Battalion Oil (BATL) 10-Q 31 Jul 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 27, 2015
Document and Entity Information
Entity Registrant Name	HALCON RESOURCES CORP
Entity Central Index Key	1,282,648
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		590,218,771
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Oil, natural gas and natural gas liquids sales:
Oil	$ 158,110	$ 304,212	$ 282,523	$ 560,241
Natural gas	5,578	10,308	12,537	19,717
Natural gas liquids	3,889	9,364	7,957	18,123
Total oil, natural gas and natural gas liquids sales	167,577	323,884	303,017	598,081
Other	447	3,260	1,201	4,212
Total operating revenues	168,024	327,144	304,218	602,293
Production:
Lease operating	25,233	30,968	59,018	67,606
Work over and other	3,731	3,988	6,845	6,777
Taxes other than income	12,903	30,310	25,144	54,470
Gathering and other	7,746	5,898	21,492	10,659
Restructuring	309		2,230	987
General and administrative	22,662	27,743	47,071	60,541
Depletion, depreciation and accretion	101,194	133,470	220,338	253,378
Full cost ceiling impairment	948,633		1,502,636	61,165
Other operating property and equipment impairment		3,477		3,789
Total operating expenses	1,122,411	235,854	1,884,774	519,372
Income (loss) from operations	(954,387)	91,290	(1,580,556)	82,921
Other income (expenses):
Net gain (loss) on derivative contracts	(87,564)	(121,042)	12,184	(154,698)
Interest expense and other, net	(60,922)	(37,725)	(122,229)	(68,664)
Gain (loss) on extinguishment of debt	22,766		22,766
Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants	(8,219)		(8,219)
Total other income (expenses)	(133,939)	(158,767)	(95,498)	(223,362)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest, Total	(1,088,326)	(67,477)	(1,676,054)	(140,441)
Income tax benefit (provision)	(286)		(199)
Net income (loss)	(1,088,612)	(67,477)	(1,676,253)	(140,441)	$ 315,956
Series A preferred dividends	(4,902)	(4,960)	(9,803)	(9,919)	$ 4,960
Preferred dividends and accretion on redeemable noncontrolling interest	(11,067)	(896)	(19,718)	(896)
Net income (loss) available to common stockholders	$ (1,104,581)	$ (73,333)	$ (1,705,774)	$ (151,256)
Net income (loss) per share of common stock:
Basic (in dollars per share)	$ (2.03)	$ (0.18)	$ (3.53)	$ (0.37)
Diluted (in dollars per share)	$ (2.03)	$ (0.18)	$ (3.53)	$ (0.37)
Weighted average common shares outstanding:
Basic (in shares)	545,313	414,722	482,843	414,125
Diluted (in shares)	545,313	414,722	482,843	414,125

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Current assets:
Cash	$ 9,973	$ 43,713
Accounts receivable	214,517	276,559
Receivables from derivative contracts	235,869	352,530
Restricted cash	16,483	16,131
Inventory	3,848	4,693
Prepaids and other	8,042	9,079
Total current assets	488,732	702,705
Oil and natural gas properties (full cost method):
Evaluated	6,674,162	6,390,820
Unevaluated	1,801,135	1,829,786
Gross oil and natural gas properties	8,475,297	8,220,606
Less - accumulated depletion	(4,670,982)	(2,953,038)
Net oil and natural gas properties	3,804,315	5,267,568
Other operating property and equipment:
Gas gathering and other operating assets	127,685	126,804
Less - accumulated depreciation	(18,531)	(14,798)
Net other operating property and equipment	109,154	112,006
Other noncurrent assets:
Receivables from derivative contracts	77,605	151,324
Debt issuance costs, net	63,222	55,904
Deferred income taxes	93,026	136,826
Equity in oil and natural gas partnership	4,076	4,309
Funds in escrow and other	1,920	3,833
Total assets	4,642,050	6,434,475
Current liabilities:
Accounts payable and accrued liabilities	365,398	607,750
Asset retirement obligations	143	106
Current portion of deferred income taxes	93,026	136,826
Total current liabilities	458,567	744,682
Long -term debt	3,650,625	3,746,736
Other noncurrent liabilities:
Liabilities from derivative contracts	2,720	9,387
Asset retirement obligations	40,966	38,371
Other	$ 6,480	$ 5,964
Commitments and contingencies (Note 8)
Mezzanine equity:
Redeemable noncontrolling interest	$ 136,884	$ 117,166
Stockholders' equity:
Preferred stock: 1,000,000 shares of $0.0001 par value authorized; 340,960 and 345,000 shares of 5.75% Cumulative Perpetual Convertible Series A, issued and outstanding ast June 30, 2015 and December 31, 2014, respectively
Common stock: 1,340,000,000 shares of $0.0001 par value authorized; 590,274,311 and 427,808,306 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	$ 59	$ 42
Additional paid-in capital	3,274,798	2,995,402
Accumulated deficit	(2,929,049)	(1,223,275)
Total stockholders' equity	345,808	1,772,169	$ 1,447,610
Total liabilities and stockholders' equity	$ 4,642,050	$ 6,434,475

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Stockholders' equity:
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	340,960	345,000
Preferred stock, shares outstanding	340,960	345,000
Cumulative Perpetual Convertible Series A (as a percent)	5.75%	5.75%
Common stock, shares authorized	1,340,000,000	1,340,000,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares issued	590,274,311	427,808,306
Common stock, shares outstanding	590,274,311	427,808,306

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Preferred Stock (Mezzanine Equity)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balances at Dec. 31, 2013		$ 41	$ 2,953,786	$ (1,506,217)	$ 1,447,610
Balances (in shares) at Dec. 31, 2013	345	415,730
Increase (Decrease) in Stockholders' Equity
Net income (loss)				315,956	315,956
Series A preferred dividends			14,878	(19,838)	(4,960)
Dividends on Series A preferred stock (in shares)		3,262
Preferred dividends on redeemable noncontrolling interest				(6,543)	(6,543)
Accretion of redeemable noncontrolling interest				(6,633)	(6,633)
Offering costs			39		39
Long-term incentive plan grants		$ 1	(1)
Long-term incentive plan grants (in shares)		9,388
Long-term incentive plan forfeitures (in shares)		(455)
Reduction in shares to cover individuals' tax withholding			(453)		(453)
Reduction in shares to cover individuals' tax withholding (in shares)		(117)
Share-based compensation			27,153		27,153
Balances at Dec. 31, 2014		$ 42	2,995,402	(1,223,275)	1,772,169
Balances (in shares) at Dec. 31, 2014	345	427,808
Increase (Decrease) in Stockholders' Equity
Net income (loss)				(1,676,253)	(1,676,253)
Series A preferred dividends		$ (1)	(9,802)	9,803	9,803
Dividends on Series A preferred stock (in shares)		6,769
Conversion of Series A preferred stock (in shares)	(4)	656
Preferred dividends on redeemable noncontrolling interest				(6,131)	(6,131)
Accretion of redeemable noncontrolling interest				(12,942)	(12,942)
Change in fair value of redeemable noncontrolling interest				(645)	(645)
Common stock issuance		$ 1	15,353		15,354
Common stock issuance (in shares)		9,436
Common stock issuance of conversion of senior notes		$ 15	231,368		231,383
Common stock issuance on conversion of senior notes (in shares)		144,775
Offering costs			(1,773)		(1,773)
Modification of February 2012 Warrants			14,129		14,129
Long-term incentive plan grants (in shares)		2,387
Long-term incentive plan forfeitures (in shares)		(1,157)
Reduction in shares to cover individuals' tax withholding			(771)		(771)
Reduction in shares to cover individuals' tax withholding (in shares)		(400)
Share-based compensation			11,288		11,288
Balances at Jun. 30, 2015		$ 59	$ 3,274,798	$ (2,929,049)	$ 345,808
Balances (in shares) at Jun. 30, 2015	341	590,274

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income (loss)	$ (1,676,253)	$ (140,441)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depletion, depreciation and accretion	220,338	253,378
Full cost ceiling impairment	1,502,636	61,165
Other operating property and equipment impairment		3,789
Share-based compensation, net	8,210	9,246
Unrealized loss (gain) on derivative contracts	183,713	131,053
Amortization and write-off of deferred loan costs	4,092	2,161
Non-cash interest and amortization of discount and premium	1,709	1,232
Gain (loss) on extinguishment of debt	(22,766)
Loss (gain) on extinguishment of Convertible Note and modification of February 2012 Warrants	8,219
Accrued settlements on derivative contracts	(26,781)
Other income (expense)	5,008	1,230
Change in assets and liabilities, net of acquisitions:
Accounts receivable	45,320	71
Inventory	(5)	(943)
Prepaids and other	1,037	2,944
Accounts payable and accrued liabilities	(36,947)	86,057
Net cash provided by (used in) operating activities	217,530	410,942
Cash flows from investing activities:
Oil and natural gas capital expenditures	(407,751)	(853,738)
Proceeds received from sale of oil and natural gas assets	1,111	465,452
Advance on carried interest		(189,442)
Other operating property and equipment capital expenditures	(7,478)	(29,525)
Funds held in escrow and other	1,901	(307)
Net cash provided by (used in) investing activities	(412,217)	(607,560)
Cash flows from financing activities:
Proceeds from borrowings	1,296,000	1,286,000
Repayments of borrowings	(1,129,000)	(1,027,000)
Debt issuance costs	(18,612)	(77)
Common stock issued	15,354
HK TMS, LLC preferred stock issued		110,051
HK TMS, LLC tranche rights		4,516
Preferred dividends on redeemable noncontrolling interest	(15,354)	(493)
Restricted cash	(352)	(16,000)
Offering costs and other	(2,443)	(1,941)
Net cash provided by (used in) financing activities	160,947	355,056
Net increase (decrease) in cash	(33,740)	158,438
Cash at beginning of period	43,713	2,834
Cash at end of period	9,973	161,272
Disclosure of non-cash investing and financing activities:
Accrued capitalized interest	(2,614)	(1,068)
Asset retirement obligations	1,754	(4,450)
Series A preferred dividends paid in common stock	9,803	9,919
Preferred dividends on redeemable Noncontrolling interest paid-in-kind	6,131
Accretion of redeemable noncontrolling interest	12,942	$ 403
Change in fair value of redeemable noncontrolling interest	645
Common Stock Issuance Conversion Senior Notes	$ 231,383

FINANCIAL STATEMENT PRESENTATIO

FINANCIAL STATEMENT PRESENTATION	6 Months Ended
	Jun. 30, 2015
FINANCIAL STATEMENT PRESENTATION
FINANCIAL STATEMENT PRESENTATION	1. FINANCIAL STATEMENT PRESENTATION Basis of Presentation and Principles of Consolidation Halcón Resources Corporation (Halcón or the Company) is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich assets in the United States. The unaudited condensed consolidated financial statements include the accounts of all majority-owned, controlled subsidiaries and an equity method investment. The Company operates in one segment which focuses on oil and natural gas acquisition, production, exploration and development. The Company's oil and natural gas properties are managed as a whole rather than through discrete operating areas. Operational information is tracked by operating area; however, financial performance is assessed as a whole. Allocation of capital is made across the Company's entire portfolio without regard to operating area. All intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements reflect, in the opinion of the Company's management, all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the financial position as of, and the results of operations for, the periods presented. During interim periods, Halcón follows the accounting policies disclosed in its 2014 Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (SEC) on February 26, 2015. Please refer to the notes in the 2014 Annual Report on Form 10-K when reviewing interim financial results. Use of Estimates The preparation of the Company's unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimates and assumptions that, in the opinion of management of the Company, are significant include oil and natural gas revenue, capital and operating expense accruals, oil and natural gas reserves, depletion relating to oil and natural gas properties, asset retirement obligations, fair value estimates and income taxes. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company's operating environment changes. Actual results may differ from the estimates and assumptions used in the preparation of the Company's unaudited condensed consolidated financial statements. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, has been condensed or omitted. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements. Accounts Receivable and Allowance for Doubtful Accounts The Company's accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. Accounts receivable are recorded at the amount due, less an allowance for doubtful accounts, when applicable. The Company establishes provisions for losses on accounts receivable if it determines that collection of all or part of the outstanding balance is doubtful. The Company regularly reviews collectability and establishes or adjusts the allowance for doubtful accounts as necessary using the specific identification method. There were no material allowances for doubtful accounts as of June 30, 2015 or December 31, 2014. Other Operating Property and Equipment Gas gathering systems and equipment are recorded at cost. Depreciation is calculated using the straight-line method over a 30-year or 10-year estimated useful life applicable to gas gathering systems and a compressed natural gas facility, respectively. Upon disposition, the cost and accumulated depreciation are removed and any gains or losses are reflected in current operations. Maintenance and repair costs are charged to operating expense as incurred. Material expenditures which increase the life or productive capacity of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The Company capitalized $85.3 million and $83.1 million as of June 30, 2015 and December 31, 2014, respectively, related to the construction of its gas gathering systems, after any amounts impaired. Other operating assets are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: automobiles and computers, three years; computer software, fixtures, furniture and equipment, five years or the lesser of the lease term; trailers, seven years; heavy equipment, ten years; buildings, twenty years and leasehold improvements, lease term. Upon disposition, the cost and accumulated depreciation are removed and any gains or losses are reflected in current operations. Maintenance and repair costs are charged to operating expense as incurred. Material expenditures which increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The Company reviews its gas gathering systems and equipment and other operating assets for impairment in accordance with ASC 360, Property, Plant, and Equipment (ASC 360). ASC 360 requires the Company to evaluate gas gathering systems and equipment and other operating assets for impairment as events occur or circumstances change that would more likely than not reduce the fair value below the carrying amount. If the carrying amount is not recoverable from an asset's undiscounted cash flows, then the Company recognizes an impairment loss for the difference between the carrying amount and the current fair value. The Company also evaluates the remaining useful lives of its gas gathering systems and other operating assets at each reporting period to determine whether events and circumstances warrant a revision to the remaining depreciation periods. Operating results for the six months ended June 30, 2014 reflect the impact of approximately $3.8 million in charges related to the disposition of midstream infrastructure assets associated with certain non-core property divestitures. The impairment of midstream assets was recorded in " Other operating property and equipment impairment " in the Company's unaudited condensed consolidated statements of operations and in " Gas gathering and other operating assets " in the Company's unaudited condensed consolidated balance sheets. In accordance with ASC 820, Fair Value Measurements and Disclosures (ASC 820), a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The estimate of the fair value of the Company's gas gathering systems was based on an income approach that estimated future cash flows associated with those assets, which resulted in negative net cash flows due to insufficient throughput of natural gas volumes and certain fixed costs necessary to operate and maintain the assets. This estimation includes the use of unobservable inputs, such as estimated future production, gathering and compression revenues and operating expenses. The use of these unobservable inputs results in the fair value estimate of the Company's gas gathering systems being classified as Level 3. Recently Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 states that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For public entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively and early application is permitted. The Company does not expect the adoption of ASU 2015-11 to have a material impact to its financial statements or disclosures. In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (ASU 2015-05). ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public business entities, the guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. An entity can elect to adopt the guidance either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) restrospectively. Early adoption is permitted. The Company is in the process of assessing the effects of the application of the new guidance. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). To simplify presentation of debt issuance costs, ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. ASU 2015-03 is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted and entities shall apply the the guidance retrospectively to all prior year periods presented. The Company is in the process of assessing the effects of the application of the new guidance. In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis (ASU 2015-02). The amendments in ASU 2015-02 eliminate the previous presumption that a general partner controls a limited partner. ASU 2015-02 may impact the Company's accounting for its general partner interest in SBE Partners LP (SBE Partners), which is currently accounted for as an equity method investment. ASU 2015-02 is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Entites may apply the guidance using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the first fiscal year adopted or it may apply the amendment retrospectively. The Company is currently assessing the impact of ASU 2015-02 on its accounting for its general partner interest in SBE Partners. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (ASU 2014-15). ASU 2014-15 is effective for annual reporting periods (including interim periods within those periods) ending after December 15, 2016. Early application is permitted with companies applying the guidance prospectively. The amendments in ASU 2014-15 create a new ASC Sub-topic 205-40, Presentation of Financial Statements—Going Concern and require management to assess for each annual and interim reporting period if conditions exist that raise substantial doubt about an entity's ability to continue as a going concern. The rule requires various disclosures depending on the facts and circumstances surrounding an entity's ability to continue as a going concern. The Company is in the process of assessing the effects of the application of the new guidance. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides five steps an entity should apply in determining its revenue recognition. ASU 2014-09 must be applied retrospectively and is effective for annual reporting periods, and interim periods within that reporting period, beginning after December 15, 2016, or after December 2017, if companies choose to elect the deferred adoption date recently approved by the FASB. Early adoption is not permitted. The Company is currently assessing the impact of the adoption of ASU 2014-09 on the Company's operating results, financial position and disclosures.

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES	6 Months Ended
	Jun. 30, 2015
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES	2. ACQUISITIONS AND DIVESTITURES Divestiture East Texas Assets On May 9, 2014, the Company completed the divestiture of certain non-core assets in East Texas (the East Texas Assets) to a privately-owned company for a total purchase price of $424.5 million after closing adjustments for operating expenses, capital expenditures and revenues between the effective date and the closing date, title and environmental defects, and other purchase price adjustments customary in oil and gas purchase and sale agreements. The effective date of the transaction was April 1, 2014. Proceeds from the sale were recorded as a reduction to the carrying value of the Company's full cost pool with no gain or loss recorded.

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES	6 Months Ended
	Jun. 30, 2015
OIL AND NATURAL GAS PROPERTIES
OIL AND NATURAL GAS PROPERTIES	3. OIL AND NATURAL GAS PROPERTIES The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under this method of accounting, all costs of acquisition, exploration and development of oil and natural gas reserves (including such costs as leasehold acquisition costs, geological expenditures, dry hole costs, tangible and intangible development costs and direct internal costs) are capitalized as the cost of oil and natural gas properties when incurred. To the extent capitalized costs of evaluated oil and natural gas properties, net of accumulated depletion, exceed the discounted future net revenues of proved oil and natural gas reserves, net of deferred taxes, such excess capitalized costs are charged to expense. The Company assesses all properties classified as unevaluated property on a quarterly basis for possible impairment or reduction in value. The Company assesses properties on an individual basis or as a group, if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to depletion and the full cost ceiling test limitation. Investments in unevaluated oil and natural gas properties and exploration and development projects for which depletion expense is not currently recognized, and for which exploration or development activities are in progress, qualify for interest capitalization. The capitalized interest is determined by multiplying the Company's weighted-average borrowing cost on debt by the average amount of qualifying costs incurred that are excluded from the full cost pool; however, the amount of capitalized interest cannot exceed the amount of gross interest expense incurred in any given period. The capitalized interest amounts are recorded as additions to unevaluated oil and natural gas properties on the unaudited condensed consolidated balance sheets. As the costs excluded are transferred to the full cost pool, the associated capitalized interest is also transferred to the full cost pool. For the six months ended June 30, 2015 and 2014, the Company capitalized interest costs of $51.2 million and $88.6 million, respectively. At June 30, 2015, the ceiling test value of the Company's reserves was calculated based on the first-day-of-the-month average for the 12-months ended June 30, 2015 of the West Texas Intermediate (WTI) spot price of $71.68 per barrel, adjusted by lease or field for quality, transportation fees, and regional price differentials, and the first-day-of-the-month average for the 12-months ended June 30, 2015 of the Henry Hub price of $3.39 per million British thermal units (MMBtu), adjusted by lease or field for energy content, transportation fees, and regional price differentials. Using these prices, the Company's net book value of oil and natural gas properties at June 30, 2015 exceeded the ceiling amount by $948.6 million ($597.3 million after taxes) which resulted in a ceiling test impairment of that amount for the quarter. At March 31, 2015, the Company recorded a full cost ceiling impairment before income taxes of $554.0 million ($348.8 million after taxes). The ceiling test impairments were driven by decreases in the first-day-of-the-month average prices for crude oil used in the ceiling test calculations since December 31, 2014, when the first-day-of-the-month average price for crude oil was $94.99 per barrel and $82.71 per barrel at March 31, 2015. At June 30, 2014, the ceiling test value of the Company's reserves was calculated based on the first-day-of-the-month average for the 12-months ended June 30, 2014 of the WTI spot price of $100.27 per barrel, adjusted by lease or field for quality, transportation fees, and regional price differentials, and the first-day-of-the-month average for the 12-months ended June 30, 2014 of the Henry Hub price of $4.10 per MMBtu, adjusted by lease or field for energy content, transportation fees, and regional price differentials. Using these prices, the Company's net book value of oil and natural gas properties at June 30, 2014 did not exceed the ceiling amount. At March 31, 2014, the Company recorded a full cost ceiling impairment before income taxes of $61.2 million ($39.0 million after taxes). The Company recorded the full cost ceiling test impairments in " Full cost ceiling impairment " in the Company's unaudited condensed consolidated statements of operations and in " Accumulated depletion " in the Company's unaudited condensed consolidated balance sheets. Changes in commodity prices, production rates, levels of reserves, future development costs, transfers of unevaluated properties, and other factors will determine the Company's ceiling test calculations and impairment analyses in future periods.

