Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-32414 | |
Entity Registrant Name | W&T OFFSHORE, INC. | |
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 | |
Title of 12(b) Security | Common Stock, par value $0.00001 | |
Trading Symbol | WTI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,480,637 | |
Entity Central Index Key | 0001288403 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 171,627 | $ 461,357 |
Restricted cash | 4,417 | 4,417 |
Receivables: | ||
Oil and natural gas sales | 41,342 | 66,146 |
Joint interest, net | 13,875 | 14,000 |
Income taxes | 1,941 | |
Total receivables | 57,158 | 80,146 |
Prepaid expenses and other assets (Note 1) | 21,365 | 24,343 |
Total current assets | 254,567 | 570,263 |
Oil and natural gas properties and other, net (Note 1) | 737,740 | 735,215 |
Restricted deposits for asset retirement obligations | 22,092 | 21,483 |
Deferred income taxes | 45,700 | 57,280 |
Other assets (Note 1) | 42,118 | 47,549 |
Total assets | 1,102,217 | 1,431,790 |
Current liabilities: | ||
Accounts payable | 67,293 | 65,158 |
Undistributed oil and natural gas proceeds | 31,178 | 41,934 |
Advances from joint interest partners | 3,110 | 3,181 |
Asset retirement obligations (Note 7) | 37,763 | 25,359 |
Accrued liabilities (Note 1) | 39,323 | 74,041 |
Current portion of long-term debt, net | 30,550 | 582,249 |
Income tax payable | 10 | 412 |
Total current liabilities | 209,227 | 792,334 |
Long-term debt (Note 2) | ||
Principal | 382,697 | 114,158 |
Unamortized debt issuance costs | (9,676) | (2,970) |
Long-term debt, net (Note 2) | 373,021 | 111,188 |
Asset retirement obligations, less current portion (Note 7) | 443,069 | 441,071 |
Other liabilities (Note 1) | 35,041 | 59,134 |
Deferred income taxes | 72 | 72 |
Commitments and contingencies (Note 11) | 16,996 | 20,357 |
Shareholders' equity: | ||
Preferred stock, $0.00001 par value; 20,000 shares authorized; none issued at June 30, 2023 and December 31, 2022 | ||
Common stock, $0.00001 par value; 200,000 shares authorized; 149,350 issued and 146,481 outstanding at June 30, 2023; 149,002 issued and 146,133 outstanding at December 31, 2022 | 1 | 1 |
Additional paid-in capital | 579,849 | 576,588 |
Retained deficit | (530,892) | (544,788) |
Treasury stock, at cost; 2,869 shares at June 30, 2023 and December 31, 2022 | (24,167) | (24,167) |
Total shareholders' equity | 24,791 | 7,634 |
Total liabilities and shareholders' equity | $ 1,102,217 | $ 1,431,790 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares shares in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
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) | 149,350 | 149,002 |
Common stock, shares outstanding (in shares) | 146,481 | 146,133 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Total revenues | $ 126,181 | $ 273,808 | $ 257,906 | $ 464,812 |
Operating expenses: | ||||
Lease operating expenses | 66,021 | 52,976 | 131,207 | 96,387 |
Gathering, transportation and production taxes | 6,802 | 9,181 | 12,938 | 14,448 |
Depreciation, depletion, and amortization | 28,177 | 27,679 | 50,801 | 52,354 |
Asset retirement obligations accretion | 7,717 | 6,681 | 15,227 | 12,917 |
General and administrative expenses | 17,393 | 14,967 | 37,312 | 28,743 |
Total operating expenses | 126,110 | 111,484 | 247,485 | 204,849 |
Operating income | 71 | 162,324 | 10,421 | 259,963 |
Interest expense, net | 10,323 | 18,183 | 25,036 | 38,066 |
Derivative (gain) loss, net | (829) | (8,854) | (40,069) | 71,143 |
Other (income) expense, net | (311) | (1,534) | (78) | (629) |
Income (loss) before income taxes | (9,112) | 154,529 | 25,532 | 151,383 |
Income tax expense | 2,997 | 31,093 | 11,636 | 30,404 |
Net (loss) income | $ (12,109) | $ 123,436 | $ 13,896 | $ 120,979 |
Net income per common share: | ||||
Basic | $ (0.08) | $ 0.86 | $ 0.09 | $ 0.85 |
Diluted | $ (0.08) | $ 0.85 | $ 0.09 | $ 0.84 |
Weighted average common shares outstanding: | ||||
Basic | 146,452 | 143,020 | 146,435 | 142,981 |
Diluted | 146,452 | 144,525 | 149,045 | 144,094 |
Oil and Condensate [Member] | ||||
Revenues: | ||||
Total revenues | $ 89,982 | $ 159,264 | $ 186,982 | $ 281,966 |
Natural Gas Liquids [Member] | ||||
Revenues: | ||||
Total revenues | 10,385 | 16,735 | 18,180 | 30,555 |
Natural Gas, Production [Member] | ||||
Revenues: | ||||
Total revenues | 23,438 | 92,413 | 48,242 | 143,779 |
Product and Service, Other [Member] | ||||
Revenues: | ||||
Total revenues | $ 2,376 | $ 5,396 | $ 4,502 | $ 8,512 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Common Stock Outstanding [Member] | Additional Paid-in Capital [Member] | Retained Deficit [Member] | Treasury Stock [Member] | Total |
Balances beginning (in shares) at Dec. 31, 2021 | 142,863 | ||||
Balances beginning (in shares) at Dec. 31, 2021 | 2,869 | ||||
Balances beginning at Dec. 31, 2021 | $ 1 | $ 552,923 | $ (775,937) | $ (24,167) | $ (247,180) |
Share-based compensation | 2,534 | 2,534 | |||
Stock issued (in shares) | 292 | ||||
RSUs surrendered for payroll taxes | (702) | (702) | |||
Net (loss) income | 120,979 | 120,979 | |||
Balances Ending (in shares) at Jun. 30, 2022 | 143,155 | ||||
Balances Ending (in shares) at Jun. 30, 2022 | 2,869 | ||||
Balances Ending at Jun. 30, 2022 | $ 1 | 554,755 | (654,958) | $ (24,167) | (124,369) |
Balances beginning (in shares) at Dec. 31, 2021 | 142,863 | ||||
Balances beginning (in shares) at Dec. 31, 2021 | 2,869 | ||||
Balances beginning at Dec. 31, 2021 | $ 1 | 552,923 | (775,937) | $ (24,167) | $ (247,180) |
Balances Ending (in shares) at Dec. 31, 2022 | 146,133 | ||||
Balances Ending (in shares) at Dec. 31, 2022 | 2,869 | 2,869 | |||
Balances Ending at Dec. 31, 2022 | $ 1 | 576,588 | (544,788) | $ (24,167) | $ 7,634 |
Balances beginning (in shares) at Mar. 31, 2022 | 143,012 | ||||
Balances beginning (in shares) at Mar. 31, 2022 | 2,869 | ||||
Balances beginning at Mar. 31, 2022 | $ 1 | 553,175 | (778,394) | $ (24,167) | (249,385) |
Share-based compensation | 2,014 | 2,014 | |||
Stock issued (in shares) | 143 | ||||
RSUs surrendered for payroll taxes | (434) | (434) | |||
Net (loss) income | 123,436 | 123,436 | |||
Balances Ending (in shares) at Jun. 30, 2022 | 143,155 | ||||
Balances Ending (in shares) at Jun. 30, 2022 | 2,869 | ||||
Balances Ending at Jun. 30, 2022 | $ 1 | 554,755 | (654,958) | $ (24,167) | $ (124,369) |
Balances beginning (in shares) at Dec. 31, 2022 | 146,133 | ||||
Balances beginning (in shares) at Dec. 31, 2022 | 2,869 | 2,869 | |||
Balances beginning at Dec. 31, 2022 | $ 1 | 576,588 | (544,788) | $ (24,167) | $ 7,634 |
Share-based compensation | 4,009 | 4,009 | |||
Stock issued (in shares) | 348 | ||||
RSUs surrendered for payroll taxes | (748) | (748) | |||
Net (loss) income | 13,896 | $ 13,896 | |||
Balances Ending (in shares) at Jun. 30, 2023 | 146,481 | ||||
Balances Ending (in shares) at Jun. 30, 2023 | 2,869 | 2,869 | |||
Balances Ending at Jun. 30, 2023 | $ 1 | 579,849 | (530,892) | $ (24,167) | $ 24,791 |
Balances beginning (in shares) at Mar. 31, 2023 | 146,461 | ||||
Balances beginning (in shares) at Mar. 31, 2023 | 2,869 | ||||
Balances beginning at Mar. 31, 2023 | $ 1 | 577,787 | (518,783) | $ (24,167) | 34,838 |
Share-based compensation | 2,087 | 2,087 | |||
Stock issued (in shares) | 20 | ||||
RSUs surrendered for payroll taxes | (25) | (25) | |||
Net (loss) income | (12,109) | $ (12,109) | |||
Balances Ending (in shares) at Jun. 30, 2023 | 146,481 | ||||
Balances Ending (in shares) at Jun. 30, 2023 | 2,869 | 2,869 | |||
Balances Ending at Jun. 30, 2023 | $ 1 | $ 579,849 | $ (530,892) | $ (24,167) | $ 24,791 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities: | ||
Net income | $ 13,896 | $ 120,979 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion, amortization and accretion | 66,028 | 65,271 |
Amortization and write off of debt issuance costs | 4,363 | 4,365 |
Share-based compensation | 4,009 | 2,534 |
Derivative (gain) loss | (40,069) | 71,143 |
Derivative cash (payments) receipts, net | (4,427) | 70,227 |
Derivative cash premium payments | (46,111) | |
Deferred income taxes | 11,580 | 27,031 |
Changes in operating assets and liabilities: | ||
Oil and natural gas receivables | 24,804 | (44,236) |
Joint interest receivables | 125 | (3,625) |
Prepaid expenses and other assets | 26,992 | (30,092) |
Income tax | (2,345) | 3,223 |
Asset retirement obligation settlements | (11,841) | (39,775) |
Cash advances from JV partners | (71) | (9,813) |
Accounts payable, accrued liabilities and other | (43,412) | 46,638 |
Net cash provided by operating activities | 49,632 | 237,759 |
Investing activities: | ||
Investment in oil and natural gas properties and equipment | (22,999) | (25,489) |
Changes in operating assets and liabilities associated with investing activities | (2,338) | (5,786) |
Acquisition of property interests | (47,625) | |
Purchase of corporate aircraft (Note 12) | (8,983) | |
Purchases of furniture, fixtures and other | (218) | |
Net cash used in investing activities | (34,538) | (78,900) |
Financing activities: | ||
Repayment of Note Payable | (183) | |
Issuance of 11.75% Senior Second Lien Notes | 275,000 | |
Repayments on 9.75% Second Senior Lien Notes | (552,460) | |
Repayments on Term Loan | (19,181) | (24,941) |
Debt issuance costs | (7,252) | (1,290) |
Other | (748) | (703) |
Net cash used in financing activities | (304,824) | (26,934) |
(Decrease) increase in cash and cash equivalents | (289,730) | 131,925 |
Cash and cash equivalents and restricted cash, beginning of period | 465,774 | 250,216 |
Cash and cash equivalents and restricted cash, end of period | $ 176,044 | $ 382,141 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) | Jun. 30, 2023 | Feb. 08, 2023 | Jan. 27, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Oct. 18, 2018 |
11.75% Senior Second Lien Notes | ||||||
Debt instrument, interest rate, stated percentage | 11.75% | 11.75% | 11.75% | 11.75% | 11.75% | |
9.75% Second Senior Lien Notes | ||||||
