Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-31899 | |
Entity Registrant Name | WHITING PETROLEUM CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-0098515 | |
Entity Address, Address Line One | 1700 Lincoln Street, Suite 4700 | |
Entity Address, City or Town | Denver | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80203-4547 | |
City Area Code | 303 | |
Local Phone Number | 837-1661 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | WLL | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Bankruptcy Proceedings, Reporting Current | true | |
Entity Common Stock, Shares Outstanding | 39,117,950 | |
Entity Central Index Key | 0001255474 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash, cash equivalents and restricted cash | $ 19,053 | $ 28,367 |
Accounts receivable trade, net | 214,223 | 142,830 |
Prepaid expenses and other | 14,740 | 19,224 |
Total current assets | 248,016 | 190,421 |
Property and equipment: | ||
Oil and gas properties, successful efforts method | 1,929,550 | 1,812,601 |
Other property and equipment | 68,443 | 74,064 |
Total property and equipment | 1,997,993 | 1,886,665 |
Less accumulated depreciation, depletion and amortization | (177,084) | (73,869) |
Total property and equipment, net | 1,820,909 | 1,812,796 |
Other long-term assets | 39,189 | 40,723 |
TOTAL ASSETS | 2,108,114 | 2,043,940 |
Current liabilities: | ||
Accounts payable trade | 51,786 | 23,697 |
Revenues and royalties payable | 191,248 | 151,196 |
Accrued capital expenditures | 22,877 | 20,155 |
Accrued liabilities and other | 35,143 | 42,007 |
Accrued lease operating expenses | 28,642 | 23,457 |
Taxes payable | 16,712 | 11,997 |
Derivative liabilities | 265,130 | 49,485 |
Total current liabilities | 611,538 | 321,994 |
Long-term debt | 115,000 | 360,000 |
Asset retirement obligations | 93,276 | 91,864 |
Operating lease obligations | 16,265 | 17,415 |
Long-term derivative liabilities | 89,354 | 9,750 |
Other long-term liabilities | 12,909 | 14,113 |
Total liabilities | 938,342 | 815,136 |
Commitments and contingencies | ||
Equity: | ||
Successor common stock, $0.001 par value, 500,000,000 shares authorized; 39,091,073 issued and outstanding as June 30, 2021 and 38,051,125 issued and outstanding as of December 31, 2020 | 39 | 38 |
Additional paid-in capital | 1,193,095 | 1,189,693 |
Accumulated earnings (deficit) | (23,362) | 39,073 |
Total equity | 1,169,772 | 1,228,804 |
TOTAL LIABILITIES AND EQUITY | $ 2,108,114 | $ 2,043,940 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 39,091,073 | 38,051,125 |
Common stock, shares outstanding | 39,091,073 | 38,051,125 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING REVENUES | ||||
Operating revenues | $ 351,646 | $ 91,600 | $ 659,037 | $ 336,446 |
OPERATING EXPENSES | ||||
Lease operating expenses | 64,182 | 53,242 | 123,521 | 125,582 |
Transportation, gathering, compression and other | 7,443 | 9,044 | 14,471 | 18,007 |
Purchased gas expense | 1,178 | 3,080 | ||
Production and ad valorem taxes | 25,669 | 8,419 | 49,819 | 30,842 |
Depreciation, depletion and amortization | 51,618 | 83,549 | 105,347 | 267,517 |
Exploration and impairment | 2,047 | 421,156 | 4,669 | 4,174,613 |
General and administrative | 11,995 | 28,136 | 22,286 | 75,303 |
Derivative (gain) loss, net | 255,409 | 6,632 | 402,102 | (224,739) |
(Gain) loss on sale of properties | (10,110) | 511 | (10,110) | (353) |
Amortization of deferred gain on sale | (1,908) | (3,945) | ||
Total operating expenses | 409,431 | 608,781 | 715,185 | 4,462,827 |
LOSS FROM OPERATIONS | (57,785) | (517,181) | (56,148) | (4,126,381) |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (3,981) | (16,425) | (9,084) | (61,675) |
Gain on extinguishment of debt | 25,883 | |||
Other income | 277 | 76 | 2,797 | 72 |
Reorganization items, net | (41,813) | (41,813) | ||
Total other expense | (3,704) | (58,162) | (6,287) | (77,533) |
LOSS BEFORE INCOME TAXES | (61,489) | (575,343) | (62,435) | (4,203,914) |
INCOME TAX EXPENSE (BENEFIT) | ||||
Current | (1,028) | 2,718 | ||
Deferred tax expense | (3,746) | |||
Total income tax benefit | 0 | (1,028) | 0 | (1,028) |
NET LOSS | $ (61,489) | $ (574,315) | $ (62,435) | $ (4,202,886) |
LOSS PER COMMON SHARE | ||||
Basic (in dollars per share) | $ (1.57) | $ (6.28) | $ (1.61) | $ (45.98) |
Diluted (in dollars per share) | $ (1.57) | $ (6.28) | $ (1.61) | $ (45.98) |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in shares) | 39,067 | 91,429 | 38,883 | 91,409 |
Diluted (in shares) | 39,067 | 91,429 | 38,883 | 91,409 |
Oil, NGL and natural gas sales [Member] | ||||
OPERATING REVENUES | ||||
Operating revenues | $ 349,983 | $ 91,600 | $ 654,662 | $ 336,446 |
Purchased gas sales [Member] | ||||
OPERATING REVENUES | ||||
Operating revenues | $ 1,663 | $ 4,375 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (62,435) | $ (4,202,886) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 105,347 | 267,517 |
Deferred income tax benefit | (3,746) | |
Amortization of debt issuance costs, debt discount and debt premium | 1,773 | 9,786 |
Stock-based compensation | 4,764 | 3,401 |
Amortization of deferred gain on sale | (3,945) | |
Gain on sale of properties | (10,110) | (353) |
Oil and gas property impairments | 2,691 | 4,154,369 |
Gain on extinguishment of debt | (25,883) | |
Non-cash derivative (gain) loss | 295,249 | (178,525) |
Non-cash reorganization items, net | 38,145 | |
Other, net | (3,670) | 829 |
Changes in current assets and liabilities: | ||
Accounts receivable trade, net | (69,957) | 152,560 |
Prepaid expenses and other | 4,484 | (12,036) |
Accounts payable trade and accrued liabilities | 23,536 | (51,783) |
Revenues and royalties payable | 40,052 | (65,609) |
Taxes payable | 4,715 | (14,579) |
Net cash provided by operating activities | 336,439 | 67,262 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Drilling and development capital expenditures | (103,379) | (223,905) |
Acquisition of oil and gas properties | (509) | (351) |
Other property and equipment, proceeds | 490 | |
Other property and equipment, payments | (423) | |
Proceeds from sale of properties | 6,442 | 28,243 |
Net cash used in investing activities | (96,956) | (196,436) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Repurchase of 1.25% Convertible Senior Notes due 2020 | (52,890) | |
Principal payments on finance lease obligations | (2,436) | (2,409) |
Restricted stock used for tax withholdings | (1,361) | (304) |
Net cash provided by (used in) financing activities | (248,797) | 639,397 |
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (9,314) | 510,223 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Beginning of period | 28,367 | 8,652 |
End of period | 19,053 | 518,875 |
SUPPLEMENTAL CASH FLOW DISCLOSURES | ||
Interest paid, net of amounts capitalized | 6,189 | 72,199 |
Cash paid for reorganization items | 396 | 3,668 |
NONCASH INVESTING ACTIVITIES | ||
Accrued capital expenditures and accounts payable related to property additions | 26,935 | 38,504 |
Predecessor Credit Agreement [Member] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings under credit agreement | 1,185,000 | |
Repayments of borrowings under credit agreement | (490,000) | |
NONCASH INVESTING ACTIVITIES | ||
Derivative termination settlement payments used to repay borrowings under Predecessor Credit Agreement | $ 157,741 | |
Credit Agreement [Member] | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings under credit agreement | 590,000 | |
Repayments of borrowings under credit agreement | $ (835,000) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Aug. 31, 2020 | Jun. 30, 2020 |
1.25% Convertible Senior Notes due 2020 [Member] | ||
Interest Rate (as a percent) | 1.25% | 1.25% |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
BALANCES at Dec. 31, 2019 | $ 92 | $ 6,409,991 | $ (2,385,112) | $ 4,024,971 |
BALANCES (in shares) at Dec. 31, 2019 | 91,744 | |||
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (3,628,571) | (3,628,571) | ||
Adjustment to equity component of Convertible Senior Notes upon extinguishment | (3,461) | (3,461) | ||
Restricted stock issued (in shares) | 185 | |||
Restricted stock forfeited (in shares) | (238) | |||
Restricted stock used for tax withholdings | (304) | (304) | ||
Restricted stock used for tax withholdings (in shares) | (54) | |||
Stock-based compensation | 2,068 | 2,068 | ||
BALANCES at Mar. 31, 2020 | $ 92 | 6,408,294 | (6,013,683) | 394,703 |
BALANCES (in shares) at Mar. 31, 2020 | 91,637 | |||
BALANCES at Dec. 31, 2019 | $ 92 | 6,409,991 | (2,385,112) | 4,024,971 |
BALANCES (in shares) at Dec. 31, 2019 | 91,744 | |||
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (4,202,886) | |||
BALANCES at Jun. 30, 2020 | $ 92 | 6,409,627 | (6,587,998) | (178,279) |
BALANCES (in shares) at Jun. 30, 2020 | 91,637 | |||
BALANCES at Mar. 31, 2020 | $ 92 | 6,408,294 | (6,013,683) | 394,703 |
BALANCES (in shares) at Mar. 31, 2020 | 91,637 | |||
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (574,315) | (574,315) | ||
Stock-based compensation | 1,333 | 1,333 | ||
BALANCES at Jun. 30, 2020 | $ 92 | 6,409,627 | (6,587,998) | (178,279) |
BALANCES (in shares) at Jun. 30, 2020 | 91,637 | |||
BALANCES at Dec. 31, 2020 | $ 38 | 1,189,693 | 39,073 | 1,228,804 |
BALANCES (in shares) at Dec. 31, 2020 | 38,051 | |||
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (946) | (946) | ||
Common stock issued in settlement of bankruptcy claims | $ 1 | (1) | ||
Common stock issued in settlement of bankruptcy claims (in shares) | 949 | |||
Restricted stock issued (in shares) | 95 | |||
Restricted stock used for tax withholdings | (1,357) | (1,357) | ||
Restricted stock used for tax withholdings (in shares) | (41) | |||
Stock-based compensation | 2,309 | 2,309 | ||
BALANCES at Mar. 31, 2021 | $ 39 | 1,190,644 | 38,127 | 1,228,810 |
BALANCES (in shares) at Mar. 31, 2021 | 39,054 | |||
BALANCES at Dec. 31, 2020 | $ 38 | 1,189,693 | 39,073 | 1,228,804 |
BALANCES (in shares) at Dec. 31, 2020 | 38,051 | |||
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (62,435) | |||
BALANCES at Jun. 30, 2021 | $ 39 | 1,193,095 | (23,362) | 1,169,772 |
BALANCES (in shares) at Jun. 30, 2021 | 39,091 | |||
BALANCES at Mar. 31, 2021 | $ 39 | 1,190,644 | 38,127 | 1,228,810 |
BALANCES (in shares) at Mar. 31, 2021 | 39,054 | |||
Increase (Decrease) in Shareholders' Equity | ||||
Net loss | (61,489) | (61,489) | ||
Restricted stock issued (in shares) | 37 | |||
Restricted stock used for tax withholdings | (4) | (4) | ||
Stock-based compensation | 2,455 | 2,455 | ||
BALANCES at Jun. 30, 2021 | $ 39 | $ 1,193,095 | $ (23,362) | $ 1,169,772 |
BALANCES (in shares) at Jun. 30, 2021 | 39,091 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Description of Operations Voluntary Reorganization under Chapter 11 of the Bankruptcy Code Upon emergence, the Company adopted fresh start accounting in accordance with FASB ASC Topic 852 – Reorganizations (“ASC 852”), which specifies the accounting and financial reporting requirements for entities reorganizing through chapter 11 bankruptcy proceedings. The application of fresh start accounting resulted in a new basis of accounting and the Company becoming a new entity for financial reporting purposes. As a result of the implementation of the Plan and the application of fresh start accounting, the consolidated financial statements after the Emergence Date are not comparable to the consolidated financial statements before that date and the historical financial statements on or before the Emergence Date are not a reliable indicator of the Company’s financial condition and results of operations for any period after its adoption of fresh start accounting. Refer to the “Fresh Start Accounting” footnote for more information. References to “Successor” refer to the Company and its financial position and results of operations after the Emergence Date. References to “Predecessor” refer to the Company and its financial position and results of operations on or before the Emergence Date. References to “Successor Period” and “Successor YTD Period” refer to the three and six months ended June 30, 2021, respectively. References to “Predecessor Period” and “Predecessor YTD Period” refer to the three and six months ended June 30, 2020, respectively. During the Predecessor YTD Period, the Company applied ASC 852 in preparing the condensed consolidated financial statements, which requires distinguishing transactions associated with the reorganization separate from activities related to the ongoing operations of the business. Accordingly, certain expenses, realized gains and losses and provisions for losses that were realized or incurred during the Chapter 11 Cases, including adjustments to the carrying value of certain indebtedness, were recorded as reorganization items, net in the condensed consolidated statements of operations for the Predecessor periods. Condensed Consolidated Financial Statements for the period ended December 31, 2020. Except as disclosed herein, there have been no material changes to the information disclosed in the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the period ending December 31, 2020. Reclassifications — Cash, Cash Equivalents and Restricted Cash — Restricted cash as of June 30, 2021 and December 31, 2020 consist of funds remaining in a professional fee escrow account that were reserved to pay certain professional fees upon emergence from the Chapter 11 Cases. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets and statements of cash flows (in thousands): Successor June 30, December 31, 2021 2020 Cash and cash equivalents $ 16,652 $ 25,607 Restricted cash 2,401 2,760 Total cash, cash equivalents and restricted cash $ 19,053 $ 28,367 Accounts Receivable Trade — The Company routinely evaluates expected credit losses for all material trade and other receivables to determine if an allowance for credit losses is warranted. Expected credit losses are estimated based on (i) historic loss experience for pools of receivable balances with similar characteristics, (ii) the length of time balances have been outstanding and (iii) the economic status of each counterparty. These loss estimates are then adjusted for current and expected future economic conditions, which may include an assessment of the probability of non-payment, financial distress or expected future commodity prices and the impact that any current or future conditions could have on a counterparty’s credit quality and liquidity. As of June 30, 2021 and December 31, 2020 (Successor), the Company had immaterial allowances for credit losses. |