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2015
LONG-TERM DEBT.
LONG-TERM DEBT	4. LONG-TERM DEBT Long-term debt as of June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, 2014 (In thousands) Senior revolving credit facility $ $ 8.625% senior secured notes due 2020 (1) — 9.25% senior notes due 2022 8.875% senior notes due 2021 (2) 9.75% senior notes due 2020 (3) 8.0% convertible note due 2020 (4) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) On May 1, 2015, the Company completed the issuance of $700.0 million aggregate principal amount of its 8.625% senior secured notes due 2020. See "8.625% Senior Secured Notes" below for more details. (2) Amounts are net of a $4.1 million and a $4.6 million unamortized discount at June 30, 2015 and December 31, 2014, respectively, related to the issuance of the original 2021 Notes. The unamortized premium related to the additional 2021 Notes was approximately $22.1 million and $24.6 million at June 30, 2015 and December 31, 2014, respectively. See "8.875% Senior Notes" below for more details. (3) Amounts are net of a $5.9 million and a $7.9 million unamortized discount at June 30, 2015 and December 31, 2014, respectively, related to the issuance of the original 2020 Notes. The unamortized premium related to the additional 2020 Notes was approximately $8.1 million and $9.7 million at June 30, 2015 and December 31, 2014, respectively. See "9.75% Senior Notes" below for more details. (4) On May 6, 2015, an amendment to the 8.0% convertible note became effective and was accounted for as a debt extinguishment. Accordingly, the Company expensed the unamortized discount related to the pre-amendment 8.0% convertible note of $18.6 million and recorded a discount of $25.9 million to be amortized over the remaining life of the post-amendment 8.0% convertible note. The remaining unamortized discounts at June 30, 2015 and December 31, 2014 were $25.3 million and $21.8 million, respectively. See "8.0% Convertible Note" below for more details. Senior Revolving Credit Facility On February 8, 2012, the Company entered into a senior secured revolving credit agreement (the Senior Credit Agreement) with JPMorgan Chase Bank, N.A., as administrative agent, and the other lenders party thereto. The Senior Credit Agreement currently provides for a $1.5 billion facility with a current borrowing base of $900.0 million. Amounts borrowed under the Senior Credit Agreement will mature on August 1, 2019. The borrowing base will be redetermined semi-annually, with the lenders and the Company each having the right to one interim unscheduled redetermination between any two consecutive semi-annual redeterminations. The next redetermination is expected to occur in or around October 2015. The borrowing base takes into account the Company's oil and natural gas properties, proved reserves, total indebtedness, and other relevant factors consistent with customary oil and natural gas lending criteria. The borrowing base is subject to a reduction, (in most cases, equal to the product of 0.25 multiplied by the stated principal amount (without regard to any initial issue discount) of any future notes or other long-term debt securities that the Company may issue. Funds advanced under the Senior Credit Agreement may be paid down and re-borrowed during the term of the facility. Amounts outstanding under the Senior Credit Agreement bear interest at specified margins over the base rate of 0.75% to 1.75% for ABR-based loans or at specified margins over LIBOR of 1.75% to 2.75% for Eurodollar-based loans. These margins fluctuate based on the Company's utilization of the facility. Advances under the Senior Credit Agreement are secured by liens on substantially all of the Company's and its restricted subsidiaries' properties and assets. The Senior Credit Agreement contains customary representations, warranties and covenants including, among others, restrictions on the payment of dividends on the Company's capital stock and financial covenants, including minimum working capital levels (the ratio of current assets plus the unused commitment under the Senior Credit Agreement to current liabilities) of not less than 1.0 to 1.0 and a ratio of total secured debt to EBITDA of no greater than 2.75 to 1.0. On May 1, 2015, the Company entered into the Tenth Amendment to the Senior Credit Agreement (the Tenth Amendment) which, among other things, replaced the interest coverage test with a covenant that requires the ratio of total secured debt to EBITDA of no greater than 2.75 to 1.0 and reduced the borrowing base. Prior to the Tenth Amendment, under the Ninth Amendment executed on February 25, 2015, the Senior Credit Agreement had a required minimum coverage of interest expenses of not less than 2.0 to 1.0 through March 31, 2016 and not less than 2.5 to 1.0 for subsequent periods. At June 30, 2015, under the effective borrowing base of $900.0 million, the Company had $24.0 million of indebtedness outstanding, $1.0 million of letters of credit outstanding and approximately $875.0 million of borrowing capacity available under the Company's Senior Credit Agreement. At June 30, 2015, the Company was in compliance with the financial covenants under the Senior Credit Agreement. 8.625% Senior Secured Notes On May 1, 2015, the Company completed the issuance of $700 million aggregate principal amount of its 8.625% senior secured notes due 2020 (the Secured Notes) in a private offering. The Secured Notes were issued at par. The net proceeds from the sale of the Secured Notes were approximately $686.3 million (after deducting initial offering fees and expenses). The Company used the net proceeds from the offering to repay the majority of the then outstanding borrowings under its Senior Credit Agreement. The Secured Notes bear interest at a rate of 8.625% per annum, payable semi-annually on February 1 and August 1 of each year, beginning on August 1, 2015. The Secured Notes will mature on February 1, 2020. The Secured Notes are secured by second-priority liens on substantially all of the Company's and its guarantors' assets to the extent such assets secure the Company's Senior Credit Agreement (the Collateral). Pursuant to the terms of the Intercreditor Agreement, dated May 1, 2015, the security interest in those assets that secure the Secured Notes and the guarantees are contractually subordinated to liens that secure the Company's Senior Credit Agreement and certain other permitted indebtedness. Consequently, the Secured Notes and the guarantees will be effectively subordinated to the Senior Credit Agreement and such other indebtedness to the extent of the value of such assets. The Collateral does not include any of the assets of HK TMS, LLC, a wholly owned subsidiary of the Company, or any of the Company's future unrestricted subsidiaries. At any time prior to February 1, 2017, the Company may redeem the Secured Notes, in whole or in part, at a redemption price equal to 100% of their principal amount plus a make-whole premium, together with accrued and unpaid interest, if any, to the redemption date. The Secured Notes will be redeemable, in whole or in part, on or after February 1, 2017 at redemption prices equal to the principal amount multiplied by the percentage set forth below, plus accrued and unpaid interest: Year Percentage 2017 2018 2019 and thereafter Additionally, the Company may redeem up to 35% of the Secured Notes on or prior to February 1, 2017 for a redemption price of 108.625% of the principal amount thereof, plus accrued and unpaid interest, utilizing net cash proceeds from certain equity offerings. In addition, upon a change of control of the Company, holders of the Secured Notes will have the right to require the Company to repurchase all or any part of their notes for cash at a price equal to 101% of the aggregate principal amount of the Secured Notes repurchased, plus any accrued and unpaid interest. 9.25% Senior Notes On August 13, 2013, the Company issued at par $400.0 million aggregate principal amount of 9.25% senior notes due 2022 (the 2022 Notes). The net proceeds from the offering of approximately $392.1 million (after deducting commissions and offering expenses) were used to repay a portion of the then outstanding borrowings under the Company's Senior Credit Agreement. The 2022 Notes bear interest at a rate of 9.25% per annum, payable semi-annually on February 15 and August 15 of each year, beginning on February 15, 2014. The 2022 Notes will mature on February 15, 2022. The 2022 Notes are senior unsecured obligations of the Company, rank equally with all of its current and future senior indebtedness and are jointly and severally, fully and unconditionally guaranteed on a senior unsecured basis by the Company's existing 100% owned subsidiaries, except for the subsidiary, HK TMS, LLC. Halcón, the issuer of the 2022 Notes, has no material independent assets or operations apart from the assets and operations of its subsidiaries. During the second quarter of 2015, the Company entered into several exchange agreements with existing holders of the Company's 2022 Notes in which the holders agreed to exchange an aggregate $7.4 million principal amount of their senior notes for approximately 4.3 million shares of the Company's common stock, thereby reducing the aggregate principal amount of the 2022 Notes to $392.7 million as of June 30, 2015. The exchanges closed on various dates from April 30, 2015 through May 15, 2015, at which time the Company also paid all accrued and unpaid interest since the prior interest payment date for the 2022 Notes. See " Senior Notes Exchanged for Common Stock " below for more details. 8.875% Senior Notes On November 6, 2012, the Company issued $750.0 million aggregate principal amount of its 8.875% senior notes due 2021 (the 2021 Notes), at a price to the initial purchasers of 99.247% of par. The net proceeds from the offering of approximately $725.6 million (after deducting the initial purchasers' discounts, commissions and offering expenses) were used to fund a portion of the cash consideration paid in the acquisition of two wholly-owned subsidiaries of Petro-Hunt Holdings, LLC and Pillar Holdings, LLC, which owned acreage prospective for the Bakken/Three Forks formations located in North Dakota, in Williams, Mountrail, McKenzie and Dunn Counties. On January 14, 2013, the Company issued an additional $600.0 million aggregate principal amount of the 2021 Notes at a price to the initial purchasers of 105% of par. The net proceeds from the sale of the additional 2021 Notes of approximately $619.5 million (after the initial purchasers' premiums, commissions and offering expenses) were used to repay all of the then outstanding borrowings under the Senior Credit Agreement and for general corporate purposes, including funding a portion of the Company's 2013 capital expenditures program. These notes were issued as "additional notes" under the indenture governing the 2021 Notes and under the indenture are treated as a single series with substantially identical terms as the 2021 Notes previously issued. The 2021 Notes bear interest at a rate of 8.875% per annum, payable semi-annually on May 15 and November 15 of each year, beginning on May 15, 2013. The Notes will mature on May 15, 2021. The 2021 Notes are senior unsecured obligations of the Company and rank equally with all of its current and future senior indebtedness. The 2021 Notes are jointly and severally, fully and unconditionally guaranteed on a senior unsecured basis by the Company's existing 100% owned subsidiaries, except for the subsidiary, HK TMS, LLC. Halcón, the issuer of the 2021 Notes, has no material independent assets or operations apart from the assets and operations of its subsidiaries. In conjunction with the issuance of the 2021 Notes, the Company recorded a discount of approximately $5.7 million to be amortized over the remaining life of the 2021 Notes using the effective interest method. The remaining unamortized discount was $4.1 million at June 30, 2015. In conjunction with the issuance of the additional 2021 Notes, the Company recorded a premium of approximately $30.0 million to be amortized over the remaining life of the additional 2021 Notes using the effective interest method. The remaining unamortized premium was $22.1 million at June 30, 2015. During the second quarter of 2015, the Company entered into several exchange agreements with existing holders of the Company's 2021 Notes in which the holders agreed to exchange an aggregate $60.6 million principal amount of their senior notes for approximately 34.4 million shares of the Company's common stock, thereby reducing the aggregate principal amount of the 2021 Notes to $1.29 billion as of June 30, 2015. The exchanges closed on various dates from April 29, 2015 through May 15, 2015, at which time the Company also paid all accrued and unpaid interest since the prior interest payment date for the 2021 Notes. See " Senior Notes Exchanged for Common Stock " below for more details. 9.75% Senior Notes On July 16, 2012, the Company issued $750.0 million aggregate principal amount of 9.75% senior notes due 2020 issued at 98.646% of par (the 2020 Notes). The net proceeds from the offering were approximately $723.1 million after deducting the initial purchasers' discounts, commissions and offering expenses and were used to fund a portion of the cash consideration paid in the merger with GeoResources, Inc., and the acquisition of certain oil and gas leaseholds located in East Texas. On December 19, 2013, the Company issued an additional $400.0 million aggregate principal amount of the 2020 Notes at a price to the initial purchasers of 102.750% of par. The net proceeds from the sale of the additional 2020 Notes of approximately $406.3 million (after the initial purchasers' fees, commissions and offering expenses) were used to repay a portion of the then outstanding borrowings under the Senior Credit Agreement. These notes were issued as "additional notes" under the indenture governing the 2020 Notes and under the indenture are treated as a single series with substantially identical terms as the 2020 Notes previously issued. The 2020 Notes bear interest at a rate of 9.75% per annum, payable semi-annually on January 15 and July 15 of each year, beginning on January 15, 2013. The 2020 Notes will mature on July 15, 2020. The 2020 Notes are senior unsecured obligations of the Company and rank equally with all of its current and future senior indebtedness. The 2020 Notes are jointly and severally, fully and unconditionally guaranteed on a senior unsecured basis by the Company's existing 100% owned subsidiaries, except for the subsidiary, HK TMS, LLC. Halcón, the issuer of the 2020 Notes, has no material independent assets or operations apart from the assets and operations of its subsidiaries. In conjunction with the issuance of the 2020 Notes, the Company recorded a discount of approximately $10.2 million to be amortized over the remaining life of the 2020 Notes using the effective interest method. The remaining unamortized discount was $5.9 million at June 30, 2015. In conjunction with the issuance of the additional 2020 Notes, the Company recorded a premium of approximately $11.0 million to be amortized over the remaining life of the additional 2020 Notes using the effective interest method. The remaining unamortized premium was approximately $8.1 million at June 30, 2015. During the second quarter of 2015, the Company entered into several exchange agreements with existing holders of the Company's 2020 Notes in which the holders agreed to exchange an aggregate $190.0 million principal amount of their senior notes for approximately 106.1 million shares of the Company's common stock, thereby reducing the aggregate principal amount of the 2020 Notes to $960.0 million as of June 30, 2015. The exchanges closed on various dates from April 13, 2015 through May 4, 2015, at which time the Company also paid all accrued and unpaid interest since the prior interest payment date for the 2020 Notes. See " Senior Notes Exchanged for Common Stock " below for more details. 8.0% Convertible Note On February 8, 2012, the Company issued to HALRES, LLC (HALRES), a note in the principal amount of $275.0 million due 2017 (the Convertible Note) together with five year warrants (February 2012 Warrants) for an aggregate purchase price of $275.0 million. The Convertible Note bears interest at a rate of 8% per annum, payable quarterly on March 31, June 30, September 30 and December 31 of each year. Through the March 31, 2014 interest payment date, the Company was permitted to elect to pay the interest in kind, by adding to the principal of the Convertible Note, all or any portion of the interest due on the Convertible Note. The Company elected to pay the interest in kind on March 31, June 30 and September 30, 2012, and added $3.2 million, $5.7 million and $5.8 million of interest incurred, respectively, to the Convertible Note, increasing the principal amount to $289.7 million. The Company did not elect to pay-in-kind interest for the subsequent quarterly payments. The Convertible Note is a senior unsecured obligation of the Company. On March 9, 2015, the Company entered into an amendment (the HALRES Note Amendment) to its Convertible Note. The HALRES Note Amendment extends the maturity date of the Convertible Note by three years, from February 8, 2017 to February 8, 2020. The Convertible Note originally provided for prepayment without premium or penalty at any time after February 8, 2014, at which time it also became convertible into shares of the Company's common stock at a conversion price of $4.50 per share. These dates have been extended pursuant to the HALRES Note Amendment and the conversion price has been adjusted, such that at any time after March 9, 2017, the Company may prepay the Convertible Note without premium or penalty, and HALRES may elect to convert all or any portion of unpaid principal and interest outstanding under the Convertible Note to shares of the Company's common stock at a conversion price of $2.44 per share, subject to adjustments for stock splits and other customary anti-dilution provisions as set forth in the Convertible Note. At the same time, the Company also entered into an amendment to the February 2012 Warrants (the Warrant Amendment) which extends the term of the February 2012 Warrants from February 8, 2017 to February 8, 2020 and adjusts the exercise price of the February 2012 Warrants to $2.44 per share. In connection with the HALRES Note Amendment and the Warrant Amendment (the Amendments), the Company and HALRES also amended and restated the Registration Rights Agreement, dated February 8, 2012, as amended (the Amended Registration Rights Agreement), which provides for certain demand and piggyback registration rights for the shares of the Company's common stock issuable upon conversion of the Convertible Note and exercise of the February 2012 Warrants. The Amendments were approved by the Company's stockholders on May 6, 2015, in accordance with the rules of the New York Stock Exchange. The Company accounted for the HALRES Note Amendment as a debt extinguishment because the change in the fair value of the embedded conversion option immediately before and after the modification was at least 10% of the carrying amount of the original Convertible Note immediately prior to the modification. The $7.3 million difference between the unamortized original issuance discount of $18.6 million and the post-amendment discount of $25.9 million, net of $1.4 million of unamortized initial issuance costs, resulted in a net gain recorded in " Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants " in the unaudited condensed consolidated statements of operations. See Note 10, " Stockholders' Equity " for further discussion of the Warrant Amendment. The remaining unamortized discount was $25.3 million at June 30, 2015. Senior Notes Exchanged for Common Stock During the second quarter of 2015, the Company entered into several exchange agreements with existing holders of the Company's senior unsecured notes in which the holders agreed to exchange an aggregate $258.0 million principal amount of their senior notes for approximately 144.8 million shares of the Company's common stock. On May 7, 2015, the Company entered into an exchange agreement with Union Square Park Partners, L.P., a holder of the Company's 2022 Notes and 2021 Notes, pursuant to which it agreed to exchange approximately $5.8 million principal amount of such notes for approximately 3.5 million shares of the Company's common stock, resulting in an effective exchange price of $1.70 per share. Of the aggregate $5.8 million principal amount of senior notes to be exchanged by the holders, approximately $2.0 million is principal amount of 2022 Notes and approximately $3.8 million is principal amount of 2021 Notes. The exchange closed on May 15, 2015, at which time the Company also paid all accrued and unpaid interest on the notes since the prior interest payment date for each of the 2022 Notes and 2021 Notes. On April 24, 2015, the Company entered into an exchange agreement with several investment funds advised by Pioneer Investments, each of which is a holder of the Company's 2020 Notes, 2021 Notes and 2022 Notes (the Senior Notes), pursuant to which the funds agreed to exchange an aggregate $25.0 million principal amount of the Senior Notes for approximately 14.8 million shares of the Company's common stock, resulting in an effective exchange price of $1.69 per share. Of the aggregate $25.0 million principal amount of Senior Notes to be exchanged by the holders, approximately $2.8 million is principal amount of 2020 Notes, approximately $16.8 million is principal amount of 2021 Notes and approximately $5.4 million is principal amount of 2022 Notes. The exchanges closed on various dates from April 30, 2015 through May 4, 2015, at which time the Company also paid all accrued and unpaid interest since the relevant prior interest payment dates for each of the Senior Notes. On April 22, 2015, the Company entered into an exchange agreement with J.P. Morgan Securities LLC, a holder of the Company's 2021 Notes, pursuant to which it agreed to exchange approximately $40.0 million principal amount of such notes for approximately 22.2 million shares of the Company's common stock, resulting in an effective exchange price of $1.80 per share. The exchange closed on April 29, 2015, at which time the Company also paid all accrued and unpaid interest on the notes since the prior interest payment date in November 2014. On April 15, 2015, the Company entered into an exchange agreement with Goldman Sachs Asset Management, L.P., on behalf of certain of its funds and accounts which hold the Company's 2020 Notes, pursuant to which the holders agreed to exchange approximately $70.7 million principal amount of such notes for approximately 38.8 million shares of the Company's common stock, resulting in an effective exchange price of $1.82 per share. The exchanges closed on various dates from April 22, 2015 through April 28, 2015, at which time the Company also paid all accrued and unpaid interest on the notes since the prior interest payment date in January 2015. On April 7, 2015, the Company entered into an exchange agreement with two investment funds advised by Franklin Templeton Investments, each of which is an existing holder of the Company's 2020 Notes, pursuant to which the funds agreed to exchange an aggregate $116.5 million principal amount of such notes for approximately 65.5 million shares of the Company's common stock, resulting in an effective exchange price of $1.78 per share. The exchange closed on April 13, 2015, at which time the Company also paid all accrued and unpaid interest on the notes since the prior interest payment date in January 2015. The Company recorded the issuance of common shares at fair value on the various dates the debt for equity exchanges occurred and also recognized a $22.8 million net gain on the extinguishment of debt, as a $26.6 million gain on the exchanges was partially offset by the amortization of $3.8 million associated with related issuance costs and discounts and premiums for the respective offerings. The net gain is recorded in " Gain (loss) on extinguishment of debt " in the unaudited condensed consolidated statements of operations. Debt Issuance Costs The Company capitalizes certain direct costs associated with the issuance of long-term debt and amortizes such costs over the lives of the respective debt. The Company capitalized $18.8 million associated with the issuance of the Secured Notes and the Tenth Amendment to the Senior Credit Agreement. The Company expensed $6.8 million of debt issuance costs in conjunction with the debt for equity exchanges, the debt extinguishment for the HALRES Note Amendment, and decreases in the Company's borrowing base under the Senior Credit Agreement. At June 30, 2015 and December 31, 2014, the Company had approximately $63.2 million and $55.9 million, respectively, of unamortized debt issuance costs.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	5. FAIR VALUE MEASUREMENTS Pursuant to ASC 820, Fair Value Measurements (ASC 820), the Company's determination of fair value incorporates not only the credit standing of the counterparties involved in transactions with the Company resulting in receivables on the Company's unaudited condensed consolidated balance sheets, but also the impact of the Company's nonperformance risk on its own liabilities. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy assigns the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Level 2 measurements are inputs that are observable for assets or liabilities, either directly or indirectly, other than quoted prices included within Level 1. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. The Company classifies fair value balances based on the observability of those inputs. The following tables set forth by level within the fair value hierarchy the Company's financial assets and liabilities that were accounted for at fair value as of June 30, 2015 and December 31, 2014. As required by ASC 820, a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. There were no transfers between fair value hierarchy levels for the six months ended June 30, 2015 or 2014. June 30, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets Receivables from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Liabilities from derivative contracts $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Assets Receivables from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Liabilities from derivative contracts $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivative contracts listed above as Level 2 include collars, swaps and swaptions that are carried at fair value. The Company records the net change in the fair value of these positions in "Net gain (loss) on derivative contracts" in the Company's unaudited condensed consolidated statements of operations. The Company is able to value the assets and liabilities based on observable market data for similar instruments, which resulted in the Company reporting its derivatives as Level 2. This observable data includes the forward curves for commodity prices based on quoted market prices and implied volatility factors related to changes in the forward curves. See Note 6, "Derivative and Hedging Activities" for additional discussion of derivatives. Derivative contracts listed above as Level 3 include extendable collars that are carried at fair value. The significant unobservable inputs for these Level 3 contracts include unpublished forward strip prices and market volatilities. The following table sets forth a reconciliation of changes in the fair value of the Company's extendable collar contracts classified as Level 3 in the fair value hierarchy: Significant Unobservable Inputs (Level 3) June 30, 2015 December 31, 2014 (In thousands) Beginning Balance $ ) $ ) Net gain (loss) on derivative contracts Settlements — — Purchase of derivative contracts ) — Buy out of derivative contracts — — ​ ​ ​ ​ ​ ​ ​ ​ Ending Balance $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in unrealized gains (losses) included in earnings related to derivatives still held at June 30, 2015 and December 31, 2014 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of June 30, 2015 and December 31, 2014, the Company's derivative contracts were with major financial institutions with investment grade credit ratings which are believed to have a minimal credit risk. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties in the derivative contracts; however, the Company does not anticipate such nonperformance. The following disclosure of the estimated fair value of financial instruments is made in accordance with the requirements of ASC 825, Financial Instruments . The estimated fair value amounts have been determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, accounts receivables and accounts payables approximate their carrying value due to their short-term nature. The estimated fair value of the Company's Senior Credit Agreement approximates carrying value because the interest rates approximate current market rates. The following table presents the estimated fair values of the Company's fixed interest rate, long-term debt instruments as of June 30, 2015 and December 31, 2014 (excluding discounts and premiums): June 30, 2015 December 31, 2014 Debt Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (In thousands) 8.625% senior secured notes $ $ $ — $ — 9.25% senior notes 8.875% senior notes 9.75% senior notes 8.0% convertible note ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The fair value of the Company's senior notes was calculated based on quoted market prices from trades of such debt, which are considered Level 2 criteria. During the first half of 2015, the Company entered into several exchange agreements with existing holders of the company's senior unsecured notes in which the holders agreed to exchange their senior notes for shares of the Company's common stock. The fair value of the common shares issued was determined by using quoted market prices of the Company's common stock, which is considered Level 1 criteria in the fair value hierarchy. See Note 4, " Long-term Debt ," for further discussion of the exchanges and the net gain recorded on the transactions. As discussed in Note 4, " Long-term Debt " and in Note 10, " Stockholders' Equity ," on May 6, 2015, the HALRES Note Amendment and the Warrant Amendment became effective. The fair value estimates for the Convertible Note and the February 2012 Warrants include the use of observable inputs such as the Company's stock price, expected volatility, and credit spread and the risk-free rate. The use of these observable inputs results in the fair value estimates being classified as Level 2. During the six months ended June 30, 2014, the Company recorded a non-cash impairment charge of $3.8 million related to its gas gathering systems and other operating assets. See Note 1, " Financial Statement Presentation ," for a discussion of the valuation approach used and the classification of the estimate within the fair value hierarchy. On June 16, 2014, the Company entered into a transaction to develop its Tuscaloosa Marine Shale assets with funds and accounts managed by affiliates of Apollo Global Management, LLC and on June 1, 2015 amended this agreement. See Note 9, " Mezzanine Equity ," for a discussion of the valuation approach used to allocate the initial investment proceeds to the transaction's components, for the valuation approach used to fair value the transaction's components upon the amendment, for the classification of the estimates within the fair value hierarchy, and for a reconciliation of the beginning and ending liability balances for the redeemable non-controlling interest, the tranche rights and the embedded derivative. The Company follows the provisions of ASC 820 for nonfinancial assets and liabilities measured at fair value on a non-recurring basis. These provisions apply to the Company's initial recognition of asset retirement obligations for which fair value is used. The asset retirement obligation estimates are derived from historical costs and management's expectation of future cost environments; consequently, the Company has designated these liabilities as Level 3. See Note 7, " Asset Retirement Obligations ," for a reconciliation of the beginning and ending balances of the liability for the Company's asset retirement obligations.