Debt instrument, interest rate, stated percentage | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — 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”). Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim periods and the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnote disclosures required by GAAP for complete financial statements for annual periods. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. 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 2022 Annual Report on Form 10-K (the “2022 Annual Report”). 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 – 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. The Company’s maximum exposure at any time would be the receivable balance. Joint interest receivables on the Condensed Consolidated Balance Sheets are presented net of allowance for credit losses of $11.3 million and $12.1 million as of June 30, 2023 and December 31, 2022, respectively. Employee Retention Credit – General and administrative expenses Prepaid Expenses and Other Assets – June 30, 2023 December 31, 2022 Derivatives (1) $ 1,778 $ 4,954 Unamortized insurance/bond premiums 8,303 6,046 Prepaid deposits related to royalties 6,822 9,139 Prepayments to vendors 1,628 1,767 Prepayments to joint interest partners 2,319 1,717 Debt issue costs 427 687 Other 88 33 Prepaid expenses and other assets $ 21,365 $ 24,343 (1) Includes closed contracts which have not yet settled. Oil and Natural Gas Properties and Other, Net – June 30, 2023 December 31, 2022 Oil and natural gas properties and equipment $ 8,847,421 $ 8,813,404 Furniture, fixtures and other 40,224 20,915 Total property and equipment 8,887,645 8,834,319 Less: Accumulated depreciation, depletion, amortization and impairment (8,149,905) (8,099,104) Oil and natural gas properties and other, net $ 737,740 $ 735,215 Other Assets (long-term) – June 30, 2023 December 31, 2022 Right-of-Use assets $ 10,728 $ 10,364 Investment in White Cap, LLC 2,721 2,453 Proportional consolidation of Monza (Note 6) 9,909 9,321 Derivatives (1) 17,184 23,236 Other 1,576 2,175 Total other assets (long-term) $ 42,118 $ 47,549 (1) Includes open contracts. Accrued Liabilities – June 30, 2023 December 31, 2022 Accrued interest $ 13,848 $ 8,967 Accrued salaries/payroll taxes/benefits 4,808 15,097 Litigation accruals 56 396 Lease liability 1,045 1,628 Derivatives (1) 18,518 46,595 Other 1,048 1,358 Total accrued liabilities $ 39,323 $ 74,041 (1) Includes closed contracts which have not yet settled. Other Liabilities (long-term) – June 30, 2023 December 31, 2022 Dispute related to royalty deductions $ 5,250 $ 4,937 Derivatives (Note 4) 17,417 43,061 Lease liability 11,709 10,527 Other 665 609 Total other liabilities (long-term) $ 35,041 $ 59,134 At-the-Market Equity Offering – under the Company’s “at-the-market” equity offering program (the “ATM Program”). |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Debt [Text Block] | NOTE 2 — The components comprising the Company’s debt are presented in the following table (in thousands): June 30, 2023 December 31, 2022 TVPX Loan: Principal $ 11,575 $ — Discount (1,651) Unamortized debt issuance costs (267) — Total TVPX Loan 9,657 — Term Loan: Principal 128,719 147,899 Unamortized debt issuance costs (3,727) (4,592) Total Term Loan 124,992 143,307 Credit Agreement borrowings: — — 11.75% Senior Second Lien Notes due 2026: Principal 275,000 — Unamortized debt issuance costs (6,078) — Total 11.75% Senior Second Lien Notes due 2026 268,922 — 9.75% Senior Second Lien Notes due 2023: Principal — 552,460 Unamortized debt issuance costs — (2,330) Total 9.75% Senior Second Lien Notes due 2023 — 550,130 Less current portion, net (30,550) (582,249) Total long-term debt, net $ 373,021 $ 111,188 Current Portion of Long-Term Debt, Net TVPX Loan a company affiliated with and controlled by Chairman, Chief Executive Officer (“CEO”) and President Note 12 – Related Party Transactions Term Loan (Subsidiary Credit Agreement) Note 4 – Derivative Financial Instruments Note 5 – Subsidiary Borrowers Credit Agreement The Company has entered into a Credit Agreement with Calculus Lending, LLC (“Calculus”), a company affiliated with and controlled by W&T’s Chairman, Chief Executive Officer and President, Tracy W. Krohn, as sole lender under the Credit Agreement (as amended from time to time, the “Credit Agreement”). The Credit Agreement currently has a maturity date of ● $100 million first priority lien secured revolving credit facility, with borrowings limited to a borrowing base of $50.0 million; ● Outstanding borrowings accrue interest at SOFR plus 6.0% per annum; ● The Company’s ratio of First Lien Debt (as such term is defined in the Credit Agreement) outstanding under the Credit Agreement on the last day of the most recent quarter to EBITDAX (as such term is defined in the Credit Agreement) for the trailing four quarters must not be greater than 2.50 to 1.00 on the last day of any fiscal quarter commencing with the fiscal quarter ended March 31, 2022; ● The Company’s ratio of Total Proved PV-10 to First Lien Debt (as such terms are defined in the Credit Agreement) as of the last day of any fiscal quarter commencing with the fiscal quarter ended March 31, 2022, must be equal to or greater than 2.00 to 1.00; ● The ratio of the Company and its restricted subsidiaries’ consolidated current assets to consolidated current liabilities (subject in each case to certain exceptions and adjustments as set forth in the Credit Agreement) at the last day of any fiscal quarter must be greater than or equal to 1.00 to 1.00; ● As of the last day of any fiscal quarter commencing with the fiscal quarter ended March 31, 2022, the Company and its restricted subsidiaries on a consolidated basis must pass a “Stress Test” to determine whether certain future net revenues from the Company’s and its restricted subsidiaries’ and certain joint ventures’ oil and gas properties included in the collateral are sufficient to satisfy the aggregate first lien indebtedness under the Credit Agreement assuming the Borrowing Base is 100% funded or fully utilized; and ● Certain related party transactions are required to meet certain arm’s length criteria; except in each case as specifically permitted or excluded from the covenant under the Credit Agreement. Availability under the Credit Agreement is subject to redetermination of the borrowing base that may be requested at the discretion of either the lender or the Company in accordance with the Credit Agreement. Note 5 – Subsidiary Borrowers As of June 30, 2023, there were no borrowings outstanding under the Credit Agreement and no borrowings had been incurred under the Credit Agreement during the six months ended June 30, 2023. As of June 30, 2023 and December 31, 2022, the Company had $4.4 million outstanding in letters of credit which have been cash collateralized. 11.75% Senior Second Lien Notes due 2026 On January 27, 2023, the Company issued and sold $275 million in aggregate principal amount of its 11.75% Senior Second Lien Notes at par with an interest rate of 11.75% per annum that matures on February 1, 2026 (the “11.75% Senior Second Lien Notes”), which are governed under the terms of an indenture (the “Indenture”). Interest on the 11.75% Senior Second Lien Notes is payable in arrears on February 1 and August 1, commencing August 1, 2023. The 11.75% Senior Second Lien Notes will be recorded at their carrying value consisting of principal and unamortized debt issuance costs. The 11.75% Senior Second Lien Notes are secured by second-priority liens on the same collateral that is secured under the Credit Agreement, which does not include the Mobile Bay Properties and the related Midstream Assets. The estimated annual effective interest rate on the 11.75% Senior Second Lien Notes is 12.6%, which includes amortization of deferred interest costs. Prior to August 1, 2024, the Company may redeem all or any portion of the 11.75% Senior Second Lien Notes at a redemption price equal to 100% of the principal amount of the notes outstanding plus accrued and unpaid interest, if any, to the redemption date, plus the “Applicable Premium” (as defined in the Indenture). In addition, prior to August 1, 2024, the Company may, at its option, on one or more occasions redeem up to 35% of the aggregate original principal amount of the 11.75% Senior Second Lien Notes in an amount not greater than the net cash proceeds from certain equity offerings at a redemption price of 111.750% of the principal amount of the outstanding plus accrued and unpaid interest, if any, to the redemption date. On and after August 1, 2024, the Company may redeem the 11.75% Senior Second Lien Notes, in whole or in part, at redemption prices (expressed as percentages of the principal amount thereof) equal to 105.875% for the 12-month period beginning August 1, 2024, and 100.000% on August 1, 2025 and thereafter, plus accrued and unpaid interest, if any, to the redemption date. The 11.75% Senior Second Lien Notes are guaranteed by the Guarantors. The 11.75% Senior Second Lien Notes contain covenants that limit or prohibit the Company’s ability and the ability of certain of its 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 important 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 11.75% Senior Second Lien Notes an investment grade rating and no default exists with respect to the 11.75% Senior Second Lien Notes. Redemption of 9.75% Senior Second Lien Notes due 2023 On October 18, 2018, the Company issued $625.0 million of 9.75% Senior Second Lien Notes due 2023 (the “9.75% Senior Second Lien Notes”), which were issued at par with an interest rate of 9.75% per annum and would have matured on November 1, 2023. On February 8, 2023, the Company redeemed all of the $552.5 million of aggregate principle outstanding of the 9.75% Senior Second Lien Notes at a redemption price of 100.0%, plus accrued and unpaid interest to the redemption date. The Company used the net proceeds of $270.8 million from the issuance of the 11.75% Senior Second Lien Notes and cash on hand of $296.1 million to fund the redemption. Covenants As of June 30, 2023 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
