Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001288403 | |
Entity Registrant Name | W&T OFFSHORE, INC. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-32414 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 72-1121985 | |
Entity Address, Address Line One | 5718 Westheimer Road, Suite 700 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77057-5745 | |
City Area Code | 713 | |
Local Phone Number | 626-8525 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 143,012,124 | |
Title of 12(b) Security | Common Stock, par value $0.00001 | |
Trading Symbol | WTI | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 215,475 | $ 245,799 |
Restricted cash | 4,417 | 4,417 |
Receivables: | ||
Oil and natural gas sales | 92,693 | 54,919 |
Joint interest, net | 14,221 | 9,745 |
Total receivables | 106,914 | 64,664 |
Prepaid expenses and other assets (Note 1) | 103,061 | 43,379 |
Total current assets | 429,867 | 358,259 |
Oil and natural gas properties and other, net (Note 1) | 731,692 | 665,252 |
Restricted deposits for asset retirement obligations | 21,958 | 16,019 |
Deferred income taxes | 103,238 | 102,505 |
Other assets (Note 1) | 63,392 | 51,172 |
Total assets | 1,350,147 | 1,193,207 |
Current liabilities: | ||
Accounts payable | 69,195 | 67,409 |
Undistributed oil and natural gas proceeds | 33,575 | 36,243 |
Advances from joint interest partners | 6,521 | 15,072 |
Asset retirement obligations | 67,274 | 56,419 |
Accrued liabilities (Note 1) | 209,845 | 106,140 |
Current portion of long-term debt | 39,881 | 42,960 |
Income tax payable | 177 | 133 |
Total current liabilities | 426,468 | 324,376 |
Long-term debt, net (Note 2) | 680,436 | 687,938 |
Asset retirement obligations, less current portion | 407,682 | 368,076 |
Other liabilities (Note 1) | 80,338 | 55,389 |
Deferred income taxes | 113 | 113 |
Commitments and contingencies (Note 12) | 4,495 | 4,495 |
Shareholders' deficit: | ||
Preferred stock, $0.00001 par value; 20,000 shares authorized; none issued at March 31, 2022 and December 31, 2021 | ||
Common stock, $0.00001 par value; 200,000 shares authorized; 145,881 issued and 143,012 outstanding at March 31, 2022; 145,732 issued and 142,863 outstanding at December 31, 2021 | 1 | 1 |
Additional paid-in capital | 553,175 | 552,923 |
Retained deficit | (778,394) | (775,937) |
Treasury stock, at cost; 2,869 shares at March 31, 2022 and December 31, 2021 | (24,167) | (24,167) |
Total shareholders' deficit | (249,385) | (247,180) |
Total liabilities and shareholders' deficit | $ 1,350,147 | $ 1,193,207 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares shares in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 145,881 | 145,732 |
Common stock, shares outstanding (in shares) | 143,012 | 142,863 |
Treasury stock, shares (in shares) | 2,869 | 2,869 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 191,004 | $ 125,647 |
Operating expenses: | ||
Lease operating expenses | 43,411 | 42,357 |
Gathering, transportation and production taxes | 5,267 | 6,315 |
Depreciation, depletion, and amortization | 24,675 | 20,769 |
Asset retirement obligations accretion | 6,236 | 5,868 |
General and administrative expenses | 13,776 | 10,712 |
Total operating expenses | 93,365 | 86,021 |
Operating income | 97,639 | 39,626 |
Interest expense, net | 19,883 | 15,034 |
Derivative loss | 79,997 | 24,578 |
Other expense, net | 905 | 963 |
Loss before income taxes | (3,146) | (949) |
Income tax benefit | (689) | (203) |
Net loss | $ (2,457) | $ (746) |
Net loss per common share: | ||
Basic | $ (0.02) | $ (0.01) |
Diluted | $ (0.02) | $ (0.01) |
Weighted average common shares outstanding | ||
Basic | 142,942 | 142,151 |
Diluted | 142,942 | 142,151 |
Oil and Condensate [Member] | ||
Revenues: | ||
Total revenues | $ 122,702 | $ 78,140 |
Natural Gas Liquids [Member] | ||
Revenues: | ||
Total revenues | 13,820 | 9,359 |
Natural Gas, Production [Member] | ||
Revenues: | ||
Total revenues | 51,366 | 36,209 |
Product and Service, Other [Member] | ||
Revenues: | ||
Total revenues | $ 3,116 | $ 1,939 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Balances (in shares) at Dec. 31, 2020 | 142,305 | 2,869 | |||
Balances at Dec. 31, 2020 | $ 1 | $ 550,339 | $ (734,459) | $ (24,167) | $ (208,286) |
Share-based compensation | 0 | 454 | 0 | 0 | 454 |
Net loss | $ 0 | 0 | (746) | $ 0 | (746) |
Balances (in shares) at Mar. 31, 2021 | 142,305 | 2,869 | |||
Balances at Mar. 31, 2021 | $ 1 | 550,793 | (735,205) | $ (24,167) | (208,578) |
Balances (in shares) at Dec. 31, 2021 | 142,863 | 2,869 | |||
Balances at Dec. 31, 2021 | $ 1 | 552,923 | (775,937) | $ (24,167) | (247,180) |
Share-based compensation | $ 0 | 520 | 0 | 0 | 520 |
Stock Issued (in shares) | 149 | ||||
Stock Issued | $ 0 | 0 | 0 | $ 0 | 0 |
RSUs surrendered for payroll taxes | (268) | (268) | |||
Net loss | (2,457) | (2,457) | |||
Balances (in shares) at Mar. 31, 2022 | 143,012 | 2,869 | |||
Balances at Mar. 31, 2022 | $ 1 | $ 553,175 | $ (778,394) | $ (24,167) | $ (249,385) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities: | ||
Net loss | $ (2,457) | $ (746) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and accretion | 30,911 | 26,637 |
Amortization of debt items and other items | 2,594 | 2,019 |
Share-based compensation | 520 | 454 |
Derivative loss | 79,997 | 24,578 |
Derivative cash payments, net | (30,515) | (4,604) |
Deferred income taxes | (733) | (203) |
Changes in operating assets and liabilities: | ||
Oil and natural gas receivables | (37,774) | (11,101) |
Joint interest receivables | (4,476) | (4,394) |
Prepaid expenses and other assets | (12,183) | (7,575) |
Income tax | 44 | |
Asset retirement obligation settlements | (5,492) | (962) |
Cash advances from JV partners | (8,550) | (1,023) |
Accounts payable, accrued liabilities and other | 15,651 | 21,884 |
Net cash provided by operating activities | 27,537 | 44,964 |
Investing activities: | ||
Investment in oil and natural gas properties and equipment | (17,439) | (1,575) |
Changes in operating assets and liabilities associated with investing activities | 2,630 | (1,758) |
Acquisition of property interests | (30,153) | 0 |
Purchases of furniture, fixtures and other | 2 | |
Net cash used in investing activities | (44,962) | (3,331) |
Financing activities: | ||
Repayments on credit facility | (32,000) | |
Repayments on Term Loan | (12,630) | |
Debt issuance costs | (269) | |
Net cash used in financing activities | (12,899) | (32,000) |
(Decrease) increase in cash and cash equivalents | (30,324) | 9,633 |
Cash and cash equivalents and restricted cash, beginning of period | 250,216 | 43,726 |
Cash and cash equivalents and restricted cash, end of period | $ 219,892 | $ 53,359 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | NOTE 1 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations W&T Offshore, Inc. (with subsidiaries referred to herein as “W&T” or the “Company”) is an independent oil and natural gas producer with substantially all of its operations offshore in the Gulf of Mexico. The Company is active in the exploration, development and acquisition of oil and natural gas properties. Interests in fields, leases, structures and equipment are primarily owned by the Company and its 100% owned subsidiaries, W & T Energy VI, LLC, Aquasition LLC (“A-I, LLC”), and Aquasition II, LLC (“A-II LLC), and through a proportionately consolidated interest in Monza Energy LLC (“Monza”), as described in more detail in Note 6 – Joint Venture Drilling Program Basis of Presentation Operating results for interim periods are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2021 Annual Report on Form 10-K (the “2021 Annual Report”). Reclassification – For presentation purposes, as of March 31, 2021, Derivative loss has been reclassified from “Operating income” on the Condensed Consolidated Statement of Operations in order to conform to the current period presentation. Such reclassification had no effect on our results of operations, financial position or cash flows. For presentation purposes, as of March 31, 2021, Gathering and transportation and Production taxes have been combined into one line item within “Operating income” on the Condensed Consolidated Statement of Operations in order to conform to the current period presentation. Such reclassification had no effect on our results of operations, financial position or cash flows. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods and the reported amounts of proved oil and natural gas reserves. Actual results could differ from those estimates. Summary of Significant Accounting Policies Revenue and Accounts Receivable – Revenue from the sale of crude oil, natural gas liquids (“NGLs”) and natural gas is recognized when performance obligations under the terms of the respective contracts are satisfied; this generally occurs with the delivery of crude oil, NGLs and natural gas to the customer. Revenue is concentrated with certain major oil and gas companies. There have been no significant changes to the Company’s contracts with customers during the three months ended March 31, 2022. The Company also has receivables related to joint interest arrangements primarily with mid-size oil and gas companies with a substantial majority of the net receivable balance concentrated in less than ten companies. A loss methodology is used to develop the allowance for credit losses on material receivables to estimate the net amount to be collected. The loss methodology uses historical data, current market conditions and forecasts of future economic conditions. Our maximum exposure at any time would be the receivable balance. Joint interest receivables on the Condensed Consolidated Balance Sheet are presented net of allowance for credit losses of $10.9 million and $10.0 million as of March 31, 2022 and December 31, 2021, respectively. Employee Retention Credit – General and administrative expenses Prepaid Expenses and Other Assets – March 31, 2022 December 31, 2021 Derivatives (1) $ 77,658 $ 21,086 Unamortized insurance/bond premiums 7,291 5,400 Prepaid deposits related to royalties 9,189 8,441 Prepayment to vendors 4,461 4,522 Prepayments to joint interest partners 2,653 2,808 Debt issue costs 1,763 1,065 Other 46 57 Prepaid expenses and other assets $ 103,061 $ 43,379 (1) Includes closed contracts which have not yet settled. Oil and Natural Gas Properties and Other, Net – March 31, 2022 December 31, 2021 Oil and natural gas properties and equipment $ 8,727,521 $ 8,636,408 Furniture, fixtures and other 20,845 20,844 Total property and equipment 8,748,366 8,657,252 Less: Accumulated depreciation, depletion, amortization and impairment 8,016,674 7,992,000 Oil and natural gas properties and other, net $ 731,692 $ 665,252 Other Assets (long-term) – March 31, 2022 December 31, 2021 Right-of-Use assets $ 10,604 $ 10,602 Investment in White Cap, LLC 2,740 2,533 Proportional consolidation of Monza (Note 6) (531) 2,511 Derivatives (1) 49,550 34,435 Other 1,029 1,091 Total other assets (long-term) $ 63,392 $ 51,172 (1) Includes open contracts and prepaid premiums paid for purchased put and call options. Accrued Liabilities – March 31, 2022 December 31, 2021 Accrued interest $ 25,405 $ 10,154 Accrued salaries/payroll taxes/benefits 3,997 9,617 Litigation accruals 500 646 Lease liability 1,409 1,115 Derivatives (1) 177,298 81,456 Other 1,236 3,152 Total accrued liabilities $ 209,845 $ 106,140 (1) Includes closed contracts which have not yet settled. Other Liabilities (long-term) – March 31, 2022 December 31, 2021 Dispute related to royalty deductions $ 4,937 $ 5,177 Derivatives (Note 8) 63,318 37,989 Lease liability 10,936 11,227 Other 1,147 996 Total other liabilities (long-term) $ 80,338 $ 55,389 At-the-Market Equity Offering – under our "at-the-market" equity offering program (the "ATM Program"). |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Debt [Text Block] | NOTE 2 — DEBT The components comprising the Company’s debt are presented in the following table (in thousands): March 31, December 31, 2022 2021 Term Loan: Principal $ 178,229 $ 190,859 Unamortized debt issuance costs (6,108) (7,545) Total Term Loan 172,121 183,314 Credit Agreement borrowings: — — Senior Second Lien Notes: Principal 552,460 552,460 Unamortized debt issuance costs (4,264) (4,876) Total Senior Second Lien Notes 548,196 547,584 Less current portion (39,881) (42,960) Total long-term debt, net $ 680,436 $ 687,938 Current Portion of Long-Term Debt Term Loan (Subsidiary Credit Agreement) On May 19, 2021, A-I LLC and A-II LLC (collectively, the “Subsidiary Borrowers”), both Delaware limited liability companies and indirect, wholly-owned subsidiaries of W&T Offshore, Inc., entered into a credit agreement (the “Subsidiary Credit Agreement”) providing for a term loan in an aggregate principal amount equal to $215.0 million (the “Term Loan”). The Term Loan requires quarterly amortization payments commencing September 30, 2021. The Term Loan bears interest at a fixed rate of 7% per annum and will mature on May 19, 2028. The Term Loan is non-recourse to the Company and any subsidiaries other than the Subsidiary Borrowers and the subsidiary that owns the equity in the Subsidiary Borrowers, and is secured by the first lien security interests in the equity of the Subsidiary Borrowers and a first lien mortgage security interest and mortgages on certain assets of the Subsidiary Borrowers (the Mobile Bay Properties, defined below). In exchange for the net cash proceeds received by the Subsidiary Borrowers from the Term Loan, the Company assigned to (a) A-I LLC all of its interests in certain oil and gas leasehold interests and associated wells and units located in State of Alabama waters and U.S. federal waters in the offshore Gulf of Mexico, in the Mobile Bay region (such assets, the “Mobile Bay Properties”) and (b) A-II LLC its interest in certain gathering and processing assets located (i) in State of Alabama waters and U.S. federal waters in the offshore Gulf of Mexico, in the Mobile Bay region and (ii) onshore near Mobile, Alabama, including offshore gathering pipelines, an onshore crude oil treating and sweetening facility, an onshore gathering pipeline, and associated assets (such assets, the “Midstream Assets”). A portion of the proceeds to the Company was used to repay the $48.0 million outstanding balance on its reserve-based lending facility under the Credit Agreement (defined below), with the majority of the proceeds to W&T expected to be used for general corporate purposes, including oil and gas acquisitions, development activities, and other opportunities to grow the Company’s broader asset base. The transactions contemplated by the Subsidiary Credit Agreement, including the assignment of the Mobile Bay Properties to A-I LLC and the assignment of the Midstream Assets to A-II LLC are referred to herein as the “Mobile Bay Transaction”. For information about the Mobile Bay Transaction refer to Note 5 – Mobile Bay Transaction Credit Agreement On November 2, 2021, the Company entered into the Ninth Amendment to the Sixth Amended and Restated Credit Agreement (the “Ninth Amendment”), which establishes a short-term $100.0 million first priority lien secured revolving facility with borrowings limited to a borrowing base of $50.0 million (the “Credit Agreement”) provided by Calculus Lending, LLC (“Calculus”), a company affiliated with, and controlled by W&T’s Chairman and Chief Executive Officer, Tracy W. Krohn, as sole lender under the Credit Agreement. A committee of the independent members of the Board of Directors reviewed and approved the amendments given the Chief Executive Officer’s affiliation with Calculus. As of November 2, 2021, the Company cash collateralized each of the outstanding letters of credit in the aggregate amount of approximately $4.4 million. Alter Domus (US) LLC was appointed to replace Toronto Dominion (Texas) LLC as administrative agent under the Credit Agreement. On March 8, 2022, the Company entered into the Tenth Amendment to Credit Agreement (the “Tenth Amendment”), which extended the maturity date and Calculus’ commitment to January 3, 2023. As a result of the Ninth Amendment and Tenth Amendment and related assignments and agreements, the · The revised borrowing base is $50.0 million. · The commitment will expire and final maturity of any and all outstanding loans is January 3, 2023. Outstanding borrowings will accrue interest at LIBOR plus · · · to 1.00. ● As of the last day of any fiscal quarter commencing with the fiscal quarter ending March 31, 2022, the Company and its restricted subsidiaries on a consolidated basis must pass a “Stress Test” consisting of an analysis conducted by the lender in good faith and in consultation with the Company based upon the latest engineering report furnished to lender, which analysis is designed to determine whether the future net revenues expected to accrue to the Company’s and its guarantor subsidiaries’ interest (and the interest of certain joint ventures) in the oil and gas properties included in the properties used to determine the latest borrowing base during half of the remaining expected economic lives of such properties are sufficient to satisfy the aggregate first lien indebtedness of the Company and its restricted subsidiaries in accordance with the terms of such indebtedness assuming the revolving credit facility is 100% funded or fully utilized. ● In connection with the Tenth Amendment, Calculus was paid arrangement and upfront fees of approximately $1.0 million in the aggregate during the three months ended March 31, 2022. Availability under the Credit Agreement is subject to redetermination of our borrowing base that may be requested at the discretion of either the lender or the Company in accordance with the Credit Agreement. The borrowing base is calculated by the lender based on their evaluation of proved reserves and their own internal criteria. Any redetermination by the lender to change the borrowing base will result in a similar change in the availability under the Credit Agreement. The Credit Agreement is secured by a first priority lien on substantially all of the Company’s and its guarantor subsidiaries’ assets, excluding those assets of the Subsidiary Borrowers, which liens were released in the Mobile Bay Transaction (as described in Note 5 – Mobile Bay Transaction As of March 31, 2022, we had no borrowings outstanding under the Credit Agreement. Separately, as of March 31, 2022 and December 31, 2021, the Company had $4.4 million, outstanding in letters of credit which have been cash collateralized. 