DERIVATIVE AND HEDGING ACTIVITI

DERIVATIVE AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2015
DERIVATIVE AND HEDGING ACTIVITIES
DERIVATIVE AND HEDGING ACTIVITIES	6. DERIVATIVE AND HEDGING ACTIVITIES The Company is exposed to certain risks relating to its ongoing business operations, such as commodity price risk and interest rate risk. Derivative contracts are utilized to economically hedge the Company's exposure to price fluctuations and reduce the variability in the Company's cash flows associated with anticipated sales of future oil and natural gas production. The Company generally hedges a substantial, but varying, portion of anticipated oil and natural gas production for future periods. Derivatives are carried at fair value on the unaudited condensed consolidated balance sheets as assets or liabilities, with the changes in the fair value included in the unaudited condensed consolidated statements of operations for the period in which the change occurs. The Company's hedge policies and objectives may change significantly as its operational profile changes and/or commodities prices change. The Company does not enter into derivative contracts for speculative trading purposes. It is the Company's policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions deemed by management as competent and competitive market makers. The Company did not post collateral under any of its derivative contracts as they are secured under the Company's Senior Credit Agreement or are uncollateralized trades. At June 30, 2015 and December 31, 2014, the Company's crude oil and natural gas derivative positions consisted of swaps, swaptions, costless put/call "collars," and extendable costless collars. Swaps are designed so that the Company receives or makes payments based on a differential between fixed and variable prices for crude oil and natural gas. Swaptions are swap contracts that may be extended annually at the option of the counterparty on a designated date. A costless collar consists of a sold call, which establishes a maximum price the Company will receive for the volumes under contract and a purchased put that establishes a minimum price. Extendable collars are costless put/call contracts that may be extended annually at the option of the counterparty on a designated date. The Company has elected not to designate any of its derivative contracts for hedge accounting. Accordingly, the Company records the net change in the mark-to-market valuation of these derivative contracts, as well as all payments and receipts on settled derivative contracts, in "Net gain (loss) on derivative contracts" on the unaudited condensed consolidated statements of operations. At June 30, 2015, the Company had 77 open commodity derivative contracts summarized in the following tables: four natural gas collar arrangements, 44 crude oil collar arrangements, 18 crude oil swaps, eight crude oil swaptions and three crude oil extendable collars. At December 31, 2014, the Company had 72 open commodity derivative contracts summarized in the following tables: four natural gas collar arrangements, 42 crude oil collar arrangements, 16 crude oil swaps, eight crude oil swaptions and two crude oil extendable collars. All derivative contracts are recorded at fair market value in accordance with ASC 815 and ASC 820 and included in the unaudited condensed consolidated balance sheets as assets or liabilities. The following table summarizes the location and fair value amounts of all derivative contracts in the unaudited condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014: Asset derivative contracts Liability derivative contracts Derivatives not designated as hedging contracts under ASC 815 Balance sheet location June 30, 2015 December 31, 2014 Balance sheet location June 30, 2015 December 31, 2014 (In thousands) (In thousands) Commodity contracts Current assets—receivables from derivative contracts $ $ Current liabilities—liabilities from derivative contracts $ — $ — Commodity contracts Other noncurrent assets—receivables from derivative contracts Other noncurrent liabilities—liabilities from derivative contracts ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivatives not designated as hedging contracts under ASC 815 $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table summarizes the location and amounts of the Company's realized and unrealized gains and losses on derivative contracts in the Company's unaudited condensed consolidated statements of operations: Amount of gain or (loss) recognized in income on derivative contracts for the Three Months Ended June 30, Amount of gain or (loss) recognized in income on derivative contracts for the Six Months Ended June 30, Location of gain or (loss) recognized in income on derivative contracts Derivatives not designated as hedging contracts under ASC 815 2015 2014 2015 2014 (In thousands) Commodity contracts: Unrealized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts $ ) $ ) $ ) $ ) Realized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total net gain (loss) on derivative contracts $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At June 30, 2015 and December 31, 2014, the Company had the following open crude oil and natural gas derivative contracts: June 30, 2015 Floors Ceilings Period Instrument Commodity Volume in Mmbtu's/ Bbl's Price / Price Range Weighted Average Price Price / Price Range Weighted Average Price July 2015 - December 2015 (1) Collars Crude Oil $82.50 - 90.00 $ $90.00 - 100.25 $ July 2015 - December 2015 Collars Natural Gas 4.00 4.55 - 4.85 July 2015 - December 2015 (2) Swaps Crude Oil 91.00 - 92.75 January 2016 - June 2016 Collars Crude Oil 90.00 96.85 January 2016 - December 2016 Collars Natural Gas 4.00 4.22 January 2016 - December 2016 (3) Collars Crude Oil 60.00 - 90.00 64.00 - 95.10 January 2016 - December 2016 (4) Swaps Crude Oil 62.00 - 91.73 January 2017 - December 2017 Collars Crude Oil 50.00 - 60.00 70.00 - 76.84 December 31, 2014 Floors Ceilings Period Instrument Commodity Volume in Mmbtu's/ Bbl's Price / Price Range Weighted Average Price Price / Price Range Weighted Average Price January 2015 - June 2015 Collars Crude Oil $85.00 - 90.00 $ $91.00 - 98.50 $ January 2015 - December 2015 (1) Collars Crude Oil 82.50 - 90.00 90.00 - 100.25 January 2015 - December 2015 Collars Natural Gas 4.00 4.55 - 4.85 January 2015 - December 2015 (2) Swaps Crude Oil 91.00 - 92.75 March 2015 - December 2015 Collars Crude Oil 87.50 92.50 April 2015 - December 2015 Collars Crude Oil 87.50 92.50 July 2015 - December 2015 Collars Crude Oil 85.00 - 87.50 90.00 - 92.50 January 2016 - June 2016 Collars Crude Oil 90.00 96.85 January 2016 - December 2016 Collars Crude Oil 87.50 - 90.00 92.70 - 95.10 January 2016 - December 2016 Collars Natural Gas 4.00 4.22 January 2016 - December 2016 (4) Swaps Crude Oil 88.00 - 91.73 (1) Includes an outstanding crude oil collar which may be extended by the counterparty at a floor of $85.00 per Bbl and a ceiling of $96.20 per Bbl for a total of 732,000 Bbls for the year ended December 31, 2016. Also includes an outstanding crude oil collar which may be extended by the counterparty at a floor of $85.00 per Bbl and a ceiling of $96.00 per Bbl for a total of 366,000 Bbls for the year ended December 31, 2016. (2) Includes an outstanding crude oil swap of which may be extended by the counterparty at a price of $91.25 per Bbl for 732,000 Bbls for the year ended December 31, 2016. Also includes certain outstanding crude oil swaps which may be extended by the counterparty at a price of $91.00 per Bbl totaling 366,000 Bbls for the year ended December 31, 2016. (3) Includes an outstanding crude oil collar which may be extended by the counterparty at a floor of $60.00 per Bbl and a ceiling of $75.00 per Bbl for a total of 365,000 Bbls for the year ended December 31, 2017. (4) Includes an outstanding crude oil swap which may be extended by the counterparty at a price of $88.25 per Bbl for a total of 730,000 Bbls for the year ended December 31, 2017. Also includes certain outstanding crude oil swaps which may be extended by the counterparty at a price of $88.00 per Bbl totaling 912,500 Bbls for the year ended December 31, 2017. Includes an outstanding crude oil swap which may be extended by the counterparty at a price of $88.87 per Bbl totaling 547,500 Bbls for the year ended December 31, 2017. The Company presents the fair value of its derivative contracts at the gross amounts in the unaudited condensed consolidated balance sheets. The following table shows the potential effects of master netting arrangements on the fair value of the Company's derivative contracts at June 30, 2015 and December 31, 2014: Derivative Assets Derivative Liabilities Offsetting of Derivative Assets and Liabilities June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 (In thousands) Gross Amounts Presented in the Consolidated Balance Sheet $ $ $ ) $ ) Amounts Not Offset in the Consolidated Balance Sheet ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Amount $ $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company enters into an International Swap Dealers Association Master Agreement (ISDA) with each counterparty prior to a derivative contract with such counterparty. The ISDA is a standard contract that governs all derivative contracts entered into between the Company and the respective counterparty. The ISDA allows for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of both parties, for transactions that occur on the same date and in the same currency.

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS	6 Months Ended
	Jun. 30, 2015
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS	7. ASSET RETIREMENT OBLIGATIONS The Company records an asset retirement obligation (ARO) on oil and natural gas properties when it can reasonably estimate the fair value of an obligation to perform site reclamation, dismantle facilities or plug and abandon costs. For gas gathering systems and equipment, the Company records an ARO when the system is placed in service and it can reasonably estimate the fair value of an obligation to perform site reclamation and other necessary work when it is required. The Company records the ARO liability on the unaudited condensed consolidated balance sheets and capitalizes a portion of the cost in " Oil and natural gas properties " or " Other operating property and equipment " during the period in which the obligation is incurred. The Company records the accretion of its ARO liabilities in " Depletion, depreciation and accretion " expense in the unaudited condensed consolidated statements of operations. The additional capitalized costs are depreciated on a unit-of-production basis or straight-line basis. The Company recorded the following activity related to its ARO liability for the six months ended June 30, 2015 (in thousands, inclusive of the current portion): Liability for asset retirement obligations as of December 31, 2014 $ Liabilities settled and divested ) Additions Accretion expense ​ ​ ​ ​ ​ Liability for asset retirement obligations as of June 30, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Commitments The Company leases corporate office space in Houston, Texas; and Denver, Colorado as well as a number of other field office locations. Rent expense was approximately $4.3 million and $4.0 million for the six months ended June 30, 2015 and 2014, respectively. As of June 30, 2015, the amount of commitments under office and equipment lease agreements is consistent with the levels at December 31, 2014, as disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014, approximating $55.4 million in the aggregate, and containing various expiration dates through 2024. In addition, the Company has commitments for certain equipment under long-term operating lease agreements, namely drilling rigs as well as pipeline and well equipment, with various expiration dates through 2018. In January 2015, the Company made the decision to early terminate a drilling rig contract in response to the recent decline in crude oil prices, and as such, the Company incurred an early termination fee of $6.0 million, paid over the first half of 2015. If certain requirements are not met by two separate trigger dates, the first being January 1, 2017 and the second being January 12, 2020, the Company may incur up to an additional $3.0 million in connection with this drilling rig contract. In addition, the Company has a new drilling rig commitment, that began on May 1, 2015, for which the Company is incurring a stacking fee of $17,000 per day. The contract term for this drilling rig commitment extends through the second quarter of 2018. Early termination of the Company's other drilling rig commitments would result in termination penalties approximating $39.1 million, which would be in lieu of the remaining $58.9 million of drilling rig commitments as of June 30, 2015. The Company has entered into various long-term gathering, transportation and sales contracts in its Bakken/Three Forks formations in North Dakota. As of June 30, 2015, the Company had in place ten long-term crude oil contracts and six long-term natural gas contracts in this area. Under the terms of these contracts, the Company has committed a substantial portion of its Bakken/Three Forks production for periods ranging from one to ten years from the date of first production. The sales prices under these contracts are based on posted market rates. Historically, the Company has been able to meet its delivery commitments. On December 20, 2013, the Company entered into a carry and earning agreement, as amended (the Agreement) with an independent third party (Seller) associated with the acquisition of certain properties believed to be prospective for the Tuscaloosa Marine Shale (TMS), primarily in Wilkinson County, Mississippi and in West Feliciana and East Feliciana Parishes, Louisiana. The Agreement required the Company to fund up to $189.4 million (the Carry Amount) in exchange for approximately 117,870 net acres. The Company paid $62.5 million of the Carry Amount at closing on February 28, 2014 and the remaining $126.9 million during the three months ended June 30, 2014, reflected as " Advance on carried interest " in the accompanying unaudited condensed consolidating statements of cash flows. The Carry Amount is to be used by the Seller to fund wells prospective for the TMS to be drilled by the Seller (the Carry Wells) on the Seller's retained acreage. As part of the transaction, the Company will also receive a 5% working interest in the Carry Wells. As of December 31, 2014, approximately $71.9 million of the Carry Amount remained in escrow to be spent by the Seller and as of June 30, 2015, the Carry Amount was fully expended. On June 16, 2014, the Company entered into a transaction to develop its TMS assets with funds and accounts managed by affiliates of Apollo Global Management, LLC. See Note 9, " Mezzanine Equity ," for a discussion of the drilling obligation associated with the transaction. Contingencies From time to time, the Company may be a plaintiff or defendant in a pending or threatened legal proceeding arising in the normal course of its business. While the outcome and impact of currently pending legal proceedings cannot be determined, the Company's management and legal counsel believe that the resolution of these proceedings through settlement or adverse judgment will not have a material effect on the Company's unaudited condensed consolidated operating results, financial position or cash flows.