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 3 – FAIR VALUE MEASUREMENTS Derivative Financial Instruments Derivative financial instruments are reported in the Condensed Consolidated Balance Sheets using fair value. See Note 4 – Derivative Financial Instruments The following table presents the fair value of the Company’s derivative financial instruments (in thousands): June 30, 2023 December 31, 2022 Assets: Derivative instruments - current $ 1,778 $ 4,954 Derivative instruments - long-term 17,184 23,236 Liabilities: Derivative instruments - current 18,518 46,595 Derivative instruments - long-term 17,417 43,061 Debt Instruments The following table presents the net value and fair value of the Company’s debt (in thousands): June 30, 2023 December 31, 2022 Net Value Fair Value Net Value Fair Value Liabilities: TVPX Loan $ 9,657 $ 9,977 $ — $ — Term Loan 124,992 120,965 143,307 139,056 11.75% Senior Second Lien Notes due 2026 268,922 275,303 — — 9.75% Senior Second Lien Notes due 2023 — — 550,130 544,902 Total $ 403,571 $ 406,245 $ 693,437 $ 683,958 The fair value of the TVPX Loan and the Term Loan were measured using a discounted cash flows model and current market rates. The fair value of the 11.75% Senior Second Lien Notes and 9.75% Senior Second Lien Notes were measured using quoted prices, although the market is not a highly liquid market. The fair value of debt was classified as Level 2 within the valuation hierarchy. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 4 — 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 (gain) loss on the Condensed Consolidated Statements of Operations in each period presented. Net cash provided by operating activities The natural gas contracts are based off the Henry Hub prices, which is 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 June 30, 2023: Average Instrument Daily Total Weighted Weighted Weighted Period Type Volumes Volumes Strike Price Put Price Call Price Natural Gas - Henry Hub (NYMEX) (MMbtu) (1) (MMbtu) (1) ($/MMbtu) (1) ($/MMbtu) (1) ($/MMbtu) (1) July 2023 - Dec 2023 calls 35,288 12,880,000 $ — $ — $ 7.50 Jan 2024 - Dec 2024 calls 65,000 23,790,000 $ — $ — $ 6.13 Jan 2025 - Mar 2025 calls 62,000 5,580,000 $ — $ — $ 5.50 July 2023 - Dec 2023 (2) swaps 36,164 13,200,000 $ 2.43 $ — $ — Jan 2024 - Dec 2024 (2) swaps 65,574 24,000,000 $ 2.46 $ — $ — Jan 2025 - Mar 2025 (2) swaps 63,333 5,700,000 $ 2.72 $ — $ — Apr 2025 - Dec 2025 (2) puts 62,182 17,100,000 $ — $ 2.27 $ — Jan 2026 - Dec 2026 (2) puts 55,890 20,400,000 $ — $ 2.35 $ — Jan 2027 - Dec 2027 (2) puts 52,603 19,200,000 $ — $ 2.37 $ — Jan 2028 - Apr 2028 (2) puts 49,587 6,000,000 $ — $ 2.50 $ — (1) MMbtu – Million British Thermal Units (2) These contracts were entered into by the Company’s wholly owned subsidiary, A-I LLC, in conjunction with the Term Loan (see Note 5 – Subsidiary Borrowers). Financial Statement Presentation The following fair value of derivative financial instruments amounts were recorded in the Condensed Consolidated Balance Sheets (in thousands): June 30, 2023 December 31, 2022 Prepaid expenses and other current assets $ 1,778 $ 4,954 Other assets (long-term) 17,184 23,236 Accrued liabilities 18,518 46,595 Other liabilities (long-term) 17,417 43,061 Although the Company has master netting arrangements with its counterparties, t Changes in the fair value and settlements of contracts are recorded on the Condensed Consolidated Statements of Operations as Derivative (gain) loss, net Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Realized loss (gain) (1) $ 300 $ (79,667) $ 530 $ (35,973) Unrealized (gain) loss (1,129) 70,813 (40,599) 107,116 Derivative (gain) loss, net $ (829) $ (8,854) $ (40,069) $ 71,143 (1) The three and six months ended June 30, 2022 includes the effect of the $138.0 million realized gain related to the monetization of certain natural gas call contracts through restructuring of strike prices. Cash payments on commodity derivative contract settlements, net, are included within Net cash provided by operating activities Six Months Ended June 30, 2023 2022 Derivative (gain) loss, net $ (40,069) $ 71,143 Derivative cash (receipts) payments, net (1) (4,427) 70,227 Derivative cash premium payments, net — (46,111) (1) The six months ended June 30, 2022 includes $105.3 million of net cash receipts related to the monetization of certain natural gas call contracts through restructuring of strike prices. |
SUBSIDIARY BORROWERS
SUBSIDIARY BORROWERS | 6 Months Ended |
Jun. 30, 2023 | |
SUBSIDIARY BORROWERS | |
SUBSIDIARY BORROWERS | NOTE 5 — SUBSIDIARY BORROWERS On May 19, 2021, 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 4 – Derivative Financial Instruments The Subsidiary Borrowers are wholly-owned subsidiaries of the Company; however, the assets of the Subsidiary Borrowers are not available to satisfy the debt or contractual obligations of any other entities, including debt securities or other contractual obligations of the Company, and the Subsidiary Borrowers do not bear any liability for the indebtedness or other contractual obligations of any other entities, and vice versa. During the year ended December 31, 2022, the Subsidiary Borrowers paid cash distributions to W&T of $30.2 million. During the six months ended June 30, 2023, no such distributions were paid. Consolidation and Carrying Amounts The following table presents the amounts recorded by W&T on the Condensed Consolidated Balance Sheets related to the consolidation of the Subsidiary Borrowers and the subsidiary that owns the equity of the Subsidiary Borrowers (in thousands): June 30, 2023 December 31, 2022 Assets: Cash and cash equivalents $ 5,899 $ 21,764 Receivables: Oil and natural gas sales 18,411 37,344 Joint interest, net (27,400) (5,760) Prepaid expenses and other assets 125 417 Oil and natural gas properties and other, net 289,959 280,649 Other assets 11,486 8,473 Liabilities: Accounts payable 8,996 27,387 Undistributed oil and natural gas proceeds 3,625 7,930 Accrued liabilities 19,036 45,102 Current portion of long-term debt 30,074 32,119 Long-term debt, net 94,918 111,188 Asset retirement obligations 66,136 61,138 Other liabilities 22,020 47,398 The following table presents the amounts recorded by W&T in the Condensed (i Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total revenues $ 25,437 $ 76,846 $ 46,560 $ 124,361 Total operating expenses 30,443 18,385 50,490 33,185 Interest expense, net 3,229 3,658 5,411 8,436 Derivative (gain) loss, net (6,012) 35,888 (52,389) 132,046 |
JOINT VENTURE DRILLING PROGRAM
JOINT VENTURE DRILLING PROGRAM | 6 Months Ended |
Jun. 30, 2023 | |
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 the Company 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 W&T initially receives an aggregate of 30.0% of the revenues less expenses, through the direct ownership from the retained working interest in the Monza projects and the Company’s indirect interest through its 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 of directors. The members of Monza are third-party investors, W&T and an entity owned and controlled by Tracy W. Krohn, the Company’s Chairman, Chief Executive Officer and President. The entity affiliated with the Company’s CEO 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, and 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 June 30, 2023, 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 June 30, 2023. Since inception through June 30, 2023, members of Monza made partner capital contributions, including W&T’s contributions of working interest in the drilling projects, to Monza totaling $302.4 million and received cash distributions totaling $204.7 million. Since inception through June 30, 2023, W&T made total capital contributions, including the contributions of working interest in the drilling projects, to Monza totaling $68.2 million and received cash distributions totaling $48.3 million. Consolidation and Carrying Amounts W&T’s interest in Monza is considered to be a variable interest that is proportionally consolidated. Through June 30, 2023, 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. The following table presents the amounts recorded by W&T on the Condensed Consolidated Balance Sheets related to the consolidation of the proportional interest in Monza’s operations (in thousands): June 30, 2023 December 31, 2022 Working capital $ 1,191 $ 2,515 Oil and natural gas properties and other, net 34,516 37,260 Asset retirement obligations 518 467 Other assets 9,909 11,571 As required, W&T may call on Monza to provide cash to fund its portion of certain Joint Venture Drilling Program projects in advance of capital expenditure spending, and the unused balances as of June 30, 2023 and December 31, 2022 were $2.8 million and $2.9 million, respectively, which are included in the Condensed Consolidated Balance Sheets in Advances from joint interest partners. The following table presents the amounts recorded by W&T in the Condensed (i Six Months Ended June 30, 2023 2022 Total revenues $ 6,018 $ 16,615 Total operating expenses 4,623 7,368 Interest income 104 — |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
ASSET RETIREMENT OBLIGATIONS | NOTE 7 — AROs represent the estimated present value of the amount incurred to plug, abandon and remediate the Company’s properties at the end of their productive lives. A summary of the changes to ARO is as follows (in thousands): Six Months Ended June 30, 2023 Asset retirement obligations, beginning of period $ 466,430 Liabilities settled (11,841) Accretion expense 15,227 Liabilities incurred 113 Revisions of estimated liabilities 10,903 Asset retirement obligations, end of period 480,832 Less: Current portion (37,763) Long-term $ 443,069 |
SHARE-BASED AWARDS AND CASH BAS
