumptions a marketplace participant would have used at September 30, 2013 and 2012. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 4,335 | $ | 15,460 | $ | 6,465 | $ | 15,873 | ||||||||
Total gains (losses) (realized or unrealized): | ||||||||||||||||
included in earnings | (5,263 | ) | (2,045 | ) | (2,229 | ) | 4,594 | |||||||||
Purchases | 9,470 | — | 9,470 | — | ||||||||||||
Issuances | — | — | — | — | ||||||||||||
Settlements (1) | 322 | (4,314 | ) | (4,842 | ) | (11,366 | ) | |||||||||
Transfers in and (out) of Level 3 | — | — | — | — | ||||||||||||
Balance at end of period | $ | 8,864 | $ | 9,101 | $ | 8,864 | $ | 9,101 | ||||||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or (losses) relating to assets still held at September 30, 2013 and 2012 | $ | (5,004 | ) | $ | (5,403 | ) | $ | (7,156 | ) | $ | (4,123 | ) | ||||
_________________________________ | ||||||||||||||||
-1 | Included in total revenues on the statement of operations. | |||||||||||||||
At September 30, 2013, the estimated fair value of accounts receivable, prepaid expenses, accounts and revenue payables and accrued liabilities approximates their carrying value due to their short-term nature. The estimated fair value of the Company’s long-term debt at September 30, 2013 was $199.3 million based on quoted market prices of the senior secured notes (Level 1). | ||||||||||||||||
The Company has consistently applied the valuation techniques discussed above in all periods presented. | ||||||||||||||||
The fair value guidance, as amended, establishes that every derivative instrument is to be recorded on the balance sheet as either an asset or liability measured at fair value. See Note 6, “Derivative Instruments and Hedging Activity.” |
Derivative_Instruments_And_Hed
Derivative Instruments And Hedging Activity | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activity | ' | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activity | |||||||||||||||||||||||||||||
The Company maintains a commodity price risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations that may arise from volatility in commodity prices. The Company uses costless collars, index, basis and fixed price swaps and put and call options to hedge natural gas, condensate, oil and NGLs price risk. | |||||||||||||||||||||||||||||
All derivative contracts are carried at their fair value on the balance sheet and all unrealized gains and losses are recorded in the statement of operations in unrealized hedge gain (loss), while realized gains and losses related to contract settlements are recognized in natural gas, condensate, oil and NGLs revenues. For the three months ended September 30, 2013 and 2012, the Company reported unrealized losses of $5.0 million and $5.4 million, respectively, in the condensed consolidated statement of operations related to the change in the fair value of its commodity derivative instruments. For the nine months ended September 30, 2013 and 2012, the Company reported unrealized losses of $7.2 million and a $4.1 million, respectively, in the condensed consolidated statement of operations related to the change in the fair value of its commodity derivative instruments. | |||||||||||||||||||||||||||||
As of September 30, 2013, the following natural gas derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | Floor | Short | Call | Ceiling | |||||||||||||||||||||
Daily | Notional | Fixed | (Long) | Put | (Long) | (Short) | |||||||||||||||||||||||
Volume | Volume | Price | |||||||||||||||||||||||||||
(in MMBtus) | |||||||||||||||||||||||||||||
2013 | Fixed price swap | 5,000 | 460,000 | $ | 3.65 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
2013 | Fixed price swap | 1,500 | 138,000 | $ | 3.85 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
2013 | Fixed price swap | 1,500 | 138,000 | 4 | — | — | — | — | |||||||||||||||||||||
2013 | Fixed price swap | 3,000 | 276,000 | 4.06 | — | — | — | — | |||||||||||||||||||||
2013 | Fixed price swap | 2,500 | 230,000 | 4.05 | — | — | — | — | |||||||||||||||||||||
2013 | Fixed price swap | 12,663 | 1,165,000 | 3.87 | — | — | — | — | |||||||||||||||||||||
2013 (1) | Fixed price swap | 2,500 | 77,500 | 4.05 | — | — | — | — | |||||||||||||||||||||
2013 (2) | Protective spread | 2,500 | 152,500 | 4.05 | — | 3.79 | — | — | |||||||||||||||||||||
2013 (1) | Costless collar | 2,500 | 77,500 | — | 5 | — | — | 6.45 | |||||||||||||||||||||
2013 (2) | Short calls | 2,500 | 152,500 | — | — | — | — | 6.45 | |||||||||||||||||||||
2013 | Call spread | 2,500 | 230,000 | — | — | — | 4.75 | 5.25 | |||||||||||||||||||||
2013 | Basis - HSC (4) | 4,000 | 368,000 | (0.11 | ) | — | — | — | — | ||||||||||||||||||||
2014 | Short calls | 2,500 | 912,500 | — | — | — | — | 4.59 | |||||||||||||||||||||
2014 | Costless three-way collar | 10,500 | 3,832,500 | — | 3.88 | 3 | — | 4.53 | |||||||||||||||||||||
2014 | Fixed price swap | 11,136 | 4,064,500 | 4.06 | — | — | — | — | |||||||||||||||||||||
2015 | Fixed price swap | 3,000 | 1,095,000 | 4 | — | — | — | — | |||||||||||||||||||||
2015 | Fixed price swap | 2,500 | 912,500 | 4.06 | — | — | — | — | |||||||||||||||||||||
2016 | Fixed price swap | 2,000 | 732,000 | 4.11 | — | — | — | — | |||||||||||||||||||||
_______________________________ | |||||||||||||||||||||||||||||
-1 | For the period July to October 2013. | ||||||||||||||||||||||||||||
-2 | For the period November to December 2013. | ||||||||||||||||||||||||||||
-3 | East Houston-Katy - Houston Ship Channel. | ||||||||||||||||||||||||||||
As of September 30, 2013, the following crude derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | Floor | Short | Ceiling | ||||||||||||||||||||||
Daily | Notional | Fixed | (Long) | Put | (Short) | ||||||||||||||||||||||||
Volume (1) | Volume | Price | |||||||||||||||||||||||||||
(in Bbls) | |||||||||||||||||||||||||||||
2013 | Fixed price swap | 250 | 23,000 | $ | 103.95 | $ | — | $ | — | $ | — | ||||||||||||||||||
2013 | Fixed price swap | 850 | 78,200 | 99.77 | — | — | — | ||||||||||||||||||||||
2013 | Fixed price swap | 400 | 36,800 | 94.86 | — | — | — | ||||||||||||||||||||||
2013 | Fixed price swap | 611 | 56,200 | 92.8 | — | — | — | ||||||||||||||||||||||
2013 (2) | Put | 1,000 | 31,000 | — | 103 | — | — | ||||||||||||||||||||||
2014 (3) | Fixed price swap | 300 | 54,300 | 98.05 | — | — | — | ||||||||||||||||||||||
2014 (3) | Fixed price swap | 550 | 99,550 | 95.15 | — | — | — | ||||||||||||||||||||||
2014 (3) | Put | 900 | 162,900 | — | 98 | — | — | ||||||||||||||||||||||
2014 (4) | Fixed price swap | 200 | 36,800 | 93 | — | — | — | ||||||||||||||||||||||
2014 (4) | Fixed price swap | 350 | 64,400 | 91.55 | — | — | — | ||||||||||||||||||||||
2014 (4) | Put | 750 | 138,000 | — | 93 | — | — | ||||||||||||||||||||||
2014 | Costless collar | 200 | 73,000 | — | 98 | — | 98 | ||||||||||||||||||||||
2014 | Fixed price swap | 500 | 182,500 | 91.1 | — | — | — | ||||||||||||||||||||||
2014 | Fixed price swap | 270 | 98,500 | 90.77 | — | — | — | ||||||||||||||||||||||
2014 (5) | Put spread | 200 | 24,400 | — | 93 | 73 | — | ||||||||||||||||||||||
2015 | Producer three-way collar | 345 | 126,100 | — | 85 | 65 | 97.8 | ||||||||||||||||||||||
2015 | Producer three-way collar | 400 | 146,000 | — | 85 | 70 | 96.5 | ||||||||||||||||||||||
2015 | Put spread | 250 | 91,250 | — | 89 | 69 | — | ||||||||||||||||||||||
2015 (6) | Producer three-way collar | 150 | 27,150 | — | 85 | 65 | 96.25 | ||||||||||||||||||||||
2015 (6) | Put spread | 700 | 126,700 | — | 90 | 70 | — | ||||||||||||||||||||||
2015 (7) | Producer three-way collar | 50 | 9,200 | — | 85 | 65 | 96.25 | ||||||||||||||||||||||
2015 (7) | Put spread | 600 | 110,400 | — | 87 | 67 | — | ||||||||||||||||||||||
2016 | Producer three-way collar | 275 | 100,600 | — | 85 | 65 | 95.1 | ||||||||||||||||||||||
2016 | Producer three-way collar | 330 | 120,780 | — | 80 | 65 | 97.35 | ||||||||||||||||||||||
2016 | Put spread | 550 | 201,300 | — | 85 | 65 | — | ||||||||||||||||||||||
2016 | Put spread | 300 | 109,800 | — | 85.5 | 65.5 | — | ||||||||||||||||||||||
2017 | Producer three-way collar | 242 | 88,150 | — | 80 | 60 | 98.7 | ||||||||||||||||||||||
2017 | Producer three-way collar | 280 | 102,200 | — | 80 | 65 | 97.25 | ||||||||||||||||||||||
2017 | Put spread | 500 | 182,500 | — | 82 | 62 | — | ||||||||||||||||||||||
2018 | Put spread | 425 | 103,275 | — | 80 | 60 | — | ||||||||||||||||||||||
_______________________________ | |||||||||||||||||||||||||||||
-1 | Crude volumes hedged include oil, condensate and certain components of our NGLs production. | ||||||||||||||||||||||||||||
-2 | For the period December 2013. | ||||||||||||||||||||||||||||
-3 | For the period January to June 2014. | ||||||||||||||||||||||||||||
-4 | For the period July to December 2014. | ||||||||||||||||||||||||||||
-5 | For the period September to December 2014. | ||||||||||||||||||||||||||||
-6 | For the period January to June 2015. | ||||||||||||||||||||||||||||
-7 | For the period July to December 2015. | ||||||||||||||||||||||||||||
As of September 30, 2013, the following NGLs derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | |||||||||||||||||||||||||
Daily | Notional | Fixed | |||||||||||||||||||||||||||
Volume | Volume | Price | |||||||||||||||||||||||||||
(in Bbls) | |||||||||||||||||||||||||||||
2013 | Fixed price swap | 150 | 13,800 | $ | 41.06 | ||||||||||||||||||||||||
2013 | Fixed price swap | 350 | 32,200 | 39.38 | |||||||||||||||||||||||||
As of September 30, 2013, all of the Company’s economic derivative hedge positions were with multinational energy companies or large financial institutions, which are not known to the Company to be in default on their derivative positions. The Company is exposed to credit risk to the extent of non-performance by the counterparties in the derivative contracts discussed above; however, the Company does not anticipate non-performance by such counterparties. None of the Company’s derivative instruments contains credit-risk related contingent features. | |||||||||||||||||||||||||||||
In conjunction with certain derivative hedging activity, the Company deferred the payment of certain put premiums for the production month period December 2013 through August 2018. The put premium liabilities become payable monthly as the hedge production month becomes the prompt production month. The Company will begin amortizing the deferred put premium liabilities in December 2013. The following table provides information regarding the deferred put premium liabilities for the periods indicated: | |||||||||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | ||||||||||||||||||||||||||||
Current commodity derivative premium put payable | $ | 1,819 | $ | — | |||||||||||||||||||||||||
Long-term commodity derivative premium payable | 7,651 | — | |||||||||||||||||||||||||||
Total unamortized put premium liabilities | $ | 9,470 | $ | — | |||||||||||||||||||||||||
Additional Disclosures about Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||
The tables below provide information on the location and amounts of derivative fair values in the condensed consolidated statement of financial position and derivative gains and losses in the condensed consolidated statement of operations for derivative instruments that are not designated as hedging instruments: | |||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||
Derivative Assets (Liabilities) | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
Balance Sheet Location | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Current assets | $ | 2,259 | $ | 7,799 | ||||||||||||||||||||||||
Commodity derivative contracts | Other assets | 7,399 | 1,369 | ||||||||||||||||||||||||||
Commodity derivative contracts | Current liabilities | (794 | ) | (1,399 | ) | ||||||||||||||||||||||||
Commodity derivative contracts | Long-term liabilities | — | (1,304 | ) | |||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 8,864 | $ | 6,465 | |||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | |||||||||||||||||||||||||||||
Recognized in Income on | |||||||||||||||||||||||||||||
Derivatives For the Three | |||||||||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivatives | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Natural gas, condensate, oil and NGLs revenues | $ | (259 | ) | $ | 3,404 | |||||||||||||||||||||||
Commodity derivative contracts | Unrealized hedge loss | (5,004 | ) | (5,403 | ) | ||||||||||||||||||||||||
Commodity derivative contracts | Interest expense | — | (46 | ) | |||||||||||||||||||||||||
Total | $ | (5,263 | ) | $ | (2,045 | ) | |||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | |||||||||||||||||||||||||||||
Recognized in Income on | |||||||||||||||||||||||||||||
Derivatives For the Nine | |||||||||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivatives | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Natural gas, condensate, oil and NGLs revenues | $ | 4,927 | $ | 8,847 | ||||||||||||||||||||||||
Commodity derivative contracts | Unrealized hedge loss | (7,156 | ) | (4,123 | ) | ||||||||||||||||||||||||
Commodity derivative contracts | Interest expense | — | (130 | ) | |||||||||||||||||||||||||
Total | $ | (2,229 | ) | $ | 4,594 | ||||||||||||||||||||||||
Capital_Stock
Capital Stock | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Stockholders' Equity Note [Abstract] | ' | |||||
Capital Stock | ' | |||||
Capital Stock | ||||||
Other Share Issuances | ||||||
The following table provides information regarding the issuances and forfeitures of Parent’s common shares pursuant to Parent’s 2006 Long-Term Stock Incentive Plan (the “2006 Plan”) for the periods indicated: | ||||||
For the Three Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2013 | |||||
Other share issuances: | ||||||
Restricted common shares granted | 41,212 | 2,219,115 | ||||
Restricted common shares vested | 123,250 | 753,779 | ||||
Common shares surrendered upon vesting (1) | 32,751 | 222,144 | ||||
Common shares forfeited | 466,535 | 512,862 | ||||
__________________ | ||||||
-1 | Represents common shares forfeited in connection with the payment of estimated withholding taxes on restricted common shares that vested during the period. | |||||
On June 7, 2012, Parent's shareholders voted to approve the Second Amendment to the 2006 Plan. This amendment, effective June 3, 2012, increased the total number of shares available for issuance under the plan from 6,000,000 shares to 11,000,000 shares. There were 1,931,793 shares available for issuance under the 2006 Plan at September 30, 2013. | ||||||
Shares Reserved | ||||||
At September 30, 2013, Parent had 909,100 common shares reserved for the exercise of stock options. | ||||||
Shares Owned by Chesapeake Energy Corporation | ||||||
On March 28, 2013, the Company entered into a Settlement Agreement, dated March 28, 2013, between Chesapeake Exploration, L.L.C. and Chesapeake Energy Corporation (collectively, “Chesapeake”) and the Company, Gastar Exploration Texas, LP and Gastar Exploration Texas, LLC (the “Settlement Agreement”). Pursuant to the Settlement Agreement, the Company settled and resolved all claims of Chesapeake and its subsidiaries against the Company and its subsidiaries made in a previously disclosed lawsuit filed in the U.S. District Court for the Southern District of Texas. In order to effect a mutual full and unconditional release and settlement of all claims made in the lawsuit filed by Chesapeake, the Company paid Chesapeake approximately $10.8 million in cash, approximately $9.8 million of which was paid for the repurchase of 6,781,768 outstanding common shares of Parent held by Chesapeake Energy Corporation upon the closing of the stock repurchase and settlement on June 7, 2013. See Note 13, “Commitments and Contingencies.” | ||||||
Gastar USA Common Stock | ||||||
Prior to its conversion, as described below, Gastar USA’s articles of incorporation allowed Gastar USA to issue 1,000 shares of common stock, without par value. There were 750 shares issued and outstanding at September 30, 2013 and December 31, 2012, all of which were held by Parent. | ||||||
On May 24, 2011, Gastar USA converted from a Michigan corporation to a Delaware corporation (the “Conversion”). Following the Conversion, Gastar USA’s new Delaware certificate of incorporation allows Gastar USA to issue 1,000 shares of common stock, without par value. In connection with the Conversion, the Parent’s 750 shares of common stock in the Michigan corporation were converted to 750 shares of common stock in the new Gastar USA Delaware corporation. | ||||||
On October 25, 2013, Gastar USA filed an Amended and Restated Certificate of Incorporation (the “A&R Certificate”) with the Secretary of State of the State of Delaware. Under the A&R Certificate, the capital stock authorized for issuance was increased from 1,000 shares of common stock, without par value, to 275,000,000 shares of common stock, par value $0.001 per share. | ||||||
Gastar USA Series A Preferred Stock | ||||||
Prior to the Conversion, Gastar USA’s articles of incorporation did not authorize issuance of preferred stock. | ||||||
Following the Conversion, Gastar USA’s new Delaware certificate of incorporation allows Gastar USA to issue 10,000,000 shares of preferred stock, with $0.01 par value. The preferred stock may be issued from time to time in one or more series. Gastar USA’s Board of Directors (the “Gastar USA Board”) is authorized to fix the number of shares of any series of preferred stock and to determine the designation of any such series. The Gastar USA Board is also authorized to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of preferred stock and, within the limits and restrictions stated in any resolution or resolutions of the Gastar USA Board originally fixing the number of shares constituting any series, to increase or decrease (but not below the number of shares of any such series outstanding) the number of shares of any series subsequent to the issues shares of that series. | ||||||
For the nine months ended September 30, 2013, Gastar USA sold 6,906 shares of Series A Preferred Stock under its at the market preferred share purchase agreement (the “ATM Agreement”) for net proceeds of $136,000. At September 30, 2013, there were 3,958,160 total shares of Series A Preferred Stock issued and outstanding. Subsequent to September 30, 2013, Gastar USA did not sell any additional shares of Series A Preferred Stock under the ATM Agreement. | ||||||
The Series A Preferred Stock is subordinated to all of Gastar USA’s existing and future debt and all future capital stock designated as senior to the Series A Preferred Stock. Parent has entered into a guarantee agreement, whereby it will fully and unconditionally guarantee the payment of dividends that have been declared by the board of directors of Gastar USA, amounts payable upon redemption or liquidation, dissolution or winding up, and any other amounts due with respect to the Series A Preferred Stock, to the extent described in the guarantee agreement. Parent’s obligations with respect to the guarantee will be effectively subordinated to all of its existing and future debt. | ||||||
The Series A Preferred Stock cannot be converted into common stock of Gastar USA or the Company, but may be redeemed by Gastar USA, at Gastar USA’s option, on or after June 23, 2014 for $25.00 per share plus any accrued and unpaid dividends or in certain circumstances prior to such date as a result of a change in control. Following a change in control, Gastar USA will have the option to redeem the Series A Preferred Stock, in whole but not in part, within 90 days after the date on which the change in control occurs, for cash at the following prices per share, plus accrued and unpaid dividends (whether or not declared), up to the redemption date: | ||||||
Redemption Date | Redemption | |||||
Price | ||||||
On or after June 23, 2013 and prior to June 23, 2014 | $ | 25.25 | ||||
On or after June 23, 2014 | $ | 25 | ||||
Gastar USA pays cumulative dividends on the Series A Preferred Stock at a fixed rate of 8.625% per annum of the $25.00 per share liquidation preference. For the three and nine months ended September 30, 2013, Gastar USA recognized dividend expense of $2.1 million and $6.4 million, respectively. | ||||||
Gastar USA Series B Preferred Stock | ||||||
On October 25, 2013, Gastar USA filed the A&R Certificate with the Secretary of State of the State of Delaware. Under the A&R Certificate, the capital stock authorized for issuance was increased from 10,000,000 shares of preferred stock, par value $0.01 per share, to 40,000,000 shares of preferred stock, par value $0.01 per share. On October 31, 2013 Gastar USA filed a Certificate of Designation of Rights and Preferences (the “Certificate of Designation”) to its Certificate of Incorporation for the Series B Preferred Stock with the Secretary of State of the State of Delaware with respect to 10,000,000 shares of Series B Preferred Stock. | ||||||
On October 29, 2013, Gastar USA announced the pricing of an underwritten public offering of 2,000,000 shares of its 10.75% Series B Cumulative Preferred Stock, par value $0.01 per share and liquidation preference $25.00 per share (the “Series B Preferred Stock”). On November 1, 2013, the underwriters partially exercised their option to purchase additional shares of Series B Preferred Stock and will purchase an additional 140,000 shares of Series B Preferred Stock. The issuance of the 2,140,000 shares of Series B Preferred Stock is expected to close on or about November 5, 2013 with total net proceeds to Gastar USA from the offering expected to be approximately $50.1 million after deducting underwriting commissions and estimated offering expenses. | ||||||
The Series B Preferred Stock will rank senior to Gastar USA’s common stock and on parity with its 8.625% Series A Cumulative Preferred Stock with respect to the payment of dividends and distribution of assets upon liquidation, dissolution or winding up. The Series B Preferred Stock will be subordinated to all of Gastar USA’s existing and future debt and all future capital stock designated as senior to the Series B Preferred Stock. The Parent has entered into a guarantee agreement, whereby it will fully and unconditionally guarantee the payment of dividends that have been declared by the board of directors of Gastar USA, amounts payable upon redemption or liquidation, dissolution or winding up, and any other amounts due with respect to the Series B Preferred Stock, to the extent described in the guarantee agreement. Parent’s obligations with respect to the guarantee will be effectively subordinated to all of its existing and future debt. | ||||||
Except upon a change in ownership or control, the Series B Preferred Stock may not be redeemed before November 15, 2018, at or after which time it may be redeemed at Gastar USA’s option for $25.00 per share in cash. Following a change in ownership or control, Gastar USA will have the option to redeem the Series B Preferred Stock, in whole but not in part for $25.00 per share in cash, plus accrued and unpaid dividends (whether or not declared), up to, but not including the redemption date. If Gastar USA does not exercise its option to redeem the Series B Preferred Stock upon a change of ownership or control, the holders of the Series B Preferred Stock have the option to convert the shares of Series B Preferred Stock into up to and aggregate of 11.5207 shares of Gastar USA’s common stock per share of Series B Preferred Stock, subject to certain adjustments. If Gastar USA exercises any of its redemption rights relating to shares of Series B Preferred Stock, the holders of Series B Preferred Stock will not have the conversion right described above with respect to the shares of Series B Preferred Stock called for redemption. Notwithstanding any of the foregoing, if a change of ownership or control occurs prior to the consummation of the Reorganization Transactions (as defined in the Certificate of Designation), (i) the holders of Series B Preferred Stock shall not have the conversion right described above and (ii) the dividend rate shall increase to 12.75%. | ||||||
There is no mandatory redemption of the Series B Preferred Stock. |
Equity_Compensation_PBUs
Equity Compensation - PBUs | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Equity Compensation Plans | ' | |||||||
Equity Compensation Plans | ||||||||
Share-Based Compensation Plan | ||||||||
Pursuant to the 2006 Plan, as amended, the Company's Compensation Committee agreed to allocate a portion of the 2013 long-term incentive grants to executives as performance based units (“PBUs”). The PBUs represent a contractual right to receive shares of Parent's common stock, an amount of cash equal to the fair market value of a share of Parent's common stock, or a combination of shares of Parent's common stock and cash as of the date of settlement based on the number of PBUs to be settled. The settlement of PBUs may range from 0% to 200% of the targeted number of PBUs stated in the agreement contingent upon the achievement of certain share price appreciation targets as compared to a peer group index. The PBUs vest equally and settlement is determined annually over a three year period. Any PBUs not vested at each measurement date will expire. | ||||||||
Compensation expense associated with PBUs is based on the grant date fair value of a single PBU as determined using a Monte Carlo simulation model which utilizes a stochastic process to create a range of potential future outcomes given a variety of inputs. As the Compensation Committee intends to settle the PBUs with shares of Parent's common stock at each measurement date, the PBU awards are accounted for as equity awards and the expense is calculated on the grant date assuming a 100% target payout and amortized over the life of the PBU award. | ||||||||
The table below provides a summary of PBUs as of the date indicated: | ||||||||
PBUs | Fair Value per Unit | |||||||
Unvested PBUs at December 31, 2012 | — | $ | — | |||||
Granted | 1,192,889 | 1.56 | ||||||
Vested | — | — | ||||||
Forfeited | (127,155 | ) | — | |||||
Unvested PBUs at September 30, 2013 | 1,065,734 | $ | 1.56 | |||||
For the three and nine months ended September 30, 2013, the Company recognized $217,000 and $722,000, respectively, of compensation expense associated with the PBUs granted on January 30, 2013. |
Interest_Expense
Interest Expense | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Interest Expense [Abstract] | ' | |||||||||||||||
Interest Expense | ' | |||||||||||||||
Interest Expense | ||||||||||||||||
The following table summarizes the components of interest expense for the periods indicated: | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||||
Interest expense: | ||||||||||||||||
Cash and accrued | $ | 4,376 | $ | 549 | $ | 8,238 | $ | 1,272 | ||||||||
Amortization of deferred financing costs (1)(2) | 340 | 60 | 1,790 | 157 | ||||||||||||
Capitalized interest | (1,277 | ) | (579 | ) | (2,435 | ) | (1,343 | ) | ||||||||
Total interest expense | $ | 3,439 | $ | 30 | $ | 7,593 | $ | 86 | ||||||||
__________________ | ||||||||||||||||
-1 | The nine months ended September 30, 2013 includes $1.2 million of deferred financing costs written off as a result of the new Revolving Credit Facility. See Note 4, “Long-Term Debt - Second Amended and Restated Revolving Credit Facility.” | |||||||||||||||
-2 | The three and nine months ended September 30, 2013 includes $221,000 and $330,000, respectively, of debt discount accretion related to the Notes. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Chesapeake Energy Corporation | |
Chesapeake Energy Corporation acquired 6,781,768 of Parent’s common shares during 2005 to 2007 in a series of private placement transactions. On March 28, 2013, the Company entered into a Settlement Agreement between Chesapeake Exploration, L.L.C. and Chesapeake Energy Corporation (collectively, “Chesapeake”) and the Company, Gastar Exploration Texas, LP and Gastar Exploration Texas, LLC (the “Settlement Agreement”). Pursuant to the Settlement Agreement, the Company settled and resolved all claims of Chesapeake and its subsidiaries against the Company and its subsidiaries made in a previously disclosed lawsuit filed in the U.S. District Court for the Southern District of Texas. In order to effect a mutual full and unconditional release and settlement of all claims made in the lawsuit filed by Chesapeake, the Company paid Chesapeake approximately $10.8 million in cash, approximately $9.8 million of which was paid for the repurchase of 6,781,768 outstanding common shares of Parent held by Chesapeake upon the closing of the stock repurchase and settlement on June 7, 2013. See Note 7, “Capital Stock - Shares Owned by Chesapeake Energy Corporation.” | |
Also on March 28, 2013, the Company entered into the Chesapeake Purchase Agreement, pursuant to which Gastar USA acquired the Chesapeake Assets on June 7, 2013. See Note 3, “Property, Plant and Equipment - Chesapeake Acquisition.” | |
As of September 30, 2013, Chesapeake Energy Corporation did not own any of Parent’s outstanding common shares. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
For the three and nine months ended September 30, 2013 and 2012, respectively, the Company did not recognize a current income tax benefit or provision due to the Company being in a net operating loss position for both periods. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings per Share | ||||||||||||||||
In accordance with the provisions of current authoritative guidance, basic earnings or loss per share is computed on the basis of the weighted average number of common shares outstanding during the periods. Diluted earnings or loss per share is computed based upon the weighted average number of common shares outstanding plus the assumed issuance of common shares for all potentially dilutive securities. Diluted amounts are not included in the computation of diluted loss per share, as such would be anti-dilutive. | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands, except per share and share data) | ||||||||||||||||
Net income (loss) attributable to Gastar Exploration Ltd. | $ | (3,942 | ) | $ | (83,457 | ) | $ | 43,308 | $ | (163,802 | ) | |||||
Weighted average common shares outstanding - basic | 57,359,357 | 63,601,645 | 61,159,117 | 63,494,224 | ||||||||||||
Incremental shares from unvested restricted shares | — | — | 2,565,888 | — | ||||||||||||
Incremental shares from outstanding PBUs | — | — | 246,033 | — | ||||||||||||
Weighted average common shares outstanding - diluted | 57,359,357 | 63,601,645 | 63,971,038 | 63,494,224 | ||||||||||||
Net income (loss) per common share attributable to Gastar Exploration Ltd. Common Shareholders: | ||||||||||||||||
Basic | $ | (0.07 | ) | $ | (1.31 | ) | $ | 0.71 | $ | (2.58 | ) | |||||
Diluted | $ | (0.07 | ) | $ | (1.31 | ) | $ | 0.68 | $ | (2.58 | ) | |||||
Common shares excluded from denominator as anti-dilutive: | ||||||||||||||||
Unvested restricted shares | — | 1,878,355 | 41,212 | 1,654,439 | ||||||||||||
Stock options | 756,200 | 979,725 | 919,100 | 926,271 | ||||||||||||
Total | 756,200 | 2,858,080 | 960,312 | 2,580,710 | ||||||||||||
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments And Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
Chesapeake Exploration L.L.C. (“Chesapeake Exploration”) and Chesapeake Energy Corp. (“Chesapeake Energy”) v. Gastar Exploration Ltd., Gastar Exploration Texas, LP, and Gastar Exploration Texas, LLC (No. 4:12-cv-2922), United States District Court for the Southern District of Texas, Houston Division. This lawsuit, filed on October 1, 2012, re-asserted the same claims for rescission of the November 2005 Agreements (as defined below) and for recovery of amounts paid under those agreements that Chesapeake Exploration and Chesapeake Energy (collectively, “Chesapeake”) previously asserted in the cross-action filed against the Company in the Navasota litigation described below, as previously disclosed in the Company's filings. In March 2011, Chesapeake dismissed its cross-claims against the Company in the Navasota litigation, without prejudice to their re-filing. In the new lawsuit, Chesapeake re-asserted those claims, seeking rescission of (a) a Purchase and Sale and Exploration and Development Agreement between the Company and Chesapeake Exploration Limited Partnership (the “Purchase and Sale Agreement”), relating to properties in the Hilltop Prospect in Texas, (b) an Exploration and Development Agreement between the Company and Chesapeake Exploration Limited Partnership, (c) a Common Share Purchase Agreement between the Company and Chesapeake Energy, and (d) a Registration Rights Agreement between the Company and Chesapeake Energy, all effective as of November 4, 2005 (collectively, “the November 2005 Agreements”), based on an alleged “mutual mistake” and alleged failure of consideration. Chesapeake alleged that the parties to the November 2005 Agreements believed that the Gastar defendants had the right to convey to Chesapeake Exploration the properties that were the subject of the Purchase and Sale Agreement, notwithstanding the exercise by Navasota Resources LP (“Navasota”) of a preferential right to purchase the interest in the Hilltop Prospect properties. The dispute over the validity of Navasota's exercise of its preferential right to purchase was the subject of litigation filed by Navasota prior to the execution of the November 2005 Agreements. Chesapeake claims that the Texas Court of Appeals' subsequent ruling in that litigation upholding the validity of Navasota's exercise of the preferential right to purchase established that there was a mutual mistake of fact and a failure of consideration with regard to the November 2005 Agreements. In the alternative, Chesapeake claimed that the Gastar defendants had been unjustly enriched at the expense of Chesapeake by the funds paid by Chesapeake to the Gastar defendants. In their complaint filed in the lawsuit, Chesapeake offered to return Parent's common shares purchased pursuant to the Common Stock Purchase Agreement, and sought restitution from the Gastar defendants of the net amount of approximately $101.4 million, which included the $76.0 million that Chesapeake Energy paid for Parent's common shares (now 5,430,329 shares after a 1:5 stock split) that Chesapeake Energy purchased in 2005 and now seeks to return. In a motion to compel arbitration filed by Chesapeake on October 24, 2012, Chesapeake asked the court to order arbitration of the claims asserted in the complaint pursuant to an arbitration clause in the Common Share Purchase Agreement. | |
The Gastar defendants responded to the lawsuit by filing a motion to dismiss, contending that the claims failed as a matter of law. Specifically, the Gastar defendants contended in the motion to dismiss that all facts relating to the Navasota claim were fully known to the parties at the time of execution of the November 2005 Agreements, and the parties expressly agreed in the Purchase and Sale Agreement that Chesapeake Exploration would take title to the properties subject to Navasota's claim and would convey the properties to Navasota in the event Navasota prevailed in the litigation, precluding Chesapeake's claims for rescission of the November 2005 Agreements. For the same reasons, the Gastar defendants also contended in the motion to dismiss that Chesapeake received all of the consideration that the November 2005 Agreements called for and that there was no failure of consideration. With regard to Chesapeake's alternative unjust enrichment claim, the Gastar defendants contended in the motion to dismiss that it is barred by the two-year statute of limitations and that in any event, it failed for a variety of reasons, including the fact that the parties' agreements address the subject matter of the dispute (precluding a claim for unjust enrichment) and the fact that the Gastar defendants were not unjustly enriched by Chesapeake Exploration's payment of the share of costs attributable to an interest in the properties that was not owned by the Gastar defendants. The Gastar defendants also contended in their response to the motion to compel arbitration that Chesapeake's claims are not subject to arbitration and that the claims should be resolved on the merits by the federal court in which Chesapeake filed the lawsuit. | |
On March 28, 2013, the Company entered into a Settlement Agreement between Chesapeake and the Gastar defendants (the “Settlement Agreement”). Pursuant to the Settlement Agreement, the Gastar defendants settled and resolved all claims of Chesapeake and its subsidiaries against the Company and its subsidiaries made in the Chesapeake lawsuit. In order to affect a mutual full and unconditional release and settlement of all claims made in the lawsuit filed by Chesapeake, the Company paid Chesapeake approximately $10.8 million in cash, approximately $9.8 million of which was paid for the repurchase of 6,781,768 outstanding common shares of the Company currently held by Chesapeake Energy Corporation. | |
On the same day that the Company entered into the Settlement Agreement, Gastar USA entered into an agreement for the acquisition of certain properties from Chesapeake. The closing of the proposed property acquisition, stock repurchase and settlement for an adjusted aggregate cash payment of $80.0 million, comprised of approximately $69.4 million in property acquisition costs (subject to adjustment for an acquisition effective date of October 1, 2012), stock repurchase price of approximately $9.8 million and an additional $1.0 million for litigation settlement occurred on June 7, 2013. On March 31, 2013, following notification to the Court regarding the execution of the settlement agreement, the Court in the Chesapeake lawsuit entered an order of dismissal, without prejudice to the right of counsel of record to move for reinstatement of the case within 90 days in the event the settlement is not consummated. | |
The acquisition transaction closed on June 7, 2013, and the payments described above were made as provided in the Settlement Agreement and the agreement for acquisition of properties from Chesapeake. Thereafter, the parties to the Chesapeake lawsuit filed a stipulation of dismissal of prejudice, and on June 11, 2013, the court entered an order dismissing the case with prejudice. | |
Gastar Exploration USA, Inc., et al v. Williams Ohio Valley Midstream LLC (American Arbitration Association Matter No. 70-198-Y-00461-13). On July 16, 2013, Gastar USA and two similarly situated co-claimants initiated an arbitration proceeding against Williams Ohio Valley Midstream LLC (“Williams OVM”). The claimants allege that Williams OVM has breached various agreements relating to the gathering, processing and marketing of natural gas, NGLs and condensate produced from properties that are owned in part by Gastar USA in the Marcellus Shale in Marshall and Wetzel Counties, West Virginia, and request that an Arbitration Panel assess an unspecified amount of damages against Williams OVM for, among other claims, failure to timely construct certain gathering and processing facilities, maximize the net value of produced condensation, and fractionate and purchase NGLs as provided in the agreements. On August 7, 2013, Williams OVM filed an answering statement and counterclaim for damages in excess of $612,000 in the arbitration matter. The arbitration has been scheduled for a final hearing in October 2014. Gastar USA intends to vigorously pursue its rights in the arbitration matter against Williams OVM. | |
Gastar Exploration Ltd vs. U.S. Specialty Ins. Co. and Axis Ins. Co. (Cause No.2010-11236) District Court of Harris County, Texas 190th Judicial District. On February 19, 2010, the Company filed a lawsuit claiming that the Company was due reimbursement of qualifying claims related to the settlement and associated legal defense costs under the Company's directors and officers liability insurance policies related to the ClassicStar Mare Lease Litigation settled on December 17, 2010 for $21.2 million. The combined coverage limits under the directors and officers liability coverage is $20.0 million. The District Court granted the underwriters' summary judgment request by a ruling dated January 4, 2012. The Company appealed the District Court ruling and on July 15, 2013, the Fourteenth Court of Appeals of Texas reversed the summary judgment ruling granted against the Company on the basis of the policies' prior-and-pending litigation endorsement and remanded the case for further proceedings in the District Court. The District Court proceedings will include, but not be limited to, a determination of whether the Company's claims are securities claims covered by the insuring agreements. The insurers have filed a motion for reconsideration in the Court of Appeals. The insurers may seek discretionary review from the Texas Supreme Court if they do not succeed with their motion for rehearing. | |
The Company has been expensing legal costs on these proceedings as they are incurred. | |
The Company is party to various legal proceedings arising in the normal course of business. The ultimate outcome of each of these matters cannot be absolutely determined, and the liability the Company may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued for with respect to such matters. Net of available insurance and performance of contractual defense and indemnity obligations, where applicable, management does not believe any such matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Statement_Of_Cash_Flows_Supple
Statement Of Cash Flows - Supplemental Information | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Statement Of Cash Flows - Supplemental Information | ' | |||||||
Statement of Cash Flows – Supplemental Information | ||||||||
The following is a summary of the supplemental cash paid and non-cash transactions for the periods indicated: | ||||||||
For the Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash paid for interest | $ | 1,920 | $ | 1,280 | ||||
Non-cash transactions: | ||||||||
Capital expenditures excluded from accounts payable and accrued drilling costs | (8,335 | ) | 724 | |||||
Capital expenditures excluded from prepaid expenses | — | 99 | ||||||
Asset retirement obligation included in natural gas and oil properties | 1,795 | 229 | ||||||
Asset retirement obligation assigned to operator | (362 | ) | (2,099 | ) | ||||
Application of advances to operators | 14,443 | 5,848 | ||||||
Other | 61 | — | ||||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy | ' |
The unaudited interim condensed consolidated financial statements of the Company and Gastar USA included herein are stated in U.S. dollars and were prepared from the records of the Company and Gastar USA by management in accordance with U.S. GAAP applicable to interim financial statements and reflect all normal and recurring adjustments, which are, in the opinion of management, necessary to provide a fair presentation of the results of operations and financial position for the interim periods. Such financial statements conform to the presentation reflected in the 2012 Form 10-K. The current interim period reported herein should be read in conjunction with the financial statements and accompanying notes, including Item 8. “Financial Statements and Supplementary Data, Note 2 – Summary of Significant Accounting Policies,” included in the 2012 Form 10-K. |
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||
Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization | ' | |||||||||||||||
The following table summarizes the components of unproved properties excluded from amortization for the periods indicated: | ||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||
(in thousands) | ||||||||||||||||
Unproved properties, excluded from amortization: | ||||||||||||||||
Drilling in progress costs | $ | 8,821 | $ | 1,902 | ||||||||||||
Acreage acquisition costs | 88,033 | 62,395 | ||||||||||||||
Capitalized interest | 5,484 | 3,595 | ||||||||||||||
Total unproved properties excluded from amortization | $ | 102,338 | $ | 67,892 | ||||||||||||
Schedule Of Relevant Assumptions Used In Ceiling Test Computations | ' | |||||||||||||||
The table below sets forth relevant pricing assumptions utilized in the quarterly ceiling test computations for the respective periods noted before adjustment for basis and quality differentials: | ||||||||||||||||
2013 | ||||||||||||||||
Total Impairment | 30-Sep | 30-Jun | 31-Mar | |||||||||||||
Henry Hub natural gas price (per MMBtu) | $ | 3.61 | $ | 3.44 | $ | 2.95 | ||||||||||
West Texas Intermediate oil price (per Bbl) | $ | 91.69 | $ | 88.13 | $ | 89.17 | ||||||||||
Impairment recorded (pre-tax) (in thousands) | $ | — | $ | — | $ | — | $ | — | ||||||||
2012 | ||||||||||||||||
Total Impairment | 30-Sep | 30-Jun | 31-Mar | |||||||||||||
Henry Hub natural gas price (per MMBtu) | $ | 2.83 | $ | 3.15 | $ | 3.73 | ||||||||||
West Texas Intermediate oil price (per Bbl) | $ | 91.48 | $ | 92.17 | $ | 94.65 | ||||||||||
Impairment recorded (pre-tax) (in thousands) | $ | 150,787 | $ | 78,054 | $ | 72,733 | $ | — | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | |||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 and December 31, 2012: | ||||||||||||||||
Fair value as of September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 21,375 | $ | — | $ | — | $ | 21,375 | ||||||||
Commodity derivative contracts | — | — | 9,658 | 9,658 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | — | — | (794 | ) | (794 | ) | ||||||||||
Total | $ | 21,375 | $ | — | $ | 8,864 | $ | 30,239 | ||||||||
Fair value as of December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 8,901 | $ | — | $ | — | $ | 8,901 | ||||||||
Commodity derivative contracts | — | — | 9,168 | 9,168 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | — | — | (2,703 | ) | (2,703 | ) | ||||||||||
Total | $ | 8,901 | $ | — | $ | 6,465 | $ | 15,366 | ||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation | ' | |||||||||||||||
The table below presents a reconciliation of the assets and liabilities classified as Level 3 in the fair value hierarchy for the three and nine months ended September 30, 2013 and 2012. Level 3 instruments presented in the table consist of net derivatives that, in management’s opinion, reflect the assumptions a marketplace participant would have used at September 30, 2013 and 2012. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 4,335 | $ | 15,460 | $ | 6,465 | $ | 15,873 | ||||||||
Total gains (losses) (realized or unrealized): | ||||||||||||||||
included in earnings | (5,263 | ) | (2,045 | ) | (2,229 | ) | 4,594 | |||||||||
Purchases | 9,470 | — | 9,470 | — | ||||||||||||
Issuances | — | — | — | — | ||||||||||||
Settlements (1) | 322 | (4,314 | ) | (4,842 | ) | (11,366 | ) | |||||||||
Transfers in and (out) of Level 3 | — | — | — | — | ||||||||||||
Balance at end of period | $ | 8,864 | $ | 9,101 | $ | 8,864 | $ | 9,101 | ||||||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or (losses) relating to assets still held at September 30, 2013 and 2012 | $ | (5,004 | ) | $ | (5,403 | ) | $ | (7,156 | ) | $ | (4,123 | ) | ||||
_________________________________ | ||||||||||||||||
-1 | Included in total revenues on the statement of operations. |
Derivative_Instruments_And_Hed1
Derivative Instruments And Hedging Activity (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||||||||||||
The following table provides information regarding the deferred put premium liabilities for the periods indicated: | |||||||||||||||||||||||||||||
September 30, 2013 | 31-Dec-12 | ||||||||||||||||||||||||||||
Current commodity derivative premium put payable | $ | 1,819 | $ | — | |||||||||||||||||||||||||
Long-term commodity derivative premium payable | 7,651 | — | |||||||||||||||||||||||||||
Total unamortized put premium liabilities | $ | 9,470 | $ | — | |||||||||||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||||||||||||
The tables below provide information on the location and amounts of derivative fair values in the condensed consolidated statement of financial position and derivative gains and losses in the condensed consolidated statement of operations for derivative instruments that are not designated as hedging instruments: | |||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||
Derivative Assets (Liabilities) | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
Balance Sheet Location | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Current assets | $ | 2,259 | $ | 7,799 | ||||||||||||||||||||||||
Commodity derivative contracts | Other assets | 7,399 | 1,369 | ||||||||||||||||||||||||||
Commodity derivative contracts | Current liabilities | (794 | ) | (1,399 | ) | ||||||||||||||||||||||||
Commodity derivative contracts | Long-term liabilities | — | (1,304 | ) | |||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 8,864 | $ | 6,465 | |||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | |||||||||||||||||||||||||||||
Recognized in Income on | |||||||||||||||||||||||||||||
Derivatives For the Three | |||||||||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivatives | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Natural gas, condensate, oil and NGLs revenues | $ | (259 | ) | $ | 3,404 | |||||||||||||||||||||||
Commodity derivative contracts | Unrealized hedge loss | (5,004 | ) | (5,403 | ) | ||||||||||||||||||||||||
Commodity derivative contracts | Interest expense | — | (46 | ) | |||||||||||||||||||||||||
Total | $ | (5,263 | ) | $ | (2,045 | ) | |||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | |||||||||||||||||||||||||||||
Recognized in Income on | |||||||||||||||||||||||||||||
Derivatives For the Nine | |||||||||||||||||||||||||||||
Months Ended | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivatives | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Natural gas, condensate, oil and NGLs revenues | $ | 4,927 | $ | 8,847 | ||||||||||||||||||||||||
Commodity derivative contracts | Unrealized hedge loss | (7,156 | ) | (4,123 | ) | ||||||||||||||||||||||||
Commodity derivative contracts | Interest expense | — | (130 | ) | |||||||||||||||||||||||||
Total | $ | (2,229 | ) | $ | 4,594 | ||||||||||||||||||||||||
Natural Gas | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||||||||||||||||||
As of September 30, 2013, the following natural gas derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | Floor | Short | Call | Ceiling | |||||||||||||||||||||
Daily | Notional | Fixed | (Long) | Put | (Long) | (Short) | |||||||||||||||||||||||
Volume | Volume | Price | |||||||||||||||||||||||||||
(in MMBtus) | |||||||||||||||||||||||||||||
2013 | Fixed price swap | 5,000 | 460,000 | $ | 3.65 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
2013 | Fixed price swap | 1,500 | 138,000 | $ | 3.85 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
2013 | Fixed price swap | 1,500 | 138,000 | 4 | — | — | — | — | |||||||||||||||||||||
2013 | Fixed price swap | 3,000 | 276,000 | 4.06 | — | — | — | — | |||||||||||||||||||||
2013 | Fixed price swap | 2,500 | 230,000 | 4.05 | — | — | — | — | |||||||||||||||||||||
2013 | Fixed price swap | 12,663 | 1,165,000 | 3.87 | — | — | — | — | |||||||||||||||||||||
2013 (1) | Fixed price swap | 2,500 | 77,500 | 4.05 | — | — | — | — | |||||||||||||||||||||
2013 (2) | Protective spread | 2,500 | 152,500 | 4.05 | — | 3.79 | — | — | |||||||||||||||||||||
2013 (1) | Costless collar | 2,500 | 77,500 | — | 5 | — | — | 6.45 | |||||||||||||||||||||
2013 (2) | Short calls | 2,500 | 152,500 | — | — | — | — | 6.45 | |||||||||||||||||||||
2013 | Call spread | 2,500 | 230,000 | — | — | — | 4.75 | 5.25 | |||||||||||||||||||||
2013 | Basis - HSC (4) | 4,000 | 368,000 | (0.11 | ) | — | — | — | — | ||||||||||||||||||||
2014 | Short calls | 2,500 | 912,500 | — | — | — | — | 4.59 | |||||||||||||||||||||
2014 | Costless three-way collar | 10,500 | 3,832,500 | — | 3.88 | 3 | — | 4.53 | |||||||||||||||||||||
2014 | Fixed price swap | 11,136 | 4,064,500 | 4.06 | — | — | — | — | |||||||||||||||||||||
2015 | Fixed price swap | 3,000 | 1,095,000 | 4 | — | — | — | — | |||||||||||||||||||||
2015 | Fixed price swap | 2,500 | 912,500 | 4.06 | — | — | — | — | |||||||||||||||||||||
2016 | Fixed price swap | 2,000 | 732,000 | 4.11 | — | — | — | — | |||||||||||||||||||||
_______________________________ | |||||||||||||||||||||||||||||
-1 | For the period July to October 2013. | ||||||||||||||||||||||||||||
-2 | For the period November to December 2013. | ||||||||||||||||||||||||||||
-3 | East Houston-Katy - Houston Ship Channel | ||||||||||||||||||||||||||||
Crude Oil | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||||||||||||||||||
As of September 30, 2013, the following crude derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | Floor | Short | Ceiling | ||||||||||||||||||||||
Daily | Notional | Fixed | (Long) | Put | (Short) | ||||||||||||||||||||||||
Volume (1) | Volume | Price | |||||||||||||||||||||||||||
(in Bbls) | |||||||||||||||||||||||||||||
2013 | Fixed price swap | 250 | 23,000 | $ | 103.95 | $ | — | $ | — | $ | — | ||||||||||||||||||
2013 | Fixed price swap | 850 | 78,200 | 99.77 | — | — | — | ||||||||||||||||||||||
2013 | Fixed price swap | 400 | 36,800 | 94.86 | — | — | — | ||||||||||||||||||||||
2013 | Fixed price swap | 611 | 56,200 | 92.8 | — | — | — | ||||||||||||||||||||||
2013 (2) | Put | 1,000 | 31,000 | — | 103 | — | — | ||||||||||||||||||||||
2014 (3) | Fixed price swap | 300 | 54,300 | 98.05 | — | — | — | ||||||||||||||||||||||
2014 (3) | Fixed price swap | 550 | 99,550 | 95.15 | — | — | — | ||||||||||||||||||||||
2014 (3) | Put | 900 | 162,900 | — | 98 | — | — | ||||||||||||||||||||||
2014 (4) | Fixed price swap | 200 | 36,800 | 93 | — | — | — | ||||||||||||||||||||||
2014 (4) | Fixed price swap | 350 | 64,400 | 91.55 | — | — | — | ||||||||||||||||||||||
2014 (4) | Put | 750 | 138,000 | — | 93 | — | — | ||||||||||||||||||||||
2014 | Costless collar | 200 | 73,000 | — | 98 | — | 98 | ||||||||||||||||||||||
2014 | Fixed price swap | 500 | 182,500 | 91.1 | — | — | — | ||||||||||||||||||||||
2014 | Fixed price swap | 270 | 98,500 | 90.77 | — | — | — | ||||||||||||||||||||||
2014 (5) | Put spread | 200 | 24,400 | — | 93 | 73 | — | ||||||||||||||||||||||
2015 | Producer three-way collar | 345 | 126,100 | — | 85 | 65 | 97.8 | ||||||||||||||||||||||
2015 | Producer three-way collar | 400 | 146,000 | — | 85 | 70 | 96.5 | ||||||||||||||||||||||
2015 | Put spread | 250 | 91,250 | — | 89 | 69 | — | ||||||||||||||||||||||
2015 (6) | Producer three-way collar | 150 | 27,150 | — | 85 | 65 | 96.25 | ||||||||||||||||||||||
2015 (6) | Put spread | 700 | 126,700 | — | 90 | 70 | — | ||||||||||||||||||||||
2015 (7) | Producer three-way collar | 50 | 9,200 | — | 85 | 65 | 96.25 | ||||||||||||||||||||||
2015 (7) | Put spread | 600 | 110,400 | — | 87 | 67 | — | ||||||||||||||||||||||
2016 | Producer three-way collar | 275 | 100,600 | — | 85 | 65 | 95.1 | ||||||||||||||||||||||
2016 | Producer three-way collar | 330 | 120,780 | — | 80 | 65 | 97.35 | ||||||||||||||||||||||
2016 | Put spread | 550 | 201,300 | — | 85 | 65 | — | ||||||||||||||||||||||
2016 | Put spread | 300 | 109,800 | — | 85.5 | 65.5 | — | ||||||||||||||||||||||
2017 | Producer three-way collar | 242 | 88,150 | — | 80 | 60 | 98.7 | ||||||||||||||||||||||
2017 | Producer three-way collar | 280 | 102,200 | — | 80 | 65 | 97.25 | ||||||||||||||||||||||
2017 | Put spread | 500 | 182,500 | — | 82 | 62 | — | ||||||||||||||||||||||
2018 | Put spread | 425 | 103,275 | — | 80 | 60 | — | ||||||||||||||||||||||
_______________________________ | |||||||||||||||||||||||||||||
-1 | Crude volumes hedged include oil, condensate and certain components of our NGLs production. | ||||||||||||||||||||||||||||
-2 | For the period December 2013. | ||||||||||||||||||||||||||||
-3 | For the period January to June 2014. | ||||||||||||||||||||||||||||
-4 | For the period July to December 2014. | ||||||||||||||||||||||||||||
-5 | For the period September to December 2014. | ||||||||||||||||||||||||||||
-6 | For the period January to June 2015. | ||||||||||||||||||||||||||||
-7 | For the period July to December 2015. | ||||||||||||||||||||||||||||
Natural Gas Liquids | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||||||||||||||||||
As of September 30, 2013, the following NGLs derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | |||||||||||||||||||||||||
Daily | Notional | Fixed | |||||||||||||||||||||||||||
Volume | Volume | Price | |||||||||||||||||||||||||||
(in Bbls) | |||||||||||||||||||||||||||||
2013 | Fixed price swap | 150 | 13,800 | $ | 41.06 | ||||||||||||||||||||||||
2013 | Fixed price swap | 350 | 32,200 | 39.38 | |||||||||||||||||||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Stockholders' Equity Note [Abstract] | ' | |||||
Schedule of Issuances And Forfeitures Of Common Shares | ' | |||||
The following table provides information regarding the issuances and forfeitures of Parent’s common shares pursuant to Parent’s 2006 Long-Term Stock Incentive Plan (the “2006 Plan”) for the periods indicated: | ||||||
For the Three Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2013 | |||||
Other share issuances: | ||||||
Restricted common shares granted | 41,212 | 2,219,115 | ||||
Restricted common shares vested | 123,250 | 753,779 | ||||
Common shares surrendered upon vesting (1) | 32,751 | 222,144 | ||||
Common shares forfeited | 466,535 | 512,862 | ||||
__________________ | ||||||
-1 | Represents common shares forfeited in connection with the payment of estimated withholding taxes on restricted common shares that vested during the period. | |||||
Schedule of Auction Market Preferred Securities by Stock Series | ' | |||||
Following a change in control, Gastar USA will have the option to redeem the Series A Preferred Stock, in whole but not in part, within 90 days after the date on which the change in control occurs, for cash at the following prices per share, plus accrued and unpaid dividends (whether or not declared), up to the redemption date: | ||||||
Redemption Date | Redemption | |||||
Price | ||||||
On or after June 23, 2013 and prior to June 23, 2014 | $ | 25.25 | ||||
On or after June 23, 2014 | $ | 25 | ||||
Equity_Compensation_PBUs_Table
Equity Compensation - PBUs (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||
The table below provides a summary of PBUs as of the date indicated: | ||||||||
PBUs | Fair Value per Unit | |||||||
Unvested PBUs at December 31, 2012 | — | $ | — | |||||
Granted | 1,192,889 | 1.56 | ||||||
Vested | — | — | ||||||
Forfeited | (127,155 | ) | — | |||||
Unvested PBUs at September 30, 2013 | 1,065,734 | $ | 1.56 | |||||
Interest_Expense_Tables
Interest Expense (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Interest Expense [Abstract] | ' | |||||||||||||||
Schedule Of Components Of Interest Expense | ' | |||||||||||||||
The following table summarizes the components of interest expense for the periods indicated: | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands) | ||||||||||||||||
Interest expense: | ||||||||||||||||
Cash and accrued | $ | 4,376 | $ | 549 | $ | 8,238 | $ | 1,272 | ||||||||
Amortization of deferred financing costs (1)(2) | 340 | 60 | 1,790 | 157 | ||||||||||||
Capitalized interest | (1,277 | ) | (579 | ) | (2,435 | ) | (1,343 | ) | ||||||||
Total interest expense | $ | 3,439 | $ | 30 | $ | 7,593 | $ | 86 | ||||||||
__________________ | ||||||||||||||||
-1 | The nine months ended September 30, 2013 includes $1.2 million of deferred financing costs written off as a result of the new Revolving Credit Facility. See Note 4, “Long-Term Debt - Second Amended and Restated Revolving Credit Facility.” | |||||||||||||||
-2 | The three and nine months ended September 30, 2013 includes $221,000 and $330,000, respectively, of debt discount accretion related to the Notes. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(in thousands, except per share and share data) | ||||||||||||||||
Net income (loss) attributable to Gastar Exploration Ltd. | $ | (3,942 | ) | $ | (83,457 | ) | $ | 43,308 | $ | (163,802 | ) | |||||
Weighted average common shares outstanding - basic | 57,359,357 | 63,601,645 | 61,159,117 | 63,494,224 | ||||||||||||
Incremental shares from unvested restricted shares | — | — | 2,565,888 | — | ||||||||||||
Incremental shares from outstanding PBUs | — | — | 246,033 | — | ||||||||||||
Weighted average common shares outstanding - diluted | 57,359,357 | 63,601,645 | 63,971,038 | 63,494,224 | ||||||||||||
Net income (loss) per common share attributable to Gastar Exploration Ltd. Common Shareholders: | ||||||||||||||||
Basic | $ | (0.07 | ) | $ | (1.31 | ) | $ | 0.71 | $ | (2.58 | ) | |||||
Diluted | $ | (0.07 | ) | $ | (1.31 | ) | $ | 0.68 | $ | (2.58 | ) | |||||
Common shares excluded from denominator as anti-dilutive: | ||||||||||||||||
Unvested restricted shares | — | 1,878,355 | 41,212 | 1,654,439 | ||||||||||||
Stock options | 756,200 | 979,725 | 919,100 | 926,271 | ||||||||||||
Total | 756,200 | 2,858,080 | 960,312 | 2,580,710 | ||||||||||||
Statement_Of_Cash_Flows_Supple1
Statement Of Cash Flows - Supplemental Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Statement Of Cash Flows Supplemental Information | ' | |||||||
The following is a summary of the supplemental cash paid and non-cash transactions for the periods indicated: | ||||||||
For the Nine Months Ended September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash paid for interest | $ | 1,920 | $ | 1,280 | ||||
Non-cash transactions: | ||||||||
Capital expenditures excluded from accounts payable and accrued drilling costs | (8,335 | ) | 724 | |||||
Capital expenditures excluded from prepaid expenses | — | 99 | ||||||
Asset retirement obligation included in natural gas and oil properties | 1,795 | 229 | ||||||
Asset retirement obligation assigned to operator | (362 | ) | (2,099 | ) | ||||
Application of advances to operators | 14,443 | 5,848 | ||||||
Other | 61 | — | ||||||
Property_Plant_And_Equipment_N
Property, Plant And Equipment (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 04, 2013 | Jun. 07, 2013 | Mar. 28, 2013 | Jul. 04, 2013 | Sep. 04, 2013 | Apr. 19, 2013 | Jun. 29, 2013 | Jul. 02, 2013 | Sep. 30, 2010 | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Jul. 11, 2013 | Jun. 07, 2013 | |
Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | |||||
Hunton Divestiture | Chesapeake Assets | Chesapeake Assets | Oklahoma Oil and Gas Leasehold Interests | WEHLU Purchase Agreement | East Texas | Hunton Joint Venture | Hunton Joint Venture | Atinum Joint Venture | Atinum Joint Venture | Atinum Joint Venture | Atinum Joint Venture | Atinum Joint Venture | Atinum Joint Venture | Other assets | General and administrative expenses | |||||
acre | acre | acre | acre | acre | acre | well | well | well | well | Maximum | WEHLU Purchase Agreement | Chesapeake Assets | ||||||||
well | well | |||||||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount reclassifed from unproved to proved properties | $98,000 | ' | $8,000,000 | $19,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net acres (acres) | ' | ' | ' | ' | 76,000 | ' | 157,000 | 2,260 | 24,000 | 16,300 | ' | 12,800 | ' | ' | ' | ' | ' | ' | ' | ' |
Productive conventional wells (wells) | ' | ' | ' | ' | ' | ' | 206 | ' | ' | ' | ' | ' | 16 | ' | ' | ' | ' | ' | ' | ' |
Adjusted purchase price | ' | ' | ' | ' | ' | 69,400,000 | ' | ' | 187,500,000 | ' | ' | ' | 70,000,000 | ' | ' | ' | ' | ' | ' | ' |
Transaction and integration costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 |
Fair market valuation | ' | ' | ' | ' | ' | 113,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain | 0 | 0 | 43,712,000 | 0 | ' | 43,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire oil and gas property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration | ' | ' | ' | ' | 54,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working interest in wells (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | 98.30% | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Net revenue interest in wells | ' | ' | ' | ' | ' | ' | ' | ' | 80.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposit previously paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,400,000 | ' |
Gross acres (acres) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of natural gas and oil properties | ' | ' | 70,708,000 | 0 | ' | ' | ' | ' | ' | 43,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Security deposit received | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial interest in Marcellus Shale Assets (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21.43% | ' | ' | ' | ' | ' | ' | ' |
Non productive number of wells (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Atinum ownership interest in Atinum Joint Venture Assets (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Joint interest share of drilling completion and infrastructure costs (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Percentage of reimbursements for lease bonuses and third party lease costs up to 20 million (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' |
Percentage of lease operating expenses covered (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' |
Term of development program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Minimum wells to be drilled (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' |
Required exploratroy wells drilled net productive to be drilled in current fiscal year (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | ' | ' |
Total wells to be drilled (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' | ' |
Gross operated wells on production (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38 | ' | ' | ' | ' |
Total reduction in 2013 minimum wells to be drilled (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | ' | ' | ' | ' | ' | ' |
Total revised gross wells on production in 2013 (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57 | ' | ' |
Property_Plant_And_Equipment_S
Property, Plant And Equipment (Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Unproved properties, excluded from amortization: | ' | ' |
Drilling in progress costs | $8,821 | $1,902 |
Acreage acquisition costs | 88,033 | 62,395 |
Capitalized interest | 5,484 | 3,595 |
Total unproved properties excluded from amortization | $102,338 | $67,892 |
Property_Plant_And_Equipment_A
Property, Plant And Equipment (Average Sales Price and Production Costs Per Unit of Production) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment recorded (pre-tax) (in thousands) | $0 | $0 | $0 | $78,054 | $72,733 | $0 | $0 | $150,787 |
Henry Hub natural gas price (per MMBtu) | ' | ' | ' | ' | ' | ' | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Average price per Mcfe | 3.61 | 3.44 | 2.95 | 2.83 | 3.15 | 3.73 | ' | ' |
West Texas Intermediate oil price (per Bbl) | ' | ' | ' | ' | ' | ' | ' | ' |
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Average price per Mcfe | 91.69 | 88.13 | 89.17 | 91.48 | 92.17 | 94.65 | ' | ' |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Oct. 18, 2013 | Oct. 17, 2013 | 15-May-13 | Sep. 30, 2013 | Oct. 18, 2013 | Oct. 17, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 07, 2013 | Jun. 05, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 07, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 28, 2009 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Subsequent Event | Subsequent Event | Senior Secured Notes Due 2018 | Senior Secured Notes Due 2018 | Senior Secured Notes Due 2018 | Senior Secured Notes Due 2018 | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | |||
Senior Secured Notes | Senior Secured Notes | Senior Secured Notes | Senior Secured Notes | Federal Funds Rate | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | |||||
Subsequent Event | Subsequent Event | Minimum | Maximum | Maximum | Federal Funds Rate | Prime Rate | Prime Rate | Eurodollar Rate | Eurodollar Rate | Minimum | Minimum | Maximum | Prime Rate | Prime Rate | Prime Rate | LIBO Rate | LIBO Rate | LIBO Rate | |||||||||||||
Quarter ending September 30, 2013 | Each quarter thereafter | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $160,000,000 | $47,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate description | ' | ' | ' | ' | ' | ' | ' | ' | 'federal funds rate plus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'prime rate | ' | ' | 'LIBO | ' | ' |
Applicable interest margin (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500.00% | 1.00% | 2.00% | 2.00% | 3.00% | ' | ' | ' | ' | ' | ' | 1.00% | 2.00% | ' | 2.50% | 3.50% |
Annual commitment fee (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock foreign subsidiary pledged as collateral for credit facility (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility covenant compliance Current Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0.6 | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility covenant compliance indebtedness to EBITDA Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.25 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' |
Line of credit facility covenant compliance EBITDA to Interest Expense Ratio on a four quarter rolling basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in adjusted consolidated net tangibles assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of proved developed producing reserves hedged allowed under credit facility agreement (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | 200,000,000 | ' | 325,000,000 | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Aggregate Amount of Cash Dividends Permitted to be Paid | ' | ' | 20,000,000 | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | 8.63% | 8.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of aggregate principal amount | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 194,830,000 | 98,000,000 | ' | ' | ' | 194,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original issue discounts | ' | ' | ' | ' | ' | $5,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Amount reclassifed from unproved to proved properties | $98,000 | $8,000,000 | $19,100,000 |
Level 1 | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Fair value of long-term debt | $199,300,000 | $199,300,000 | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurements, Recurring and Nonrecurring) (Details) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Assets [Abstract] | ' | ' |
Assets, Commodity derivative contracts | $9,658 | $9,168 |
Liabilities: | ' | ' |
Liabilities, Commodity derivative contracts | -794 | -2,703 |
Total | 30,239 | 15,366 |
Level 1 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Assets, Commodity derivative contracts | 0 | 0 |
Liabilities: | ' | ' |
Liabilities, Commodity derivative contracts | 0 | 0 |
Total | 21,375 | 8,901 |
Level 2 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Assets, Commodity derivative contracts | 0 | 0 |
Liabilities: | ' | ' |
Liabilities, Commodity derivative contracts | 0 | 0 |
Total | 0 | 0 |
Level 3 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Assets, Commodity derivative contracts | 9,658 | 9,168 |
Liabilities: | ' | ' |
Liabilities, Commodity derivative contracts | -794 | -2,703 |
Total | 8,864 | 6,465 |
Cash and Cash Equivalents | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Cash and cash equivalents | 21,375 | 8,901 |
Cash and Cash Equivalents | Level 1 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Cash and cash equivalents | 21,375 | 8,901 |
Cash and Cash Equivalents | Level 2 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents | Level 3 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Cash and cash equivalents | $0 | $0 |
Fair_Value_Measurements_Net_Ch
Fair Value Measurements (Net Change in the Assets and Liabilities Measured at Fair Value on a Recurring Basis and Included in the Level 3 Fair Value Category) (Details) (Level 3, Commodity, Fair Value, Measurements, Recurring, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ||||
Balance at beginning of period | $4,335 | $15,460 | $6,465 | $15,873 | ||||
Total gains (losses) (realized or unrealized): | ' | ' | ' | ' | ||||
included in earnings | -5,263 | -2,045 | -2,229 | 4,594 | ||||
Purchases | 9,470 | 0 | 9,470 | 0 | ||||
Issuances | 0 | 0 | 0 | 0 | ||||
Settlements | 322 | [1] | -4,314 | [1] | -4,842 | [1] | -11,366 | [1] |
Transfers in and (out) of Level 3 | 0 | 0 | 0 | 0 | ||||
Balance at end of period | 8,864 | 9,101 | 8,864 | 9,101 | ||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or (losses) relating to assets still held at September 30, 2013 and 2012 | ' | ' | -7,156 | -4,123 | ||||
Unrealized hedge gain (loss) | ' | ' | ' | ' | ||||
Total gains (losses) (realized or unrealized): | ' | ' | ' | ' | ||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or (losses) relating to assets still held at September 30, 2013 and 2012 | ($5,004) | ($5,403) | ' | ' | ||||
[1] | Included in total revenues on the statement of operations. |
Derivative_Instruments_And_Hed2
Derivative Instruments And Hedging Activity (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' |
Unrealized hedge loss | ($5,004) | ($5,403) | ($7,156) | ($4,123) |
Derivative_Instruments_And_Hed3
Derivative Instruments And Hedging Activity (Schedule of Notional Amounts and Wieghted Average Underlying Hedge Prices of Outstanding Derivative Positions) (Details) | 9 Months Ended | |
Sep. 30, 2013 | ||
MMBTU | ||
Natural Gas | 2013 | Protective Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | [1] |
Total of Notional Volume (MMBtu's or Bbls) | 152,500 | [1] |
Base Fixed Price (Price per MMbtu or Bbl) | 4.05 | [1] |
Short Put (Price per MMBtu) | 3.79 | [1] |
Natural Gas | 2013 | Costless collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | [2] |
Total of Notional Volume (MMBtu's or Bbls) | 77,500 | [2] |
Floor (Long) (Price per MMBtu) | 5 | [2] |
Ceiling (Short) (Price per MMBtu) | 6.45 | [2] |
Natural Gas | 2013 | Call spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 230,000 | |
Call (Long) (Price per MMBtu) | 4.75 | |
Ceiling (Short) (Price per MMBtu) | 5.25 | |
Natural Gas | 2013 | Basis HSC | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 4,000 | [3] |
Total of Notional Volume (MMBtu's or Bbls) | 368,000 | [3] |
Base Fixed Price (Price per MMbtu or Bbl) | -0.11 | [3] |
Natural Gas | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 11,136 | |
Total of Notional Volume (MMBtu's or Bbls) | 4,064,500 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.06 | |
Natural Gas | 2014 | Short calls | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 912,500 | |
Ceiling (Short) (Price per MMBtu) | 4.59 | |
Crude Oil | 2014 | Costless collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 200 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 73,000 | |
Floor (Long) (Price per MMBtu) | 98 | |
Ceiling (Short) (Price per MMBtu) | 98 | |
Fixed Price Swap 1 | Natural Gas | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 5,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 460,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 3.65 | |
Fixed Price Swap 1 | Crude Oil | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 250 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 23,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 103.95 | |
Fixed Price Swap 1 | Natural Gas Liquids | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 150 | |
Total of Notional Volume (MMBtu's or Bbls) | 13,800 | |
Base Fixed Price (Price per MMbtu or Bbl) | 41.06 | |
Fixed Price Swap 2 | Natural Gas | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 1,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 138,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 3.85 | |
Fixed Price Swap 2 | Crude Oil | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 850 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 78,200 | |
Base Fixed Price (Price per MMbtu or Bbl) | 99.77 | |
Fixed Price Swap 2 | Natural Gas Liquids | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 350 | |
Total of Notional Volume (MMBtu's or Bbls) | 32,200 | |
Base Fixed Price (Price per MMbtu or Bbl) | 39.38 | |
Fixed Price Swap 3 | Natural Gas | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 1,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 138,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4 | |
Fixed Price Swap 3 | Crude Oil | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 400 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 36,800 | |
Base Fixed Price (Price per MMbtu or Bbl) | 94.86 | |
Fixed Price Swap 4 | Natural Gas | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 3,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 276,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.06 | |
Fixed Price Swap 4 | Crude Oil | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 611 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 56,200 | |
Base Fixed Price (Price per MMbtu or Bbl) | 92.8 | |
Put 1 | Crude Oil | 2013 | Put | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 1,000 | [4],[5] |
Total of Notional Volume (MMBtu's or Bbls) | 31,000 | [5] |
Floor (Long) (Price per MMBtu) | 103 | [5] |
Put 2 | Crude Oil | 2014 | Put | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 900 | [4],[6] |
Total of Notional Volume (MMBtu's or Bbls) | 162,900 | [6] |
Floor (Long) (Price per MMBtu) | 98 | |
Put 3 | Crude Oil | 2014 | Put | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 750 | [4],[7] |
Total of Notional Volume (MMBtu's or Bbls) | 138,000 | [7] |
Floor (Long) (Price per MMBtu) | 93 | [7] |
Fixed Price Swap 5 | Natural Gas | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 230,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.05 | |
Fixed Price Swap 5 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 300 | [4],[6] |
Total of Notional Volume (MMBtu's or Bbls) | 54,300 | [6] |
Base Fixed Price (Price per MMbtu or Bbl) | 98.05 | [6] |
Fixed Price Swap 6 | Natural Gas | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 12,663 | |
Total of Notional Volume (MMBtu's or Bbls) | 1,165,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 3.87 | |
Fixed Price Swap 6 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 550 | [4],[6] |
Total of Notional Volume (MMBtu's or Bbls) | 99,550 | [6] |
Base Fixed Price (Price per MMbtu or Bbl) | 95.15 | [6] |
Fixed Price Swap 7 | Natural Gas | 2013 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | [2] |
Total of Notional Volume (MMBtu's or Bbls) | 77,500 | [2] |
Base Fixed Price (Price per MMbtu or Bbl) | 4.05 | [2] |
Short Put (Price per MMBtu) | 0 | [2] |
Fixed Price Swap 7 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 200 | [4],[7] |
Total of Notional Volume (MMBtu's or Bbls) | 36,800 | [7] |
Base Fixed Price (Price per MMbtu or Bbl) | 93 | [7] |
Producer Three Way Collar 2 | Crude Oil | 2015 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 345 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 126,100 | |
Floor (Long) (Price per MMBtu) | 85 | |
Short Put (Price per MMBtu) | 65 | |
Ceiling (Short) (Price per MMBtu) | 97.8 | |
Producer Three Way Collar 3 | Crude Oil | 2015 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 400 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 146,000 | |
Floor (Long) (Price per MMBtu) | 85 | |
Short Put (Price per MMBtu) | 70 | |
Ceiling (Short) (Price per MMBtu) | 96.5 | |
Producer Three Way Collar 4 | Crude Oil | 2015 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 150 | [4],[8] |
Total of Notional Volume (MMBtu's or Bbls) | 27,150 | [8] |
Floor (Long) (Price per MMBtu) | 85 | [8] |
Short Put (Price per MMBtu) | 65 | [8] |
Ceiling (Short) (Price per MMBtu) | 96.25 | [8] |
Producer Three Way Collar 5 | Crude Oil | 2015 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 50 | [4],[9] |
Total of Notional Volume (MMBtu's or Bbls) | 9,200 | [9] |
Floor (Long) (Price per MMBtu) | 85 | [9] |
Short Put (Price per MMBtu) | 65 | [9] |
Ceiling (Short) (Price per MMBtu) | 96.25 | [9] |
Producer Three Way Collar 6 | Crude Oil | 2016 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 275 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 100,600 | |
Floor (Long) (Price per MMBtu) | 85 | |
Short Put (Price per MMBtu) | 65 | |
Ceiling (Short) (Price per MMBtu) | 95.1 | |
Producer Three Way Collar 7 | Crude Oil | 2016 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 330 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 120,780 | |
Floor (Long) (Price per MMBtu) | 80 | |
Short Put (Price per MMBtu) | 65 | |
Ceiling (Short) (Price per MMBtu) | 97.35 | |
Put Spread 1 | Crude Oil | 2014 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 200 | [10],[4] |
Total of Notional Volume (MMBtu's or Bbls) | 24,400 | [10] |
Floor (Long) (Price per MMBtu) | 93 | [10] |
Short Put (Price per MMBtu) | 73 | [10] |
Put Spread 2 | Crude Oil | 2015 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 250 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 91,250 | |
Floor (Long) (Price per MMBtu) | 89 | |
Short Put (Price per MMBtu) | 69 | |
Put Spread 3 | Crude Oil | 2015 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 700 | [4],[8] |
Total of Notional Volume (MMBtu's or Bbls) | 126,700 | [8] |
Floor (Long) (Price per MMBtu) | 90 | [8] |
Short Put (Price per MMBtu) | 70 | [8] |
Put Spread 4 | Crude Oil | 2015 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 600 | [4],[9] |
Total of Notional Volume (MMBtu's or Bbls) | 110,400 | [9] |
Floor (Long) (Price per MMBtu) | 87 | [9] |
Short Put (Price per MMBtu) | 67 | [9] |
Put Spread 5 | Crude Oil | 2016 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 550 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 201,300 | |
Floor (Long) (Price per MMBtu) | 85 | |
Short Put (Price per MMBtu) | 65 | |
Put Spread 6 | Crude Oil | 2016 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 300 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 109,800 | |
Floor (Long) (Price per MMBtu) | 85.5 | |
Short Put (Price per MMBtu) | 65.5 | |
Put Spread 7 | Crude Oil | 2017 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 500 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 182,500 | |
Floor (Long) (Price per MMBtu) | 82 | |
Short Put (Price per MMBtu) | 62 | |
Put Spread 8 | Crude Oil | 2018 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 425 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 103,275 | |
Floor (Long) (Price per MMBtu) | 80 | |
Short Put (Price per MMBtu) | 60 | |
Producer Three Way Collar 8 | Crude Oil | 2017 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 242 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 88,150 | |
Floor (Long) (Price per MMBtu) | 80 | |
Short Put (Price per MMBtu) | 60 | |
Ceiling (Short) (Price per MMBtu) | 98.7 | |
Producer Three Way Collar 9 | Crude Oil | 2017 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 280 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 102,200 | |
Floor (Long) (Price per MMBtu) | 80 | |
Short Put (Price per MMBtu) | 65 | |
Ceiling (Short) (Price per MMBtu) | 97.25 | |
Fixed Price Swap 8 | Natural Gas | 2015 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 3,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 1,095,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4 | |
Fixed Price Swap 8 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 350 | [4],[7] |
Total of Notional Volume (MMBtu's or Bbls) | 64,400 | [7] |
Base Fixed Price (Price per MMbtu or Bbl) | 91.55 | [7] |
Fixed Price Swap 9 | Natural Gas | 2015 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 912,500 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.06 | |
Fixed Price Swap 9 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 500 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 182,500 | |
Base Fixed Price (Price per MMbtu or Bbl) | 91.1 | |
Fixed Price Swap 10 | Natural Gas | 2016 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 732,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.11 | |
Fixed Price Swap 10 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 270 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 98,500 | |
Base Fixed Price (Price per MMbtu or Bbl) | 90.77 | |
Costless Three Way Collar 1 [Member] | Natural Gas | 2013 | Short calls | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | [1] |
Total of Notional Volume (MMBtu's or Bbls) | 152,500 | [1] |
Floor (Long) (Price per MMBtu) | 0 | [1] |
Short Put (Price per MMBtu) | 0 | [1] |
Ceiling (Short) (Price per MMBtu) | 6.45 | [1] |
Costless Three Way Collar 2 [Member] | Natural Gas | 2014 | Costless three way collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 10,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 3,832,500 | |
Floor (Long) (Price per MMBtu) | 3.88 | |
Short Put (Price per MMBtu) | 3 | |
Ceiling (Short) (Price per MMBtu) | 4.53 | |
[1] | For the period November to December 2013. | |
[2] | For the period July to October 2013. | |
[3] | East Houston-Katy - Houston Ship Channel | |
[4] | Crude volumes hedged include oil, condensate and certain components of our NGLs production. | |
[5] | For the period December 2013. | |
[6] | For the period January to June 2014. | |
[7] | For the period July to December 2014. | |
[8] | For the period January to June 2015. | |
[9] | For the period July to December 2015. | |
[10] | For the period September to December 2014. |
Derivative_Instruments_And_Hed4
Derivative Instruments And Hedging Activity Schedule of Unamortized Put Premium Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Current commodity derivative premium put payable | $1,819 | $0 |
Long-term commodity derivative premium payable | 7,651 | 0 |
Total unamortized put premium liabilities | $9,470 | $0 |
Derivative_Instruments_And_Hed5
Derivative Instruments And Hedging Activity (Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Natural gas, condensate, oil and NGLs revenues | Natural gas, condensate, oil and NGLs revenues | Unrealized hedge loss | Unrealized hedge loss | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | Derivatives not designated as hedging instruments | |||
Natural gas, condensate, oil and NGLs revenues | Natural gas, condensate, oil and NGLs revenues | Unrealized hedge loss | Unrealized hedge loss | Interest expense | Interest expense | Interest expense | Interest expense | Current assets | Current assets | Other assets | Other assets | Current liabilities | Current liabilities | Long-term liabilities | Long-term liabilities | ||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commodity derivative contracts, Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,259 | $7,799 | $7,399 | $1,369 | ' | ' | ' | ' |
Commodity derivative contracts, Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -794 | -1,399 | 0 | -1,304 |
Total derivatives not designated as hedging instruments | ' | ' | ' | ' | ' | ' | 8,864 | ' | 6,465 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivatives | ($2,229) | $4,594 | $4,927 | $8,847 | ($7,156) | ($4,123) | ($5,263) | ($2,045) | ' | ($259) | $3,404 | ($5,004) | ($5,403) | $0 | ($46) | $0 | ($130) | ' | ' | ' | ' | ' | ' | ' | ' |
Capital_Stock_Narrative_Detail
Capital Stock (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 03, 2012 | Jun. 02, 2012 | Jun. 07, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | 24-May-11 | Oct. 25, 2013 | Sep. 30, 2013 | Jun. 07, 2013 | Mar. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 24, 2013 | Nov. 04, 2013 | Oct. 29, 2013 | Nov. 01, 2013 | Oct. 31, 2013 | Oct. 25, 2013 | Sep. 30, 2013 | |
Chesapeake Energy Corporation | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Parent's 2006 Long-Term Stock Incentive Plan | ||||||
Subsequent Event | At The Market Sales Agreement | Chesapeake Energy Corporation | Chesapeake Energy Corporation | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | ||||||||||||
At The Market Sales Agreement | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares reserved for the exercise of stock options (shares) | 909,100 | ' | ' | 11,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,931,793 |
Payment to settle legal claim | ' | ' | ' | ' | ' | $10,800,000 | ' | ' | ' | ' | ' | ' | $1,000,000 | $10,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for repurchase of outstanding common shares | 9,753,000 | 0 | ' | ' | ' | 9,800,000 | ' | ' | ' | ' | ' | ' | 9,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of outstanding common shares (shares) | ' | ' | ' | ' | ' | 6,781,768 | ' | ' | ' | ' | ' | ' | ' | 6,781,768 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares authorized for issuance (shares) | ' | ' | ' | ' | ' | ' | 1,000 | 1,000 | ' | 1,000 | 275,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued (shares) | 61,134,950 | ' | 66,432,609 | ' | ' | ' | 750 | 750 | 750 | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock par value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares authorized for issuance (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | 10,000,000 | 40,000,000 | ' |
Preferred stock par value per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | $0.01 | ' | $0.01 | ' | ' | $0.01 | ' |
Shares issued of Series A Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,906 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of preferred stock, net of issuance costs | 133,000 | 49,169,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 136,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares sold (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,958,160 | ' | 2,140,000 | 2,000,000 | ' | ' | ' | ' |
Liquidation Preference | ' | ' | ' | ' | ' | ' | $25 | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' |
Number of additional shares under option to purchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000 | ' | ' | ' |
Net proceeds expected from offering of Series B Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,100,000 | ' | ' | ' | ' | ' |
Period after change in control to redeem preferred stock (days) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, dividend rate, percentage (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.63% | ' | ' | ' | 10.75% | ' | ' | ' | ' |
Dividend on preferred stock | ' | ' | ' | ' | ' | ' | ($2,100,000) | ($6,400,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock redemption price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' | ' |
Option to convert shares of Series B Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.5207 | ' | ' | ' | ' | ' |
Dividend rate upon change in control (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.75% | ' | ' | ' | ' | ' |
Capital_Stock_Schedule_of_Issu
Capital Stock (Schedule of Issuances and Forfeitures of Common Shares) (Details) (Unvested restricted shares) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2013 | |||
Unvested restricted shares | ' | ' | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ||
Restricted common shares granted (shares) | 41,212 | 2,219,115 | ||
Restricted common shares vested (shares) | 123,250 | 753,779 | ||
Common shares forfeited (shares) | 32,751 | [1] | 222,144 | [1] |
Common shares canceled (shares) | 466,535 | 512,862 | ||
[1] | Represents common shares forfeited in connection with the payment of estimated withholding taxes on restricted common shares that vested during the period. |
Capital_Stock_Schedule_of_Pref
Capital Stock (Schedule of Preferred Stock Redemption Dates) (Details) (USD $) | Sep. 30, 2013 |
On or after June 23, 2013 and prior to June 23, 2014 | ' |
Auction Market Preferred Securities, Stock Series [Line Items] | ' |
Redemption Price | $25.25 |
On or after June 23, 2014 | ' |
Auction Market Preferred Securities, Stock Series [Line Items] | ' |
Redemption Price | $25 |
Equity_Compensation_PBUs_Narra
Equity Compensation - PBUs (Narrative) (Details) (PBUs, USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Compensation expense | $217 | $722 |
2006 Long-Term Stock Incentive Plan | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Settlement of PBU's (percentage) | 100.00% | 100.00% |
2006 Long-Term Stock Incentive Plan | Minimum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Settlement of PBU's (percentage) | 0.00% | 0.00% |
2006 Long-Term Stock Incentive Plan | Maximum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Settlement of PBU's (percentage) | 200.00% | 200.00% |
Equity_Compensation_PBUs_Summa
Equity Compensation - PBUs (Summary of PBUs) (Details) (PBUs, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
PBUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Unvested PBUs at December 31, 2012 | 0 |
Granted | 1,192,889 |
Vested | 0 |
Forfeited | -127,155 |
Unvested PBUs at September 30, 2013 | 1,065,734 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Fair Value per Unit, Unvested PBUs at December 31, 2012 | $0 |
Fair Value per Unit, Granted | $1.56 |
Fair Value per Unit, Vested | $0 |
Fair value per unit, Forfeited | $0 |
Fair Value per Unit, Unvested PBUs at September 30, 2013 | $1.56 |
Interest_Expense_Schedule_of_C
Interest Expense (Schedule of Components of Interest Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Interest Expense [Abstract] | ' | ' | ' | ' | ||||
Cash and accrued | $4,376,000 | $549,000 | $8,238,000 | $1,272,000 | ||||
Amortization of deferred financing costs | 340,000 | [1],[2] | 60,000 | [1],[2] | 1,790,000 | [1],[2] | 157,000 | [1],[2] |
Capitalized interest | -1,277,000 | -579,000 | -2,435,000 | -1,343,000 | ||||
Total interest expense | 3,439,000 | 30,000 | 7,593,000 | 86,000 | ||||
Deferred financing costs written off | ' | ' | 1,200,000 | ' | ||||
Accretion of debt discount | $221,000 | ' | $330,000 | ' | ||||
[1] | The nine months ended SeptemberB 30, 2013 includes $1.2 million of deferred financing costs written off as a result of the new Revolving Credit Facility. See Note 4, bLong-Term Debt - Second Amended and Restated Revolving Credit Facility.b | |||||||
[2] | The three and nine months ended SeptemberB 30, 2013 includes $221,000 and $330,000, respectively, of debt discount accretion related to the Notes. |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 36 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 07, 2013 | Dec. 31, 2007 | |
Chesapeake Energy Corporation | Chesapeake Energy Corporation | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Common shares aquired by Chesapeake Energy Corporation (shares) | ' | ' | ' | 6,781,768 |
Payment to settle legal claim | ' | ' | $10,800,000 | ' |
Payments for repurchase of outstanding common shares | $9,753,000 | $0 | $9,800,000 | ' |
Repurchase of outstanding common shares (shares) | ' | ' | 6,781,768 | ' |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Net income (loss) attributable to Gastar Exploration Ltd. | ($3,942) | ($83,457) | $43,308 | ($163,802) |
Weighted average common shares outstanding basic (shares) | 57,359,357 | 63,601,645 | 61,159,117 | 63,494,224 |
Weighted average common shares outstanding diluted (shares) | 57,359,357 | 63,601,645 | 63,971,038 | 63,494,224 |
Basic (dollars per share) | ($0.07) | ($1.31) | $0.71 | ($2.58) |
Diluted (dollars per share) | ($0.07) | ($1.31) | $0.68 | ($2.58) |
Common shares excluded from denominator as anti-dilutive (shares) | 756,200 | 2,858,080 | 960,312 | 2,580,710 |
Unvested restricted shares | ' | ' | ' | ' |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0 | 0 | 2,565,888 | 0 |
Common shares excluded from denominator as anti-dilutive (shares) | 0 | 1,878,355 | 41,212 | 1,654,439 |
Stock options | ' | ' | ' | ' |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Common shares excluded from denominator as anti-dilutive (shares) | 756,200 | 979,725 | 919,100 | 926,271 |
PBUs | ' | ' | ' | ' |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0 | 0 | 246,033 | 0 |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 07, 2013 | Jun. 07, 2013 | Mar. 28, 2013 | Sep. 30, 2013 | Aug. 07, 2013 | Dec. 17, 2010 | |
Chesapeake Energy Corporation | Chesapeake Energy Corporation | Chesapeake Energy Corporation | Chesapeake Exploration LLC and Chesapeake Energy Corporation vs Gastar Exploration Ltd, Gastar Exploration Texas LP, and Gastar Exploration Texas LLC | Gastar Exploration USA Inc v Williams Ohio Valley Midstream LLC | Gastar Exploration Ltd vs US Speciality Ins Co and Axis Ins Co | |||
Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | ||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Loss contingency, damages sought, value | ' | ' | ' | ' | ' | $101,400,000 | ' | ' |
Amount paid by Chesapeake for the purchase of shares | ' | ' | ' | ' | ' | 76,000,000 | ' | ' |
Shares purchased by Chesapeake (shares) | ' | ' | ' | ' | ' | 5,430,329 | ' | ' |
Stock split, conversion ratio | ' | ' | ' | ' | ' | 5 | ' | ' |
Payment to settle legal claim | ' | ' | 10,800,000 | 1,000,000 | 10,800,000 | ' | ' | ' |
Payments for repurchase of outstanding common shares | 9,753,000 | 0 | 9,800,000 | 9,800,000 | ' | ' | ' | ' |
Repurchase of outstanding common shares (shares) | ' | ' | 6,781,768 | ' | 6,781,768 | ' | ' | ' |
Settlement aggregate amount | ' | ' | ' | ' | 80,000,000 | ' | ' | 21,200,000 |
Payments to acquire oil and gas property | ' | ' | ' | 69,400,000 | ' | ' | ' | ' |
Counterclaim for damages | ' | ' | ' | ' | ' | ' | 612,000 | ' |
Combined coverage limits under directors and officers insurance | ' | ' | ' | ' | ' | ' | ' | $20,000,000 |
Statement_Of_Cash_Flows_Supple2
Statement Of Cash Flows - Supplemental Information (Schedule of Supplemental Cash Paid and Non-cash Transactions) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Cash paid for interest | $1,920 | $1,280 |
Non-cash transactions: | ' | ' |
Capital expenditures excluded from accounts payable and accrued drilling costs | -8,335 | 724 |
Capital expenditures excluded from prepaid expenses | 0 | 99 |
Asset retirement obligation included in natural gas and oil properties | 1,795 | 229 |
Asset retirement obligation assigned to operator | -362 | -2,099 |
Application of advances to operators | 14,443 | 5,848 |
Other | $61 | $0 |