MEZZANINE EQUITY

MEZZANINE EQUITY	6 Months Ended
	Jun. 30, 2015
MEZZANINE EQUITY
MEZZANINE EQUITY	9. MEZZANINE EQUITY On June 16, 2014, funds and accounts managed by affiliates of Apollo Global Management, LLC (Apollo) contributed $150 million in cash to HK TMS, LLC, a wholly owned Delaware limited liability company (HK TMS), that, as of June 16, 2014 held all of the Company's undeveloped acreage in Mississippi and Louisiana that management believes is prospective for the TMS formation, in exchange for the issuance by HK TMS of 150,000 preferred shares. At the closing, the Company also contributed $50 million in cash to HK TMS. Holders of the HK TMS preferred shares will receive quarterly cash dividends of 8% cumulative perpetual per annum, subject to HK TMS' option to pay such dividends "in-kind" through the issuance of additional preferred shares. The preferred shares will be automatically redeemed and cancelled when the holders receive cash dividends and distributions on the preferred shares equating to the greater of a 12% annual rate of return plus principal and 1.25 times their investment plus applicable fees (the Redemption Price), subject to adjustment under certain circumstances. The preferred shares have a liquidation preference in the event of dissolution in an amount equal to the Redemption Price plus any unpaid dividends not otherwise included in the calculation of the Redemption Price through the date of liquidation payment. HK TMS may also redeem the preferred shares at any time after December 31, 2016 by paying the Redemption Price, or may be required to redeem the preferred shares for the Redemption Price plus certain fees under certain circumstances. On June 1, 2015, HK TMS and Apollo entered into an amendment to the original agreement (the HK TMS Amendment) which, among other things, i) commits HK TMS to drill a minimum of 6.5 net wells in each of the five consecutive twelve month periods beginning December 31, 2015 and ii) allows for the redemption of preferred shares at the Redemption Price between March 1, 2016 and June 30, 2016 at the election of Apollo and to the extent there is available cash above the minimum cash balance, which is discussed further below. For any commitment period in which HK TMS does not meet its drilling obligation, HK TMS must use available cash, above the minimum cash balance, to redeem preferred shares at the Redemption Price. The preferred shares have been classified as " Redeemable noncontrolling interest " and included in " Mezzanine equity " between total liabilities and stockholders' equity on the unaudited condensed consolidated balance sheets pursuant to ASC 480-10-S99-3A. The preferred shares, while not currently redeemable, are considered probable of becoming redeemable and therefore will be subsequently remeasured each reporting period by accreting the initial value to the estimated required redemption value through March 1, 2016. The accretion is presented as a deemed dividend and recorded in " Redeemable noncontrolling interest " on the unaudited condensed consolidated balance sheet and within " Preferred dividends and accretion on redeemable noncontrolling interest " on the unaudited condensed consolidated statements of operations. In accordance with ASC 480-10-S99-3A, an adjustment to the carrying amount presented in " Mezzanine equity " will be recognized as charges against retained earnings and will reduce income available to common shareholders in the calculation of earnings per share. Adjustments to the carrying amount may not be necessary if the application of ASC No. 810, Consolidation (ASC 810) results in a noncontrolling interest balance in excess of what is required pursuant to ASC 480-10-S99-3A. Under certain circumstances, Apollo could have acquired up to an additional 250,000 preferred shares of HK TMS on the same terms, with HK TMS receiving up to an additional $250 million in cash proceeds (Tranche Rights). The Tranche Rights were recognized separately as a liability instrument within " Other noncurrent liabilities " in the unaudited condensed consolidated balance sheets, as of December 31, 2014, in accordance with ASC 480 as the shares underlying the Tranche Rights were redeemable equity instruments. The Tranche Rights were subsequently remeasured at fair value each reporting period in accordance with ASC 480, with fair value changes recorded in " Interest expense and other, net " on the unaudited condensed consolidated statements of operations. In March 2015, Apollo delivered a withdrawal notice to HK TMS indicating their election not to participate in the Tranche Rights (the Withdrawal Notice). As such, the fair value of the liability associated with the Tranche Rights was expensed during the three months ended March 31, 2015. Upon issuance of the Withdrawal Notice, HK TMS incurs a fee escalating from $2.50 per share to $20.00 per share for the next eight full fiscal quarters for any preferred shares then outstanding, beginning in the three months ended June 30, 2015 (the Withdrawal Exit Fee). The Withdrawal Exit Fee is payable upon redemption of the preferred shares. For the three months ended June 30, 2015, HK TMS incurred Withdrawal Exit Fees of $0.4 million, which were recorded at fair value within " Other noncurrent liabilities " on the unaudited condensed consolidated balance sheets. In conjunction with the issuance of the preferred shares, HK TMS conveyed a 4.0% overriding royalty interest (ORRI), subject to reduction to 2.0% under certain circumstances, in 75 net wells to be drilled and completed on its TMS acreage. The number of wells subject to the ORRI would have increased to the extent that Apollo subscribed for additional preferred shares, with a maximum of 200 net operated wells subject to such ORRI if Apollo subscribed for the full additional 250,000 preferred shares. However, upon issuance of the Withdrawal Notice, Apollo forfeited the rights to the ORRI in the additional 125 wells. The ORRI has been recognized separately as a conveyance of oil and natural gas properties in "Unevaluated properties" on the unaudited condensed consolidated balance sheets. As part of the transaction, there are certain restrictions on the transfer of assets, including cash, to the Company from HK TMS. HK TMS is required to maintain a minimum cash balance equal to two quarterly dividend payments, of approximately $3.0 million each, plus $10.0 million, which is presented on the unaudited condensed consolidated balance sheets in " Restricted cash ." Additionally, the quarterly 8% dividends paid to holders of the HK TMS preferred shares have priority over other cash distributions. No dividends shall be paid to the Company from HK TMS prior to December 31, 2016. HK TMS is restricted from transferring more than 20% of its maximum net acres and from transferring any assets exceeding 20% of HK TMS's proved reserves at any one time without approval from the Company and Apollo. Finally, proceeds from any such transfers of acres or other assets must be used for HK TMS's capital or operating expenditures, or to redeem preferred shares. For purposes of estimating the fair values of the original and amended transaction components, an income approach was used that estimated fair value based on the anticipated cash flows associated with the Company's proved reserves, discounted using a weighted average cost of capital rate. The estimation of the fair value of these components includes the use of unobservable inputs, such as estimates of proved reserves, the weighted average cost of capital (discount rate), estimated future revenues, and estimated future capital and operating costs. The use of these unobservable inputs results in the fair value estimates being classified as Level 3. Although the Company believes the assumptions and estimates used in the fair value calculation of the original and amended transaction components are reasonable and appropriate, different assumptions and estimates could materially impact the analysis and resulting conclusions. The assumptions used in estimating the fair value of the original and amended transaction components are inherently uncertain and require management judgment. The following table sets forth a reconciliation of the changes in fair value of the Tranche Rights and embedded derivative classified as Level 3 in the fair value hierarchy (in thousands): Tranche rights Embedded derivative Balances at December 31, 2014 $ ) $ Change in fair value ​ ​ ​ ​ ​ ​ ​ ​ Balances at June 30, 2015 $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The Company recorded the following activity related to the preferred shares recorded in "Mezzanine equity" for the six months ended June 30, 2015 (in thousands, except share amounts): Redeemable noncontrolling interest Shares Amount Balances at December 31, 2014 $ Dividends paid in-kind Accretion of redeemable noncontrolling interest — Deemed dividend for change in fair value due to the HK TMS Amendment — ​ ​ ​ ​ ​ ​ ​ ​ Balances at June 30, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the six months ended June 30, 2015, HK TMS issued 6,131 additional preferred shares to Apollo for dividends paid-in-kind. These dividends are presented within " Preferred dividends and accretion on redeemable noncontrolling interest " on the unaudited condensed consolidated statements of operations. Upon the election of in-kind dividends, HK TMS must pay a fee of $5.00 per preferred share then outstanding (PIK Exit Fee). Such fees will be due upon redemption of the preferred shares. For the six months ended June 30, 2015, HK TMS incurred PIK Exit Fees totaling $1.5 million, which were recorded at fair value within " Other noncurrent liabilities " on the unaudited condensed consolidated balance sheets.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	10. STOCKHOLDERS' EQUITY 5.75% Series A Convertible Perpetual Preferred Stock On June 18, 2013, the Company completed its offering of 345,000 shares of its 5.75% Series A Convertible Perpetual Preferred Stock (the Series A Preferred Stock) at a public offering price of $1,000 per share (the Liquidation Preference). The net proceeds to the Company were approximately $335.2 million, after deducting the underwriting discount and offering expenses. The Company used the net proceeds to repay a portion of the then outstanding borrowings under its Senior Credit Agreement. Holders of the Series A Preferred Stock are entitled to receive, when, as and if declared by the Company's Board of Directors, cumulative dividends at the rate of 5.75% per annum (the Dividend Rate) on the Liquidation Preference per share of the Series A Preferred Stock, payable quarterly in arrears on each dividend payment date. Dividends may be paid in cash or, where freely transferable by any non-affiliate recipient thereof, in common stock of the Company, or a combination thereof, and are payable on March 1, June 1, September 1 and December 1 of each year. During the six months ended June 30, 2015, the Company incurred cumulative, declared dividends of $9.8 million by issuing approximately 6.8 million shares of common stock. As of June 30, 2015, cumulative, undeclared dividends on the Series A Preferred Stock amounted to approximately $1.6 million. The Series A Preferred Stock has no maturity date, is not redeemable by the Company at any time, and will remain outstanding unless converted by the holders or mandatorily converted by the Company. Each share of Series A Preferred Stock is convertible, at the holder's option at any time, into approximately 162.4431 shares of common stock of the Company (which is equivalent to a conversion price of approximately $6.16 per share), subject to specified adjustments as set forth in the Series A Designation. Based on the initial conversion rate and preferred shares outstanding, approximately 56.0 million shares of common stock of the Company would be issuable upon conversion of all the shares of Series A Preferred Stock. On or after June 6, 2018, the Company may, at its option, give notice of its election to cause all outstanding shares of the Series A Preferred Stock to be automatically converted into shares of common stock of the Company at the conversion rate (as defined in the Series A Designation), if the closing sale price of the Company's common stock equals or exceeds 150% of the conversion price for at least 20 trading days in a period of 30 consecutive trading days. As of June 30, 2015, 4,040 shares of Series A Preferred Stock have been converted into 656,269 shares of common stock. If the Company undergoes a fundamental change (as defined in the Series A Designation) and a holder converts its shares of the Series A Preferred Stock at any time beginning at the opening of business on the trading day immediately following the effective date of such fundamental change and ending at the close of business on the 30th trading day immediately following such effective date, the holder will receive, for each share of the Series A Preferred Stock surrendered for conversion, a number of shares of common stock of the Company equal to the greater of: (1) the sum of (i) the conversion rate and (ii) the make-whole premium, if any, as described in the Series A Designation; and (2) the conversion rate which will be increased to equal (i) the sum of the $1,000 liquidation preference plus all accumulated and unpaid dividends to, but excluding, the settlement date for such conversion, divided by (ii) the average of the closing sale prices of the Company's common stock for the five consecutive trading days ending on the third business day prior to such settlement date; provided that the prevailing conversion rate as adjusted pursuant to this will not exceed 292.3977 shares of common stock of the Company per share of the Series A Preferred Stock (subject to adjustment in the same manner as the conversion rate). Except as required by Delaware law, holders of the Series A Preferred Stock will have no voting rights unless dividends are in arrears and unpaid for six or more quarterly periods. Until such arrearage is paid in full, the holders (voting as a single class with the holders of any other preferred shares having similar voting rights) will be entitled to elect two additional directors and the number of directors on the Company's Board of Directors will increase by that same number. Common Stock During the second quarter of 2015, the Company entered into several exchange agreements with existing holders of the Company's senior unsecured notes in which the holders agreed to exchange an aggregate $258.0 million principal amount of their senior notes for approximately 144.8 million shares of the Company's common stock. The Company recorded the issuance of common shares at fair value on the various dates the debt for equity exchanges occurred. On March 18, 2015, the Company entered into an Equity Distribution Agreement (the Equity Distribution Agreement) with BMO Capital Markets Corp., Jefferies LLC and MLV & Co. LLC (collectively, the Managers). Pursuant to the terms of the Equity Distribution Agreement, the Company may sell, from time to time through the Managers, shares of its common stock having an aggregate offering price of up to $150 million (the Shares). Sales of the Shares, if any, will be made by means of ordinary brokers' transactions through the facilities of the New York Stock Exchange at market prices, or as otherwise agreed by the Company and the Managers. For the six months ended June 30, 2015, the Company sold approximately 9.4 million shares for net proceeds of approximately $15.1 million, after deducting offering expenses. The shares sold have been registered under the Securities Act pursuant to a Registration Statement on Form S-3 (No. 333-188640), which was filed with the SEC and became effective March 13, 2015. The Company plans to use any net proceeds from the offering to repay a portion of outstanding borrowings under its Senior Credit Agreement and for general corporate purposes. On May 22, 2014, with stockholder approval, the Company filed a Certificate of Amendment of the Amended and Restated Certificate of Incorporation with the Delaware Secretary of State to increase its authorized common stock by approximately 670.0 million shares for a total of 1.34 billion authorized shares of common stock. Warrants In February 2012, in conjunction with the issuance of the Convertible Notes, the Company issued warrants to purchase 36.7 million shares of the Company's common stock at an exercise price of $4.50 per share of common stock, which the Company refers to as the February 2012 Warrants. The Company allocated $43.6 million to the February 2012 Warrants which is reflected in additional paid-in capital in stockholders' equity, net of $0.6 million in issuance costs. The February 2012 Warrants entitled the holders to exercise the warrants in whole or in part at any time prior to the expiration date of February 8, 2017. On March 9, 2015, in conjunction with the HALRES Note Amendment, the Company entered into an amendment to the February 2012 Warrants, the Warrant Amendment, which extends the term of the February 2012 Warrants from February 8, 2017 to February 8, 2020 and adjusts the exercise price of the February 2012 Warrants to $2.44 per share. The Amendments were approved by the Company's stockholders on May 6, 2015, in accordance with the rules of the New York Stock Exchange. The Company expensed approximately $14.1 million for the change in the fair value of the February 2012 Warrants immediately before and after the Warrant Amendment in " Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants " on the unaudited condensed consolidated statements of operations. See Note 4, " Long-term debt ," for further discussion of the Amendments. Incentive Plan On May 8, 2006, the Company's stockholders first approved the 2006 Long-Term Incentive Plan (the Plan). On May 6, 2015, shareholders last approved an increase in authorized shares under the Plan from 41.5 million to 81.5 million. As of June 30, 2015 and December 31, 2014, a maximum of 42.4 million and 5.1 million shares of common stock, respectively, remained reserved for issuance under the Plan. The Company accounts for share-based payment accruals under authoritative guidance on stock compensation, as set forth in ASC 718. The guidance requires all share-based payments to employees and directors, including grants of performance units, stock options, and restricted stock, to be recognized in the financial statements based on their fair values. For the three and six months ended June 30, 2015, the Company recognized $3.4 million and $8.2 million, respectively, of share-based compensation expense. For the three and six months ended June 30, 2014, the Company recognized $4.9 million and $9.2 million, respectively, of share-based compensation expense. These were recorded as a component of " General and administrative " on the unaudited condensed consolidated statements of operations. Performance Share Units During the three months ended March 31, 2014, the Company granted performance share units (PSU) under the Plan covering 1.6 million shares of common stock to senior management of the Company. The PSU provides that the number of shares of common stock received upon vesting will vary if the market price of the Company's common stock exceeds certain pre-established target thresholds as measured by the average of the adjusted closing price of a share of the Company's common stock during the sixty trading days preceding the third anniversary of issuance, or the measurement date. The PSU utilizes $4.00 as the floor price, below which the PSU will not vest and will expire. If the average market price at the measurement date is equal to $4.00, the PSU will vest and represent the right to receive 50% of the number of shares of common stock underlying the PSU. At $7.00, the PSU will vest and represent the right to receive the full number of shares of common stock underlying the PSU; and at $10.00, the PSU will vest and represent the right to receive 200% of the number of shares of common stock underlying the PSU. All stock price targets are subject to customary adjustments based upon changes in the Company's capital structure. In the event the average market price falls between targeted price thresholds, the PSU will represent the right to receive a proportionate number of shares, e.g., 75% of the number of shares of common stock underlying the PSU if the average market price at such time is $5.50, 150% of the number of shares of common stock underlying the PSU if the average market price at such time is $8.50, and so forth. The Company has reserved for issuance under the Plan the maximum number of shares that participants might have the right to receive upon vesting of the PSU, or 3.2 million shares of common stock. At June 30, 2015, the Company had $2.7 million of unrecognized compensation expense related to non-vested PSU to be recognized over a weighted-average period of 1.7 years. Stock Options During the six months ended June 30, 2015, the Company granted stock options under the Plan covering 3.6 million shares of common stock to employees of the Company. These stock options have exercise prices ranging from $1.57 to $1.97 with a weighted average exercise price of $1.92. These awards typically vest over a three year period at a rate of one-third on the annual anniversary date of the grant and expire ten years from the grant date. At June 30, 2015, the Company had $9.0 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 1.3 years. During the six months ended June 30, 2014, the Company granted stock options under the Plan covering 6.2 million shares of common stock to employees of the Company. The stock options have exercise prices ranging from $3.67 to $6.58 with a weighted average exercise price of $3.69. These awards typically vest over a three year period at a rate of one-third on the annual anniversary date of the grant and expire ten years from the grant date. At June 30, 2014, the Company had $16.9 million of unrecognized compensation expense related to non-vested stock options to be recognized over a weighted-average period of 1.3 years. Restricted Stock During the six months ended June 30, 2015, the Company granted 2.4 million shares of restricted stock under the Plan to directors and employees of the Company. These restricted shares were granted at prices ranging from $1.22 to $1.97 with a weighted average price of $1.74. Employee shares vest over a three year period at a rate of one-third on the annual anniversary date of the grant, and the non-employee directors' shares vest six-months from the date of grant. At June 30, 2015, the Company had $13.4 million of unrecognized compensation expense related to non-vested restricted stock awards to be recognized over a weighted-average period of 1.3 years. During the six months ended June 30, 2014, the Company granted 3.9 million shares of restricted stock under the Plan to directors and employees of the Company. These restricted shares were granted at prices ranging from $3.67 to $6.58 with a weighted average price of $3.84. Employee shares vest over a three year period at a rate of one-third on the annual anniversary date of the grant, and the non-employee directors' shares vest six-months from the date of grant. At June 30, 2014, the Company had $17.9 million of unrecognized compensation expense related to non-vested restricted stock awards to be recognized over a weighted-average period of 1.4 years.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
INCOME TAXES
INCOME TAXES	11. INCOME TAXES Under guidance contained in ASC 740, deferred taxes are determined by applying the provisions of enacted tax laws and rates for the jurisdictions in which the Company operates to the estimated future tax effects of the differences between the tax basis of assets and liabilities and their reported amounts in the Company's financial statements. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. In assessing the need for a valuation allowance on the Company's deferred tax assets, the Company considers possible sources of taxable income that may be available to realize the benefit of deferred tax assets, including projected future taxable income, the reversal of existing temporary differences, taxable income in carryback years and available tax planning strategies. The Company considers all available evidence (both positive and negative) in determining whether a valuation allowance is required. A significant item of objective negative evidence considered was the cumulative book loss over the three-year period ended December 31, 2014 driven primarily by the full cost ceiling impairments over that period, which limits the ability to consider other subjective evidence such as the Company's anticipated future growth. Based upon the evaluation of the available evidence the Company continued to record a valuation allowance against its net deferred tax assets as of June 30, 2015. The Company recorded an income tax provision of $0.2 million on a pre-tax loss of $1.7 billion for the six months ended June 30, 2015 due to the current state tax provision of $0.3 million, an increase to the refund related to the IRS audit of the 2010-2012 GeoResources returns and the valuation allowance. For the six months ended June 30, 2014, the Company recorded no income tax expense or benefit on a pre-tax loss of $140.4 million due to the valuation allowance. The effective tax rate was 0.0% for the six months ended June 30, 2015 and 2014. During the first quarter of 2014, the Internal Revenue Service commenced an audit of GeoResources' tax returns for the tax years ending December 31, 2010 through August 1, 2012. The audit closed during April 2015 resulting in a favorable adjustment to the Company.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2015
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE	12. EARNINGS PER COMMON SHARE The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic: Net income (loss) available to common stockholders $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per share of common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: Net income (loss) available to common stockholders $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding Common stock equivalent shares representing shares issuable upon: Exercise of stock options Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Exercise of February 2012 Warrants Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Vesting of restricted shares Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Vesting of performance units — — — — Conversion of Convertible Notes Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Conversion of Series A preferred stock Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share of common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common stock equivalents, including stock options, warrants, restricted shares, convertible debt, and preferred stock, totaling 241.3 million and 240.9 million shares for the three and six months ended June 30, 2015, respectively, were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive due to the net losses. Common stock equivalents, including stock options, warrants, restricted shares, convertible debt, and preferred stock, totaling 179.9 million and 176.8 million shares for the three and six months ended June 30, 2014, respectively, were not included in the computation of diluted earnings per share of common stock because the effect would have been anti-dilutive due to the net losses.

ADDITIONAL FINANCIAL STATEMENT

ADDITIONAL FINANCIAL STATEMENT INFORMATION	6 Months Ended
	Jun. 30, 2015
ADDITIONAL FINANCIAL STATEMENT INFORMATION
ADDITIONAL FINANCIAL STATEMENT INFORMATION	13. ADDITIONAL FINANCIAL STATEMENT INFORMATION Certain balance sheet amounts are comprised of the following: June 30, 2015 December 31, 2014 (In thousands) Accounts receivable: Oil, natural gas and natural gas liquids revenues $ $ Joint interest accounts Accrued settlements on derivate contracts Affiliated partnership Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prepaids and other: Prepaids $ $ Income tax receivable — Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities: Trade payables $ $ Accrued oil and natural gas capital costs Revenues and royalties payable Accrued interest expense Accrued employee compensation Accrued lease operating expenses Drilling advances from partners Affiliated partnership Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

CONDENSED CONSOLIDATING FINANCI

CONDENSED CONSOLIDATING FINANCIAL INFORMATION	6 Months Ended
	Jun. 30, 2015
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
CONDENSED CONSOLIDATING FINANCIAL INFORMATION	14. CONDENSED CONSOLIDATING FINANCIAL INFORMATION The Company's Secured Notes are secured by second-priority liens on substantially all of the Company's and its guarantors' assets to the extent such assets secure the Company's Senior Credit Agreement. The Collateral does not include any of the assets of HK TMS, or any of the Company's future unrestricted subsidiaries. The Company's senior notes, other than the Secured Notes, are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company's existing 100% owned subsidiaries, other than HK TMS. See Note 4, " Long-term Debt ," for information regarding the Company's Secured Notes, Senior Credit Agreement and senior notes. On June 16, 2014, the Company contributed undeveloped acreage in Mississippi and Louisiana that management believes is prospective for the TMS into HK TMS. See Note 9, " Mezzanine Equity ," for a discussion of the restrictions on the transfer of assets between the Company and HK TMS. The following condensed consolidating balance sheets, condensed consolidating statements of operations, and condensed consolidating statements of cash flows for the parent company, subsidiary guarantors on a combined basis, the non-guarantor subsidiary, the consolidating adjustments and the total consolidated amounts are presented as of June 30, 2015 and December 31, 2014 and for the three and six months ended June 30, 2015 and 2014. Investments in the subsidiaries are accounted for under the equity method. Such condensed consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had these subsidiaries operated as independent entities. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $ — $ $ $ — $ Natural gas — — — Natural gas liquids — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil, natural gas and natural gas liquids sales — — Other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Production: Lease operating — — Workover and other — — — Taxes other than income — — Gathering and other — — — Restructuring — — — General and administrative ) Depletion, depreciation and accretion ) Full cost ceiling impairment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) ) Other income (expenses): Net gain (loss) on derivative contracts — ) — — ) Interest expense and other, net ) ) — ) Gain (loss) on extinguishment of debt — — — Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other income (expenses) ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) Income tax benefit (provision) — ) — ) ) Equity in earnings of subsidiary, net of tax ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) Series A preferred dividends ) — — — ) Preferred dividends and accretion on redeemable noncontrolling interest — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $ — $ $ $ — $ Natural gas — — — Natural gas liquids — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil, natural gas and natural gas liquids sales — — Other — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Production: Lease operating — — Workover and other — — — Taxes other than income — Gathering and other — — — General and administrative ) Depletion, depreciation and accretion Other operating property and equipment impairment — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) Other income (expenses): Net gain (loss) on derivative contracts — ) — — ) Interest expense and other, net ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other income (expenses) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) Income tax benefit (provision) — ) ) — Equity in earnings of subsidiary, net of tax ) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) Series A preferred dividends ) — — — ) Preferred dividends and accretion on redeemable noncontrolling interest — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders $ ) $ $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $ — $ $ $ — $ Natural gas — — — Natural gas liquids — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil, natural gas and natural gas liquids sales — — Other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Production: Lease operating — — Workover and other — — Taxes other than income — — Gathering and other — — — Restructuring — — — General and administrative ) Depletion, depreciation and accretion ) Full cost ceiling impairment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) ) Other income (expenses): Net gain (loss) on derivative contracts — — — Interest expense and other, net ) ) ) ) Gain (loss) on extinguishment of debt — — — Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other income (expenses) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) Income tax benefit (provision) — ) — ) Equity in earnings of subsidiary, net of tax ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) Series A preferred dividends ) — — — ) Preferred dividends and accretion on redeemable noncontrolling interest — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $ — $ $ $ — $ Natural gas — — — Natural gas liquids — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil, natural gas and natural gas liquids sales — — Other — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Production: Lease operating — — Workover and other — — — Taxes other than income — Gathering and other — — — Restructuring — — — General and administrative ) Depletion, depreciation and accretion Full cost ceiling impairment — — — Other operating property and equipment impairment — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) Other income (expenses): Net gain (loss) on derivative contracts — ) — — ) Interest expense and other, net ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other income (expenses) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) Income tax benefit (provision) — ) ) — Equity in earnings of subsidiary, net of tax ) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) Series A preferred dividends ) — — — ) Preferred dividends and accretion on redeemable noncontrolling interest — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders $ ) $ $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Current assets: Cash $ — $ $ $ — $ Accounts receivable — ) Receivables from derivative contracts — — — Restricted cash — — — Inventory — — Prepaids and other — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and natural gas properties (full cost method): Evaluated — ) Unevaluated — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross oil and natural gas properties — ) Less—accumulated depletion — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net oil and natural gas properties — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating property and equipment: Gas gathering and other operating assets — Less—accumulated depreciation ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other operating property and equipmentNet other operating property and equipment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other noncurrent assets: Receivables from derivative contracts — — — Debt issuance costs, net — — — Deferred income taxes — — Intercompany notes and accounts receivable — ) — Investment in subsidiary ) — — Equity in oil and natural gas partnership — — — Funds in escrow and other — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: Accounts payable and accrued liabilities $ — $ $ $ ) $ Asset retirement obligations — — — Current portion of deferred income taxes — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt — — — Other noncurrent liabilities: Liabilities from derivative contracts — — — Asset retirement obligations — — Intercompany notes and accounts payable — ) — Other — — Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest — — — Stockholders' equity: Preferred stock — — — — — Common stock — — — Additional paid-in capital — ) Retained earnings (accumulated deficit) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Current assets: Cash $ — $ $ $ — $ Accounts receivable — ) Receivables from derivative contracts — — — Restricted cash — — — Inventory — — Prepaids and other — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and natural gas properties (full cost method): Evaluated — ) Unevaluated — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross oil and natural gas properties — ) Less—accumulated depletion — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net oil and natural gas properties — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating property and equipment: Gas gathering and other operating assets — Less—accumulated depreciation ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other operating property and equipment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other noncurrent assets: Receivables from derivative contracts — — — Debt issuance costs, net — — — Deferred income taxes ) — — Intercompany notes and accounts receivable — ) — Investment in subsidiary — ) — Equity in oil and natural gas partnership — — — Funds in escrow and other — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: Accounts payable and accrued liabilities $ — $ $ $ ) $ Asset retirement obligations — — — Current portion of deferred income taxes — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt — — — Other noncurrent liabilities: Liabilities from derivative contracts — — — Asset retirement obligations — — Intercompany notes and accounts payable — ) — Other — Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest — — — Stockholders' equity: Preferred stock — — — — — Common stock — — — Additional paid-in capital — ) Retained earnings (accumulated deficit) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Cash flows from operating activities: Net cash provided by (used in) operating activities $ ) $ $ $ — $ Cash flows from investing activities: Oil and natural gas capital expenditures — ) ) — ) Proceeds received from sale of oil and natural gas assets — — — Advance on carried interest — — — — — Other operating property and equipment capital expenditures ) ) — ) Advances to subsidiary — — ) — Funds held in escrow and other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: Proceeds from borrowings — — — Repayments of borrowings ) — — — ) Debt issuance costs ) — — — ) Common stock issued — — — Restricted cash — — ) — ) Proceeds from subsidiary — ) — — Offering costs and other ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash — ) — ) Cash at beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash at end of period $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Cash flows from operating activities: Net cash provided by (used in) operating activities $ ) $ $ $ ) $ Cash flows from investing activities: Oil and natural gas capital expenditures — ) ) ) Proceeds received from sale of oil and natural gas assets — — Advance on carried interest — ) ) — ) Other operating property and equipment capital expenditures ) ) — — ) Advances to subsidiary ) ) — — Funds held in escrow and other — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: Proceeds from borrowings — — — Repayments of borrowings ) — — — ) Debt issuance costs ) — — — ) HK TMS, LLC preferred stock issued — — — HK TMS, LLC tranche rights — — — Preferred dividends on redeemable noncontrolling interest — — ) — ) Restricted cash — — ) — ) Proceeds from subsidiary — ) — Offering costs and other ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash ) ) — Cash at beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash at end of period $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