SHARE-BASED AWARDS AND CASH BASED AWARDS | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE 8 — SHARE-BASED AWARDS AND CASH BASED AWARDS On June 16, 2023, the 2023 Incentive Compensation Plan (the “2023 Plan”) was approved by the Company’s shareholders. The 2023 Plan is effective June 16, 2023, and the Company will no longer grant awards pursuant to the W&T Offshore, Inc. Amended and Restated Incentive Compensation Plan, as amended from time to time, (the “Prior Plan”) or the 2004 Directors Compensation Plan, as amended from time to time . stock appreciation rights, restricted stock, restricted stock units, performance awards, stock awards, dividend equivalents, other stock-based awards, performance units or shares, cash awards, substitute awards or any combination of the foregoing to eligible employees, non-employee directors, and consultants. Any awards granted prior to the effective date of the 2023 Plan are considered to have been granted under the Prior Plan. Share-Based Awards to Employees Restricted Stock Units (“RSUs”) one-third A summary of activity related to RSUs during the six months ended June 30, 2023 is as follows: Weighted Average Restricted Grant Date Fair Stock Units Value Per Unit Nonvested, beginning of period 1,221,461 $ 5.76 Granted 1,527,221 4.09 Vested (486,134) 5.62 Forfeited (80,911) 5.97 Nonvested, end of period 2,181,637 4.61 Performance Share Units (“PSUs”) On June 5, 2023, the Company granted PSUs under the Prior Plan ranking against peer companies’ TSR , which ends on December 31, 2025. A summary of activity related to PSUs during the six months ended June 30, 2023 is as follows: Weighted Average Performance Grant Date Fair Share Units Value Per Unit Nonvested, beginning of period 1,502,239 $ 9.78 Granted 1,187,638 4.87 Vested (10,705) 7.80 Forfeited (188,307) 10.05 Nonvested, end of period 2,490,865 7.43 The following table summarizes the assumptions used in the Monte Carlo simulations to calculate the fair value of the absolute TSR PSUs granted at the date indicated: 2023 Grant Date June 5, 2023 Expected term for performance period (in years) 2.6 Expected volatility 76.1 % Risk-free interest rate 4.2 % Fair value (in thousands) $ 5,694 Share-Based Awards to Non-Employee Directors The Company may from time-to-time issue awards to non-employee directors pursuant to the 2023 Plan. There were no awards granted to non-employee directors during the six months ended June 30, 2023. Restricted shares vested during the six months ended June 30, 2023 relate to 2022 restricted shares issued to the non-employee directors. A summary of activity related to restricted shares during the six months ended June 30, 2023 is as follows: Weighted Average Grant Date Restricted Fair Value Shares Per Share Nonvested, beginning of period 42,426 $ 4.95 Vested (42,426) 4.95 Nonvested, end of period — $ — Share-Based Compensation Expense Compensation costs for share-based payments are recognized over the requisite service period. A summary of compensation expense under share-based payment arrangements is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Restricted stock units $ 945 $ 1,360 $ 1,443 $ 1,610 Performance share units 1,124 598 2,496 803 Restricted Shares 18 56 70 121 Total $ 2,087 $ 2,014 $ 4,009 $ 2,534 Cash-Based Incentive Compensation In addition to share-based compensation, short-term cash-based incentive awards were granted under the Plan to all eligible employees during the six months ended June 30, 2023. The short-term cash-based incentive awards granted in 2022 were paid in March 2023. Share-Based Awards and Cash-Based Awards Compensation Expense A summary of compensation expense related to share-based awards and cash-based awards is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Share-based compensation included in: General and administrative expenses $ 2,087 $ 2,014 $ 4,009 $ 2,534 Cash-based incentive compensation included in: Lease operating expense (1) 321 206 1,568 462 General and administrative expenses (1) 899 646 6,869 2,603 Total charged to operating income (loss) $ 3,307 $ 2,866 $ 12,446 $ 5,599 (1) Includes adjustments of accruals to actual payments. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
INCOME TAXES | NOTE 9 — Tax Expense (Benefit) and Tax Rate For the three months ended June 30, 2023, the Company recognized income tax expense of $3.0 million. Primarily as a result of changes in our valuation allowance on our deferred tax assets, our effective tax rate for the three months ended June 30, 2023 is not meaningful. For the three months ended June 30, 2022, the Company recognized income tax expense of $31.1 million for an effective tax rate of 20.1%. For the six months ended June 30, 2023, the Company recognized income tax expense of $11.6 million for an effective tax rate of 45.6%. For the six months ended June 30, 2022, the Company recognized income tax expense of $30.4 million for an effective tax rate of 20.1%. For the three and six months ended June 30, 2023, the Company’s effective tax rate differed from the statutory Federal tax rate primarily by the impact of state income taxes, nondeductible compensation, and adjustments to the valuation allowance. For the three and six months ended June 30, 2022, the Company’s effective tax rate differed from the statutory Federal tax rate primarily by the impact of state income taxes and adjustments to the valuation allowance. Calculation of Interim Provision for Income Tax. Historically, the Company has calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full year to income (loss) for the interim period. In the second quarter of 2023, the Company concluded that it could not calculate a reliable estimate of the annual effective tax rate. Accordingly, the Company computed the effective tax rate for the six-month period ending June 30, 2023 using actual results. Valuation Allowance Deferred tax assets are recorded related to net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods. The realization of these assets depends on recognition of sufficient future taxable income in specific tax jurisdictions in which those temporary differences or net operating losses are deductible. In assessing the need for a valuation allowance on deferred tax assets, the Company considers whether it is more likely than not that some portion or all of them will not be realized. As of June 30, 2023 and December 31, 2022, the valuation allowance was $19.8 million and $15.3 million, respectively, and relates primarily to state net operating losses and the disallowed interest expense limitation carryover. Income Taxes Receivable, Refunds and Payments As of June 30, 2023, the Company has a federal income tax receivable of $1.7 million and state income tax receivable of $0.2 million. As of December 31, 2022, the Company did not have any outstanding current income taxes receivable. During the three and six months ended June 30, 2023, the Company did not receive any income tax refunds and made federal income tax payments of $2.2 million and state income tax payments of $0.3 million. During the three and six months ended June 30, 2022, the Company did not receive any income tax refunds or make any income tax payments of significance. The tax years 2019 through 2022 remain open to examination by the tax jurisdictions to which the Company is subject. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
EARNINGS PER SHARE | NOTE 10 — 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net (loss) income $ (12,109) $ 123,436 $ 13,896 $ 120,979 Less portion allocated to nonvested shares — — 243 — Net (loss) income allocated to common shares $ (12,109) $ 123,436 $ 13,653 $ 120,979 Weighted average common shares outstanding - basic 146,452 143,020 146,435 142,981 Dilutive effect of securities — 1,505 2,610 1,113 Weighted average common shares outstanding - diluted 146,452 144,525 149,045 144,094 Earnings per common share: Basic $ (0.08) $ 0.86 $ 0.09 $ 0.85 Diluted (0.08) 0.85 0.09 0.84 Shares excluded due to being anti-dilutive (weighted average) 2,909 — — — |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
CONTINGENCIES | NOTE 11 — Appeal with the Office of Natural Resources Revenue (“ONRR”) – , , . Civil Penalties – Bureau of Safety and Environmental Enforcement (“ The first, second and final installments were paid in March 2021, March 2022 and February 2023, respectively . Contingent Decommissioning Obligations – During 2021, as a result of the declaration of bankruptcy by a third party that is the indirect successor in title to certain offshore interests that were previously divested by the Company, W&T recorded an initial contingent loss accrual of $4.5 million related to anticipated decommissioning obligations, which was reflected in Other (income) expense, net Other (income) expense, net Although it is reasonably possible that the Company could receive additional state or federal decommissioning orders in the future or be notified of defaulting third parties in existing leases, the Company cannot predict with certainty, if, how or when such orders or notices will be resolved or estimate a possible loss or range of loss that may result from such orders. However, the Company could incur judgments, enter into settlements or revise the Company’s opinion regarding the outcome of certain notices or matters, and such developments could have a material adverse effect on the Company’s results of operations in the period in which the amounts are accrued and the Company’s cash flows in the period in which the amounts are paid. To the extent that the Company does incur costs associated with these properties in future periods, W&T intends to seek contribution from other parties that owned an interest in the facilities. Other Claims – W&T is a party to various pending or threatened claims and complaints seeking damages or other remedies concerning commercial operations and other matters in the ordinary course of its business. In addition, claims or contingencies may arise related to matters occurring prior to the Company’s acquisition of properties or related to matters occurring subsequent to the Company’s sale of properties. In certain cases, W&T has indemnified the sellers of properties acquired, and in other cases, W&T has indemnified the buyers of properties sold. The Company is also subject to federal and state administrative proceedings conducted in the ordinary course of business including matters related to alleged royalty underpayments on certain federal-owned properties. Although W&T can give no assurance about the outcome of pending legal and federal or state administrative proceedings and the effect such an outcome may have, the Company believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on the consolidated financial position, results of operations or liquidity of the Company. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
RELATED PARTY TRANSACTIONS | NOTE 12 — RELATED PARTY TRANSACTIONS Note 2 – Debt |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim periods and the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnote disclosures required by GAAP for complete financial statements for annual periods. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. 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 2022 Annual Report on Form 10-K (the “2022 Annual Report”). |