CHAPTER 11 EMERGENCE
CHAPTER 11 EMERGENCE | 6 Months Ended |
Jun. 30, 2021 | |
CHAPTER 11 EMERGENCE [Abstract] | |
CHAPTER 11 EMERGENCE | 2. CHAPTER 11 EMERGENCE Plan of Reorganization under Chapter 11 of the Bankruptcy Code — On April 1, 2020, the Debtors commenced the Chapter 11 Cases as described in the “Basis of Presentation” footnote above. On April 23, 2020, the Debtors entered into a restructuring support agreement with certain holders of the Company’s senior notes to support a restructuring in accordance with the terms set forth in the Plan. On August 14, 2020, the Bankruptcy Court confirmed the Plan. On September 1, 2020, the Debtors satisfied all conditions required for Plan effectiveness and emerged from the Chapter 11 Cases. On the Emergence Date and pursuant to the Plan: (1) The Company amended and restated its certificate of incorporation and bylaws. (2) The Company constituted a new Successor board of directors. (3) The Company appointed a new Chief Executive Officer and a new Chief Financial Officer. (4) The Company issued: ● 36,817,630 shares of the Successor ’s common stock pro rata to holders of the Predecessor ’s senior notes, ● 1,233,495 shares of the Successor’s common stock pro rata to holders of the Predecessor’s common stock, ● 4,837,387 Series A Warrants to purchase the same number of shares of the Successor’s common stock pro rata to holders of the Predecessor’s common stock and ● 2,418,840 Series B Warrants to purchase the same number of shares of the Successor’s common stock pro rata to holders of the Predecessor’s common stock. The Company also reserved 3,070,201 shares of the Successor’s common stock for potential future distribution to certain general unsecured claimants whose claim values were pending resolution in the Bankruptcy Court. In February 2021, the Company issued 948,897 shares out of this reserve to a general unsecured claimant in full settlement of such claimant’s claims pending before the Bankruptcy Court and for rejection damages relating to an executory contract. Any remaining reserved shares that are not distributed to resolve pending claims will be cancelled. In addition, 4,035,885 shares have been reserved for distribution under the Company’s 2020 equity incentive plan, as further detailed in the “Stock-Based Compensation” footnote below. (5) Whiting Petroleum Corporation, as parent guarantor, and Whiting Oil and Gas, as borrower, entered into a reserves-based credit agreement with a syndicate of banks (the “Credit Agreement”) with initial aggregate commitments in the amount of $750 million, with the ability to increase the aggregate commitments by up to an additional $750 million, subject to certain conditions. Refer to the “Long-Term Debt” footnote for more information on the Credit Agreement. The Company utilized borrowings from the Credit Agreement and cash on hand to repay all borrowings and accrued interest outstanding on its pre-emergence credit facility (the “Predecessor Credit Agreement”) as of the Emergence Date, and the Predecessor Credit Agreement terminated on that date. (6) The holders of trade claims, administrative expense claims, other secured claims and other priority claims received payment in full in cash upon emergence or through the ordinary course of business after the Emergence Date. Executory Contracts has been issued by the Bankruptcy Court. Further, nothing herein is or shall be deemed an admission with respect to any claim amounts or calculations arising from the rejection of any executory contract or unexpired lease and the Debtors expressly reserve all of their rights in that regard. Refer to the “Commitments and Contingencies” footnote for more information on potential future rejection damages related to general unsecured claims. Interest Expense Claims Resolution Process |
FRESH START ACCOUNTING
FRESH START ACCOUNTING | 6 Months Ended |
Jun. 30, 2021 | |
FRESH START ACCOUNTING [Abstract] | |
FRESH START ACCOUNTING | 3. FRESH START ACCOUNTING Fresh Start Fair Value Measurement Business Combinations For further information on the Company’s reorganization value and the resulting fresh start adjustments made on the Emergence Date, refer to the “Fresh Start Accounting” footnote in the notes to the consolidated financial statements in Item 8 of the Company’s Annual Report on Form 10-K for the period ending December 31, 2020. Reorganization Items, Net Predecessor Three and Six Months Ended June 30, 2020 Legal and professional advisory fees $ 26,668 Write-off of unamortized debt issuance costs and premium (1) 15,145 Total reorganization items, net $ 41,813 (1) As a result of the Chapter 11 Cases and the adoption of ASC 852, the Company wrote off all unamortized premium and issuance cost balances related to its senior notes on the Petition Date. |
OIL AND GAS PROPERTIES
OIL AND GAS PROPERTIES | 6 Months Ended |
Jun. 30, 2021 | |
OIL AND GAS PROPERTIES [Abstract] | |
OIL AND GAS PROPERTIES | 4. OIL AND GAS PROPERTIES Net capitalized costs related to the Company’s oil and gas producing activities at June 30, 2021 and December 31, 2020 are as follows (in thousands): Successor June 30, December 31, 2021 2020 Proved oil and gas properties $ 1,781,723 $ 1,701,163 Unproved leasehold costs 101,477 105,073 Wells and facilities in progress 46,350 6,365 Total oil and gas properties, successful efforts method 1,929,550 1,812,601 Accumulated depletion (170,435) (71,064) Oil and gas properties, net $ 1,759,115 $ 1,741,537 Impairment expense for unproved properties was $1 million and $2 million for the three and six months ended June 30, 2021 (Successor), respectively. Impairment expense for unproved properties was immaterial for the three months ended June 30, 2020 (Predecessor) and $12 million for the six months ended June 30, 2020 (Predecessor). Impairment expense for unproved properties is reported in exploration and impairment expense in the condensed consolidated statements of operations. Refer to the “Fair Value Measurements” footnote for more information on proved property impairments recorded during the three and six months ended June 30, 2020. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 6 Months Ended |
Jun. 30, 2021 | |
ACQUISITIONS AND DIVESTITURES [Abstract] | |
ACQUISITIONS AND DIVESTITURES | 5. ACQUISITIONS AND DIVESTITURES 2021 Acquisitions and Divestitures There were no significant acquisitions or divestitures during the six months ended June 30, 2021. Refer to the “Subsequent Events” footnote for information on acquisition and divestiture activity subsequent to June 30, 2021. 2020 Acquisitions and Divestitures On January 9, 2020, the Predecessor completed the divestiture of its interests in 30 non-operated, producing oil and gas wells and related undeveloped acreage located in McKenzie County, North Dakota for aggregate sales proceeds of $25 million (before closing adjustments). There were no significant acquisitions during the six months ended June 30, 2020. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2021 | |
LONG-TERM DEBT [Abstract] | |
LONG-TERM DEBT | 6. LONG-TERM DEBT Long-term debt, consisting entirely of borrowings outstanding under the Company’s Credit Agreement, totaled $115 million and $360 million at June 30, 2021 and December 31, 2020, respectively. Credit Agreement (Successor) On the Emergence Date, Whiting Petroleum Corporation, as parent guarantor, and Whiting Oil and Gas, as borrower, entered into the Credit Agreement, a reserves-based credit facility, with a syndicate of banks . As of June 30, 2021, the Credit Agreement had a borrowing base and aggregate commitments of $750 million. As of June 30, 2021, the Company had $633 million of available borrowing capacity under the Credit Agreement, which was net of $115 million of borrowings outstanding and $2 The borrowing base under the Credit Agreement is determined at the discretion of the lenders, based on the collateral value of the Company’s proved reserves that have been mortgaged to such lenders, and is subject to regular redeterminations on April 1 and October 1 of each year, as well as special redeterminations described in the Credit Agreement, in each case which may increase or decrease the amount of the borrowing base. In April 2021, the Company’s borrowing base and aggregate commitments of $750 million were reaffirmed in connection with our regular borrowing base redetermination. Asset sales that materially impact the value of the Company’s proved reserves may result in a reduction of the borrowing base. However, the Company can increase the aggregate commitments by up to an additional $750 million, subject to certain conditions. A portion of the borrowing base in an aggregate amount not to exceed $50 million may be used to issue letters of credit for the account of Whiting Oil and Gas or other designated subsidiaries of the Company. As of June 30, 2021, $48 million was available for additional letters of credit under the Credit Agreement. The Credit Agreement provides for interest only payments until maturity on April 1, 2024, when the agreement terminates and all outstanding borrowings are due. In addition, the Credit Agreement provides for certain mandatory prepayments, including a provision pursuant to which, if the Company’s cash balances are in excess of approximately $75 million during any given week, such excess must be utilized to repay borrowings under the Credit Agreement. Interest under the Credit Agreement accrues at the Company’s option at either (i) a base rate for a base rate loan plus a margin between 1.75% and 2.75% based on the ratio of outstanding borrowings and letters of credit to the lower of the current borrowing base or total commitments, where the base rate is defined as the greatest of the prime rate, the federal funds rate plus 0.5% per annum, or an adjusted LIBOR plus 1.0% per annum, or (ii) an adjusted LIBOR for a eurodollar loan plus a margin between 2.75% and 3.75% based on the ratio of outstanding borrowings and letters of credit to the lower of the current borrowing base or total commitments. Additionally, the Company incurs commitment fees of 0.5% on the unused portion of the aggregate commitments of the lenders under the Credit Agreement, which are included as a component of interest expense. At June 30, 2021, the weighted average interest rate on the outstanding principal balance under the Credit Agreement was 4.1%. The Credit Agreement contains restrictive covenants that may limit the Company’s ability to, among other things, incur additional indebtedness, sell assets, make loans to others, make investments, enter into mergers, enter into hedging contracts, incur liens and engage in certain other transactions without the prior consent of its lenders. Except for limited exceptions, the Credit Agreement also restricts the Company’s ability to make any dividend payments or distributions on its common stock prior to September 1, 2021, and thereafter only to the extent that the Company has distributable free cash flow and (i) has at least 20% of available borrowing capacity, (ii) has a consolidated net leverage ratio of less than or equal to 2.0 to 1.0, (iii) does not have a borrowing base deficiency and (iv) is not in default under the Credit Agreement. These restrictions apply to all of the Company’s restricted subsidiaries and are calculated in accordance with definitions contained in the Credit Agreement. The Credit Agreement requires the Company, as of the last day of any quarter, to maintain commodity hedges covering a minimum of 65% of its projected production for the succeeding twelve months, and 35% of its projected production for the next succeeding twelve months, both as reflected in the reserves report most recently provided by the Company to the lenders under the Credit Agreement. The Company is also limited to hedging a maximum of 85% of its production from proved reserves. The Credit Agreement requires the Company to maintain the following ratios: (i) a consolidated current assets to consolidated current liabilities ratio of not less than 1.0 to 1.0 and (ii) a total debt to last four quarters’ EBITDAX ratio of not greater than 3.5 to 1.0. As of June 30, 2021, the Company was in compliance with the covenants under the Credit Agreement. The obligations of Whiting Oil and Gas under the Credit Agreement are secured by a first lien on substantially all of the Company’s properties. The Company has also guaranteed the obligations of Whiting Oil and Gas under the Credit Agreement and has pledged the stock of certain of its subsidiaries as security for its guarantee. Senior Notes and Convertible Senior Notes (Predecessor) Prior to the Emergence Date, the Company had outstanding notes consisting of $774 million 5.75% Senior Notes due 2021, $408 million 6.25% Senior Notes due 2023 and $1.0 billion 6.625% Senior Notes due 2026 (collectively, the “Senior Notes”) and $187 million of 1.25% Convertible Senior Notes due 2020 (the “Convertible Senior Notes”). On the Emergence Date, through implementation of the Plan, all outstanding obligations under the Senior Notes and the Convertible Senior Notes were cancelled and 36,817,630 shares of Successor common stock were issued to the holders of those outstanding notes. In addition, the remaining unamortized debt issuance costs and debt premium were written off to reorganization items, net in the condensed consolidated statements of operations. Refer to the “Chapter 11 Emergence” and “Fresh Start Accounting” footnotes for more information. In March 2020, the Company paid $53 million to repurchase $73 million aggregate principal amount of the Convertible Senior Notes, which payment consisted of the average 72.5% purchase price plus all accrued and unpaid interest on the notes, which were allocated to the liability and equity components based on their relative fair values. The Company financed the repurchases with borrowings under the Predecessor Credit Agreement. As a result of these repurchases, the Company recognized a $23 million gain on extinguishment of debt during the Predecessor Period, which was net of a $0.2 million charge for the non-cash write-off of unamortized debt issuance costs and debt discount. In addition, the Company recorded a $3 million reduction to the equity component of the Convertible Senior Notes. There was no deferred tax impact associated with this reduction due to the full valuation allowance in effect as of March 31, 2020. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2021 | |
ASSET RETIREMENT OBLIGATIONS [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | 7. ASSET RETIREMENT OBLIGATIONS The Company’s asset retirement obligations represent the present value of estimated future costs associated with the plugging and abandonment of oil and gas wells, removal of equipment and facilities from leased acreage and land restoration in accordance with applicable local, state and federal laws and the terms of the Company’s lease agreements. The current portions as of June 30, 2021 and December 31, 2020 (Successor) were $6 million, and have been included in accrued liabilities and other in the condensed consolidated balance sheets. The following table provides a reconciliation of the Company’s asset retirement obligations for the six months ended June 30, 2021 (in thousands): Asset retirement obligation at January 1, 2021 (Successor) $ 98,130 Additional liability incurred 773 Revisions to estimated cash flows 8,354 Accretion expense 4,412 Obligations on sold properties (9,654) Liabilities settled (2,492) Asset retirement obligation at June 30, 2021 (Successor) $ 99,523 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 8. DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risks relating to its ongoing business operations, and it uses derivative instruments to manage its commodity price risk. Commodity Derivative Contracts — Crude Oil, Natural Gas and Natural Gas Liquids Swaps and Collars, Natural Gas Basis Swaps and Crude Oil Differential Swaps. The table below details the Successor’s swap and collar derivatives entered into to hedge forecasted crude oil, NGL and natural gas production revenues as of June 30, 2021 (Successor). Weighted Average Settlement Period Index Derivative Instrument Total Volumes Units Swap Price Floor Ceiling Crude Oil 2021 NYMEX WTI Fixed Price Swaps 3,588,000 Bbl $45.40 - - 2021 NYMEX WTI Two-way Collars 3,162,000 Bbl - $41.64 $50.50 Q1 2022 NYMEX WTI Fixed Price Swaps 630,000 Bbl $54.30 - - 2022 NYMEX WTI Two-way Collars 9,559,000 Bbl - $43.22 $53.70 Q1-Q2 2023 NYMEX WTI Two-way Collars 3,259,500 Bbl - $46.79 $59.37 Total 20,198,500 Crude Oil Differentials (1) 2021 UHC Clearbrook to NYMEX Fixed Price Swaps 76,500 Bbl -$1.95 - - Total 76,500 Natural Gas 2021 NYMEX Henry Hub Fixed Price Swaps 8,970,000 MMBtu $2.81 - - 2021 NYMEX Henry Hub Two-way Collars 5,520,000 MMBtu - $2.60 $2.79 Q1-Q3 2022 NYMEX Henry Hub Fixed Price Swaps 5,259,000 MMBtu $2.68 - - 2022 NYMEX Henry Hub Two-way Collars 10,720,000 MMBtu - $2.35 $2.85 Q1-Q2 2023 NYMEX Henry Hub Two-way Collars 4,975,000 MMBtu - $2.37 $2.91 Total 35,444,000 Natural Gas Basis (2) 2021 NNG Ventura to NYMEX Fixed Price Swaps 3,680,000 MMBtu -$0.18 - - Q1-Q2 2022 NNG Ventura to NYMEX Fixed Price Swaps 3,530,000 MMBtu $0.14 - - Q1-Q2 2023 NNG Ventura to NYMEX Fixed Price Swaps 4,740,000 MMBtu $0.07 - - Total 11,950,000 NGL - Propane 2021 Mont Belvieu Fixed Price Swaps 19,320,000 Gallons $0.78 - - Q1 2022 Mont Belvieu Fixed Price Swaps 3,780,000 Gallons $0.81 - - Total 23,100,000 (1) The weighted average price associated with the crude oil differential swaps shown in the table above represents the average fixed differential to NYMEX as stated in the related contracts, which is compared to the NE2 Canadian Monthly Index for UHC Clearbrook (“UHC Clearbrook”) for each period. If NYMEX combined with the fixed differential as stated in each contract is higher than the UHC Clearbrook index price at any settlement date, the Company receives the difference. Conversely, if the UHC Clearbrook index price is higher than NYMEX combined with the fixed differential, the Company pays the difference. (2) The weighted average price associated with the natural gas basis swaps shown in the table above represents the average fixed differential to NYMEX as stated in the related contracts, which is compared to the Northern Natural Gas Ventura Index (“NNG Ventura”) for each period. If NYMEX combined with the fixed differential as stated in each contract is higher than the NNG Ventura index price at any settlement date, the Company receives the difference. Conversely, if the NNG Ventura index price is higher than NYMEX combined with the fixed differential, the Company pays the difference. Effect of Chapter 11 Cases Derivative Instrument Reporting Offsetting of Derivative Assets and Liabilities. June 30, 2021 (1) Net Gross Recognized Recognized Gross Fair Value Not Designated as Assets/ Amounts Assets/ ASC 815 Hedges Balance Sheet Classification Liabilities Offset Liabilities Derivative assets Commodity contracts - current Prepaid expenses and other $ 7,001 $ (7,001) $ - Commodity contracts - non-current Other long-term assets 21,324 (21,324) - Total derivative assets $ 28,325 $ (28,325) $ - Derivative liabilities Commodity contracts - current Derivative liabilities $ 272,131 $ (7,001) $ 265,130 Commodity contracts - non-current Long-term derivative liabilities 110,678 (21,324) 89,354 Total derivative liabilities $ 382,809 $ (28,325) $ 354,484 December 31, 2020 (1) Net Gross Recognized Recognized Gross Fair Value Not Designated as Assets/ Amounts Assets/ ASC 815 Hedges Balance Sheet Classification Liabilities Offset Liabilities Derivative assets Commodity contracts - current Prepaid expenses and other $ 14,287 $ (14,287) $ - Commodity contracts - non-current Other long-term assets 19,991 (19,991) - Total derivative assets $ 34,278 $ (34,278) $ - Derivative liabilities Commodity contracts - current Derivative liabilities $ 63,772 $ (14,287) $ 49,485 Commodity contracts - non-current Long-term derivative liabilities 29,741 (19,991) 9,750 Total derivative liabilities $ 93,513 $ (34,278) $ 59,235 (1) All of the counterparties to the Company’s financial derivative contracts subject to master netting arrangements are lenders under the Credit Agreement, which eliminates the need to post or receive collateral associated with its derivative positions. Therefore, columns for cash collateral pledged or received have not been presented in these tables. Contingent Features in Financial Derivative Instruments. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 9. FAIR VALUE MEASUREMENTS The Company follows ASC 820 which establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: ● Level 1: Quoted Prices in Active Markets for Identical Assets – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2: Significant Other Observable Inputs – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3: Significant Unobservable Inputs – inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon 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 in its entirety requires judgment and considers factors specific to the asset or liability. Cash, cash equivalents, restricted cash, accounts receivable and accounts payable are carried at cost, which approximates their fair value because of the short-term maturity of these instruments. The Company’s Credit Agreement has a recorded value that approximates its fair value since its variable interest rate is tied to current market rates and the applicable margins represent market rates. The Company’s derivative financial instruments are recorded at fair value and include a measure of the Company’s own nonperformance risk or that of its counterparty, as appropriate. The following tables present information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 (Successor), and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values (in thousands): Total Fair Value Level 1 Level 2 Level 3 June 30, 2021 Financial Liabilities Commodity derivatives – current $ - $ 265,130 $ - $ 265,130 Commodity derivatives – non-current - 89,354 - 89,354 Total financial liabilities $ - $ 354,484 $ - $ 354,484 Total Fair Value Level 1 Level 2 Level 3 December 31, 2020 Financial Liabilities Commodity derivatives – current $ - $ 49,485 $ - $ 49,485 Commodity derivatives – non-current - 9,750 - 9,750 Total financial liabilities $ - $ 59,235 $ - $ 59,235 The following methods and assumptions were used to estimate the fair values of the Company’s financial assets and liabilities that are measured on a recurring basis: Commodity Derivatives Non-recurring Fair Value Measurements — Predecessor Net Carrying Value as of Loss (Before Tax) March 31, Fair Value Measurements Using Three Months Ended 2020 Level 1 Level 2 Level 3 March 31, 2020 Proved property (1) $ 816,234 $ - $ - $ 816,234 $ 3,732,096 (1) During the first quarter of 2020, certain proved oil and gas properties across the Company’s Williston Basin resource play with a previous carrying amount of $4.5 billion were written down to their fair value as of March 31, 2020 of $816 million, resulting in a non-cash impairment charge of $3.7 billion, which was recorded within exploration and impairment expense. These impaired properties were written down due to a reduction in anticipated future cash flows primarily driven by an expectation of sustained depressed oil prices and a resultant decline in future development plans for the properties as of March 31, 2020. Predecessor Net Carrying Value as of Loss (Before Tax) June 30, Fair Value Measurements Using Six Months Ended 2020 Level 1 Level 2 Level 3 June 30, 2020 Proved property (2) $ 85,418 $ - $ - $ 85,418 $ 409,079 (2) During the second quarter of 2020, other proved oil and gas properties in the Company’s Williston Basin resource play with a previous carrying amount of $494 million were written down to their fair value as of June 30, 2020 of $85 million, resulting in a non-cash impairment charge of $409 million, which was recorded within exploration and impairment expense. These impaired properties were written down due to a reduction in anticipated future cash flows primarily driven by an expectation of sustained depressed oil prices and a resultant decline in future development plans for the properties as of June 30, 2020. Predecessor Proved Property Impairments |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2021 | |
REVENUE RECOGNITION [Abstract] | |
REVENUE RECOGNITION | 10. REVENUE RECOGNITION The Company recognizes revenue in accordance with FASB ASC Topic 606 – Revenue from Contracts with Customers Successor Predecessor OPERATING REVENUES Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Oil sales $ 308,417 $ 91,904 NGL and natural gas sales (1) 41,566 (304) Oil, NGL and natural gas sales 349,983 91,600 Purchased gas sales 1,663 - Total operating revenues $ 351,646 $ 91,600 (1) Negative NGL and natural gas sales revenue during the three months ended June 30, 2020 was a result of third-party transportation, gathering and processing costs exceeding the average price realized for certain NGL and natural gas volumes sold during the period. Successor Predecessor Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 OPERATING REVENUES Oil sales $ 565,126 $ 323,849 NGL and natural gas sales 89,536 12,597 Oil, NGL and natural gas sales 654,662 336,446 Purchased gas sales 4,375 - Total operating revenues $ 659,037 $ 336,446 Whiting receives payment for product sales from one The Company has elected to utilize the practical expedient in ASC 606 that states the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under the Company’s contracts, each monthly delivery of product represents a separate performance obligation, therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 11. SHAREHOLDERS’ EQUITY Common Stock — Upon emergence from the Chapter 11 Cases on the Emergence Date, all existing shares of the Predecessor’s common stock were cancelled and the Successor issued 38,051,125 shares of New Common Stock. Refer to the “Chapter 11 Emergence” footnote for more information. Warrants — The Series A Warrants are exercisable from the date of issuance until the fourth anniversary of the Emergence Date, at which time all unexercised Series A Warrants will expire, and the rights of the holders of such warrants to purchase New Common Stock will terminate. The Series A Warrants are initially exercisable for one share of New Common Stock per Series A Warrant at an initial exercise price of $73.44 per Series A Warrant (the “Series A Exercise Price”). The Series B Warrants are exercisable from the date of issuance until the fifth anniversary of the Emergence Date, at which time all unexercised Series B Warrants will expire, and the rights of the holders of such warrants to purchase New Common Stock will terminate. The Series B Warrants are initially exercisable for one share of New Common Stock per Series B Warrant at an initial exercise price of $83.45 per Series B Warrant (the “Series B Exercise Price” and together with the Series A Exercise Price, the “Exercise Prices”). Pursuant to the warrant agreements, no holder of a Warrant, by virtue of holding or having a beneficial interest in a Warrant, will have the right to vote, receive dividends, receive notice as stockholders with respect to any meeting of stockholders for the election of Whiting’s directors or any other matter, or exercise any rights whatsoever as a stockholder of Whiting unless, until and only to the extent such holders become holders of record of shares of New Common Stock issued upon settlement of the Warrants. The number of shares of New Common Stock for which a Warrant is exercisable and the Exercise Prices, are subject to adjustment from time to time upon the occurrence of certain events, including stock splits, reverse stock splits or stock dividends to holders of New Common Stock or a reclassification in respect of New Common Stock. Settlement of Bankruptcy Claims — As discussed in the “Chapter 11 Emergence” footnote, an additional 2,121,304 shares of New Common Stock remain reserved as of June 30, 2021 for potential future distribution to certain general unsecured claimants whose claim values were pending resolution in the Bankruptcy Court. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 12. STOCK-BASED COMPENSATION Equity Incentive Plan Historically, the Company has granted service-based restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) to executive officers and employees, which generally vest ratably over a two three Successor Awards During September and October 2020, 89,021 shares of service-based RSUs were granted to executive officers and directors under the 2020 Equity Plan. The Company determines compensation expense for these share-settled awards using their fair value at the grant date based on the closing bid price of the Company’s common stock on such date. The weighted average grant date fair value of these RSUs was $17.47 per share. In September 2020, 189,900 shares of market-based RSUs were granted to executive officers under the 2020 Equity Plan. The awards will vest upon the Successor’s common stock trading for 20 consecutive trading days above a certain daily volume weighted average price (“VWAP”) as follows: 50% will vest if the VWAP exceeds $32.57 per share, an additional 25% if the daily VWAP exceeds $48.86 per share and the final 25% if the daily VWAP exceeds $65.14 per share. The Company recognizes compensation expense based on the fair value as determined by a Monte Carlo valuation model (the “Monte Carlo Model”) over the expected vesting period, which is estimated to be between 1.8 and 3.8 years. The weighted average grant date fair value of these RSUs was $6.54 per share. More information on the inputs of the Monte Carlo Model are explained below. During the six months ended June 30, 2021, the first 50% of these awards vested as the Company’s VWAP exceeded $32.57 per share for 20 consecutive trading days during the period. Subsequent to June 30, 2021, an additional 25% of these awards vested as the Company’s VWAP exceeded $48.86 per share for 20 consecutive trading days. During the six months ended , 2021, 358,123 shares of service-based RSUs were granted to executive officers and employees under the 2020 Equity Plan, which vest ratably over either a two or three-year service period. Additionally, during the six months ended June 30, 2021, 117,607 shares of service-based RSUs were granted to executive officers under the 2020 Equity Plan, which cliff vest on the fifth anniversary of the grant date. Finally, during the six months ended June The Company determines compensation expense for these share-settled awards using their fair value at the grant date, which is based on the closing bid price of the Company’s common stock on such date. The weighted average grant date fair value of serviced-based RSUs was $23.74 per share for the six months ended June 30, 2021. During the six months ended June 30, 2021, 232,150 shares of PSUs subject to certain market-based vesting criteria were granted to executive officers under the 2020 Equity Plan. These market-based awards vest at the end of the performance period, which is December 31, 2023, and the number of shares that vest at the end of the performance period is determined based on two performance goals: (i) 116,075 shares vest based on the Company’s annualized absolute total stockholder return (“ATSR”) over the performance period as compared to certain preestablished target returns and (ii) 116,075 shares vest based on the Company’s relative total stockholder return (“RTSR”) compared to the stockholder returns of a preestablished peer group of companies over the performance period. The number of awards earned could range from zero up to two times the number of shares initially granted, all of which will be settled in shares. The weighted average grant date fair value of the market-based awards was $29.32 per share and $32.33 per share for the ATSR and RTSR awards, respectively, as determined by the Monte Carlo Model, which is described further below. For awards subject to market conditions, the grant date fair value is estimated using the Monte Carlo Model, which 2020 2021 RSUs PSUs Number of simulations 100,000 500,000 Expected volatility 40% 81% Risk-free interest rate 0.66% 0.17% Dividend yield - - The following table shows a summary of the Company’s service-based and market-based awards activity for the six months ended June 30, 2021: Number of Awards Weighted Average Service ‑ Based Market-Based Market-Based Grant Date RSUs RSUs PSUs Fair Value Nonvested awards, January 1 89,021 189,900 - $ 10.03 Granted 499,460 - 232,150 25.99 Vested (36,959) (94,950) - 9.61 Forfeited (4,004) - - 22.46 Nonvested awards, June 30 547,518 94,950 232,150 $ 23.38 The Company recognized $2 million and $5 million in stock-based compensation expense during the three and six months ended June 30, 2021, respectively. Predecessor Awards During the six months ended June 30, 2020, 53,198 shares of share-settled, service-based RSAs and RSUs were granted to executive officers and directors under the Predecessor Equity Plan. The Company determined compensation expense for these awards using their fair value at the grant date, which was based on the closing bid price of the Company’s common stock on such date. The weighted average grant date fair value of these service-based RSAs and RSUs was $4.94 per share for the six months ended June 30, 2020. On March 31, 2020, all of the RSAs issued to executive officers in 2020 were forfeited and concurrently replaced with cash incentives. Refer to “2020 Compensation Adjustments” below for more information. During the six months ended June 30, 2020, 1,616,504 shares of cash-settled, service-based RSUs were granted to executive officers and employees under the Predecessor Equity Plan. The company determined compensation expense for these awards using the fair value at the end of each reporting period, which was based on the closing bid price of the Company’s common stock on such date. On March 31, 2020, all of the RSUs issued to executive officers in 2020 were forfeited and concurrently replaced with cash incentives. Refer to “2020 Compensation Adjustments” below for more information. During the six months ended June 30, 2020, 1,665,153 shares of PSAs and PSUs subject to certain market-based vesting criteria were granted to executive officers under the Predecessor Equity Plan. These market-based awards were to cliff vest on the third anniversary of the grant date, however, on March 31, 2020, all of the PSAs and PSUs issued to executive officers in 2020 were forfeited and concurrently replaced with cash incentives. Refer to “2020 Compensation Adjustments” below for more information. The weighted average grant date fair value of the market-based awards that were to be settled in shares, as determined by the Monte Carlo valuation model, was $4.31 per share in 2020. The cash-settled component of such awards was recorded as a liability in the consolidated balance sheets and was remeasured at fair value using a Monte Carlo valuation model at the end of each reporting period. The Company recognized $1 million and $2 million in total stock-based compensation expense during the three and six months ended June 30, 2020, respectively. 2020 Compensation Adjustments. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 13. INCOME TAXES Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The provisions for income taxes for the three and six months ended June 30, 2021 (Successor) and June 30, 2020 (Predecessor) differ from the amounts that would be provided by applying the statutory U.S. federal income tax rate of 21% to pre-tax income primarily due to a full valuation allowance in effect on the Company’s U.S. deferred tax assets (“DTAs”), resulting in no U.S. income tax expense recognized for the periods presented, outside of a $1 million alternative minimum tax refund received during the first quarter of 2020, and an effective U.S. tax rate of 0%. Additionally, during the second quarter of 2020, $4 million of Canadian deferred tax expense became current. In assessing the realizability of DTAs, management considers whether it is more likely than not that some portion, or all, of the Company’s DTAs will not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of temporary differences, tax-planning strategies and projected future taxable income and results of operations. If the Company concludes that it is more likely than not that some portion, or all, of its DTAs will not be realized, the tax asset is reduced by a valuation allowance. The Company assesses the appropriateness of its valuation allowance on a quarterly basis. At June 30, 2021 and December 31, 2020 (Successor), the Company had a full valuation allowance on its DTAs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in various jurisdictions, permanent and temporary differences, and the likelihood of recovering DTAs generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. Internal Revenue Code (“IRC”) Section 382 addresses company ownership changes and specifically limits the utilization of certain deductions and other tax attributes on an annual basis following an ownership change. As a result of the chapter 11 reorganization and related transactions, the Successor experienced an ownership change within the meaning of IRC Section 382 on the Emergence Date. This ownership change subjected certain of the Company’s tax attributes to an IRC Section 382 limitation. The ownership changes and resulting annual limitation will result in the expiration of net operating loss carryforwards (“NOLs”) or other tax attributes otherwise available, with a corresponding decrease in the Company’s valuation allowance. The Company estimates that it has federal NOLs of $3.1 billion as of December 31, 2020, which are subject to limitation under IRC Section 382. The Company currently estimates that approximately $2.3 billion of these federal NOLs will expire before they are able to be used. The remaining non-expiring NOLs remain subject to a full valuation allowance. These estimates are subject to revision through the filing of the tax return for the year ending December 31, 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 14. EARNINGS PER SHARE The reconciliations between basic and diluted earnings (loss) per share are as follows (in thousands, except per share data): Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Basic and diluted loss per share Net loss $ (61,489) $ (574,315) Weighted average shares outstanding, basic and diluted 39,067 91,429 Loss per common share diluted $ (1.57) $ (6.28) Successor Predecessor Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Basic and diluted loss per share Net loss $ (62,435) $ (4,202,886) Weighted average shares outstanding, basic and diluted 38,883 91,409 Loss per common share diluted $ (1.61) $ (45.98) Successor During the Successor Period, the diluted earnings per share calculations exclude the effect of 4,837,376 common shares for Series A Warrants and 2,418,832 common shares for Series B Warrants that were out-of-the-money as of June 30, 2021, as well as 2,121,304 contingently issuable shares related to the settlement of general unsecured claims associated with the Chapter 11 Cases, as all necessary conditions had not been met to be considered dilutive shares as of June 30, 2021. Further, during the three and six months ended June 30, 2021, the Company had net losses and therefore the diluted earnings per share calculations for those periods exclude the anti-dilutive effect of (i) 345,272 shares of service-based awards and 195,854 shares of market-based awards for the three months ended June 30, 2021 and (ii) 314,524 shares of service-based awards and 202,643 shares of market-based awards for the six months ended June 30, 2021. Finally, the diluted earnings per share calculations for the three and six months ended June 30, 2021 also exclude 94,950 shares of market-based awards that did not meet the market-based vesting criteria as of June 30, 2021. Refer to the “Stock-Based Compensation” footnote for more information on the Company’s service-based and market-based awards. Predecessor During the three and six months ended June 30, 2020, the Company had net losses and therefore the diluted earnings per share calculations for those periods exclude the anti-dilutive effect of 270,058 and 342,299 shares, respectively, of service-based awards. In addition, the diluted earnings per share calculations for the three and six months ended June 30, 2020 exclude the effect of 28,505 and 31,805 common shares, respectively, for stock options that were out-of-the-money as of June 30, 2020. The Company had the option to settle conversions of the Convertible Senior Notes with cash, shares of common stock or any combination thereof. As the conversion value of the Convertible Senior Notes did not exceed the principal amount of the notes for any time during the Predecessor Period, there was no impact to diluted earnings per share or the related disclosures for the Predecessor periods presented. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Chapter 11 Cases — these claims remain subject to the jurisdiction of the Bankruptcy Court. To the extent that these Bankruptcy Court proceedings result in unsecured claims being allowed against the Company, such claims will be satisfied through the issuance of shares of the Successor’s common stock. As a result, the Company has not established material liabilities in connection with these claims. However, it is reasonably possible that as a result of the legal proceedings associated with the bankruptcy claims administration process or the matter detailed below, the Bankruptcy Court may rule, or it may be determined, that (i) the applicable contracts cannot be rejected, or (ii) a claim is not a general unsecured claim. Any of these outcomes could require the Company to make cash payments to settle those claims instead of or in addition to issuing shares of the Successor’s common stock, and such cash payments would result in losses in future periods. Arguello Inc. and Freeport-McMoRan Oil & Gas LLC . WOG had interests in federal oil and gas leases in the Point Arguello Unit located offshore in California. While those interests have expired, pursuant to certain related agreements (the “Point Arguello Agreements”), WOG may be subject to abandonment and decommissioning obligations. WOG and Whiting Petroleum Corporation rejected the related contracts pursuant to the Plan. On October 1, 2020, Arguello Inc. and Freeport-McMoRan Oil & Gas LLC, individually and in its capacity as the designated Point Arguello Unit operator (collectively, the “FMOG Entities”) filed with the Bankruptcy Court an application for allowance of certain administrative claims arguing the FMOG Entities were entitled to recover Whiting’s proportionate share of decommissioning obligations owed to the U.S. government through subrogation to the U.S. government’s economic rights. The FMOG Entities’ application alleged administrative claims of approximately $25 million for estimated decommissioning costs owed to the U.S. government, at least $60 million of estimated decommissioning costs owed to the FMOG Entities and other insignificant amounts. On September 14, 2020, the FMOG Entities also filed with the Bankruptcy Court proofs of claim for rejection damages to serve as an alternative course of action in the event that a court should determine that the FMOG Entities do not hold any applicable administrative claims. The U.S. government may also be able to bring claims against WOG directly for decommissioning costs. On February 18, 2021, WOG entered into a stipulation and agreed order with the United States Department of the Interior, Bureau of Safety & Environmental Enforcement (“BSEE”) pursuant to which the BSEE withdrew its proofs of claims against Whiting Petroleum Corporation and WOG and acknowledged their respective rights and obligations pursuant to the Plan. On March 26, 2021, the FMOG Entities withdrew their administrative claim for the recovery of Whiting’s proportionate share of costs incurred after August 31, 2020 to fulfill obligations owed to the U.S. Government on the basis of subrogation to the Government’s economic rights. The FMOG Entities continue to assert certain other administrative claims and have reserved the right to assert claims for the recovery of Whiting’s share of the decommissioning costs incurred after August 31, 2020 based on the theory of equitable subrogation. The Bankruptcy Court has not issued a ruling on the damages for rejection of the Point Arguello Agreements. Although WOG intends to vigorously defend this legal proceeding, if the FMOG Entities were to prevail on certain of their respective claims (including the reserved claims) on the merits or the U.S. government were to bring claims against WOG, Whiting could be liable for claims that must be paid or otherwise satisfied, including through an equity issuance, under and pursuant to the Plan. Litigation — The Company was involved in litigation related to a payment arrangement with a third party. In June 2020, the Company and the third party reached a settlement agreement resulting in the Company paying the third party a settlement amount of $14 million. The Company recorded $3 million of additional litigation settlement expense in general and administrative expenses in the condensed consolidated statements of operations for the three and six months ended June 30, 2020 (Predecessor) upon settling this litigation. Upon settlement, the Company agreed to indemnify a party involved in the litigation for any further claims resulting from these matters up to $25 million. This indemnity will terminate on the date on which the statute of limitations for the relevant claims expires. The Company does not expect to pay additional amounts to this party as a result of this indemnity and thus has not recorded any liability related to the indemnity as of June 30, 2021 (Successor). |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS Williston Basin Acquisition — Denver-Julesburg Basin Divestiture — |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION [Abstract] | |
Voluntary Reorganization under Chapter 11 of the Bankruptcy Code | Voluntary Reorganization under Chapter 11 of the Bankruptcy Code Upon emergence, the Company adopted fresh start accounting in accordance with FASB ASC Topic 852 – Reorganizations (“ASC 852”), which specifies the accounting and financial reporting requirements for entities reorganizing through chapter 11 bankruptcy proceedings. The application of fresh start accounting resulted in a new basis of accounting and the Company becoming a new entity for financial reporting purposes. As a result of the implementation of the Plan and the application of fresh start accounting, the consolidated financial statements after the Emergence Date are not comparable to the consolidated financial statements before that date and the historical financial statements on or before the Emergence Date are not a reliable indicator of the Company’s financial condition and results of operations for any period after its adoption of fresh start accounting. Refer to the “Fresh Start Accounting” footnote for more information. References to “Successor” refer to the Company and its financial position and results of operations after the Emergence Date. References to “Predecessor” refer to the Company and its financial position and results of operations on or before the Emergence Date. References to “Successor Period” and “Successor YTD Period” refer to the three and six months ended June 30, 2021, respectively. References to “Predecessor Period” and “Predecessor YTD Period” refer to the three and six months ended June 30, 2020, respectively. During the Predecessor YTD Period, the Company applied ASC 852 in preparing the condensed consolidated financial statements, which requires distinguishing transactions associated with the reorganization separate from activities related to the ongoing operations of the business. Accordingly, certain expenses, realized gains and losses and provisions for losses that were realized or incurred during the Chapter 11 Cases, including adjustments to the carrying value of certain indebtedness, were recorded as reorganization items, net in the condensed consolidated statements of operations for the Predecessor periods. |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements for the period ended December 31, 2020. Except as disclosed herein, there have been no material changes to the information disclosed in the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the period ending December 31, 2020. |
Reclassifications | Reclassifications — |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash — Restricted cash as of June 30, 2021 and December 31, 2020 consist of funds remaining in a professional fee escrow account that were reserved to pay certain professional fees upon emergence from the Chapter 11 Cases. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets and statements of cash flows (in thousands): Successor June 30, December 31, 2021 2020 Cash and cash equivalents $ 16,652 $ 25,607 Restricted cash 2,401 2,760 Total cash, cash equivalents and restricted cash $ 19,053 $ 28,367 |
Accounts Receivable Trade | Accounts Receivable Trade — The Company routinely evaluates expected credit losses for all material trade and other receivables to determine if an allowance for credit losses is warranted. Expected credit losses are estimated based on (i) historic loss experience for pools of receivable balances with similar characteristics, (ii) the length of time balances have been outstanding and (iii) the economic status of each counterparty. These loss estimates are then adjusted for current and expected future economic conditions, which may include an assessment of the probability of non-payment, financial distress or expected future commodity prices and the impact that any current or future conditions could have on a counterparty’s credit quality and liquidity. As of June 30, 2021 and December 31, 2020 (Successor), the Company had immaterial allowances for credit losses. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
BASIS OF PRESENTATION [Abstract] | |
Reconciliation Of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets and statements of cash flows (in thousands): Successor June 30, December 31, 2021 2020 Cash and cash equivalents $ 16,652 $ 25,607 Restricted cash 2,401 2,760 Total cash, cash equivalents and restricted cash $ 19,053 $ 28,367 |
FRESH START ACCOUNTING (Tables)
FRESH START ACCOUNTING (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FRESH START ACCOUNTING [Abstract] | |
Schedule of components of reorganization items | The following table summarizes the components of reorganization items, net for the three and six months ended June 30, 2020 (in thousands): Predecessor Three and Six Months Ended June 30, 2020 Legal and professional advisory fees $ 26,668 Write-off of unamortized debt issuance costs and premium (1) 15,145 Total reorganization items, net $ 41,813 (1) As a result of the Chapter 11 Cases and the adoption of ASC 852, the Company wrote off all unamortized premium and issuance cost balances related to its senior notes on the Petition Date. |
OIL AND GAS PROPERTIES (Tables)
OIL AND GAS PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
OIL AND GAS PROPERTIES [Abstract] | |
Net capitalized costs related to the Company's oil and gas producing activities | Net capitalized costs related to the Company’s oil and gas producing activities at June 30, 2021 and December 31, 2020 are as follows (in thousands): Successor June 30, December 31, 2021 2020 Proved oil and gas properties $ 1,781,723 $ 1,701,163 Unproved leasehold costs 101,477 105,073 Wells and facilities in progress 46,350 6,365 Total oil and gas properties, successful efforts method 1,929,550 1,812,601 Accumulated depletion (170,435) (71,064) Oil and gas properties, net $ 1,759,115 $ 1,741,537 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ASSET RETIREMENT OBLIGATIONS [Abstract] | |
Schedule of reconciliation of the Company's asset retirement obligations | Asset retirement obligation at January 1, 2021 (Successor) $ 98,130 Additional liability incurred 773 Revisions to estimated cash flows 8,354 Accretion expense 4,412 Obligations on sold properties (9,654) Liabilities settled (2,492) Asset retirement obligation at June 30, 2021 (Successor) $ 99,523 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | |
Derivative instruments | The table below details the Successor’s swap and collar derivatives entered into to hedge forecasted crude oil, NGL and natural gas production revenues as of June 30, 2021 (Successor). Weighted Average Settlement Period Index Derivative Instrument Total Volumes Units Swap Price Floor Ceiling Crude Oil 2021 NYMEX WTI Fixed Price Swaps 3,588,000 Bbl $45.40 - - 2021 NYMEX WTI Two-way Collars 3,162,000 Bbl - $41.64 $50.50 Q1 2022 NYMEX WTI Fixed Price Swaps 630,000 Bbl $54.30 - - 2022 NYMEX WTI Two-way Collars 9,559,000 Bbl - $43.22 $53.70 Q1-Q2 2023 NYMEX WTI Two-way Collars 3,259,500 Bbl - $46.79 $59.37 Total 20,198,500 Crude Oil Differentials (1) 2021 UHC Clearbrook to NYMEX Fixed Price Swaps 76,500 Bbl -$1.95 - - Total 76,500 Natural Gas 2021 NYMEX Henry Hub Fixed Price Swaps 8,970,000 MMBtu $2.81 - - 2021 NYMEX Henry Hub Two-way Collars 5,520,000 MMBtu - $2.60 $2.79 Q1-Q3 2022 NYMEX Henry Hub Fixed Price Swaps 5,259,000 MMBtu $2.68 - - 2022 NYMEX Henry Hub Two-way Collars 10,720,000 MMBtu - $2.35 $2.85 Q1-Q2 2023 NYMEX Henry Hub Two-way Collars 4,975,000 MMBtu - $2.37 $2.91 Total 35,444,000 Natural Gas Basis (2) 2021 NNG Ventura to NYMEX Fixed Price Swaps 3,680,000 MMBtu -$0.18 - - Q1-Q2 2022 NNG Ventura to NYMEX Fixed Price Swaps 3,530,000 MMBtu $0.14 - - Q1-Q2 2023 NNG Ventura to NYMEX Fixed Price Swaps 4,740,000 MMBtu $0.07 - - Total 11,950,000 NGL - Propane 2021 Mont Belvieu Fixed Price Swaps 19,320,000 Gallons $0.78 - - Q1 2022 Mont Belvieu Fixed Price Swaps 3,780,000 Gallons $0.81 - - Total 23,100,000 (1) The weighted average price associated with the crude oil differential swaps shown in the table above represents the average fixed differential to NYMEX as stated in the related contracts, which is compared to the NE2 Canadian Monthly Index for UHC Clearbrook (“UHC Clearbrook”) for each period. If NYMEX combined with the fixed differential as stated in each contract is higher than the UHC Clearbrook index price at any settlement date, the Company receives the difference. Conversely, if the UHC Clearbrook index price is higher than NYMEX combined with the fixed differential, the Company pays the difference. (2) The weighted average price associated with the natural gas basis swaps shown in the table above represents the average fixed differential to NYMEX as stated in the related contracts, which is compared to the Northern Natural Gas Ventura Index (“NNG Ventura”) for each period. If NYMEX combined with the fixed differential as stated in each contract is higher than the NNG Ventura index price at any settlement date, the Company receives the difference. Conversely, if the NNG Ventura index price is higher than NYMEX combined with the fixed differential, the Company pays the difference. |
Location and fair value of derivative instruments | June 30, 2021 (1) Net Gross Recognized Recognized Gross Fair Value Not Designated as Assets/ Amounts Assets/ ASC 815 Hedges Balance Sheet Classification Liabilities Offset Liabilities Derivative assets Commodity contracts - current Prepaid expenses and other $ 7,001 $ (7,001) $ - Commodity contracts - non-current Other long-term assets 21,324 (21,324) - Total derivative assets $ 28,325 $ (28,325) $ - Derivative liabilities Commodity contracts - current Derivative liabilities $ 272,131 $ (7,001) $ 265,130 Commodity contracts - non-current Long-term derivative liabilities 110,678 (21,324) 89,354 Total derivative liabilities $ 382,809 $ (28,325) $ 354,484 December 31, 2020 (1) Net Gross Recognized Recognized Gross Fair Value Not Designated as Assets/ Amounts Assets/ ASC 815 Hedges Balance Sheet Classification Liabilities Offset Liabilities Derivative assets Commodity contracts - current Prepaid expenses and other $ 14,287 $ (14,287) $ - Commodity contracts - non-current Other long-term assets 19,991 (19,991) - Total derivative assets $ 34,278 $ (34,278) $ - Derivative liabilities Commodity contracts - current Derivative liabilities $ 63,772 $ (14,287) $ 49,485 Commodity contracts - non-current Long-term derivative liabilities 29,741 (19,991) 9,750 Total derivative liabilities $ 93,513 $ (34,278) $ 59,235 (1) All of the counterparties to the Company’s financial derivative contracts subject to master netting arrangements are lenders under the Credit Agreement, which eliminates the need to post or receive collateral associated with its derivative positions. Therefore, columns for cash collateral pledged or received have not been presented in these tables. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Fair value assets and liabilities measured on a recurring basis | Total Fair Value Level 1 Level 2 Level 3 June 30, 2021 Financial Liabilities Commodity derivatives – current $ - $ 265,130 $ - $ 265,130 Commodity derivatives – non-current - 89,354 - 89,354 Total financial liabilities $ - $ 354,484 $ - $ 354,484 Total Fair Value Level 1 Level 2 Level 3 December 31, 2020 Financial Liabilities Commodity derivatives – current $ - $ 49,485 $ - $ 49,485 Commodity derivatives – non-current - 9,750 - 9,750 Total financial liabilities $ - $ 59,235 $ - $ 59,235 |
Non-financial assets and liabilities measured at fair value on a nonrecurring basis | Predecessor Net Carrying Value as of Loss (Before Tax) March 31, Fair Value Measurements Using Three Months Ended 2020 Level 1 Level 2 Level 3 March 31, 2020 Proved property (1) $ 816,234 $ - $ - $ 816,234 $ 3,732,096 (1) During the first quarter of 2020, certain proved oil and gas properties across the Company’s Williston Basin resource play with a previous carrying amount of $4.5 billion were written down to their fair value as of March 31, 2020 of $816 million, resulting in a non-cash impairment charge of $3.7 billion, which was recorded within exploration and impairment expense. These impaired properties were written down due to a reduction in anticipated future cash flows primarily driven by an expectation of sustained depressed oil prices and a resultant decline in future development plans for the properties as of March 31, 2020. Predecessor Net Carrying Value as of Loss (Before Tax) June 30, Fair Value Measurements Using Six Months Ended 2020 Level 1 Level 2 Level 3 June 30, 2020 Proved property (2) $ 85,418 $ - $ - $ 85,418 $ 409,079 (2) During the second quarter of 2020, other proved oil and gas properties in the Company’s Williston Basin resource play with a previous carrying amount of $494 million were written down to their fair value as of June 30, 2020 of $85 million, resulting in a non-cash impairment charge of $409 million, which was recorded within exploration and impairment expense. These impaired properties were written down due to a reduction in anticipated future cash flows primarily driven by an expectation of sustained depressed oil prices and a resultant decline in future development plans for the properties as of June 30, 2020. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
REVENUE RECOGNITION [Abstract] | |
Summary of revenue disaggregation | Successor Predecessor OPERATING REVENUES Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Oil sales $ 308,417 $ 91,904 NGL and natural gas sales (1) 41,566 (304) Oil, NGL and natural gas sales 349,983 91,600 Purchased gas sales 1,663 - Total operating revenues $ 351,646 $ 91,600 (1) Negative NGL and natural gas sales revenue during the three months ended June 30, 2020 was a result of third-party transportation, gathering and processing costs exceeding the average price realized for certain NGL and natural gas volumes sold during the period. Successor Predecessor Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 OPERATING REVENUES Oil sales $ 565,126 $ 323,849 NGL and natural gas sales 89,536 12,597 Oil, NGL and natural gas sales 654,662 336,446 Purchased gas sales 4,375 - Total operating revenues $ 659,037 $ 336,446 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
STOCK-BASED COMPENSATION [Abstract] | |
Assumption for valuing market based awards | 2020 2021 RSUs PSUs Number of simulations 100,000 500,000 Expected volatility 40% 81% Risk-free interest rate 0.66% 0.17% Dividend yield - - |
Summary of nonvested shares | Number of Awards Weighted Average Service ‑ Based Market-Based Market-Based Grant Date RSUs RSUs PSUs Fair Value Nonvested awards, January 1 89,021 189,900 - $ 10.03 Granted 499,460 - 232,150 25.99 Vested (36,959) (94,950) - 9.61 Forfeited (4,004) - - 22.46 Nonvested awards, June 30 547,518 94,950 232,150 $ 23.38 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE [Abstract] | |
Reconciliations between basic and diluted earnings per share | The reconciliations between basic and diluted earnings (loss) per share are as follows (in thousands, except per share data): Successor Predecessor Three Months Ended June 30, 2021 Three Months Ended June 30, 2020 Basic and diluted loss per share Net loss $ (61,489) $ (574,315) Weighted average shares outstanding, basic and diluted 39,067 91,429 Loss per common share diluted $ (1.57) $ (6.28) Successor Predecessor Six Months Ended June 30, 2021 Six Months Ended June 30, 2020 Basic and diluted loss per share Net loss $ (62,435) $ (4,202,886) Weighted average shares outstanding, basic and diluted 38,883 91,409 Loss per common share diluted $ (1.61) $ (45.98) |
BASIS OF PRESENTATION (Reconcil
BASIS OF PRESENTATION (Reconciliation) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
BASIS OF PRESENTATION [Abstract] | ||||
Cash and cash equivalents | $ 16,652 | $ 25,607 | ||
Restricted cash | 2,401 | 2,760 | ||
Total cash, cash equivalents and restricted cash | $ 19,053 | $ 28,367 | $ 518,875 | $ 8,652 |
CHAPTER 11 EMERGENCE (Details)
CHAPTER 11 EMERGENCE (Details) - USD ($) $ in Millions | Sep. 01, 2020 | Aug. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Apr. 30, 2021 |
Chapter 11 Cases | ||||||
Financial Designation, Predecessor and Successor [Fixed List] | Successor | Predecessor | ||||
Common stock issued | 38,051,125 | |||||
Number of shares authorized upon shareholder's approval | 4,035,885 | |||||
Interest expense not recognized | $ 34 | |||||
Credit Agreement [Member] | ||||||
Chapter 11 Cases | ||||||
Maximum borrowing capacity of credit facility | $ 750 | $ 750 | $ 750 | |||
Additional contingent borrowings | $ 750 | |||||
Series A [Member] | ||||||
Chapter 11 Cases | ||||||
Warrants outstanding (in shares) | 4,837,387 | |||||
Series B [Member] | ||||||
Chapter 11 Cases | ||||||
Warrants outstanding (in shares) | 2,418,840 | |||||
Senior Notes Holders [Member] | ||||||
Chapter 11 Cases | ||||||
Common stock issued | 36,817,630 | |||||
Existing Stockholders [Member] | ||||||
Chapter 11 Cases | ||||||
Common stock issued | 1,233,495 | |||||
General Unsecured Claimants [Member] | ||||||
Chapter 11 Cases | ||||||
Common stock issued | 948,897 | |||||
Reserved for future issuance (in shares) | 3,070,201 | 2,121,304 |
FRESH START ACCOUNTING - Reorga
FRESH START ACCOUNTING - Reorganization Items, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
FRESH START ACCOUNTING [Abstract] | ||
Legal and professional advisory fees | $ 26,668 | |
Write-off of unamortized debt issuance costs and premium | 15,145 | |
Total reorganization items, net | $ 41,813 | $ 41,813 |
OIL AND GAS PROPERTIES (Details
OIL AND GAS PROPERTIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Oil and gas properties | ||||
Proved oil and gas properties | $ 1,781,723 | $ 1,781,723 | $ 1,701,163 | |
Unproved leasehold costs | 101,477 | 101,477 | 105,073 | |
Wells and facilities in progress | 46,350 | 46,350 | 6,365 | |
Total oil and gas properties, successful efforts method | 1,929,550 | 1,929,550 | 1,812,601 | |
Accumulated depletion | (170,435) | (170,435) | (71,064) | |
Oil and gas properties, net | 1,759,115 | 1,759,115 | $ 1,741,537 | |
Unproved Properties [Member] | ||||
Oil and gas properties | ||||
Impairment of properties | $ 1,000 | $ 2,000 | $ 12,000 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - McKenzie, Mountrail And Williams Counties [Member] $ in Millions | Jan. 09, 2020USD ($)item |
Dispositions | |
Number of well sold | item | 30 |
Proceeds from sale of properties | $ | $ 25 |
LONG-TERM DEBT (Schedule of lon
LONG-TERM DEBT (Schedule of long-term debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 115,000 | $ 360,000 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 115,000 | $ 360,000 |
LONG-TERM DEBT (Credit agreemen
LONG-TERM DEBT (Credit agreement) (Details) - USD ($) $ in Millions | Sep. 01, 2020 | Jun. 30, 2021 | Apr. 30, 2021 |
Credit Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity of credit facility | $ 750 | $ 750 | $ 750 |
Borrowing capacity of credit facility, net of letter of credit | 633 | ||
Outstanding borrowings under credit facility | 115 | ||
Letters of credit borrowings outstanding | $ 2 | ||
Additional contingent borrowings | 750 | ||
Maximum cash balance prior to mandatory repayment | $ 75 | ||
Commitment fees (as a percent) | 0.50% | ||
Weighted average interest rate | 4.10% | ||
Debt threshold, dividend payments and distributions (as a percent) | 20.00% | ||
Leverage ratio | 2 | ||
Current year production covered by hedges (as a percent) | 65.00% | ||
Maximum percentage of production from proved reserves (as a percent) | 85.00% | ||
Subsequent year production covered by hedges (as a percent) | 35.00% | ||
Minimum consolidated current assets to consolidated current liabilities ratio | 1 | ||
Total debt to EBITDAX ratio | 3.5 | ||
Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis points added to reference rate (as a percent) | 1.75% | ||
Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis points added to reference rate (as a percent) | 2.75% | ||
Credit Agreement [Member] | Fed Funds Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis points added to reference rate (as a percent) | 0.50% | ||
Credit Agreement [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis points added to reference rate (as a percent) | 1.00% | ||
Credit Agreement [Member] | Eurodollar [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Basis points added to reference rate (as a percent) | 2.75% | ||
Credit Agreement [Member] | Eurodollar [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Basis points added to reference rate (as a percent) | 3.75% | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity of credit facility | $ 50 | ||
Borrowing capacity of credit facility, net of letter of credit | $ 48 |
LONG-TERM DEBT (Senior notes) (
LONG-TERM DEBT (Senior notes) (Details) - USD ($) $ in Thousands | Sep. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Aug. 31, 2020 |
Debt Instrument [Line Items] | |||||
Common stock issued in settlement of bankruptcy claims (in shares) | 38,051,125 | ||||
Gain (loss) on extinguishment of debt | $ 25,883 | ||||
Adjustment to equity component of 2020 Convertible Senior Notes | $ 3,461 | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Common stock issued in settlement of bankruptcy claims (in shares) | 36,817,630 | ||||
5.75% Senior Notes due 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes Issued | $ 774,000 | ||||
Interest rate on debt instrument (as a percent) | 5.75% | ||||
6.25% Senior Notes due 2023 [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes Issued | $ 408,000 | ||||
Interest rate on debt instrument (as a percent) | 6.25% | ||||
6.625% Senior Notes due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes Issued | $ 1,000,000 | ||||
Interest rate on debt instrument (as a percent) | 6.625% | ||||
1.25% Convertible Senior Notes due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes Issued | $ 187,000 | ||||
Interest rate on debt instrument (as a percent) | 1.25% | 1.25% | |||
Notes repurchased, principal amount | $ 73,000 | $ 73,000 | |||
Principal amount of debt redeemed (as a percent) | 72.50% | ||||
Gain (loss) on extinguishment of debt | $ 23,000 | ||||
Repurchase of notes | 53,000 | ||||
Adjustment to equity component of 2020 Convertible Senior Notes | 3,000 | ||||
Non cash charges | $ 200 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Asset Retirement Obligations | ||
Asset retirement obligations, current portion | $ 6,000 | $ 6,000 |
Reconciliation of the Company's asset retirement obligations | ||
Balance at the beginning of the period | 98,130 | |
Additional liability incurred | 773 | |
Revisions to estimated cash flows | 8,354 | |
Accretion expense | 4,412 | |
Obligations on sold properties | (9,654) | |
Liabilities settled | (2,492) | |
Balance at the end of the period | $ 99,523 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Instruments) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020USD ($) | Jun. 30, 2021USD ($)item$ / item | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)item$ / item | Jun. 30, 2020USD ($) | |
Derivative Financial Instruments [Line Items] | |||||
Derivative settlement | $ | $ 145,000 | ||||
Derivative gain (loss), net | $ | $ 13,000 | $ (255,409) | $ (6,632) | $ (402,102) | $ 224,739 |
Derivative instrument proceeds held in escrow | $ | $ 23,000 | $ 23,000 | |||
Crude Oil [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 20,198,500 | 20,198,500 | |||
Crude Oil [Member] | 2021 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 3,588,000 | 3,588,000 | |||
Swap Price (in dollars per unit) | 45.40 | 45.40 | |||
Crude Oil [Member] | 2021 [Member] | Two-way Collars [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 3,162,000 | 3,162,000 | |||
Floor Price (in dollars per unit) | 41.64 | 41.64 | |||
Ceiling Price (in dollars per unit) | 50.50 | 50.50 | |||
Crude Oil [Member] | 2022 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 630,000 | 630,000 | |||
Swap Price (in dollars per unit) | 54.30 | 54.30 | |||
Crude Oil [Member] | 2022 [Member] | Two-way Collars [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 9,559,000 | 9,559,000 | |||
Floor Price (in dollars per unit) | 43.22 | 43.22 | |||
Ceiling Price (in dollars per unit) | 53.70 | 53.70 | |||
Crude Oil [Member] | 2023 [Member] | Two-way Collars [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 3,259,500 | 3,259,500 | |||
Floor Price (in dollars per unit) | 46.79 | 46.79 | |||
Ceiling Price (in dollars per unit) | 59.37 | 59.37 | |||
Crude Oil Differentials [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 76,500 | 76,500 | |||
Crude Oil Differentials [Member] | 2021 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 76,500 | 76,500 | |||
Swap Price (in dollars per unit) | 1.95 | 1.95 | |||
Natural Gas [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 35,444,000 | 35,444,000 | |||
Natural Gas [Member] | 2021 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 8,970,000 | 8,970,000 | |||
Swap Price (in dollars per unit) | 2.81 | 2.81 | |||
Natural Gas [Member] | 2021 [Member] | Two-way Collars [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 5,520,000 | 5,520,000 | |||
Floor Price (in dollars per unit) | 2.60 | 2.60 | |||
Ceiling Price (in dollars per unit) | 2.79 | 2.79 | |||
Natural Gas [Member] | 2022 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 5,259,000 | 5,259,000 | |||
Swap Price (in dollars per unit) | 2.68 | 2.68 | |||
Natural Gas [Member] | 2022 [Member] | Two-way Collars [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 10,720,000 | 10,720,000 | |||
Floor Price (in dollars per unit) | 2.35 | 2.35 | |||
Ceiling Price (in dollars per unit) | 2.85 | 2.85 | |||
Natural Gas [Member] | 2023 [Member] | Two-way Collars [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 4,975,000 | 4,975,000 | |||
Floor Price (in dollars per unit) | 2.37 | 2.37 | |||
Ceiling Price (in dollars per unit) | 2.91 | 2.91 | |||
Natural Gas Basis [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 11,950,000 | 11,950,000 | |||
Natural Gas Basis [Member] | 2021 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 3,680,000 | 3,680,000 | |||
Swap Price (in dollars per unit) | 0.18 | 0.18 | |||
Natural Gas Basis [Member] | 2022 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 3,530,000 | 3,530,000 | |||
Swap Price (in dollars per unit) | 0.14 | 0.14 | |||
Natural Gas Basis [Member] | 2023 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 4,740,000 | 4,740,000 | |||
Swap Price (in dollars per unit) | 0.07 | 0.07 | |||
NGL - Propane [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 23,100,000 | 23,100,000 | |||
NGL - Propane [Member] | 2021 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 19,320,000 | 19,320,000 | |||
Swap Price (in dollars per unit) | 0.78 | 0.78 | |||
NGL - Propane [Member] | 2022 [Member] | Fixed Price Swaps [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Aggregate notional amount of price risk derivatives | item | 3,780,000 | 3,780,000 | |||
Swap Price (in dollars per unit) | 0.81 | 0.81 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (Asset location) (Details) - Commodity contracts [Member] - Not Designated as ASC 815 Hedges [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Gross amounts of derivative assets and gross amounts offset [Line Items] | ||
Gross Amounts of Recognized Assets | $ 28,325 | $ 34,278 |
Gross Amounts Offset | (28,325) | (34,278) |
Prepaid Expenses and Other [Member] | ||
Gross amounts of derivative assets and gross amounts offset [Line Items] | ||
Gross Amounts of Recognized Assets | 7,001 | 14,287 |
Gross Amounts Offset | (7,001) | (14,287) |
Other Long Term Assets [Member] | ||
Gross amounts of derivative assets and gross amounts offset [Line Items] | ||
Gross Amounts of Recognized Assets | 21,324 | 19,991 |
Gross Amounts Offset | $ (21,324) | $ (19,991) |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS (Liability location) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Gross amounts of derivative liabilities and gross amounts offset [Line Items] | ||
Total financial liabilities | $ 354,484 | $ 59,235 |
Commodity contracts [Member] | Not Designated as ASC 815 Hedges [Member] | ||
Gross amounts of derivative liabilities and gross amounts offset [Line Items] | ||
Gross Amounts of Recognized Liabilities | 382,809 | 93,513 |
Gross Amounts Offset | (28,325) | (34,278) |
Total financial liabilities | 354,484 | 59,235 |
Commodity contracts [Member] | Accrued liabilities and other [Member] | Not Designated as ASC 815 Hedges [Member] | ||
Gross amounts of derivative liabilities and gross amounts offset [Line Items] | ||
Gross Amounts of Recognized Liabilities | 272,131 | 63,772 |
Gross Amounts Offset | (7,001) | (14,287) |
Total financial liabilities | 265,130 | 49,485 |
Commodity contracts [Member] | Long-term Derivative Liabilities [Member] | Not Designated as ASC 815 Hedges [Member] | ||
Gross amounts of derivative liabilities and gross amounts offset [Line Items] | ||
Gross Amounts of Recognized Liabilities | 110,678 | 29,741 |
Gross Amounts Offset | (21,324) | (19,991) |
Total financial liabilities | $ 89,354 | $ 9,750 |
FAIR VALUE MEASUREMENTS (Recurr
FAIR VALUE MEASUREMENTS (Recurring basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Liabilities | ||
Total financial liabilities | $ 354,484 | $ 59,235 |
Commodity contracts [Member] | ||
Financial Liabilities | ||
Financial liabilities - current | 265,130 | 49,485 |
Financial liabilities - non-current | 89,354 | 9,750 |
Level 2 [Member] | ||
Financial Liabilities | ||
Total financial liabilities | 354,484 | 59,235 |
Level 2 [Member] | Commodity contracts [Member] | ||
Financial Liabilities | ||
Financial liabilities - current | 265,130 | 49,485 |
Financial liabilities - non-current | $ 89,354 | $ 9,750 |
FAIR VALUE MEASUREMENTS (Non-re
FAIR VALUE MEASUREMENTS (Non-recurring) (Details) - Proved Properties [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property | $ 85,000 | $ 494,000 | $ 85,000 | |
Non-recurring assets at fair value, impairment loss (before tax) | $ 3,700,000 | 409,000 | ||
Measurement Input, Discount Rate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Value of measurement input | 17.00% | 16.00% | ||
Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property | $ 85,418 | $ 816,234 | 85,418 | $ 4,500,000 |
Non-recurring assets at fair value, impairment loss (before tax) | 3,732,096 | 409,079 | ||
Nonrecurring [Member] | Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proved property | $ 85,418 | $ 816,234 | $ 85,418 |
REVENUE RECOGNITION (Revenue Re
REVENUE RECOGNITION (Revenue Reclassification) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Sales | $ 351,646 | $ 91,600 | $ 659,037 | $ 336,446 |
Oil, NGL and natural gas sales [Member] | ||||
Revenue | ||||
Sales | 349,983 | 91,600 | 654,662 | 336,446 |
Oil sales [Member] | ||||
Revenue | ||||
Sales | 308,417 | 91,904 | 565,126 | 323,849 |
NGL and natural gas sales [Member] | ||||
Revenue | ||||
Sales | 41,566 | $ (304) | 89,536 | $ 12,597 |
Purchased gas sales [Member] | ||||
Revenue | ||||
Sales | $ 1,663 | $ 4,375 |
REVENUE RECOGNITION (Narrative)
REVENUE RECOGNITION (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue | ||
Receivable balance | $ 132 | $ 88 |
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true | |
Minimum [Member] | ||
Revenue | ||
Payment received for product sales, period | 1 month | |
Maximum [Member] | ||
Revenue | ||
Payment received for product sales, period | 3 months |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | Sep. 01, 2020 | Feb. 28, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||||
Capital stock, shares authorized | 550,000,000 | |||
Common stock, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 50,000,000 | |||
Preferred Stock, par value (in dollars per share) | $ 0.001 | |||
Common stock issued in settlement of bankruptcy claims (in shares) | 38,051,125 | |||
General Unsecured Claimants [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock issued in settlement of bankruptcy claims (in shares) | 948,897 | |||
Bankruptcy claims, amount paid | $ 2 | |||
Reserved for future issuance (in shares) | 3,070,201 | 2,121,304 | ||
Series A [Member] | ||||
Class of Stock [Line Items] | ||||
Warrants outstanding (in shares) | 4,837,387 | |||
Warrant exercise price (in dollars per share) | $ 73.44 | |||
Series A [Member] | Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Warrants outstanding (in shares) | 4,837,821 | |||
Series B [Member] | ||||
Class of Stock [Line Items] | ||||
Warrants outstanding (in shares) | 2,418,840 | |||
Warrant exercise price (in dollars per share) | $ 83.45 | |||
Series B [Member] | Maximum [Member] | ||||
Class of Stock [Line Items] | ||||
Warrants outstanding (in shares) | 2,418,910 |
STOCK-BASED COMPENSATION (Narra
STOCK-BASED COMPENSATION (Narrative) (Details) | Sep. 01, 2020USD ($)shares | Jul. 31, 2021D$ / shares | Sep. 30, 2020D$ / sharesshares | Oct. 31, 2020$ / sharesshares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)Ditem$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Aug. 31, 2020USD ($) |
Share-based compensation disclosures | ||||||||||
Common stock issued in settlement of bankruptcy claims (in shares) | 38,051,125 | |||||||||
Number of shares authorized upon shareholder's approval | 4,035,885 | |||||||||
Maximum fair value non-employee director grant | $ | $ 500,000 | |||||||||
Number of shares available for grant | 3,029,358 | 3,029,358 | ||||||||
Granted (in dollars per share) | $ / shares | $ 25.99 | |||||||||
Stock compensation expense | $ | $ 2,000,000 | $ 1,000,000 | $ 5,000,000 | $ 2,000,000 | ||||||
Service-based [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 53,198 | |||||||||
Granted (in dollars per share) | $ / shares | $ 4.94 | |||||||||
Service-based [Member] | Share-based Payment Arrangement, Employee [Member] | Vesting Period, Scenario 1 [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (service) period | 2 years | |||||||||
Service-based [Member] | Share-based Payment Arrangement, Employee [Member] | Vesting Period, Scenario 2 [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (service) period | 3 years | |||||||||
Service-based [Member] | Share-based Payment Arrangement, Employee [Member] | Vesting Period, Scenario 3 [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (service) period | 5 years | |||||||||
Service-based [Member] | Share-based Payment Arrangement, Nonemployee [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (service) period | 1 year | |||||||||
Cash Retention Incentives [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Replacement award fair value | $ | $ 12,000,000 | |||||||||
Amortization of fair value of cash incentives | $ | $ 7,000,000 | $ 7,000,000 | ||||||||
Cash bonus paid taxes | $ | $ 9,000,000 | |||||||||
Restricted Stock Units [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 1,616,504 | |||||||||
Service Based Restricted Stock [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 89,021 | 499,460 | ||||||||
Granted (in dollars per share) | $ / shares | $ 17.47 | $ 23.74 | ||||||||
Service Based Restricted Stock [Member] | Share-based Payment Arrangement, Employee [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 358,123 | |||||||||
Service Based Restricted Stock [Member] | Share-based Payment Arrangement, Employee [Member] | Minimum [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (service) period | 2 years | |||||||||
Service Based Restricted Stock [Member] | Share-based Payment Arrangement, Employee [Member] | Maximum [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (service) period | 3 years | |||||||||
Service Based Restricted Stock [Member] | Executive officers [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 117,607 | |||||||||
Service Based Restricted Stock [Member] | Director [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (service) period | 1 year | |||||||||
Granted (in shares) | 23,730 | |||||||||
Market Based Restricted Stock [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 189,900 | |||||||||
Granted (in dollars per share) | $ / shares | $ 6.54 | |||||||||
Threshold consecutive trading day | D | 20 | 20 | 20 | |||||||
Market Based Restricted Stock [Member] | Minimum [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Weighted average period over which cost will be recognized | 1 year 9 months 18 days | |||||||||
Market Based Restricted Stock [Member] | Maximum [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Weighted average period over which cost will be recognized | 3 years 9 months 18 days | |||||||||
Market Based Restricted Stock [Member] | Share-based Payment Arrangement, Tranche One [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (as a percent) | 50.00% | 50.00% | ||||||||
Share price (in dollars per share) | $ / shares | $ 32.57 | $ 32.57 | $ 32.57 | |||||||
Market Based Restricted Stock [Member] | Share-based Payment Arrangement, Tranche Two [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (as a percent) | 25.00% | 25.00% | ||||||||
Share price (in dollars per share) | $ / shares | $ 48.86 | $ 48.86 | ||||||||
Market Based Restricted Stock [Member] | Share-based Payment Arrangement, Tranche Three [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (as a percent) | 25.00% | |||||||||
Share price (in dollars per share) | $ / shares | $ 65.14 | |||||||||
PSAs and PSUs [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Vesting (service) period | 3 years | |||||||||
Granted (in shares) | 1,665,153 | |||||||||
Granted (in dollars per share) | $ / shares | $ 4.31 | |||||||||
PSU [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 232,150 | |||||||||
PSU [Member] | Minimum [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Possible multiplier of shares earned | item | 0 | |||||||||
PSU [Member] | Maximum [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Possible multiplier of shares earned | item | 2 | |||||||||
PSU [Member] | ATSR PSUs [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 116,075 | |||||||||
Granted (in dollars per share) | $ / shares | $ 29.32 | |||||||||
PSU [Member] | RTSR PSUs [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Granted (in shares) | 116,075 | |||||||||
Granted (in dollars per share) | $ / shares | $ 32.33 | |||||||||
Existing Stockholders [Member] | ||||||||||
Share-based compensation disclosures | ||||||||||
Common stock issued in settlement of bankruptcy claims (in shares) | 1,233,495 |
STOCK-BASED COMPENSATION (Assum
STOCK-BASED COMPENSATION (Assumptions) (Details) - item | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of simulations | 100,000 | |
Expected volatility (as a percent) | 40.00% | |
Risk-free interest rate (as a percent) | 0.66% | |
Dividend yield (as a percent) | 0.00% | |
PSU [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of simulations | 500,000 | |
Expected volatility (as a percent) | 81.00% | |
Risk-free interest rate (as a percent) | 0.17% | |
Dividend yield (as a percent) | 0.00% |
STOCK-BASED COMPENSATION (Nonve
STOCK-BASED COMPENSATION (Nonvested awards) (Details) - $ / shares | 1 Months Ended | 2 Months Ended | 6 Months Ended |
Sep. 30, 2020 | Oct. 31, 2020 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance at the beginning of the period (in dollars per share) | $ 10.03 | ||
Granted (in dollars per share) | 25.99 | ||
Vested (in dollars per share) | 9.61 | ||
Forfeited (in dollars per share) | 22.46 | ||
Balance at the end of the period (in dollars per share) | $ 23.38 | ||
Service Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance at the beginning of the period (in shares) | 89,021 | ||
Granted (in shares) | 89,021 | 499,460 | |
Vested (in shares) | (36,959) | ||
Forfeited (in shares) | (4,004) | ||
Balance at the end of the period (in shares) | 547,518 | ||
Granted (in dollars per share) | $ 17.47 | $ 23.74 | |
Market Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Balance at the beginning of the period (in shares) | 189,900 | ||
Granted (in shares) | 189,900 | ||
Vested (in shares) | (94,950) | ||
Balance at the end of the period (in shares) | 94,950 | ||
Granted (in dollars per share) | $ 6.54 | ||
PSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 232,150 | ||
Balance at the end of the period (in shares) | 232,150 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||||||
U.S. statutory income tax rate (as a percent) | 21.00% | 21.00% | 21.00% | 21.00% | ||
Income tax benefit (expense) | $ 0 | $ (1,028) | $ 0 | $ (1,028) | ||
Tax refund | $ 1,000 | |||||
Effective tax rate | 0.00% | 0.00% | 0.00% | 0.00% | ||
Deferred tax expense | $ (3,746) | |||||
Federal operating loss carryforwards | $ 3,100,000 | |||||
Carryforwards expected to expire | $ 2,300,000 | $ 2,300,000 | ||||
CANADA | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Deferred tax expense | $ (4,000) |
EARNINGS PER SHARE (Reconciliat
EARNINGS PER SHARE (Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
EARNINGS PER SHARE [Abstract] | ||||||
Net loss | $ (61,489) | $ (946) | $ (574,315) | $ (3,628,571) | $ (62,435) | $ (4,202,886) |
Weighted average shares outstanding, basic and diluted (in shares) | 39,067 | 91,429 | 38,883 | 91,409 | ||
Loss per common share, basic (in dollars per share) | $ (1.57) | $ (6.28) | $ (1.61) | $ (45.98) | ||
Loss per common share, diluted (in dollars per share) | $ (1.57) | $ (6.28) | $ (1.61) | $ (45.98) |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Series A [Member] | ||||
Shares excluded from Earnings Per Share calculation [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 4,837,376 | |||
Series B [Member] | ||||
Shares excluded from Earnings Per Share calculation [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 2,418,832 | |||
Contingently Issuable Shares [Member] | ||||
Shares excluded from Earnings Per Share calculation [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 2,121,304 | |||
Service Based Restricted Stock [Member] | ||||
Shares excluded from Earnings Per Share calculation [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 345,272 | 314,524 | ||
Market Based Restricted Stock [Member] | ||||
Shares excluded from Earnings Per Share calculation [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 195,854 | 202,643 | ||
Market-based awards excluded from earnings per share calculation (in shares) | 94,950 | |||
Service-based [Member] | ||||
Shares excluded from Earnings Per Share calculation [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 270,058 | 342,299 | ||
Stock Option [Member] | ||||
Shares excluded from Earnings Per Share calculation [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 28,505 | 31,805 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | Oct. 01, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2020 |
Commitments | ||||
Payment made | $ 14 | |||
Indemnity amount | $ 25 | $ 25 | $ 25 | |
General and Administrative Expense [Member] | ||||
Commitments | ||||
Additional litigation settlement expense | $ 3 | $ 3 | ||
US Government [Member] | ||||
Commitments | ||||
Bankruptcy Claims, Amount of Claims Filed | $ 25 | |||
FMOG Entities [Member] | ||||
Commitments | ||||
Bankruptcy Claims, Amount of Claims Filed | $ 60 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Jul. 21, 2021USD ($)item | Jul. 19, 2021USD ($)itema | Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($) |
Subsequent Event [Line Items] | ||||
Acquisition of oil and gas properties | $ | $ 509 | $ 351 | ||
Crude Oil [Member] | ||||
Subsequent Event [Line Items] | ||||
Notional amount of derivatives | 20,198,500 | |||
Natural Gas [Member] | ||||
Subsequent Event [Line Items] | ||||
Notional amount of derivatives | 35,444,000 | |||
Subsequent Event [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Redtail Field, Weld County CO [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from sale of properties | $ | $ 187,000 | |||
Subsequent Event [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Redtail Field, Weld County CO [Member] | Crude Oil [Member] | 2021 [Member] | ||||
Subsequent Event [Line Items] | ||||
Notional amount of derivatives | 321,000 | |||
Subsequent Event [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Redtail Field, Weld County CO [Member] | Crude Oil [Member] | 2022 [Member] | ||||
Subsequent Event [Line Items] | ||||
Notional amount of derivatives | 844,500 | |||
Subsequent Event [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Redtail Field, Weld County CO [Member] | Natural Gas [Member] | 2021 [Member] | ||||
Subsequent Event [Line Items] | ||||
Notional amount of derivatives | 870,000 | |||
Subsequent Event [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Redtail Field, Weld County CO [Member] | Natural Gas [Member] | 2022 [Member] | ||||
Subsequent Event [Line Items] | ||||
Notional amount of derivatives | 3,125,000 | |||
Subsequent Event [Member] | Williston Basin [Member] | ||||
Subsequent Event [Line Items] | ||||
Net acquisition area | a | 8,750 | |||
Number of producing wells, gross | 76 | |||
Number of producing wells, net | 50.2 | |||
Number of drilled and uncompleted wells, gross | 5 | |||
Number of drilled and uncompleted wells, net | 2.3 | |||
Acquisition of oil and gas properties | $ | $ 271,000 | |||
Escrow deposit | $ | $ 23,000 |