FINANCIAL STATEMENT PRESENTAT21

FINANCIAL STATEMENT PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2015
FINANCIAL STATEMENT PRESENTATION
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation Halcón Resources Corporation (Halcón or the Company) is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich assets in the United States. The unaudited condensed consolidated financial statements include the accounts of all majority-owned, controlled subsidiaries and an equity method investment. The Company operates in one segment which focuses on oil and natural gas acquisition, production, exploration and development. The Company's oil and natural gas properties are managed as a whole rather than through discrete operating areas. Operational information is tracked by operating area; however, financial performance is assessed as a whole. Allocation of capital is made across the Company's entire portfolio without regard to operating area. All intercompany accounts and transactions have been eliminated. These unaudited condensed consolidated financial statements reflect, in the opinion of the Company's management, all adjustments, consisting of normal and recurring adjustments, necessary to present fairly the financial position as of, and the results of operations for, the periods presented. During interim periods, Halcón follows the accounting policies disclosed in its 2014 Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (SEC) on February 26, 2015. Please refer to the notes in the 2014 Annual Report on Form 10-K when reviewing interim financial results.
Use of Estimates	Use of Estimates The preparation of the Company's unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, if any, at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the respective reporting periods. Estimates and assumptions that, in the opinion of management of the Company, are significant include oil and natural gas revenue, capital and operating expense accruals, oil and natural gas reserves, depletion relating to oil and natural gas properties, asset retirement obligations, fair value estimates and income taxes. The Company bases its estimates and judgments on historical experience and on various other assumptions and information that are believed to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company's operating environment changes. Actual results may differ from the estimates and assumptions used in the preparation of the Company's unaudited condensed consolidated financial statements. Interim period results are not necessarily indicative of results of operations or cash flows for the full year and accordingly, certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, has been condensed or omitted. The Company has evaluated events or transactions through the date of issuance of these unaudited condensed consolidated financial statements.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts The Company's accounts receivable are primarily receivables from joint interest owners and oil and natural gas purchasers. Accounts receivable are recorded at the amount due, less an allowance for doubtful accounts, when applicable. The Company establishes provisions for losses on accounts receivable if it determines that collection of all or part of the outstanding balance is doubtful. The Company regularly reviews collectability and establishes or adjusts the allowance for doubtful accounts as necessary using the specific identification method. There were no material allowances for doubtful accounts as of June 30, 2015 or December 31, 2014.
Other Operating Property and Equipment	Other Operating Property and Equipment Gas gathering systems and equipment are recorded at cost. Depreciation is calculated using the straight-line method over a 30-year or 10-year estimated useful life applicable to gas gathering systems and a compressed natural gas facility, respectively. Upon disposition, the cost and accumulated depreciation are removed and any gains or losses are reflected in current operations. Maintenance and repair costs are charged to operating expense as incurred. Material expenditures which increase the life or productive capacity of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The Company capitalized $85.3 million and $83.1 million as of June 30, 2015 and December 31, 2014, respectively, related to the construction of its gas gathering systems, after any amounts impaired. Other operating assets are recorded at cost. Depreciation is calculated using the straight-line method over the following estimated useful lives: automobiles and computers, three years; computer software, fixtures, furniture and equipment, five years or the lesser of the lease term; trailers, seven years; heavy equipment, ten years; buildings, twenty years and leasehold improvements, lease term. Upon disposition, the cost and accumulated depreciation are removed and any gains or losses are reflected in current operations. Maintenance and repair costs are charged to operating expense as incurred. Material expenditures which increase the life of an asset are capitalized and depreciated over the estimated remaining useful life of the asset. The Company reviews its gas gathering systems and equipment and other operating assets for impairment in accordance with ASC 360, Property, Plant, and Equipment (ASC 360). ASC 360 requires the Company to evaluate gas gathering systems and equipment and other operating assets for impairment as events occur or circumstances change that would more likely than not reduce the fair value below the carrying amount. If the carrying amount is not recoverable from an asset's undiscounted cash flows, then the Company recognizes an impairment loss for the difference between the carrying amount and the current fair value. The Company also evaluates the remaining useful lives of its gas gathering systems and other operating assets at each reporting period to determine whether events and circumstances warrant a revision to the remaining depreciation periods. Operating results for the six months ended June 30, 2014 reflect the impact of approximately $3.8 million in charges related to the disposition of midstream infrastructure assets associated with certain non-core property divestitures. The impairment of midstream assets was recorded in " Other operating property and equipment impairment " in the Company's unaudited condensed consolidated statements of operations and in " Gas gathering and other operating assets " in the Company's unaudited condensed consolidated balance sheets. In accordance with ASC 820, Fair Value Measurements and Disclosures (ASC 820), a financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The estimate of the fair value of the Company's gas gathering systems was based on an income approach that estimated future cash flows associated with those assets, which resulted in negative net cash flows due to insufficient throughput of natural gas volumes and certain fixed costs necessary to operate and maintain the assets. This estimation includes the use of unobservable inputs, such as estimated future production, gathering and compression revenues and operating expenses. The use of these unobservable inputs results in the fair value estimate of the Company's gas gathering systems being classified as Level 3.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Simplifying the Measurement of Inventory (ASU 2015-11). ASU 2015-11 states that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. For public entities, ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The amendments in this update should be applied prospectively and early application is permitted. The Company does not expect the adoption of ASU 2015-11 to have a material impact to its financial statements or disclosures. In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (ASU 2015-05). ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public business entities, the guidance is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. An entity can elect to adopt the guidance either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) restrospectively. Early adoption is permitted. The Company is in the process of assessing the effects of the application of the new guidance. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03). To simplify presentation of debt issuance costs, ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability, consistent with debt discounts. ASU 2015-03 is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted and entities shall apply the the guidance retrospectively to all prior year periods presented. The Company is in the process of assessing the effects of the application of the new guidance. In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis (ASU 2015-02). The amendments in ASU 2015-02 eliminate the previous presumption that a general partner controls a limited partner. ASU 2015-02 may impact the Company's accounting for its general partner interest in SBE Partners LP (SBE Partners), which is currently accounted for as an equity method investment. ASU 2015-02 is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Entites may apply the guidance using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the first fiscal year adopted or it may apply the amendment retrospectively. The Company is currently assessing the impact of ASU 2015-02 on its accounting for its general partner interest in SBE Partners. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (ASU 2014-15). ASU 2014-15 is effective for annual reporting periods (including interim periods within those periods) ending after December 15, 2016. Early application is permitted with companies applying the guidance prospectively. The amendments in ASU 2014-15 create a new ASC Sub-topic 205-40, Presentation of Financial Statements—Going Concern and require management to assess for each annual and interim reporting period if conditions exist that raise substantial doubt about an entity's ability to continue as a going concern. The rule requires various disclosures depending on the facts and circumstances surrounding an entity's ability to continue as a going concern. The Company is in the process of assessing the effects of the application of the new guidance. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09). ASU 2014-09 states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard provides five steps an entity should apply in determining its revenue recognition. ASU 2014-09 must be applied retrospectively and is effective for annual reporting periods, and interim periods within that reporting period, beginning after December 15, 2016, or after December 2017, if companies choose to elect the deferred adoption date recently approved by the FASB. Early adoption is not permitted. The Company is currently assessing the impact of the adoption of ASU 2014-09 on the Company's operating results, financial position and disclosures.

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2015
LONG-TERM DEBT.
Schedule of long-term debt	June 30, 2015 December 31, 2014 (In thousands) Senior revolving credit facility $ $ 8.625% senior secured notes due 2020 (1) — 9.25% senior notes due 2022 8.875% senior notes due 2021 (2) 9.75% senior notes due 2020 (3) 8.0% convertible note due 2020 (4) ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) On May 1, 2015, the Company completed the issuance of $700.0 million aggregate principal amount of its 8.625% senior secured notes due 2020. See "8.625% Senior Secured Notes" below for more details. (2) Amounts are net of a $4.1 million and a $4.6 million unamortized discount at June 30, 2015 and December 31, 2014, respectively, related to the issuance of the original 2021 Notes. The unamortized premium related to the additional 2021 Notes was approximately $22.1 million and $24.6 million at June 30, 2015 and December 31, 2014, respectively. See "8.875% Senior Notes" below for more details. (3) Amounts are net of a $5.9 million and a $7.9 million unamortized discount at June 30, 2015 and December 31, 2014, respectively, related to the issuance of the original 2020 Notes. The unamortized premium related to the additional 2020 Notes was approximately $8.1 million and $9.7 million at June 30, 2015 and December 31, 2014, respectively. See "9.75% Senior Notes" below for more details. (4) On May 6, 2015, an amendment to the 8.0% convertible note became effective and was accounted for as a debt extinguishment. Accordingly, the Company expensed the unamortized discount related to the pre-amendment 8.0% convertible note of $18.6 million and recorded a discount of $25.9 million to be amortized over the remaining life of the post-amendment 8.0% convertible note. The remaining unamortized discounts at June 30, 2015 and December 31, 2014 were $25.3 million and $21.8 million, respectively. See "8.0% Convertible Note" below for more details.
8.625% Senior Secured Notes
Long-term debt
Schedule of percentages of principal amount at which notes may be redeemed, by applicable redemption dates	Year Percentage 2017 2018 2019 and thereafter

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
Schedule of fair value of the Company's financial assets and liabilities	June 30, 2015 Level 1 Level 2 Level 3 Total (In thousands) Assets Receivables from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Liabilities from derivative contracts $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2014 Level 1 Level 2 Level 3 Total (In thousands) Assets Receivables from derivative contracts $ — $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities Liabilities from derivative contracts $ — $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of reconciliation of changes in the fair value of the Company's oil derivative instruments classified as Level 3 in the fair value hierarchy	Significant Unobservable Inputs (Level 3) June 30, 2015 December 31, 2014 (In thousands) Beginning Balance $ ) $ ) Net gain (loss) on derivative contracts Settlements — — Purchase of derivative contracts ) — Buy out of derivative contracts — — ​ ​ ​ ​ ​ ​ ​ ​ Ending Balance $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change in unrealized gains (losses) included in earnings related to derivatives still held at June 30, 2015 and December 31, 2014 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of the estimated fair values of the Company's fixed interest rate, long-term debt instruments	June 30, 2015 December 31, 2014 Debt Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value (In thousands) 8.625% senior secured notes $ $ $ — $ — 9.25% senior notes 8.875% senior notes 9.75% senior notes 8.0% convertible note ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

DERIVATIVE AND HEDGING ACTIVI24

DERIVATIVE AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2015
DERIVATIVE AND HEDGING ACTIVITIES
Summary of location and fair value of derivative contracts	Asset derivative contracts Liability derivative contracts Derivatives not designated as hedging contracts under ASC 815 Balance sheet location June 30, 2015 December 31, 2014 Balance sheet location June 30, 2015 December 31, 2014 (In thousands) (In thousands) Commodity contracts Current assets—receivables from derivative contracts $ $ Current liabilities—liabilities from derivative contracts $ — $ — Commodity contracts Other noncurrent assets—receivables from derivative contracts Other noncurrent liabilities—liabilities from derivative contracts ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivatives not designated as hedging contracts under ASC 815 $ $ $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Summary of the location and amounts of the Company's realized and unrealized gains and losses on derivative contracts	Amount of gain or (loss) recognized in income on derivative contracts for the Three Months Ended June 30, Amount of gain or (loss) recognized in income on derivative contracts for the Six Months Ended June 30, Location of gain or (loss) recognized in income on derivative contracts Derivatives not designated as hedging contracts under ASC 815 2015 2014 2015 2014 (In thousands) Commodity contracts: Unrealized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts $ ) $ ) $ ) $ ) Realized gain (loss) on commodity contracts Other income (expenses)—net gain (loss) on derivative contracts ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total net gain (loss) on derivative contracts $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of open derivative contracts	June 30, 2015 Floors Ceilings Period Instrument Commodity Volume in Mmbtu's/ Bbl's Price / Price Range Weighted Average Price Price / Price Range Weighted Average Price July 2015 - December 2015 (1) Collars Crude Oil $82.50 - 90.00 $ $90.00 - 100.25 $ July 2015 - December 2015 Collars Natural Gas 4.00 4.55 - 4.85 July 2015 - December 2015 (2) Swaps Crude Oil 91.00 - 92.75 January 2016 - June 2016 Collars Crude Oil 90.00 96.85 January 2016 - December 2016 Collars Natural Gas 4.00 4.22 January 2016 - December 2016 (3) Collars Crude Oil 60.00 - 90.00 64.00 - 95.10 January 2016 - December 2016 (4) Swaps Crude Oil 62.00 - 91.73 January 2017 - December 2017 Collars Crude Oil 50.00 - 60.00 70.00 - 76.84 December 31, 2014 Floors Ceilings Period Instrument Commodity Volume in Mmbtu's/ Bbl's Price / Price Range Weighted Average Price Price / Price Range Weighted Average Price January 2015 - June 2015 Collars Crude Oil $85.00 - 90.00 $ $91.00 - 98.50 $ January 2015 - December 2015 (1) Collars Crude Oil 82.50 - 90.00 90.00 - 100.25 January 2015 - December 2015 Collars Natural Gas 4.00 4.55 - 4.85 January 2015 - December 2015 (2) Swaps Crude Oil 91.00 - 92.75 March 2015 - December 2015 Collars Crude Oil 87.50 92.50 April 2015 - December 2015 Collars Crude Oil 87.50 92.50 July 2015 - December 2015 Collars Crude Oil 85.00 - 87.50 90.00 - 92.50 January 2016 - June 2016 Collars Crude Oil 90.00 96.85 January 2016 - December 2016 Collars Crude Oil 87.50 - 90.00 92.70 - 95.10 January 2016 - December 2016 Collars Natural Gas 4.00 4.22 January 2016 - December 2016 (4) Swaps Crude Oil 88.00 - 91.73 (1) Includes an outstanding crude oil collar which may be extended by the counterparty at a floor of $85.00 per Bbl and a ceiling of $96.20 per Bbl for a total of 732,000 Bbls for the year ended December 31, 2016. Also includes an outstanding crude oil collar which may be extended by the counterparty at a floor of $85.00 per Bbl and a ceiling of $96.00 per Bbl for a total of 366,000 Bbls for the year ended December 31, 2016. (2) Includes an outstanding crude oil swap of which may be extended by the counterparty at a price of $91.25 per Bbl for 732,000 Bbls for the year ended December 31, 2016. Also includes certain outstanding crude oil swaps which may be extended by the counterparty at a price of $91.00 per Bbl totaling 366,000 Bbls for the year ended December 31, 2016. (3) Includes an outstanding crude oil collar which may be extended by the counterparty at a floor of $60.00 per Bbl and a ceiling of $75.00 per Bbl for a total of 365,000 Bbls for the year ended December 31, 2017. (4) Includes an outstanding crude oil swap which may be extended by the counterparty at a price of $88.25 per Bbl for a total of 730,000 Bbls for the year ended December 31, 2017. Also includes certain outstanding crude oil swaps which may be extended by the counterparty at a price of $88.00 per Bbl totaling 912,500 Bbls for the year ended December 31, 2017. Includes an outstanding crude oil swap which may be extended by the counterparty at a price of $88.87 per Bbl totaling 547,500 Bbls for the year ended December 31, 2017.
Schedule of potential effects of master netting arrangements on the fair value of derivative contracts	Derivative Assets Derivative Liabilities Offsetting of Derivative Assets and Liabilities June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 (In thousands) Gross Amounts Presented in the Consolidated Balance Sheet $ $ $ ) $ ) Amounts Not Offset in the Consolidated Balance Sheet ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Amount $ $ $ — $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

ASSET RETIREMENT OBLIGATIONS (T

ASSET RETIREMENT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2015
ASSET RETIREMENT OBLIGATIONS
Schedule of activity related to ARO liability	The Company recorded the following activity related to its ARO liability for the six months ended June 30, 2015 (in thousands, inclusive of the current portion): Liability for asset retirement obligations as of December 31, 2014 $ Liabilities settled and divested ) Additions Accretion expense ​ ​ ​ ​ ​ Liability for asset retirement obligations as of June 30, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

MEZZANINE EQUITY (Tables)

MEZZANINE EQUITY (Tables)	6 Months Ended
	Jun. 30, 2015
MEZZANINE EQUITY
Reconciliation of financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)	The following table sets forth a reconciliation of the changes in fair value of the Tranche Rights and embedded derivative classified as Level 3 in the fair value hierarchy (in thousands): Tranche rights Embedded derivative Balances at December 31, 2014 $ ) $ Change in fair value ​ ​ ​ ​ ​ ​ ​ ​ Balances at June 30, 2015 $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Schedule of activity related to the preferred shares recorded as mezzanine equity	The Company recorded the following activity related to the preferred shares recorded in "Mezzanine equity" for the six months ended June 30, 2015 (in thousands, except share amounts): Redeemable noncontrolling interest Shares Amount Balances at December 31, 2014 $ Dividends paid in-kind Accretion of redeemable noncontrolling interest — Deemed dividend for change in fair value due to the HK TMS Amendment — ​ ​ ​ ​ ​ ​ ​ ​ Balances at June 30, 2015 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
EARNINGS PER COMMON SHARE
Schedule of calculation of earnings (loss) per share	The following represents the calculation of earnings (loss) per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic: Net income (loss) available to common stockholders $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic net income (loss) per share of common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: Net income (loss) available to common stockholders $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average basic number of common shares outstanding Common stock equivalent shares representing shares issuable upon: Exercise of stock options Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Exercise of February 2012 Warrants Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Vesting of restricted shares Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Vesting of performance units — — — — Conversion of Convertible Notes Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive Conversion of Series A preferred stock Anti-dilutive Anti-dilutive Anti-dilutive Anti-dilutive ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average diluted number of common shares outstanding ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income (loss) per share of common stock $ ) $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

ADDITIONAL FINANCIAL STATEMEN28

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
ADDITIONAL FINANCIAL STATEMENT INFORMATION
Schedule of additional financial statement information, balance sheet	June 30, 2015 December 31, 2014 (In thousands) Accounts receivable: Oil, natural gas and natural gas liquids revenues $ $ Joint interest accounts Accrued settlements on derivate contracts Affiliated partnership Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prepaids and other: Prepaids $ $ Income tax receivable — Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable and accrued liabilities: Trade payables $ $ Accrued oil and natural gas capital costs Revenues and royalties payable Accrued interest expense Accrued employee compensation Accrued lease operating expenses Drilling advances from partners Affiliated partnership Other ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

CONDENSED CONSOLIDATING FINAN29

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
CONDENSED CONSOLIDATING FINANCIAL INFORMATION
Results of operations	Three Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $ — $ $ $ — $ Natural gas — — — Natural gas liquids — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil, natural gas and natural gas liquids sales — — Other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Production: Lease operating — — Workover and other — — — Taxes other than income — — Gathering and other — — — Restructuring — — — General and administrative ) Depletion, depreciation and accretion ) Full cost ceiling impairment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) ) Other income (expenses): Net gain (loss) on derivative contracts — ) — — ) Interest expense and other, net ) ) — ) Gain (loss) on extinguishment of debt — — — Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other income (expenses) ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) Income tax benefit (provision) — ) — ) ) Equity in earnings of subsidiary, net of tax ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) Series A preferred dividends ) — — — ) Preferred dividends and accretion on redeemable noncontrolling interest — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $ — $ $ $ — $ Natural gas — — — Natural gas liquids — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil, natural gas and natural gas liquids sales — — Other — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Production: Lease operating — — Workover and other — — — Taxes other than income — Gathering and other — — — General and administrative ) Depletion, depreciation and accretion Other operating property and equipment impairment — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) Other income (expenses): Net gain (loss) on derivative contracts — ) — — ) Interest expense and other, net ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other income (expenses) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) Income tax benefit (provision) — ) ) — Equity in earnings of subsidiary, net of tax ) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) Series A preferred dividends ) — — — ) Preferred dividends and accretion on redeemable noncontrolling interest — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders $ ) $ $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $ — $ $ $ — $ Natural gas — — — Natural gas liquids — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil, natural gas and natural gas liquids sales — — Other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Production: Lease operating — — Workover and other — — Taxes other than income — — Gathering and other — — — Restructuring — — — General and administrative ) Depletion, depreciation and accretion ) Full cost ceiling impairment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) ) Other income (expenses): Net gain (loss) on derivative contracts — — — Interest expense and other, net ) ) ) ) Gain (loss) on extinguishment of debt — — — Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants ) — — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other income (expenses) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) Income tax benefit (provision) — ) — ) Equity in earnings of subsidiary, net of tax ) ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) Series A preferred dividends ) — — — ) Preferred dividends and accretion on redeemable noncontrolling interest — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Operating revenues: Oil, natural gas and natural gas liquids sales: Oil $ — $ $ $ — $ Natural gas — — — Natural gas liquids — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total oil, natural gas and natural gas liquids sales — — Other — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating revenues — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: Production: Lease operating — — Workover and other — — — Taxes other than income — Gathering and other — — — Restructuring — — — General and administrative ) Depletion, depreciation and accretion Full cost ceiling impairment — — — Other operating property and equipment impairment — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total operating expenses ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) from operations ) ) ) Other income (expenses): Net gain (loss) on derivative contracts — ) — — ) Interest expense and other, net ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total other income (expenses) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes ) ) ) ) Income tax benefit (provision) — ) ) — Equity in earnings of subsidiary, net of tax ) — ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) ) ) ) ) Series A preferred dividends ) — — — ) Preferred dividends and accretion on redeemable noncontrolling interest — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) available to common stockholders $ ) $ $ ) $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Balance sheet	June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Current assets: Cash $ — $ $ $ — $ Accounts receivable — ) Receivables from derivative contracts — — — Restricted cash — — — Inventory — — Prepaids and other — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and natural gas properties (full cost method): Evaluated — ) Unevaluated — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross oil and natural gas properties — ) Less—accumulated depletion — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net oil and natural gas properties — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating property and equipment: Gas gathering and other operating assets — Less—accumulated depreciation ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other operating property and equipmentNet other operating property and equipment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other noncurrent assets: Receivables from derivative contracts — — — Debt issuance costs, net — — — Deferred income taxes — — Intercompany notes and accounts receivable — ) — Investment in subsidiary ) — — Equity in oil and natural gas partnership — — — Funds in escrow and other — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: Accounts payable and accrued liabilities $ — $ $ $ ) $ Asset retirement obligations — — — Current portion of deferred income taxes — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt — — — Other noncurrent liabilities: Liabilities from derivative contracts — — — Asset retirement obligations — — Intercompany notes and accounts payable — ) — Other — — Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest — — — Stockholders' equity: Preferred stock — — — — — Common stock — — — Additional paid-in capital — ) Retained earnings (accumulated deficit) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Current assets: Cash $ — $ $ $ — $ Accounts receivable — ) Receivables from derivative contracts — — — Restricted cash — — — Inventory — — Prepaids and other — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil and natural gas properties (full cost method): Evaluated — ) Unevaluated — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross oil and natural gas properties — ) Less—accumulated depletion — ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net oil and natural gas properties — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other operating property and equipment: Gas gathering and other operating assets — Less—accumulated depreciation ) ) ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net other operating property and equipment — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Other noncurrent assets: Receivables from derivative contracts — — — Debt issuance costs, net — — — Deferred income taxes ) — — Intercompany notes and accounts receivable — ) — Investment in subsidiary — ) — Equity in oil and natural gas partnership — — — Funds in escrow and other — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities: Accounts payable and accrued liabilities $ — $ $ $ ) $ Asset retirement obligations — — — Current portion of deferred income taxes — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt — — — Other noncurrent liabilities: Liabilities from derivative contracts — — — Asset retirement obligations — — Intercompany notes and accounts payable — ) — Other — Commitments and contingencies Mezzanine equity: Redeemable noncontrolling interest — — — Stockholders' equity: Preferred stock — — — — — Common stock — — — Additional paid-in capital — ) Retained earnings (accumulated deficit) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders' equity ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and stockholders' equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Cash flows	Six Months Ended June 30, 2015 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Cash flows from operating activities: Net cash provided by (used in) operating activities $ ) $ $ $ — $ Cash flows from investing activities: Oil and natural gas capital expenditures — ) ) — ) Proceeds received from sale of oil and natural gas assets — — — Advance on carried interest — — — — — Other operating property and equipment capital expenditures ) ) — ) Advances to subsidiary — — ) — Funds held in escrow and other — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) ) ) ​ AllowanceForDoubtfulAccountsReceivable ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: Proceeds from borrowings — — — Repayments of borrowings ) — — — ) Debt issuance costs ) — — — ) Common stock issued — — — Restricted cash — — ) — ) Proceeds from subsidiary — ) — — Offering costs and other ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash — ) — ) Cash at beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash at end of period $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, 2014 Parent Company Guarantor Subsidiaries Non-Guarantor Subsidiary Eliminations Consolidated (In thousands) Cash flows from operating activities: Net cash provided by (used in) operating activities $ ) $ $ $ ) $ Cash flows from investing activities: Oil and natural gas capital expenditures — ) ) ) Proceeds received from sale of oil and natural gas assets — — Advance on carried interest — ) ) — ) Other operating property and equipment capital expenditures ) ) — — ) Advances to subsidiary ) ) — — Funds held in escrow and other — ) — — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) investing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities: Proceeds from borrowings — — — Repayments of borrowings ) — — — ) Debt issuance costs ) — — — ) HK TMS, LLC preferred stock issued — — — HK TMS, LLC tranche rights — — — Preferred dividends on redeemable noncontrolling interest — — ) — ) Restricted cash — — ) — ) Proceeds from subsidiary — ) — Offering costs and other ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) financing activities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash ) ) — Cash at beginning of period — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash at end of period $ — $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

FINANCIAL STATEMENT PRESENTAT30

FINANCIAL STATEMENT PRESENTATION (Details) - Entity [Domain] $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Basis of Presentation and Principles of Consolidation
Number of operating segments | item	1
Allowance for doubtful accounts receivable	$ 0		$ 0
Corrections of errors
Net cash provided by operating activities	(217,530)	$ (410,942)
Net cash used in investing activities	$ (412,217)	$ (607,560)

FINANCIAL STATEMENT PRESENTAT31

FINANCIAL STATEMENT PRESENTATION (Details 2) - Entity [Domain] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Other operating property and equipment
Property, Plant and Equipment, Other, Gross		$ 127,685		$ 126,804
Non-cash impairment charge	$ 3,477		$ 3,789
Proceeds received from sale of oil and natural gas assets		$ 1,111	465,452
Gas gathering systems and equipment
Other operating property and equipment
Estimated useful life		30 years
Cost capitalized		$ 85,300		$ 83,100
Proceeds received from sale of oil and natural gas assets			$ 3,800
Compressed Natural Gas Facility
Other operating property and equipment
Estimated useful life		10 years
Automobiles
Other operating property and equipment
Estimated useful life		3 years
Computers
Other operating property and equipment
Estimated useful life		3 years
Computer software | Maximum
Other operating property and equipment
Estimated useful life		5 years
Fixtures, furniture and equipment | Maximum
Other operating property and equipment
Estimated useful life		5 years
Trailers
Other operating property and equipment
Estimated useful life		7 years
Heavy equipment
Other operating property and equipment
Estimated useful life		10 years
Airplane and buildings
Other operating property and equipment
Estimated useful life		20 years

ACQUISITIONS AND DIVESTITURES (

ACQUISITIONS AND DIVESTITURES (Details) - USD ($) $ in Thousands	May. 09, 2014	Jun. 30, 2015	Jun. 30, 2014
Divestitures
Proceeds from sale of interests, before post-closing adjustments		$ 1,111	$ 465,452
Non-core Divestitures
Divestitures
Total consideration from non-core properties	$ 424,500
Gain (loss) from sale of interests	$ 0

OIL AND NATURAL GAS PROPERTIES

OIL AND NATURAL GAS PROPERTIES (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Jun. 30, 2015USD ($)$ / bbl	Jun. 30, 2014USD ($)	Jun. 30, 2015$ / MMBTU$ / bbl	Dec. 31, 2014$ / bbl	Jun. 30, 2014$ / MMBTU$ / bbl
Ceiling Limitation Disclosures
Average price (in dollars per barrel) | $ / bbl			82.71			94.99
First day average of the West Texas Intermediate (WTI) spot price (in dollars per barrel) | $ / bbl					71.68		100.27
First day average of the Henry Hub price (in dollars per Mmbtu) | $ / MMBTU					3.39		4.10
Full cost ceiling impairment	$ 948,633		$ 1,502,636	$ 61,165
Full cost ceiling impairment, after tax	$ 597,300	$ 348,800		39,000
Unevaluated Oil and Gas Leaseholds
Oil and Natural Gas Properties
Interest costs capitalized			$ 51,200	$ 88,600

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - Entity [Domain] - USD ($) $ in Thousands	May. 06, 2015	Dec. 19, 2013	Jun. 30, 2015	May. 01, 2015	Mar. 31, 2015	Dec. 31, 2014	Aug. 13, 2013	Jan. 14, 2013	Nov. 06, 2012	Jul. 16, 2012	Feb. 08, 2012	Feb. 06, 2012
Long-term debt
Long-term debt			$ 3,650,625			$ 3,746,736
Unamortized discount written-off	$ 18,600
8.625% Senior Secured Notes
Long-term debt
Long-term debt			$ 700,000
Interest rate (as a percent)			8.625%	8.625%
Principal amount				$ 700,000
9.25% Senior Notes
Long-term debt
Long-term debt			$ 392,650			$ 400,000
Interest rate (as a percent)			9.25%			9.25%	9.25%
Principal amount			$ 0			$ 0	$ 400,000
8.875% Senior Notes
Long-term debt
Long-term debt			$ 1,307,363			$ 1,370,032
Interest rate (as a percent)			8.875%		8.875%	8.875%						8.875%
Principal amount					$ 1,350,000	$ 1,350,000		$ 600,000	$ 750,000
Unamortized discount			$ 4,100			4,600			$ 5,700
Unamortized premium related to debt issued			22,100			24,600		$ 30,000
9.75% Senior Notes
Long-term debt
Long-term debt			$ 962,196			$ 1,151,821
Interest rate (as a percent)		9.75%	9.75%		9.75%	9.75%				9.75%
Principal amount					$ 1,150,000	$ 1,150,000				$ 750,000
Unamortized discount			$ 5,900			7,900				$ 10,200
Principal amount of debt issued		$ 400,000
Unamortized premium related to debt issued		$ 11,000	8,100			9,700
8.0% convertible Note
Long-term debt
Long-term debt			$ 264,416			$ 267,883
Interest rate (as a percent)			8.00%		8.00%	8.00%					8.00%
Principal amount					$ 289,700	$ 289,700					$ 275,000
Unamortized discount			$ 25,300			21,800
8% convertible Note pre-amendment
Long-term debt
Interest rate (as a percent)	8.00%
Unamortized discount written-off	$ 18,600
8% convertible Note post-amendment
Long-term debt
Interest rate (as a percent)	8.00%
Unamortized discount	$ 25,900		25,300
Senior revolving credit facility
Long-term debt
Long-term debt			$ 24,000			$ 557,000

LONG-TERM DEBT (Details 2)

LONG-TERM DEBT (Details 2) - Senior revolving credit facility $ in Millions	May. 01, 2015	Feb. 25, 2015	Feb. 08, 2012USD ($)	Feb. 08, 2012USD ($)multiplieritem	Jun. 30, 2015USD ($)
Long-term debt
Maximum borrowing capacity			$ 1,500	$ 1,500	$ 900
Current borrowing capacity			$ 900	$ 900
Number of interim unscheduled redeterminations of borrowing base to which the company and lender each have the right | item				1
Number of consecutive semi-annual redeterminations between which the company and the lenders each have the right to one interim unscheduled redetermination of borrowing base | item				2
Multiple applied to stated principal amount of any future notes or other long-term debt securities that the company may issue to calculate reduction in borrowing base | multiplier				0.25
Amount outstanding					24
Letters of credit outstanding					1
Borrowing capacity available					$ 875
Minimum
Long-term debt
Working capital levels			1
Interest coverage ratio first period		2
Interest coverage ratio subsequent periods		2.5
Maximum
Long-term debt
EBITDA multiplier utilized for calculation of Interest Coverage Ratio	2.75			2.75
ABR-based
Long-term debt
Variable rate base			Base rate
ABR-based | Minimum
Long-term debt
Applicable margin (as a percent)			0.75%
ABR-based | Maximum
Long-term debt
Applicable margin (as a percent)			1.75%
Euro-dollar based
Long-term debt
Variable rate base			LIBOR
Euro-dollar based | Minimum
Long-term debt
Applicable margin (as a percent)			1.75%
Euro-dollar based | Maximum
Long-term debt
Applicable margin (as a percent)			2.75%

LONG-TERM DEBT (Details 3)

LONG-TERM DEBT (Details 3) - Entity [Domain] - Range [Domain] - USD ($) $ in Thousands, shares in Millions	May. 07, 2015	May. 01, 2015	Apr. 24, 2015	Apr. 22, 2015	Apr. 15, 2015	Apr. 07, 2015	Dec. 19, 2013	Aug. 13, 2013	Jan. 14, 2013	Nov. 06, 2012	Jul. 16, 2012	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Feb. 06, 2012
Long-term debt
Redemption period, end date												Jan. 31, 2017
Long-term debt												$ 3,650,625	$ 3,650,625	$ 3,650,625		$ 3,746,736
8.625% Senior Secured Notes
Long-term debt
Principal amount		$ 700,000
Interest rate (as a percent)		8.625%										8.625%	8.625%	8.625%
Net proceeds from issuance		$ 686,300
Long-term debt												$ 700,000	$ 700,000	$ 700,000
8.625% Senior Secured Notes | Prior to February 1, 2017
Long-term debt
Redemption price of debt instrument (as a percent)												100.00%
Redemption period, start date												May 1, 2015
8.625% Senior Secured Notes | February 1, 2017
Long-term debt
Redemption price of debt instrument (as a percent)												104.313%
Redemption period, start date												Feb. 1, 2017
8.625% Senior Secured Notes | February 1, 2018
Long-term debt
Redemption price of debt instrument (as a percent)												102.156%
Redemption period, start date												Feb. 1, 2018
8.625% Senior Secured Notes | February 1, 2019 and thereafter
Long-term debt
Redemption price of debt instrument (as a percent)												100.00%
Redemption period, start date												Feb. 1, 2019
8.625% Senior Secured Notes | On or prior to February 1, 2017
Long-term debt
Redemption period, start date												May 1, 2015
Redemption period, end date												Feb. 1, 2017
Maximum percentage of the aggregate principal amount of debt instruments that may be redeemed with net proceeds of certain equity offerings												35.00%
Redemption price of notes utilizing net proceeds of certain equity offerings (as a percent)												108.625%
Redemption price of notes for change of control (as a percent)												101.00%
9.25% Senior Notes
Long-term debt
Principal amount								$ 400,000				$ 0	$ 0	$ 0		$ 0
Interest rate (as a percent)								9.25%				9.25%	9.25%	9.25%		9.25%
Net proceeds from issuance								$ 392,100
Ownership percentage in subsidiaries												100.00%	100.00%	100.00%
Independent assets												$ 0	$ 0	$ 0
Independent operations														0
Aggregate principal amount of debt converted													$ 7,400
Number of shares issued upon conversion of debt													4.3
Long-term debt												$ 392,650	$ 392,650	$ 392,650		$ 400,000
8.875% Senior Notes
Long-term debt
Principal amount									$ 600,000	$ 750,000					$ 1,350,000	$ 1,350,000
Interest rate (as a percent)												8.875%	8.875%	8.875%	8.875%	8.875%	8.875%
Issue price as a percentage of par value									105.00%	99.247%
Net proceeds from issuance									$ 619,500	$ 725,600
Ownership percentage in subsidiaries												100.00%	100.00%	100.00%
Independent assets												$ 0	$ 0	$ 0
Independent operations														0
Unamortized discount										$ 5,700		4,100	4,100	4,100		$ 4,600
Unamortized premium									$ 30,000			22,100	22,100	22,100		24,600
Aggregate principal amount of debt converted													$ 60,600
Number of shares issued upon conversion of debt													34.4
Long-term debt												$ 1,307,363	$ 1,307,363	$ 1,307,363		1,370,032
9.75% Senior Notes
Long-term debt
Principal amount											$ 750,000				$ 1,150,000	$ 1,150,000
Interest rate (as a percent)							9.75%				9.75%	9.75%	9.75%	9.75%	9.75%	9.75%
Issue price as a percentage of par value							102.75%				98.646%
Net proceeds from issuance							$ 406,300				$ 723,100
Ownership percentage in subsidiaries												100.00%	100.00%	100.00%
Principal amount of debt issued							400,000
Independent assets												$ 0	$ 0	$ 0
Independent operations														0
Unamortized discount											$ 10,200	5,900	5,900	5,900		$ 7,900
Unamortized premium							$ 11,000					8,100	8,100	8,100		9,700
Aggregate principal amount of debt converted													$ 190,000
Number of shares issued upon conversion of debt													106.1
Long-term debt												962,196	$ 962,196	962,196		1,151,821
Senior revolving credit facility
Long-term debt
Long-term debt												$ 24,000	24,000	$ 24,000		$ 557,000
Senior Unsecured Notes
Long-term debt
Aggregate principal amount of debt converted													$ 258,000
Number of shares issued upon conversion of debt													144.8
Union Square Park Partners L.P. | 9.25% Senior Notes
Long-term debt
Aggregate principal amount of debt converted	$ 2,000
Union Square Park Partners L.P. | 8.875% Senior Notes
Long-term debt
Aggregate principal amount of debt converted	3,800
Union Square Park Partners L.P. | Senior Unsecured Notes
Long-term debt
Aggregate principal amount of debt converted	$ 5,800
Number of shares issued upon conversion of debt	3.5
Franklin Templeton Investments | 9.75% Senior Notes
Long-term debt
Aggregate principal amount of debt converted						$ 116,500
Number of shares issued upon conversion of debt						65.5
Goldman Sachs Asset Management L.P. | 9.75% Senior Notes
Long-term debt
Aggregate principal amount of debt converted					$ 70,700
Number of shares issued upon conversion of debt					38.8
J.P. Morgan Securities LLC | 8.875% Senior Notes
Long-term debt
Aggregate principal amount of debt converted				$ 40,000
Number of shares issued upon conversion of debt				22.2
Pioneer Investments | 9.25% Senior Notes
Long-term debt
Aggregate principal amount of debt converted			$ 5,400
Pioneer Investments | 8.875% Senior Notes
Long-term debt
Aggregate principal amount of debt converted			16,800
Pioneer Investments | 9.75% Senior Notes
Long-term debt
Aggregate principal amount of debt converted			2,800
Pioneer Investments | Senior Unsecured Notes
Long-term debt
Aggregate principal amount of debt converted			$ 25,000
Number of shares issued upon conversion of debt			14.8

LONG-TERM DEBT (Details 4)

LONG-TERM DEBT (Details 4) - Line of Credit Facility, Lender [Domain] - USD ($) $ / shares in Units, $ in Millions	May. 06, 2015	Mar. 09, 2015	Jun. 30, 2015	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Feb. 08, 2014	Feb. 29, 2012	Feb. 08, 2012
Long-term debt
Unamortized discount written-off	$ 18.6
Debt issuance costs expensed			$ 6.8
February 2012 Warrants
Long-term debt
Term							5 years
Exercise price (in dollars per share)		$ 2.44	$ 2.44				$ 2.44				$ 4.50
8.0% convertible Note
Long-term debt
Principal amount								$ 289.7	$ 289.7			$ 275
Interest rate (as a percent)			8.00%				8.00%	8.00%	8.00%			8.00%
Interest in kind				$ 5.8	$ 5.7	$ 3.2
Principal outstanding			$ 289.7				$ 289.7
Unamortized discount			$ 25.3				$ 25.3		$ 21.8
8% convertible Note pre-amendment
Long-term debt
Interest rate (as a percent)	8.00%
Amount of principal and accrued interest that is convertible into one share of the entity's common stock (in dollars per share)										$ 4.50
Unamortized discount written-off	$ 18.6
Gain on extinguishment before write-off of initial issuance costs		$ 7.3
Debt issuance costs expensed		$ 1.4
8% convertible Note post-amendment
Long-term debt
Extension term		3 years
Interest rate (as a percent)	8.00%
Amount of principal and accrued interest that is convertible into one share of the entity's common stock (in dollars per share)			$ 2.44				$ 2.44
Unamortized discount	$ 25.9		$ 25.3				$ 25.3

LONG-TERM DEBT (Details 5)

LONG-TERM DEBT (Details 5) - Entity [Domain] $ / shares in Units, $ in Thousands, shares in Millions	May. 07, 2015USD ($)$ / sharesshares	Apr. 24, 2015USD ($)$ / sharesshares	Apr. 22, 2015USD ($)$ / sharesshares	Apr. 15, 2015USD ($)$ / sharesshares	Apr. 07, 2015USD ($)item$ / sharesshares	Jun. 30, 2015USD ($)shares	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Long-term debt
Gain (loss) on extinguishment of debt						$ 22,766	$ 22,766
Debt Issuance Costs
Costs associated with the issuance of debt capitalized						18,800	18,612	$ 77
Debt issuance costs expensed						6,800
Debt issuance costs, net						63,222	63,222		$ 55,904
8.875% Senior Notes
Long-term debt
Aggregate principal amount of debt converted						$ 60,600
Number of shares issued upon conversion of debt | shares						34.4
8.875% Senior Notes | Union Square Park Partners L.P.
Long-term debt
Aggregate principal amount of debt converted	$ 3,800
8.875% Senior Notes | J.P. Morgan Securities LLC
Long-term debt
Aggregate principal amount of debt converted			$ 40,000
Number of shares issued upon conversion of debt | shares			22.2
Amount of principal and accrued interest that is convertible into one share of the entity's common stock (in dollars per share) | $ / shares			$ 1.80
8.875% Senior Notes | Pioneer Investments
Long-term debt
Aggregate principal amount of debt converted		$ 16,800
9.25% Senior Notes
Long-term debt
Aggregate principal amount of debt converted						$ 7,400
Number of shares issued upon conversion of debt | shares						4.3
9.25% Senior Notes | Union Square Park Partners L.P.
Long-term debt
Aggregate principal amount of debt converted	2,000
9.25% Senior Notes | Pioneer Investments
Long-term debt
Aggregate principal amount of debt converted		5,400
9.75% Senior Notes
Long-term debt
Aggregate principal amount of debt converted						$ 190,000
Number of shares issued upon conversion of debt | shares						106.1
9.75% Senior Notes | Franklin Templeton Investments
Long-term debt
Aggregate principal amount of debt converted					$ 116,500
Number of shares issued upon conversion of debt | shares					65.5
Amount of principal and accrued interest that is convertible into one share of the entity's common stock (in dollars per share) | $ / shares					$ 1.78
Number of investment funds of lender entering into exchange agreement | item					2
9.75% Senior Notes | Goldman Sachs Asset Management L.P.
Long-term debt
Aggregate principal amount of debt converted				$ 70,700
Number of shares issued upon conversion of debt | shares				38.8
Amount of principal and accrued interest that is convertible into one share of the entity's common stock (in dollars per share) | $ / shares				$ 1.82
9.75% Senior Notes | Pioneer Investments
Long-term debt
Aggregate principal amount of debt converted		2,800
Senior revolving credit facility
Debt Issuance Costs
Debt issuance costs, net						$ 63,200	$ 63,200		$ 55,900
Senior Unsecured Notes
Long-term debt
Aggregate principal amount of debt converted						$ 258,000
Number of shares issued upon conversion of debt | shares						144.8
Gain on extinguishment before write-off of initial issuance costs						$ 26,600
Write-off of related issuance costs and discounts and premiums						$ 3,800
Senior Unsecured Notes | Union Square Park Partners L.P.
Long-term debt
Aggregate principal amount of debt converted	$ 5,800
Number of shares issued upon conversion of debt | shares	3.5
Amount of principal and accrued interest that is convertible into one share of the entity's common stock (in dollars per share) | $ / shares	$ 1.70
Senior Unsecured Notes | Pioneer Investments
Long-term debt
Aggregate principal amount of debt converted		$ 25,000
Number of shares issued upon conversion of debt | shares		14.8
Amount of principal and accrued interest that is convertible into one share of the entity's common stock (in dollars per share) | $ / shares		$ 1.69

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
FAIR VALUE MEASUREMENTS
Asset transfers between levels	$ 0
Liability transfers between levels	0
Recurring | Level 2
Assets
Receivables from derivative contracts	313,474	$ 503,854
Liabilities
Liabilities from derivative contracts	1,540	8,068
Recurring | Level 3.
Liabilities
Liabilities from derivative contracts	1,180	1,319
Recurring | Total
Assets
Receivables from derivative contracts	313,474	503,854
Liabilities
Liabilities from derivative contracts	$ 2,720	$ 9,387

FAIR VALUE MEASUREMENTS (Deta40

FAIR VALUE MEASUREMENTS (Details 2) - Recurring - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Reconciliation of changes in the fair value of the Company's oil derivative instruments classified as Level 3 in the fair value hierarchy
Beginning Balance	$ (1,319)	$ (2,816)
Net gain (loss) on derivative contracts	1,246	1,497
Purchase of derivative contracts	(1,107)
Ending Balance	(1,180)	(1,319)
Change in unrealized gains (losses) included in earnings related to derivatives still held at the end of the period	$ 1,246	$ 1,497

FAIR VALUE MEASUREMENTS (Deta41

FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2015	May. 01, 2015	Mar. 31, 2015	Dec. 31, 2014	Dec. 19, 2013	Aug. 13, 2013	Jan. 14, 2013	Nov. 06, 2012	Jul. 16, 2012	Feb. 08, 2012	Feb. 06, 2012
Fair value measurements
Non-cash impairment charge	$ 3,477	$ 3,789
8.625% Senior Secured Notes
Fair value measurements
Interest rate (as a percent)			8.625%	8.625%
Principal amount				$ 700,000
9.25% Senior Notes
Fair value measurements
Interest rate (as a percent)			9.25%			9.25%		9.25%
Principal amount			$ 0			$ 0		$ 400,000
8.875% Senior Notes
Fair value measurements
Interest rate (as a percent)			8.875%		8.875%	8.875%							8.875%
Principal amount					$ 1,350,000	$ 1,350,000			$ 600,000	$ 750,000
9.75% Senior Notes
Fair value measurements
Interest rate (as a percent)			9.75%		9.75%	9.75%	9.75%				9.75%
Principal amount					$ 1,150,000	$ 1,150,000					$ 750,000
8.0% convertible Note
Fair value measurements
Interest rate (as a percent)			8.00%		8.00%	8.00%						8.00%
Principal amount					$ 289,700	$ 289,700						$ 275,000
Carrying Amount
Fair value measurements
Estimated fair value of debt			$ 3,631,716			3,189,669
Carrying Amount | 8.625% Senior Secured Notes
Fair value measurements
Estimated fair value of debt			700,000
Carrying Amount | 9.25% Senior Notes
Fair value measurements
Estimated fair value of debt			392,650			400,000
Carrying Amount | 8.875% Senior Notes
Fair value measurements
Estimated fair value of debt			1,289,415			1,350,000
Carrying Amount | 9.75% Senior Notes
Fair value measurements
Estimated fair value of debt			959,982			1,150,000
Carrying Amount | 8.0% convertible Note
Fair value measurements
Estimated fair value of debt			289,669			289,669
Total
Fair value measurements
Estimated fair value of debt			2,702,666			2,439,255
Total | 8.625% Senior Secured Notes
Fair value measurements
Estimated fair value of debt			698,250
Total | 9.25% Senior Notes
Fair value measurements
Estimated fair value of debt			255,223			300,000
Total | 8.875% Senior Notes
Fair value measurements
Estimated fair value of debt			863,908			1,005,750
Total | 9.75% Senior Notes
Fair value measurements
Estimated fair value of debt			647,988			872,862
Total | 8.0% convertible Note
Fair value measurements
Estimated fair value of debt			$ 237,297			$ 260,643

DERIVATIVE AND HEDGING ACTIVI42

DERIVATIVE AND HEDGING ACTIVITIES (Details) $ in Thousands	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)item
Derivative and hedging activities
Asset derivative contracts	$ 313,474	$ 503,854
Liability derivative contracts	(2,720)	(9,387)
Derivatives not designated as hedging contracts
Derivative and hedging activities
Asset derivative contracts	313,474	503,854
Liability derivative contracts	$ (2,720)	$ (9,387)
Derivatives not designated as hedging contracts | Commodity contracts
Derivative and hedging activities
Number of open commodity derivative contracts | item	77	72
Derivatives not designated as hedging contracts | Commodity contracts | Current assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	$ 235,869	$ 352,530
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent assets - receivables from derivative contracts
Derivative and hedging activities
Asset derivative contracts	77,605	151,324
Derivatives not designated as hedging contracts | Commodity contracts | Other noncurrent liabilities - liabilities from derivative contracts
Derivative and hedging activities
Liability derivative contracts	$ (2,720)	$ (9,387)
Derivatives not designated as hedging contracts | Commodity contracts | Collars | Natural gas
Derivative and hedging activities
Number of open commodity derivative contracts | item	4	4
Derivatives not designated as hedging contracts | Commodity contracts | Collars | Crude oil
Derivative and hedging activities
Number of open commodity derivative contracts | item	44	42
Derivatives not designated as hedging contracts | Commodity contracts | Swaps | Crude oil
Derivative and hedging activities
Number of open commodity derivative contracts | item	18	16
Derivatives not designated as hedging contracts | Commodity contracts | Three- Way Collars | Crude oil
Derivative and hedging activities
Number of open commodity derivative contracts | item	3	2
Derivatives not designated as hedging contracts | Commodity contracts | Swaptions | Crude oil
Derivative and hedging activities
Number of open commodity derivative contracts | item	8	8

DERIVATIVE AND HEDGING ACTIVI43

DERIVATIVE AND HEDGING ACTIVITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivative and hedging activities
Unrealized gain (loss)			$ (183,713)	$ (132,813)
Realized gain (loss)			195,897	(21,885)
Total net gain (loss) on derivative contracts	$ (87,564)	$ (121,042)	$ 12,184	$ (154,698)
Derivatives not designated as hedging contracts | Commodity contracts | Other Income Expense
Derivative and hedging activities
Unrealized gain (loss)	(175,712)	(105,897)
Realized gain (loss)	88,148	(15,145)
Total net gain (loss) on derivative contracts	$ (87,564)	$ (121,042)

DERIVATIVE AND HEDGING ACTIVI44

DERIVATIVE AND HEDGING ACTIVITIES (Details 3) $ in Thousands	Jun. 30, 2015USD ($)MMBTU$ / MMBTU$ / bblbbl	Dec. 31, 2014USD ($)MMBTU$ / MMBTU$ / bblbbl
Derivative Assets
Gross amounts presented in the consolidated balance sheets | $	$ 313,474	$ 503,854
Amounts not offset in the consolidated balance sheets | $	(2,793)	(9,655)
Net amount | $	310,681	494,199
Derivative Liabilities
Gross amounts presented in the consolidated balance sheet | $	(2,720)	(9,387)
Amounts not offset in the consolidated balance sheet | $	$ 2,720	$ 9,387
January 2015 - June 2015 | Collars | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl		1,583,750
January 2015 - June 2015 | Collars | Commodity contracts | Crude oil | Minimum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		85
Ceilings (in dollars per Mmbtu's/Bbl's)		91
January 2015 - June 2015 | Collars | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		90
Ceilings (in dollars per Mmbtu's/Bbl's)		98.50
January 2015 - June 2015 | Collars | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		86.29
Ceilings (in dollars per Mmbtu's/Bbl's)		93.14
January 2015 - December 2015 | Commodity contracts | Crude oil | 365,000 Bbls | Extendable period through December 31, 2016
Derivative and hedging activities
Ceilings (in dollars per Mmbtu's/Bbl's)		96
January 2015 - December 2015 | Collars | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl		6,205,000
January 2015 - December 2015 | Collars | Commodity contracts | Crude oil | 730,000 Bbls | Extendable period through December 31, 2016
Derivative and hedging activities
Volume in Bbl's | bbl		732,000
Floors (in dollars per Mmbtu's/Bbl's)		85
Ceilings (in dollars per Mmbtu's/Bbl's)		96.20
January 2015 - December 2015 | Collars | Commodity contracts | Crude oil | 365,000 Bbls | Extendable period through December 31, 2016
Derivative and hedging activities
Volume in Bbl's | bbl		366,000
Floors (in dollars per Mmbtu's/Bbl's)		85
January 2015 - December 2015 | Collars | Commodity contracts | Crude oil | Minimum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		82.50
Ceilings (in dollars per Mmbtu's/Bbl's)		90
January 2015 - December 2015 | Collars | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		90
Ceilings (in dollars per Mmbtu's/Bbl's)		100.25
January 2015 - December 2015 | Collars | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		86.47
Ceilings (in dollars per Mmbtu's/Bbl's)		94.39
January 2015 - December 2015 | Collars | Commodity contracts | Natural gas
Derivative and hedging activities
Volume in Mmbtu's | MMBTU		6,387,500
January 2015 - December 2015 | Collars | Commodity contracts | Natural gas | Minimum
Derivative and hedging activities
Ceilings (in dollars per Mmbtu's/Bbl's)		4.55
January 2015 - December 2015 | Collars | Commodity contracts | Natural gas | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		4
Ceilings (in dollars per Mmbtu's/Bbl's)		4.85
January 2015 - December 2015 | Collars | Commodity contracts | Natural gas | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's) | $ / MMBTU		4
Ceilings (in dollars per Mmbtu's/Bbl's) | $ / MMBTU		4.68
January 2015 - December 2015 | Swaps | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl		1,825,000
January 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | 730,000 Bbls | Extendable period through December 31, 2016
Derivative and hedging activities
Volume in Bbl's | bbl		732,000
Floors (in dollars per Mmbtu's/Bbl's)		91.25
January 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | 365,000 Bbls | Extendable period through December 31, 2016
Derivative and hedging activities
Volume in Bbl's | bbl		366,000
Floors (in dollars per Mmbtu's/Bbl's)		91
January 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | Minimum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		91
January 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		92.75
January 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		91.76
March 2015 - December 2015 | Swaps | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl		306,000
March 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		87.50
Ceilings (in dollars per Mmbtu's/Bbl's)		92.50
March 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		87.50
Ceilings (in dollars per Mmbtu's/Bbl's)		92.50
April 2015 - December 2015 | Collars | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl		412,500
April 2015 - December 2015 | Collars | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		87.50
Ceilings (in dollars per Mmbtu's/Bbl's)		92.50
April 2015 - December 2015 | Collars | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		87.50
Ceilings (in dollars per Mmbtu's/Bbl's)		92.50
July 2015 - December 2015 | Collars | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	4,692,000	1,104,000
July 2015 - December 2015 | Collars | Commodity contracts | Crude oil | Minimum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	82.50	85
Ceilings (in dollars per Mmbtu's/Bbl's)	90	90
July 2015 - December 2015 | Collars | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	90	87.50
Ceilings (in dollars per Mmbtu's/Bbl's)	100.25	92.50
July 2015 - December 2015 | Collars | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	86.42	85.83
Ceilings (in dollars per Mmbtu's/Bbl's)	93.39	90.92
July 2015 - December 2015 | Collars | Commodity contracts | Natural gas | 732,000 Bbls
Derivative and hedging activities
Volume in Bbl's | bbl	3,220,000
July 2015 - December 2015 | Collars | Commodity contracts | Natural gas | Minimum | 732,000 Bbls
Derivative and hedging activities
Ceilings (in dollars per Mmbtu's/Bbl's)	4.55
July 2015 - December 2015 | Collars | Commodity contracts | Natural gas | Maximum | 732,000 Bbls
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	4
Ceilings (in dollars per Mmbtu's/Bbl's)	4.85
July 2015 - December 2015 | Collars | Commodity contracts | Natural gas | Weighted Average | 732,000 Bbls
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	4
Ceilings (in dollars per Mmbtu's/Bbl's)	4.68
July 2015 - December 2015 | Swaps | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	920,000
Floors (in dollars per Mmbtu's/Bbl's)	91
July 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	92.75
July 2015 - December 2015 | Swaps | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	91.76
January 2016 - June 2016 | Collars | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	182,000	182,000
Ceilings (in dollars per Mmbtu's/Bbl's)		0
January 2016 - June 2016 | Collars | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	90	90
Ceilings (in dollars per Mmbtu's/Bbl's)	96.85	96.85
January 2016 - June 2016 | Collars | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	90	90
Ceilings (in dollars per Mmbtu's/Bbl's)	96.85	96.85
January 2016 - December 2016 | Collars | Crude oil | 365,000 Bbls | Extendable period through December 31, 2017
Derivative and hedging activities
Volume in Bbl's | bbl	365,000
Floors (in dollars per Mmbtu's/Bbl's)	60
Ceilings (in dollars per Mmbtu's/Bbl's)	75
January 2016 - December 2016 | Collars | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	4,392,000
Volume in Mmbtu's | MMBTU		1,830,000
Floors (in dollars per Mmbtu's/Bbl's)	60
Ceilings (in dollars per Mmbtu's/Bbl's)	64
January 2016 - December 2016 | Collars | Commodity contracts | Crude oil | Minimum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's) | $ / MMBTU		87.50
Ceilings (in dollars per Mmbtu's/Bbl's)		92.70
January 2016 - December 2016 | Collars | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	90	90
Ceilings (in dollars per Mmbtu's/Bbl's)	95.10	95.10
January 2016 - December 2016 | Collars | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	71.91	88.55
Ceilings (in dollars per Mmbtu's/Bbl's)	77.71	93.84
January 2016 - December 2016 | Collars | Commodity contracts | Natural gas
Derivative and hedging activities
Volume in Bbl's | bbl	732,000
January 2016 - December 2016 | Collars | Commodity contracts | Natural gas | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	4
Ceilings (in dollars per Mmbtu's/Bbl's)	4.22
January 2016 - December 2016 | Collars | Commodity contracts | Natural gas | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	4
Ceilings (in dollars per Mmbtu's/Bbl's)	4.22
January 2016 - December 2016 | Swaps | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Bbl's | bbl	4,758,000	4,026,000
January 2016 - December 2016 | Swaps | Commodity contracts | Crude oil | 730,000 Bbls | Extendable period through December 31, 2017
Derivative and hedging activities
Volume in Bbl's | bbl	730,000	730,000
Floors (in dollars per Mmbtu's/Bbl's)	88.25	88.25
January 2016 - December 2016 | Swaps | Commodity contracts | Crude oil | 912,500 Bbls | Extendable period through December 31, 2017
Derivative and hedging activities
Volume in Bbl's | bbl	912,500	912,500
Floors (in dollars per Mmbtu's/Bbl's)	88	88
January 2016 - December 2016 | Swaps | Commodity contracts | Crude oil | 547,500 Bbls | Extendable period through December 31, 2017
Derivative and hedging activities
Volume in Bbl's | bbl	547,500	547,500
Floors (in dollars per Mmbtu's/Bbl's)	88.87	88.87
January 2016 - December 2016 | Swaps | Commodity contracts | Crude oil | Minimum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	62	88
January 2016 - December 2016 | Swaps | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	91.73	91.73
January 2016 - December 2016 | Swaps | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	85.43	89.65
January 2016 - December 2016 | Swaps | Commodity contracts | Natural gas
Derivative and hedging activities
Volume in Bbl's | bbl		732,000
January 2016 - December 2016 | Swaps | Commodity contracts | Natural gas | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		4
Ceilings (in dollars per Mmbtu's/Bbl's)		4.22
January 2016 - December 2016 | Swaps | Commodity contracts | Natural gas | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)		4
Ceilings (in dollars per Mmbtu's/Bbl's)		4.22
January 2017 - December 2017 | Collars | Commodity contracts | Crude oil
Derivative and hedging activities
Volume in Mmbtu's | MMBTU	1,368,750
Floors (in dollars per Mmbtu's/Bbl's) | $ / MMBTU	50
Ceilings (in dollars per Mmbtu's/Bbl's) | $ / MMBTU	70
January 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Maximum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	60
Ceilings (in dollars per Mmbtu's/Bbl's)	76.84
January 2017 - December 2017 | Collars | Commodity contracts | Crude oil | Weighted Average
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's) | $ / MMBTU	57.33
Ceilings (in dollars per Mmbtu's/Bbl's) | $ / MMBTU	74.16
April 2014 - December 2014 | Collars | Commodity contracts | Crude oil | Minimum
Derivative and hedging activities
Floors (in dollars per Mmbtu's/Bbl's)	91

ASSET RETIREMENT OBLIGATIONS (D

ASSET RETIREMENT OBLIGATIONS (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Activity related to ARO liability
Liability for asset retirement obligations at the beginning of the period	$ 38,477
Liabilities settled and divested	(324)
Additions	2,078
Accretion expense	878
Liability for asset retirement obligations at the end of the period	$ 41,109

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Feb. 28, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Jan. 31, 2015USD ($)	Dec. 20, 2013USD ($)a
COMMITMENTS AND CONTINGENCIES
Rent expense					$ 4,300,000	$ 4,000,000
Commitments and contingencies
Non-cancelable termination penalties		$ 39,100,000	$ 39,100,000		39,100,000			$ 6,000,000
Stacking fees per day pertaining to the new drilling rig commitment		17,000
Obligation under contractual commitments
Carry Amount paid						$ 189,442,000
Drilling rig commitments		58,900,000	58,900,000		58,900,000			$ 3,000,000
Office and equipment lease agreements amount		$ 55,400,000	$ 55,400,000		$ 55,400,000
Gathering, transportation and sales | North Dakota
Obligation under contractual commitments
Number of long-term crude oil sales contracts to which the entity is committed | item					10
Number of long-term natural gas sales contracts to which the entity is committed | item					6
Gathering, transportation and sales | North Dakota | Minimum
Obligation under contractual commitments
Period of commitment for production from the date of first production					1 year
Gathering, transportation and sales | North Dakota | Maximum
Obligation under contractual commitments
Period of commitment for production from the date of first production					10 years
Agreement | Seller | Tuscaloosa Marine Shale
Obligation under contractual commitments
Net acres exchanged for funding by entity | a									117,870
Carry Amount paid	$ 62,500,000			$ 126,900,000
Percentage of working interest in the Carry Wells to be received			5.00%
Carry amount remaining in escrow							$ 71,900,000
Agreement | Seller | Tuscaloosa Marine Shale | Maximum
Obligation under contractual commitments
Total									$ 189,400,000

MEZZANINE EQUITY (Details)

MEZZANINE EQUITY (Details) $ / shares in Units, $ in Thousands	Jun. 16, 2014USD ($)multiplieritemshares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 01, 2015item	Dec. 31, 2014USD ($)
Mezzanine equity
Preferred dividends on redeemable noncontrolling interest			$ 15,354	$ 493
HK TMS, LLC preferred stock issued				110,051
Tranche rights				$ 4,516
Preferred Stock (Mezzanine Equity)
Mezzanine equity
Balances at beginning of period (in shares) | shares			153,025
Issuance of HK TMS, LLC preferred stock (in shares) | shares			150,000
Dividends paid in-kind (in shares) | shares			6,131
Balances at end of period (in shares) | shares		159,156	159,156
Increase (Decrease) in Temporary Equity [Roll Forward]
Balances at beginning of period		$ 136,884	$ 136,884			$ 117,166
Dividends paid in-kind			6,131
HK TMS deemed dividends			12,942
Balances at end of period		$ 136,884	136,884
HK TMS | Preferred Stock (Mezzanine Equity)
Mezzanine equity
Proceeds contributed by parent			$ 50,000
HK TMS | Preferred Stock (Mezzanine Equity) | Maximum
Mezzanine equity
Withdrawal exit fee (per share) | $ / shares		$ 20
HK TMS | Preferred Stock (Mezzanine Equity) | Minimum
Mezzanine equity
Withdrawal exit fee (per share) | $ / shares		$ 2.50
HK TMS | Apollo | TMS
Mezzanine equity
Overriding royalty interest rate assigned in wells to be drilled, subject to reduction (as a percent)	4.00%
Maximum reduction in overriding royalty interest rate assigned in wells to be drilled under certain circumstances (as a percent)	2.00%
Number of wells to be drilled that are subject to overriding royalty interest | item	75
Number of net operated wells subject to overriding royalty interest | item	200
Number of wells overriding royalty interest rights forfeited | item	125
HK TMS | Apollo | Preferred Stock (Mezzanine Equity)
Mezzanine equity
Proceeds received on sale of preferred shares	$ 150,000
Dividend rate (as a percent)	8.00%
PIK exit fee per share | $ / shares			$ 5
Total PIK exit fees incurred			$ 1,500
Rate of return on preferred shares (as a percent)	12.00%
Multiple factor on investment | multiplier	1.25
Number of wells committed to be drilled | item					6.5
Number of consecutive twelve month periods beginning June 16, 2014 for wells committed to be drilled | item					5
Total initial investment proceeds	$ 150,000
HK TMS | Apollo | Preferred Stock (Mezzanine Equity) | Maximum
Mezzanine equity
Additional preferred shares available for issuance | shares	250,000
Consideration upon issuance of additional preferred shares	$ 250,000

MEZZANINE EQUITY (Details 2)

MEZZANINE EQUITY (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Tranche rights
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning Balance	$ (2,634)
Change in fair value	2,634
Embedded Derivative Financial Instruments
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning Balance	5,963
Change in fair value	418
Ending Balance	$ 6,381

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) $ / shares in Units, $ in Thousands	Mar. 18, 2015USD ($)	Mar. 09, 2015USD ($)$ / shares	Jun. 18, 2013USD ($)$ / sharesshares	Feb. 29, 2012USD ($)$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item$ / sharesshares	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)$ / sharesshares	May. 22, 2014shares
Preferred stock and stockholders' equity
Proceeds from the offering of common stock | $							$ 15,354
Dividend rate (as a percent)							5.75%		5.75%
Preferred stock, par value (in dollars per share) | $ / shares					$ 0.0001		$ 0.0001		$ 0.0001
Par value of common stock (in dollars per share) | $ / shares					$ 0.0001		$ 0.0001		$ 0.0001
Retained earnings (accumulated deficit) | $					$ (2,929,049)		$ (2,929,049)		$ (1,223,275)
Cash dividends paid | $					$ 4,902	$ 4,960	$ 9,803	$ 9,919	$ (4,960)
Authorized shares of common stock, after amendment of certificate of incorporation					1,340,000,000		1,340,000,000		1,340,000,000
Purchase price | $							$ 15,354
Senior Unsecured Notes
Preferred stock and stockholders' equity
Debt Conversion, Original Debt, Amount | $					$ 258,000
Debt Conversion, Converted Instrument, Shares Issued					144,800,000
February 2012 Warrants
Preferred stock and stockholders' equity
Payment for capital commitment | $				$ 600
Number of shares of common stock that can be purchased from warrants				36,700,000
Exercise price (in dollars per share) | $ / shares		$ 2.44		$ 4.50	$ 2.44		$ 2.44
Proceeds from issuance of warrants | $				$ 43,600
Expense for the change in the fair value of warrants | $		$ 14,100
Common Stock
Preferred stock and stockholders' equity
Shares issued					9,400,000
Proceeds from the offering of common stock | $	$ 150,000				$ 15,100
Authorized shares of common stock, after amendment of certificate of incorporation										1,340,000,000
Increase in shares of common stock authorized										670,000,000
5.75% Series A Convertible Perpetual Preferred Stock
Preferred stock and stockholders' equity
Shares issued			345,000				656,269
Dividend rate (as a percent)							5.75%
Number of shares of common stock to be issued upon conversion					162.4431		162.4431
Share price (in dollars per share) | $ / shares			$ 1,000
Preferred stock converted into common stock (in shares)					4,040		4,040
Benefit from conversion of stock (in dollars per share) | $ / shares							$ 6.16
Liquidation preference per share (in dollars per share) | $ / shares					$ 1,000		$ 1,000
Number of shares of common stock to be issued upon conversion at initial conversion rate					56,000,000		56,000,000
Closing sale price of common stock as minimum percentage of the conversion price to automatically convert preferred stock into common stock							150.00%
Minimum number of trading days within 30 consecutive trading days during which the closing sales price of common stock per share must exceed the conversion price for the preferred stocks to be redeemable							20 days
Number of consecutive trading day periods within which the closing sale price of common stock price per share must exceed the conversion price for at least 20 trading days for the preferred stocks to be redeemable							30 days
Number of consecutive trading day periods ending on the third business day prior to settlement date							5 days
Number of shares of common stock to be issued upon conversion on fundamental change							292.3977
Threshold period of dividends in arrears and unpaid which will give holders of the Convertible Preferred Stock voting rights							18 months
Number of additional directors that can be appointed by holders of the Convertible Preferred Stock until arrearage is paid in full | item							2
Net proceeds received | $			$ 335,200
Payment of cumulative, declared dividends | $							$ 9,800
Number of shares issued as non-cash dividend							6,800,000
Cumulative, undeclared dividends | $					$ 1,600		$ 1,600

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	May. 23, 2013	May. 17, 2012
General and administrative
Stock-based compensation
Compensation expense recorded	$ 3.4		$ 4.9		$ 8.2	$ 9.2
Performance share units (PSU)
Stock-based compensation
Weighted average remaining vesting period					1 year 8 months 12 days
Performance Share Units
Unrecognized compensation expense	2.7				$ 2.7
Performance share units (PSU) | Common Stock
Performance Share Units
Number of trading days considered to measure the average of adjusted closing price of common stock			60 days
Performance share units (PSU) | Common Stock | $4.00
Performance Share Units
Entitlement percentage of shares underlining awards, to be received and vested			50.00%
Performance share units (PSU) | Common Stock | $7.00
Performance Share Units
Average market price (in dollars per share)			$ 7			$ 7
Performance share units (PSU) | Common Stock | $10.00
Performance Share Units
Average market price (in dollars per share)			$ 10			10
Entitlement percentage of shares underlining awards, to be received and vested			200.00%
Performance share units (PSU) | Common Stock | $5.50
Performance Share Units
Average market price (in dollars per share)			$ 5.50			5.50
Entitlement percentage of shares underlining awards, to be received and vested			75.00%
Performance share units (PSU) | Common Stock | $8.50
Performance Share Units
Average market price (in dollars per share)			$ 8.50			8.50
Entitlement percentage of shares underlining awards, to be received and vested			150.00%
Performance share units (PSU) | Common Stock | Senior management
Performance Share Units
Granted (in shares)			1.6
Number of Shares
Granted (in shares)			1.6
Performance share units (PSU) | Minimum | Common Stock | $4.00
Performance Share Units
Average market price (in dollars per share)			$ 4			$ 4
Performance share units (PSU) | Maximum | Common Stock
Stock-based compensation
Maximum number of shares that will be issued for vested performance units			3.2			3.2
Stock options
Stock-based compensation
Weighted average exercise price (in dollars per share)			$ 3.69		$ 1.92
Vesting period		3 years		3 years	3 years
Percentage of awards vesting on the annual anniversary date of the grant		33.33%		33.33%
Expiration term		10 years		10 years
Unrecognized compensation expense	$ 9		$ 16.9		$ 9	$ 16.9
Weighted average remaining vesting period			1 year 3 months 18 days		1 year 3 months 18 days
Number of Shares
Granted (in shares)	3.6		6.2
Weighted Average Exercise Price Per Share
Granted (in dollars per share)			$ 3.69		$ 1.92
Stock options | Minimum
Stock-based compensation
Exercise price (in dollars per share)			3.67
Stock options | Maximum
Stock-based compensation
Exercise price (in dollars per share)			$ 6.58
Restricted Stock
Stock-based compensation
Unrecognized compensation expense	$ 13.4		$ 17.9		$ 13.4	$ 17.9
Weighted average remaining vesting period	1 year 3 months 18 days		1 year 4 months 24 days
Weighted average grant date price (in dollars per share)	$ 1.74		$ 3.84		$ 1.74	$ 3.84
Restricted Stock | Directors and employees
Performance Share Units
Granted (in shares)	2.4		3.9
Number of Shares
Granted (in shares)	2.4		3.9
Restricted Stock | Employee
Stock-based compensation
Vesting period	3 years		3 years
Percentage of awards vesting on the annual anniversary date of the grant	33.33%		33.33%
Restricted Stock | Non-employee director
Stock-based compensation
Vesting period			6 months		6 months
Restricted Stock | Minimum
Stock-based compensation
Grant date price (in dollars per share)	$ 1.22		$ 3.67		$ 1.22	3.67
Restricted Stock | Maximum
Stock-based compensation
Grant date price (in dollars per share)	$ 1.97		$ 6.58		$ 1.97	$ 6.58
Plan | Common Stock
Stock-based compensation
Shares issuable under the plan								81.5	41.5
Maximum number of shares that remained reserved for issuance under the Plan	42.4				42.4		5.1

INCOME TAXES (Details)

INCOME TAXES (Details) - Entity [Domain] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Current:
State			$ (300)
Total income tax benefit (provision)	$ 286		199
Differences between the actual income tax benefit (provision) and the expected income tax benefit (provision)
Total income tax benefit (provision)	286		199
Net noncurrent deferred income tax assets (liabilities)	93,026		93,026		$ 136,826
Effective income tax rate (as a percent)				0.00%
Period of cumulative book loss that limits ability to consider other subjective evidence for growth					3 years
Income tax expense or benefit	(286)		(199)
Pre-tax income (loss)	$ (1,088,326)	$ (67,477)	(1,676,054)	$ (140,441)
Current state tax provision			$ 300

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - Entity [Domain] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic:
Net income (loss) available to common stockholders	$ (1,104,581)	$ (73,333)	$ (1,705,774)	$ (151,256)
Weighted average basic number of common shares outstanding	545,313	414,722	482,843	414,125
Basic net income (loss) per common share (in dollars per share)	$ (2.03)	$ (0.18)	$ (3.53)	$ (0.37)
Diluted:
Net income (loss) available to common stockholders	$ (1,104,581)	$ (73,333)	$ (1,705,774)	$ (151,256)
Weighted average basic number of common shares outstanding	545,313	414,722	482,843	414,125
Weighted average diluted number of common shares outstanding	545,313	414,722	482,843	414,125
Diluted net income (loss) per common share (in dollars per share)	$ (2.03)	$ (0.18)	$ (3.53)	$ (0.37)
Common stock equivalents of stock options, restricted shares, warrants and convertible debt and convertible preferred stock, not included in the computations of diluted earnings per share of common stock as their effect would have been anti-dilutive (in shares)	241,300	179,900	240,900	176,800

ADDITIONAL FINANCIAL STATEMEN53

ADDITIONAL FINANCIAL STATEMENT INFORMATION (Details) - Entity [Domain] - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Accounts receivable:
Oil, natural gas and natural gas liquids revenues	$ 93,372	$ 104,370
Joint interest accounts	88,138	140,352
Accrued settlements on derivative contracts	26,781	25,929
Affiliated partnership	221	661
Other	6,005	5,247
Total	214,517	276,559
Prepaids and other:
Prepaids	7,991	6,030
Income tax receivable		2,991
Other	51	58
Total	8,042	9,079
Accounts payable and accrued liabilities:
Trade payables	41,383	60,512
Accrued oil and natural gas capital costs	110,101	308,604
Revenues and royalties payable	80,095	100,498
Accrued interest expense	82,504	82,942
Accrued employee compensation	6,846	3,171
Accrued lease operating expenses	26,383	29,681
Drilling advances from partners	17,138	21,220
Affiliated partnerships	213	762
Other	735	360
Total	$ 365,398	$ 607,750

CONDENSED CONSOLIDATING FINAN54

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Oil, natural gas and natural gas liquids sales:
Oil	$ 158,110	$ 304,212	$ 282,523	$ 560,241
Natural gas	5,578	10,308	12,537	19,717
Natural gas liquids	3,889	9,364	7,957	18,123
Total oil, natural gas and natural gas liquids sales	167,577	323,884	303,017	598,081
Other	447	3,260	1,201	4,212
Total operating revenues	168,024	327,144	304,218	602,293
Production:
Lease operating	25,233	30,968	59,018	67,606
Work over and other	3,731	3,988	6,845	6,777
Taxes other than income	12,903	30,310	25,144	54,470
Gathering and other	7,746	5,898	21,492	10,659
Restructuring	309		2,230	987
General and administrative	22,662	27,743	47,071	60,541
Depletion, depreciation and accretion	101,194	133,470	220,338	253,378
Full cost ceiling impairment	948,633		1,502,636	61,165
Other operating property and equipment impairment		3,477		3,789
Total operating expenses	1,122,411	235,854	1,884,774	519,372
Income (loss) from operations	(954,387)	91,290	(1,580,556)	82,921
Other income (expenses):
Net gain (loss) on derivative contracts	(87,564)	(121,042)	12,184	(154,698)
Interest expense and other, net	(60,922)	(37,725)	(122,229)	(68,664)
Gain (loss) on extinguishment of debt	22,766		22,766
Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants	(8,219)		(8,219)
Total other income (expenses)	(133,939)	(158,767)	(95,498)	(223,362)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest, Total	(1,088,326)	(67,477)	(1,676,054)	(140,441)
Income tax benefit (provision)	(286)		(199)
Net income (loss)	(1,088,612)	(67,477)	(1,676,253)	(140,441)	$ 315,956
Series A preferred dividends	(4,902)	(4,960)	(9,803)	(9,919)	$ 4,960
Preferred dividends and accretion on redeemable noncontrolling interest	(11,067)	(896)	(19,718)	(896)
Net income (loss) available to common stockholders	(1,104,581)	(73,333)	(1,705,774)	(151,256)
Reportable legal entities | Parent Company
Production:
Taxes other than income		76		152
General and administrative	15,097	16,534	30,352	37,259
Depletion, depreciation and accretion	568	605	1,192	1,353
Total operating expenses	15,665	17,215	31,544	38,764
Income (loss) from operations	(15,665)	(17,215)	(31,544)	(38,764)
Other income (expenses):
Interest expense and other, net	(85,042)	(79,497)	(168,760)	(158,095)
Gain (loss) on extinguishment of debt	22,766		22,766
Gain (loss) on extinguishment of Convertible Note and modification of February 2012 Warrants	(8,219)		(8,219)
Total other income (expenses)	(70,495)	(79,497)	(154,213)	(158,095)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest, Total	(86,160)	(96,712)	(187,757)	(196,859)
Equity in earnings of subsidiary, net of tax	(1,013,519)	28,339	(1,510,214)	55,522
Net income (loss)	(1,099,679)	(68,373)	(1,695,971)	(141,337)
Series A preferred dividends	(4,902)	(4,960)	(9,803)	(9,919)
Net income (loss) available to common stockholders	(1,104,581)	(73,333)	(1,705,774)	(151,256)
Reportable legal entities | Guarantor Subsidiaries
Oil, natural gas and natural gas liquids sales:
Oil	153,792	302,520	272,997	558,549
Natural gas	5,578	10,308	12,537	19,717
Natural gas liquids	3,889	9,364	7,957	18,123
Total oil, natural gas and natural gas liquids sales	163,259	322,192	293,491	596,389
Other	447	6,792	1,201	7,744
Total operating revenues	163,706	328,984	294,692	604,133
Production:
Lease operating	24,595	30,842	57,930	67,480
Work over and other	3,731	3,988	6,841	6,777
Taxes other than income	12,614	30,131	24,596	54,215
Gathering and other	7,746	5,898	21,492	10,659
Restructuring	309		2,230	987
General and administrative	7,519	11,071	16,637	23,144
Depletion, depreciation and accretion	97,572	131,736	212,198	250,896
Full cost ceiling impairment	911,496		1,451,630	61,165
Other operating property and equipment impairment		3,477		3,789
Total operating expenses	1,065,582	217,143	1,793,554	479,112
Income (loss) from operations	(901,876)	111,841	(1,498,862)	125,021
Other income (expenses):
Net gain (loss) on derivative contracts	(87,564)	(121,042)	12,184	(154,698)
Interest expense and other, net	24,734	41,765	49,566	89,424
Total other income (expenses)	(62,830)	(79,277)	61,750	(65,274)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest, Total	(964,706)	32,564	(1,437,112)	59,747
Income tax benefit (provision)	(285)	(128)	(6,121)	(128)
Equity in earnings of subsidiary, net of tax	(48,528)	(4,097)	(66,981)	(4,097)
Net income (loss)	(1,013,519)	28,339	(1,510,214)	55,522
Net income (loss) available to common stockholders	(1,013,519)	28,339	(1,510,214)	55,522
Reportable legal entities | Non-Guarantor Subsidiaries
Oil, natural gas and natural gas liquids sales:
Oil	4,318	1,692	9,526	1,692
Total oil, natural gas and natural gas liquids sales	4,318	1,692	9,526	1,692
Total operating revenues	4,318	1,692	9,526	1,692
Production:
Lease operating	638	126	1,088	126
Work over and other			4
Taxes other than income	289	103	548	103
General and administrative	723	2,276	1,435	2,276
Depletion, depreciation and accretion	4,386	722	9,770	722
Full cost ceiling impairment	35,805		48,184
Total operating expenses	41,841	3,227	61,029	3,227
Income (loss) from operations	(37,523)	(1,535)	(51,503)	(1,535)
Other income (expenses):
Interest expense and other, net	(614)	7	(3,034)	7
Total other income (expenses)	(614)	7	(3,034)	7
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest, Total	(38,137)	(1,528)	(54,537)	(1,528)
Income tax benefit (provision)		(562)		(562)
Net income (loss)	(38,137)	(2,090)	(54,537)	(2,090)
Preferred dividends and accretion on redeemable noncontrolling interest	(11,067)	(896)	(19,718)	(896)
Net income (loss) available to common stockholders	(49,204)	(2,986)	(74,255)	(2,986)
Eliminations
Oil, natural gas and natural gas liquids sales:
Other		(3,532)		(3,532)
Total operating revenues		(3,532)		(3,532)
Production:
General and administrative	(677)	(2,138)	(1,353)	(2,138)
Depletion, depreciation and accretion	(1,332)	407	(2,822)	407
Full cost ceiling impairment	1,332		2,822
Total operating expenses	(677)	(1,731)	(1,353)	(1,731)
Income (loss) from operations	677	(1,801)	1,353	(1,801)
Other income (expenses):
Interest expense and other, net			(1)
Total other income (expenses)			(1)
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest, Total	677	(1,801)	1,352	(1,801)
Income tax benefit (provision)	(1)	690	5,922	690
Equity in earnings of subsidiary, net of tax	1,062,047	(24,242)	1,577,195	(51,425)
Net income (loss)	1,062,723	(25,353)	1,584,469	(52,536)
Net income (loss) available to common stockholders	$ 1,062,723	$ (25,353)	$ 1,584,469	$ (52,536)

CONDENSED CONSOLIDATING FINAN55

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Current assets:
Cash	$ 9,973	$ 43,713
Accounts receivable	214,517	276,559
Receivables from derivative contracts	235,869	352,530
Restricted cash	16,483	16,131
Inventory	3,848	4,693
Prepaids and other	8,042	9,079
Total current assets	488,732	702,705
Oil and natural gas properties (full cost method):
Evaluated	6,674,162	6,390,820
Unevaluated	1,801,135	1,829,786
Gross oil and natural gas properties	8,475,297	8,220,606
Less - accumulated depletion	(4,670,982)	(2,953,038)
Net oil and natural gas properties	3,804,315	5,267,568
Other operating property and equipment:
Gas gathering and other operating assets	127,685	126,804
Less - accumulated depreciation	(18,531)	(14,798)
Net other operating property and equipment	109,154	112,006
Other noncurrent assets:
Receivables from derivative contracts	77,605	151,324
Debt issuance costs, net	63,222	55,904
Deferred income taxes	93,026	136,826
Equity in oil and natural gas partnership	4,076	4,309
Funds in escrow and other	1,920	3,833
Total assets	4,642,050	6,434,475
Current liabilities:
Accounts payable and accrued liabilities	365,398	607,750
Asset retirement obligations	143	106
Current portion of deferred income taxes	93,026	136,826
Total current liabilities	458,567	744,682
Long -term debt	3,650,625	3,746,736
Other noncurrent liabilities:
Liabilities from derivative contracts	2,720	9,387
Asset retirement obligations	40,966	38,371
Other	$ 6,480	$ 5,964
Commitments and contingencies
Mezzanine equity:
Redeemable noncontrolling interest	$ 136,884	$ 117,166
Stockholders' equity:
Preferred stock
Common stock	$ 59	$ 42
Additional paid-in capital	3,274,798	2,995,402
Retained earnings (accumulated deficit)	(2,929,049)	(1,223,275)
Total stockholders' equity	345,808	1,772,169	$ 1,447,610
Total liabilities and stockholders' equity	4,642,050	6,434,475
Reportable legal entities | Parent Company
Current assets:
Prepaids and other	941	372
Total current assets	941	372
Other operating property and equipment:
Gas gathering and other operating assets	12,400	14,523
Less - accumulated depreciation	(7,715)	(6,522)
Net other operating property and equipment	4,685	8,001
Other noncurrent assets:
Debt issuance costs, net	63,222	55,904
Deferred income taxes	1,794	(54)
Intercompany notes and accounts receivable	4,897,210	4,891,427
Investment in subsidiary	(706,428)	803,786
Funds in escrow and other	515	515
Total assets	4,261,939	5,759,951
Current liabilities:
Current portion of deferred income taxes	1,794	1,794
Total current liabilities	1,794	1,794
Long -term debt	3,650,625	3,746,736
Other noncurrent liabilities:
Intercompany notes and accounts payable	$ 263,712	239,250
Other		$ 2
Commitments and contingencies
Stockholders' equity:
Preferred stock
Common stock	$ 59	$ 42
Additional paid-in capital	3,274,798	2,995,402
Retained earnings (accumulated deficit)	(2,929,049)	(1,223,275)
Total stockholders' equity	345,808	1,772,169
Total liabilities and stockholders' equity	4,261,939	5,759,951
Reportable legal entities | Guarantor Subsidiaries
Current assets:
Cash	39	15
Accounts receivable	204,321	262,543
Receivables from derivative contracts	235,869	352,530
Inventory	3,754	4,619
Prepaids and other	6,642	8,707
Total current assets	450,625	628,414
Oil and natural gas properties (full cost method):
Evaluated	6,415,220	6,169,553
Unevaluated	1,565,973	1,558,412
Gross oil and natural gas properties	7,981,193	7,727,965
Less - accumulated depletion	(4,457,633)	(2,797,606)
Net oil and natural gas properties	3,523,560	4,930,359
Other operating property and equipment:
Gas gathering and other operating assets	115,110	112,103
Less - accumulated depreciation	(10,783)	(8,259)
Net other operating property and equipment	104,327	103,844
Other noncurrent assets:
Receivables from derivative contracts	77,605	151,324
Deferred income taxes	91,232	136,880
Intercompany notes and accounts receivable	263,712	239,250
Investment in subsidiary	206,131	274,553
Equity in oil and natural gas partnership	4,076	4,309
Funds in escrow and other	1,403	684
Total assets	4,722,671	6,469,617
Current liabilities:
Accounts payable and accrued liabilities	397,614	592,340
Asset retirement obligations	143	106
Current portion of deferred income taxes	91,232	135,032
Total current liabilities	488,989	727,478
Other noncurrent liabilities:
Liabilities from derivative contracts	2,720	9,387
Asset retirement obligations	40,081	37,538
Intercompany notes and accounts payable	4,897,210	4,891,427
Other	$ 99	$ 1
Commitments and contingencies
Stockholders' equity:
Preferred stock
Retained earnings (accumulated deficit)	$ (706,428)	$ 803,786
Total stockholders' equity	(706,428)	803,786
Total liabilities and stockholders' equity	4,722,671	6,469,617
Reportable legal entities | Non-Guarantor Subsidiaries
Current assets:
Cash	9,934	43,698
Accounts receivable	10,246	14,858
Restricted cash	16,483	16,131
Inventory	94	74
Prepaids and other	459
Total current assets	37,216	74,761
Oil and natural gas properties (full cost method):
Evaluated	263,292	225,617
Unevaluated	235,162	271,374
Gross oil and natural gas properties	498,454	496,991
Less - accumulated depletion	(217,699)	(159,782)
Net oil and natural gas properties	280,755	337,209
Other operating property and equipment:
Gas gathering and other operating assets	175	178
Less - accumulated depreciation	(33)	(17)
Net other operating property and equipment	142	161
Other noncurrent assets:
Funds in escrow and other		2,634
Total assets	318,113	414,765
Current liabilities:
Accounts payable and accrued liabilities	8,209	50,706
Total current liabilities	8,209	50,706
Other noncurrent liabilities:
Asset retirement obligations	885	833
Other	$ 6,381	$ 5,961
Commitments and contingencies
Mezzanine equity:
Redeemable noncontrolling interest	$ 136,884	$ 117,166
Stockholders' equity:
Preferred stock
Additional paid-in capital	$ 402,261	$ 402,351
Retained earnings (accumulated deficit)	(236,507)	(162,252)
Total stockholders' equity	165,754	240,099
Total liabilities and stockholders' equity	318,113	414,765
Eliminations
Current assets:
Accounts receivable	(50)	(842)
Total current assets	(50)	(842)
Oil and natural gas properties (full cost method):
Evaluated	(4,350)	(4,350)
Gross oil and natural gas properties	(4,350)	(4,350)
Less - accumulated depletion	4,350	4,350
Other noncurrent assets:
Intercompany notes and accounts receivable	(5,160,922)	(5,130,677)
Investment in subsidiary	500,297	(1,078,339)
Funds in escrow and other	2
Total assets	(4,660,673)	(6,209,858)
Current liabilities:
Accounts payable and accrued liabilities	(40,425)	(35,296)
Total current liabilities	(40,425)	(35,296)
Other noncurrent liabilities:
Intercompany notes and accounts payable	$ (5,160,922)	$ (5,130,677)
Commitments and contingencies
Stockholders' equity:
Preferred stock
Additional paid-in capital	$ (402,261)	$ (402,351)
Retained earnings (accumulated deficit)	942,935	(641,534)
Total stockholders' equity	540,674	(1,043,885)
Total liabilities and stockholders' equity	$ (4,660,673)	$ (6,209,858)

CONDENSED CONSOLIDATING FINAN56

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Details 3) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net cash provided by (used in) operating activities		$ 217,530	$ 410,942
Cash flows from investing activities:
Oil and natural gas capital expenditures		(407,751)	(853,738)
Proceeds received from sale of oil and natural gas assets		1,111	465,452
Advance on carried interest			(189,442)
Other operating property and equipment capital expenditures		(7,478)	(29,525)
Funds held in escrow and other		1,901	(307)
Net cash provided by (used in) investing activities		(412,217)	(607,560)
Cash flows from financing activities:
Proceeds from borrowings		1,296,000	1,286,000
Repayments of borrowings		(1,129,000)	(1,027,000)
Debt issuance costs	$ (18,800)	(18,612)	(77)
HK TMS, LLC preferred stock issued			110,051
HK TMS, LLC tranche rights			4,516
Preferred dividends on redeemable noncontrolling interest		(15,354)	(493)
Restricted cash		(352)	(16,000)
Offering costs and other		(2,443)	(1,941)
Net cash provided by (used in) financing activities		160,947	355,056
Net increase (decrease) in cash		(33,740)	158,438
Cash at beginning of period		43,713	2,834
Cash at end of period	9,973	9,973	161,272
Eliminations
Cash flows from operating activities:
Net cash provided by (used in) operating activities			(1,394)
Cash flows from investing activities:
Oil and natural gas capital expenditures			1,394
Advances to subsidiary		(27,136)	232,101
Net cash provided by (used in) investing activities		(27,136)	233,495
Cash flows from financing activities:
Proceeds from subsidiary		27,136	(232,101)
Net cash provided by (used in) financing activities		27,136	(232,101)
Parent Company | Reportable legal entities
Cash flows from operating activities:
Net cash provided by (used in) operating activities		(187,977)	(185,017)
Cash flows from investing activities:
Other operating property and equipment capital expenditures		(457)	(1,277)
Advances to subsidiary		27,136	(69,223)
Net cash provided by (used in) investing activities		26,679	(70,500)
Cash flows from financing activities:
Proceeds from borrowings		1,296,000	1,286,000
Repayments of borrowings		(1,129,000)	(1,027,000)
Debt issuance costs		(18,612)	(77)
Preferred dividends on redeemable noncontrolling interest		(15,354)
Offering costs and other		(2,444)	(3,407)
Net cash provided by (used in) financing activities		161,298	255,516
Net increase (decrease) in cash			(1)
Cash at beginning of period			1
Guarantor Subsidiaries | Reportable legal entities
Cash flows from operating activities:
Net cash provided by (used in) operating activities		400,988	592,504
Cash flows from investing activities:
Oil and natural gas capital expenditures		(369,816)	(841,905)
Proceeds received from sale of oil and natural gas assets		1,111	431,635
Advance on carried interest			(62,500)
Other operating property and equipment capital expenditures		(7,024)	(28,248)
Advances to subsidiary			(162,878)
Funds held in escrow and other		1,901	(307)
Net cash provided by (used in) investing activities		(373,828)	(664,203)
Cash flows from financing activities:
Proceeds from subsidiary		(27,136)	69,223
Net cash provided by (used in) financing activities		(27,136)	69,223
Net increase (decrease) in cash		24	(2,476)
Cash at beginning of period		15	2,833
Cash at end of period	39	39	357
Non-Guarantor Subsidiaries | Reportable legal entities
Cash flows from operating activities:
Net cash provided by (used in) operating activities		4,519	4,849
Cash flows from investing activities:
Oil and natural gas capital expenditures		(37,935)	(13,227)
Proceeds received from sale of oil and natural gas assets			33,817
Advance on carried interest			(126,942)
Other operating property and equipment capital expenditures		3
Net cash provided by (used in) investing activities		(37,932)	(106,352)
Cash flows from financing activities:
HK TMS, LLC preferred stock issued			110,051
HK TMS, LLC tranche rights			4,516
Preferred dividends on redeemable noncontrolling interest			493
Restricted cash		(352)	16,000
Proceeds from subsidiary			162,878
Offering costs and other		1	1,466
Net cash provided by (used in) financing activities		(351)	262,418
Net increase (decrease) in cash		(33,764)	160,915
Cash at beginning of period		43,698
Cash at end of period	$ 9,934	$ 9,934	$ 160,915