Use of Estimates | 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 and Accounts Receivable | Revenue and Accounts Receivable – 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. The Company’s maximum exposure at any time would be the receivable balance. Joint interest receivables on the Condensed Consolidated Balance Sheets are presented net of allowance for credit losses of $11.3 million and $12.1 million as of June 30, 2023 and December 31, 2022, respectively. |
Employee Retention Credit | Employee Retention Credit – General and administrative expenses |
Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets – June 30, 2023 December 31, 2022 Derivatives (1) $ 1,778 $ 4,954 Unamortized insurance/bond premiums 8,303 6,046 Prepaid deposits related to royalties 6,822 9,139 Prepayments to vendors 1,628 1,767 Prepayments to joint interest partners 2,319 1,717 Debt issue costs 427 687 Other 88 33 Prepaid expenses and other assets $ 21,365 $ 24,343 (1) Includes closed contracts which have not yet settled. |
Oil and Natural Gas Properties and Other, Net | Oil and Natural Gas Properties and Other, Net – June 30, 2023 December 31, 2022 Oil and natural gas properties and equipment $ 8,847,421 $ 8,813,404 Furniture, fixtures and other 40,224 20,915 Total property and equipment 8,887,645 8,834,319 Less: Accumulated depreciation, depletion, amortization and impairment (8,149,905) (8,099,104) Oil and natural gas properties and other, net $ 737,740 $ 735,215 |
Other Assets (long-term) | Other Assets (long-term) – June 30, 2023 December 31, 2022 Right-of-Use assets $ 10,728 $ 10,364 Investment in White Cap, LLC 2,721 2,453 Proportional consolidation of Monza (Note 6) 9,909 9,321 Derivatives (1) 17,184 23,236 Other 1,576 2,175 Total other assets (long-term) $ 42,118 $ 47,549 (1) Includes open contracts. |
Accrued Liabilities | Accrued Liabilities – June 30, 2023 December 31, 2022 Accrued interest $ 13,848 $ 8,967 Accrued salaries/payroll taxes/benefits 4,808 15,097 Litigation accruals 56 396 Lease liability 1,045 1,628 Derivatives (1) 18,518 46,595 Other 1,048 1,358 Total accrued liabilities $ 39,323 $ 74,041 (1) Includes closed contracts which have not yet settled. |
Other Liabilities (long-term) | Other Liabilities (long-term) – June 30, 2023 December 31, 2022 Dispute related to royalty deductions $ 5,250 $ 4,937 Derivatives (Note 4) 17,417 43,061 Lease liability 11,709 10,527 Other 665 609 Total other liabilities (long-term) $ 35,041 $ 59,134 |
At-the-Market Equity Offering | At-the-Market Equity Offering – under the Company’s “at-the-market” equity offering program (the “ATM Program”). |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | June 30, 2023 December 31, 2022 Derivatives (1) $ 1,778 $ 4,954 Unamortized insurance/bond premiums 8,303 6,046 Prepaid deposits related to royalties 6,822 9,139 Prepayments to vendors 1,628 1,767 Prepayments to joint interest partners 2,319 1,717 Debt issue costs 427 687 Other 88 33 Prepaid expenses and other assets $ 21,365 $ 24,343 (1) Includes closed contracts which have not yet settled. |
Property, Plant and Equipment [Table Text Block] | There were no amounts excluded from amortization as of the dates presented in the following table (in thousands): June 30, 2023 December 31, 2022 Oil and natural gas properties and equipment $ 8,847,421 $ 8,813,404 Furniture, fixtures and other 40,224 20,915 Total property and equipment 8,887,645 8,834,319 Less: Accumulated depreciation, depletion, amortization and impairment (8,149,905) (8,099,104) Oil and natural gas properties and other, net $ 737,740 $ 735,215 |
Schedule of Other Assets, Noncurrent [Table Text Block] | The major categories are presented in the following table (in thousands): June 30, 2023 December 31, 2022 Right-of-Use assets $ 10,728 $ 10,364 Investment in White Cap, LLC 2,721 2,453 Proportional consolidation of Monza (Note 6) 9,909 9,321 Derivatives (1) 17,184 23,236 Other 1,576 2,175 Total other assets (long-term) $ 42,118 $ 47,549 (1) Includes open contracts. |
Schedule of Accrued Liabilities [Table Text Block] | The major categories are presented in the following table (in thousands): June 30, 2023 December 31, 2022 Accrued interest $ 13,848 $ 8,967 Accrued salaries/payroll taxes/benefits 4,808 15,097 Litigation accruals 56 396 Lease liability 1,045 1,628 Derivatives (1) 18,518 46,595 Other 1,048 1,358 Total accrued liabilities $ 39,323 $ 74,041 (1) Includes closed contracts which have not yet settled. |
Other Noncurrent Liabilities [Table Text Block] | The major categories are presented in the following table (in thousands): June 30, 2023 December 31, 2022 Dispute related to royalty deductions $ 5,250 $ 4,937 Derivatives (Note 4) 17,417 43,061 Lease liability 11,709 10,527 Other 665 609 Total other liabilities (long-term) $ 35,041 $ 59,134 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Debt Instruments [Table Text Block] | The components comprising the Company’s debt are presented in the following table (in thousands): June 30, 2023 December 31, 2022 TVPX Loan: Principal $ 11,575 $ — Discount (1,651) Unamortized debt issuance costs (267) — Total TVPX Loan 9,657 — Term Loan: Principal 128,719 147,899 Unamortized debt issuance costs (3,727) (4,592) Total Term Loan 124,992 143,307 Credit Agreement borrowings: — — 11.75% Senior Second Lien Notes due 2026: Principal 275,000 — Unamortized debt issuance costs (6,078) — Total 11.75% Senior Second Lien Notes due 2026 268,922 — 9.75% Senior Second Lien Notes due 2023: Principal — 552,460 Unamortized debt issuance costs — (2,330) Total 9.75% Senior Second Lien Notes due 2023 — 550,130 Less current portion, net (30,550) (582,249) Total long-term debt, net $ 373,021 $ 111,188 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Derivative Assets at Fair Value [Table Text Block] | The following table presents the fair value of the Company’s derivative financial instruments (in thousands): June 30, 2023 December 31, 2022 Assets: Derivative instruments - current $ 1,778 $ 4,954 Derivative instruments - long-term 17,184 23,236 Liabilities: Derivative instruments - current 18,518 46,595 Derivative instruments - long-term 17,417 43,061 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The following table presents the net value and fair value of the Company’s debt (in thousands): June 30, 2023 December 31, 2022 Net Value Fair Value Net Value Fair Value Liabilities: TVPX Loan $ 9,657 $ 9,977 $ — $ — Term Loan 124,992 120,965 143,307 139,056 11.75% Senior Second Lien Notes due 2026 268,922 275,303 — — 9.75% Senior Second Lien Notes due 2023 — — 550,130 544,902 Total $ 403,571 $ 406,245 $ 693,437 $ 683,958 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023: Average Instrument Daily Total Weighted Weighted Weighted Period Type Volumes Volumes Strike Price Put Price Call Price Natural Gas - Henry Hub (NYMEX) (MMbtu) (1) (MMbtu) (1) ($/MMbtu) (1) ($/MMbtu) (1) ($/MMbtu) (1) July 2023 - Dec 2023 calls 35,288 12,880,000 $ — $ — $ 7.50 Jan 2024 - Dec 2024 calls 65,000 23,790,000 $ — $ — $ 6.13 Jan 2025 - Mar 2025 calls 62,000 5,580,000 $ — $ — $ 5.50 July 2023 - Dec 2023 (2) swaps 36,164 13,200,000 $ 2.43 $ — $ — Jan 2024 - Dec 2024 (2) swaps 65,574 24,000,000 $ 2.46 $ — $ — Jan 2025 - Mar 2025 (2) swaps 63,333 5,700,000 $ 2.72 $ — $ — Apr 2025 - Dec 2025 (2) puts 62,182 17,100,000 $ — $ 2.27 $ — Jan 2026 - Dec 2026 (2) puts 55,890 20,400,000 $ — $ 2.35 $ — Jan 2027 - Dec 2027 (2) puts 52,603 19,200,000 $ — $ 2.37 $ — Jan 2028 - Apr 2028 (2) puts 49,587 6,000,000 $ — $ 2.50 $ — (1) MMbtu – Million British Thermal Units (2) These contracts were entered into by the Company’s wholly owned subsidiary, A-I LLC, in conjunction with the Term Loan (see Note 5 – Subsidiary Borrowers). |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following fair value of derivative financial instruments amounts were recorded in the Condensed Consolidated Balance Sheets (in thousands): June 30, 2023 December 31, 2022 Prepaid expenses and other current assets $ 1,778 $ 4,954 Other assets (long-term) 17,184 23,236 Accrued liabilities 18,518 46,595 Other liabilities (long-term) 17,417 43,061 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Realized loss (gain) (1) $ 300 $ (79,667) $ 530 $ (35,973) Unrealized (gain) loss (1,129) 70,813 (40,599) 107,116 Derivative (gain) loss, net $ (829) $ (8,854) $ (40,069) $ 71,143 (1) The three and six months ended June 30, 2022 includes the effect of the $138.0 million realized gain related to the monetization of certain natural gas call contracts through restructuring of strike prices. |
Schedule of Cash Receipts and Payments on Commodity Derivative Contract Settlements [Table Text Block] | Cash payments on commodity derivative contract settlements, net, are included within Net cash provided by operating activities Six Months Ended June 30, 2023 2022 Derivative (gain) loss, net $ (40,069) $ 71,143 Derivative cash (receipts) payments, net (1) (4,427) 70,227 Derivative cash premium payments, net — (46,111) (1) The six months ended June 30, 2022 includes $105.3 million of net cash receipts related to the monetization of certain natural gas call contracts through restructuring of strike prices. |
SUBSIDIARY BORROWERS (Tables)
SUBSIDIARY BORROWERS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SUBSIDIARY BORROWERS | |
Schedule of Consolidation of Subsidiary Borrowers [Table Text Block] | The following table presents the amounts recorded by W&T on the Condensed Consolidated Balance Sheets related to the consolidation of the Subsidiary Borrowers and the subsidiary that owns the equity of the Subsidiary Borrowers (in thousands): June 30, 2023 December 31, 2022 Assets: Cash and cash equivalents $ 5,899 $ 21,764 Receivables: Oil and natural gas sales 18,411 37,344 Joint interest, net (27,400) (5,760) Prepaid expenses and other assets 125 417 Oil and natural gas properties and other, net 289,959 280,649 Other assets 11,486 8,473 Liabilities: Accounts payable 8,996 27,387 Undistributed oil and natural gas proceeds 3,625 7,930 Accrued liabilities 19,036 45,102 Current portion of long-term debt 30,074 32,119 Long-term debt, net 94,918 111,188 Asset retirement obligations 66,136 61,138 Other liabilities 22,020 47,398 |