9.75% Senior Second Lien Notes Due 2023 On October 18, 2018, W&T issued $625.0 million of 9.75% Senior Second Lien Notes due 2023 (the “Senior Second Lien Notes”), which were issued at par with an interest rate of 9.75% per annum and mature on November 1, 2023, and are governed under the terms of the Indenture of the Senior Second Lien Notes (the “Indenture”). The estimated annual effective interest rate on the Senior Second Lien Notes is 10.3%, which includes amortization of debt issuance costs. Interest on the Senior Second Lien Notes is payable in arrears on May 1 and November 1 of each year. During the year ended December 31, 2020, we acquired $72.5 million in principal of our outstanding Senior Second Lien Notes for $23.9 million and recorded a non-cash gain on purchase of debt of $47.5 million, which included a reduction of $1.1 million related to the write-off of unamortized debt issuance costs. No such transactions were completed during the three months ended March 31, 2022. As a result of these purchases, $552.5 million in principal amount of Senior Second Lien Notes remains issued and outstanding as of March 31, 2022 and December 31, 2021. The Senior Second Lien Notes are secured by a second-priority lien on all of our assets that are secured under the Credit Agreement, which does not include the Mobile Bay Properties and the related Midstream Assets. The Senior Second Lien Notes contain covenants that limit or prohibit our ability and the ability of certain of our subsidiaries to: (i) make investments; (ii) incur additional indebtedness or issue certain types of preferred stock; (iii) create certain liens; (iv) sell assets; (v) enter into agreements that restrict dividends or other payments from the Company’s subsidiaries to the Company; (vi) consolidate, merge or transfer all or substantially all of the assets of the Company; (vii) engage in transactions with affiliates; (viii) pay dividends or make other distributions on capital stock or subordinated indebtedness; and (ix) create subsidiaries that would not be restricted by the covenants of the Indenture. These covenants are subject to exceptions and qualifications set forth in the Indenture. In addition, most of the above described covenants will terminate if both S&P Global Ratings, a division of S&P Global Inc., and Moody’s Investors Service, Inc. assign the Senior Second Lien Notes an investment grade rating and no default exists with respect to the Senior Second Lien Notes. Covenants As of March 31, 2022 and for all prior measurement periods presented, the Company was in compliance with all applicable covenants of the Credit Agreement and the Indenture. Fair Value Measurements For information about fair value measurements of long-term debt, refer to Note 3 – Fair Value Measurements |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 3 — FAIR VALUE MEASUREMENTS Derivative Financial Instruments The Company measures the fair value of our open derivative financial instruments by applying the income approach, using models with inputs that are classified within Level 2 of the valuation hierarchy. The inputs used for the fair value measurement of open derivative financial instruments are the exercise price, the expiration date, the settlement date, notional quantities, the implied volatility, the discount curve with spreads and published commodity future prices. Open derivative financial instruments are reported in the Condensed Consolidated Balance Sheets using fair value. See Note 8 – Derivative Financial Instruments The following table presents the fair value of our open derivative financial instruments (in thousands): March 31, 2022 December 31, 2021 Assets: Derivative instruments - open contracts, current $ 73,090 $ 19,215 Derivative instruments - open contracts, long-term 49,550 34,435 Liabilities: Derivative instruments - open contracts, current 157,348 73,190 Derivative instruments - open contracts, long-term 63,318 37,989 Debt The fair value of the Term Loan was measured using a discounted cash flows model and current market rates. The fair value of our Senior Second Lien Notes was measured using quoted prices, although the market is not a highly liquid market. The fair value of our debt was classified as Level 2 within the valuation hierarchy. See Note 2 – Debt The following table presents the net value and fair value of our long-term debt (in thousands): March 31, 2022 December 31, 2021 Net Value Fair Value Net Value Fair Value Liabilities: Term Loan $ 172,121 $ 173,210 $ 183,314 $ 190,579 Senior Second Lien Notes 548,196 551,162 547,584 527,715 Total 720,317 724,372 730,898 718,294 |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2022 | |
Asset Acquisition [Abstract] | |
ACQUISITIONS | NOTE 4 — ACQUISITIONS On January 5, 2022, the Company entered into a purchase and sale agreement with ANKOR E&P Holdings Corporation and KOA Energy LP (“ANKOR”) to acquire their interests in and operatorship of certain oil and natural gas producing properties in federal shallow waters in the Gulf of Mexico at Ship Shoal 230, South Marsh Island 27/Vermilion 191, and South Marsh Island 73 fields for $47.0 million. The transaction closed on February 1, 2022, and after normal and customary post-effective date adjustments (including net operating cash flow attributable to the properties from the effective date of July 1, 2021 to the close date), cash consideration of approximately $30.2 million was paid to the sellers. The transaction was funded using cash on hand. The Company also assumed the related asset retirement obligations (“ARO”) associated with these assets. The Company determined that the assets acquired did not meet the definition of a business; therefore, the transaction was accounted for as an asset acquisition. Acquisitions qualifying as an asset acquisition requires, among other items, that the cost of the assets acquired and liabilities assumed to be recognized on the Condensed Consolidated Balance Sheets by allocating the asset cost on a relative fair value basis. The fair value measurements of the oil and natural gas properties acquired and asset retirement obligations assumed were derived utilizing an income approach and based, in part, on significant inputs not observable in the market. These inputs represent Level 3 measurements in the fair value hierarchy and include, but are not limited to, estimates of reserves, future operating and development costs, future commodity prices, estimated future cash flows and appropriate discount rates. These inputs required significant judgments and estimates by the Company’s management at the time of the valuation. Transaction costs incurred on an asset acquisition are capitalized as a component of the assets acquired. The amounts recorded on the Condensed Consolidated Balance Sheet for the purchase price allocation and liabilities assumed are presented in the following table (in thousands): February 1, 2022 Oil and natural gas properties and other, net $ 50,450 Restricted deposits for asset retirement obligations 6,196 Asset retirement obligations (26,493) Allocated purchase price $ 30,153 |
MOBILE BAY TRANSACTION
MOBILE BAY TRANSACTION | 3 Months Ended |
Mar. 31, 2022 | |
Notes To Financial Statements [Abstract] | |
Mobile Bay Transaction | NOTE 5 — MOBILE BAY TRANSACTION On May 19, 2021, the Company’s wholly-owned special purpose vehicles (the “SPVs”), A-I LLC and A-II LLC or the Subsidiary Borrowers, entered into the Subsidiary Credit Agreement providing for the Term Loan in an aggregate principal amount equal to $215.0 million. Proceeds of the Term Loan were used by the Subsidiary Borrowers to (i) fund the acquisition of the Mobile Bay Properties and the Midstream Assets from the Company and (ii) pay fees, commissions and expenses in connection with the transactions contemplated by the Subsidiary Credit Agreement and the other related loan documents, including to enter into certain swap and put derivative contracts described in more detail under Note 8 – Derivative Financial Instruments As part of the Mobile Bay Transaction, the SPVs entered into a management services agreement (the “Services Agreement”) with the Company, pursuant to which the Company will provide (a) certain operational and management services for i) the Mobile Bay Properties and ii) the Midstream Assets and (b) certain corporate, general and administrative services for A-I LLC and A-II LLC (collectively in this capacity, the “Services Recipient”). Under the Services Agreement, the Company will indemnify the Services Recipient with respect to claims, losses or liabilities incurred by the Services Agreement Parties that relate to personal injury or death or property damage of the Company, in each case, arising out of performance of the Services Agreement, except to the extent of the gross negligence or willful misconduct of the Services Recipient. The Services Recipient will indemnify the Company with respect to claims, losses or liabilities incurred by the Company that relate to personal injury or death of the Services Recipient or property damage of the Services Recipient, in each case, arising out of performance of the Services Agreement, except to the extent of the gross negligence or willful misconduct of the Company. The Services Agreement will terminate upon the earlier of (a) termination of the Subsidiary Credit Agreement and payment and satisfaction of all obligations thereunder or (b) the exercise of certain remedies by the secured parties under the Subsidiary Credit Agreement and the realization by such secured parties upon any of the collateral under the Subsidiary Credit Agreement. The SPVs are wholly-owned subsidiaries of the Company; however, the assets of the SPVs will not be available to satisfy the debt or contractual obligations of any non-SPV entities, including debt securities or other contractual obligations of W&T Offshore, Inc., and the SPVs do not bear any liability for the indebtedness or other contractual obligations of any non-SPVs, and vice versa. Consolidation and Carrying Amounts As of March 31, 2022, W&T recorded $33.4 million in Cash and cash equivalents, $275.5 million, in Oil and natural gas properties and other, net , $39.9 million in Current portion of long-term debt, $56.0 million in Asset retirement obligations , and $132.2 million in Long-term debt, net in the Condensed Consolidated Balance Sheet related to the consolidation of the Subsidiary Borrowers and the subsidiary that owns the equity of the Subsidiary Borrowers. As of December 31, 2021, W&T recorded $38.9 million in Cash and cash equivalents, $272.7 million, in Oil and natural gas properties and other, net , $43.0 million in Current portion of long-term debt, $54.5 million in Asset retirement obligations , and $140.4 million in Long-term debt, net in the Condensed Consolidated Balance Sheet related to the consolidation of the Subsidiary Borrowers and the subsidiary that owns the equity of the Subsidiary Borrowers . During the three months ended March 31, 2022, W&T recognized $47.5 million in Total revenues , $19.6 million in Operating costs and expenses , $96.2 million in Derivative loss , and $4.8 million in Interest expense, net in the Condensed Consolidated Statement of Operations related to the consolidation of the operations of the Subsidiary Borrowers and the subsidiary that owns the equity of the Subsidiary Borrowers. No revenues or expenses were recorded in the three months ended March 31, 2021 related to the consolidation of the Subsidiary Borrowers and the subsidiary that owns the equity of the Subsidiary Borrowers as the transaction was effective subsequent to March 31, 2021. |
JOINT VENTURE DRILLING PROGRAM
JOINT VENTURE DRILLING PROGRAM | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Joint Venture Drilling Program [Text Block] | NOTE 6 — JOINT VENTURE DRILLING PROGRAM In March 2018, W&T and two other initial members formed and initially funded Monza, which jointly participates with us in the exploration, drilling and development of certain drilling projects (the “Joint Venture Drilling Program”) in the Gulf of Mexico. Subsequent to the initial closing, additional investors joined as members of Monza during 2018 and total commitments by all members, including W&T’s commitment to fund its retained interest in Monza projects held outside of Monza, was $361.4 million. W&T contributed 88.94% of its working interest in certain identified undeveloped drilling projects to Monza and retained 11.06% of its working interest. The Joint Venture Drilling Program is structured so that we initially receive an aggregate of 30.0% of the revenues less expenses, through both our direct ownership of our retained working interest in the Monza projects and our indirect interest through our interest in Monza, for contributing 20.0% of the estimated total well costs plus associated leases and providing access to available infrastructure at agreed-upon rates. Any exceptions to this structure are approved by the Monza board. The members of Monza are third-party investors, W&T and an entity owned and controlled by Mr. Tracy W. Krohn, our Chairman and Chief Executive Officer. The Krohn entity invested as a minority investor on the same terms and conditions as the third-party investors, and its investment is limited to 4.5% of total invested capital within Monza. The entity affiliated with Mr. Krohn made a capital commitment to Monza of $14.5 million. Monza is an entity separate from any other entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of Monza’s assets prior to any value in Monza becoming available to holders of its equity. The assets of Monza are not available to pay creditors of the Company and its affiliates. Through March 31, 2022, ten wells have been completed since the inception of the Joint Venture Drilling Program. W&T is the operator for eight of the ten wells completed through March 31, 2022. Through March 31, 2022, members of Monza made partner capital contributions, including our contributions of working interest in the drilling projects, to Monza totaling $302.4 million and received cash distributions totaling $95.8 million. W&T’s net contribution to Monza, reduced by distributions received, as of March 31, 2022 was $47.8 million. Consolidation and Carrying Amounts W&T’s interest in Monza is considered to be a variable interest that we account for using proportional consolidation. Through March 31, 2022, there have been no events or changes that would cause a redetermination of the variable interest status. W&T does not fully consolidate Monza because the Company is not considered the primary beneficiary of Monza. As of March 31, 2022, W&T recorded $2.1 million, net, in Oil and natural gas properties and other, net Other assets Asset retirement obligations Oil and natural gas properties and other, net Other assets Advances from joint interest partners For the three months ended March 31, 2022, W&T recorded $6.5 million in Total revenues Operating costs and expenses Total revenues Operating costs and expenses |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | NOTE 7 — ASSET RETIREMENT OBLIGATIONS AROs represent the estimated present value of the amount incurred to plug, abandon and remediate our properties at the end of their productive lives. A summary of the changes to ARO is as follows (in thousands): Three Months Ended March 31, 2022 Asset retirement obligations, beginning of period $ 424,495 Liabilities settled (5,492) Accretion of discount 6,236 Liabilities incurred and assumed through acquisition 26,493 Revisions of estimated liabilities (1) 23,224 Asset retirement obligations, end of period 474,956 Less current portion (67,274) Long-term $ 407,682 (1) Revisions in 2022 were primarily due to moving additional projects to current term and increases in current pricing. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 8 — DERIVATIVE FINANCIAL INSTRUMENTS W&T’s market risk exposure relates primarily to commodity prices. The Company attempts to mitigate a portion of its commodity price risk and stabilize cash flows associated with sales of oil and natural gas production through the use of oil and natural gas swaps, costless collars, sold calls and purchased puts. W&T has elected not to designate commodity derivative contracts for hedge accounting. Accordingly, commodity derivatives are recorded on the Condensed Consolidated Balance Sheets at fair value with settlements of such contracts, and changes in the unrealized fair value, recorded as Derivative loss on the Condensed Consolidated Statements of Operations in each period presented. Net cash provided by operating activities The crude oil contracts are based on West Texas Intermediate (“WTI”) crude oil prices and the natural gas contracts are based off the Henry Hub prices, both of which are quoted off the New York Mercantile Exchange (“NYMEX”). The following table reflects the contracted volumes and weighted average prices under the terms of the Company’s open derivative contracts as of March 31, 2022: Average Instrument Daily Total Weighted Weighted Weighted Period Type Volumes Volumes Strike Price Put Price Call Price Crude Oil - WTI (NYMEX) (Bbls) (1) (Bbls) (1) ($/Bbls) (1) ($/Bbls) (1) ($/Bbls) (1) Apr 2022 - Nov 2022 swaps 2,410 588,027 $ 52.83 $ — $ — Apr 2022 - Nov 2022 collars 2,403 586,377 $ — $ 43.15 $ 60.47 Natural Gas - Henry Hub (NYMEX) (MMbtu) (2) (MMbtu) (2) ($/MMbtu) (2) ($/MMbtu) (2) ($/MMbtu) (2) Apr 2022 - Dec 2022 calls 111,519 30,667,734 $ — $ — $ 3.78 Jan 2023 - Dec 2023 calls 70,000 25,550,000 $ — $ — $ 3.50 Jan 2024 - Dec 2024 calls 65,000 23,790,000 $ — $ — $ 3.50 Jan 2025 - Mar 2025 calls 62,000 5,580,000 $ — $ — $ 3.50 Apr 2022 - Dec 2022 collars 42,218 11,610,000 $ — $ 1.85 $ 3.02 Apr 2022 - Nov 2022 swaps 16,224 3,958,540 $ 2.52 $ — $ — Apr 2022 - Dec 2022 (3) swaps 78,545 21,600,000 $ 2.55 $ — $ — Jan 2023 - Dec 2023 (3) swaps 72,329 26,400,000 $ 2.48 $ — $ — Jan 2024 - Dec 2024 (3) swaps 65,574 24,000,000 $ 2.46 $ — $ — Jan 2025 - Mar 2025 (3) swaps 63,333 5,700,000 $ 2.72 $ — $ — Apr 2025 - Dec 2025 (3) puts 62,182 17,100,000 $ — $ 2.27 $ — Jan 2026 - Dec 2026 (3) puts 55,890 20,400,000 $ — $ 2.35 $ — Jan 2027 - Dec 2027 (3) puts 52,603 19,200,000 $ — $ 2.37 $ — Jan 2028 - Apr 2028 (3) puts 49,587 6,000,000 $ — $ 2.50 $ — (1) Bbls – Barrels (2) MMbtu – Million British Thermal Units (3) These contracts were entered into by the Company’s wholly owned subsidiary, A-I LLC, in conjunction with the Mobile Bay Transaction (see Note 5 – Mobile Bay Transaction). The following amounts were recorded in the Condensed Consolidated Balance Sheets in the categories presented and include the fair value of open contracts, unamortized premiums, and closed contracts which had not yet settled (in thousands): March 31, 2022 December 31, 2021 Prepaid expenses and other current assets $ 77,658 $ 21,086 Other assets (long-term) 49,550 34,435 Accrued liabilities 177,298 81,456 Other liabilities (long-term) 63,318 37,989 The amounts recorded on the Condensed Consolidated Balance Sheets are on a gross basis. Changes in the fair value and settlements of contracts are recorded on the Condensed Consolidated Statements of Operations as Derivative loss Three Months Ended March 31, 2022 2021 Realized loss $ 43,694 $ 8,244 Unrealized loss 36,303 16,334 Derivative loss $ 79,997 $ 24,578 Cash payments on commodity derivative contract settlements, net, are included within Net cash provided by operating activities Three Months Ended March 31, 2022 2021 Derivative loss $ 79,997 $ 24,578 Derivative cash payments, net (30,515) (4,604) |
SHARE-BASED AWARDS AND CASH BAS
SHARE-BASED AWARDS AND CASH BASED AWARDS | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE 9 — SHARE-BASED AWARDS AND CASH BASED AWARDS The W&T Offshore, Inc. Amended and Restated Incentive Compensation Plan (as amended from time to time, the “Plan”) was approved by the Company’s shareholders in 2010. Under the Plan, the Company may issue, subject to the approval of the Board of Directors, stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents, other stock-based awards, performance units or shares, cash awards, substitute awards or any combination of the foregoing to employees, directors and consultants. Share-Based Awards to Employees Restricted Stock Units (“RSUs”) Performance Share Units (“PSUs”) Share-Based Awards to Non-Employee Directors There was no activity related to Restricted Shares during the three months ended March 31, 2022. Restricted Shares currently outstanding relate to the 2021 grants. Share-Based Compensation Expense Share-based compensation expense is recorded in the line General and administrative expense The Company did not grant any share-based awards during the three months ended March 31, 2022. As such, all share-bases incentive compensation expense recognized during the three months ended March 31, 2022 relates to awards granted in prior periods. A summary of incentive compensation expense under share-based payment arrangements is as follows (in thousands): Three Months Ended March 31, 2022 2021 Restricted stock units $ 251 $ 338 Performance share units 205 — Restricted Shares 64 116 Total $ 520 $ 454 Cash-Based Incentive Compensation In addition to share-based compensation, both short-term and long-term cash-based incentive awards were granted under the Plan to all eligible employees in 2021. The short-term cash-based incentive awards granted in 2021 were paid in March 2022. No cash-based incentive awards were granted during the three months ended March 31, 2022. Share-Based Awards and Cash-Based Awards Compensation Expense Three Months Ended March 31, 2022 2021 Share-based compensation included in: General and administrative expenses $ 520 $ 454 Cash-based incentive compensation included in: Lease operating expense (1) 255 839 General and administrative expenses (1) 1,957 2,682 Total charged to operating (loss) income $ 2,732 $ 3,975 (1) Includes adjustments of accruals to actual payments. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 10 — INCOME TAXES Tax Benefit and Tax Rate – Valuation Allowance – on our deferred tax assets, we consider whether it is more likely than not that some portion or all of them will not be realized. As of March 31, 2022 and December 31, 2021, our valuation allowance was $25.8 million and $24.4 million, respectively, and relates primarily to state net operating losses and the disallowed interest expense limitation carryover. Income Taxes Receivable, Refunds and Payments – . The tax years 2018 through 2021 remain open to examination by the tax jurisdictions to which we are subject. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 11 — EARNINGS PER SHARE The following table presents the calculation of basic and diluted (loss) earnings per common share (in thousands, except per share amounts): Three Months Ended March 31, 2022 2021 Net loss $ (2,457) $ (746) Less portion allocated to nonvested shares — — Net loss allocated to common shares $ (2,457) $ (746) Weighted average common shares outstanding - basic 142,942 142,151 Dilutive effect of securities — — Weighted average common shares outstanding - diluted 142,942 142,151 Earnings per common share: Basic $ (0.02) $ (0.01) Diluted (0.02) (0.01) Shares excluded due to being anti-dilutive (weighted-average) 717 919 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 — CONTINGENCIES Appeal with the Office of Natural Resources Revenue (“ONRR”) – , , , . Notices of Proposed Civil Penalty Assessments – The first and second installments were paid in March 2021 and March 2022, respectively . In addition, W&T committed to implement a Safety Improvement Plan with various deliverables due over a period ending in 2022, which we are on schedule to complete before the deadline . Retained Liabilities Related to Divested Property Interests – Other Claims – |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events | |
Subsequent Events | NOTE 13 — SUBSEQUENT EVENTS On April 1, 2022, the Company entered into a purchase and sale agreement with an undisclosed private seller to acquire the remaining working interests in certain oil and natural gas producing properties in federal shallow waters of the Gulf of Mexico at the Ship Shoal 230, South Marsh Island 27/Vermilion 191, and South Marsh Island 73 fields purchased during the three months ended March 31, 2022 from ANKOR. The transaction had an effective date and closing date of April 1, 2022. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation Operating results for interim periods are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2021 Annual Report on Form 10-K (the “2021 Annual Report”). |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification – For presentation purposes, as of March 31, 2021, Derivative loss has been reclassified from “Operating income” on the Condensed Consolidated Statement of Operations in order to conform to the current period presentation. Such reclassification had no effect on our results of operations, financial position or cash flows. For presentation purposes, as of March 31, 2021, Gathering and transportation and Production taxes have been combined into one line item within “Operating income” on the Condensed Consolidated Statement of Operations in order to conform to the current period presentation. Such reclassification had no effect on our results of operations, financial position or cash flows. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, the reported amounts of revenues and expenses during the reporting periods and the reported amounts of proved oil and natural gas reserves. Actual results could differ from those estimates. |
Revenue from Contract with Customer and Accounts Receivable [Policy Text Block] | Revenue and Accounts Receivable – Revenue from the sale of crude oil, natural gas liquids (“NGLs”) and natural gas is recognized when performance obligations under the terms of the respective contracts are satisfied; this generally occurs with the delivery of crude oil, NGLs and natural gas to the customer. Revenue is concentrated with certain major oil and gas companies. There have been no significant changes to the Company’s contracts with customers during the three months ended March 31, 2022. The Company also has receivables related to joint interest arrangements primarily with mid-size oil and gas companies with a substantial majority of the net receivable balance concentrated in less than ten companies. A loss methodology is used to develop the allowance for credit losses on material receivables to estimate the net amount to be collected. The loss methodology uses historical data, current market conditions and forecasts of future economic conditions. Our maximum exposure at any time would be the receivable balance. Joint interest receivables on the Condensed Consolidated Balance Sheet are presented net of allowance for credit losses of $10.9 million and $10.0 million as of March 31, 2022 and December 31, 2021, respectively. |
Employee Retention Credit [Policy Text Block] | Employee Retention Credit – General and administrative expenses |
Prepaid Expenses and Other Assets [Policy Text Block] | Prepaid Expenses and Other Assets – March 31, 2022 December 31, 2021 Derivatives (1) $ 77,658 $ 21,086 Unamortized insurance/bond premiums 7,291 5,400 Prepaid deposits related to royalties 9,189 8,441 Prepayment to vendors 4,461 4,522 Prepayments to joint interest partners 2,653 2,808 Debt issue costs 1,763 1,065 Other 46 57 Prepaid expenses and other assets $ 103,061 $ 43,379 (1) Includes closed contracts which have not yet settled. |
Property, Plant and Equipment, Policy [Policy Text Block] | Oil and Natural Gas Properties and Other, Net – March 31, 2022 December 31, 2021 Oil and natural gas properties and equipment $ 8,727,521 $ 8,636,408 Furniture, fixtures and other 20,845 20,844 Total property and equipment 8,748,366 8,657,252 Less: Accumulated depreciation, depletion, amortization and impairment 8,016,674 7,992,000 Oil and natural gas properties and other, net $ 731,692 $ 665,252 |
Other Noncurrent Assets [Policy Text Block] | Other Assets (long-term) – March 31, 2022 December 31, 2021 Right-of-Use assets $ 10,604 $ 10,602 Investment in White Cap, LLC 2,740 2,533 Proportional consolidation of Monza (Note 6) (531) 2,511 Derivatives (1) 49,550 34,435 Other 1,029 1,091 Total other assets (long-term) $ 63,392 $ 51,172 |
Accrued Liabilities Policy [Policy Text Block] | Accrued Liabilities – March 31, 2022 December 31, 2021 Accrued interest $ 25,405 $ 10,154 Accrued salaries/payroll taxes/benefits 3,997 9,617 Litigation accruals 500 646 Lease liability 1,409 1,115 Derivatives (1) 177,298 81,456 Other 1,236 3,152 Total accrued liabilities $ 209,845 $ 106,140 |
Other Noncurrent Liabilities [Policy Text Block] | Other Liabilities (long-term) – March 31, 2022 December 31, 2021 Dispute related to royalty deductions $ 4,937 $ 5,177 Derivatives (Note 8) 63,318 37,989 Lease liability 10,936 11,227 Other 1,147 996 Total other liabilities (long-term) $ 80,338 $ 55,389 |
At The Market Equity Offering Policy, [Policy Text Block] | At-the-Market Equity Offering – under our "at-the-market" equity offering program (the "ATM Program"). |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | March 31, 2022 December 31, 2021 Derivatives (1) $ 77,658 $ 21,086 Unamortized insurance/bond premiums 7,291 5,400 Prepaid deposits related to royalties 9,189 8,441 Prepayment to vendors 4,461 4,522 Prepayments to joint interest partners 2,653 2,808 Debt issue costs 1,763 1,065 Other 46 57 Prepaid expenses and other assets $ 103,061 $ 43,379 (1) Includes closed contracts which have not yet settled. |
Property, Plant and Equipment [Table Text Block] | March 31, 2022 December 31, 2021 Oil and natural gas properties and equipment $ 8,727,521 $ 8,636,408 Furniture, fixtures and other 20,845 20,844 Total property and equipment 8,748,366 8,657,252 Less: Accumulated depreciation, depletion, amortization and impairment 8,016,674 7,992,000 Oil and natural gas properties and other, net $ 731,692 $ 665,252 |
Schedule of Other Assets, Noncurrent [Table Text Block] | March 31, 2022 December 31, 2021 Right-of-Use assets $ 10,604 $ 10,602 Investment in White Cap, LLC 2,740 2,533 Proportional consolidation of Monza (Note 6) (531) 2,511 Derivatives (1) 49,550 34,435 Other 1,029 1,091 Total other assets (long-term) $ 63,392 $ 51,172 |
Schedule of Accrued Liabilities [Table Text Block] | March 31, 2022 December 31, 2021 Accrued interest $ 25,405 $ 10,154 Accrued salaries/payroll taxes/benefits 3,997 9,617 Litigation accruals 500 646 Lease liability 1,409 1,115 Derivatives (1) 177,298 81,456 Other 1,236 3,152 Total accrued liabilities $ 209,845 $ 106,140 |
Other Noncurrent Liabilities [Table Text Block] | March 31, 2022 December 31, 2021 Dispute related to royalty deductions $ 4,937 $ 5,177 Derivatives (Note 8) 63,318 37,989 Lease liability 10,936 11,227 Other 1,147 996 Total other liabilities (long-term) $ 80,338 $ 55,389 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Schedule of Debt Instruments [Table Text Block] | March 31, December 31, 2022 2021 Term Loan: Principal $ 178,229 $ 190,859 Unamortized debt issuance costs (6,108) (7,545) Total Term Loan 172,121 183,314 Credit Agreement borrowings: — — Senior Second Lien Notes: Principal 552,460 552,460 Unamortized debt issuance costs (4,264) (4,876) Total Senior Second Lien Notes 548,196 547,584 Less current portion (39,881) (42,960) Total long-term debt, net $ 680,436 $ 687,938 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Schedule of Derivative Assets at Fair Value [Table Text Block] | March 31, 2022 December 31, 2021 Assets: Derivative instruments - open contracts, current $ 73,090 $ 19,215 Derivative instruments - open contracts, long-term 49,550 34,435 Liabilities: Derivative instruments - open contracts, current 157,348 73,190 Derivative instruments - open contracts, long-term 63,318 37,989 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | March 31, 2022 December 31, 2021 Net Value Fair Value Net Value Fair Value Liabilities: Term Loan $ 172,121 $ 173,210 $ 183,314 $ 190,579 Senior Second Lien Notes 548,196 551,162 547,584 527,715 Total 720,317 724,372 730,898 718,294 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Asset Acquisition [Abstract] | |
Schedule of purchase price allocation and liabilities assumed | February 1, 2022 Oil and natural gas properties and other, net $ 50,450 Restricted deposits for asset retirement obligations 6,196 Asset retirement obligations (26,493) Allocated purchase price $ 30,153 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Three Months Ended March 31, 2022 Asset retirement obligations, beginning of period $ 424,495 Liabilities settled (5,492) Accretion of discount 6,236 Liabilities incurred and assumed through acquisition 26,493 Revisions of estimated liabilities (1) 23,224 Asset retirement obligations, end of period 474,956 Less current portion (67,274) Long-term $ 407,682 (1) Revisions in 2022 were primarily due to moving additional projects to current term and increases in current pricing. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table reflects the contracted volumes and weighted average prices under the terms of the Company’s open derivative contracts as of March 31, 2022: Average Instrument Daily Total Weighted Weighted Weighted Period Type Volumes Volumes Strike Price Put Price Call Price Crude Oil - WTI (NYMEX) (Bbls) (1) (Bbls) (1) ($/Bbls) (1) ($/Bbls) (1) ($/Bbls) (1) Apr 2022 - Nov 2022 swaps 2,410 588,027 $ 52.83 $ — $ — Apr 2022 - Nov 2022 collars 2,403 586,377 $ — $ 43.15 $ 60.47 Natural Gas - Henry Hub (NYMEX) (MMbtu) (2) (MMbtu) (2) ($/MMbtu) (2) ($/MMbtu) (2) ($/MMbtu) (2) Apr 2022 - Dec 2022 calls 111,519 30,667,734 $ — $ — $ 3.78 Jan 2023 - Dec 2023 calls 70,000 25,550,000 $ — $ — $ 3.50 Jan 2024 - Dec 2024 calls 65,000 23,790,000 $ — $ — $ 3.50 Jan 2025 - Mar 2025 calls 62,000 5,580,000 $ — $ — $ 3.50 Apr 2022 - Dec 2022 collars 42,218 11,610,000 $ — $ 1.85 $ 3.02 Apr 2022 - Nov 2022 swaps 16,224 3,958,540 $ 2.52 $ — $ — Apr 2022 - Dec 2022 (3) swaps 78,545 21,600,000 $ 2.55 $ — $ — Jan 2023 - Dec 2023 (3) swaps 72,329 26,400,000 $ 2.48 $ — $ — Jan 2024 - Dec 2024 (3) swaps 65,574 24,000,000 $ 2.46 $ — $ — Jan 2025 - Mar 2025 (3) swaps 63,333 5,700,000 $ 2.72 $ — $ — Apr 2025 - Dec 2025 (3) puts 62,182 17,100,000 $ — $ 2.27 $ — Jan 2026 - Dec 2026 (3) puts 55,890 20,400,000 $ — $ 2.35 $ — Jan 2027 - Dec 2027 (3) puts 52,603 19,200,000 $ — $ 2.37 $ — Jan 2028 - Apr 2028 (3) puts 49,587 6,000,000 $ — $ 2.50 $ — (1) Bbls – Barrels (2) MMbtu – Million British Thermal Units (3) These contracts were entered into by the Company’s wholly owned subsidiary, A-I LLC, in conjunction with the Mobile Bay Transaction (see Note 5 – Mobile Bay Transaction). |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | March 31, 2022 December 31, 2021 Prepaid expenses and other current assets $ 77,658 $ 21,086 Other assets (long-term) 49,550 34,435 Accrued liabilities 177,298 81,456 Other liabilities (long-term) 63,318 37,989 Three Months Ended March 31, 2022 2021 Realized loss $ 43,694 $ 8,244 Unrealized loss 36,303 16,334 Derivative loss $ 79,997 $ 24,578 |
Schedule of Cash Receipts and Payments on Commodity Derivative Contract Settlements [Table Text Block] | Three Months Ended March 31, 2022 2021 Derivative loss $ 79,997 $ 24,578 Derivative cash payments, net (30,515) (4,604) |
SHARE-BASED AWARDS AND CASH B_2
SHARE-BASED AWARDS AND CASH BASED AWARDS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | Three Months Ended March 31, 2022 2021 Restricted stock units $ 251 $ 338 Performance share units 205 — Restricted Shares 64 116 Total $ 520 $ 454 |
Schedule of Incentive Compensation Expense [Table Text Block] | Three Months Ended March 31, 2022 2021 Share-based compensation included in: General and administrative expenses $ 520 $ 454 Cash-based incentive compensation included in: Lease operating expense (1) 255 839 General and administrative expenses (1) 1,957 2,682 Total charged to operating (loss) income $ 2,732 $ 3,975 (1) Includes adjustments of accruals to actual payments. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2022 2021 Net loss $ (2,457) $ (746) Less portion allocated to nonvested shares — — Net loss allocated to common shares $ (2,457) $ (746) Weighted average common shares outstanding - basic 142,942 142,151 Dilutive effect of securities — — Weighted average common shares outstanding - diluted 142,942 142,151 Earnings per common share: Basic $ (0.02) $ (0.01) Diluted (0.02) (0.01) Shares excluded due to being anti-dilutive (weighted-average) 717 919 |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | Mar. 17, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Oil and Gas Joint Interest Billing Receivables, Allowance for Credit Loss, Current | $ 10,900,000 | $ 10,000,000 | ||
At The Market Equity Offering [Member] | ||||
Sale of Stock, Maximum Percentage of Placement Fee | 3.00% | |||
Issuance and sale of common stock | $ 100,000,000 | |||
General and Administrative Expense [Member] | ||||
Employee Retention Credit | $ 0 | $ 2,100,000 | ||
W&T Energy VI, LLC, Aquasition LLC, and Aquasition II, LLC [Member] | ||||
Owned Subsidiaries | 100.00% |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Amounts Recorded in Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Amounts Recorded in Prepaid Expenses and Other Assets (Details) | |||
Derivatives (Note 8) | [1] | $ 77,658 | $ 21,086 |
Unamortized insurance/bond premiums | 7,291 | 5,400 | |
Prepaid deposits related to royalties | 9,189 | 8,441 | |
Prepayment to vendors | 4,461 | 4,522 | |
Prepayments to joint interest partners | 2,653 | 2,808 | |
Debt issue costs | 1,763 | 1,065 | |
Other | 46 | 57 | |
Prepaid expenses and other assets | $ 103,061 | $ 43,379 | |
[1] | Includes closed contracts which have not yet settled. |
BASIS OF PRESENTATION AND SIG_6
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Oil and Natural Gas Properties and Other, Net at Cost (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Oil and Natural Gas Properties and Other, Net at Cost (Details) | ||
Oil and natural gas properties and equipment, at cost | $ 8,727,521 | $ 8,636,408 |
Furniture, fixtures and other | 20,845 | 20,844 |
Total property and equipment | 8,748,366 | 8,657,252 |
Less: Accumulated depreciation, depletion, amortization and impairment | 8,016,674 | 7,992,000 |
Oil and natural gas properties and other, net | $ 731,692 | $ 665,252 |
BASIS OF PRESENTATION AND SIG_7
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Assets (Long-term) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Assets (Long-term) (Details) | |||
Right-of-Use assets | $ 10,604 | $ 10,602 | |
Investment in White Cap, LLC | 2,740 | 2,533 | |
Proportional consolidation of Monza (Note 6) | (531) | 2,511 | |
Derivatives (Note 8) | [1] | 49,550 | 34,435 |
Other | 1,029 | 1,091 | |
Total other assets (long-term) | $ 63,392 | $ 51,172 | |
[1] | Includes open contracts and prepaid premiums paid for purchased put and call options. |
BASIS OF PRESENTATION AND SIG_8
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Accrued interest | $ 25,405 | $ 10,154 | |
Accrued salaries/payroll taxes/benefits | 3,997 | 9,617 | |
Litigation accruals | 500 | 646 | |
Lease liability | 1,409 | 1,115 | |
Derivatives (Note 8) | [1] | 177,298 | 81,456 |
Other | 1,236 | 3,152 | |
Total accrued liabilities | $ 209,845 | $ 106,140 | |
[1] | Includes closed contracts which have not yet settled. |
BASIS OF PRESENTATION AND SIG_9
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Liabilities (Long-term) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Dispute related to royalty deductions | $ 4,937 | $ 5,177 |
Derivatives (Note 8) | 63,318 | 37,989 |
Lease liability | 10,936 | 11,227 |
Other | 1,147 | 996 |
Total other liabilities (long-term) | $ 80,338 | $ 55,389 |
DEBT - Components of Long-term
DEBT - Components of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Total | $ 720,317 | $ 730,898 |
Less current portion | (39,881) | (42,960) |
Total long-term debt, net | 680,436 | 687,938 |
Term Loan [Member] | ||
Principal | 178,229 | 190,859 |
Unamortized debt issuance costs | (6,108) | (7,545) |
Total | 172,121 | 183,314 |
Senior Second Lien Notes Due November 2023 [Member] | ||
Principal | 552,460 | 552,460 |
Unamortized debt issuance costs | (4,264) | (4,876) |
Total | $ 548,196 | $ 547,584 |
DEBT (Details Textual)
DEBT (Details Textual) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Nov. 02, 2021USD ($) | May 19, 2021USD ($) | Oct. 18, 2018USD ($) | |
Current portion of long-term debt | $ 39,881 | $ 42,960 | ||||
Term Loan [Member] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | |||||
Term Loan [Member] | Special Purpose Vehicles, A-I LLC And A-II LLC [Member] | ||||||
Current portion of long-term debt | 39,900 | 43,000 | ||||
Debt Instrument, Face Amount | $ 215,000 | |||||
Credit Agreement [Member] | ||||||
Borrowings outstanding | 0 | |||||
Repayments of Long-term Debt, Total | 48,000 | |||||
Letters of Credit Outstanding, Amount | 4,400 | 4,400 | ||||
Senior Second Lien Notes Due November 2023 [Member] | ||||||
Debt Instrument, Face Amount | 552,500 | $ 552,500 | $ 625,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 9.75% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 10.30% | |||||
Extinguishment of Debt, Amount | $ 72,500 | |||||
Repayments of Long-term Debt, Total | 23,900 | |||||
Gain (Loss) on Extinguishment of Debt, Total | 47,500 | |||||
Write off of Deferred Debt Issuance Cost | $ 1,100 | |||||
Short Term First Priority Lien Secured Revolving Facility [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | |||||
Calculus Lending Facility [Member] | ||||||
Letters of Credit Outstanding, Amount | 4,400 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | $ 50,000 | ||||
Commitment fee percentage for unused Portion | 3.00% | |||||
Number of trailing quarters | item | 4 | |||||
Total proved PV -10 to debt ratio | 2 | |||||
Percentage of funding or utilization of the credit facility | 100.00% | |||||
Credit Agreement Leverage Ratio | 2.50 | |||||
Credit Agreement Minimum Current Ratio | 1.00% | |||||
Line Of Credit Facility, Arrangement and Upfront Fees Paid | $ 1,000 | |||||
Calculus Lending Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 6.00% |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Open Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative instruments - open contracts, current | [1] | $ 77,658 | $ 21,086 |
Derivative instruments - open contracts, long-term | [2] | 49,550 | 34,435 |
Derivative instruments - open contracts, current | [1] | 177,298 | 81,456 |
Derivative instruments - open contracts, long-term | 63,318 | 37,989 | |
Open Contracts [Member] | |||
Derivative instruments - open contracts, current | 73,090 | 19,215 | |
Derivative instruments - open contracts, long-term | 49,550 | 34,435 | |
Derivative instruments - open contracts, current | 157,348 | 73,190 | |
Derivative instruments - open contracts, long-term | $ 63,318 | $ 37,989 | |
[1] | Includes closed contracts which have not yet settled. | ||
[2] | Includes open contracts and prepaid premiums paid for purchased put and call options. |
FAIR VALUE MEASUREMENTS - Net v
FAIR VALUE MEASUREMENTS - Net value and Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Long-term debt, net value | $ 720,317 | $ 730,898 |
Long-term debt, fair value | 724,372 | 718,294 |
Term Loan [Member] | ||
Long-term debt, net value | 172,121 | 183,314 |
Long-term debt, fair value | 173,210 | 190,579 |
Senior Second Lien Notes Due November 2023 [Member] | ||
Long-term debt, net value | 548,196 | 547,584 |
Long-term debt, fair value | $ 551,162 | $ 527,715 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | Feb. 01, 2022 | Jan. 05, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Asset Acquisition [Line Items] | ||||
Oil and natural gas properties and other, net | $ 731,692 | $ 665,252 | ||
Restricted deposits for asset retirement obligations | 21,958 | 16,019 | ||
Asset retirement obligations | $ 67,274 | $ 56,419 | ||
Interests in and Operatorship of Certain Oil and Natural Gas Producing Properties [Member] | ||||
Asset Acquisition [Line Items] | ||||
Total consideration | $ 47,000 | |||
Cash consideration | $ 30,200 | |||
Oil and natural gas properties and other, net | 50,450 | |||
Restricted deposits for asset retirement obligations | 6,196 | |||
Asset retirement obligations | 26,493 | |||
Allocated purchase price | $ 30,153 |
MOBILE BAY TRANSACTION (Details
MOBILE BAY TRANSACTION (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | May 19, 2021 | |
Cash and cash equivalents | $ 215,475 | $ 245,799 | ||
Oil and natural gas properties and other, net | 731,692 | 665,252 | ||
Current portion of long-term debt | 39,881 | 42,960 | ||
Asset retirement obligations | 67,274 | 56,419 | ||
Long-term | 407,682 | 368,076 | ||
Total revenues | 191,004 | $ 125,647 | ||
Derivative loss | 79,997 | 24,578 | ||
Interest expense, net | 19,883 | 15,034 | ||
Special Purpose Vehicles, A-I LLC And A-II LLC [Member] | Term Loan [Member] | ||||
Principal | $ 215,000 | |||
Cash and cash equivalents | 33,400 | 38,900 | ||
Oil and natural gas properties and other, net | 275,500 | 272,700 | ||
Current portion of long-term debt | 39,900 | 43,000 | ||
Asset retirement obligations | 56,000 | 54,500 | ||
Long-term | 132,200 | $ 140,400 | ||
Total revenues | 47,500 | $ 0 | ||
Operating costs and expenses | 19,600 | |||
Derivative loss | 96,200 | |||
Interest expense, net | $ 4,800 |
JOINT VENTURE DRILLING PROGRAM
JOINT VENTURE DRILLING PROGRAM (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)item | Mar. 31, 2022USD ($)item | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Property, Plant and Equipment, Net, Ending Balance | $ 731,692 | $ 665,252 | ||
Other Assets, Noncurrent, Total | 63,392 | 51,172 | ||
Asset Retirement Obligation, Ending Balance | 474,956 | 424,495 | ||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 191,004 | $ 125,647 | ||
JV Drilling Program [Member] | ||||
Number of wells completed | item | 10 | |||
Number of completed wells in operation | item | 8 | |||
Monza Energy, LLC [Member] | ||||
Property, Plant and Equipment, Net, Ending Balance | $ 2,100 | 3,500 | ||
Other Assets, Noncurrent, Total | 500 | 2,500 | ||
Increase Decrease In Working Capital | 11,000 | 4,600 | ||
Cash Call Balance | 6,500 | 14,800 | ||
Asset Retirement Obligation, Ending Balance | 300 | $ 300 | ||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 6,500 | 2,500 | ||
Operating Costs and Expenses, Total | 3,300 | $ 3,400 | ||
Monza Energy, LLC [Member] | JV Drilling Program [Member] | ||||
Number of initial members | item | 2 | |||
Amount committed by investors | $ 361,400 | |||
Joint Venture Working Interest Percentage Contributed to Related Party | 88.94% | |||
Joint Venture Working Interest Percent | 11.06 | |||
Oil And Gas Revenue Percent | 30 | |||
Well Cost Percent | 20 | |||
Capital Contribution Payments From Related Party | 302,400 | |||
Capital Contributions From Related Party During Period | 95,800 | |||
Capital Contribution Payments To Related Party Net | $ 47,800 | |||
Monza Energy, LLC [Member] | JV Drilling Program [Member] | Mr. Tracy W. Krohn [Member] | ||||
Minority Interest Ownership Percentage By Joint Venture | 4.5 | |||
Capital Commitment To Joint Venture | $ 14,500 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Changes to Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Note 7 - Asset Retirement Obligations - Changes to Asset Retirement Obligation (Details) | |||
Asset retirement obligations, beginning of period | $ 424,495 | ||
Liabilities settled | (5,492) | ||
Accretion of discount | 6,236 | $ 5,868 | |
Liabilities incurred and assumed through acquisition | 26,493 | ||
Revisions of estimated liabilities | 23,224 | ||
Asset retirement obligations, end of period | 474,956 | ||
Less current portion | (67,274) | $ (56,419) | |
Long-term | $ 407,682 | $ 368,076 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Open Commodity Derivative Contracts (Details) | 3 Months Ended |
Mar. 31, 2022MMBTUbbl$ / bbl$ / MMBTU | |
NYMEX Crude Oil Swap | Apr 2022 - Nov 2022 | |
Average daily volume | bbl | 2,410 |
Total Volumes | bbl | 588,027 |
Weighted Price (in dollars per share) | $ / bbl | 52.83 |
NYMEX Crude Oil Collar | Apr 2022 - Nov 2022 | |
Average daily volume | bbl | 2,403 |
Total Volumes | bbl | 586,377 |
NYMEX Crude Oil Collar | Apr 2022 - Nov 2022 | Put Option | |
Weighted Price (in dollars per share) | $ / bbl | 43.15 |
NYMEX Crude Oil Collar | Apr 2022 - Nov 2022 | Call Option | |
Weighted Price (in dollars per share) | $ / bbl | 60.47 |
NYMEX Natural Gas Henry Hub Call | Apr 2022 - Dec 2022 | |
Average daily volume | 111,519 |
Total Volumes | 30,667,734 |
NYMEX Natural Gas Henry Hub Call | Apr 2022 - Dec 2022 | Call Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 3.78 |
NYMEX Natural Gas Henry Hub Call | Jan 2023 - Dec 2023 | |
Average daily volume | 70,000 |
Total Volumes | 25,550,000 |
NYMEX Natural Gas Henry Hub Call | Jan 2023 - Dec 2023 | Call Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 3.50 |
NYMEX Natural Gas Henry Hub Call | Jan 2024 - Dec 2024 | |
Average daily volume | 65,000 |
Total Volumes | 23,790,000 |
NYMEX Natural Gas Henry Hub Call | Jan 2024 - Dec 2024 | Call Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 3.50 |
NYMEX Natural Gas Henry Hub Call | Jan 2025 - Dec 2025 | |
Average daily volume | 62,000 |
Total Volumes | 5,580,000 |
NYMEX Natural Gas Henry Hub Call | Jan 2025 - Dec 2025 | Call Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 3.50 |
NYMEX Natural Gas Henry Hub Collar | Apr 2022 - Dec 2022 | |
Average daily volume | 42,218 |
Total Volumes | 11,610,000 |
NYMEX Natural Gas Henry Hub Collar | Apr 2022 - Dec 2022 | Put Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 1.85 |
NYMEX Natural Gas Henry Hub Collar | Apr 2022 - Dec 2022 | Call Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 3.02 |
NYMEX Natural Gas Henry Hub Swap | Apr 2022 - Nov 2022 | |
Average daily volume | 16,224 |
Total Volumes | 3,958,540 |
Weighted Price (in dollars per share) | $ / MMBTU | 2.52 |
NYMEX Natural Gas Henry Hub Swap | Apr 2022 - Dec 2022 | |
Average daily volume | 78,545 |
Total Volumes | 21,600,000 |
Weighted Price (in dollars per share) | $ / MMBTU | 2.55 |
NYMEX Natural Gas Henry Hub Swap | Jan 2023 - Dec 2023 | |
Average daily volume | 72,329 |
Total Volumes | 26,400,000 |
Weighted Price (in dollars per share) | $ / MMBTU | 2.48 |
NYMEX Natural Gas Henry Hub Swap | Jan 2024 - Dec 2024 | |
Average daily volume | 65,574 |
Total Volumes | 24,000,000 |
Weighted Price (in dollars per share) | $ / MMBTU | 2.46 |
NYMEX Natural Gas Henry Hub Swap | Jan 2025 - Mar 2025 | |
Average daily volume | 63,333 |
Total Volumes | 5,700,000 |
Weighted Price (in dollars per share) | $ / MMBTU | 2.72 |
NYMEX Natural Gas Henry Hub Put | Apr 2025 - Dec 2025 | |
Average daily volume | 62,182 |
Total Volumes | 17,100,000 |
NYMEX Natural Gas Henry Hub Put | Apr 2025 - Dec 2025 | Put Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 2.27 |
NYMEX Natural Gas Henry Hub Put | Jan 2026 - Dec 2026 | |
Average daily volume | 55,890 |
Total Volumes | 20,400,000 |
NYMEX Natural Gas Henry Hub Put | Jan 2026 - Dec 2026 | Put Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 2.35 |
NYMEX Natural Gas Henry Hub Put | Jan 2027 - Dec 2027 | |
Average daily volume | 52,603 |
Total Volumes | 19,200,000 |
NYMEX Natural Gas Henry Hub Put | Jan 2027 - Dec 2027 | Put Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 2.37 |
NYMEX Natural Gas Henry Hub Put | Jan 2028 - Apr 2028 | |
Average daily volume | 49,587 |
Total Volumes | 6,000,000 |
NYMEX Natural Gas Henry Hub Put | Jan 2028 - Apr 2028 | Put Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 2.50 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Open and Closed Contracts Which Had Not Yet Settled (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative assets, current | [1] | $ 77,658 | $ 21,086 |
Derivative assets, non-current | [2] | 49,550 | 34,435 |
Derivative liabilities, current | [1] | 177,298 | 81,456 |
Derivative liabilities, non-current | 63,318 | 37,989 | |
Open Contracts and Closed Contracts Which Had Not Yet Been Settled [Member] | Prepaid Expenses and Other Current Assets [Member] | |||
Derivative assets, current | 77,658 | 21,086 | |
Open Contracts and Closed Contracts Which Had Not Yet Been Settled [Member] | Other assets (long-term) [Member] | |||
Derivative assets, non-current | 49,550 | 34,435 | |
Open Contracts and Closed Contracts Which Had Not Yet Been Settled [Member] | Accrued Liabilities | |||
Derivative liabilities, current | 177,298 | 81,456 | |
Open Contracts and Closed Contracts Which Had Not Yet Been Settled [Member] | Other Liabilities (long-term) | |||
Derivative liabilities, non-current | $ 63,318 | $ 37,989 | |
[1] | Includes closed contracts which have not yet settled. | ||
[2] | Includes open contracts and prepaid premiums paid for purchased put and call options. |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Change in fair value and settlement contract (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Financial Instruments | ||
Realized loss | $ 43,694 | $ 8,244 |
Unrealized loss | 36,303 | 16,334 |
Derivative loss | $ 79,997 | $ 24,578 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Cash Receipts on Commodity Derivative Contract Settlements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative Financial Instruments | ||
Derivative loss | $ 79,997 | $ 24,578 |
Derivative cash payments, net | $ (30,515) | $ (4,604) |
SHARE-BASED AWARDS AND CASH B_3
SHARE-BASED AWARDS AND CASH BASED AWARDS (Details Textual) | 3 Months Ended |
Mar. 31, 2022shares | |
Restricted Stock Units [Member] | |
Granted, units (in shares) | 0 |
Performance Share Units [Member] | |
Granted, units (in shares) | 0 |
Restricted Stock [Member] | |
Granted, units (in shares) | 0 |
SHARE-BASED AWARDS AND CASH B_4
SHARE-BASED AWARDS AND CASH BASED AWARDS - Summary of Incentive Compensation Expense Under Share-based Payment Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based compensation expense | $ 520 | $ 454 |
Restricted Stock Units [Member] | ||
Share-based compensation expense | 251 | 338 |
Performance Share Units [Member] | ||
Share-based compensation expense | 205 | |
Restricted Stock [Member] | ||
Share-based compensation expense | $ 64 | $ 116 |
SHARE-BASED AWARDS AND CASH B_5
SHARE-BASED AWARDS AND CASH BASED AWARDS - Summary of Compensation Expense Related to Share-based Awards and Cash-Based Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based compensation expense | $ 520 | $ 454 |
Total charged to operating (loss) income | 2,732 | 3,975 |
General and Administrative Expense [Member] | ||
Share-based compensation expense | 520 | 454 |
Cash-based incentive compensation | 1,957 | 2,682 |
Lease Operating Expense [Member] | ||
Cash-based incentive compensation | $ 255 | $ 839 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Note To Financial Statement Details Textual | |||
Income tax benefit | $ (689) | $ (203) | |
Effective Income Tax Rate Reconciliation, Percent, Total | 21.90% | 21.40% | |
Deferred Tax Assets, Valuation Allowance, Total | $ 25,800 | $ 24,400 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Basic and Diluted (Loss) Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Note 11 - EARNINGS PER SHARE - Schedule of Basic and Diluted (Loss) Earnings Per Common Share (Details) | ||
Net loss | $ (2,457) | $ (746) |
Less portion allocated to nonvested shares | 0 | |
Net loss allocated to common shares | $ (2,457) | $ (746) |
Weighted average common shares outstanding - basic (in shares) | 142,942 | 142,151 |
Dilutive effect of securities (in shares) | 0 | |
Weighted average common shares outstanding - diluted (in shares) | 142,942 | 142,151 |
Earnings per common share - Basic (in dollars per share) | $ (0.02) | $ (0.01) |
Earnings per common share - Diluted (in dollars per share) | $ (0.02) | $ (0.01) |
Shares excluded due to being anti-dilutive (weighted-average) (in shares) | 717 | 919 |
CONTINGENCIES (Details Textual)
CONTINGENCIES (Details Textual) | 1 Months Ended | ||||
Jan. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Jul. 25, 2017USD ($) | Dec. 31, 2010USD ($) | |
Loss Contingency Accrual, Ending Balance | $ 4,500,000 | ||||
Additional Royalty Due To Disallowed Deductions | $ 4,700,000 | ||||
Bonds Posted To Appeal IBLA Decision | $ 7,200,000 | ||||
Collateral For Bonds Posted Related To Appeal With IBLA | $ 8,200,000 | $ 6,900,000 | |||
BSEE [Member] | |||||
Loss Contingency Number Of Claims Filed | 9 | ||||
Proposed Civil Penalties | $ 7,700,000 | ||||
Settlement Agreement Annual Instalments Value | $ 720,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Interests in and Operatorship of Certain Oil and Natural Gas Producing Properties [Member] - USD ($) $ in Millions | Apr. 01, 2022 | Feb. 01, 2022 |
Subsequent Events | ||
Cash consideration | $ 30.2 | |
Subsequent Event | ||
Subsequent Events | ||
Cash consideration | $ 17.5 |