Schedule of Subsidiary Borrowers and the subsidiary that owns the equity [Table Text Block] | The following table presents the amounts recorded by W&T in the Condensed (i Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Total revenues $ 25,437 $ 76,846 $ 46,560 $ 124,361 Total operating expenses 30,443 18,385 50,490 33,185 Interest expense, net 3,229 3,658 5,411 8,436 Derivative (gain) loss, net (6,012) 35,888 (52,389) 132,046 |
JOINT VENTURE DRILLING PROGRAM
JOINT VENTURE DRILLING PROGRAM (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Note 6 - Joint Venture Drilling Program | |
Schedule of Condensed Consolidated Balance Sheet related to the consolidation of the proportional interest in Monza's operations | The following table presents the amounts recorded by W&T on the Condensed Consolidated Balance Sheets related to the consolidation of the proportional interest in Monza’s operations (in thousands): June 30, 2023 December 31, 2022 Working capital $ 1,191 $ 2,515 Oil and natural gas properties and other, net 34,516 37,260 Asset retirement obligations 518 467 Other assets 9,909 11,571 |
Schedule of Condensed Consolidated Statement of Operations related to the consolidation of the proportional interest in Monza's operations | The following table presents the amounts recorded by W&T in the Condensed (i Six Months Ended June 30, 2023 2022 Total revenues $ 6,018 $ 16,615 Total operating expenses 4,623 7,368 Interest income 104 — |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | Six Months Ended June 30, 2023 Asset retirement obligations, beginning of period $ 466,430 Liabilities settled (11,841) Accretion expense 15,227 Liabilities incurred 113 Revisions of estimated liabilities 10,903 Asset retirement obligations, end of period 480,832 Less: Current portion (37,763) Long-term $ 443,069 |
SHARE-BASED AWARDS AND CASH B_2
SHARE-BASED AWARDS AND CASH BASED AWARDS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Unvested Restricted Stock Units Roll Forward [Table Text Block] | A summary of activity related to RSUs during the six months ended June 30, 2023 is as follows: Weighted Average Restricted Grant Date Fair Stock Units Value Per Unit Nonvested, beginning of period 1,221,461 $ 5.76 Granted 1,527,221 4.09 Vested (486,134) 5.62 Forfeited (80,911) 5.97 Nonvested, end of period 2,181,637 4.61 |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | A summary of activity related to PSUs during the six months ended June 30, 2023 is as follows: Weighted Average Performance Grant Date Fair Share Units Value Per Unit Nonvested, beginning of period 1,502,239 $ 9.78 Granted 1,187,638 4.87 Vested (10,705) 7.80 Forfeited (188,307) 10.05 Nonvested, end of period 2,490,865 7.43 |
Share-based Payment Arrangement, Nonemployee Director Award Plan, Activity [Table Text Block] | A summary of activity related to restricted shares during the six months ended June 30, 2023 is as follows: Weighted Average Grant Date Restricted Fair Value Shares Per Share Nonvested, beginning of period 42,426 $ 4.95 Vested (42,426) 4.95 Nonvested, end of period — $ — |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | Compensation costs for share-based payments are recognized over the requisite service period. A summary of compensation expense under share-based payment arrangements is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Restricted stock units $ 945 $ 1,360 $ 1,443 $ 1,610 Performance share units 1,124 598 2,496 803 Restricted Shares 18 56 70 121 Total $ 2,087 $ 2,014 $ 4,009 $ 2,534 |
Schedule of Incentive Compensation Expense [Table Text Block] | A summary of compensation expense related to share-based awards and cash-based awards is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Share-based compensation included in: General and administrative expenses $ 2,087 $ 2,014 $ 4,009 $ 2,534 Cash-based incentive compensation included in: Lease operating expense (1) 321 206 1,568 462 General and administrative expenses (1) 899 646 6,869 2,603 Total charged to operating income (loss) $ 3,307 $ 2,866 $ 12,446 $ 5,599 (1) Includes adjustments of accruals to actual payments. |
Performance Share Units [Member] | |
Notes Tables | |
Schedule of Share-based Payment Award, Equity Instrument Other Than Options, Valuation Assumptions [Table Text Block] | 2023 Grant Date June 5, 2023 Expected term for performance period (in years) 2.6 Expected volatility 76.1 % Risk-free interest rate 4.2 % Fair value (in thousands) $ 5,694 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table presents the calculation of basic and diluted (loss) earnings per common share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net (loss) income $ (12,109) $ 123,436 $ 13,896 $ 120,979 Less portion allocated to nonvested shares — — 243 — Net (loss) income allocated to common shares $ (12,109) $ 123,436 $ 13,653 $ 120,979 Weighted average common shares outstanding - basic 146,452 143,020 146,435 142,981 Dilutive effect of securities — 1,505 2,610 1,113 Weighted average common shares outstanding - diluted 146,452 144,525 149,045 144,094 Earnings per common share: Basic $ (0.08) $ 0.86 $ 0.09 $ 0.85 Diluted (0.08) 0.85 0.09 0.84 Shares excluded due to being anti-dilutive (weighted average) 2,909 — — — |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | |
Mar. 18, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Oil and Gas Joint Interest Billing Receivables, Allowance for Credit Loss, Current | $ 11,300,000 | $ 12,100,000 | |
At The Market Equity Offering [Member] | |||
Sale of Stock, Maximum Percentage of Placement Fee | 3% | ||
Issuance and sale of common stock | $ 100,000,000 | ||
Stock issued (in shares) | 0 | 2,971,413 | |
Share issued price per share | $ 5.72 | ||
Proceeds from sale of equity | $ 16,500,000 | ||
General and Administrative Expense [Member] | |||
Employee Retention Credit | $ 2,200,000 | ||
W&T Energy VI, LLC, Aquasition LLC, and Aquasition II, LLC [Member] | |||
Owned Subsidiaries | 100% |
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 | Jun. 30, 2023 | Dec. 31, 2022 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Amounts Recorded in Prepaid Expenses and Other Assets (Details) | |||
Derivatives (Note 4) | [1] | $ 1,778 | $ 4,954 |
Unamortized insurance/bond premiums | 8,303 | 6,046 | |
Prepaid deposits related to royalties | 6,822 | 9,139 | |
Prepayments to vendors | 1,628 | 1,767 | |
Prepayments to joint interest partners | 2,319 | 1,717 | |
Debt issue costs | 427 | 687 | |
Other | 88 | 33 | |
Prepaid expenses and other assets | $ 21,365 | $ 24,343 | |
[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 | Jun. 30, 2023 | Dec. 31, 2022 |
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 | $ 8,847,421 | $ 8,813,404 |
Furniture, fixtures and other | 40,224 | 20,915 |
Total property and equipment | 8,887,645 | 8,834,319 |
Less: Accumulated depreciation, depletion, amortization and impairment | (8,149,905) | (8,099,104) |
Oil and natural gas properties and other, net | $ 737,740 | $ 735,215 |
BASIS OF PRESENTATION AND SIG_7
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Assets (Long-term) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Other Assets (Long-term) (Details) | |||
Right-of-Use assets | $ 10,728 | $ 10,364 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other assets (long-term) | Total other assets (long-term) | |
Investment in White Cap, LLC | $ 2,721 | $ 2,453 | |
Proportional consolidation of Monza (Note 6) | 9,909 | 9,321 | |
Derivatives (Note 4) | [1] | 17,184 | 23,236 |
Other | 1,576 | 2,175 | |
Total other assets (long-term) | $ 42,118 | $ 47,549 | |
[1] Includes open contracts. |
BASIS OF PRESENTATION AND SIG_8
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Note 1 - Significant Accounting Policies - Schedule of Accrued Liabilities (Details) | |||
Accrued interest | $ 13,848 | $ 8,967 | |
Accrued salaries/payroll taxes/benefits | 4,808 | 15,097 | |
Litigation accruals | 56 | 396 | |
Lease liability | $ 1,045 | $ 1,628 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total accrued liabilities | Total accrued liabilities | |
Derivatives (Note 4) | [1] | $ 18,518 | $ 46,595 |
Other | 1,048 | 1,358 | |
Total accrued liabilities | $ 39,323 | $ 74,041 | |
[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 | Jun. 30, 2023 | Dec. 31, 2022 |
Note 1 - Significant Accounting Policies - Schedule of Other Liabilities (Long-term) (Details) | ||
Dispute related to royalty deductions | $ 5,250 | $ 4,937 |
Derivatives (Note 4) | 17,417 | 43,061 |
Lease liability | $ 11,709 | $ 10,527 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total other liabilities (long-term) | Total other liabilities (long-term) |
Other | $ 665 | $ 609 |
Total other liabilities (long-term) | $ 35,041 | $ 59,134 |
DEBT - Components of Long-term
DEBT - Components of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Feb. 08, 2023 | Jan. 27, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | May 19, 2021 | Oct. 18, 2018 |
Total | $ 403,571 | $ 693,437 | |||||
Less current portion, net | (30,550) | (582,249) | |||||
Long-term debt, net | 373,021 | 111,188 | |||||
TVPX Loan [Member] | |||||||
Principal | 11,575 | ||||||
Discount | (1,651) | ||||||
Unamortized debt issuance costs | (267) | ||||||
Total | 9,657 | ||||||
Term Loan [Member] | |||||||
Principal | 128,719 | 147,899 | |||||
Unamortized debt issuance costs | (3,727) | (4,592) | |||||
Total | $ 124,992 | 143,307 | |||||
Debt instrument, interest rate, stated percentage | 7% | ||||||
9.75% Senior Second Lien Notes due November 2023 [Member] | |||||||
Principal | $ 552,500 | 552,460 | |||||
Unamortized debt issuance costs | (2,330) | ||||||
Total | $ 550,130 | ||||||
Debt instrument, interest rate, stated percentage | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | ||
11.75% Senior Second Lien Notes due 2026 [Member] | |||||||
Principal | $ 275,000 | ||||||
Unamortized debt issuance costs | (6,078) | ||||||
Total | $ 268,922 | ||||||
Debt instrument, interest rate, stated percentage | 11.75% | 11.75% | 11.75% | 11.75% | 11.75% |
DEBT (Details Textual)
DEBT (Details Textual) | 3 Months Ended | 6 Months Ended | |||||||
May 15, 2023 USD ($) | Feb. 08, 2023 USD ($) | Jan. 27, 2023 USD ($) | Mar. 31, 2022 item | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 | May 19, 2021 USD ($) | Oct. 18, 2018 USD ($) | |
Current portion of long-term debt, net | $ 30,550,000 | $ 582,249,000 | |||||||
Fair market value | 406,245,000 | 683,958,000 | |||||||
Redemption Prior to August 1, 2024 With Applicable Premium [Member] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100% | ||||||||
Redemption Prior to August 1, 2024 [Member] | |||||||||
Debt Instrument, Redemption Price, Percentage | 111.75% | ||||||||
Redemption On or After August 1, 2024 [Member] | |||||||||
Debt Instrument, Redemption Price, Percentage | 105.875% | ||||||||
Redemption On or After August 1, 2025 [Member] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100% | ||||||||
Maximum [Member] | Redemption Prior to August 1, 2024 [Member] | |||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35% | ||||||||
TVPX Loan and Term Loan [Member] | |||||||||
Current portion of long-term debt, net | 30,600,000 | ||||||||
TVPX Loan [Member] | |||||||||
Principal | 11,575,000 | ||||||||
Fair market value | 9,977,000 | ||||||||
TVPX Loan [Member] | Related Party [Member] | |||||||||
Purchase price of aircraft | $ 19,100,000 | ||||||||
Cash on hand | $ 9,000,000 | ||||||||
Principal | 11,600,000 | ||||||||
Debt instrument, interest rate, stated percentage | 2.49% | ||||||||
Principal amount | $ 11,800,000 | ||||||||
Term of debt | 41 months | ||||||||
Monthly amortization payments | $ 91,700,000 | ||||||||
Balloon payment | 8,000,000 | ||||||||
Fair market value | $ 10,100,000 | ||||||||
Repayments of Long-term Debt, Total | 183,300 | ||||||||
Term Loan [Member] | |||||||||
Principal | 128,719,000 | 147,899,000 | |||||||
Debt instrument, interest rate, stated percentage | 7% | ||||||||
Principal amount | $ 215,000,000 | ||||||||
Fair market value | 120,965,000 | 139,056,000 | |||||||
Repayments of Long-term Debt, Total | 19,200,000 | ||||||||
Credit Agreement [Member] | |||||||||
Borrowings outstanding | 0 | ||||||||
Letters of Credit Outstanding, Amount | $ 4,400,000 | 4,400,000 | |||||||
9.75% Senior Second Lien Notes due November 2023 [Member] | |||||||||
Principal | $ 552,500,000 | $ 552,460,000 | |||||||
Debt instrument, interest rate, stated percentage | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | ||||
Principal amount | $ 625,000,000 | ||||||||
Fair market value | $ 544,902,000 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 12.60% | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100% | ||||||||
Proceeds from Issuance of Debt | $ 270,800,000 | ||||||||
11.75% Senior Second Lien Notes due 2026 [Member] | |||||||||
Principal | $ 275,000,000 | ||||||||
Debt instrument, interest rate, stated percentage | 11.75% | 11.75% | 11.75% | 11.75% | 11.75% | ||||
Principal amount | $ 275,000,000 | ||||||||
Fair market value | $ 275,303,000 | ||||||||
Repayments of Debt | $ 296,100,000 | ||||||||
Short Term First Priority Lien Secured Revolving Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000,000 | ||||||||
Calculus Lending Facility [Member] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | ||||||||
Number of trailing quarters | item | 4 | ||||||||
Total proved PV -10 to debt ratio | 2 | ||||||||
Percentage of funding or utilization of the credit facility | 100% | ||||||||
Credit Agreement Leverage Ratio | 2.50 | ||||||||
Credit Agreement Minimum Current Ratio | 1% | ||||||||
Calculus Lending Facility [Member] | Secured Overnight Financing Rate (SOFR) [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 6% |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Derivative instruments - current | [1] | $ 1,778 | $ 4,954 |
Derivative instruments - long-term | [2] | 17,184 | 23,236 |
Derivative instruments - current | [1] | 18,518 | 46,595 |
Derivative instruments - long-term | 17,417 | 43,061 | |
Open Contracts [Member] | |||
Derivative instruments - current | 1,778 | 4,954 | |
Derivative instruments - long-term | 17,184 | 23,236 | |
Derivative instruments - current | 18,518 | 46,595 | |
Derivative instruments - long-term | $ 17,417 | $ 43,061 | |
[1] Includes closed contracts which have not yet settled. Includes open contracts. |
FAIR VALUE MEASUREMENTS - Net V
FAIR VALUE MEASUREMENTS - Net Value and Fair Value of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Feb. 08, 2023 | Jan. 27, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | May 19, 2021 | Oct. 18, 2018 |
Long-term debt, net value | $ 403,571 | $ 693,437 | |||||
Long-term debt, fair value | 406,245 | 683,958 | |||||
TVPX Loan [Member] | |||||||
Long-term debt, net value | 9,657 | ||||||
Long-term debt, fair value | 9,977 | ||||||
Term Loan [Member] | |||||||
Long-term debt, net value | 124,992 | 143,307 | |||||
Long-term debt, fair value | $ 120,965 | 139,056 | |||||
Debt instrument, interest rate, stated percentage | 7% | ||||||
9.75% Senior Second Lien Notes due November 2023 [Member] | |||||||
Long-term debt, net value | 550,130 | ||||||
Long-term debt, fair value | $ 544,902 | ||||||
Debt instrument, interest rate, stated percentage | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | ||
11.75% Senior Second Lien Notes due 2026 [Member] | |||||||
Long-term debt, net value | $ 268,922 | ||||||
Long-term debt, fair value | $ 275,303 | ||||||
Debt instrument, interest rate, stated percentage | 11.75% | 11.75% | 11.75% | 11.75% | 11.75% |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Open Commodity Derivative Contracts (Details) | 6 Months Ended |
Jun. 30, 2023 MMBTU $ / MMBTU | |
NYMEX Natural Gas Henry Hub Call | July 2023 - Dec 2023 | |
Average daily volume | 35,288 |
Total Volumes | 12,880,000 |
NYMEX Natural Gas Henry Hub Call | July 2023 - Dec 2023 | Call Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 7.50 |
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 | 6.13 |
NYMEX Natural Gas Henry Hub Call | Jan 2025 - Mar 2025 | |
Average daily volume | 62,000 |
Total Volumes | 5,580,000 |
NYMEX Natural Gas Henry Hub Call | Jan 2025 - Mar 2025 | Call Option | |
Weighted Price (in dollars per share) | $ / MMBTU | 5.50 |
NYMEX Natural Gas Henry Hub Swap | July 2023 - Dec 2023 | |
Average daily volume | 36,164 |
Total Volumes | 13,200,000 |
Weighted Price (in dollars per share) | $ / MMBTU | 2.43 |
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 - Financial Statement Presentation - Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Derivatives asset, current | [1] | $ 1,778 | $ 4,954 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other assets (Note 1) | Prepaid expenses and other assets (Note 1) | |
Derivative assets, non-current | [2] | $ 17,184 | $ 23,236 |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other assets (Note 1) | Other assets (Note 1) | |
Derivative liabilities, current | [1] | $ 18,518 | $ 46,595 |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current | |
Derivative liabilities, non-current | $ 17,417 | $ 43,061 | |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities (Note 1) | Other liabilities (Note 1) | |
Open Contracts and Closed Contracts Which Had Not Yet Been Settled [Member] | |||
Derivatives asset, current | $ 1,778 | $ 4,954 | |
Derivative assets, non-current | 17,184 | 23,236 | |
Derivative liabilities, current | 18,518 | 46,595 | |
Derivative liabilities, non-current | $ 17,417 | $ 43,061 | |
[1] Includes closed contracts which have not yet settled. Includes open contracts. |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Financial Statement Presentation - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Financial Instruments. | ||||
Realized loss (gain) | $ 300 | $ (79,667) | $ 530 | $ (35,973) |
Unrealized (gain) loss | (1,129) | 70,813 | (40,599) | 107,116 |
Derivative (gain) loss, net | $ (829) | (8,854) | $ (40,069) | 71,143 |
Realized gain through restructuring of strike prices | $ 138,000 | $ 138,000 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Financial Statement Presentation - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative Financial Instruments. | ||||
Derivative (gain) loss, net | $ (829) | $ (8,854) | $ (40,069) | $ 71,143 |
Derivative cash (receipts) payments, net | $ (4,427) | 70,227 | ||
Derivative cash premium payments | (46,111) | |||
Cash receipts related to natural gas call contracts through restructuring of strike prices | $ 105,300 |
SUBSIDIARY BORROWERS (Details)
SUBSIDIARY BORROWERS (Details) - Term Loan [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | May 19, 2021 | |
Subsidiary or Equity Method Investee [Line Items] | |||
Principal | $ 215 | ||
Subsidiary Borrowers | |||
Subsidiary or Equity Method Investee [Line Items] | |||
Principal | $ 215 | ||
Cash Distributions Received | $ 0 | $ 30.2 |
SUBSIDIARY BORROWERS - Consolid
SUBSIDIARY BORROWERS - Consolidation of Subsidiary Borrowers - Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 171,627 | $ 461,357 |
Receivables: | ||
Oil and natural gas sales | 41,342 | 66,146 |
Joint interest, net | 13,875 | 14,000 |
Prepaid expenses and other assets | 21,365 | 24,343 |
Oil and natural gas properties and other, net | 737,740 | 735,215 |
Other assets | 42,118 | 47,549 |
Liabilities: | ||
Accounts payable | 67,293 | 65,158 |
Undistributed oil and natural gas proceeds | 31,178 | 41,934 |
Accrued liabilities | 39,323 | 74,041 |
Current portion of long-term debt, net | 30,550 | 582,249 |
Long-term debt, net | 373,021 | 111,188 |
Asset retirement obligations (Note 7) | 37,763 | 25,359 |
Other liabilities | 35,041 | 59,134 |
Subsidiary Borrowers | ||
Assets: | ||
Cash and cash equivalents | 5,899 | 21,764 |
Receivables: | ||
Oil and natural gas sales | 18,411 | 37,344 |
Joint interest, net | 27,400 | 5,760 |
Prepaid expenses and other assets | 125 | 417 |
Oil and natural gas properties and other, net | 289,959 | 280,649 |
Other assets | 11,486 | 8,473 |
Liabilities: | ||
Accounts payable | 8,996 | 27,387 |
Undistributed oil and natural gas proceeds | 3,625 | 7,930 |
Accrued liabilities | 19,036 | 45,102 |
Current portion of long-term debt, net | 30,074 | 32,119 |
Long-term debt, net | 94,918 | 111,188 |
Asset retirement obligations (Note 7) | 66,136 | 61,138 |
Other liabilities | $ 22,020 | $ 47,398 |
SUBSIDIARY BORROWERS - Consol_2
SUBSIDIARY BORROWERS - Consolidation of Subsidiary Borrowers - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Subsidiary or Equity Method Investee [Line Items] | ||||
Total revenues | $ 126,181 | $ 273,808 | $ 257,906 | $ 464,812 |
Total operating expenses | 126,110 | 111,484 | 247,485 | 204,849 |
Interest expense, net | 10,323 | 18,183 | 25,036 | 38,066 |
Derivative (gain) loss, net | (829) | (8,854) | (40,069) | 71,143 |
Subsidiary Borrowers | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Total revenues | 25,437 | 76,846 | 46,560 | 124,361 |
Total operating expenses | 30,443 | 18,385 | 50,490 | 33,185 |
Interest expense, net | 3,229 | 3,658 | 5,411 | 8,436 |
Derivative (gain) loss, net | $ (6,012) | $ 35,888 | $ (52,389) | $ 132,046 |
JOINT VENTURE DRILLING PROGRA_2
JOINT VENTURE DRILLING PROGRAM (Details Textual) $ in Millions | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2018 USD ($) item | Jun. 30, 2023 USD ($) item | Dec. 31, 2022 USD ($) | |
JV Drilling Program [Member] | |||
Number of wells completed | item | 10 | ||
Number of completed wells in operation | item | 8 | ||
Capital Contribution Payments From Related Party | $ 68.2 | ||
Capital Contributions From Related Party During Period | 48.3 | ||
Monza Energy, LLC [Member] | |||
Cash Call Balance | 2.8 | $ 2.9 | |
Monza Energy, LLC [Member] | JV Drilling Program [Member] | |||
Number of initial members | item | 2 | ||
Amount committed by investors | $ 361.4 | ||
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 | 302.4 | ||
Capital Contributions From Related Party During Period | $ 204.7 | ||
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 | $ 14.5 |
JOINT VENTURE DRILLING PROGRA_3
JOINT VENTURE DRILLING PROGRAM - Consolidation - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Oil and natural gas properties and other, net | $ 737,740 | $ 735,215 |
Asset retirement obligations (Note 7) | 37,763 | 25,359 |
Other assets | 42,118 | 47,549 |
Monza Energy, LLC [Member] | ||
Working capital | 1,191 | 2,515 |
Oil and natural gas properties and other, net | 34,516 | 37,260 |
Asset retirement obligations (Note 7) | 518 | 467 |
Other assets | $ 9,909 | $ 11,571 |
JOINT VENTURE DRILLING PROGRA_4
JOINT VENTURE DRILLING PROGRAM - Consolidation - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total revenues | $ 126,181 | $ 273,808 | $ 257,906 | $ 464,812 |
Monza Energy, LLC [Member] | ||||
Total revenues | 6,018 | 16,615 | ||
Total operating expenses | 4,623 | $ 7,368 | ||
Interest income | $ 104 |
ASSET RETIREMENT OBLIGATIONS -
ASSET RETIREMENT OBLIGATIONS - Changes to Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Asset Retirement Obligations - Changes to Asset Retirement Obligation (Details) | |||||
Asset retirement obligations, beginning of period | $ 466,430 | ||||
Liabilities settled | (11,841) | ||||
Accretion expense | $ 7,717 | $ 6,681 | 15,227 | $ 12,917 | |
Liabilities incurred | 113 | ||||
Revisions of estimated liabilities | 10,903 | ||||
Asset retirement obligations, end of period | 480,832 | 480,832 | |||
Less: Current portion | (37,763) | (37,763) | $ (25,359) | ||
Asset retirement obligations, less current portion | $ 443,069 | $ 443,069 |
SHARE-BASED AWARDS AND CASH B_3
SHARE-BASED AWARDS AND CASH BASED AWARDS (Details Textual) - shares | 6 Months Ended | |
Jun. 05, 2023 | Jun. 30, 2023 | |
Vesting percentage each year on June 5, 2024, 2025 and 2026 | 33.33% | |
Restricted Stock [Member] | ||
Granted, restricted stock units (in shares) | 0 | |
Performance Share Units [Member] | ||
Granted, restricted stock units (in shares) | 1,187,638 | |
Performance period | 3 years |
SHARE-BASED AWARDS AND CASH B_4
SHARE-BASED AWARDS AND CASH BASED AWARDS - Summary of Share Activity Related to Restricted Stock Units (Details) - Restricted Stock Units [Member] | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Nonvested, beginning of period, restricted stock units (in shares) | shares | 1,221,461 |
Nonvested, beginning of period, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 5.76 |
Granted, restricted stock units (in shares) | shares | 1,527,221 |
Granted, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 4.09 |
Vested, restricted stock units (in shares) | shares | (486,134) |
Vested, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 5.62 |
Forfeited, restricted stock units (in shares) | shares | (80,911) |
Forfeited, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 5.97 |
Nonvested, end of period, restricted stock units (in shares) | shares | 2,181,637 |
Nonvested, end of period, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 4.61 |
SHARE-BASED AWARDS AND CASH B_5
SHARE-BASED AWARDS AND CASH BASED AWARDS - Summary of Share Activity Related to Performance Share Units (Details) - Performance Share Units [Member] | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, beginning of period, restricted stock units (in shares) | shares | 1,502,239 |
Nonvested, beginning of period, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 9.78 |
Granted, restricted stock units (in shares) | shares | 1,187,638 |
Granted, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 4.87 |
Vested, restricted stock units (in shares) | shares | (10,705) |
Vested, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 7.80 |
Forfeited, restricted stock units (in shares) | shares | (188,307) |
Forfeited, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 10.05 |
Nonvested, end of period, restricted stock units (in shares) | shares | 2,490,865 |
Nonvested, end of period, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 7.43 |
SHARE-BASED AWARDS AND CASH B_6
SHARE-BASED AWARDS AND CASH BASED AWARDS - Summary of Assumptions Used to Calculate Fair Value of PSUs granted (Details) $ in Thousands | Jun. 05, 2023 USD ($) |
Share-Based Awards and Cash-Based Awards | |
Expected term for performance period (in years) | 2 years 7 months 6 days |
Expected volatility | 76.10% |
Risk-free interest rate | 4.20% |
Fair value | $ 5,694 |
SHARE-BASED AWARDS AND CASH B_7
SHARE-BASED AWARDS AND CASH BASED AWARDS - Summary of Restricted Stock Activity (Details) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Nonvested, beginning of period, restricted stock units (in shares) | shares | 42,426 |
Nonvested, beginning of period, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 4.95 |
Vested, restricted stock units (in shares) | shares | (42,426) |
Vested, weighted average grant date fair value per unit (in dollars per share) | $ / shares | $ 4.95 |
SHARE-BASED AWARDS AND CASH B_8
SHARE-BASED AWARDS AND CASH BASED AWARDS - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based compensation expense | $ 2,087 | $ 2,014 | $ 4,009 | $ 2,534 |
Restricted Stock Units [Member] | ||||
Share-based compensation expense | 945 | 1,360 | 1,443 | 1,610 |
Performance Share Units [Member] | ||||
Share-based compensation expense | 1,124 | 598 | 2,496 | 803 |
Restricted Stock [Member] | ||||
Share-based compensation expense | $ 18 | $ 56 | $ 70 | $ 121 |
SHARE-BASED AWARDS AND CASH B_9
SHARE-BASED AWARDS AND CASH BASED AWARDS - Summary of Share-Based Awards and Cash-Based Awards Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based compensation expense | $ 2,087 | $ 2,014 | $ 4,009 | $ 2,534 |
Total charged to operating income (loss) | 3,307 | 2,866 | 12,446 | 5,599 |
General and Administrative Expense [Member] | ||||
Share-based compensation expense | 2,087 | 2,014 | 4,009 | 2,534 |
Cash-based incentive compensation | 899 | 646 | 6,869 | 2,603 |
Lease Operating Expense [Member] | ||||
Cash-based incentive compensation | $ 321 | $ 206 | $ 1,568 | $ 462 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Note To Financial Statement Details Textual | |||||
Effective Income Tax Rate Reconciliation, Percent, Total | 20.10% | 45.60% | 20.10% | ||
Deferred Tax Assets, Valuation Allowance, Total | $ 19,800 | $ 19,800 | $ 15,300 | ||
Income tax expense | 2,997 | $ 31,093 | 11,636 | $ 30,404 | |
Federal income tax receivable | 1,700 | 1,700 | |||
State income tax receivable | 200 | 200 | |||
Federal income tax payments | 2,200 | 2,200 | |||
State income tax payments | $ 300 | $ 300 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
EARNINGS PER SHARE - Schedule of Basic and Diluted (Loss) Earnings Per Common Share (Details) | ||||
Net (loss) income | $ (12,109) | $ 123,436 | $ 13,896 | $ 120,979 |
Less portion allocated to nonvested shares | 243 | |||
Net (loss) income allocated to common shares | $ (12,109) | $ 123,436 | $ 13,653 | $ 120,979 |
Weighted average common shares outstanding - basic (in shares) | 146,452 | 143,020 | 146,435 | 142,981 |
Dilutive effect of securities (in shares) | 1,505 | 2,610 | 1,113 | |
Weighted average common shares outstanding - diluted (in shares) | 146,452 | 144,525 | 149,045 | 144,094 |
Earnings per common share - Basic (in dollars per share) | $ (0.08) | $ 0.86 | $ 0.09 | $ 0.85 |
Earnings per common share - Diluted (in dollars per share) | $ (0.08) | $ 0.85 | $ 0.09 | $ 0.84 |
Shares excluded due to being anti-dilutive (weighted-average) (in shares) | 2,909 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jan. 31, 2021 USD ($) item | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 25, 2017 USD ($) | Dec. 31, 2010 USD ($) | |
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 | $ 8,900,000 | $ 6,900,000 | ||||
Decommissioning obligations | 3,400,000 | |||||
Loss of decommissioning obligations | $ 17,000,000 | |||||
Loss contingency in period | $ 20,400,000 | |||||
Other Nonoperating Income (Expense) [Member] | ||||||
Loss contingency in period | $ 15,900,000 | $ 4,500,000 | ||||
BSEE [Member] | ||||||
Number of pending civil penalties | item | 9 | |||||
Proposed civil penalties | $ 7,700,000 | |||||
Settlement Agreement Annual Instalments Value | $ 720,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | May 15, 2023 | Dec. 31, 2022 |
Fair market value | $ 406,245 | $ 683,958 | |
TVPX Loan [Member] | |||
Fair market value | $ 9,977 | ||
Related Party [Member] | TVPX Loan [Member] | |||
Purchase price of aircraft | $ 19,100 | ||
Cash on hand | 9,000 | ||
Fair market value | 10,100 | ||
Principal amount | $ 11,800 | ||
Debt instrument, interest rate, stated percentage | 2.49% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (12,109) | $ 123,436 | $ 13,896 | $ 120,979 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |