Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 06, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MAGNUM HUNTER RESOURCES CORP | ' |
Entity Central Index Key | '0001335190 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 199,905,010 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $42,667 | $41,713 |
Restricted cash | 0 | 5,000 |
Oil and natural gas sales | 22,276 | 25,099 |
Joint interests and other, net of allowance for doubtful accounts of $702 at September 30, 2014 and $196 at December 31, 2013 | 18,053 | 30,582 |
Derivative assets | 1,954 | 608 |
Inventory | 3,039 | 7,158 |
Investments | 8,230 | 2,262 |
Prepaid expenses and other assets | 4,832 | 2,938 |
Assets held for sale | 0 | 5,366 |
Total current assets | 101,051 | 120,726 |
PROPERTY, PLANT AND EQUIPMENT | ' | ' |
Oil and natural gas properties, successful efforts method of accounting, net | 1,322,406 | 1,224,659 |
Gas transportation, gathering and processing equipment and other, net | 468,908 | 289,420 |
Total property, plant and equipment, net | 1,791,314 | 1,514,079 |
OTHER ASSETS | ' | ' |
Deferred financing costs, net of amortization of $18,461 at September 30, 2014 and $9,735 at December 31, 2013 | 17,511 | 20,008 |
Derivative assets, long-term | 255 | 25 |
Intangible assets, net | 5,025 | 6,530 |
Goodwill | 30,602 | 30,602 |
Assets held for sale | 86,362 | 162,687 |
Other assets | 1,445 | 1,994 |
Total assets | 2,033,565 | 1,856,651 |
CURRENT LIABILITIES | ' | ' |
Current portion of notes payable | 8,670 | 3,804 |
Accounts payable | 199,577 | 107,837 |
Accounts payable to related parties | 355 | 23 |
Accrued liabilities | 36,895 | 44,629 |
Revenue payable | 5,911 | 6,313 |
Derivative liabilities | 48 | 1,903 |
Liabilities associated with assets held for sale | 0 | 12,865 |
Other liabilities | 3,786 | 6,491 |
Total current liabilities | 255,242 | 183,865 |
Long-term debt | 949,792 | 876,106 |
Asset retirement obligations | 25,176 | 16,163 |
Derivative liabilities, long-term | 173,271 | 76,310 |
Other long-term liabilities | 5,382 | 2,279 |
Long-term liabilities associated with assets held for sale | 1,619 | 14,523 |
Total liabilities | 1,410,482 | 1,169,246 |
COMMITMENTS AND CONTINGENCIES (Note 16) | ' | ' |
REDEEMABLE PREFERRED STOCK | ' | ' |
Redeemable preferred stock | 251,685 | 236,675 |
SHAREHOLDERS’ EQUITY | ' | ' |
Common stock, $0.01 par value per share, 350,000,000 shares authorized, and 200,812,979 and 172,409,023 issued, and 199,898,027 and 171,494,071 outstanding as of September 30, 2014 and December 31, 2013, respectively | 2,008 | 1,724 |
Additional paid in capital | 923,679 | 733,753 |
Accumulated deficit | -879,005 | -586,365 |
Accumulated other comprehensive loss | -3,566 | -19,901 |
Treasury stock, at cost | -1,914 | -1,914 |
Total Magnum Hunter Resources Corporation shareholders’ equity | 355,485 | 441,580 |
Non-controlling interest | 15,913 | 9,150 |
Total shareholders’ equity | 371,398 | 450,730 |
Total liabilities and shareholders’ equity | 2,033,565 | 1,856,651 |
Series C Cumulative Perpetual Preferred Stock | ' | ' |
REDEEMABLE PREFERRED STOCK | ' | ' |
Redeemable preferred stock | 100,000 | 100,000 |
Series A Preferred Units | ' | ' |
REDEEMABLE PREFERRED STOCK | ' | ' |
Redeemable preferred stock | 151,685 | 136,675 |
Series D Cumulative Perpetual Preferred Stock | ' | ' |
SHAREHOLDERS’ EQUITY | ' | ' |
Preferred Stock | 221,244 | 221,244 |
Series E Cumulative Convertible Preferred Stock | ' | ' |
SHAREHOLDERS’ EQUITY | ' | ' |
Preferred Stock | 95,069 | 95,069 |
Treasury stock, at cost | ($2,030) | ($2,030) |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Accounts receivable, allowance for doubtful accounts | $702,000 | $196,000 |
Amortization of deferred financing costs | 18,461,000 | 9,735,000 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 200,812,979 | 172,409,023 |
Common stock, shares outstanding | 199,898,027 | 171,494,071 |
Treasury stock, shares | 914,952 | 914,952 |
Series C Cumulative Perpetual Preferred Stock | ' | ' |
Cumulative dividend rate (as a percent) | 10.25% | 10.25% |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 4,000,000 | 4,000,000 |
Preferred stock, shares outstanding | 4,000,000 | 4,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 |
Series A Preferred Units | ' | ' |
Cumulative dividend rate (as a percent) | 8.00% | 8.00% |
Preferred stock, shares issued | 10,592,540 | 9,885,048 |
Preferred stock, shares outstanding | 10,592,540 | 9,885,048 |
Preferred stock, liquidation preference | $271,410 | $200,620 |
Series D Cumulative Perpetual Preferred Stock | ' | ' |
Preferred stock, shares authorized | 5,750,000 | 5,750,000 |
Cumulative dividend rate for cumulative preferred stock (as a percent) | 8.00% | 8.00% |
Preferred stock, shares issued | 4,424,889 | 4,424,889 |
Preferred Stock, Shares Outstanding | 4,424,889 | 4,424,889 |
Preferred stock, liquidation preference (in dollars per share) | $50 | $50 |
Series E Cumulative Convertible Preferred Stock | ' | ' |
Preferred stock, shares authorized | 12,000 | 12,000 |
Cumulative dividend rate for cumulative preferred stock (as a percent) | 8.00% | 8.00% |
Preferred stock, shares issued | 3,803 | 3,803 |
Preferred Stock, Shares Outstanding | 3,722 | 3,722 |
Preferred stock, liquidation preference (in dollars per share) | $25,000 | $25,000 |
Treasury stock, shares | 81 | 81 |
UNAUDITED_CONSOLIDATED_STATEME
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
REVENUES AND OTHER | ' | ' | ' | ' | ||
Oil and natural gas sales | $62,510 | $59,061 | $222,247 | $156,772 | ||
Natural gas transportation, gathering, processing, and marketing | 10,285 | 12,545 | 90,461 | 42,854 | ||
Oilfield services | 5,986 | 6,423 | 17,561 | 13,728 | ||
Other revenue | 889 | 262 | 1,346 | 1,005 | ||
Total revenue | 79,670 | 78,291 | 331,615 | 214,359 | ||
OPERATING EXPENSES | ' | ' | ' | ' | ||
Lease operating expenses | 24,482 | 19,587 | 64,612 | 48,689 | ||
Severance taxes and marketing | 6,163 | 5,554 | 18,847 | 12,983 | ||
Exploration | 27,284 | 41,978 | 52,394 | 75,257 | ||
Impairment of proved oil and gas properties | 22,886 | 23,547 | 39,798 | 39,467 | ||
Natural gas transportation, gathering, processing, and marketing | 4,954 | 8,985 | 79,707 | 35,830 | ||
Oilfield services | 3,856 | 4,527 | 11,892 | 11,928 | ||
Depletion, depreciation, amortization and accretion | 36,370 | 29,127 | 101,733 | 80,141 | ||
Loss (gain) on sale of assets, net | -8,000 | 40,952 | -4,612 | 42,114 | ||
General and administrative | 19,251 | 23,908 | 56,027 | 63,673 | ||
Total operating expenses | 137,246 | 198,165 | 420,398 | 410,082 | ||
OPERATING LOSS | -57,576 | -119,874 | -88,783 | -195,723 | ||
OTHER INCOME (EXPENSE) | ' | ' | ' | ' | ||
Interest income | 40 | 35 | 126 | 217 | ||
Interest expense | -18,095 | -15,759 | -62,473 | -53,352 | ||
Loss on derivative contracts, net | -49,636 | -29,553 | -92,125 | -30,644 | ||
Other income | 2,078 | 12,056 | 2,102 | 14,544 | ||
Total other expense, net | -65,613 | -33,221 | -152,370 | -69,235 | ||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAX | -123,189 | -153,095 | -241,153 | -264,958 | ||
Income tax benefit | 0 | 582 | 0 | 47,227 | ||
LOSS FROM CONTINUING OPERATIONS, NET OF TAX | -123,189 | -152,513 | -241,153 | -217,731 | ||
Income (loss) from discontinued operations, net of tax | 0 | -75,573 | 4,561 | -62,453 | ||
Gain (loss) on disposal of discontinued operations, net of tax | -258 | -69,521 | -13,983 | 102,931 | ||
NET LOSS | -123,447 | -297,607 | -250,575 | -177,253 | ||
Net loss attributed to non-controlling interests | 2,764 | 725 | 3,653 | 1,614 | ||
LOSS ATTRIBUTABLE TO MAGNUM HUNTER RESOURCES CORPORATION | -120,683 | -296,882 | -246,922 | -175,639 | ||
Dividends on preferred stock | -15,492 | -14,417 | -45,718 | -42,034 | ||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | -136,175 | -311,299 | -292,640 | -217,673 | ||
Weighted average number of common shares outstanding, basic and diluted | 199,448,453 | 169,953,997 | 185,440,763 | 169,752,042 | ||
Loss from continuing operations per share, basic and diluted | ($0.68) | ($0.98) | ($1.53) | ($1.52) | ||
Income (loss) from discontinued operations per share, basic and diluted | $0 | ($0.85) | ($0.05) | $0.24 | ||
NET LOSS PER COMMON SHARE, BASIC AND DILUTED | ($0.68) | ($1.83) | ($1.58) | ($1.28) | ||
Loss from continuing operations, net of tax | -120,425 | -151,788 | -237,500 | -216,117 | ||
Income (loss) from discontinued operations, net of tax | -258 | [1] | -145,094 | -9,422 | [1] | 40,478 |
Net loss | ($120,683) | ($296,882) | ($246,922) | ($175,639) | ||
[1] | Gain (loss) on disposal of discontinued operations related to WHI Canada is included in the Corporate Unallocated segment, as the Company sold 100% of its ownership interest in the entity. |
UNAUDITED_CONSOLIDATED_STATEME1
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($123,447) | ($297,607) | ($250,575) | ($177,253) |
OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Foreign currency translation gain (loss) | 0 | 3,856 | -1,218 | -7,943 |
Unrealized gain (loss) on available for sale investments | -2,583 | 3,735 | -3,188 | 8,184 |
Amounts reclassified from accumulated other comprehensive income | 0 | -8,262 | 0 | -8,262 |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 0 | 0 | 20,741 | 0 |
Total other comprehensive income (loss) | -2,583 | -671 | 16,335 | -8,021 |
COMPREHENSIVE LOSS | -126,030 | -298,278 | -234,240 | -185,274 |
Comprehensive loss attributable to non-controlling interests | 2,764 | 725 | 3,653 | 1,614 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO MAGNUM HUNTER RESOURCES CORPORATION | ($123,266) | ($297,553) | ($230,587) | ($183,660) |
UNAUDITED_CONSOLIDATED_STATEME2
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (USD $) | Total | Common Stock | Additional Paid in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (loss) | Treasury Stock | Non - controlling Interest | Series D Preferred Stock | Series E Preferred Stock | Series E Preferred Stock | Eureka Hunter Holdings, LLC | Eureka Hunter Holdings, LLC |
In Thousands, except Share data, unless otherwise specified | Preferred Stock | Preferred Stock | Series A Common Stock | Series A Common Stock | ||||||||
Non - controlling Interest | ||||||||||||
BALANCE at Dec. 31, 2013 | $450,730 | $1,724 | $733,753 | ($586,365) | ($19,901) | ($3,944) | $9,150 | $221,244 | ' | $95,069 | ' | ' |
BALANCE (in shares) at Dec. 31, 2013 | ' | 172,409,000 | ' | ' | ' | ' | ' | 4,425,000 | ' | 4,000 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation (in shares) | ' | 71,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation | 5,674 | 1 | 5,673 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued, During Period, Shares, 401k Matching Contribution | ' | 249,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, 401k Matching Contribution | 1,593 | 2 | 1,591 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of common stock (in shares) | ' | 25,729,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of common stock | 178,432 | 257 | 178,175 | ' | ' | ' | ' | ' | ' | ' | 8,180 | 8,180 |
Dividends on preferred stock | -45,718 | ' | ' | -45,718 | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued upon exercise of common stock options (in shares) | ' | 2,355,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued upon exercise of common stock options | ' | 24 | 9,598 | ' | ' | ' | ' | ' | 9,622 | ' | ' | ' |
Repurchase of non-controlling interest | -2,875 | ' | -5,111 | ' | ' | ' | 2,236 | ' | ' | ' | ' | ' |
Net loss | -250,575 | ' | ' | -246,922 | ' | ' | -3,653 | ' | ' | ' | ' | ' |
Foreign currency translation gain (loss) | -1,218 | ' | ' | ' | -1,218 | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on available for sale securities | -3,188 | ' | ' | ' | -3,188 | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 20,741 | ' | ' | ' | 20,741 | ' | ' | ' | ' | ' | ' | ' |
BALANCE at Sep. 30, 2014 | $371,398 | $2,008 | $923,679 | ($879,005) | ($3,566) | ($3,944) | $15,913 | $221,244 | ' | $95,069 | ' | ' |
BALANCE (in shares) at Sep. 30, 2014 | ' | 200,813,000 | ' | ' | ' | ' | ' | 4,425,000 | ' | 4,000 | ' | ' |
UNAUDITED_CONSOLIDATED_STATEME3
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net loss | ($250,575) | ($177,253) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depletion, depreciation, amortization and accretion | 101,733 | 107,624 |
Exploration | 51,306 | 91,533 |
Impairment of proved oil and gas properties | 39,798 | 88,504 |
Impairment of other operating assets | 666 | 263 |
Share-based compensation | 7,267 | 11,834 |
Cash paid for plugging wells | -26 | -14 |
Loss (gain) on sale of assets | 9,371 | -50,063 |
Unrealized loss on derivative contracts | 88,051 | 23,757 |
Unrealized loss on investments | 504 | 1,043 |
Amortization and write-off of deferred financing costs and discount on Senior Notes included in interest expense | 8,809 | 3,660 |
Deferred tax benefit | ' | -54,465 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 20,742 | -703 |
Inventory | 4,681 | 77 |
Prepaid expenses and other current assets | -2,766 | -3,095 |
Accounts payable | -50,851 | 23,303 |
Revenue payable | -2,336 | -3,027 |
Accrued liabilities | -12,819 | 16,219 |
Net cash provided by operating activities | 13,555 | 79,197 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Capital expenditures and advances | -363,304 | -418,245 |
Change in restricted cash | 5,000 | 1,500 |
Change in deposits and other long-term assets | 310 | 571 |
Proceeds from sales of assets | 110,690 | 460,997 |
Net cash provided by (used in) investing activities | -247,304 | 44,823 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Net proceeds from sale of common shares | 178,432 | 0 |
Net proceeds from sale of preferred shares | ' | 10,181 |
Equity issuance costs | 0 | -109 |
Proceeds from sale of Eureka Hunter Holdings Series A Preferred Units | 11,956 | 27,440 |
Proceeds from sale of Eureka Hunter Holdings Series A Common Units | 8,180 | 0 |
Repurchase of non-controlling interest | -2,875 | 0 |
Proceeds from exercise of warrants and options | 9,622 | 1,932 |
Preferred stock dividend | -36,754 | -29,911 |
Repayments of debt | -208,298 | -379,504 |
Proceeds from borrowings on debt | 279,592 | 245,991 |
Deferred financing costs | -6,228 | -1,184 |
Change in other long-term liabilities | 1,032 | -1,103 |
Net cash provided by (used in) financing activities | 234,659 | -126,267 |
Effect of changes in exchange rate on cash | 44 | -93 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 954 | -2,340 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 41,713 | 57,623 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $42,667 | $55,283 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
GENERAL | ' |
NOTE 1 - GENERAL | |
Organization and Nature of Operations | |
Magnum Hunter Resources Corporation, a Delaware corporation, operating directly and indirectly through its subsidiaries (together with its subsidiaries, the "Company" or "Magnum Hunter"), is a Houston, Texas based independent exploration and production company engaged in the United States in the acquisition and development of producing properties and undeveloped acreage and the production of oil and natural gas, along with certain midstream and oilfield services activities. | |
Presentation of Consolidated Financial Statements | |
The accompanying unaudited interim consolidated financial statements of Magnum Hunter are presented in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The preparation of these consolidated financial statements in accordance 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 and the reported amounts of revenue and expenses during reporting periods. Actual results could differ materially from those estimates. | |
In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The year-end balance sheet data were derived from audited financial statements, but do not include all disclosures required by GAAP. | |
Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with GAAP that would substantially duplicate the disclosures contained in the audited consolidated financial statements as reported in the Company's Annual Report on Form 10-K have been condensed or omitted. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, as amended. | |
Non-Controlling Interest in Consolidated Subsidiaries | |
The Company has consolidated Eureka Hunter Holdings, LLC ("Eureka Hunter Holdings") in which it owned 57.5% as of September 30, 2014 and 56.4% as of December 31, 2013. Eureka Hunter Holdings owns, directly or indirectly, 100% of the equity interests of Eureka Hunter Pipeline, LLC ("Eureka Hunter Pipeline"), TransTex Hunter, LLC ("TransTex Hunter"), and Eureka Hunter Land, LLC. | |
On December 30, 2013, PRC Williston, LLC ("PRC Williston"), in which the Company owned 87.5% as of December 31, 2013, sold substantially all of its assets. On July 24, 2014, the Company executed a settlement and release agreement with Drawbridge Special Opportunities Fund LP and Fortress Value Recovery Fund I LLC f/k/a D.B. Zwirn Special Opportunities Fund, L.P. As a result of this settlement agreement, the Company now owns 100% of the equity interests in PRC Williston and has all rights and claims to its remaining assets and liabilities, which are not significant. Consequently, there is no longer any non-controlling interest in PRC Williston's equity reflected in the consolidated financial statements as of September 30, 2014. | |
The consolidated financial statements also reflect the interests of our wholly-owned subsidiary Magnum Hunter Production, Inc. ("MHP") in various managed drilling partnerships. The Company accounts for the interests in these managed drilling partnerships using the proportionate consolidation method. | |
Reclassification of Prior-Period Balances | |
Certain prior period balances have been reclassified to correspond with current-year presentation. As a result of the Company's decision in September 2014 to withdraw its plan to divest of its 100% equity interest in MHP and cease all marketing efforts, the results of operations of MHP, which had previously been reported as a component of discontinued operations, have been reclassified to continuing operations for all periods presented, and all assets and liabilities of MHP that were previously reported as assets and liabilities held for sale in our consolidated balance sheet have been reclassified to assets and liabilities held for use as of September 30, 2014. See "Note 2 - Divestitures and Discontinued Operations". | |
Regulated Activities | |
Energy Hunter Securities, Inc. ("Energy Hunter Securities") is a 100%-owned subsidiary and is a registered broker-dealer and member of the Financial Industry Regulatory Authority ("FINRA"). Among other regulatory requirements, it is subject to the net capital provisions of Rule 15c3-1 under the Securities Exchange Act of 1934, as amended. Because it does not hold customer funds or securities or owe money or securities to customers, Energy Hunter Securities is required to maintain minimum net capital equal to the greater of $5,000 or 6.67% of its aggregate indebtedness. As of September 30, 2014 and December 31, 2013, Energy Hunter Securities had net capital of $83,204 and $77,953, respectively, and aggregate indebtedness of $8,494 and $16,657, respectively. | |
During the third quarter of 2014, the Company initiated a process to wind down Energy Hunter Securities. This process included making an initial filing with FINRA and will include an audit of Energy Hunter Securities by FINRA which is anticipated to commence during the fourth quarter of 2014. On September 26, 2014, Energy Hunter Securities filed a Uniform Request for Withdrawal From Broker-Dealer Registration with the Securities and Exchange Commission ("SEC"). As of September 30, 2014, Energy Hunter Securities' request was still pending approval from FINRA and the SEC. | |
Sentra Corporation, a 100%-owned subsidiary, owns and operates distribution systems for retail sales of natural gas in south central Kentucky. Sentra Corporation's gas distribution billing rates are regulated by the Kentucky Public Service Commission based on recovery of purchased gas costs. The Company accounts for its operations based on the provisions of the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") Subtopic 980-605, Regulated Operations-Revenue Recognition, which requires covered entities to record regulatory assets and liabilities resulting from actions of regulators. During the three and nine months ended September 30, 2014, the Company had gas transmission, compression and processing revenue, which included gas utility sales from Sentra Corporation's regulated operations aggregating $27,656 and $473,555, respectively. During the three and nine months ended September 30, 2013, the Company had revenues of $215,618 related to Sentra Corporation's regulated operations. | |
Recently Issued Accounting Standards | |
Accounting standards-setting organizations frequently issue new or revised accounting rules. The Company regularly reviews all new pronouncements to determine their impact, if any, on its financial statements. | |
In March 2013, the FASB issued Accounting Standards Update ("ASU") 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, to provide guidance on whether to release cumulative translation adjustments ("CTA") upon certain derecognition events. ASU 2013-05 requires a parent company to apply the guidance in ASC Subtopic 830-30 when an entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Consequently, the CTA related to a foreign entity is released into net income only if the transaction results in complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets resided; otherwise, no portion of the CTA is released. The Company adopted this pronouncement prospectively on January 1, 2014. The adoption of this updated standard did not have a material impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB ASC Topic 740, Income Taxes ("FASB ASC Topic 740"). This update clarified that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The Company adopted this ASU prospectively on January 1, 2014. The adoption of this accounting standard update did not have a material impact on the Company's consolidated financial statements or its financial statement disclosures. | |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 updates the requirements for reporting discontinued operations in ASC Subtopic 205-20, Presentation of Financial Statements - Discontinued Operations, by requiring classification as discontinued operations of a component of an entity or a group of components of an entity if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when either 1) the component or group of components of an entity meet the criteria to be classified as held for sale, 2) are disposed of by sale, or 3) are disposed of other than by sale (e.g. abandonment or a distribution to owners in a spinoff). The amendments in this update expand the disclosure requirements related to discontinued operations and disposals of individually significant components that do not qualify for discontinued operations presentation in the financial statements. This ASU is effective prospectively for all disposals (or classification as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and financial statement disclosures. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of the revised standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 requires entities to disclose both quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. This amendment is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those reporting periods. The guidance allows for either a "full retrospective" adoption or a "modified retrospective" adoption, however early application is not permitted. The Company is currently evaluating the adoption methods and the impact of this ASU on its consolidated financial statements and financial statement disclosures. | |
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation: Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 clarifies that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition. An entity should apply existing guidance in ASC Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. This amendment is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and financial statement disclosures. | |
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This update requires an entity’s management to evaluate for each annual and interim reporting period whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. The update further requires certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, and requires an express statement and other disclosures when substantial doubt is not alleviated. This amendment is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and financial statement disclosures. |
DIVESTITURES_AND_DISCONTINUED_
DIVESTITURES AND DISCONTINUED OPERATIONS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
DIVESTITURES AND DISCONTINUED OPERATIONS | ' | ||||||||||||||||
NOTE 2 - DIVESTITURES AND DISCONTINUED OPERATIONS | |||||||||||||||||
Assets Held for Sale | |||||||||||||||||
On September 17, 2014, Bakken Hunter, LLC, a wholly-owned subsidiary of the Company ("Bakken Hunter") entered into a letter of intent to sell certain non-operated working interests in oil and natural gas properties located in Divide County, North Dakota for cash consideration of approximately $84.8 million, subject to customary purchase price adjustments. Additionally, on September 23, 2014 Triad Hunter, LLC, a wholly-owned subsidiary of the Company ("Triad Hunter") signed two agreements to sell certain non-core working interests in oil and gas properties located primarily in Calhoun and Roane Counties, West Virginia for cash consideration of $1.2 million, subject to customary purchase price adjustments. The sale of interests in the North Dakota oil and natural gas properties closed in October 2014. The sale of interests in the West Virginia oil and natural gas properties closed in November 2014. The Company has classified the associated assets and liabilities contemplated in these agreements as assets and liabilities held for sale in the consolidated balance sheet as of September 30, 2014. | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
In September 2013, the Company adopted a plan to divest all of its interests in (i) MHP, whose oil and natural gas operations are located primarily in the Southern Appalachian Basin in Kentucky and Tennessee, and (ii) the Canadian operations of Williston Hunter Canada, Inc. ("WHI Canada"), which was a wholly-owned subsidiary of the Company. | |||||||||||||||||
Planned Divestiture of Magnum Hunter Production | |||||||||||||||||
In connection with the Company’s adoption of a plan to divest of its interest in MHP in September 2013, the Company determined that the planned divestiture met the assets held for sale criteria and the criteria for classification as a discontinued operation. The Company classified the associated assets and liabilities of MHP as assets and liabilities held for sale in the consolidated balance sheet as of September 30, 2013 and reflected the results of MHP’s operations as discontinued operations in the consolidated statements of operations for the three and nine months ended September 2013 and 2012. The Company determined at each interim and annual period subsequent to September 30, 2013, and until September 30, 2014, that the planned divestiture continued to meet the criteria for classification as a discontinued operation based upon its ongoing marketing activities. Consequently, the Company continued to report the results of operations for MHP, including the results of operations of MHP for comparable periods presented from a preceding year, as a component of discontinued operations in the Company's consolidated financial statements for each interim and annual period from September 30, 2013 through June 30, 2014, and reported the assets and liabilities of MHP as assets and liabilities held for sale on the corresponding consolidated balance sheets. | |||||||||||||||||
During the year ended December 31, 2013, the Company recorded an impairment expense of $18.5 million, net of tax, to record MHP at the estimated selling price less costs to sell. Based upon additional information on estimated selling prices obtained through active marketing of the assets, the Company recorded an additional impairment expense during the quarter ended March 31, 2014 of $18.6 million, net of tax, to reflect the net assets at their estimated selling prices, less costs to sell. The Company did not record any impairment for MHP for the three month period ended June 30, 2014. | |||||||||||||||||
Effective September 2014, the Company withdrew its plan to divest MHP to further evaluate the oil and natural gas exploration and development upside opportunities underlying the acreage the Company has access to through MHP's leasehold and mineral interest rights. As a result of this decision the Company ceased all marketing activities for MHP, and consequently MHP no longer met the criteria for classification as a discontinued operation as of September 30, 2014. | |||||||||||||||||
The Company has reclassified the results of MHP’s operations from discontinued operations to continuing operations for all periods presented in these interim consolidated financial statements, and MHP’s assets and liabilities have been reclassified out of assets and liabilities held for sale and included with the Company’s other assets held and used as of September 30, 2014. | |||||||||||||||||
As of September 30, 2014, the Company has measured the carrying value of MHP’s individual long-lived assets previously classified as held for sale at the lesser of (i) their carrying amount before each asset was classified as held for sale, adjusted for any depreciation or amortization expense that would have been recognized had it been continuously classified as held and used, and (ii) their fair value at the date of the subsequent decision not to sell. As a result of this assessment, the Company recorded additional impairments of $1.9 million to the carrying amount of MHP’s unproved oil and natural properties and $17.0 million to the carrying amount of MHP’s proved oil and natural gas properties, which were recorded in exploration expense and impairment of proved oil and gas properties, respectively. In addition, the Company recorded depreciation expense of $1.7 million related to long-lived assets, whose fair value exceeded book value, adjusted for depreciation expense, as of September 30, 2014. In total, the Company recorded approximately $67.6 million of impairment related to MHP from September 30, 2013 through September 30, 2014. | |||||||||||||||||
Williston Hunter Canada Asset Sale | |||||||||||||||||
On April 10, 2014, WHI Canada closed on the sale of certain oil and natural gas properties and assets located in Alberta, Canada for cash consideration of CAD $9.5 million in cash (approximately U.S. $8.7 million at the exchange rate as of the close of business on April 10, 2014). The effective date of the sale was January 1, 2014. The Company recognized a gain of $6.1 million which is recorded in gain (loss) on disposal of discontinued operations. | |||||||||||||||||
Sale of Williston Hunter Canada | |||||||||||||||||
On May 12, 2014, the Company closed on the sale of 100% of its ownership interest in the Company's Canadian subsidiary, WHI Canada, whose assets consisted primarily of oil and natural gas properties located in the Tableland Field in Saskatchewan, Canada, for a purchase price of CAD $75.0 million (approximately U.S. $68.8 million at the exchange rate as of the close of business on May 12, 2014), prior to customary purchase price adjustments, with an effective date of March 1, 2014, of which CAD $18.4 million was placed in escrow pending final approval from the Canadian Revenue Authority. The Company received the cash held in escrow in July 2014. The Company recognized a loss of $12.8 million which is recorded in gain (loss) on disposal of discontinued operations. The loss on disposal of WHI Canada for the nine months ended September 30, 2014 includes $20.7 million in foreign currency translation adjustment which was reclassified out of accumulated other comprehensive income upon closing on the sale of our foreign operation. | |||||||||||||||||
The following shows the Company's assets and liabilities held for sale at September 30, 2014 and December 31, 2013: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Accounts receivable | $ | — | $ | 4,362 | |||||||||||||
Other current assets | — | 1,004 | |||||||||||||||
Oil and natural gas properties, net | 86,362 | 150,770 | |||||||||||||||
Gas transportation, gathering, and processing equipment and other, net | — | 11,721 | |||||||||||||||
Other long-term assets | — | 196 | |||||||||||||||
Total assets held for sale | $ | 86,362 | $ | 168,053 | |||||||||||||
Accounts payable | $ | — | $ | 7,292 | |||||||||||||
Accrued liabilities and other liabilities | — | 5,573 | |||||||||||||||
Asset retirement obligations | 1,619 | 8,678 | |||||||||||||||
Other long-term liabilities | — | 5,845 | |||||||||||||||
Total liabilities held for sale | $ | 1,619 | $ | 27,388 | |||||||||||||
Sale of Eagle Ford Hunter | |||||||||||||||||
On April 24, 2013, the Company closed on the sale of all of its ownership interest in its wholly-owned subsidiary, Eagle Ford Hunter, Inc. ("Eagle Ford Hunter") to an affiliate of Penn Virginia Corporation for a total purchase price of approximately $422.1 million paid to the Company in the form of $379.8 million in cash (after estimated customary initial purchase price adjustments) and 10.0 million shares of common stock of Penn Virginia valued at approximately $42.3 million (based on the closing market price of the stock of $4.23 as of April 24, 2013). The effective date of the sale was January 1, 2013. At the date of closing, the Company initially recognized a preliminary gain on the sale of $172.5 million, net of tax, pending final working capital adjustments, which is recorded in gain (loss) on disposal of discontinued operations in the consolidated statements of operations. | |||||||||||||||||
In the months that followed closing, the Company and Penn Virginia were unable to agree upon the final settlement of the working capital adjustments as called for in the purchase and sale agreement and the disagreement was subsequently submitted to arbitration. The determination by the arbitrator was received by the Company on July 25, 2014 and resulted in a downward adjustment of the cash portion of the purchase price of $33.7 million plus accrued interest of $1.3 million. This liability was settled in cash on July 31, 2014. The Company had previously reserved and recognized substantially all of this obligation in its financial statements as of December 31, 2013. For the three and nine months ended September 30, 2013, the Company recorded a downward adjustment to the gain on sale of Eagle Ford Hunter of $13.9 million. For the three and nine months ended September 30, 2014, the Company recorded a downward adjustment to the gain on sale of Eagle Ford Hunter of $0.3 million and $7.3 million, respectively. | |||||||||||||||||
The Company included the results of operations of WHI Canada through May 12, 2014 and Eagle Ford Hunter through April 24, 2013 in discontinued operations. The following presents our discontinued operations. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Revenues | $ | — | $ | 7,943 | $ | 8,533 | $ | 62,429 | |||||||||
Expenses | — | (93,755 | ) | (3,976 | ) | (128,464 | ) | ||||||||||
Other income | — | 59 | 4 | 81 | |||||||||||||
Income tax benefit | — | 10,180 | — | 3,501 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | (75,573 | ) | 4,561 | (62,453 | ) | |||||||||||
Gain (loss) on disposal of discontinued operations, net of taxes | (258 | ) | (69,521 | ) | (13,983 | ) | 102,931 | ||||||||||
Income (loss) from discontinued operations, net of taxes | $ | (258 | ) | $ | (145,094 | ) | $ | (9,422 | ) | $ | 40,478 | ||||||
Other Divestitures | |||||||||||||||||
Sale of Certain Other North Dakota Assets | |||||||||||||||||
On September 30, 2014, Bakken Hunter closed on the sale of certain non-operated working interests in oil and natural gas properties located in Divide County, North Dakota for cash consideration of $23.5 million, subject to customary purchase price adjustments. The effective date of the sale was April 1, 2014. The Company recognized a gain on the sale of $8.2 million. | |||||||||||||||||
Sale of Certain Other Eagle Ford Shale Assets | |||||||||||||||||
On January 28, 2014, the Company, through its wholly-owned subsidiary Shale Hunter LLC ("Shale Hunter") and certain other affiliates, closed on the sale of certain of their oil and natural gas properties and related assets located in the Eagle Ford Shale in South Texas to New Standard Energy Texas LLC ("NSE Texas"), a subsidiary of New Standard Energy Limited ("NSE"), an Australian Securities Exchange-listed Australian company. | |||||||||||||||||
The assets sold consisted primarily of interests in leasehold acreage located in Atascosa County, Texas and working interests in five horizontal wells, of which four were operated by the Company. The effective date of the sale was December 1, 2013. As consideration for the assets sold, the Company received aggregate purchase price consideration of $15.5 million in cash, after customary purchase price adjustments, and 65,650,000 ordinary shares of NSE with a fair value of approximately $9.4 million at January 28, 2014 (based on the closing market price of $0.14 per share on January 28, 2014). These investment holdings represented approximately 17% of the total shares outstanding of NSE as of the closing date, and have been designated as available-for-sale securities, which are recorded at fair value of approximately $5.7 million and included in investments in the consolidated balance sheet as of September 30, 2014. The Company recognized a loss on the sale of the Shale Hunter assets of $4.5 million during the first quarter of 2014. | |||||||||||||||||
In connection with the closing of the sale, Shale Hunter and NSE Texas entered into a transition services agreement which provides that, during a specified transition period ending on July 28, 2015 unless otherwise extended or modified, Shale Hunter will provide NSE Texas with certain transitional services relating to the assets sold for which it is receiving a monthly fee. | |||||||||||||||||
Upon, and as a result of, the closing of the sale on January 28, 2014, the borrowing base under the Company’s asset-based, senior secured revolving credit facility was automatically reduced by $10.0 million as discussed in "Note 10 - Debt". |
OIL_NATURAL_GAS_SALES
OIL & NATURAL GAS SALES | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Oil & Natural Gas Sales | ' | ||||||||||||||||
NOTE 3 - OIL & NATURAL GAS SALES | |||||||||||||||||
During the three and nine months ended September 30, 2014 and 2013, the Company recognized sales from oil, natural gas, and natural gas liquids ("NGL") as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Oil | $ | 34,495 | $ | 40,471 | $ | 111,354 | $ | 103,545 | |||||||||
Natural gas | 18,247 | 12,417 | 74,031 | 41,145 | |||||||||||||
NGL | 9,768 | 6,173 | 36,862 | 12,082 | |||||||||||||
Total oil and natural gas sales | $ | 62,510 | $ | 59,061 | $ | 222,247 | $ | 156,772 | |||||||||
PROPERTY_PLANT_EQUIPMENT_Notes
PROPERTY, PLANT, & EQUIPMENT (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||
Property, Plant, & Equipment | ' | |||||||||||||||
NOTE 4 - PROPERTY, PLANT, & EQUIPMENT | ||||||||||||||||
Asset Acquisitions | ||||||||||||||||
On June 18, 2014, the Company entered into an Asset Purchase Agreement ("Ormet Asset Purchase Agreement") with Ormet Corporation for the purchase of certain mineral interests in approximately 1,700 net acres, consisting of 1,375 net acres in Monroe County, Ohio and 325 net acres in Wetzel County, West Virginia. Prior to the execution of the Ormet Asset Purchase Agreement, the Company held leasehold interests in a portion of the subject acreage, which only included leasehold rights to the Marcellus zone, and carried a 12.5% royalty on production to Ormet Corporation. On July 24, 2014, the Company closed on the purchase of the sub-surface mineral interests, including any royalty interests, in the underlying acreage, giving the Company an approximate 100% net revenue interest in and rights to oil, natural gas, and other minerals located in or under and that may be produced from the property, at any depth. The total purchase price for this transaction was approximately $22.7 million cash. | ||||||||||||||||
Oil and Natural Gas Properties | ||||||||||||||||
The following sets forth the net capitalized costs under the successful efforts method for oil and natural gas properties as of: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Mineral interests in properties: | ||||||||||||||||
Unproved mineral rights and leasehold costs | $ | 510,296 | $ | 469,337 | ||||||||||||
Proved mineral rights and leasehold costs | 282,150 | 336,357 | ||||||||||||||
Wells and related equipment and facilities | 735,947 | 536,023 | ||||||||||||||
Advances to operators for wells in progress | 2,508 | 13,571 | ||||||||||||||
Total costs | 1,530,901 | 1,355,288 | ||||||||||||||
Less accumulated depletion, depreciation, and amortization | (208,495 | ) | (130,629 | ) | ||||||||||||
Net capitalized costs | $ | 1,322,406 | $ | 1,224,659 | ||||||||||||
Proved oil and natural gas properties are reviewed for impairment on a field-by-field basis bi-annually or when events and circumstances indicate a possible decline in the recoverability of the carrying amount of such property. Impairments of proved property of $22.9 million and $39.8 million were recorded during the three and nine months ended September 30, 2014 and $23.5 million and $39.5 million for the three and nine months ended September 30, 2013, respectively. For the three and nine months ended September 30, 2014, impairment of proved oil and gas properties included write-downs to fair value of MHP's proved oil and natural gas property of $17.1 million and $33.8 million, respectively. The Company recognized write-downs to fair value of MHP's proved oil and natural gas property of $16.4 million for the three and nine months ended September 30, 2013. | ||||||||||||||||
Depletion, depreciation, and amortization expense for proved oil and natural gas properties was $28.0 million and $81.9 million for the three and nine months ended September 30, 2014 and $23.6 million and $58.0 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
Exploration | ||||||||||||||||
Exploration expense consists primarily of abandonment charges and impairment expense for capitalized leasehold costs associated with unproved properties for which the Company has no further exploration or development plans, exploratory dry holes, and geological and geophysical costs. | ||||||||||||||||
During the three and nine months ended September 30, 2014 and 2013, the Company recognized exploration expense as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Leasehold impairments | $ | 26,922 | $ | 41,624 | $ | 51,305 | $ | 74,249 | ||||||||
Geological and geophysical | 362 | 354 | 1,089 | 1,008 | ||||||||||||
Total exploration expense | $ | 27,284 | $ | 41,978 | $ | 52,394 | $ | 75,257 | ||||||||
Leasehold impairment expense recorded by the Company during the three and nine months ended September 30, 2014 consisted of $17.8 million and $37.8 million, respectively, in the U.S. upstream segment related to leases in the Williston Basin and $13.5 million during the nine months ended September 30, 2014 in the U.S. upstream segment related to leases in the Appalachian Basin. Leasehold impairment expense of $38.8 million and $71.5 million during the three and nine months ended September 30, 2013 primarily related to leases in the Williston Basin. Impairments of leases in the Williston and Appalachian Basins for all periods presented related to leases that expired undrilled during the period or are expected to expire and that the Company does not plan to develop or extend. | ||||||||||||||||
The Company recognized $1.9 million and $3.8 million in leasehold impairment expense related to fair value write-downs of MHP for the three and nine months ended September 30, 2014. For the same periods in 2013, leasehold impairment expense included $1.9 million in write-downs to fair value related to MHP. | ||||||||||||||||
Capitalized Costs Greater Than a Year | ||||||||||||||||
As of September 30, 2014, the Company had suspended exploratory well costs capitalized for periods greater than one year related to the Farley pad in Washington County, Ohio and the Farley #1305 H well. The Farley pad was constructed to drill multiple horizontal wells into a previously untested zone in the Utica formation. The Company spud the Farley #1305 H in April of 2013, and experienced well pressure instability during the fracture stimulation stage of completion. Further fracture stimulation and evaluation of this well will depend on the outcome of the drilling and completion of the Farley #1306 H and #1304 H wells, which were drilled in 2014 and are expected to be fracture stimulated and tested in 2015 upon completion of a new natural gas pipeline. Aggregate cost incurred through September 30, 2014 for the Farley pad and the Farley #1305 H well were $1.1 million and $13.8 million, respectively. | ||||||||||||||||
Gas Transportation, Gathering, and Processing Equipment and Other | ||||||||||||||||
The historical cost of gas transportation, gathering, and processing equipment and other property, presented on a gross basis with accumulated depreciation, as of September 30, 2014 and December 31, 2013 is summarized as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Gas transportation, gathering and processing equipment and other | $ | 516,258 | $ | 315,642 | ||||||||||||
Less accumulated depreciation | (47,350 | ) | (26,222 | ) | ||||||||||||
Net capitalized costs | $ | 468,908 | $ | 289,420 | ||||||||||||
Depreciation expense for gas transportation, gathering, and processing equipment and other property was $6.5 million and $16.1 million for the three and nine months ended September 30, 2014, respectively, and $4.3 million and $11.1 million for the three and nine months ended September 30, 2013, respectively. For the three and nine months ended September 30, 2014, depreciation expense included $1.7 million in depreciation recognized to adjust certain assets of MHP to their adjusted carrying value as if they had been held and used since their initial classification as assets held for sale through the date the Company withdrew their plan to divest of MHP. | ||||||||||||||||
The Company sells and leases gas treating and processing equipment, classified as gas transportation, gathering, and processing equipment and other property and included in the table above, much of which is leased to third party operators for treating gas at the wellhead. The leases generally have a term of three years or less. The equipment under leases in place as of September 30, 2014 had a net carrying value of $12.8 million, and the terms of such leases provide for future lease payments to the Company extending up to August 2016. As of September 30, 2014, primarily all the leases to third parties were non-cancelable, with future minimum aggregate base rentals payable to the Company of $2.9 million over the twelve months ending September 30, 2015 and $0.5 million, in the aggregate, thereafter. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||
Intangible Assets | ' | ||||||||
NOTE 5 - INTANGIBLE ASSETS | |||||||||
Intangible assets consist primarily of gas gathering and processing contracts and customer relationships. The following table summarizes the Company's net intangible assets as of September 30, 2014 and December 31, 2013: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Customer relationships | $ | 5,434 | $ | 5,434 | |||||
Trademark | 859 | 859 | |||||||
Existing contracts | 4,199 | 4,199 | |||||||
Total intangible assets | 10,492 | 10,492 | |||||||
Less: accumulated amortization | (5,467 | ) | (3,962 | ) | |||||
Intangible assets, net of accumulated amortization | $ | 5,025 | $ | 6,530 | |||||
Amortization expense for intangible assets was $502,000 and $1.5 million for the three and nine months ended September 30, 2014 and $569,000 and $1.9 million for the three and nine months ended September 30, 2013, respectively. | |||||||||
The Company performed its annual impairment test of goodwill as of April 1, 2014. As a result of the Company's analysis no impairment of goodwill was indicated. |
INVENTORY
INVENTORY | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory | ' | ||||||||
NOTE 6 - INVENTORY | |||||||||
The Company’s materials and supplies inventory is primarily comprised of frac sand used in the completion process of hydraulic fracturing. As of September 30, 2014 and December 31, 2013, the frac sand inventory is anticipated to be used in its entirety within the coming year, and is classified in current assets along with other inventory. | |||||||||
The following table shows the composition of the Company's inventory as of: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Materials and supplies | $ | 2,228 | $ | 6,790 | |||||
Commodities | 811 | 368 | |||||||
Inventory | $ | 3,039 | $ | 7,158 | |||||
ASSET_RETIREMENT_OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||
ASSET RETIREMENT OBLIGATIONS | ' | ||||||
NOTE 7 - ASSET RETIREMENT OBLIGATIONS | |||||||
The following table summarizes the Company’s asset retirement obligation ("ARO") activities during the nine-month period ended September 30, 2014 and for the year ended December 31, 2013: | |||||||
30-Sep-14 | 31-Dec-13 | ||||||
(in thousands) | |||||||
Asset retirement obligation at beginning of period | $ | 16,216 | $ | 30,680 | |||
Assumed in acquisitions | — | 17 | |||||
Liabilities incurred | 218 | 253 | |||||
Liabilities settled | (26 | ) | (98 | ) | |||
Liabilities sold | (596 | ) | (7,614 | ) | |||
Accretion expense | 1,731 | 2,264 | |||||
Revisions in estimated liabilities (1) | 2,625 | 1,935 | |||||
Reclassified as liabilities associated with assets held for sale | (1,619 | ) | (11,148 | ) | |||
Reclassified from liabilities associated with assets held for sale | 8,109 | — | |||||
Effect of foreign currency translation | — | (73 | ) | ||||
Asset retirement obligation at end of period | 26,658 | 16,216 | |||||
Less: current portion (included in other liabilities) | (1,482 | ) | (53 | ) | |||
Asset retirement obligation at end of period | $ | 25,176 | $ | 16,163 | |||
________________________________ | |||||||
(1) Revisions in estimated liabilities during 2014 relate to a change in assumptions used with respect to certain wells in the Appalachian Basin in Ohio and West Virginia. Approximately $1.5 million of the revisions in estimated liabilities during 2013 is related to a change in assumptions used with respect to certain wells in the Williston Basin in North Dakota. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||
NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||
Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standards also establish a framework for measuring fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels: | |||||||||||||||||||
• | Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets | ||||||||||||||||||
• | Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs or significant value drivers are observable | ||||||||||||||||||
• | Level 3 — Significant inputs to the valuation model are unobservable | ||||||||||||||||||
Transfers between Levels 1 and 2 occur at the end of the reporting period in which it is determined that the observability of significant inputs has increased or decreased. There were no transfers between levels of the fair value hierarchy during 2014 and 2013. In January 2014, the Company acquired common shares of NSE in partial consideration of an asset sale. The significant inputs used in valuing the NSE common shares, which have a quoted market price in an active market, were designated as Level 1 as of September 30, 2014. | |||||||||||||||||||
The Company used the following fair value measurements for certain of the Company's assets and liabilities at September 30, 2014 and December 31, 2013: | |||||||||||||||||||
Level 1 Classification: | |||||||||||||||||||
Available for Sale Securities | |||||||||||||||||||
At September 30, 2014 and December 31, 2013, the Company held common and preferred stock of publicly traded companies with quoted prices in an active market. Accordingly, the fair market value measurements of these securities have been classified as Level 1. | |||||||||||||||||||
Level 2 Classification: | |||||||||||||||||||
Commodity Derivative Instruments | |||||||||||||||||||
The Company does not designate its derivative instruments as hedges and therefore does not apply hedge accounting. The estimated fair value amounts of the Company’s commodity derivative instruments have been determined at discrete points in time based on relevant market information which resulted in the Company classifying such derivatives as Level 2. Although the Company’s commodity derivative instruments are valued using public indices, the instruments themselves are traded with unrelated counterparties and are not openly traded on an exchange. Although the Company is exposed to credit risk to the extent of nonperformance by the counterparties to these derivative contracts, the Company does not anticipate such nonperformance and monitors the credit worthiness of its counterparties on an ongoing basis. | |||||||||||||||||||
Level 3 Classification: | |||||||||||||||||||
Preferred Stock Embedded Derivative | |||||||||||||||||||
At September 30, 2014 and December 31, 2013, the Company had a preferred stock embedded derivative liability resulting from its Eureka Hunter Holdings Series A Preferred Units, which contain certain conversion features, redemption options, and other features. | |||||||||||||||||||
The fair value of the bifurcated conversion feature was valued using the "with and without" analysis in a simulation model based upon management's estimate of the expected life of the conversion feature. The key assumptions used in the model to determine fair value at September 30, 2014 were as follows: | |||||||||||||||||||
September 30, 2014 | |||||||||||||||||||
Volatility | 13.7 | % | |||||||||||||||||
Credit spread | 24 | % | |||||||||||||||||
Expected term | 1-2 years | ||||||||||||||||||
Total enterprise value (in millions) | $ | 929.7 | |||||||||||||||||
The selection of assumptions for expected term and total enterprise value were made based on a weighting of possible outcomes. The term of the conversion feature, which was linked to the terms of the Eureka Hunter Holdings Amended and Restated Limited Liability Company Agreement (the "Eureka Hunter Holdings LLC Agreement"), could range from zero to 6 years. During the three-month period ended September 30, 2014, MSIP II Buffalo Holdings LLC, an affiliate of Morgan Stanley Infrastructure, Inc ("MSI"), entered into an agreement to purchase all of the issued and outstanding Eureka Hunter Holdings Series A Preferred Units and Class A Common Units held by Ridgeline Midstream Holdings, LLC ("Ridgeline"), an affiliate of ArcLight Capital Partners, LLC ("ArcLight"), which constituted all of the issued and outstanding Eureka Hunter Holdings Series A Preferred Units. In making the Company's determination of the total enterprise value for Eureka Hunter Holdings of $929.7 million, the Company considered the purchase price associated with MSI's purchase of the Eureka Hunter Holdings Series A Preferred Units, and its implied value to the enterprise as a whole. The issued and outstanding Eureka Hunter Holdings Series A Preferred Units were subsequently converted to a new class of common equity of Eureka Hunter Holdings. See "Note 13 - Redeemable Preferred Stock" and "Note 20 - Subsequent Events". | |||||||||||||||||||
The fair value calculation is sensitive to movements in volatility, estimated remaining term, and the total enterprise value of Eureka Hunter Holdings. A decrease in the estimated term of the conversion feature results in a higher fair value of the conversion feature. During the three-month period ended June 30, 2014, the Company changed the estimated term to 1-2 years due to changes in the Company's expectation of when the conversion feature with respect to the Eureka Hunter Holdings Series A Preferred Units would be exercised. As the implied volatility of the instruments increases so too does the fair value of the derivative liability arising from the conversion and redemption features. Similarly, as the total enterprise value of Eureka Hunter Holdings increases, the fair value of the derivative liability increases. Decreases in volatility and total enterprise value would result in a reduction to the fair value of the derivative liability associated with these instruments. | |||||||||||||||||||
Convertible Security Embedded Derivative | |||||||||||||||||||
The Company recognized an embedded derivative asset resulting from the fair value of the bifurcated conversion feature associated with the convertible note it received in February 2012 as partial consideration upon the sale of Hunter Disposal, LLC ("Hunter Disposal") to GreenHunter Resources, Inc. ("GreenHunter"), a related party. The embedded derivative was valued using a Black-Scholes model valuation of the conversion option. | |||||||||||||||||||
The key inputs used in the Black-Scholes option pricing model were as follows: | |||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
Life | 2.4 | ||||||||||||||||||
Risk-free interest rate | 1.03 | % | |||||||||||||||||
Estimated volatility | 40 | % | |||||||||||||||||
Dividend | — | ||||||||||||||||||
GreenHunter stock price at end of period | $ | 1.52 | |||||||||||||||||
The sensitivity of the estimate of volatility used in determining the fair value of the convertible security embedded derivative would not have a significant impact to the Company's financial statements based on the value of the assets as compared to the financial statements as a whole. | |||||||||||||||||||
The following tables present the fair value hierarchy levels of the Company's financial assets and liabilities which are measured and carried at fair value on a recurring basis: | |||||||||||||||||||
Fair Value Measurements on a Recurring Basis | |||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Available for sale securities | $ | 8,076 | $ | — | $ | — | |||||||||||||
Commodity derivative assets | — | 2,127 | — | ||||||||||||||||
Convertible security derivative assets | — | — | 83 | ||||||||||||||||
Total assets at fair value | $ | 8,076 | $ | 2,127 | $ | 83 | |||||||||||||
Liabilities | |||||||||||||||||||
Commodity derivative liabilities | $ | — | $ | 114 | $ | — | |||||||||||||
Convertible preferred stock derivative liabilities | — | — | 173,205 | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | 114 | $ | 173,205 | |||||||||||||
Fair Value Measurements on a Recurring Basis | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Available for sale securities | $ | 1,819 | $ | — | $ | — | |||||||||||||
Commodity derivative assets | — | 554 | — | ||||||||||||||||
Convertible security derivative assets | — | — | 79 | ||||||||||||||||
Total assets at fair value | $ | 1,819 | $ | 554 | $ | 79 | |||||||||||||
Liabilities | |||||||||||||||||||
Commodity derivative liabilities | $ | — | $ | 2,279 | $ | — | |||||||||||||
Convertible preferred stock derivative liabilities | — | — | 75,934 | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | 2,279 | $ | 75,934 | |||||||||||||
The following table presents a reconciliation of the financial derivative asset and liability measured at fair value using significant unobservable inputs (Level 3 inputs) for the nine-month period ended September 30, 2014: | |||||||||||||||||||
Preferred Stock Embedded | Convertible Security Embedded | ||||||||||||||||||
Derivative Liability | Derivative Asset | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Fair value as of December 31, 2013 | $ | (75,934 | ) | $ | 79 | ||||||||||||||
Issuance of redeemable preferred stock | (5,479 | ) | — | ||||||||||||||||
Increase in fair value recognized in gain (loss) on derivative contracts, net | (91,792 | ) | 4 | ||||||||||||||||
Fair value as of September 30, 2014 | $ | (173,205 | ) | $ | 83 | ||||||||||||||
As of September 30, 2014, the valuation of the conversion feature embedded in the Eureka Hunter Holdings Series A Preferred Units increased the fair value of the embedded derivative liability by approximately $91.8 million as a result of changes in the total enterprise value of Eureka Hunter Holdings and the Company's estimate of the expected remaining term of the conversion feature. Management's estimate of the expected remaining term of the conversion option as of September 30, 2014 shortened the time horizon previously estimated by management, resulting in higher fair value of the conversion feature. Management's estimates were based upon several factors, including an estimate of the likelihood of each of the possible settlement options, which included redemption through a call or put option, or a liquidity event that triggers conversion to Class A Common Units of Eureka Hunter Holdings. See "Note 20 - Subsequent Events". | |||||||||||||||||||
Other Fair Value Measurements | |||||||||||||||||||
The following table presents the carrying amounts and fair values categorized by fair value hierarchy level of the Company's financial instruments not carried at fair value: | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||
Fair Value Hierarchy | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||||
(in thousands) | |||||||||||||||||||
Senior Notes | Level 2 | $ | 597,313 | $ | 639,000 | $ | 597,230 | $ | 651,300 | ||||||||||
MHR Senior Revolving Credit Facility | Level 3 | $ | 256,000 | $ | 256,000 | $ | 218,000 | $ | 218,000 | ||||||||||
Eureka Hunter Pipeline second lien term loan | Level 3 | $ | — | $ | — | $ | 50,000 | $ | 58,921 | ||||||||||
Eureka Hunter Pipeline Credit Agreement | Level 3 | $ | 80,000 | $ | 80,000 | $ | — | $ | — | ||||||||||
Equipment Notes Payable | Level 3 | $ | 25,149 | $ | 25,170 | $ | 18,615 | $ | 17,676 | ||||||||||
The fair value of the Company's Senior Notes is based on quoted market prices available for Magnum Hunter's Senior Notes. The fair value hierarchy for the Company's Senior Notes is Level 2 (quoted prices for similar assets in active markets). | |||||||||||||||||||
The carrying values of the Company's senior revolving credit facility (the "MHR Senior Revolving Credit Facility") and the outstanding borrowings under Eureka Hunter Pipeline's credit agreement (the "Eureka Hunter Pipeline Credit Agreement") approximate fair value as they are subject to short-term floating interest rates that approximate the rates available to the Company for those periods. The fair value hierarchy for the MHR Senior Revolving Credit Facility and the Eureka Hunter Pipeline Credit Agreement is Level 3. | |||||||||||||||||||
The fair value of Eureka Hunter Pipeline's second lien term loan as of December 31, 2013 is the estimated cost to acquire the debt, including a credit spread for the difference between the issue rate and the period-end market rate. The credit spread is the Company’s default or repayment risk. The credit spread (premium or discount) is determined by comparing the Company’s fixed-rate notes and credit facility to new issuances (secured and unsecured) and secondary trades of similar size and credit statistics for both public and private debt. Eureka Hunter Pipeline's second lien term loan was paid in full in March 2014. | |||||||||||||||||||
The fair value of all fixed-rate notes and the credit facility is based on interest rates currently available to the Company. | |||||||||||||||||||
Fair Value on a Non-Recurring Basis | |||||||||||||||||||
The Company follows the provisions of ASC Topic 820, Fair Value Measurement, for non-financial assets and liabilities measured at fair value on a non-recurring basis. As it relates to the Company, ASC Topic 820 applies to certain non-financial assets and liabilities as may be acquired in a business combination and thereby measured at fair value, measurements of impairments, and the initial recognition of asset retirement obligations, for which fair value is used. These ARO estimates are derived from historical costs as well as management's expectation of future cost environments. As there is no corroborating market activity to support the assumptions used, the Company has designated these measurements as Level 3. | |||||||||||||||||||
As of September 30, 2014, the Company has measured the carrying value of certain long-lived assets of MHP previously classified as held for sale at their fair value in connection with their reclassification to assets held and used. See "Note 2 - Divestitures and Discontinued Operations". The fair value of these assets were derived using a variety of assumptions including market precedent transactions for similar assets, analyst pricing, and risk-adjusted discount rates for similar transactions. The Company has designated these valuations as Level 3. |
FINANCIAL_INSTRUMENTS_AND_DERI
FINANCIAL INSTRUMENTS AND DERIVATIVES | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
FINANCIAL INSTRUMENTS AND DERIVATIVES | ' | ||||||||||||||||||
NOTE 9 - FINANCIAL INSTRUMENTS AND DERIVATIVES | |||||||||||||||||||
Investment Holdings | |||||||||||||||||||
Below is a summary of changes in investments for the nine months ended September 30, 2014: | |||||||||||||||||||
Available for Sale Securities | Equity Method Investments (1) | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Carrying value as of December 31, 2013 | $ | 1,819 | $ | 940 | |||||||||||||||
Securities received as consideration for assets sold | 9,447 | — | |||||||||||||||||
Equity in net loss recognized in other income (expense) | — | (504 | ) | ||||||||||||||||
Change in fair value recognized in other comprehensive loss | (3,190 | ) | — | ||||||||||||||||
Carrying value as of September 30, 2014 | $ | 8,076 | $ | 436 | |||||||||||||||
(1) Equity method investments includes $282,000 classified as long-term other assets. | |||||||||||||||||||
The Company's investments have been presented in the consolidated balance sheet as of September 30, 2014 as follows: | |||||||||||||||||||
Available for Sale Securities | Equity Method Investments | Total | |||||||||||||||||
Investments - Current | $ | 8,076 | $ | 154 | $ | 8,230 | |||||||||||||
Other Assets - Long-Term | — | 282 | 282 | ||||||||||||||||
Carrying value as of September 30, 2014 | $ | 8,076 | $ | 436 | $ | 8,512 | |||||||||||||
The cost for equity securities and their respective fair values as of September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||
September 30, 2014 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||
Securities available for sale, carried at fair value: | |||||||||||||||||||
Equity securities | $ | 9,875 | $ | — | $ | (4,030 | ) | $ | 5,845 | ||||||||||
Equity securities - related party (see "Note 15 - Related Party Transactions") | 2,200 | — | 31 | 2,231 | |||||||||||||||
Total Securities available for sale | $ | 12,075 | $ | — | $ | (3,999 | ) | $ | 8,076 | ||||||||||
December 31, 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||
Securities available for sale, carried at fair value: | |||||||||||||||||||
Equity securities | $ | 428 | $ | — | $ | (281 | ) | $ | 147 | ||||||||||
Equity securities - related party (see "Note 15 - Related Party Transactions") | 2,200 | — | (528 | ) | 1,672 | ||||||||||||||
Total Securities available for sale | $ | 2,628 | $ | — | $ | (809 | ) | $ | 1,819 | ||||||||||
The methods of determining the fair values of Magnum Hunter's investments in equity securities are described in "Note 8 - Fair Value of Financial Instruments". | |||||||||||||||||||
The Company's investment holdings are concentrated in three issuers whose business activities are related to the oil and natural gas or minerals mining industries. These investments are ancillary to the Company's overall operating strategy and such concentrations of risk related to investment holdings do not pose a substantial risk to the Company's operational performance. The Company evaluates factors that it believes could influence the fair value of the issuers' securities such as management, assets, earnings, cash generation, and capital needs. | |||||||||||||||||||
The fair values of equity securities fluctuate based upon changes in market prices. Gross unrealized losses on investments are considered for other-than-temporary impairment when such losses have continued for more than a 12-month period. However, security specific circumstances may arise where an investment is considered impaired when gross unrealized losses have been observed for less than twelve months. As of September 30, 2014 and December 31, 2013, the Company did not hold any equity securities which were in a gross unrealized loss position for greater than a year, and no impairments were recognized for the periods then ended. | |||||||||||||||||||
Commodity and Financial Derivative Instruments | |||||||||||||||||||
The Company periodically enters into certain commodity derivative instruments such as futures contracts, swaps, collars, and basis swap contracts, to mitigate commodity price risk associated with a portion of the Company's future monthly natural gas and crude oil production and related cash flows. The Company has not designated any commodity derivative instruments as hedges. | |||||||||||||||||||
In a commodities swap agreement, the Company trades the fluctuating market prices of oil or natural gas at specific delivery points over a specified period, for fixed prices. As a producer of oil and natural gas, the Company holds these commodity derivatives to protect the operating revenues and cash flows related to a portion of its future natural gas and crude oil sales from the risk of significant declines in commodity prices, which is intended to help reduce exposure to price risk and improve the likelihood of funding its capital budget. If the price of a commodity rises above what the Company has agreed to receive in the swap agreement, the amount that it agrees to pay the counterparty would theoretically be offset by the increased amount it received for its production. | |||||||||||||||||||
As of September 30, 2014, the Company had the following commodity derivative instruments: | |||||||||||||||||||
Weighted Average | |||||||||||||||||||
Natural Gas | Period | MMBtu/day | Price per MMBtu | ||||||||||||||||
Collars (1) | Oct 2014- Dec 2014 | 15,000 | $4.27 - $5.23 | ||||||||||||||||
Swaps | Oct 2014 - Dec 2014 | 41,000 | $4.18 | ||||||||||||||||
Jan 2015 - Dec 2015 | 30,000 | $4.12 | |||||||||||||||||
Ceilings purchased (call) | Oct 2014 - Dec 2014 | 16,000 | $5.91 | ||||||||||||||||
Ceilings sold (call) | Oct 2014 - Dec 2014 | 16,000 | $5.91 | ||||||||||||||||
Weighted Average | |||||||||||||||||||
Crude Oil | Period | Bbl/day | Price per Bbl | ||||||||||||||||
Collars (1) | Oct 2014 - Dec 2014 | 663 | $85.00 - $91.25 | ||||||||||||||||
Jan 2015 - Dec 2015 | 259 | $85.00 - $91.25 | |||||||||||||||||
Traditional three-way collars (2) | Oct 2014 - Dec 2014 | 4,000 | $64.94 - $85.00 - $102.50 | ||||||||||||||||
Ceilings sold (call) | Jan 2015 - Dec 2015 | 1,570 | $120.00 | ||||||||||||||||
Floors sold (put) | Oct 2014 - Dec 2014 | 663 | $65.00 | ||||||||||||||||
Jan 2015 - Dec 2015 | 259 | $70.00 | |||||||||||||||||
________________________________ | |||||||||||||||||||
(1) A collar is a sold call and a purchased put. Some collars are "costless" collars with the premiums netting to approximately zero. | |||||||||||||||||||
(2) These three-way collars are a combination of three options: a sold call, a purchased put and a sold put. | |||||||||||||||||||
As of September 30, 2014, Bank of America, Bank of Montreal, KeyBank National Association, Credit Suisse Energy, LLC, Citibank, N.A., ABN AMRO, the Royal Bank of Canada, and Goldman Sachs are the only counterparties to the Company's commodity derivatives positions. The Company is exposed to credit losses in the event of nonperformance by the counterparties; however, it does not anticipate nonperformance by the counterparties over the term of the commodity derivatives positions. At September 30, 2014, all counterparties, or their affiliates, were participants in the MHR Senior Revolving Credit Facility, and the collateral for the outstanding borrowings under the MHR Senior Revolving Credit Facility was used as collateral for its commodity derivatives with those counterparties. Certain counterparties to the Company's commodity derivatives positions are no longer participants in the Company's credit facilities following the execution of new new credit agreements on October 22, 2014. See "Note 20 - Subsequent Events". | |||||||||||||||||||
At September 30, 2014, the Company had preferred stock derivative liabilities resulting from certain conversion features, redemption options, and other features of its Eureka Hunter Holdings Series A Preferred Units and Class A Common Units held by Ridgeline, which constituted all of the issued and outstanding Eureka Hunter Holdings Series A Preferred Units. See "Note 8 - Fair Value of Financial Instruments" and "Note 13 - Redeemable Preferred Stock". During the three-month period ended September 30, 2014, MSI entered into an agreement to purchase all of the issued and outstanding Eureka Hunter Holdings Series A Preferred Units. Contemporaneous with the closing of MSI's purchase, the Company, MSI, and all minority interest members of Eureka Hunter Holdings entered into the Second Amended and Restated Limited Liability Company Agreement of Eureka Hunter Holdings (the "New LLC Agreement"), which became effective on October 3, 2014. In connection with that amendment, all Eureka Hunter Holdings Series A Preferred Units were converted to a new class of equity. As a result, the preferred stock derivative liability effectively settled on the effective date of the New LLC Agreement through this conversion. See "Note 20 - Subsequent Events". | |||||||||||||||||||
At September 30, 2014, the Company also had a convertible security embedded derivative asset primarily due to the conversion feature of the promissory note received as partial consideration for the sale of Hunter Disposal. See "Note 8 - Fair Value of Financial Instruments" and "Note 15 - Related Party Transactions". | |||||||||||||||||||
The following table summarizes the fair value of the Company's commodity and financial derivative contracts as of the dates indicated: | |||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||
Derivatives not designated as hedging instruments | Balance Sheet Classification | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Commodity | |||||||||||||||||||
Derivative assets | $ | 1,871 | $ | 529 | $ | — | $ | — | |||||||||||
Derivative assets - long-term | 255 | 25 | — | — | |||||||||||||||
Derivative liabilities | — | — | (48 | ) | (1,903 | ) | |||||||||||||
Derivative liabilities - long-term | — | — | (66 | ) | (376 | ) | |||||||||||||
Total commodity | $ | 2,126 | $ | 554 | $ | (114 | ) | $ | (2,279 | ) | |||||||||
Financial | |||||||||||||||||||
Derivative assets | $ | 83 | $ | 79 | $ | — | $ | — | |||||||||||
Derivative liabilities - long-term | — | — | (173,205 | ) | (75,934 | ) | |||||||||||||
Total financial | $ | 83 | $ | 79 | $ | (173,205 | ) | $ | (75,934 | ) | |||||||||
Total derivatives | $ | 2,209 | $ | 633 | $ | (173,319 | ) | $ | (78,213 | ) | |||||||||
Certain of the Company's derivative instruments are subject to enforceable master netting arrangements that provide for the net settlement of all derivative contracts between the Company and a counterparty in the event of default or upon the occurrence of certain termination events. The tables below summarize the Company's commodity derivatives and the effect of master netting arrangements on the presentation in the Company's consolidated balance sheets as of: | |||||||||||||||||||
September 30, 2014 | |||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset on the Consolidated Balance Sheet | Net Amount | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Current assets: Fair value of derivative contracts | $ | 2,399 | (528 | ) | $ | 1,871 | |||||||||||||
Long-term assets: Fair value of derivative contracts | 377 | (122 | ) | 255 | |||||||||||||||
Current liabilities: Fair value of derivative contracts | (576 | ) | 528 | (48 | ) | ||||||||||||||
Long-term liabilities: Fair value of derivative contracts | (188 | ) | 122 | (66 | ) | ||||||||||||||
$ | 2,012 | — | $ | 2,012 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||
Gross Amounts of Assets and Liabilities | Gross Amounts Offset on the Consolidated Balance Sheet | Net Amount | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Current assets: Fair value of derivative contracts | $ | 4,034 | (3,505 | ) | $ | 529 | |||||||||||||
Long-term assets: Fair value of derivative contracts | 516 | (491 | ) | 25 | |||||||||||||||
Current liabilities: Fair value of derivative contracts | (5,408 | ) | 3,505 | (1,903 | ) | ||||||||||||||
Long-term liabilities: Fair value of derivative contracts | (867 | ) | 491 | (376 | ) | ||||||||||||||
$ | (1,725 | ) | — | $ | (1,725 | ) | |||||||||||||
The following table summarizes the net gain (loss) on all derivative contracts included in gain (loss) on derivative contracts, net on the consolidated statements of operations for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended | ||||||||||||||||||
September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Gain (loss) on settled transactions | $ | 477 | $ | (6,582 | ) | $ | (4,074 | ) | $ | (6,887 | ) | ||||||||
Loss on open contracts | (50,113 | ) | (22,971 | ) | (88,051 | ) | (23,757 | ) | |||||||||||
Total loss | $ | (49,636 | ) | $ | (29,553 | ) | $ | (92,125 | ) | $ | (30,644 | ) |
DEBT
DEBT | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
DEBT | ' | |||||||||||||||
NOTE 10 - DEBT | ||||||||||||||||
Long-term debt at September 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Senior Notes payable due May 15, 2020, interest rate of 9.75%, net of unamortized net discount of $2.7 million at September 30, 2014 and December 31, 2013 | $ | 597,313 | $ | 597,230 | ||||||||||||
Various equipment and real estate notes payable with maturity dates January 2015 - April 2021, interest rates of 4.25% - 7.94%(1) | 25,149 | 18,615 | ||||||||||||||
Eureka Hunter Pipeline Credit Agreement due March 28, 2018, interest rate of 3.66% | 80,000 | — | ||||||||||||||
Eureka Hunter Pipeline second lien term loan due August 16, 2018, interest rate of 12.5% | — | 50,000 | ||||||||||||||
MHR Senior Revolving Credit Facility due April 13, 2016, interest rate of 3.06% at September 30, 2014 and 3.56% at December 31, 2013 | 256,000 | 218,000 | ||||||||||||||
958,462 | 883,845 | |||||||||||||||
Less: current portion | (8,670 | ) | (3,967 | ) | ||||||||||||
Total long-term debt obligations, net of current portion | $ | 949,792 | $ | 879,878 | ||||||||||||
_________________________________ | ||||||||||||||||
-1 | Balance as of December 31, 2013 includes notes classified as liabilities associated with assets held for sale of which $0.2 million is current and $3.8 million is long-term. | |||||||||||||||
The following table presents the scheduled or expected approximate annual maturities of debt, gross of unamortized discount of $2.7 million: | ||||||||||||||||
(in thousands) | ||||||||||||||||
2014 | $ | 2,565 | ||||||||||||||
2015 | 7,717 | |||||||||||||||
2016 | 264,727 | |||||||||||||||
2017 | 2,548 | |||||||||||||||
2018 | 80,559 | |||||||||||||||
Thereafter | 603,032 | |||||||||||||||
Total | $ | 961,148 | ||||||||||||||
MHR Senior Revolving Credit Facility and Second Lien Term Loan | ||||||||||||||||
On December 13, 2013, the Company entered into a Third Amended and Restated Credit Agreement (the "Credit Agreement") by and among the Company, Bank of Montreal, as Administrative Agent, the lenders party thereto and the agents party thereto. The Credit Agreement amended and restated that certain Second Amended and Restated Credit Agreement, dated as of April 13, 2011, by and among such parties, as amended (the "Prior Credit Agreement"). | ||||||||||||||||
On May 6, 2014, the Company and the other parties to the Credit Agreement entered into the First Amendment to Third Amended and Restated Credit Agreement (the "Amendment"). The Amendment increased the borrowing base from $232.5 million to $325.0 million in connection with the regular semi-annual redetermination of the Company's borrowing base derived from the Company's proved crude oil and natural gas reserves. The borrowing base may be increased or decreased in connection with such redeterminations up to a maximum commitment level of $750.0 million. The Amendment provides that such increased borrowing base shall be reduced (i) by the lesser of $25.0 million or 50% of the net proceeds from issuances by the Company of common equity on or before July 1, 2014 (other than common equity issued pursuant to any stock incentive or stock option plan or any other compensatory arrangements); (ii) by certain specified reductions in connection with certain proposed asset dispositions; (iii) on July 1, 2014 by $25.0 million less any prior adjustment of the borrowing base due to an equity issuance as contemplated by clause (i); and (iv) by $0.25 for each $1.00 of any additional Senior Notes issued by the Company. The Amendment further provides that from May 6, 2014 through July 1, 2014 the Applicable Margin (as defined in the Credit Agreement) component of the interest charged on revolving borrowings under the Credit Agreement shall be 2.75% for ABR Loans (as defined in the Credit Agreement) and 3.75% for Eurodollar Loans (as defined in the Credit Agreement). From and after July 1, 2014 through the date of the Company’s delivery of a certificate for the quarter ended June 30, 2014, with respect to, among other things, the Company’s compliance with the covenants in the Credit Agreement (the "Compliance Certificate"), the Applicable Margin component of interest charged on revolving borrowings under the Credit Agreement will range from 1.50% to 2.25% for ABR Loans and from 2.50% to 3.25% for Eurodollar Loans. From and after the Company’s delivery of the Compliance Certificate, the Applicable Margin component of interest charged on revolving borrowings under the Credit Agreement will range from 1.00% to 1.75% for ABR Loans and from 2.00% to 2.75% for Eurodollar Loans. | ||||||||||||||||
In addition, the Amendment modified certain of the Credit Agreement’s financial covenants, including: | ||||||||||||||||
(i) | permitting the Company to take into account the borrowing base increase as though it occurred on March 31, 2014 for purposes of maintaining a ratio of consolidated current assets to consolidated current liabilities of not less than 1.0 to 1.0; | |||||||||||||||
(ii) | providing for a ratio of EBITDAX to Interest Expense of not less than (A) 2.00 to 1.0 for the fiscal quarter ended March 31, 2014, (B) 2.25 to 1.0 for the fiscal quarters ending June 30, 2014 and September 30, 2014, and (C) 2.50 to 1.0 for the fiscal quarter ending December 31, 2014 and for each fiscal quarter ending thereafter; and | |||||||||||||||
(iii) | beginning with the fiscal quarter ended June 30, 2014, providing for a ratio of total Debt to EBITDAX of not more than (A) 4.75 to 1.0 for the fiscal quarters ending June 30, 2014 and September 30, 2014, (B) 4.50 to 1.0 for the fiscal quarter ending December 31, 2014, and (C) 4.25 to 1.0 for the fiscal quarter ending March 31, 2015 and for each fiscal quarter ending thereafter. | |||||||||||||||
The Amendment also (i) amends the definition of EBITDAX and provides that certain acquisitions and dispositions be given pro forma effect in the calculation of EBITDAX; (ii) increases the letter of credit commitment from $10.0 million to $50.0 million and provides that outstanding letter of credit exposure not be included in certain determinations of Debt; (iii) requires the total value of the Company’s oil and gas properties included in the reserve reports for the borrowing base determinations in which the lenders under the Credit Agreement have perfected liens be increased from 80% to 90%; and (iv) modifies certain covenants in the Credit Agreement with respect to permitted investments by the Company to increase flexibility. | ||||||||||||||||
The Company incurred direct financing costs associated with entering into the Amendment to the Credit Agreement in the amount of $3.1 million, which will be deferred and amortized over the remaining term of the Credit Agreement. | ||||||||||||||||
As of September 30, 2014, the borrowing base under this facility was $265.0 million, and $256.0 million of borrowings were outstanding ($218.0 million outstanding as of December 31, 2013). The borrowing base as of September 30, 2014 reflects reductions in the borrowing base of $25 million, $27.5 million, and $7.5 million related to the issuance of equity in May 2014, the sale of our 100% equity interest in WHI Canada which closed in May 2014, and the sale of certain assets in North Dakota which closed in September 2014, respectively. The borrowing base is subject to further automatic reductions upon the issuance of additional Senior Notes and in certain other circumstances. | ||||||||||||||||
On October 22, 2014, the Company entered into (i) a Fourth Amended and Restated Credit Agreement (the "New Credit Agreement"), by and among the Company, as borrower, Bank of Montreal, as administrative agent, the lenders party thereto and agents party thereto, and (ii) a Second Lien Credit Agreement (the "Second Lien Term Loan Agreement"), by and among the Company, as borrower, Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, the lenders party thereto and the agents party thereto. The New Credit Agreement amended and restated the Credit Agreement. The proceeds from the New Credit Agreement and the Second Lien Term Loan Agreement were used, in part, to refinance the amounts outstanding under the Credit Agreement on the date of closing. | ||||||||||||||||
As a result of the refinancing of the Credit Agreement with the New Credit Agreement and the Second Lien Term Loan Agreement, the Company was not required to provide compliance certificates for covenants stipulated in the Credit Agreement as of and for the period ended September 30, 2014. See "Note 20 - Subsequent Events" for additional information. | ||||||||||||||||
Eureka Hunter Pipeline Credit Agreement | ||||||||||||||||
On March 28, 2014, Eureka Hunter Pipeline entered into the Eureka Hunter Pipeline Credit Agreement, by and among Eureka Hunter Pipeline, as borrower, ABN AMRO Capital USA, LLC, as a lender and as administrative agent, and the other lenders party thereto. | ||||||||||||||||
The credit agreement, which has a maturity date of March 28, 2018, provides for a revolving credit facility in an aggregate principal amount of up to $117.0 million (with the potential to increase the aggregate commitment under the credit agreement to an aggregate principal amount of up to $150.0 million, subject to the consent of the lender parties and the satisfaction of certain conditions), secured by a first lien on substantially all of the assets of Eureka Hunter Pipeline and its subsidiaries, which include TransTex Hunter, as well as by Eureka Hunter Pipeline’s pledge of the equity in its subsidiaries. The subsidiaries of Eureka Hunter Pipeline also guarantee Eureka Hunter Pipeline’s obligations under the credit agreement. The credit agreement is non-recourse to Magnum Hunter. The Company incurred deferred financing costs directly associated with entering into the Eureka Hunter Pipeline Credit Agreement in the amount of $1.2 million which will be amortized straight-line over the term of the revolving credit facility. The straight-line method of amortization results in substantially the same periodic amortization as the effective interest method. | ||||||||||||||||
The terms of the credit agreement provide that the borrowings thereunder may be used, among other specified purposes, (1) to refinance existing indebtedness of Eureka Hunter Pipeline outstanding on the credit agreement closing date, including the term loan of $50.0 million in principal amount owed under the Second Lien Term Loan Agreement, dated August 16, 2011, by and among Eureka Hunter Pipeline and Pennant Park Investment Corporation, as a lender, the other lenders party thereto and U.S. Bank National Association, as collateral agent, (2) to finance future expansion activities related to Eureka Hunter Pipeline’s gathering system in West Virginia and Ohio, (3) to finance acquisitions by Eureka Hunter Pipeline and its subsidiaries permitted under the terms of the credit agreement, (4) to refinance from time to time certain letters of credit of Eureka Hunter Pipeline and its subsidiaries, (5) to provide working capital for their operations, and (6) for their other general business purposes. | ||||||||||||||||
The Eureka Hunter Pipeline Credit Agreement provides for a commitment fee based on the unused portion of the commitment under the credit agreement of 0.50% per annum when the consolidated leverage ratio is greater than or equal to 3.0 to 1.0 and a commitment fee of 0.375% when the consolidated leverage ratio is less than 3.0 to 1.0. | ||||||||||||||||
In general terms, borrowings under the credit agreement will, at Eureka Hunter Pipeline’s election, bear interest: | ||||||||||||||||
• | on base rate loans, at the per annum rate equal to the sum of (A) the base rate (defined as the highest of (i) the per annum rate of interest established by JPMorgan Chase Bank, N.A. as its prime rate for U.S. dollar loans, (ii) the Adjusted Eurodollar Rate (as defined in the credit agreement) for an interest period of one-month, plus 1.0%, or (iii) the federal funds rate, plus 0.50% per annum), and (B) a margin of 1.0% to 2.50% per annum; or | |||||||||||||||
• | on Eurodollar Loans, at the per annum rate equal to the sum of (A) the Eurodollar Rate (as defined in the credit agreement) adjusted for certain statutory reserve requirements for Eurocurrency liabilities, and (B) a margin of 2.0% to 3.50% per annum. | |||||||||||||||
If an event of default occurs under the credit agreement, generally, the applicable lenders may increase the interest rate then in effect by an additional 2.0% per annum for the period that the default exists. | ||||||||||||||||
The credit agreement contains customary affirmative covenants and negative covenants that, among other things, restrict the ability of each of Eureka Hunter Pipeline and its subsidiaries to, with certain exceptions: (1) incur indebtedness; (2) grant liens; (3) enter into hedging transactions; (4) enter into a merger or consolidation or sell, lease, transfer or otherwise dispose of all or substantially all of its assets or the stock of any of its subsidiaries; (5) issue equity; (6) dispose of any material assets or properties; (7) pay or declare dividends or make certain distributions; (8) invest in, extend credit to or make advances or loans to any person or entity; (9) engage in material transactions with any affiliate; (10) enter into any agreement that restricts or imposes any condition upon the ability of (a) any of Eureka Hunter Pipeline or its subsidiaries to create, incur or permit any lien upon any of its assets or properties, or (b) any such subsidiary to pay dividends or other distributions, to make or repay loans or advances, to guarantee indebtedness or to transfer any of its property or assets to Eureka Hunter Pipeline or its subsidiaries; (11) change the nature of its business; (12) amend its organizational documents or material agreements; (13) change its fiscal year; (14) enter into sale and leaseback transactions; (15) make acquisitions; (16) make certain capital expenditures; or (17) take any action that could result in regulation as a utility. | ||||||||||||||||
The credit agreement requires Eureka Hunter Pipeline to satisfy certain financial covenants, including maintaining: | ||||||||||||||||
• | a maximum leverage ratio (defined as the ratio of (i) consolidated funded debt to (ii) annualized consolidated EBITDA), as of the end of each fiscal quarter, not greater than (A) 4.75 to 1.00 for the fiscal quarters ending March 31, 2014 through September 30, 2014, and (B) 4.50 to 1.00 for the fiscal quarter ending December 31, 2014 and each fiscal quarter ending thereafter; and | |||||||||||||||
• | a minimum interest coverage ratio (defined as the ratio of (i) annualized consolidated EBITDA to (ii) annualized consolidated interest charges for such period), as of the end of each fiscal quarter, not less than (A) 2.75 to 1.00 for the fiscal quarters ending March 31, 2014 through September 30, 2014, and (B) 2.50 to 1.00 for the fiscal quarter ending December 31, 2014 and each fiscal quarter ending thereafter. | |||||||||||||||
The obligations of Eureka Hunter Pipeline under the credit agreement may be accelerated upon the occurrence of an event of default. Events of default include customary events for these types of financings, including, among other things, payment defaults, defaults in the performance of affirmative or negative covenants, the inaccuracy of representations or warranties, material defaults under or termination of certain material contracts, defaults relating to judgments, certain bankruptcy proceedings, a change in control and any material adverse change. | ||||||||||||||||
As of September 30, 2014 the maximum amount available under the credit agreement was $90.2 million, and the Company had $80.0 million in borrowings outstanding. The borrowing capacity is subject to certain upward or downward reductions during the term of the credit agreement. | ||||||||||||||||
As of September 30, 2014, Eureka Hunter Pipeline was in compliance with all of its covenants contained in the Eureka Hunter Pipeline Credit Agreement. | ||||||||||||||||
Eureka Hunter Pipeline Credit Facilities | ||||||||||||||||
Upon executing the new Eureka Hunter Pipeline Credit Agreement on March 28, 2014, Eureka Hunter Pipeline terminated its revolving credit agreement with SunTrust Bank and the term loan agreement with Pennant Park (the "Original Eureka Hunter Credit Facilities"). Eureka Hunter Pipeline used proceeds from the Eureka Hunter Pipeline Credit Agreement to pay in full all outstanding obligations related to the termination of the Original Eureka Hunter Credit Facilities, which included the principal outstanding amount of $50.0 million, a prepayment penalty of $2.2 million, and accrued, unpaid interest of $1.5 million. | ||||||||||||||||
Equipment Note Payable | ||||||||||||||||
On January 21, 2014, the Company's wholly owned subsidiary, Alpha Hunter Drilling, LLC, entered into a master loan and security agreement with CIT Finance LLC to borrow $5.6 million at an interest rate of 7.94% over a term of forty-eight months. The note is collateralized by field equipment, and the Company is a guarantor on the note. | ||||||||||||||||
Building Note Payable | ||||||||||||||||
Effective September 30, 2014, MHP refinanced its $3.8 million term loan with Traditional Bank, Inc. that was due to mature in early 2015. The new loan is collateralized by an office building owned by MHP and carried an initial principal balance of $3.8 million at an interest rate of 4.875% with a maturity date of September 30, 2024. | ||||||||||||||||
Interest Expense | ||||||||||||||||
The following table sets forth interest expense for the three and nine month periods ended September 30, 2014 and 2013, respectively: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Interest expense incurred on debt, net of amounts capitalized | $ | 17,013 | $ | 14,648 | $ | 53,748 | $ | 49,691 | ||||||||
Amortization and write-off of deferred financing costs | 1,082 | 1,111 | 8,725 | 3,661 | ||||||||||||
Total interest expense | $ | 18,095 | $ | 15,759 | $ | 62,473 | $ | 53,352 | ||||||||
The Company capitalizes interest on expenditures for significant construction projects that last more than six months while activities are in progress to bring the assets to their intended use. The Company capitalized interest on its Eureka Hunter Gas Gathering System of $723,000 and $1.6 million during the three and nine months ended September 30, 2014, respectively, and $582,000 and $2.0 million during the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
For the nine-month period ended September 30, 2014, interest expense incurred on debt includes a $2.2 million prepayment penalty incurred by Eureka Hunter Pipeline as a result of its early termination of the Original Eureka Hunter Credit Facilities on March 28, 2014, which penalty represents an additional cost of borrowing for a period shorter than contractual maturity. In addition, amortization and write-off of deferred financing costs for the nine-month period ended September 30, 2014 includes the write-off of $2.7 million in unamortized deferred financing costs related to those terminated agreements, which costs were expensed at the time of early extinguishment and $1.7 million in unamortized deferred financing costs related to the Amendment of the MHR Senior Revolving Credit Facility. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||||
NOTE 11 - SHARE-BASED COMPENSATION | ||||||||||||||
Under the Company's Amended and Restated Stock Incentive Plan, the Company may grant unrestricted common stock, restricted common stock, common stock options, and stock appreciation rights to directors, officers, employees and other persons who contribute to the success of Magnum Hunter. Currently, 27,500,000 shares of the Company's common stock are authorized to be issued under the plan, and 9,274,248 shares had been issued under the plan as of September 30, 2014, of which 1,398,898 shares remained unvested at September 30, 2014. Additionally, 13,294,506 options to purchase shares and stock appreciation rights were outstanding as of September 30, 2014, of which 4,115,833 remained unvested at September 30, 2014. | ||||||||||||||
The Company recognized share-based compensation expense of $2.3 million and $5.7 million for the three and nine months ended September 30, 2014, respectively, and $3.1 million and $11.8 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||
A summary of common stock option activity for the nine months ended September 30, 2014 and 2013 is presented below: | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands of shares) | Weighted Average Exercise Price per Share | |||||||||||||
Outstanding at beginning of period | 16,891 | 14,847 | $ | 5.69 | $ | 6.01 | ||||||||
Granted | — | 4,938 | $ | — | $ | 4.11 | ||||||||
Exercised | (2,355 | ) | (685 | ) | $ | 4.09 | $ | 2.95 | ||||||
Forfeited | (1,241 | ) | (742 | ) | $ | 6.28 | $ | 6 | ||||||
Outstanding at end of period | 13,295 | 18,358 | $ | 5.91 | $ | 5.61 | ||||||||
Exercisable at end of period | 9,179 | 10,512 | $ | 6.22 | $ | 5.86 | ||||||||
A summary of the Company’s non-vested common stock options and stock appreciation rights for the nine months ended September 30, 2014 and 2013 is presented below: | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
(in thousands of shares) | ||||||||||||||
Non-vested at beginning of period | 6,908 | 6,163 | ||||||||||||
Granted | — | 4,938 | ||||||||||||
Vested | (1,916 | ) | (2,867 | ) | ||||||||||
Forfeited | (876 | ) | (389 | ) | ||||||||||
Non-vested at end of period | 4,116 | 7,845 | ||||||||||||
Total unrecognized compensation cost related to the non-vested common stock options was $4.7 million and $12.9 million as of September 30, 2014 and 2013, respectively. The unrecognized compensation cost at September 30, 2014 is expected to be recognized over a weighted-average period of 1.1 years. At September 30, 2014, the weighted average remaining contract life of outstanding options was 5.6 years. | ||||||||||||||
During the nine months ended September 30, 2014, the Company granted 1,486,373 restricted shares of common stock to officers, executives, and employees of the Company which vest over a 3-year period with 33% of the restricted shares vesting one year from the date of the grant. The Company also granted 123,798 restricted shares to the directors of the Company which vest 100% one year from the date of the grant. The shares had a fair value at the time of grant of $10.8 million based on the stock price on grant date and estimated forfeiture rate of 3.4%. | ||||||||||||||
Total unrecognized compensation cost related to non-vested, restricted shares amounted to $7.1 million and $66,000 as of September 30, 2014 and 2013, respectively. The unrecognized cost at September 30, 2014, is expected to be recognized over a weighted-average period of 2.1 years. | ||||||||||||||
Eureka Hunter Holdings, LLC Management Incentive Compensation Plan | ||||||||||||||
On May 12, 2014, the Board of Directors of Eureka Hunter Holdings approved the Eureka Hunter Holdings, LLC Management Incentive Compensation Plan ("Eureka Hunter Holdings Plan") to provide long-term incentive compensation to attract and retain officers and employees of Eureka Hunter Holdings and its affiliates and allow such individuals to participate in the economic success of Eureka Hunter Holdings and its affiliates. | ||||||||||||||
The Eureka Hunter Holdings Plan consists of (i) 2,336,905 Class B Common Units representing membership interests in Eureka Hunter Holdings ("Class B Common Units"), and (ii) 2,336,905 Incentive Plan Units issuable pursuant to a management incentive compensation plan, which represent the right to receive a dollar value up to the baseline value of a corresponding Class B Common Unit ("Incentive Plan Units"). The Eureka Hunter Holdings Plan is administered by the Board of Directors of Eureka Hunter Holdings, and, as administrator of the Eureka Hunter Holdings Plan, the board will from time to time make awards under the Eureka Hunter Holdings Plan to selected officers and employees of Eureka Hunter Holdings or its affiliates ("Award Recipients"). | ||||||||||||||
The Class B Common Units are profits interest awards that carry the right to share in the appreciation in the value of the aggregate common equity in Eureka Hunter Holdings over and above a baseline value that is determined on the date of grant of the Class B Common Units. The Class B Common Units vest in five substantially equal annual installments on each of the first five anniversaries of the date of grant, subject to the Award Recipient's continued employment, and automatically vest in full upon the occurrence of a liquidity event (as defined in the Eureka Hunter Holdings Plan) (including if the Award Recipient's employment is terminated by Eureka Hunter Holdings or an affiliate without cause or due to the Award Recipient's death or disability, in each case, within six months prior to the occurrence of a liquidity event). Subject to the Award Recipient's continued employment, the Incentive Plan Units become fully vested upon the occurrence of a liquidity event (including if the Award Recipient's employment is terminated by Eureka Hunter Holdings or an affiliate without cause or due to the Award Recipient's death or disability, in each case, within six months prior to the occurrence of a liquidity event). | ||||||||||||||
If an Award Recipient’s employment is terminated under any other circumstances, all unvested Class B Common Units and Incentive Plan Units will be forfeited immediately upon the Award Recipient’s termination of employment. In addition, vested Class B Common Units will be forfeited if an Award Recipient’s employment is terminated prior to the occurrence of a liquidity event by Eureka Hunter Holdings or an affiliate for cause or due to the Award Recipient’s resignation. If, following a termination of his or her employment by Eureka Hunter Holdings or an affiliate without cause or due to the Award Recipient’s death or disability, an Award Recipient retains vested Class B Common Units, Eureka Hunter Holdings will have the right, but not the obligation, to repurchase such vested Class B Common Units at fair market value. | ||||||||||||||
Distributions, if any, with respect to the Class B Common Units issued pursuant to the Class B Common Unit Agreement will be made in accordance with, and subject to, the New LLC Agreement, provided, that, no distributions shall be made with respect to any vested or unvested Class B Common Units unless and until a liquidity event has occurred (other than tax distributions that may be made in accordance with the New LLC Agreement). Payment in respect of vested Class B Common Units and Incentive Plan Units will become due upon the occurrence of a liquidity event and are expected to be settled in cash upon the occurrence of a liquidity event, except in the case of a qualified public offering (as defined in the Eureka Hunter Holdings Plan), in which case settlement will occur partially in cash and partially in shares of the resulting public entity, with the cash portion not to exceed the amount necessary to cover minimum statutory tax withholdings. | ||||||||||||||
Upon approval of the plan on May 12, 2014, the Board of Directors of Eureka Hunter Holdings granted 894,102 Class B Common Units and 894,102 Incentive Plan Units to key employees of Eureka Hunter Holdings and its subsidiaries. The Class B Common Units and Incentive Plan Units are accounted for in accordance with ASC 718, Compensation - Stock Compensation. In accordance with ASC 718, compensation cost is accrued when the performance condition (i.e. the liquidity event) is probable of being achieved. As of September 30, 2014, a liquidity event, as defined, was not probable, and therefore, no compensation cost has been recognized. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS’ EQUITY | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
SHAREHOLDERS’ EQUITY | ' | |||||||||||||||
NOTE 12 - SHAREHOLDERS' EQUITY | ||||||||||||||||
Common Stock | ||||||||||||||||
During the nine months ended September 30, 2014, the Company: | ||||||||||||||||
i) | issued 70,575 shares of the Company’s common stock in connection with share-based compensation which had fully vested to senior management and directors of the Company; | |||||||||||||||
ii) | issued 2,355,000 shares of the Company’s common stock upon exercise of fully vested stock options; | |||||||||||||||
iii) | issued 4,300,000 shares of the Company's common stock in March 2014 in a private placement at a price of $7.00 per share, with net proceeds to the Company of $28.9 million after deducting sales agent commissions and other issuance costs. The Company subsequently filed a Form S-1 Registration Statement with the SEC which was declared effective on July 23, 2014 to register the resale of these shares by the holders thereof to satisfy the Company's registration obligations under the private placement. A post-effective amendment filed to convert the Form S-1 Registration Statement to a Form S-3 Registration Statement was declared effective by the SEC on September 11, 2014; | |||||||||||||||
iv) | issued 21,428,580 shares of the Company's common stock in May 2014 in a private placement at a price of $7.00 per share, with net proceeds to the Company of $149.7 million after deducting issuance costs. The Company subsequently filed a Form S-1 Registration Statement with the SEC to register the resale of these shares by the holders thereof to satisfy the Company's registration obligations under the private placement. A post-effective amendment filed to convert the Form S-1 Registration Statement to a Form S-3 Registration Statement was declared effective by the SEC on August 22, 2014; and | |||||||||||||||
v) | issued 249,531 shares of the Company's common stock to fund safe-harbor and discretionary matching contributions to the Company's 401k plan in respect of salary deferrals made by participants in the plan during 2013. | |||||||||||||||
Common Stock Warrants | ||||||||||||||||
The Company issued 2,142,858 warrants to purchase common stock with an exercise price of $8.50 per share, subject to certain anti-dilution adjustments, in conjunction with the May 2014 private placement sales of common stock. The warrants became exercisable beginning on May 29, 2014, and will expire on April 15, 2016. The warrants are subject to redemption at the option of the Company at $0.001 per warrant upon not less than thirty days' notice to the holders, only if the Company also redeems the warrants it previously issued pursuant to that certain Warrants Agreement, dated October 15, 2013, by and between the Company and American Stock Transfer & Trust Company, Inc. The warrants were issued in connection with the May 2014 sale of 21,428,580 common shares, and the proceeds for the sale of the common shares and the warrants have been reflected in the Company's capital accounts as increases to common stock and additional paid in capital. | ||||||||||||||||
Preferred Dividends Incurred | ||||||||||||||||
A summary of the Company's preferred dividends for the three and nine months ended September 30, 2014 and 2013 is presented below: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Dividend on Eureka Hunter Holdings Series A Preferred Units | $ | 4,338 | $ | 3,771 | $ | 12,619 | $ | 10,441 | ||||||||
Accretion of the carrying value of the Eureka Hunter Holdings Series A Preferred Units | 2,306 | 1,826 | 6,583 | 4,990 | ||||||||||||
Dividend on Series C Preferred Stock | 2,562 | 2,562 | 7,686 | 7,686 | ||||||||||||
Dividend on Series D Preferred Stock | 4,424 | 4,424 | 13,273 | 13,231 | ||||||||||||
Dividend on Series E Preferred Stock | 1,862 | 1,834 | 5,557 | 5,686 | ||||||||||||
Total dividends on Preferred Stock | $ | 15,492 | $ | 14,417 | $ | 45,718 | $ | 42,034 | ||||||||
Net Income or Loss per Share Data | ||||||||||||||||
Basic income or loss per common share is computed by dividing the income or loss attributable to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income or loss per common share considers the impact to net income and common shares for the potential dilution from stock options and stock appreciation rights, common stock purchase warrants and any outstanding convertible securities. | ||||||||||||||||
The Company has issued potentially dilutive instruments in the form of restricted common stock of Magnum Hunter granted and not yet issued, common stock warrants, common stock options granted to the Company's employees and directors, and the Company's Series E Preferred Stock. The Company did not include any of these instruments in its calculation of diluted loss per share during the periods presented, because to include them would be anti-dilutive due to the Company's loss from continuing operations during those periods. | ||||||||||||||||
The following table summarizes the types of potentially dilutive securities outstanding as of September 30, 2014 and 2013: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands of shares) | ||||||||||||||||
Series E Preferred Stock | 10,946 | 11,185 | ||||||||||||||
Warrants | 19,214 | 30,407 | ||||||||||||||
Unvested restricted shares | 1,445 | — | ||||||||||||||
Common stock options and stock appreciation rights | 13,295 | 18,358 | ||||||||||||||
Total | 44,900 | 59,950 | ||||||||||||||
REDEEMABLE_PREFERRED_STOCK
REDEEMABLE PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
REDEEMABLE PREFERRED STOCK | ' |
NOTE 13 - REDEEMABLE PREFERRED STOCK | |
Eureka Hunter Holdings Series A Preferred Units | |
On March 21, 2012, Eureka Hunter Holdings entered into a Series A Convertible Preferred Unit Purchase Agreement (the "Unit Purchase Agreement") with Magnum Hunter and Ridgeline, an affiliate of ArcLight. Pursuant to this Unit Purchase Agreement, Ridgeline committed, subject to certain conditions, to purchase up to $200.0 million of Eureka Hunter Holdings Series A Preferred Units, representing membership interests of Eureka Hunter Holdings, of which $200.0 million had been purchased as of September 30, 2014. | |
During the nine months ended September 30, 2014, Eureka Hunter Holdings issued 610,000 Eureka Hunter Holdings Series A Preferred Units to Ridgeline for net proceeds of $12.0 million, net of transaction costs. The Eureka Hunter Holdings Series A Preferred Units outstanding at September 30, 2014 represented 40.9% of the ownership of Eureka Hunter Holdings on a basis as converted to Class A Common Units of Eureka Hunter Holdings. | |
During the nine months ended September 30, 2014, Eureka Hunter Holdings issued 97,492 Eureka Hunter Holdings Series A Preferred Units as payment of $1.9 million in distributions paid-in-kind to holders of the Series A Preferred Units. The fair value of the embedded derivative feature of the outstanding Eureka Hunter Holdings Series A Preferred Units was determined to be $173.2 million at September 30, 2014. | |
Dividend expense included accretion of the Eureka Hunter Holdings Series A Preferred Units of $2.3 million and $6.6 million for the three and nine months ended September 30, 2014, and $1.8 million and $5.0 million for the three and nine months ended September 30, 2013, respectively. | |
On September 16, 2014, the Company entered into an agreement (the "Transaction Agreement") with MSI relating to a separate purchase agreement between MSI and Ridgeline providing for the purchase by MSI of all convertible preferred and common equity interests in Eureka Hunter Holdings owned by Ridgeline. | |
The Transaction Agreement provided for a New LLC Agreement of Eureka Hunter Holdings to be entered into by Magnum Hunter, MSI and the minority interest members of Eureka Hunter Holdings contingent upon and contemporaneously with the closing of MSI's purchase of Ridgeline's equity interests in Eureka Hunter Holdings, which occurred on October 3, 2014. In connection with the first closing on October 3, 2014, all of the Eureka Hunter Holdings Series A Preferred Units and Class A Common Units of Eureka Hunter Holdings acquired by MSI from Ridgeline were converted into a new class of equity interests of Eureka Hunter Holdings, and all equity interests owned by MSI will have a liquidation preference under certain circumstances. The conversion of the Eureka Hunter Holdings Series A Preferred Units to a new class of equity resulted in an extinguishment of the Eureka Hunter Holdings Series A Preferred Units and the issuance of a new class of equity initially recorded at fair value. See "Note 20 - Subsequent Events". |
TAXES
TAXES | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Taxes | ' | |||||||||||||||
NOTE 14 - TAXES | ||||||||||||||||
The Company's income tax benefit from continuing operations for the three and nine months ended September 30, 2014 and 2013 was: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Deferred | $ | — | $ | 582 | $ | — | $ | 47,227 | ||||||||
Income tax benefit | $ | — | $ | 582 | $ | — | $ | 47,227 | ||||||||
The Company recognizes deferred income taxes for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective tax basis and net operating loss and credit carryforwards. The Company maintains a full valuation allowance on deferred tax assets where the realization of those deferred tax assets is not more likely than not. The valuation allowance will continue to be recognized until the realization of future deferred tax benefits is more likely than not to be utilized. The Company files income tax returns in the United States, various states and Canada. As of September 30, 2014, no adjustments have been proposed by any tax jurisdiction that would have a significant impact on the Company's liquidity, future results of operations or financial position. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||||||||||
NOTE 15 - RELATED PARTY TRANSACTIONS | |||||||||||||||||
The following table sets forth the related party balances as of September 30, 2014 and December 31, 2013: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Green Hunter (1) | |||||||||||||||||
Accounts payable - net | $ | 355 | $ | 23 | |||||||||||||
Derivative assets (2) | $ | 83 | $ | 79 | |||||||||||||
Investments (2) | $ | 2,385 | $ | 2,262 | |||||||||||||
Notes receivable (2) | $ | 1,360 | $ | 1,768 | |||||||||||||
Prepaid expenses | $ | — | $ | 9 | |||||||||||||
The Company holds investments in a related party consisting of 1,846,722 shares of common stock of GreenHunter with a carrying value of $154,252 as of September 30, 2014 and 88,000 shares of Series C preferred stock of GreenHunter with a carrying value of $2.2 million as of September 30, 2014. | |||||||||||||||||
The following table sets forth the related party transaction activities for the three and nine months ended September 30, 2014 and 2013, respectively: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
GreenHunter | |||||||||||||||||
Salt water disposal (1) | $ | 820 | $ | 623 | $ | 1,754 | $ | 2,069 | |||||||||
Equipment rental (1) | 74 | 95 | 215 | 167 | |||||||||||||
Gas gathering-trucking (1) | 132 | — | 532 | — | |||||||||||||
MAG tank panels (1) | — | — | 800 | — | |||||||||||||
Office space rental | — | — | 36 | — | |||||||||||||
Interest income from note receivable (2) | 38 | 51 | 121 | 159 | |||||||||||||
Dividends earned from Series C shares | 55 | 73 | 165 | 165 | |||||||||||||
Unrealized gain/(loss) on investments (2) | (38 | ) | (24 | ) | 123 | 653 | |||||||||||
Pilatus Hunter, LLC | |||||||||||||||||
Airplane rental expenses (3) | 49 | 26 | 207 | 94 | |||||||||||||
_________________________________ | |||||||||||||||||
-1 | GreenHunter is an entity of which Gary C. Evans, the Company's Chairman and CEO, is the Chairman, a major shareholder and interim CEO. Eagle Ford Hunter received, and Triad Hunter and Viking International Resources Co., Inc., wholly-owned subsidiaries of the Company, receive services related to brine water and rental equipment from GreenHunter and its affiliated companies, White Top Oilfield Construction, LLC and Black Water Services, LLC. The Company believes that such services were and are provided at competitive market rates and were and are comparable to, or more attractive than, rates that could be obtained from unaffiliated third party suppliers of such services. | ||||||||||||||||
-2 | On February 17, 2012, the Company sold its wholly-owned subsidiary, Hunter Disposal, to GreenHunter Water, LLC ("GreenHunter Water"), a wholly-owned subsidiary of GreenHunter. The Company recognized an embedded derivative asset resulting from the conversion option under the convertible promissory note it received as partial consideration for the sale. See "Note 8 - Fair Value of Financial Instruments" for additional information. The Company has recorded interest income as a result of the note receivable from GreenHunter. Also as a result of this transaction, the Company has an equity method investment in GreenHunter that is included in derivatives and other long-term assets and an available for sale investment in GreenHunter included in investments. | ||||||||||||||||
-3 | The Company rented an airplane for business use for certain members of Company management at various times from Pilatus Hunter, LLC, an entity 100% owned by Mr. Evans. Airplane rental expenses are recorded in general and administrative expense. | ||||||||||||||||
In connection with the sale of Hunter Disposal, Triad Hunter entered into agreements with Hunter Disposal and GreenHunter Water for wastewater hauling and disposal capacity in Kentucky, Ohio, and West Virginia and a five-year tank rental agreement with GreenHunter Water. | |||||||||||||||||
As of September 30, 2014, Mr. Evans, the Company's Chairman and Chief Executive Officer, held 27,641 Class A Common Units of Eureka Hunter Holdings. On October 3, 2014, in connection with the New LLC Agreement, these Class A Common Units were converted into Series A-1 Common Units. See "Note 20 - Subsequent Events". |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
NOTE 16 - COMMITMENTS AND CONTINGENCIES | |
Commitment for Firm Transportation | |
On August 18, 2014, Triad Hunter executed a Precedent Agreement for Texas Gas Transmission LLC's ("TGT") Northern Supply Access Line (the "TGT Transportation Services Agreement"). Through executing the TGT Transportation Services Agreement, Triad Hunter committed to purchase 100,000 MMBtu per day of firm transportation capacity on TGT's Northern Supply Access Line. The term of the TGT Transportation Services Agreement will commence with the date the pipeline project is available for service, currently anticipated to be in early 2017, and will end 15 years thereafter. The execution of a Firm Transportation Agreement is contingent upon TGT receiving appropriate approvals from the Federal Energy Regulatory Commission ("FERC") for their pipeline project. Upon executing a Firm Transportation Agreement, the Company will have minimum annual contractual obligations for reservation charges of approximately $12.8 million over the 15 year term of the agreement. | |
On October 21, 2014, Triad Hunter executed a Credit Support Agreement with TGT pursuant to which Triad Hunter agreed to provide, at discrete points in time, letters of credit to TGT tied to the expected payments for firm transportation. See "Note 20 - Subsequent Events" for additional information. | |
Agreement to Purchase Utica Shale Acreage | |
On August 12, 2013, Triad Hunter entered into an asset purchase agreement with MNW Energy, LLC ("MNW"). MNW is an Ohio limited liability company that represents an informal association of various land owners, lessees and sub-lessees of mineral acreage who own or have rights in mineral acreage located in Monroe, Noble and/or Washington Counties, Ohio. Pursuant to the purchase agreement, Triad Hunter has agreed to acquire from MNW up to 32,000 net mineral acres, including currently leased and subleased acreage, located in such counties, over a period of time, in staggered closings, subject to certain conditions. On December 30, 2013, a lawsuit was filed against the Company, Triad Hunter, MNW and others by Dux Petroleum, LLC ("Dux")asserting certain claims relating to the acreage covered by the asset purchase agreement with MNW. As a result of the litigation, no purchases were made during the first quarter of 2014. On May 28, 2014, the litigation was settled. As part of the settlement, the Company and Triad Hunter agreed to collectively pay Dux the aggregate amount of $500,000. Subsequent to the settlement of the lawsuit, Triad Hunter resumed closings of lease acquisitions from MNW. On June 5, 2014, Triad Hunter closed on the acquisition of 11,128 net leasehold acres for $45.9 million from MNW. To date, under the asset purchase agreement, Triad Hunter has now acquired a total of approximately 17,000 net leasehold acres from MNW, or approximately 53% of the approximately 32,000 total net leasehold acres anticipated under the asset purchase agreement. | |
Takeover Bid | |
On June 20, 2014, the Company lodged a Bidder’s Statement with the Australian Securities and Investments Commission, through its wholly owned subsidiary, Outback Shale Hunter Pty Ltd, an Australian company, to commence an off-market takeover offer (the "Offer") for Ambassador Oil and Gas Limited, an Australian company listed on the Australian Securities Exchange ("ASX") (ASX: AQO) ("Ambassador"). Pursuant to the Offer, the Company offered one share of its common stock, par value $0.01 per share, for every 23.6 ordinary (or common) shares of Ambassador. The Offer closed on September 5, 2014. Ambassador shareholders holding 23,116 shares of Ambassador ordinary (or common) shares, representing less than 1% of the total number of Ambassador shares outstanding, accepted the Offer. In October 2014, the Company issued a total of 980 shares of its common stock to the Ambassador shareholders who accepted the Offer. | |
Settlement Agreement with Seminole Energy Services | |
On January 10, 2014, the Company and certain of its subsidiaries entered into an Omnibus Settlement Agreement and Release (the "Settlement Agreement") dated January 9, 2014 with Seminole Energy Services, LLC and certain of its affiliates (collectively, "Seminole"). In connection with and pursuant to the terms of the Settlement Agreement, the Company and Seminole agreed to release and discharge each other from all claims and causes of action alleged in, arising from or related to certain legal proceedings and to terminate, amend and enter into certain new, related agreements effective immediately prior to year-end on December 31, 2013 (the "New Agreements"). | |
By entering into the New Agreements, the Company and Seminole restructured their existing agreements. The Company obtained a reduction in gas gathering rates it pays for natural gas owned or controlled by the Company that is gathered on the Stone Mountain Gathering System. The Company and Seminole collectively agreed to construct an enhancement of the Rogersville Plant designed to recover less ethane and more propane from the natural gas processed at the Rogersville Plant. The parties also agreed to reduce and extend the Company's contractual horizontal well drilling obligations owed to Seminole. The Company's drilling obligation to Seminole, which required the Company to drill and complete four wells in southern Appalachia, expired on June 30, 2014, and, pursuant to the Settlement Agreement, the Company paid Seminole $450,000 as a result of the Company's decision not to drill two out of the required four wells. | |
The Company and Seminole also agreed to modify the natural gas processing rates the Company will pay for processing at the Rogersville Plant, the Company's allocation of NGL recovered from gas processed and the costs of blend stock necessary to blend with the NGL produced from the Rogersville Plant, and certain deductions to the NGL purchase price the Company will pay Seminole for the Company's NGL produced from the Rogersville Plant. Seminole sold to the Company Seminole's 50% interest in a natural gas gathering trunk line and treatment facility located in southwestern Muhlenberg County, Kentucky, which had previously been owned equally by Seminole and the Company. | |
Drilling Rig Purchase | |
During June 2014, the Company, through its 100% owned subsidiary, Alpha Hunter Drilling, LLC, signed an agreement to purchase a new drilling rig for a total purchase price of approximately $6.5 million, including a $1.3 million deposit due on July 1, 2014 with the remainder due upon delivery on January 15, 2015. | |
PVA Arbitration Decision | |
On July 25, 2014, the Company received the final determination from the arbitrator in the disagreement related to the final working capital adjustments pertaining to the sale of Eagle Ford Hunter to Penn Virginia in 2013. In accordance with ASC 855, the Company took this final determination into account in estimating its liability as of June 30, 2014. As a result, the Company recorded a total liability of $33.7 million, plus accrued interest of $1.3 million, as of June 30, 2014 based upon the final determination made by the arbitrator. This liability was settled in cash on July 31, 2014. The arbitrator declined to rule, on the basis of lack of authority, on two claims made by Penn Virginia related to working capital adjustments governed by a transition services agreement in the amount of $7.8 million. Any potential liability from these claims cannot currently be estimated. | |
Legal Proceedings | |
Securities Cases | |
On April 23, 2013, Anthony Rosian, individually and on behalf of all other persons similarly situated, filed a class action complaint in the United States District Court, Southern District of New York, against the Company and certain of its officers, two of whom, at that time, also served as directors, and one of whom continues to serve as a director. On April 24, 2013, Horace Carvalho, individually and on behalf of all other persons similarly situated, filed a similar class action complaint in the United States District Court, Southern District of Texas, against the Company and certain of its officers. Several substantially similar putative class actions were filed in the Southern District of New York and in the Southern District of Texas. All such cases are collectively referred to as the Securities Cases. The cases filed in the Southern District of Texas have since been dismissed. The cases filed in the Southern District of New York were consolidated and have since been dismissed. The plaintiffs in the Securities Cases had filed a consolidated amended complaint alleging that the Company made certain false or misleading statements in its filings with the SEC, including statements related to the Company's internal and financial controls, the calculation of non-cash share-based compensation expense, the late filing of the Company's 2012 Form 10-K, the dismissal of Magnum Hunter's previous independent registered accounting firm, the Company’s characterization of the auditors’ position with respect to the dismissal, and other matters identified in the Company's April 16, 2013 Form 8-K, as amended. The consolidated amended complaint asserted claims under Sections 10(b) and 20 of the Exchange Act based on alleged false statements made regarding these issues throughout the alleged class period, as well as claims under Sections 11, 12, and 15 of the Securities Act based on alleged false statements and omissions regarding the Company’s internal controls made in connection with a public offering that Magnum Hunter completed on May 14, 2012. The consolidated amended complaint demanded that the defendants pay unspecified damages to the class action plaintiffs, including damages allegedly caused by the decline in the Company's stock price between February 22, 2013 and April 22, 2013. In January 2014, the Company and the individual defendants filed a motion to dismiss the Securities Cases. On June 23, 2014, the United States District Court for the Southern District of New York granted the Company’s and the individual defendants' motion to dismiss the Securities Cases and, accordingly, the Securities Cases have now been dismissed. The plaintiffs have appealed the decision to the U.S. Court of Appeals for the Second Circuit, which the Company intends to vigorously defend. It is possible that additional investor lawsuits could be filed over these events. | |
On May 10, 2013, Steven Handshu filed a stockholder derivative suit in the 151st Judicial District Court of Harris County, Texas on behalf of the Company against the Company's directors and senior officers. On June 6, 2013, Zachariah Hanft filed another stockholder derivative suit in the Southern District of New York on behalf of the Company against the Company's directors and senior officers. On June 18, 2013, Mark Respler filed another stockholder derivative suit in the District of Delaware on behalf of the Company against the Company's directors and senior officers. On June 27, 2013, Timothy Bassett filed another stockholder derivative suit in the Southern District of Texas on behalf of the Company against the Company's directors and senior officers. On September 16, 2013, the Southern District of Texas allowed Joseph Vitellone to substitute for Mr. Bassett as plaintiff in that action. On March 19, 2014 Richard Harveth filed another stockholder derivative suit in the 125th District Court of Harris County, Texas. These suits are collectively referred to as the Derivative Cases. The Derivative Cases assert that the individual defendants unjustly enriched themselves and breached their fiduciary duties to the Company by publishing allegedly false and misleading statements to the Company's investors regarding the Company's business and financial position and results, and allegedly failing to maintain adequate internal controls. The complaints demand that the defendants pay unspecified damages to the Company, including damages allegedly sustained by the Company as a result of the alleged breaches of fiduciary duties by the defendants, as well as disgorgement of profits and benefits obtained by the defendants, and reasonable attorneys', accountants' and experts' fees and costs to the plaintiff. On December 20, 2013, the United States District Court for the Southern District of Texas granted the Company’s motion to dismiss the stockholder derivative case maintained by Joseph Vitellone and entered a final judgment of dismissal. The court held that Mr. Vitellone failed to plead particularized facts demonstrating that pre-suit demand on the Company’s board was excused. In addition, on December 13, 2013, the 151st Judicial District Court of Harris County, Texas dismissed the lawsuit filed by Steven Handshu for want of prosecution after the plaintiff failed to serve any defendant in that matter. On January 21, 2014, the Hanft complaint was dismissed with prejudice after the plaintiff in that action filed a voluntary motion for dismissal. On February 18, 2014, the United States District Judge for the District of Delaware granted the Company’s supplemental motion to dismiss the Derivative Case filed by Mark Respler. All of the Derivative Cases have now been dismissed, except the Derivative Case filed by Richard Harveth, for which the Company is presently seeking dismissal. It is possible that additional stockholder derivative suits could be filed over these events. | |
In addition, the Company has received several demand letters from stockholders seeking books and records relating to the allegations in the Securities Cases and the Derivative Cases under Section 220 of the Delaware General Corporation Law. On September 17, 2013, Anthony Scavo, who is one of the stockholders that made a demand, filed a books and records action in the Delaware Court of Chancery pursuant to Section 220 of the Delaware General Corporation Law (the "Scavo Action"). The Scavo Action seeks various books and records relating to the claims in the Securities Cases and the Derivative Cases, as well as costs and attorneys’ fees. The Company has filed an answer in the Scavo Action, which has now been dismissed. It is possible that additional similar actions may be filed and that similar stockholder demands could be made. | |
In April 2013, the Company also received a letter from the SEC stating that the SEC's Division of Enforcement was conducting an inquiry regarding the Company's internal controls, change in outside auditors and public statements to investors and asking the Company to preserve documents relating to these matters. The Company is complying with this request. On December 30, 2013, the Company received a document subpoena relating to the issues identified in the April 2013 letter, and the SEC has also issued subpoenas for testimony and has taken testimony from certain individuals. The Company intends to cooperate with the subpoenas. | |
Any potential liability from these claims cannot currently be estimated. | |
Twin Hickory Matter | |
On April 11, 2013, a flash fire occurred at Eureka Hunter Pipeline’s Twin Hickory site located in Tyler County, West Virginia. The incident occurred during a pigging operation at a natural gas receiving station. Two employees of third-party contractors received fatal injuries. Another employee of a third-party contractor was injured. | |
In mid-February 2014, the estate of one of the deceased third-party contractor employees sued Eureka Hunter Pipeline and certain other parties in Karen S. Phipps v. Eureka Hunter Pipeline, LLC et al., Civil Action No. 14-C-41, in the Circuit Court of Ohio County, West Virginia. In October 2014, in Exterran Energy Solutions, LP v. Eureka Hunter Pipeline, LLC and Magnum Hunter Resources Corporation, Civil Action No. 2014-63353, in the District Court of Harris County, Texas, Exterran Energy Solutions, LP, one of the co-defendants in the Phipps lawsuit, filed suit against the Company and Eureka Hunter Pipeline seeking a declaratory judgment that Eureka Hunter Pipeline is obligated to indemnify Exterran with respect to the Phipps lawsuit. In April 2014, the estate of the other deceased third-party contractor employee sued the Company, Eureka Hunter Pipeline and certain other parties in Antoinette M. Miller v. Magnum Hunter Resources Corporation et al, Civil Action No. 14-C-111, in the Circuit Court of Ohio County, West Virginia. The plaintiffs allege that Eureka Hunter Pipeline and the other defendants engaged in certain negligent and reckless conduct which resulted in the wrongful death of the third-party contractor employees. The plaintiffs have demanded judgment for an unspecified amount of compensatory, general and punitive damages. Various cross-claims have been asserted. In May 2014, the injured third-party contractor employee sued Magnum Hunter Resources Corporation and certain other parties in Jonathan Whisenhunt v. Magnum Hunter Resources Corporation et al, Civil Action No. 14-C-135, in the Circuit Court of Ohio County, West Virginia. Investigation regarding the incident is ongoing. It is not possible to predict at this juncture the extent to which, if at all, Eureka Hunter Pipeline or any related entities will incur liability or damages because of this incident. However, the Company believes that its insurance coverage will be sufficient to cover any losses or liabilities it may incur as a result of this incident. | |
PRC Williston Matter | |
On December 16, 2013, Drawbridge Special Opportunities Fund LP and Fortress Value Recovery Fund I LLC f/k/a D.B. Zwirn Special Opportunities Fund, L.P. (together, the "Plaintiffs") filed suit against PRC Williston in the Court of Chancery of the State of Delaware. PRC Williston and the Plaintiffs entered into Participation Agreements in February 2007 in connection with the Plaintiffs extending credit to PRC Williston pursuant to a credit agreement entitling the Plaintiffs to a 12.5% collective interest in any distributions in respect of the equity interests of the members of PRC Williston. Plaintiffs claim that they are entitled to compensation for 12.5% of alleged past distributions on equity from PRC Williston to Magnum Hunter and 12.5% of any transfers of funds to Magnum Hunter from the proceeds of the December 30, 2013 sale of PRC Williston’s assets. On December 23, 2013, the Chancery Court entered a temporary restraining order prohibiting PRC Williston from transferring, assigning, removing, distributing or otherwise displacing to Magnum Hunter, Magnum Hunter’s creditors, or any other person or entity, $5.0 million of the proceeds received by PRC Williston in connection with the sale of its assets. On March 18, 2014, the Court granted Plaintiffs’ motion for a preliminary injunction, extending the relief granted by the temporary restraining order until after a full trial on the merits. | |
On July 24, 2014, the Company, PRC Williston, and the Plaintiffs executed a Settlement and Release Agreement ("the Settlement Agreement"). Per the terms of the Settlement Agreement, PRC Williston paid approximately $2.9 million in cash to Drawbridge Special Opportunities Fund LP. As a result of the Settlement Agreement, the Company, PRC Williston, and the Plaintiffs agreed to release each other from all claims, past, present or future, related to the dispute. In addition, with the execution of the Settlement Agreement, the parties agreed to terminate, in all respects, the Participation Agreements and that none of the parties would have any further rights or obligations thereunder. With the cash settlement payment and the termination of the Participation Agreements, the Company now has rights and claims to 100% of the equity interests in PRC Williston and its remaining assets and liabilities. Consequently, there is no longer any non-controlling interest in PRC Williston's equity reflected in our consolidated financial statements. | |
General | |
We are also a defendant in several other lawsuits that have arisen in the ordinary course of business. While the outcome of these lawsuits cannot be predicted with certainty, management does not expect any of these to have a material adverse effect on our consolidated financial condition or results of operations. |
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ' | |||||||
NOTE 17 - SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
The following table summarizes cash paid (received) for interest and income taxes, as well as non-cash investing transactions: | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Cash paid for interest | $ | 38,565 | $ | 38,225 | ||||
Non-cash transactions | ||||||||
Common stock issued for 401k matching contributions | $ | 1,593 | $ | 1,192 | ||||
Non-cash consideration received from sale of assets | $ | 9,447 | $ | — | ||||
Change in accrued capital expenditures | $ | 129,778 | $ | (5,742 | ) | |||
Non-cash additions to asset retirement obligation | $ | 2,439 | $ | 2,089 | ||||
Eureka Hunter Holdings Series A Preferred Unit dividends paid in kind | $ | 1,950 | $ | 6,367 | ||||
SEGMENT_REPORTING
SEGMENT REPORTING | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
SEGMENT REPORTING | ' | |||||||||||||||||||||||||||
NOTE 18 - SEGMENT REPORTING | ||||||||||||||||||||||||||||
Magnum Hunter has three reportable current operating segments: U.S. upstream, midstream and marketing, and oilfield services represent the current operating segments of the Company. Beginning September 30, 2013, the Canadian upstream segment, comprised of the WHI Canada operations, was classified as held for sale on the consolidated balance sheet and as a discontinued operation on the consolidated statement of operations. The Company sold 100% of the equity in WHI Canada in May 2014. | ||||||||||||||||||||||||||||
The following tables set forth operating activities by segment for the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
As of and for the Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
U.S. Upstream | Canadian Upstream | Midstream and Marketing | Oilfield Services | Corporate Unallocated | Inter-segment Eliminations | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 63,438 | $ | — | $ | 11,845 | $ | 8,176 | $ | — | $ | (3,789 | ) | $ | 79,670 | |||||||||||||
Depletion, depreciation, amortization and accretion | 31,217 | — | 4,224 | 929 | — | — | 36,370 | |||||||||||||||||||||
Gain on sale of assets, net | (7,988 | ) | — | (12 | ) | — | — | — | (8,000 | ) | ||||||||||||||||||
Other operating expenses | 87,035 | — | 7,350 | 6,569 | 11,711 | (3,789 | ) | 108,876 | ||||||||||||||||||||
Other income (expense) | 1,907 | — | (58,078 | ) | (205 | ) | (9,237 | ) | — | (65,613 | ) | |||||||||||||||||
Income (loss) from continuing operations before income tax | (44,919 | ) | — | (57,795 | ) | 473 | (20,948 | ) | — | (123,189 | ) | |||||||||||||||||
Total income (loss) from discontinued operations, net of tax 1 | (259 | ) | — | — | — | 1 | — | (258 | ) | |||||||||||||||||||
Net income (loss) | $ | (45,178 | ) | $ | — | $ | (57,795 | ) | $ | 473 | $ | (20,947 | ) | $ | — | $ | (123,447 | ) | ||||||||||
Total assets | $ | 1,475,305 | $ | — | $ | 443,008 | $ | 45,661 | $ | 74,614 | $ | (5,023 | ) | $ | 2,033,565 | |||||||||||||
Total capital expenditures | $ | 104,265 | $ | — | $ | 88,525 | $ | 3,628 | $ | 21 | $ | — | $ | 196,439 | ||||||||||||||
_________________________________ | ||||||||||||||||||||||||||||
-1 | Gain (loss) on disposal of discontinued operations related to WHI Canada is included in the Corporate Unallocated segment, as the Company sold 100% of its ownership interest in the entity. | |||||||||||||||||||||||||||
As of and for the Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
U.S. Upstream | Canadian Upstream | Midstream and Marketing | Oilfield Services | Corporate Unallocated | Inter-segment Eliminations | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 59,325 | $ | — | $ | 14,618 | $ | 6,448 | $ | — | $ | (2,100 | ) | $ | 78,291 | |||||||||||||
Depletion, depreciation, amortization and accretion | 25,233 | — | 3,174 | 720 | — | — | 29,127 | |||||||||||||||||||||
Loss on sale of assets, net | 40,952 | — | — | — | — | — | 40,952 | |||||||||||||||||||||
Other operating expenses | 100,484 | — | 11,140 | 4,931 | 11,457 | 74 | 128,086 | |||||||||||||||||||||
Other income (expense) | 2,038 | — | (16,572 | ) | (141 | ) | (20,814 | ) | 2,268 | (33,221 | ) | |||||||||||||||||
Income (loss) from continuing operations before income tax | (105,306 | ) | — | (16,268 | ) | 656 | (32,271 | ) | 94 | (153,095 | ) | |||||||||||||||||
Income tax benefit (expense) | 17,794 | 926 | — | — | (18,138 | ) | — | 582 | ||||||||||||||||||||
Total income (loss) from discontinued operations, net of tax | (13,881 | ) | (132,861 | ) | — | — | 1,742 | (94 | ) | (145,094 | ) | |||||||||||||||||
Net income (loss) | $ | (101,393 | ) | $ | (131,935 | ) | $ | (16,268 | ) | $ | 656 | $ | (48,667 | ) | $ | — | $ | (297,607 | ) | |||||||||
Total assets | $ | 1,406,515 | $ | 106,438 | $ | 269,692 | $ | 42,648 | $ | 62,182 | $ | (1,659 | ) | $ | 1,885,816 | |||||||||||||
Total capital expenditures | $ | 149,577 | $ | 181 | $ | 19,918 | $ | 5,850 | $ | 504 | $ | — | $ | 176,030 | ||||||||||||||
As of and for the Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
U.S. Upstream | Canadian Upstream | Midstream and Marketing | Oilfield Services | Corporate Unallocated | Inter-segment Eliminations | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 223,788 | $ | — | $ | 98,697 | $ | 23,882 | $ | — | $ | (14,752 | ) | $ | 331,615 | |||||||||||||
Depletion, depreciation, amortization and accretion | 87,345 | — | 11,831 | 2,557 | — | — | 101,733 | |||||||||||||||||||||
Gain on sale of assets, net | (4,231 | ) | — | (12 | ) | (369 | ) | — | — | (4,612 | ) | |||||||||||||||||
Other operating expenses | 197,013 | — | 86,120 | 19,643 | 35,253 | (14,752 | ) | 323,277 | ||||||||||||||||||||
Other income (expense) | 1,739 | — | (98,505 | ) | (625 | ) | (54,979 | ) | — | (152,370 | ) | |||||||||||||||||
Income (loss) from continuing operations before income tax | (54,600 | ) | — | (97,747 | ) | 1,426 | (90,232 | ) | — | (241,153 | ) | |||||||||||||||||
Total income (loss) from discontinued operations, net of tax 1 | (7,283 | ) | 10,636 | — | — | (12,775 | ) | — | (9,422 | ) | ||||||||||||||||||
Net income (loss) | $ | (61,883 | ) | $ | 10,636 | $ | (97,747 | ) | $ | 1,426 | $ | (103,007 | ) | $ | — | $ | (250,575 | ) | ||||||||||
Total assets | $ | 1,475,305 | $ | — | $ | 443,008 | $ | 45,661 | $ | 74,614 | $ | (5,023 | ) | $ | 2,033,565 | |||||||||||||
Total capital expenditures | $ | 320,719 | $ | 305 | $ | 171,152 | $ | 6,575 | $ | 127 | $ | — | $ | 498,878 | ||||||||||||||
_________________________________ | ||||||||||||||||||||||||||||
-1 | Gain (loss) on disposal of discontinued operations related to WHI Canada is included in the Corporate Unallocated segment, as the Company sold 100% of its ownership interest in the entity. | |||||||||||||||||||||||||||
As of and for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
U.S. Upstream | Canadian Upstream | Midstream and Marketing | Oilfield Services | Corporate Unallocated | Inter-segment Eliminations | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 158,217 | $ | — | $ | 48,071 | $ | 13,873 | $ | — | $ | (5,802 | ) | $ | 214,359 | |||||||||||||
Depletion, depreciation, amortization and accretion | 69,420 | — | 9,142 | 1,579 | — | — | 80,141 | |||||||||||||||||||||
Loss on sale of assets, net | 42,110 | — | — | 4 | — | — | 42,114 | |||||||||||||||||||||
Other operating expenses | 198,363 | — | 41,276 | 12,884 | 38,932 | (3,628 | ) | 287,827 | ||||||||||||||||||||
Other income (expense) | 440 | — | (24,261 | ) | (372 | ) | (47,330 | ) | 2,288 | (69,235 | ) | |||||||||||||||||
Income (loss) from continuing operations before income tax | (151,236 | ) | — | (26,608 | ) | (966 | ) | (86,262 | ) | 114 | (264,958 | ) | ||||||||||||||||
Income tax benefit | 23,560 | — | — | — | 23,667 | — | 47,227 | |||||||||||||||||||||
Total income (loss) from discontinued operations, net of tax | 181,233 | (134,070 | ) | — | — | (6,571 | ) | (114 | ) | 40,478 | ||||||||||||||||||
Net income (loss) | $ | 53,557 | $ | (134,070 | ) | $ | (26,608 | ) | $ | (966 | ) | $ | (69,166 | ) | $ | — | $ | (177,253 | ) | |||||||||
Total assets | $ | 1,406,515 | $ | 106,438 | $ | 269,692 | $ | 42,648 | $ | 62,182 | $ | (1,659 | ) | $ | 1,885,816 | |||||||||||||
Total capital expenditures | $ | 322,768 | $ | 14,317 | $ | 55,003 | $ | 19,971 | $ | 927 | $ | — | $ | 412,986 | ||||||||||||||
CONDENSED_CONSOLIDATING_GUARAN
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Guarantees [Abstract] | ' | |||||||||||||||||||
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS | ' | |||||||||||||||||||
NOTE 19 - CONDENSED CONSOLIDATED GUARANTOR FINANCIAL STATEMENTS | ||||||||||||||||||||
Guarantor Subsidiaries | ||||||||||||||||||||
Certain of the Company’s subsidiaries, including Alpha Hunter Drilling, LLC, Bakken Hunter, Shale Hunter, Magnum Hunter Marketing, LLC, Magnum Hunter Production, Inc., NGAS Hunter, LLC, Triad Hunter, and Viking International Resources, Co., Inc. (collectively, "Guarantor Subsidiaries"), jointly and severally guarantee on a senior unsecured basis, the obligations of the Company under all the Senior Notes issued under the indenture entered into by the Company on May 16, 2012, as supplemented. The Guarantor Subsidiaries also may guarantee any debt of the Company issued pursuant to the Form S-3 Registration Statement filed by the Company with the SEC on August 5, 2014. | ||||||||||||||||||||
These condensed consolidating guarantor financial statements have been revised to reflect Eagle Ford Hunter and PRC Williston as non-guarantors as the subsidiaries are no longer guarantors of the Company's Senior Notes. | ||||||||||||||||||||
Condensed consolidating financial information for Magnum Hunter Resources Corporation, the Guarantor Subsidiaries and the other subsidiaries of the Company (the "Non Guarantor Subsidiaries") as of September 30, 2014 and December 31, 2013, and for the three and nine months ended September 30, 2014 and 2013, are as follows: | ||||||||||||||||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | $ | 52,405 | $ | 43,367 | $ | 10,301 | $ | (5,022 | ) | $ | 101,051 | |||||||||
Intercompany accounts receivable | 1,084,519 | — | — | (1,084,519 | ) | — | ||||||||||||||
Property and equipment (using successful efforts method of accounting) | 5,614 | 1,390,673 | 395,027 | — | 1,791,314 | |||||||||||||||
Investment in subsidiaries | 193,337 | 100,392 | — | (293,729 | ) | — | ||||||||||||||
Assets held for sale and other | 16,594 | 87,291 | 37,315 | — | 141,200 | |||||||||||||||
Total Assets | $ | 1,352,469 | $ | 1,621,723 | $ | 442,643 | $ | (1,383,270 | ) | $ | 2,033,565 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Current liabilities | $ | 40,822 | $ | 124,895 | $ | 94,550 | $ | (5,025 | ) | $ | 255,242 | |||||||||
Intercompany accounts payable | — | 1,044,555 | 42,201 | (1,086,756 | ) | — | ||||||||||||||
Long-term liabilities | 856,161 | 45,822 | 253,257 | — | 1,155,240 | |||||||||||||||
Redeemable preferred stock | 100,000 | — | 151,685 | — | 251,685 | |||||||||||||||
Shareholders' equity (deficit) | 355,486 | 406,451 | (99,050 | ) | (291,489 | ) | 371,398 | |||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,352,469 | $ | 1,621,723 | $ | 442,643 | $ | (1,383,270 | ) | $ | 2,033,565 | |||||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | $ | 53,161 | $ | 43,841 | $ | 27,096 | $ | (3,372 | ) | $ | 120,726 | |||||||||
Intercompany accounts receivable | 965,138 | — | — | (965,138 | ) | — | ||||||||||||||
Property and equipment (using successful efforts method of accounting) | 7,214 | 1,272,027 | 234,838 | — | 1,514,079 | |||||||||||||||
Investment in subsidiaries | 372,236 | 102,314 | — | (474,550 | ) | — | ||||||||||||||
Other assets | 17,308 | 100,894 | 103,644 | — | 221,846 | |||||||||||||||
Total Assets | $ | 1,415,057 | $ | 1,519,076 | $ | 365,578 | $ | (1,443,060 | ) | $ | 1,856,651 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Current liabilities | $ | 54,826 | $ | 97,520 | $ | 34,929 | $ | (3,410 | ) | $ | 183,865 | |||||||||
Intercompany accounts payable | — | 921,237 | 43,866 | (965,103 | ) | — | ||||||||||||||
Long-term liabilities | 818,651 | 39,067 | 127,663 | — | 985,381 | |||||||||||||||
Redeemable preferred stock | 100,000 | — | 136,675 | — | 236,675 | |||||||||||||||
Shareholders' equity (deficit) | 441,580 | 461,252 | 22,445 | (474,547 | ) | 450,730 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,415,057 | $ | 1,519,076 | $ | 365,578 | $ | (1,443,060 | ) | $ | 1,856,651 | |||||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Revenues | $ | 10 | $ | 72,809 | $ | 11,141 | $ | (4,290 | ) | $ | 79,670 | |||||||||
Expenses | 21,317 | 115,817 | 70,015 | (4,290 | ) | 202,859 | ||||||||||||||
Income (loss) from continuing operations before equity in net income of subsidiaries | (21,307 | ) | (43,008 | ) | (58,874 | ) | — | (123,189 | ) | |||||||||||
Equity in net income of subsidiaries | (105,762 | ) | (1,093 | ) | — | 106,855 | — | |||||||||||||
Income (loss) from continuing operations before income tax | (127,069 | ) | (44,101 | ) | (58,874 | ) | 106,855 | (123,189 | ) | |||||||||||
Income tax benefit (expense) | — | — | — | — | — | |||||||||||||||
Income (loss) from continuing operations | (127,069 | ) | (44,101 | ) | (58,874 | ) | 106,855 | (123,189 | ) | |||||||||||
Income from discontinued operations, net of tax | — | — | — | — | — | |||||||||||||||
Gain on sale of discontinued operations, net of tax | (259 | ) | — | 1 | — | (258 | ) | |||||||||||||
Net income (loss) | (127,328 | ) | (44,101 | ) | (58,873 | ) | 106,855 | (123,447 | ) | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 2,764 | 2,764 | |||||||||||||||
Net income (loss) attributable to Magnum Hunter Resources Corporation | (127,328 | ) | (44,101 | ) | (58,873 | ) | 109,619 | (120,683 | ) | |||||||||||
Dividends on preferred stock | (8,848 | ) | — | (6,644 | ) | — | (15,492 | ) | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (136,176 | ) | $ | (44,101 | ) | $ | (65,517 | ) | $ | 109,619 | $ | (136,175 | ) | ||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Revenues | $ | 29 | $ | 71,246 | $ | 9,112 | $ | (2,096 | ) | $ | 78,291 | |||||||||
Expenses | 35,350 | 171,183 | 27,045 | (2,192 | ) | 231,386 | ||||||||||||||
Income (loss) from continuing operations before equity in net income of subsidiaries | (35,321 | ) | (99,937 | ) | (17,933 | ) | 96 | (153,095 | ) | |||||||||||
Equity in net income of subsidiaries | (236,767 | ) | 163 | (28,543 | ) | 265,147 | — | |||||||||||||
Income (loss) from continuing operations before income tax | (272,088 | ) | (99,774 | ) | (46,476 | ) | 265,243 | (153,095 | ) | |||||||||||
Income tax benefit (expense) | (18,138 | ) | 17,793 | 927 | — | 582 | ||||||||||||||
Income (loss) from continuing operations | (290,226 | ) | (81,981 | ) | (45,549 | ) | 265,243 | (152,513 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | 1,743 | — | (77,220 | ) | (96 | ) | (75,573 | ) | ||||||||||||
Gain on sale of discontinued operations, net of tax | (13,880 | ) | — | (55,641 | ) | — | (69,521 | ) | ||||||||||||
Net income (loss) | (302,363 | ) | (81,981 | ) | (178,410 | ) | 265,147 | (297,607 | ) | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 725 | 725 | |||||||||||||||
Net income (loss) attributable to Magnum Hunter Resources Corporation | (302,363 | ) | (81,981 | ) | (178,410 | ) | 265,872 | (296,882 | ) | |||||||||||
Dividends on preferred stock | (8,820 | ) | — | (5,597 | ) | — | (14,417 | ) | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (311,183 | ) | $ | (81,981 | ) | $ | (184,007 | ) | $ | 265,872 | $ | (311,299 | ) | ||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Revenues | $ | 124 | $ | 313,898 | $ | 32,846 | $ | (15,253 | ) | $ | 331,615 | |||||||||
Expenses | 92,622 | 363,587 | 131,812 | (15,253 | ) | 572,768 | ||||||||||||||
Income (loss) from continuing operations before equity in net income of subsidiaries | (92,498 | ) | (49,689 | ) | (98,966 | ) | — | (241,153 | ) | |||||||||||
Equity in net income of subsidiaries | (153,569 | ) | (1,922 | ) | — | 155,491 | — | |||||||||||||
Income (loss) from continuing operations before income tax | (246,067 | ) | (51,611 | ) | (98,966 | ) | 155,491 | (241,153 | ) | |||||||||||
Income tax benefit (expense) | — | — | — | — | — | |||||||||||||||
Income (loss) from continuing operations | (246,067 | ) | (51,611 | ) | (98,966 | ) | 155,491 | (241,153 | ) | |||||||||||
Income from discontinued operations, net of tax | — | — | 4,561 | — | 4,561 | |||||||||||||||
Gain (loss) on sale of discontinued operations, net of tax | (20,058 | ) | — | 6,075 | — | (13,983 | ) | |||||||||||||
Net income (loss) | (266,125 | ) | (51,611 | ) | (88,330 | ) | 155,491 | (250,575 | ) | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 3,653 | 3,653 | |||||||||||||||
Net income (loss) attributable to Magnum Hunter Resources Corporation | (266,125 | ) | (51,611 | ) | (88,330 | ) | 159,144 | (246,922 | ) | |||||||||||
Dividends on preferred stock | (26,516 | ) | — | (19,202 | ) | — | (45,718 | ) | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (292,641 | ) | $ | (51,611 | ) | $ | (107,532 | ) | $ | 159,144 | $ | (292,640 | ) | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Revenues | $ | (134 | ) | $ | 194,599 | $ | 25,693 | $ | (5,799 | ) | $ | 214,359 | ||||||||
Expenses | 91,559 | 337,827 | 55,845 | (5,914 | ) | 479,317 | ||||||||||||||
Income (loss) from continuing operations before equity in net income of subsidiaries | (91,693 | ) | (143,228 | ) | (30,152 | ) | 115 | (264,958 | ) | |||||||||||
Equity in net income of subsidiaries | (274,930 | ) | (479 | ) | (37,930 | ) | 313,339 | — | ||||||||||||
Income (loss) from continuing operations before income tax | (366,623 | ) | (143,707 | ) | (68,082 | ) | 313,454 | (264,958 | ) | |||||||||||
Income tax benefit (expense) | 23,667 | 23,560 | — | — | 47,227 | |||||||||||||||
Income (loss) from continuing operations | (342,956 | ) | (120,147 | ) | (68,082 | ) | 313,454 | (217,731 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | (6,570 | ) | 22,661 | (78,429 | ) | (115 | ) | (62,453 | ) | |||||||||||
Gain on sale of discontinued operations, net of tax | 158,572 | — | (55,641 | ) | — | 102,931 | ||||||||||||||
Net income (loss) | (190,954 | ) | (97,486 | ) | (202,152 | ) | 313,339 | (177,253 | ) | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 1,614 | 1,614 | |||||||||||||||
Net income (loss) attributable to Magnum Hunter Resources Corporation | (190,954 | ) | (97,486 | ) | (202,152 | ) | 314,953 | (175,639 | ) | |||||||||||
Dividends on preferred stock | (26,603 | ) | — | (15,431 | ) | — | (42,034 | ) | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (217,557 | ) | $ | (97,486 | ) | $ | (217,583 | ) | $ | 314,953 | $ | (217,673 | ) | ||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Net income (loss) | $ | (127,328 | ) | $ | (44,101 | ) | $ | (58,873 | ) | $ | 106,855 | $ | (123,447 | ) | ||||||
Foreign currency translation gain | — | — | — | — | — | |||||||||||||||
Unrealized loss on available for sale securities | — | (2,583 | ) | — | — | (2,583 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | — | — | — | — | — | |||||||||||||||
Comprehensive income (loss) | (127,328 | ) | (46,684 | ) | (58,873 | ) | 106,855 | (126,030 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | — | — | — | 2,764 | 2,764 | |||||||||||||||
Comprehensive income (loss) attributable to Magnum Hunter Resources Corporation | $ | (127,328 | ) | $ | (46,684 | ) | $ | (58,873 | ) | $ | 109,619 | $ | (123,266 | ) | ||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Net income (loss) | $ | (302,363 | ) | $ | (81,981 | ) | $ | (178,410 | ) | $ | 265,147 | $ | (297,607 | ) | ||||||
Foreign currency translation loss | — | — | 3,856 | — | 3,856 | |||||||||||||||
Unrealized gain (loss) on available for sale securities | 3,562 | 173 | — | — | 3,735 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (8,262 | ) | — | — | — | (8,262 | ) | |||||||||||||
Comprehensive income (loss) | (307,063 | ) | (81,808 | ) | (174,554 | ) | 265,147 | (298,278 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | — | — | — | 725 | 725 | |||||||||||||||
Comprehensive income (loss) attributable to Magnum Hunter Resources Corporation | $ | (307,063 | ) | $ | (81,808 | ) | $ | (174,554 | ) | $ | 265,872 | $ | (297,553 | ) | ||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Net income (loss) | $ | (266,125 | ) | $ | (51,611 | ) | $ | (88,330 | ) | $ | 155,491 | $ | (250,575 | ) | ||||||
Foreign currency translation loss | — | — | (1,218 | ) | — | (1,218 | ) | |||||||||||||
Unrealized loss on available for sale securities | — | (3,188 | ) | — | — | (3,188 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 20,741 | — | — | — | 20,741 | |||||||||||||||
Comprehensive income (loss) | (245,384 | ) | (54,799 | ) | (89,548 | ) | 155,491 | (234,240 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | — | — | — | 3,653 | 3,653 | |||||||||||||||
Comprehensive income (loss) attributable to Magnum Hunter Resources Corporation | $ | (245,384 | ) | $ | (54,799 | ) | $ | (89,548 | ) | $ | 159,144 | $ | (230,587 | ) | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Net income (loss) | $ | (190,954 | ) | $ | (97,486 | ) | $ | (202,152 | ) | $ | 313,339 | $ | (177,253 | ) | ||||||
Foreign currency translation loss | — | — | (7,943 | ) | — | (7,943 | ) | |||||||||||||
Unrealized gain (loss) on available for sale securities | 8,262 | (78 | ) | — | — | 8,184 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (8,262 | ) | — | — | — | (8,262 | ) | |||||||||||||
Comprehensive income (loss) | (190,954 | ) | (97,564 | ) | (210,095 | ) | 313,339 | (185,274 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | — | — | — | 1,614 | 1,614 | |||||||||||||||
Comprehensive income (loss) attributable to Magnum Hunter Resources Corporation | $ | (190,954 | ) | $ | (97,564 | ) | $ | (210,095 | ) | $ | 314,953 | $ | (183,660 | ) | ||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Cash flow from operating activities | $ | (261,039 | ) | $ | 222,520 | $ | 52,074 | $ | — | $ | 13,555 | |||||||||
Cash flow from investing activities | 63,502 | (211,560 | ) | (99,246 | ) | — | (247,304 | ) | ||||||||||||
Cash flow from financing activities | 193,885 | 2,232 | 38,542 | — | 234,659 | |||||||||||||||
Effect of exchange rate changes on cash | — | — | 44 | — | 44 | |||||||||||||||
Net increase (decrease) in cash | (3,652 | ) | 13,192 | (8,586 | ) | — | 954 | |||||||||||||
Cash at beginning of period | 47,895 | (17,651 | ) | 11,469 | — | 41,713 | ||||||||||||||
Cash at end of period | $ | 44,243 | $ | (4,459 | ) | $ | 2,883 | $ | — | $ | 42,667 | |||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Cash flow from operating activities | $ | (264,051 | ) | $ | 236,112 | $ | 107,136 | $ | — | $ | 79,197 | |||||||||
Cash flow from investing activities | 422,056 | (245,179 | ) | (132,054 | ) | — | 44,823 | |||||||||||||
Cash flow from financing activities | (152,265 | ) | 2,105 | 23,893 | — | (126,267 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | (93 | ) | — | (93 | ) | |||||||||||||
Net increase (decrease) in cash | 5,740 | (6,962 | ) | (1,118 | ) | — | (2,340 | ) | ||||||||||||
Cash at beginning of period | 26,872 | (4,187 | ) | 34,938 | — | 57,623 | ||||||||||||||
Cash at end of period | $ | 32,612 | $ | (11,149 | ) | $ | 33,820 | $ | — | $ | 55,283 | |||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended | |
Sep. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
SUBSEQUENT EVENTS | ' | |
NOTE 20 - SUBSEQUENT EVENTS | ||
Second Amended and Restated Eureka Hunter Holdings LLC Agreement | ||
On September 16, 2014, the Company entered into a Transaction Agreement with MSI relating to a separate purchase agreement between MSI and Ridgeline providing for the purchase by MSI of all the Eureka Hunter Holdings Series A Preferred Units and Class A Common Units owned by Ridgeline. The Transaction Agreement contemplates two closings comprised of (i) the purchase by MSI of Ridgeline's equity interests in Eureka Hunter Holdings and the execution of the New LLC Agreement; and (ii) the purchase by MSI of an additional equity interest in Eureka Hunter Holdings from MHR as described below. On October 3, 2014, the first closing contemplated in the Transaction Agreement was consummated between MSI and Ridgeline. The Company was not a party to the transaction between MSI and Ridgeline. | ||
Contemporaneously with the first closing, the New LLC Agreement for Eureka Hunter Holdings became effective. In accordance with the terms of the New LLC Agreement, all of the Eureka Hunter Holdings Series A Preferred Units and Class A Common Units of Eureka Hunter Holdings acquired by MSI from Ridgeline were converted into a new class of common equity interests of Eureka Hunter Holdings (the "Series A-2 Units"). Magnum Hunter's Class A Common Units held on the date of the first closing were also converted into a new class of common equity (the "Series A-1 Common Units"). The Series A-2 Units will have a liquidation preference to the Series A-1 Common Units if a Sale Transaction (as defined in the New LLC Agreement) or Initial Public Offering (as defined in the New LLC Agreement) occurs subsequent to January 1, 2017. The liquidation preference available to the Series A-2 Unit members provides a specified Internal Rate of Return (as defined in the New LLC Agreement), depending upon the proceeds available for distribution upon a Sale Transaction or an Initial Public Offering. Once the Internal Rate of Return (as defined in the New LLC Agreement) applicable to Series A-2 Unit members is achieved, Series A-2 Unit members and Series A-1 Unit members will participate in remaining distributions according to their Upside Sharing Percentages (as defined in the New LLC Agreement). | ||
As a result of the conversion of the Eureka Hunter Holdings Series A Preferred Units into Series A-2 Units, the features, terms, and cash flows associated with the Series A-2 Units are substantially different than those of the former Eureka Hunter Holdings Series A Preferred Units. Consequently, it is anticipated that the conversion will be treated as an extinguishment of a class of equity, and an issuance of a new class of equity that will be recorded initially at fair value. Additionally, the accrued and unpaid dividends outstanding on the Eureka Hunter Holdings Series A Preferred Units and the fair value associated with the embedded derivative attached to the Eureka Hunter Holdings Series A Preferred Units, which has been accounted for as a liability in these consolidated financial statements, will be included in determining the total carrying value of the equity to be extinguished. | ||
The Transaction Agreement further provides that Magnum Hunter will sell to MSI in a second closing, that is expected to occur in mid-January 2015, a portion of its Eureka Hunter Holdings Series A-1 Common Units, which, assuming completion of the full amount of additional capital contributions expected to be made by MSI, would constitute approximately 6.5% of the total common equity interests then outstanding in Eureka Hunter Holdings. Any Series A-1 Common Units purchased by MSI from the Company under a second closing will convert immediately into Series A-2 Units. The purchase price of such additional equity interests is expected to be approximately $65 million. Such closing, together with follow on capital contributions expected to be made by MSI in 2014, will result in Magnum Hunter and MSI owning approximately equal equity interests in Eureka Hunter Holdings which collectively will constitute an approximate 98% equity interest in Eureka Hunter Holdings. Upon consummation of the second closing, the Company will reassess its subsequent accounting for Eureka Hunter Holdings in accordance with the criteria for consolidation. | ||
Also, in accordance with the terms and conditions of the New LLC Agreement, Magnum Hunter will have the right, under certain circumstances, to not make its portion of certain required future capital contributions to Eureka Hunter, and, if Magnum Hunter validly exercises its right to do so, MSI will make the capital contributions which otherwise would be made by Magnum Hunter, with Magnum Hunter having the right to make capital contributions within 180 days that will bring Magnum Hunter's ownership interest back to the level prior to the capital call. This catch-up feature will be at no cost to Magnum Hunter but will be subject to a maximum of $40 million for each 180-day period. | ||
Sales of Certain North Dakota Assets | ||
On October 15, 2014, Bakken Hunter closed on the sale of certain non-operated working interests in oil and natural gas properties located in Divide County, North Dakota for cash consideration of $84.8 million, subject to customary purchase price adjustments. The effective date of the sale is August 1, 2014. | ||
Fourth Amended and Restated Credit Agreement and New Second Lien Term Loan | ||
Revolving Credit Facility | ||
On October 22, 2014, the Company entered into a New Credit Agreement, by and among the Company, as borrower, Bank of Montreal, as administrative agent, the lenders party thereto and the agents party thereto. The New Credit Agreement amended and restated the Credit Agreement, dated as of December 13, 2013, by and among those parties, as amended. | ||
The New Credit Agreement provides for an asset-based, senior secured revolving credit facility maturing October 22, 2018 (the "Revolving Facility") with an initial borrowing base of $50 million. The Revolving Facility is governed by a semi-annual borrowing base redetermination derived from the Company’s proved crude oil and natural gas reserves, and based on such redeterminations, the borrowing base may be decreased or increased up to a maximum commitment level of $250 million. As discussed below, however, provisions of the Second Lien Term Loan Agreement limit the amount of indebtedness that the Company may incur under the New Credit Agreement. | ||
The terms of the New Credit Agreement provide that the Revolving Facility may be used for loans and, subject to a $50 million sublimit, letters of credit. The New Credit Agreement provides for a commitment fee of 0.5% based on the unused portion of the borrowing base under the Revolving Facility. | ||
Borrowings under the Revolving Facility will, at the Company’s election, bear interest at either (i) an alternate base rate ("ABR") equal to the higher of (A) the prime rate (as determined by Bank of Montreal) (B) the overnight federal funds effective rate, plus 0.50% per annum, and (C) the adjusted one-month LIBOR plus 1.00% or (ii) the adjusted LIBO Rate (which is based on LIBOR), plus, in each of the cases described in clauses (i) and (ii), an applicable margin ranging from 1.00% to 2.00% for ABR loans and from 2.00% to 3.00% for adjusted LIBO Rate loans. Accrued interest on each ABR loan is payable in arrears on the last day of each March, June, September and December and accrued interest on each adjusted LIBO Rate loan is payable in arrears on the last day of the Interest Period (as defined in the New Credit Agreement) applicable to the borrowing of which such adjusted LIBO Rate loan is a part and, in the case of an adjusted LIBO Rate borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period. | ||
The New Credit Agreement contains negative covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to, with certain exceptions, (i) incur indebtedness, (ii) grant liens, (iii) make certain payments, (iv) change the nature of its business, (v) dispose of all or substantially all of its assets or enter into mergers, consolidations or similar transactions, (vi) make investments, loans or advances, (vii) pay cash dividends, unless certain conditions are met, and with respect to the payment of dividends on preferred stock, subject to (A) no Event of Default (as defined in the New Credit Agreement) existing, (B) after giving effect to any such preferred stock dividend payment, the Company maintaining availability under the borrowing base in an amount greater than the greater of (x) 2.50% percent of the borrowing base then in effect or (y) $5,000,000 and (C) a "basket" of $45,000,000 per year, (viii) enter into transactions with affiliates, and (ix) enter into hedging transactions. | ||
In addition, the New Credit Agreement requires the Company to satisfy certain financial covenants, including maintaining: | ||
(i) | a current ratio of not less than 1.0 to 1.0, commencing with the fiscal quarter ending December 31, 2014; | |
(ii) | a leverage ratio (secured net debt to EBITDAX (as defined in the New Credit Agreement) with, beginning with the fiscal quarter ending March 31, 2016, a limitation on netting of up to $100,000,000 of unencumbered cash) of not more than (A) 2.5 to 1.0 as of the last day of the fiscal quarter ending December 31, 2014, (B) 2.25 to 1.00 as of the last day of the fiscal quarter ending March 31, 2015 and (C) 2.0 to 1.0 as of the last day of the fiscal quarter ending June 30, 2015 and each fiscal quarter ending thereafter; and | |
(iii) | the proved reserves based asset coverage ratios contained in the Second Lien Term Loan Agreement described below. | |
The obligations of the Company under the New Credit Agreement may be accelerated upon the occurrence of an Event of Default. Events of Default include customary events for a financing agreement of this type, including, without limitation, payment defaults, defaults in the performance of affirmative or negative covenants, the inaccuracy of representations and warranties, bankruptcy or related defaults, defaults relating to judgments and the occurrence of a Change of Control (as defined in the New Credit Agreement) and any "Event of Default" under the Second Lien Term Loan Agreement, subject to certain cure periods. | ||
Subject to certain exceptions, the Revolving Facility is secured by substantially all of the assets of the Company and its restricted subsidiaries, including, without limitation, no less than 90% of the present value (with a discount rate of 10%) of the proved oil and gas reserves of the Company and its restricted subsidiaries. Additionally, any collateral pledged as security for the Second Lien Term Loan (as defined below) is required to be pledged as security for the New Credit Agreement. In connection with the New Credit Agreement, the Company and its restricted subsidiaries also entered into customary ancillary agreements and arrangements, which among other things, provide that the Revolving Facility is unconditionally guaranteed by such restricted subsidiaries. The Company’s restricted subsidiaries under the New Credit Agreement and the Second Lien Term Loan do not include the Company’s majority-owned subsidiaries through which the Company conducts its midstream operations, including Eureka Hunter Holdings, Eureka Hunter Pipeline and TransTex Hunter. | ||
Second Lien Term Loan | ||
On October 22, 2014, the Company also entered into a Second Lien Credit Agreement (the "Second Lien Term Loan Agreement"), by and among the Company, as borrower, Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, the lenders party thereto and the agents party thereto. | ||
The Second Lien Term Loan Agreement provides for a $340 million term loan facility (the "Second Lien Term Loan"), secured by, subject to certain exceptions, a second lien on substantially all of the assets of the Company and its restricted subsidiaries. The entire $340 million Second Lien Term Loan was drawn on October 22, 2014. The Company used the proceeds of the Second Lien Term Loan to repay amounts outstanding under its Credit Agreement, to pay transaction expenses related to the New Credit Agreement and the Second Lien Term Loan Agreement, and for working capital and general corporate purposes. Amounts borrowed under the Second Lien Term Loan that are repaid or prepaid may not be reborrowed. The Second Lien Term Loan has a maturity date of October 22, 2019 and will amortize (beginning December 31, 2014) in equal quarterly installments in an aggregate annual amount equal to 1.00% of the original principal amount of the Second Lien Term Loan. | ||
Borrowings under the Second Lien Term Loan will, at the Company’s election, bear interest at either (i) an alternate base rate (which is equal to the higher of (A) the prime rate (as determined by Credit Suisse), (B) the overnight federal funds effective rate, plus 0.50% per annum, and (C) the adjusted one-month LIBOR plus 1.00%) plus 6.50% or (ii) the adjusted LIBO Rate (which is based on LIBOR) plus 7.50%. | ||
The Second Lien Term Loan Agreement contains negative covenants substantially similar to those in the New Credit Agreement that, among other things, restrict the ability of the Company and its restricted subsidiaries to, with certain exceptions: (i) incur indebtedness; (ii) grant liens; (iii) dispose of all or substantially all of its assets or enter into mergers, consolidations, or similar transactions; (iv) change the nature of its business; (v) make investments, loans, or advances or guarantee obligations; (vi) pay cash dividends or make certain other payments; (vii) enter into transactions with affiliates; (viii) enter into sale and leaseback transactions; (ix) enter into hedging transactions; and (x) amend its organizational documents or the New Credit Agreement. The Second Lien Term Loan Agreement limits the amount of indebtedness that the Company may incur under the New Credit Agreement to the greater of (a) the sum of $50 million plus the aggregate amount of loans repaid or prepaid under the Second Lien Term Loan Agreement and (b) an amount equal to 25% of Adjusted Consolidated Net Tangible Assets (as defined in the Second Lien Term Loan Agreement) of the Company and its restricted subsidiaries; provided, in the case of clause (b), after giving effect to such incurrence of indebtedness and the application of proceeds therefrom, aggregate secured debt may not exceed 25% of the Adjusted Consolidated Net Tangible Assets of the Company and its restricted subsidiaries as of the date of such incurrence. | ||
The Second Lien Term Loan Agreement also requires the Company to satisfy certain financial covenants, including maintaining | ||
(i) | a ratio of proved reserves to secured debt of not less than 1.5 to 1.0 and a ratio of proved developed and producing reserves to secured debt of not less than 1.0 to 1.0, each as of the last day of any fiscal quarter commencing with the fiscal quarter ending December 31, 2014; and | |
(ii) | commencing with the fiscal quarter ending March 31, 2016, a leverage ratio (secured net debt to EBITDAX (as defined in the Second Lien Term Loan Agreement) with a limitation on netting of up to $100,000,000 of unencumbered cash) of not more than 2.5 to 1.0 as of the last day of any fiscal quarter for the trailing four-quarter period then ended. | |
The obligations of the Company under the Second Lien Term Loan may be accelerated upon the occurrence of an Event of Default (as defined in the Second Lien Term Loan Agreement). Events of Default are substantially similar to Events of Default under the Credit Agreement (except that a breach of a financial covenant under the New Credit Agreement will not constitute an Event of Default under the Second Lien Term Loan Agreement until acceleration) and include customary events for these types of financings. | ||
In connection with the Second Lien Term Loan Agreement, the Company and its restricted subsidiaries also entered into customary ancillary agreements and arrangements, which among other things, provide that the Second Lien Term Loan is unconditionally guaranteed by such restricted subsidiaries. | ||
Proceeds from the new term loan were used to repay 100% of the outstanding borrowings under the Company's prior revolving credit facility upon closing ($256 million as of September 30, 2014), and to pay fees and expenses associated with the transactions. Additional proceeds and borrowing capacity under the Revolving Facility will be available to fund operations in the Marcellus and Utica Shale plays of West Virginia and Ohio, and for general corporate purposes. | ||
TGT Credit Support Agreement | ||
On October 21, 2014 Triad Hunter executed a Credit Support Agreement with TGT, related to the TGT Transportation Services Agreement executed on August 18, 2014 (the "Precedent Agreement Date"). In accordance with the provisions of the Credit Support Agreement, Triad Hunter will provide TGT with letters of credit on the dates and in the amounts that follow (the "Credit Support Amount"): | ||
(i) | during the period beginning on the date that is fourteen months after the Precedent Agreement Date and ending on the day immediately prior to the date that is twenty-one months after the Precedent Agreement Date, an amount equal to $13 million | |
(ii) | during the period beginning on the date that is twenty-one months after the Precedent Agreement Date and ending on the day immediately prior to the date that is twenty-eight months after the Precedent Agreement Date, an amount equal to $36 million; and | |
(iii) | during the period beginning on the date that is twenty-eight months after the Precedent Agreement Date and ending on the date the Credit Support Agreement terminates, an amount equal to $65 million. | |
Provided however, that the Credit Support Amount shall be subject to reduction (on a cumulative basis) at specified dates depending on Triad Hunter's Interest Coverage Ratio or if Triad Hunter meets the creditworthiness standards established in the Texas Gas FERC Gas Tariff as in effect on such date that Triad Hunter meets the said standard. | ||
REX Transportation Agreement | ||
On October 8, 2014, Triad Hunter executed a Precedent Agreement with Rockies Express Pipeline LLC ("REX"), (the "REX Transportation Services Agreement") for the delivery by Triad Hunter and the transportation by REX of natural gas produced by Triad Hunter. In executing the REX Transportation Services Agreement, Triad Hunter committed to purchase 100,000 MMBtu per day of firm transportation from REX. The term of the REX Transportation Services Agreement will commence with the date the pipeline project is available for service, currently anticipated to between mid-2016 and mid-2017, and will end 15 years thereafter. The execution of a Firm Transportation Agreement is contingent upon REX receiving appropriate approvals from FERC for their pipeline project. Upon executing a Firm Transportation Agreement, the Company will have minimum annual contractual obligations for reservation charges of approximately $16.4 million over the 15 year term of the agreement. | ||
In addition, the Company will be required to provide Credit Support to REX, in the form of a letter of credit, in the initial amount of twenty-seven months of Triad Hunter's reservation charges, or approximately $37 million, within 45 days of executing the REX Transportation Services Agreement. | ||
Amendment to Asset Purchase Agreement and Purchase of Utica Shale Acreage | ||
On October 28, 2014, Triad Hunter and MNW entered into the First Amendment to the Asset Purchase Agreement and Partial Release of Earn-Out Agreement (the "Amendment"). In connection with the asset purchase agreement with MNW dated August 12, 2013, Triad Hunter and MNW also entered into an earn-out agreement dated August 12, 2013 which provided for MNW to perform certain consulting services for Triad Hunter and to be paid for such services through the release by Triad Hunter of escrow funds being withheld from the purchase price at each closing under the asset purchase agreement. The Amendment terminates MNW's obligation to perform further consulting services under the earn-out agreement, provides for the disbursement of funds to MNW that have been withheld from closings to date, and amends the asset purchase agreement to end further withholdings of escrow funds from the purchase price at future closings. | ||
On October 30, 2014, Triad Hunter purchased approximately 5,160 net acres of undeveloped leasehold in the Utica Shale in Ohio for $20.6 million under its asset purchase agreement with MNW and also released $0.4 million in escrowed funds, for a total disbursement to MNW of approximately $21.0 million. Following this purchase, approximately 9,840 net acres remain to be purchased by the Company under the asset purchase agreement with MNW, contingent upon proposed leasehold acreage being cured of title defects. | ||
Sale of Certain West Virginia Assets | ||
On November 3, 2014, Triad Hunter closed on the sale of certain non-core working interests in oil and gas properties located primarily in Calhoun and Roane, Counties, West Virginia, for cash consideration of $1.2 million, subject to customary purchase price adjustments. The effective date of the sale is August 1, 2014. |
GENERAL_Policies
GENERAL (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation and Presentation | ' |
Presentation of Consolidated Financial Statements | |
The accompanying unaudited interim consolidated financial statements of Magnum Hunter are presented in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP"). The preparation of these consolidated financial statements in accordance 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 and the reported amounts of revenue and expenses during reporting periods. Actual results could differ materially from those estimates. | |
In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for the fair statement of the financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The year-end balance sheet data were derived from audited financial statements, but do not include all disclosures required by GAAP. | |
Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with GAAP that would substantially duplicate the disclosures contained in the audited consolidated financial statements as reported in the Company's Annual Report on Form 10-K have been condensed or omitted. | |
Non-controlling Interest in Consolidated Subsidiaries | ' |
Non-Controlling Interest in Consolidated Subsidiaries | |
The Company has consolidated Eureka Hunter Holdings, LLC ("Eureka Hunter Holdings") in which it owned 57.5% as of September 30, 2014 and 56.4% as of December 31, 2013. Eureka Hunter Holdings owns, directly or indirectly, 100% of the equity interests of Eureka Hunter Pipeline, LLC ("Eureka Hunter Pipeline"), TransTex Hunter, LLC ("TransTex Hunter"), and Eureka Hunter Land, LLC. | |
Reclassification of Prior-Year Balances | ' |
Reclassification of Prior-Period Balances | |
Certain prior period balances have been reclassified to correspond with current-year presentation. As a result of the Company's decision in September 2014 to withdraw its plan to divest of its 100% equity interest in MHP and cease all marketing efforts, the results of operations of MHP, which had previously been reported as a component of discontinued operations, have been reclassified to continuing operations for all periods presented, and all assets and liabilities of MHP that were previously reported as assets and liabilities held for sale in our consolidated balance sheet have been reclassified to assets and liabilities held for use as of September 30, 2014. | |
Regulated Activities | ' |
Regulated Activities | |
Energy Hunter Securities, Inc. ("Energy Hunter Securities") is a 100%-owned subsidiary and is a registered broker-dealer and member of the Financial Industry Regulatory Authority ("FINRA"). Among other regulatory requirements, it is subject to the net capital provisions of Rule 15c3-1 under the Securities Exchange Act of 1934, as amended. Because it does not hold customer funds or securities or owe money or securities to customers, Energy Hunter Securities is required to maintain minimum net capital equal to the greater of $5,000 or 6.67% of its aggregate indebtedness. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
Accounting standards-setting organizations frequently issue new or revised accounting rules. The Company regularly reviews all new pronouncements to determine their impact, if any, on its financial statements. | |
In March 2013, the FASB issued Accounting Standards Update ("ASU") 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, to provide guidance on whether to release cumulative translation adjustments ("CTA") upon certain derecognition events. ASU 2013-05 requires a parent company to apply the guidance in ASC Subtopic 830-30 when an entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity. Consequently, the CTA related to a foreign entity is released into net income only if the transaction results in complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets resided; otherwise, no portion of the CTA is released. The Company adopted this pronouncement prospectively on January 1, 2014. The adoption of this updated standard did not have a material impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, an amendment to FASB ASC Topic 740, Income Taxes ("FASB ASC Topic 740"). This update clarified that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The Company adopted this ASU prospectively on January 1, 2014. The adoption of this accounting standard update did not have a material impact on the Company's consolidated financial statements or its financial statement disclosures. | |
In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 updates the requirements for reporting discontinued operations in ASC Subtopic 205-20, Presentation of Financial Statements - Discontinued Operations, by requiring classification as discontinued operations of a component of an entity or a group of components of an entity if the disposal represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results when either 1) the component or group of components of an entity meet the criteria to be classified as held for sale, 2) are disposed of by sale, or 3) are disposed of other than by sale (e.g. abandonment or a distribution to owners in a spinoff). The amendments in this update expand the disclosure requirements related to discontinued operations and disposals of individually significant components that do not qualify for discontinued operations presentation in the financial statements. This ASU is effective prospectively for all disposals (or classification as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and financial statement disclosures. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of the revised standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve that core principle, an entity should apply the following steps: identify the contract(s) with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 requires entities to disclose both quantitative and qualitative information that enables users of financial statements to understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. This amendment is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those reporting periods. The guidance allows for either a "full retrospective" adoption or a "modified retrospective" adoption, however early application is not permitted. The Company is currently evaluating the adoption methods and the impact of this ASU on its consolidated financial statements and financial statement disclosures. | |
In June 2014, the FASB issued ASU 2014-12, Compensation - Stock Compensation: Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU 2014-12 clarifies that a performance target that affects vesting and that could be achieved after the requisite service period should be treated as a performance condition. An entity should apply existing guidance in ASC Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. This amendment is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements and financial statement disclosures. |
DIVESTITURES_AND_DISCONTINUED_1
DIVESTITURES AND DISCONTINUED OPERATIONS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Schedule of Assets and Liabilities Held for Sale | ' | ||||||||||||||||
The following shows the Company's assets and liabilities held for sale at September 30, 2014 and December 31, 2013: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Accounts receivable | $ | — | $ | 4,362 | |||||||||||||
Other current assets | — | 1,004 | |||||||||||||||
Oil and natural gas properties, net | 86,362 | 150,770 | |||||||||||||||
Gas transportation, gathering, and processing equipment and other, net | — | 11,721 | |||||||||||||||
Other long-term assets | — | 196 | |||||||||||||||
Total assets held for sale | $ | 86,362 | $ | 168,053 | |||||||||||||
Accounts payable | $ | — | $ | 7,292 | |||||||||||||
Accrued liabilities and other liabilities | — | 5,573 | |||||||||||||||
Asset retirement obligations | 1,619 | 8,678 | |||||||||||||||
Other long-term liabilities | — | 5,845 | |||||||||||||||
Total liabilities held for sale | $ | 1,619 | $ | 27,388 | |||||||||||||
Schedule of discontinued operations | ' | ||||||||||||||||
The Company included the results of operations of WHI Canada through May 12, 2014 and Eagle Ford Hunter through April 24, 2013 in discontinued operations. The following presents our discontinued operations. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Revenues | $ | — | $ | 7,943 | $ | 8,533 | $ | 62,429 | |||||||||
Expenses | — | (93,755 | ) | (3,976 | ) | (128,464 | ) | ||||||||||
Other income | — | 59 | 4 | 81 | |||||||||||||
Income tax benefit | — | 10,180 | — | 3,501 | |||||||||||||
Income (loss) from discontinued operations, net of tax | — | (75,573 | ) | 4,561 | (62,453 | ) | |||||||||||
Gain (loss) on disposal of discontinued operations, net of taxes | (258 | ) | (69,521 | ) | (13,983 | ) | 102,931 | ||||||||||
Income (loss) from discontinued operations, net of taxes | $ | (258 | ) | $ | (145,094 | ) | $ | (9,422 | ) | $ | 40,478 | ||||||
OIL_NATURAL_GAS_SALES_Tables
OIL & NATURAL GAS SALES (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Schedule of Oil Natural Gas And NGL Revenue | ' | ||||||||||||||||
During the three and nine months ended September 30, 2014 and 2013, the Company recognized sales from oil, natural gas, and natural gas liquids ("NGL") as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
Oil | $ | 34,495 | $ | 40,471 | $ | 111,354 | $ | 103,545 | |||||||||
Natural gas | 18,247 | 12,417 | 74,031 | 41,145 | |||||||||||||
NGL | 9,768 | 6,173 | 36,862 | 12,082 | |||||||||||||
Total oil and natural gas sales | $ | 62,510 | $ | 59,061 | $ | 222,247 | $ | 156,772 | |||||||||
PROPERTY_PLANT_EQUIPMENT_Table
PROPERTY, PLANT, & EQUIPMENT (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||||||
Capitalized Costs Relating to Oil and Gas Producing Activities Disclosure | ' | |||||||||||||||
The historical cost of gas transportation, gathering, and processing equipment and other property, presented on a gross basis with accumulated depreciation, as of September 30, 2014 and December 31, 2013 is summarized as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Gas transportation, gathering and processing equipment and other | $ | 516,258 | $ | 315,642 | ||||||||||||
Less accumulated depreciation | (47,350 | ) | (26,222 | ) | ||||||||||||
Net capitalized costs | $ | 468,908 | $ | 289,420 | ||||||||||||
The following sets forth the net capitalized costs under the successful efforts method for oil and natural gas properties as of: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Mineral interests in properties: | ||||||||||||||||
Unproved mineral rights and leasehold costs | $ | 510,296 | $ | 469,337 | ||||||||||||
Proved mineral rights and leasehold costs | 282,150 | 336,357 | ||||||||||||||
Wells and related equipment and facilities | 735,947 | 536,023 | ||||||||||||||
Advances to operators for wells in progress | 2,508 | 13,571 | ||||||||||||||
Total costs | 1,530,901 | 1,355,288 | ||||||||||||||
Less accumulated depletion, depreciation, and amortization | (208,495 | ) | (130,629 | ) | ||||||||||||
Net capitalized costs | $ | 1,322,406 | $ | 1,224,659 | ||||||||||||
Schedule of the Company's geological and geophysical costs and leasehold abandonments expense | ' | |||||||||||||||
During the three and nine months ended September 30, 2014 and 2013, the Company recognized exploration expense as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Leasehold impairments | $ | 26,922 | $ | 41,624 | $ | 51,305 | $ | 74,249 | ||||||||
Geological and geophysical | 362 | 354 | 1,089 | 1,008 | ||||||||||||
Total exploration expense | $ | 27,284 | $ | 41,978 | $ | 52,394 | $ | 75,257 | ||||||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||
Intangible assets consist primarily of gas gathering and processing contracts and customer relationships. The following table summarizes the Company's net intangible assets as of September 30, 2014 and December 31, 2013: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Customer relationships | $ | 5,434 | $ | 5,434 | |||||
Trademark | 859 | 859 | |||||||
Existing contracts | 4,199 | 4,199 | |||||||
Total intangible assets | 10,492 | 10,492 | |||||||
Less: accumulated amortization | (5,467 | ) | (3,962 | ) | |||||
Intangible assets, net of accumulated amortization | $ | 5,025 | $ | 6,530 | |||||
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory | ' | ||||||||
The following table shows the composition of the Company's inventory as of: | |||||||||
September 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Materials and supplies | $ | 2,228 | $ | 6,790 | |||||
Commodities | 811 | 368 | |||||||
Inventory | $ | 3,039 | $ | 7,158 | |||||
ASSET_RETIREMENT_OBLIGATIONS_T
ASSET RETIREMENT OBLIGATIONS (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Asset Retirement Obligation Disclosure [Abstract] | ' | ||||||
Summary of asset retirement obligation | ' | ||||||
The following table summarizes the Company’s asset retirement obligation ("ARO") activities during the nine-month period ended September 30, 2014 and for the year ended December 31, 2013: | |||||||
30-Sep-14 | 31-Dec-13 | ||||||
(in thousands) | |||||||
Asset retirement obligation at beginning of period | $ | 16,216 | $ | 30,680 | |||
Assumed in acquisitions | — | 17 | |||||
Liabilities incurred | 218 | 253 | |||||
Liabilities settled | (26 | ) | (98 | ) | |||
Liabilities sold | (596 | ) | (7,614 | ) | |||
Accretion expense | 1,731 | 2,264 | |||||
Revisions in estimated liabilities (1) | 2,625 | 1,935 | |||||
Reclassified as liabilities associated with assets held for sale | (1,619 | ) | (11,148 | ) | |||
Reclassified from liabilities associated with assets held for sale | 8,109 | — | |||||
Effect of foreign currency translation | — | (73 | ) | ||||
Asset retirement obligation at end of period | 26,658 | 16,216 | |||||
Less: current portion (included in other liabilities) | (1,482 | ) | (53 | ) | |||
Asset retirement obligation at end of period | $ | 25,176 | $ | 16,163 | |||
________________________________ | |||||||
(1) Revisions in estimated liabilities during 2014 relate to a change in assumptions used with respect to certain wells in the Appalachian Basin in Ohio and West Virginia. Approximately $1.5 million of the revisions in estimated liabilities during 2013 is related to a change in assumptions used with respect to certain wells in the Williston Basin in North Dakota. |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||
Schedule of inputs used to calculated fair value of convertible security embedded derivative | ' | ||||||||||||||||||
The key inputs used in the Black-Scholes option pricing model were as follows: | |||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
Life | 2.4 | ||||||||||||||||||
Risk-free interest rate | 1.03 | % | |||||||||||||||||
Estimated volatility | 40 | % | |||||||||||||||||
Dividend | — | ||||||||||||||||||
GreenHunter stock price at end of period | $ | 1.52 | |||||||||||||||||
The fair value of the bifurcated conversion feature was valued using the "with and without" analysis in a simulation model based upon management's estimate of the expected life of the conversion feature. The key assumptions used in the model to determine fair value at September 30, 2014 were as follows: | |||||||||||||||||||
September 30, 2014 | |||||||||||||||||||
Volatility | 13.7 | % | |||||||||||||||||
Credit spread | 24 | % | |||||||||||||||||
Expected term | 1-2 years | ||||||||||||||||||
Total enterprise value (in millions) | $ | 929.7 | |||||||||||||||||
Schedule of reconciliation of derivative assets and (liabilities) measured at fair value using significant unobservable inputs | ' | ||||||||||||||||||
The following table presents a reconciliation of the financial derivative asset and liability measured at fair value using significant unobservable inputs (Level 3 inputs) for the nine-month period ended September 30, 2014: | |||||||||||||||||||
Preferred Stock Embedded | Convertible Security Embedded | ||||||||||||||||||
Derivative Liability | Derivative Asset | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Fair value as of December 31, 2013 | $ | (75,934 | ) | $ | 79 | ||||||||||||||
Issuance of redeemable preferred stock | (5,479 | ) | — | ||||||||||||||||
Increase in fair value recognized in gain (loss) on derivative contracts, net | (91,792 | ) | 4 | ||||||||||||||||
Fair value as of September 30, 2014 | $ | (173,205 | ) | $ | 83 | ||||||||||||||
Fair value measurements on a recurring basis | ' | ||||||||||||||||||
The following tables present the fair value hierarchy levels of the Company's financial assets and liabilities which are measured and carried at fair value on a recurring basis: | |||||||||||||||||||
Fair Value Measurements on a Recurring Basis | |||||||||||||||||||
30-Sep-14 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Available for sale securities | $ | 8,076 | $ | — | $ | — | |||||||||||||
Commodity derivative assets | — | 2,127 | — | ||||||||||||||||
Convertible security derivative assets | — | — | 83 | ||||||||||||||||
Total assets at fair value | $ | 8,076 | $ | 2,127 | $ | 83 | |||||||||||||
Liabilities | |||||||||||||||||||
Commodity derivative liabilities | $ | — | $ | 114 | $ | — | |||||||||||||
Convertible preferred stock derivative liabilities | — | — | 173,205 | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | 114 | $ | 173,205 | |||||||||||||
Fair Value Measurements on a Recurring Basis | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Assets | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Available for sale securities | $ | 1,819 | $ | — | $ | — | |||||||||||||
Commodity derivative assets | — | 554 | — | ||||||||||||||||
Convertible security derivative assets | — | — | 79 | ||||||||||||||||
Total assets at fair value | $ | 1,819 | $ | 554 | $ | 79 | |||||||||||||
Liabilities | |||||||||||||||||||
Commodity derivative liabilities | $ | — | $ | 2,279 | $ | — | |||||||||||||
Convertible preferred stock derivative liabilities | — | — | 75,934 | ||||||||||||||||
Total liabilities at fair value | $ | — | $ | 2,279 | $ | 75,934 | |||||||||||||
Carrying amounts and fair values of long-term debt | ' | ||||||||||||||||||
The following table presents the carrying amounts and fair values categorized by fair value hierarchy level of the Company's financial instruments not carried at fair value: | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||
Fair Value Hierarchy | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | |||||||||||||||
(in thousands) | |||||||||||||||||||
Senior Notes | Level 2 | $ | 597,313 | $ | 639,000 | $ | 597,230 | $ | 651,300 | ||||||||||
MHR Senior Revolving Credit Facility | Level 3 | $ | 256,000 | $ | 256,000 | $ | 218,000 | $ | 218,000 | ||||||||||
Eureka Hunter Pipeline second lien term loan | Level 3 | $ | — | $ | — | $ | 50,000 | $ | 58,921 | ||||||||||
Eureka Hunter Pipeline Credit Agreement | Level 3 | $ | 80,000 | $ | 80,000 | $ | — | $ | — | ||||||||||
Equipment Notes Payable | Level 3 | $ | 25,149 | $ | 25,170 | $ | 18,615 | $ | 17,676 | ||||||||||
FINANCIAL_INSTRUMENTS_AND_DERI1
FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Summary of changes in investments | ' | ||||||||||||||||||
Below is a summary of changes in investments for the nine months ended September 30, 2014: | |||||||||||||||||||
Available for Sale Securities | Equity Method Investments (1) | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Carrying value as of December 31, 2013 | $ | 1,819 | $ | 940 | |||||||||||||||
Securities received as consideration for assets sold | 9,447 | — | |||||||||||||||||
Equity in net loss recognized in other income (expense) | — | (504 | ) | ||||||||||||||||
Change in fair value recognized in other comprehensive loss | (3,190 | ) | — | ||||||||||||||||
Carrying value as of September 30, 2014 | $ | 8,076 | $ | 436 | |||||||||||||||
(1) Equity method investments includes $282,000 classified as long-term other assets. | |||||||||||||||||||
Schedule of investments by balance sheet grouping | ' | ||||||||||||||||||
The Company's investments have been presented in the consolidated balance sheet as of September 30, 2014 as follows: | |||||||||||||||||||
Available for Sale Securities | Equity Method Investments | Total | |||||||||||||||||
Investments - Current | $ | 8,076 | $ | 154 | $ | 8,230 | |||||||||||||
Other Assets - Long-Term | — | 282 | 282 | ||||||||||||||||
Carrying value as of September 30, 2014 | $ | 8,076 | $ | 436 | $ | 8,512 | |||||||||||||
Summary of cost for equity securities and fair value | ' | ||||||||||||||||||
The cost for equity securities and their respective fair values as of September 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||
September 30, 2014 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||
Securities available for sale, carried at fair value: | |||||||||||||||||||
Equity securities | $ | 9,875 | $ | — | $ | (4,030 | ) | $ | 5,845 | ||||||||||
Equity securities - related party (see "Note 15 - Related Party Transactions") | 2,200 | — | 31 | 2,231 | |||||||||||||||
Total Securities available for sale | $ | 12,075 | $ | — | $ | (3,999 | ) | $ | 8,076 | ||||||||||
December 31, 2013 | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||
Securities available for sale, carried at fair value: | |||||||||||||||||||
Equity securities | $ | 428 | $ | — | $ | (281 | ) | $ | 147 | ||||||||||
Equity securities - related party (see "Note 15 - Related Party Transactions") | 2,200 | — | (528 | ) | 1,672 | ||||||||||||||
Total Securities available for sale | $ | 2,628 | $ | — | $ | (809 | ) | $ | 1,819 | ||||||||||
Estimated fair values of commodity derivatives | ' | ||||||||||||||||||
As of September 30, 2014, the Company had the following commodity derivative instruments: | |||||||||||||||||||
Weighted Average | |||||||||||||||||||
Natural Gas | Period | MMBtu/day | Price per MMBtu | ||||||||||||||||
Collars (1) | Oct 2014- Dec 2014 | 15,000 | $4.27 - $5.23 | ||||||||||||||||
Swaps | Oct 2014 - Dec 2014 | 41,000 | $4.18 | ||||||||||||||||
Jan 2015 - Dec 2015 | 30,000 | $4.12 | |||||||||||||||||
Ceilings purchased (call) | Oct 2014 - Dec 2014 | 16,000 | $5.91 | ||||||||||||||||
Ceilings sold (call) | Oct 2014 - Dec 2014 | 16,000 | $5.91 | ||||||||||||||||
Weighted Average | |||||||||||||||||||
Crude Oil | Period | Bbl/day | Price per Bbl | ||||||||||||||||
Collars (1) | Oct 2014 - Dec 2014 | 663 | $85.00 - $91.25 | ||||||||||||||||
Jan 2015 - Dec 2015 | 259 | $85.00 - $91.25 | |||||||||||||||||
Traditional three-way collars (2) | Oct 2014 - Dec 2014 | 4,000 | $64.94 - $85.00 - $102.50 | ||||||||||||||||
Ceilings sold (call) | Jan 2015 - Dec 2015 | 1,570 | $120.00 | ||||||||||||||||
Floors sold (put) | Oct 2014 - Dec 2014 | 663 | $65.00 | ||||||||||||||||
Jan 2015 - Dec 2015 | 259 | $70.00 | |||||||||||||||||
________________________________ | |||||||||||||||||||
(1) A collar is a sold call and a purchased put. Some collars are "costless" collars with the premiums netting to approximately zero. | |||||||||||||||||||
(2) These three-way collars are a combination of three options: a sold call, a purchased put and a sold put. | |||||||||||||||||||
Schedule of fair value of commodity derivative contracts | ' | ||||||||||||||||||
The following table summarizes the fair value of the Company's commodity and financial derivative contracts as of the dates indicated: | |||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||
Derivatives not designated as hedging instruments | Balance Sheet Classification | September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Commodity | |||||||||||||||||||
Derivative assets | $ | 1,871 | $ | 529 | $ | — | $ | — | |||||||||||
Derivative assets - long-term | 255 | 25 | — | — | |||||||||||||||
Derivative liabilities | — | — | (48 | ) | (1,903 | ) | |||||||||||||
Derivative liabilities - long-term | — | — | (66 | ) | (376 | ) | |||||||||||||
Total commodity | $ | 2,126 | $ | 554 | $ | (114 | ) | $ | (2,279 | ) | |||||||||
Financial | |||||||||||||||||||
Derivative assets | $ | 83 | $ | 79 | $ | — | $ | — | |||||||||||
Derivative liabilities - long-term | — | — | (173,205 | ) | (75,934 | ) | |||||||||||||
Total financial | $ | 83 | $ | 79 | $ | (173,205 | ) | $ | (75,934 | ) | |||||||||
Total derivatives | $ | 2,209 | $ | 633 | $ | (173,319 | ) | $ | (78,213 | ) | |||||||||
Schedule of commodity derivatives and master netting arrangements | ' | ||||||||||||||||||
The tables below summarize the Company's commodity derivatives and the effect of master netting arrangements on the presentation in the Company's consolidated balance sheets as of: | |||||||||||||||||||
September 30, 2014 | |||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset on the Consolidated Balance Sheet | Net Amount | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Current assets: Fair value of derivative contracts | $ | 2,399 | (528 | ) | $ | 1,871 | |||||||||||||
Long-term assets: Fair value of derivative contracts | 377 | (122 | ) | 255 | |||||||||||||||
Current liabilities: Fair value of derivative contracts | (576 | ) | 528 | (48 | ) | ||||||||||||||
Long-term liabilities: Fair value of derivative contracts | (188 | ) | 122 | (66 | ) | ||||||||||||||
$ | 2,012 | — | $ | 2,012 | |||||||||||||||
December 31, 2013 | |||||||||||||||||||
Gross Amounts of Assets and Liabilities | Gross Amounts Offset on the Consolidated Balance Sheet | Net Amount | |||||||||||||||||
(in thousands) | |||||||||||||||||||
Current assets: Fair value of derivative contracts | $ | 4,034 | (3,505 | ) | $ | 529 | |||||||||||||
Long-term assets: Fair value of derivative contracts | 516 | (491 | ) | 25 | |||||||||||||||
Current liabilities: Fair value of derivative contracts | (5,408 | ) | 3,505 | (1,903 | ) | ||||||||||||||
Long-term liabilities: Fair value of derivative contracts | (867 | ) | 491 | (376 | ) | ||||||||||||||
$ | (1,725 | ) | — | $ | (1,725 | ) | |||||||||||||
Schedule of the realized and unrealized gain (loss) on derivatives | ' | ||||||||||||||||||
The following table summarizes the net gain (loss) on all derivative contracts included in gain (loss) on derivative contracts, net on the consolidated statements of operations for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended | ||||||||||||||||||
September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||||
Gain (loss) on settled transactions | $ | 477 | $ | (6,582 | ) | $ | (4,074 | ) | $ | (6,887 | ) | ||||||||
Loss on open contracts | (50,113 | ) | (22,971 | ) | (88,051 | ) | (23,757 | ) | |||||||||||
Total loss | $ | (49,636 | ) | $ | (29,553 | ) | $ | (92,125 | ) | $ | (30,644 | ) |
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||
Schedule of long-term debt | ' | |||||||||||||||
Long-term debt at September 30, 2014 and December 31, 2013 consisted of the following: | ||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Senior Notes payable due May 15, 2020, interest rate of 9.75%, net of unamortized net discount of $2.7 million at September 30, 2014 and December 31, 2013 | $ | 597,313 | $ | 597,230 | ||||||||||||
Various equipment and real estate notes payable with maturity dates January 2015 - April 2021, interest rates of 4.25% - 7.94%(1) | 25,149 | 18,615 | ||||||||||||||
Eureka Hunter Pipeline Credit Agreement due March 28, 2018, interest rate of 3.66% | 80,000 | — | ||||||||||||||
Eureka Hunter Pipeline second lien term loan due August 16, 2018, interest rate of 12.5% | — | 50,000 | ||||||||||||||
MHR Senior Revolving Credit Facility due April 13, 2016, interest rate of 3.06% at September 30, 2014 and 3.56% at December 31, 2013 | 256,000 | 218,000 | ||||||||||||||
958,462 | 883,845 | |||||||||||||||
Less: current portion | (8,670 | ) | (3,967 | ) | ||||||||||||
Total long-term debt obligations, net of current portion | $ | 949,792 | $ | 879,878 | ||||||||||||
_________________________________ | ||||||||||||||||
-1 | Balance as of December 31, 2013 includes notes classified as liabilities associated with assets held for sale of which $0.2 million is current and $3.8 million is long-term. | |||||||||||||||
Schedule of expected approximate annual maturities of debt | ' | |||||||||||||||
The following table presents the scheduled or expected approximate annual maturities of debt, gross of unamortized discount of $2.7 million: | ||||||||||||||||
(in thousands) | ||||||||||||||||
2014 | $ | 2,565 | ||||||||||||||
2015 | 7,717 | |||||||||||||||
2016 | 264,727 | |||||||||||||||
2017 | 2,548 | |||||||||||||||
2018 | 80,559 | |||||||||||||||
Thereafter | 603,032 | |||||||||||||||
Total | $ | 961,148 | ||||||||||||||
Schedule of Interest Expense | ' | |||||||||||||||
The following table sets forth interest expense for the three and nine month periods ended September 30, 2014 and 2013, respectively: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Interest expense incurred on debt, net of amounts capitalized | $ | 17,013 | $ | 14,648 | $ | 53,748 | $ | 49,691 | ||||||||
Amortization and write-off of deferred financing costs | 1,082 | 1,111 | 8,725 | 3,661 | ||||||||||||
Total interest expense | $ | 18,095 | $ | 15,759 | $ | 62,473 | $ | 53,352 | ||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Summary of common stock option and stock appreciation rights | ' | |||||||||||||
A summary of common stock option activity for the nine months ended September 30, 2014 and 2013 is presented below: | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(in thousands of shares) | Weighted Average Exercise Price per Share | |||||||||||||
Outstanding at beginning of period | 16,891 | 14,847 | $ | 5.69 | $ | 6.01 | ||||||||
Granted | — | 4,938 | $ | — | $ | 4.11 | ||||||||
Exercised | (2,355 | ) | (685 | ) | $ | 4.09 | $ | 2.95 | ||||||
Forfeited | (1,241 | ) | (742 | ) | $ | 6.28 | $ | 6 | ||||||
Outstanding at end of period | 13,295 | 18,358 | $ | 5.91 | $ | 5.61 | ||||||||
Exercisable at end of period | 9,179 | 10,512 | $ | 6.22 | $ | 5.86 | ||||||||
Summary of non-vested shares | ' | |||||||||||||
A summary of the Company’s non-vested common stock options and stock appreciation rights for the nine months ended September 30, 2014 and 2013 is presented below: | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
(in thousands of shares) | ||||||||||||||
Non-vested at beginning of period | 6,908 | 6,163 | ||||||||||||
Granted | — | 4,938 | ||||||||||||
Vested | (1,916 | ) | (2,867 | ) | ||||||||||
Forfeited | (876 | ) | (389 | ) | ||||||||||
Non-vested at end of period | 4,116 | 7,845 | ||||||||||||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of dividends paid | ' | |||||||||||||||
A summary of the Company's preferred dividends for the three and nine months ended September 30, 2014 and 2013 is presented below: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Dividend on Eureka Hunter Holdings Series A Preferred Units | $ | 4,338 | $ | 3,771 | $ | 12,619 | $ | 10,441 | ||||||||
Accretion of the carrying value of the Eureka Hunter Holdings Series A Preferred Units | 2,306 | 1,826 | 6,583 | 4,990 | ||||||||||||
Dividend on Series C Preferred Stock | 2,562 | 2,562 | 7,686 | 7,686 | ||||||||||||
Dividend on Series D Preferred Stock | 4,424 | 4,424 | 13,273 | 13,231 | ||||||||||||
Dividend on Series E Preferred Stock | 1,862 | 1,834 | 5,557 | 5,686 | ||||||||||||
Total dividends on Preferred Stock | $ | 15,492 | $ | 14,417 | $ | 45,718 | $ | 42,034 | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||||||||||
The following table summarizes the types of potentially dilutive securities outstanding as of September 30, 2014 and 2013: | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands of shares) | ||||||||||||||||
Series E Preferred Stock | 10,946 | 11,185 | ||||||||||||||
Warrants | 19,214 | 30,407 | ||||||||||||||
Unvested restricted shares | 1,445 | — | ||||||||||||||
Common stock options and stock appreciation rights | 13,295 | 18,358 | ||||||||||||||
Total | 44,900 | 59,950 | ||||||||||||||
TAXES_Tables
TAXES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||||||
The Company's income tax benefit from continuing operations for the three and nine months ended September 30, 2014 and 2013 was: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Deferred | $ | — | $ | 582 | $ | — | $ | 47,227 | ||||||||
Income tax benefit | $ | — | $ | 582 | $ | — | $ | 47,227 | ||||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Schedule of Related Party Balances | ' | ||||||||||||||||
The following table sets forth the related party balances as of September 30, 2014 and December 31, 2013: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Green Hunter (1) | |||||||||||||||||
Accounts payable - net | $ | 355 | $ | 23 | |||||||||||||
Derivative assets (2) | $ | 83 | $ | 79 | |||||||||||||
Investments (2) | $ | 2,385 | $ | 2,262 | |||||||||||||
Notes receivable (2) | $ | 1,360 | $ | 1,768 | |||||||||||||
Prepaid expenses | $ | — | $ | 9 | |||||||||||||
Schedule of Related Party Transactions | ' | ||||||||||||||||
The following table sets forth the related party transaction activities for the three and nine months ended September 30, 2014 and 2013, respectively: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(in thousands) | |||||||||||||||||
GreenHunter | |||||||||||||||||
Salt water disposal (1) | $ | 820 | $ | 623 | $ | 1,754 | $ | 2,069 | |||||||||
Equipment rental (1) | 74 | 95 | 215 | 167 | |||||||||||||
Gas gathering-trucking (1) | 132 | — | 532 | — | |||||||||||||
MAG tank panels (1) | — | — | 800 | — | |||||||||||||
Office space rental | — | — | 36 | — | |||||||||||||
Interest income from note receivable (2) | 38 | 51 | 121 | 159 | |||||||||||||
Dividends earned from Series C shares | 55 | 73 | 165 | 165 | |||||||||||||
Unrealized gain/(loss) on investments (2) | (38 | ) | (24 | ) | 123 | 653 | |||||||||||
Pilatus Hunter, LLC | |||||||||||||||||
Airplane rental expenses (3) | 49 | 26 | 207 | 94 | |||||||||||||
_________________________________ | |||||||||||||||||
-1 | GreenHunter is an entity of which Gary C. Evans, the Company's Chairman and CEO, is the Chairman, a major shareholder and interim CEO. Eagle Ford Hunter received, and Triad Hunter and Viking International Resources Co., Inc., wholly-owned subsidiaries of the Company, receive services related to brine water and rental equipment from GreenHunter and its affiliated companies, White Top Oilfield Construction, LLC and Black Water Services, LLC. The Company believes that such services were and are provided at competitive market rates and were and are comparable to, or more attractive than, rates that could be obtained from unaffiliated third party suppliers of such services. | ||||||||||||||||
-2 | On February 17, 2012, the Company sold its wholly-owned subsidiary, Hunter Disposal, to GreenHunter Water, LLC ("GreenHunter Water"), a wholly-owned subsidiary of GreenHunter. The Company recognized an embedded derivative asset resulting from the conversion option under the convertible promissory note it received as partial consideration for the sale. See "Note 8 - Fair Value of Financial Instruments" for additional information. The Company has recorded interest income as a result of the note receivable from GreenHunter. Also as a result of this transaction, the Company has an equity method investment in GreenHunter that is included in derivatives and other long-term assets and an available for sale investment in GreenHunter included in investments. | ||||||||||||||||
-3 | The Company rented an airplane for business use for certain members of Company management at various times from Pilatus Hunter, LLC, an entity 100% owned by Mr. Evans. Airplane rental expenses are recorded in general and administrative expense. |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Schedule of Cash Flow, Supplemental Disclosures | ' | |||||||
The following table summarizes cash paid (received) for interest and income taxes, as well as non-cash investing transactions: | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Cash paid for interest | $ | 38,565 | $ | 38,225 | ||||
Non-cash transactions | ||||||||
Common stock issued for 401k matching contributions | $ | 1,593 | $ | 1,192 | ||||
Non-cash consideration received from sale of assets | $ | 9,447 | $ | — | ||||
Change in accrued capital expenditures | $ | 129,778 | $ | (5,742 | ) | |||
Non-cash additions to asset retirement obligation | $ | 2,439 | $ | 2,089 | ||||
Eureka Hunter Holdings Series A Preferred Unit dividends paid in kind | $ | 1,950 | $ | 6,367 | ||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||
Details of operating activities by segment | ' | |||||||||||||||||||||||||||
The following tables set forth operating activities by segment for the three and nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||
As of and for the Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
U.S. Upstream | Canadian Upstream | Midstream and Marketing | Oilfield Services | Corporate Unallocated | Inter-segment Eliminations | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 63,438 | $ | — | $ | 11,845 | $ | 8,176 | $ | — | $ | (3,789 | ) | $ | 79,670 | |||||||||||||
Depletion, depreciation, amortization and accretion | 31,217 | — | 4,224 | 929 | — | — | 36,370 | |||||||||||||||||||||
Gain on sale of assets, net | (7,988 | ) | — | (12 | ) | — | — | — | (8,000 | ) | ||||||||||||||||||
Other operating expenses | 87,035 | — | 7,350 | 6,569 | 11,711 | (3,789 | ) | 108,876 | ||||||||||||||||||||
Other income (expense) | 1,907 | — | (58,078 | ) | (205 | ) | (9,237 | ) | — | (65,613 | ) | |||||||||||||||||
Income (loss) from continuing operations before income tax | (44,919 | ) | — | (57,795 | ) | 473 | (20,948 | ) | — | (123,189 | ) | |||||||||||||||||
Total income (loss) from discontinued operations, net of tax 1 | (259 | ) | — | — | — | 1 | — | (258 | ) | |||||||||||||||||||
Net income (loss) | $ | (45,178 | ) | $ | — | $ | (57,795 | ) | $ | 473 | $ | (20,947 | ) | $ | — | $ | (123,447 | ) | ||||||||||
Total assets | $ | 1,475,305 | $ | — | $ | 443,008 | $ | 45,661 | $ | 74,614 | $ | (5,023 | ) | $ | 2,033,565 | |||||||||||||
Total capital expenditures | $ | 104,265 | $ | — | $ | 88,525 | $ | 3,628 | $ | 21 | $ | — | $ | 196,439 | ||||||||||||||
_________________________________ | ||||||||||||||||||||||||||||
-1 | Gain (loss) on disposal of discontinued operations related to WHI Canada is included in the Corporate Unallocated segment, as the Company sold 100% of its ownership interest in the entity. | |||||||||||||||||||||||||||
As of and for the Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
U.S. Upstream | Canadian Upstream | Midstream and Marketing | Oilfield Services | Corporate Unallocated | Inter-segment Eliminations | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 59,325 | $ | — | $ | 14,618 | $ | 6,448 | $ | — | $ | (2,100 | ) | $ | 78,291 | |||||||||||||
Depletion, depreciation, amortization and accretion | 25,233 | — | 3,174 | 720 | — | — | 29,127 | |||||||||||||||||||||
Loss on sale of assets, net | 40,952 | — | — | — | — | — | 40,952 | |||||||||||||||||||||
Other operating expenses | 100,484 | — | 11,140 | 4,931 | 11,457 | 74 | 128,086 | |||||||||||||||||||||
Other income (expense) | 2,038 | — | (16,572 | ) | (141 | ) | (20,814 | ) | 2,268 | (33,221 | ) | |||||||||||||||||
Income (loss) from continuing operations before income tax | (105,306 | ) | — | (16,268 | ) | 656 | (32,271 | ) | 94 | (153,095 | ) | |||||||||||||||||
Income tax benefit (expense) | 17,794 | 926 | — | — | (18,138 | ) | — | 582 | ||||||||||||||||||||
Total income (loss) from discontinued operations, net of tax | (13,881 | ) | (132,861 | ) | — | — | 1,742 | (94 | ) | (145,094 | ) | |||||||||||||||||
Net income (loss) | $ | (101,393 | ) | $ | (131,935 | ) | $ | (16,268 | ) | $ | 656 | $ | (48,667 | ) | $ | — | $ | (297,607 | ) | |||||||||
Total assets | $ | 1,406,515 | $ | 106,438 | $ | 269,692 | $ | 42,648 | $ | 62,182 | $ | (1,659 | ) | $ | 1,885,816 | |||||||||||||
Total capital expenditures | $ | 149,577 | $ | 181 | $ | 19,918 | $ | 5,850 | $ | 504 | $ | — | $ | 176,030 | ||||||||||||||
As of and for the Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
U.S. Upstream | Canadian Upstream | Midstream and Marketing | Oilfield Services | Corporate Unallocated | Inter-segment Eliminations | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 223,788 | $ | — | $ | 98,697 | $ | 23,882 | $ | — | $ | (14,752 | ) | $ | 331,615 | |||||||||||||
Depletion, depreciation, amortization and accretion | 87,345 | — | 11,831 | 2,557 | — | — | 101,733 | |||||||||||||||||||||
Gain on sale of assets, net | (4,231 | ) | — | (12 | ) | (369 | ) | — | — | (4,612 | ) | |||||||||||||||||
Other operating expenses | 197,013 | — | 86,120 | 19,643 | 35,253 | (14,752 | ) | 323,277 | ||||||||||||||||||||
Other income (expense) | 1,739 | — | (98,505 | ) | (625 | ) | (54,979 | ) | — | (152,370 | ) | |||||||||||||||||
Income (loss) from continuing operations before income tax | (54,600 | ) | — | (97,747 | ) | 1,426 | (90,232 | ) | — | (241,153 | ) | |||||||||||||||||
Total income (loss) from discontinued operations, net of tax 1 | (7,283 | ) | 10,636 | — | — | (12,775 | ) | — | (9,422 | ) | ||||||||||||||||||
Net income (loss) | $ | (61,883 | ) | $ | 10,636 | $ | (97,747 | ) | $ | 1,426 | $ | (103,007 | ) | $ | — | $ | (250,575 | ) | ||||||||||
Total assets | $ | 1,475,305 | $ | — | $ | 443,008 | $ | 45,661 | $ | 74,614 | $ | (5,023 | ) | $ | 2,033,565 | |||||||||||||
Total capital expenditures | $ | 320,719 | $ | 305 | $ | 171,152 | $ | 6,575 | $ | 127 | $ | — | $ | 498,878 | ||||||||||||||
_________________________________ | ||||||||||||||||||||||||||||
-1 | Gain (loss) on disposal of discontinued operations related to WHI Canada is included in the Corporate Unallocated segment, as the Company sold 100% of its ownership interest in the entity. | |||||||||||||||||||||||||||
As of and for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||
U.S. Upstream | Canadian Upstream | Midstream and Marketing | Oilfield Services | Corporate Unallocated | Inter-segment Eliminations | Total | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Total revenue | $ | 158,217 | $ | — | $ | 48,071 | $ | 13,873 | $ | — | $ | (5,802 | ) | $ | 214,359 | |||||||||||||
Depletion, depreciation, amortization and accretion | 69,420 | — | 9,142 | 1,579 | — | — | 80,141 | |||||||||||||||||||||
Loss on sale of assets, net | 42,110 | — | — | 4 | — | — | 42,114 | |||||||||||||||||||||
Other operating expenses | 198,363 | — | 41,276 | 12,884 | 38,932 | (3,628 | ) | 287,827 | ||||||||||||||||||||
Other income (expense) | 440 | — | (24,261 | ) | (372 | ) | (47,330 | ) | 2,288 | (69,235 | ) | |||||||||||||||||
Income (loss) from continuing operations before income tax | (151,236 | ) | — | (26,608 | ) | (966 | ) | (86,262 | ) | 114 | (264,958 | ) | ||||||||||||||||
Income tax benefit | 23,560 | — | — | — | 23,667 | — | 47,227 | |||||||||||||||||||||
Total income (loss) from discontinued operations, net of tax | 181,233 | (134,070 | ) | — | — | (6,571 | ) | (114 | ) | 40,478 | ||||||||||||||||||
Net income (loss) | $ | 53,557 | $ | (134,070 | ) | $ | (26,608 | ) | $ | (966 | ) | $ | (69,166 | ) | $ | — | $ | (177,253 | ) | |||||||||
Total assets | $ | 1,406,515 | $ | 106,438 | $ | 269,692 | $ | 42,648 | $ | 62,182 | $ | (1,659 | ) | $ | 1,885,816 | |||||||||||||
Total capital expenditures | $ | 322,768 | $ | 14,317 | $ | 55,003 | $ | 19,971 | $ | 927 | $ | — | $ | 412,986 | ||||||||||||||
CONDENSED_CONSOLIDATING_GUARAN1
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | |||||||||||||||||||
Schedule of Comprehensive Income (Loss) | ' | |||||||||||||||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Net income (loss) | $ | (127,328 | ) | $ | (44,101 | ) | $ | (58,873 | ) | $ | 106,855 | $ | (123,447 | ) | ||||||
Foreign currency translation gain | — | — | — | — | — | |||||||||||||||
Unrealized loss on available for sale securities | — | (2,583 | ) | — | — | (2,583 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | — | — | — | — | — | |||||||||||||||
Comprehensive income (loss) | (127,328 | ) | (46,684 | ) | (58,873 | ) | 106,855 | (126,030 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | — | — | — | 2,764 | 2,764 | |||||||||||||||
Comprehensive income (loss) attributable to Magnum Hunter Resources Corporation | $ | (127,328 | ) | $ | (46,684 | ) | $ | (58,873 | ) | $ | 109,619 | $ | (123,266 | ) | ||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Net income (loss) | $ | (302,363 | ) | $ | (81,981 | ) | $ | (178,410 | ) | $ | 265,147 | $ | (297,607 | ) | ||||||
Foreign currency translation loss | — | — | 3,856 | — | 3,856 | |||||||||||||||
Unrealized gain (loss) on available for sale securities | 3,562 | 173 | — | — | 3,735 | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (8,262 | ) | — | — | — | (8,262 | ) | |||||||||||||
Comprehensive income (loss) | (307,063 | ) | (81,808 | ) | (174,554 | ) | 265,147 | (298,278 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | — | — | — | 725 | 725 | |||||||||||||||
Comprehensive income (loss) attributable to Magnum Hunter Resources Corporation | $ | (307,063 | ) | $ | (81,808 | ) | $ | (174,554 | ) | $ | 265,872 | $ | (297,553 | ) | ||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Net income (loss) | $ | (266,125 | ) | $ | (51,611 | ) | $ | (88,330 | ) | $ | 155,491 | $ | (250,575 | ) | ||||||
Foreign currency translation loss | — | — | (1,218 | ) | — | (1,218 | ) | |||||||||||||
Unrealized loss on available for sale securities | — | (3,188 | ) | — | — | (3,188 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 20,741 | — | — | — | 20,741 | |||||||||||||||
Comprehensive income (loss) | (245,384 | ) | (54,799 | ) | (89,548 | ) | 155,491 | (234,240 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | — | — | — | 3,653 | 3,653 | |||||||||||||||
Comprehensive income (loss) attributable to Magnum Hunter Resources Corporation | $ | (245,384 | ) | $ | (54,799 | ) | $ | (89,548 | ) | $ | 159,144 | $ | (230,587 | ) | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Net income (loss) | $ | (190,954 | ) | $ | (97,486 | ) | $ | (202,152 | ) | $ | 313,339 | $ | (177,253 | ) | ||||||
Foreign currency translation loss | — | — | (7,943 | ) | — | (7,943 | ) | |||||||||||||
Unrealized gain (loss) on available for sale securities | 8,262 | (78 | ) | — | — | 8,184 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (8,262 | ) | — | — | — | (8,262 | ) | |||||||||||||
Comprehensive income (loss) | (190,954 | ) | (97,564 | ) | (210,095 | ) | 313,339 | (185,274 | ) | |||||||||||
Comprehensive income attributable to non-controlling interest | — | — | — | 1,614 | 1,614 | |||||||||||||||
Comprehensive income (loss) attributable to Magnum Hunter Resources Corporation | $ | (190,954 | ) | $ | (97,564 | ) | $ | (210,095 | ) | $ | 314,953 | $ | (183,660 | ) | ||||||
Debt Securities Under Universal Shelf Registration Statement Form S-4 | ' | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ' | |||||||||||||||||||
Schedule of condensed consolidating balance sheets | ' | |||||||||||||||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | $ | 52,405 | $ | 43,367 | $ | 10,301 | $ | (5,022 | ) | $ | 101,051 | |||||||||
Intercompany accounts receivable | 1,084,519 | — | — | (1,084,519 | ) | — | ||||||||||||||
Property and equipment (using successful efforts method of accounting) | 5,614 | 1,390,673 | 395,027 | — | 1,791,314 | |||||||||||||||
Investment in subsidiaries | 193,337 | 100,392 | — | (293,729 | ) | — | ||||||||||||||
Assets held for sale and other | 16,594 | 87,291 | 37,315 | — | 141,200 | |||||||||||||||
Total Assets | $ | 1,352,469 | $ | 1,621,723 | $ | 442,643 | $ | (1,383,270 | ) | $ | 2,033,565 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Current liabilities | $ | 40,822 | $ | 124,895 | $ | 94,550 | $ | (5,025 | ) | $ | 255,242 | |||||||||
Intercompany accounts payable | — | 1,044,555 | 42,201 | (1,086,756 | ) | — | ||||||||||||||
Long-term liabilities | 856,161 | 45,822 | 253,257 | — | 1,155,240 | |||||||||||||||
Redeemable preferred stock | 100,000 | — | 151,685 | — | 251,685 | |||||||||||||||
Shareholders' equity (deficit) | 355,486 | 406,451 | (99,050 | ) | (291,489 | ) | 371,398 | |||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,352,469 | $ | 1,621,723 | $ | 442,643 | $ | (1,383,270 | ) | $ | 2,033,565 | |||||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets | $ | 53,161 | $ | 43,841 | $ | 27,096 | $ | (3,372 | ) | $ | 120,726 | |||||||||
Intercompany accounts receivable | 965,138 | — | — | (965,138 | ) | — | ||||||||||||||
Property and equipment (using successful efforts method of accounting) | 7,214 | 1,272,027 | 234,838 | — | 1,514,079 | |||||||||||||||
Investment in subsidiaries | 372,236 | 102,314 | — | (474,550 | ) | — | ||||||||||||||
Other assets | 17,308 | 100,894 | 103,644 | — | 221,846 | |||||||||||||||
Total Assets | $ | 1,415,057 | $ | 1,519,076 | $ | 365,578 | $ | (1,443,060 | ) | $ | 1,856,651 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Current liabilities | $ | 54,826 | $ | 97,520 | $ | 34,929 | $ | (3,410 | ) | $ | 183,865 | |||||||||
Intercompany accounts payable | — | 921,237 | 43,866 | (965,103 | ) | — | ||||||||||||||
Long-term liabilities | 818,651 | 39,067 | 127,663 | — | 985,381 | |||||||||||||||
Redeemable preferred stock | 100,000 | — | 136,675 | — | 236,675 | |||||||||||||||
Shareholders' equity (deficit) | 441,580 | 461,252 | 22,445 | (474,547 | ) | 450,730 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,415,057 | $ | 1,519,076 | $ | 365,578 | $ | (1,443,060 | ) | $ | 1,856,651 | |||||||||
Schedule of condensed consolidating statements of operations | ' | |||||||||||||||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Revenues | $ | 10 | $ | 72,809 | $ | 11,141 | $ | (4,290 | ) | $ | 79,670 | |||||||||
Expenses | 21,317 | 115,817 | 70,015 | (4,290 | ) | 202,859 | ||||||||||||||
Income (loss) from continuing operations before equity in net income of subsidiaries | (21,307 | ) | (43,008 | ) | (58,874 | ) | — | (123,189 | ) | |||||||||||
Equity in net income of subsidiaries | (105,762 | ) | (1,093 | ) | — | 106,855 | — | |||||||||||||
Income (loss) from continuing operations before income tax | (127,069 | ) | (44,101 | ) | (58,874 | ) | 106,855 | (123,189 | ) | |||||||||||
Income tax benefit (expense) | — | — | — | — | — | |||||||||||||||
Income (loss) from continuing operations | (127,069 | ) | (44,101 | ) | (58,874 | ) | 106,855 | (123,189 | ) | |||||||||||
Income from discontinued operations, net of tax | — | — | — | — | — | |||||||||||||||
Gain on sale of discontinued operations, net of tax | (259 | ) | — | 1 | — | (258 | ) | |||||||||||||
Net income (loss) | (127,328 | ) | (44,101 | ) | (58,873 | ) | 106,855 | (123,447 | ) | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 2,764 | 2,764 | |||||||||||||||
Net income (loss) attributable to Magnum Hunter Resources Corporation | (127,328 | ) | (44,101 | ) | (58,873 | ) | 109,619 | (120,683 | ) | |||||||||||
Dividends on preferred stock | (8,848 | ) | — | (6,644 | ) | — | (15,492 | ) | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (136,176 | ) | $ | (44,101 | ) | $ | (65,517 | ) | $ | 109,619 | $ | (136,175 | ) | ||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Revenues | $ | 29 | $ | 71,246 | $ | 9,112 | $ | (2,096 | ) | $ | 78,291 | |||||||||
Expenses | 35,350 | 171,183 | 27,045 | (2,192 | ) | 231,386 | ||||||||||||||
Income (loss) from continuing operations before equity in net income of subsidiaries | (35,321 | ) | (99,937 | ) | (17,933 | ) | 96 | (153,095 | ) | |||||||||||
Equity in net income of subsidiaries | (236,767 | ) | 163 | (28,543 | ) | 265,147 | — | |||||||||||||
Income (loss) from continuing operations before income tax | (272,088 | ) | (99,774 | ) | (46,476 | ) | 265,243 | (153,095 | ) | |||||||||||
Income tax benefit (expense) | (18,138 | ) | 17,793 | 927 | — | 582 | ||||||||||||||
Income (loss) from continuing operations | (290,226 | ) | (81,981 | ) | (45,549 | ) | 265,243 | (152,513 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | 1,743 | — | (77,220 | ) | (96 | ) | (75,573 | ) | ||||||||||||
Gain on sale of discontinued operations, net of tax | (13,880 | ) | — | (55,641 | ) | — | (69,521 | ) | ||||||||||||
Net income (loss) | (302,363 | ) | (81,981 | ) | (178,410 | ) | 265,147 | (297,607 | ) | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 725 | 725 | |||||||||||||||
Net income (loss) attributable to Magnum Hunter Resources Corporation | (302,363 | ) | (81,981 | ) | (178,410 | ) | 265,872 | (296,882 | ) | |||||||||||
Dividends on preferred stock | (8,820 | ) | — | (5,597 | ) | — | (14,417 | ) | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (311,183 | ) | $ | (81,981 | ) | $ | (184,007 | ) | $ | 265,872 | $ | (311,299 | ) | ||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Revenues | $ | 124 | $ | 313,898 | $ | 32,846 | $ | (15,253 | ) | $ | 331,615 | |||||||||
Expenses | 92,622 | 363,587 | 131,812 | (15,253 | ) | 572,768 | ||||||||||||||
Income (loss) from continuing operations before equity in net income of subsidiaries | (92,498 | ) | (49,689 | ) | (98,966 | ) | — | (241,153 | ) | |||||||||||
Equity in net income of subsidiaries | (153,569 | ) | (1,922 | ) | — | 155,491 | — | |||||||||||||
Income (loss) from continuing operations before income tax | (246,067 | ) | (51,611 | ) | (98,966 | ) | 155,491 | (241,153 | ) | |||||||||||
Income tax benefit (expense) | — | — | — | — | — | |||||||||||||||
Income (loss) from continuing operations | (246,067 | ) | (51,611 | ) | (98,966 | ) | 155,491 | (241,153 | ) | |||||||||||
Income from discontinued operations, net of tax | — | — | 4,561 | — | 4,561 | |||||||||||||||
Gain (loss) on sale of discontinued operations, net of tax | (20,058 | ) | — | 6,075 | — | (13,983 | ) | |||||||||||||
Net income (loss) | (266,125 | ) | (51,611 | ) | (88,330 | ) | 155,491 | (250,575 | ) | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 3,653 | 3,653 | |||||||||||||||
Net income (loss) attributable to Magnum Hunter Resources Corporation | (266,125 | ) | (51,611 | ) | (88,330 | ) | 159,144 | (246,922 | ) | |||||||||||
Dividends on preferred stock | (26,516 | ) | — | (19,202 | ) | — | (45,718 | ) | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (292,641 | ) | $ | (51,611 | ) | $ | (107,532 | ) | $ | 159,144 | $ | (292,640 | ) | ||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Revenues | $ | (134 | ) | $ | 194,599 | $ | 25,693 | $ | (5,799 | ) | $ | 214,359 | ||||||||
Expenses | 91,559 | 337,827 | 55,845 | (5,914 | ) | 479,317 | ||||||||||||||
Income (loss) from continuing operations before equity in net income of subsidiaries | (91,693 | ) | (143,228 | ) | (30,152 | ) | 115 | (264,958 | ) | |||||||||||
Equity in net income of subsidiaries | (274,930 | ) | (479 | ) | (37,930 | ) | 313,339 | — | ||||||||||||
Income (loss) from continuing operations before income tax | (366,623 | ) | (143,707 | ) | (68,082 | ) | 313,454 | (264,958 | ) | |||||||||||
Income tax benefit (expense) | 23,667 | 23,560 | — | — | 47,227 | |||||||||||||||
Income (loss) from continuing operations | (342,956 | ) | (120,147 | ) | (68,082 | ) | 313,454 | (217,731 | ) | |||||||||||
Income (loss) from discontinued operations, net of tax | (6,570 | ) | 22,661 | (78,429 | ) | (115 | ) | (62,453 | ) | |||||||||||
Gain on sale of discontinued operations, net of tax | 158,572 | — | (55,641 | ) | — | 102,931 | ||||||||||||||
Net income (loss) | (190,954 | ) | (97,486 | ) | (202,152 | ) | 313,339 | (177,253 | ) | |||||||||||
Net income attributable to non-controlling interest | — | — | — | 1,614 | 1,614 | |||||||||||||||
Net income (loss) attributable to Magnum Hunter Resources Corporation | (190,954 | ) | (97,486 | ) | (202,152 | ) | 314,953 | (175,639 | ) | |||||||||||
Dividends on preferred stock | (26,603 | ) | — | (15,431 | ) | — | (42,034 | ) | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (217,557 | ) | $ | (97,486 | ) | $ | (217,583 | ) | $ | 314,953 | $ | (217,673 | ) | ||||||
Schedule of condensed consolidating statements of cash flows | ' | |||||||||||||||||||
Magnum Hunter Resources Corporation and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Cash flow from operating activities | $ | (261,039 | ) | $ | 222,520 | $ | 52,074 | $ | — | $ | 13,555 | |||||||||
Cash flow from investing activities | 63,502 | (211,560 | ) | (99,246 | ) | — | (247,304 | ) | ||||||||||||
Cash flow from financing activities | 193,885 | 2,232 | 38,542 | — | 234,659 | |||||||||||||||
Effect of exchange rate changes on cash | — | — | 44 | — | 44 | |||||||||||||||
Net increase (decrease) in cash | (3,652 | ) | 13,192 | (8,586 | ) | — | 954 | |||||||||||||
Cash at beginning of period | 47,895 | (17,651 | ) | 11,469 | — | 41,713 | ||||||||||||||
Cash at end of period | $ | 44,243 | $ | (4,459 | ) | $ | 2,883 | $ | — | $ | 42,667 | |||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Magnum Hunter | 100% Owned Guarantor | Non Guarantor | Consolidating/ Eliminating Adjustments | Magnum Hunter | ||||||||||||||||
Resources | Subsidiaries | Subsidiaries | Resources | |||||||||||||||||
Corporation | Corporation | |||||||||||||||||||
Consolidated | ||||||||||||||||||||
Cash flow from operating activities | $ | (264,051 | ) | $ | 236,112 | $ | 107,136 | $ | — | $ | 79,197 | |||||||||
Cash flow from investing activities | 422,056 | (245,179 | ) | (132,054 | ) | — | 44,823 | |||||||||||||
Cash flow from financing activities | (152,265 | ) | 2,105 | 23,893 | — | (126,267 | ) | |||||||||||||
Effect of exchange rate changes on cash | — | — | (93 | ) | — | (93 | ) | |||||||||||||
Net increase (decrease) in cash | 5,740 | (6,962 | ) | (1,118 | ) | — | (2,340 | ) | ||||||||||||
Cash at beginning of period | 26,872 | (4,187 | ) | 34,938 | — | 57,623 | ||||||||||||||
Cash at end of period | $ | 32,612 | $ | (11,149 | ) | $ | 33,820 | $ | — | $ | 55,283 | |||||||||
GENERAL_Details
GENERAL (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
PRC Williston, LLC (PRC) | PRC Williston, LLC (PRC) | Eureka Hunter Holdings, LLC | Eureka Hunter Holdings, LLC | Energy Hunter Securities, Inc. (EHS) | Energy Hunter Securities, Inc. (EHS) | Eureka Hunter Pipeline, LLC | Trans Tex Hunter LLC | Eureka Hunter Land, LLC | Sentra Corporation | Sentra Corporation | Sentra Corporation | Sentra Corporation | |
Summary of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated controlling interest (as a percent) | 100.00% | 87.50% | 57.50% | 56.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated entities ownership percentage in entity (as a percent) | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% | ' | ' | ' | ' |
Minimum Net Capital Required for Broker-Dealer Subsidiary | ' | ' | ' | ' | $5,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of Indebtedness to Net Capital | ' | ' | ' | ' | 0.0667 | ' | ' | ' | ' | ' | ' | ' | ' |
Net capital | ' | ' | ' | ' | 83,204 | 77,953 | ' | ' | ' | ' | ' | ' | ' |
Aggregate indebtedness | ' | ' | ' | ' | 8,494 | 16,657 | ' | ' | ' | ' | ' | ' | ' |
Regulated operating revenue, gas | ' | ' | ' | ' | ' | ' | ' | ' | ' | $27,656 | $215,618 | $473,555 | $215,618 |
DIVESTITURES_AND_DISCONTINUED_2
DIVESTITURES AND DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |||
Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production, Inc. | Eagle Ford Hunter, Inc. | |||||||
Results reclassified to discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenues | $0 | $7,943,000 | $8,533,000 | $62,429,000 | ' | ' | ' | ' | ' | ' | ||
Expenses | 0 | -93,755,000 | -3,976,000 | -128,464,000 | ' | ' | ' | ' | ' | ' | ||
Other income | 0 | 59,000 | 4,000 | 81,000 | ' | ' | ' | ' | ' | ' | ||
Income tax benefit | 0 | 10,180,000 | 0 | 3,501,000 | ' | ' | ' | ' | ' | ' | ||
Income (loss) from discontinued operations, net of tax | 0 | -75,573,000 | 4,561,000 | -62,453,000 | ' | ' | ' | ' | ' | ' | ||
Gain (loss) on disposal of discontinued operations, net of tax | -258,000 | -69,521,000 | -13,983,000 | 102,931,000 | ' | -12,800,000 | ' | ' | -84,500,000 | 172,500,000 | ||
Income (loss) from discontinued operations, net of taxes | -258,000 | [1] | -145,094,000 | -9,422,000 | [1] | 40,478,000 | ' | ' | ' | ' | ' | ' |
Impairment expense from discontinued operations | ' | ' | ' | ' | 18,600,000 | ' | 67,600,000 | 18,500,000 | ' | ' | ||
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | $0 | $0 | $20,741,000 | $0 | ' | ($20,700,000) | ' | ' | ' | ' | ||
[1] | Gain (loss) on disposal of discontinued operations related to WHI Canada is included in the Corporate Unallocated segment, as the Company sold 100% of its ownership interest in the entity. |
DIVESTITURES_AND_DISCONTINUED_3
DIVESTITURES AND DISCONTINUED OPERATIONS (Sale of Eagle Ford Hunter) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 24, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2014 | |
Discontinued operations | ' | ' | ' | ' | ' | ' |
Gain (loss) on disposal of discontinued operations, net of tax | ' | ($258,000) | ($69,521,000) | ($13,983,000) | $102,931,000 | ' |
Eagle Ford Hunter, Inc. | ' | ' | ' | ' | ' | ' |
Discontinued operations | ' | ' | ' | ' | ' | ' |
Total consideration received | 422,100,000 | ' | ' | ' | ' | ' |
Cash consideration received | 379,800,000 | ' | ' | ' | ' | ' |
Gain (loss) on disposal of discontinued operations, net of tax | ' | ' | ' | 172,500,000 | ' | ' |
Liabilities of disposal group | ' | ' | ' | ' | ' | 33,700,000 |
Accrued liabilities of disposal group | ' | ' | ' | ' | ' | 1,300,000 |
Amount of adjustment to prior period gain (loss) on disposal | ' | -300,000 | -13,900,000 | -7,300,000 | 0 | ' |
Penn Virginia [Member] | Eagle Ford Hunter, Inc. | ' | ' | ' | ' | ' | ' |
Discontinued operations | ' | ' | ' | ' | ' | ' |
Consideration received, number of shares of common stock received | 10,000,000 | ' | ' | ' | ' | ' |
Consideration received, value of common stock received | $42,300,000 | ' | ' | ' | ' | ' |
Price per share | $4.23 | ' | ' | ' | ' | ' |
DIVESTITURES_AND_DISCONTINUED_4
DIVESTITURES AND DISCONTINUED OPERATIONS (Assets and Liabilities Held for Sale) (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 10, 2014 | Apr. 10, 2014 | 12-May-14 | 12-May-14 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 01, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Apr. 24, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 17, 2014 | Sep. 23, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Williston Hunter Canada Assets | Williston Hunter Canada Assets | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | MHP and WHI Canada | MHP and WHI Canada | Eagle Ford Hunter, Inc. | Eagle Ford Hunter, Inc. | Eagle Ford Hunter, Inc. | Eagle Ford Hunter, Inc. | Eagle Ford Hunter, Inc. | Divide County, North Dakota | Divide County, North Dakota | Roane Counties, West Virginia | Unproved Oil And Natural Gas Properties [Member] | Proved Oil and Natural Gas Properties [Member] | |
USD ($) | CAD | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Non-Operated Working Interests In Oil And Gas Properties [Member] | Non-Operated Working Interests In Oil And Gas Properties [Member] | Non-Core Working Interests In Oil And Gas Properties [Member] | Magnum Hunter Production and Williston Hunter Canada | Magnum Hunter Production and Williston Hunter Canada | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||
Assets and Liabilities Held for Sale [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $4,362,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,004,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Oil and natural gas properties, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,362,000 | 150,770,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gas transportation, gathering, and processing equipment and other, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 11,721,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other long-term assets | 86,362,000 | ' | 86,362,000 | ' | 162,687,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 196,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,362,000 | 168,053,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 7,292,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued liabilities and other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5,573,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset retirement obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,619,000 | 8,678,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other long-term liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5,845,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities held for sale | 0 | ' | 0 | ' | 12,865,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,619,000 | 27,388,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment expense from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,600,000 | ' | 67,600,000 | 18,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 17,000,000 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration on sale of certain oil and gas properties and assets | ' | ' | ' | ' | ' | 8,700,000 | 9,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss) on disposal of discontinued operations, net of tax | -258,000 | -69,521,000 | -13,983,000 | 102,931,000 | ' | 6,100,000 | ' | ' | ' | ' | ' | -12,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | 172,500,000 | ' | 8,200,000 | ' | ' | ' | ' |
Cash consideration received | ' | ' | ' | ' | ' | ' | ' | 68,800,000 | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 379,800,000 | ' | ' | ' | ' | 23,500,000 | 84,800,000 | 1,200,000 | ' | ' |
Cash In escrow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 0 | 0 | -20,741,000 | 0 | ' | ' | ' | ' | ' | ' | ' | 20,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued Operation, Amount of Adjustment to Prior Period Gain (Loss) on Disposal, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($300,000) | ($13,900,000) | ($7,300,000) | $0 | ' | ' | ' | ' | ' |
DIVESTITURES_AND_DISCONTINUED_5
DIVESTITURES AND DISCONTINUED OPERATIONS (Sale of Certain Eagle Ford Shale Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 | Sep. 30, 2014 |
Eagle Ford Shale Assets [Member] | Leasehold Acreage, Atascosa County, Texas [Member] | New Standard Energy Texas LLC [Member] | MHR Senior Revolving Credit Facility | Investments [Member] | |||
Eagle Ford Shale Assets [Member] | Eagle Ford Shale Assets [Member] | Eagle Ford Shale Assets [Member] | New Standard Energy Texas LLC [Member] | ||||
Well | Eagle Ford Shale Assets [Member] | ||||||
Discontinued operations | ' | ' | ' | ' | ' | ' | ' |
Number of horizontal oil and gas wells | ' | ' | ' | 5 | ' | ' | ' |
Number of horizontal oil and gas wells operated by Magnum Hunter Resources | ' | ' | ' | 4 | ' | ' | ' |
Cash consideration received | ' | ' | $15,500,000 | ' | ' | ' | ' |
Consideration received, number of shares of common stock received | ' | ' | ' | ' | 65,650,000 | ' | ' |
Consideration received, value of common stock received | ' | ' | ' | ' | 9,400,000 | ' | ' |
Price per share | ' | ' | ' | ' | $0.14 | ' | ' |
Investment holding of total shares outstanding as a percent | ' | ' | ' | ' | 17.00% | ' | ' |
Available for sale securities | 8,076,000 | 1,819,000 | ' | ' | ' | ' | 5,700,000 |
Loss on the sale of assets | ' | ' | 4,500,000 | ' | ' | ' | ' |
Reduction in borrowing base | ' | ' | ' | ' | ' | $10,000,000 | ' |
OIL_NATURAL_GAS_SALES_Details
OIL & NATURAL GAS SALES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Oil and Gas In Process Activities [Line Items] | ' | ' | ' | ' |
Oil and Gas Sales Revenue | $62,510 | $59,061 | $222,247 | $156,772 |
Oil | ' | ' | ' | ' |
Oil and Gas In Process Activities [Line Items] | ' | ' | ' | ' |
Oil and Gas Sales Revenue | 34,495 | 40,471 | 111,354 | 103,545 |
Natural Gas | ' | ' | ' | ' |
Oil and Gas In Process Activities [Line Items] | ' | ' | ' | ' |
Oil and Gas Sales Revenue | 18,247 | 12,417 | 74,031 | 41,145 |
NGL | ' | ' | ' | ' |
Oil and Gas In Process Activities [Line Items] | ' | ' | ' | ' |
Oil and Gas Sales Revenue | $9,768 | $6,173 | $36,862 | $12,082 |
PROPERTY_PLANT_EQUIPMENT_Ormet
PROPERTY, PLANT, & EQUIPMENT Ormet Asset Purchase Agreement (Details) (Ormet Asset Purchase Agreement, USD $) | 0 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Jul. 24, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | Jun. 17, 2014 |
acre | Monroe County, Ohio | Wetzerl County, West Virginia | Marcellus Zone | ||
acre | acre | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Acreage in which mineral interests are acquired | ' | 2,000 | 1,375 | 325 | ' |
Leasehold rights royalty carried on production, percentage | ' | ' | ' | ' | 12.50% |
Purchase price to acquire mineral rights | $22.70 | ' | ' | ' | ' |
PROPERTY_PLANT_EQUIPMENT_Detai
PROPERTY, PLANT, & EQUIPMENT (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Mineral interests in properties: | ' | ' | ' | ' | ' |
Unproved mineral rights and leasehold costs | $510,296,000 | ' | $510,296,000 | ' | $469,337,000 |
Proved mineral rights and leasehold costs | 282,150,000 | ' | 282,150,000 | ' | 336,357,000 |
Wells and related equipment and facilities | 735,947,000 | ' | 735,947,000 | ' | 536,023,000 |
Advances to operators for wells in progress | 2,508,000 | ' | 2,508,000 | ' | 13,571,000 |
Total costs | 1,530,901,000 | ' | 1,530,901,000 | ' | 1,355,288,000 |
Less accumulated depreciation | -208,495,000 | ' | -208,495,000 | ' | -130,629,000 |
Net capitalized costs | 1,322,406,000 | ' | 1,322,406,000 | ' | 1,224,659,000 |
Impairment of proved oil and gas properties | ' | ' | 39,798,000 | 88,504,000 | ' |
Proved Oil and Natural Gas Properties [Member] | ' | ' | ' | ' | ' |
Mineral interests in properties: | ' | ' | ' | ' | ' |
Depreciation, depletion and amortization | 28,000,000 | 23,600,000 | 81,900,000 | 58,000,000 | ' |
Impairment of proved oil and gas properties | 22,900,000 | 23,500,000 | 39,800,000 | 39,500,000 | ' |
Fair value disclosure, oil and gas properties write-down | 17,100,000 | 16,400,000 | 33,800,000 | 16,400,000 | ' |
Gas transportation, gathering and processing equipment and other | ' | ' | ' | ' | ' |
Mineral interests in properties: | ' | ' | ' | ' | ' |
Total costs | 516,258,000 | ' | 516,258,000 | ' | 315,642,000 |
Less accumulated depreciation | -47,350,000 | ' | -47,350,000 | ' | -26,222,000 |
Net capitalized costs | 468,908,000 | ' | 468,908,000 | ' | 289,420,000 |
Depreciation, depletion and amortization | $6,500,000 | $4,300,000 | $16,100,000 | $11,100,000 | ' |
PROPERTY_PLANT_EQUIPMENT_Explo
PROPERTY, PLANT, & EQUIPMENT (Exploration) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Leasehold impairments | $26,922 | $41,624 | $51,305 | $74,249 |
Geological and geophysical | 362 | 354 | 1,089 | 1,008 |
Total exploration expense | 27,284 | 41,978 | 52,394 | 75,257 |
Williston Basin [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Leasehold impairments | 17,800 | 38,800 | 37,800 | 71,500 |
Appalachian Basin [Member] | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Leasehold impairments | ' | ' | 13,500 | ' |
Magnum Hunter Production, Inc. | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Leasehold impairments | $1,900 | $1,900 | $3,800 | $1,900 |
PROPERTY_PLANT_EQUIPMENT_Capit
PROPERTY, PLANT, & EQUIPMENT (Capitalized costs of oil and gas properties) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Capitalized costs, gross | $1,530,901,000 | ' | $1,530,901,000 | ' | $1,355,288,000 |
Less accumulated depreciation | -208,495,000 | ' | -208,495,000 | ' | -130,629,000 |
Net capitalized costs | 1,322,406,000 | ' | 1,322,406,000 | ' | 1,224,659,000 |
Gas transportation, gathering and processing equipment and other | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Capitalized costs, gross | 516,258,000 | ' | 516,258,000 | ' | 315,642,000 |
Less accumulated depreciation | -47,350,000 | ' | -47,350,000 | ' | -26,222,000 |
Net capitalized costs | 468,908,000 | ' | 468,908,000 | ' | 289,420,000 |
Depreciation, depletion and amortization | 6,500,000 | 4,300,000 | 16,100,000 | 11,100,000 | ' |
Assets Held under Capital Leases [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
PP&E Useful life (in years) | ' | ' | '3 years | ' | ' |
Capital Leases, Net Investment in Direct Financing and Sales Type Leases | 12,800,000 | ' | 12,800,000 | ' | ' |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 2,900,000 | ' | 2,900,000 | ' | ' |
Capital Leases Future Minimum Payments Due After Next Twelve Months | 500,000 | ' | 500,000 | ' | ' |
Farley Pad And Farley 1305 H | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Costs incurred | ' | ' | 1,100,000 | ' | ' |
Farley 1305 H | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Costs incurred | ' | ' | 13,800,000 | ' | ' |
Magnum Hunter Production and Williston Hunter Canada | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Depreciation | $1,700,000 | ' | $1,700,000 | ' | ' |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets | $10,492 | ' | $10,492 | ' | $10,492 |
Less: accumulated amortization | -5,467 | ' | -5,467 | ' | -3,962 |
Intangible assets, net of accumulated amortization | 5,025 | ' | 5,025 | ' | 6,530 |
Amortization of intangible assets | 502 | 569 | 1,500 | 1,900 | ' |
Customer relationships | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets | 5,434 | ' | 5,434 | ' | 5,434 |
Trademark | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets | 859 | ' | 859 | ' | 859 |
Existing contracts | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets | $4,199 | ' | $4,199 | ' | $4,199 |
INVENTORY_Details
INVENTORY (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Materials and supplies | $2,228 | $6,790 |
Commodities | 811 | 368 |
Inventory | $3,039 | $7,158 |
ASSET_RETIREMENT_OBLIGATIONS_D
ASSET RETIREMENT OBLIGATIONS (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | |||
Summary of asset retirement obligation | ' | ' | ||
Asset retirement obligation at beginning of period | $16,216,000 | $30,680,000 | ||
Assumed in acquisitions | 0 | 17,000 | ||
Liabilities incurred | 218,000 | 253,000 | ||
Liabilities settled | -26,000 | -98,000 | ||
Liabilities sold | -596,000 | -7,614,000 | ||
Accretion expense | 1,731,000 | 2,264,000 | ||
Revisions in estimated liabilities | 2,625,000 | [1] | 1,935,000 | [1] |
Reclassified as liabilities associated with assets held for sale | -1,619,000 | -11,148,000 | ||
Reclassified from liabilities associated with assets held for sale | 8,109,000 | 0 | ||
Effect of foreign currency translation | 0 | -73,000 | ||
Asset retirement obligation at end of period | 26,658,000 | 16,216,000 | ||
Less: current portion (included in other liabilities) | -1,482,000 | -53,000 | ||
Asset retirement obligation at end of period | 25,176,000 | 16,163,000 | ||
Revision of estimate due to change in assumptions | $1,500,000 | ' | ||
[1] | Revisions in estimated liabilities during 2014 relate to a change in assumptions used with respect to certain wells in the Appalachian Basin in Ohio and West Virginia. Approximately $1.5 million of the revisions in estimated liabilities during 2013 is related to a change in assumptions used with respect to certain wells in the Williston Basin in North Dakota. |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 |
Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Maximum | |||
Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Recurring | |||
Commodity derivative assets | Commodity derivative assets | Convertible security derivative assets | Convertible security derivative assets | Convertible preferred stock derivative liabilities | Convertible preferred stock derivative liabilities | Commodity derivative assets | Commodity derivative assets | Convertible security derivative assets | Convertible security derivative assets | Convertible preferred stock derivative liabilities | Convertible preferred stock derivative liabilities | Commodity derivative assets | Commodity derivative assets | Convertible security derivative assets | Convertible security derivative assets | Convertible preferred stock derivative liabilities | Convertible preferred stock derivative liabilities | Level 3 | |||||||||
Convertible preferred stock derivative liabilities | |||||||||||||||||||||||||||
Fair Value of Financial Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit spread rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.00% |
Total enterprise value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $929,700,000 | ' | ' |
Assumptions and methodology used for calculating fair value of assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 4 months 24 days | ' | ' | ' | '2 years |
Risk-free interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.03% | ' | ' | ' | ' |
Estimated volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | 13.70% |
Dividend | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' |
GreenHunter stock price at end of period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.52 | ' | ' | ' | ' |
Fair value measurements on a Recurring Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available for sale securities | 8,076,000 | 1,819,000 | 8,076,000 | 1,819,000 | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | 0 | 0 | 0 | 0 | ' | ' | ' | ' | 2,127,000 | 554,000 | 0 | 0 | ' | ' | ' | ' | 0 | 0 | 83,000 | 79,000 | ' | ' | ' |
Total assets at fair value | ' | ' | 8,076,000 | 1,819,000 | ' | ' | ' | ' | ' | ' | 2,127,000 | 554,000 | ' | ' | ' | ' | ' | ' | 83,000 | 79,000 | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | ' | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 114,000 | 2,279,000 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 173,205,000 | 75,934,000 | ' |
Total liabilities at fair value | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | $114,000 | $2,279,000 | ' | ' | ' | ' | ' | ' | $173,205,000 | $75,934,000 | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) (Level 3, USD $) | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Preferred Stock Embedded Derivative Liability | Embedded Derivatives, Assets | Recurring | Recurring | Minimum | Maximum | Eureka Hunter Holdings, LLC | Eureka Hunter Holdings, LLC | |
Embedded Derivatives, Liabilities | Convertible Security Embedded Derivative Financial Instruments [Member] | Preferred Stock Embedded Derivative Liability | Convertible Security Embedded Derivative Financial Instruments [Member] | Recurring | Recurring | Minimum | Maximum | |
Preferred Stock Embedded Derivative Liability | Preferred Stock Embedded Derivative Liability | Recurring | Recurring | |||||
Preferred Stock Embedded Derivative Liability | Preferred Stock Embedded Derivative Liability | |||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term | ' | ' | ' | '2 years 4 months 24 days | '1 year | '2 years | '0 years | '6 years |
Estimated volatility | ' | ' | ' | 40.00% | ' | 13.70% | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
31-Dec-13 | ($75,934,000) | ' | ' | ' | ' | ' | ' | ' |
Issuance of derivative liability | -5,479,000 | ' | ' | ' | ' | ' | ' | ' |
Decrease in fair value recognized in other income (expense) | -91,792,000 | ' | ' | ' | ' | ' | ' | ' |
30-Sep-14 | -173,205,000 | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value at December 31, 2013 Convertible Security Embedded Derivative Asset | ' | 79,000 | ' | ' | ' | ' | ' | ' |
Issuance of derivative liability Convertible Security Embedded Derivative Asset | ' | 0 | ' | ' | ' | ' | ' | ' |
Decrease in fair value recognized in other (expense) Convertible Security Embedded Derivative Asset | ' | 4,000 | ' | ' | ' | ' | ' | ' |
Fair value as of June 30, 2014 Convertible Security Embedded Derivative Asset | ' | 83,000 | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions Credit Spread Rate | ' | ' | ' | ' | ' | 24.00% | ' | ' |
Business Acquisition, Cost of Acquired Entity, Total Enterprise Value | ' | ' | $929,700,000 | ' | ' | ' | ' | $1,000,000,000 |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 2 | Carrying Amount | Senior Notes | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | $597,313 | $597,230 |
Level 2 | Estimated Fair Value | Senior Notes | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | 639,000 | 651,300 |
Level 3 | Carrying Amount | MHR Senior Revolving Credit Facility | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | 256,000 | 218,000 |
Level 3 | Carrying Amount | Eureka Hunter Pipeline second lien term loan | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | 0 | 50,000 |
Level 3 | Carrying Amount | Eureka Hunter Pipeline Credit Agreement | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | 80,000 | 0 |
Level 3 | Carrying Amount | Equipment Notes Payable | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | 25,149 | 18,615 |
Level 3 | Estimated Fair Value | MHR Senior Revolving Credit Facility | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | 256,000 | 218,000 |
Level 3 | Estimated Fair Value | Eureka Hunter Pipeline second lien term loan | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | 0 | 58,921 |
Level 3 | Estimated Fair Value | Eureka Hunter Pipeline Credit Agreement | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | 80,000 | 0 |
Level 3 | Estimated Fair Value | Equipment Notes Payable | ' | ' |
Carrying amounts and fair values of long-term debt | ' | ' |
Fair value of senior notes | $25,170 | $17,676 |
FINANCIAL_INSTRUMENTS_AND_DERI2
FINANCIAL INSTRUMENTS AND DERIVATIVES INVESTMENTS BY TYPE (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | |
Available-for-sale Securities, beginning of period | $1,819,000 | |
Securities received as consideration for assets sold | 9,447,000 | |
Change in fair value recognized in other comprehensive loss | -3,190,000 | |
Available-for-sale Securities, end of period | 8,076,000 | |
Current available-for-sale securities | 8,076,000 | |
Equity Method Investments, end of period | 940,000 | [1] |
Equity in net loss recognized in other income (expense) | -504,000 | [1] |
Equity Method Investments, end of period | 436,000 | [1] |
Equity Method Investments, Noncurrent | 282,000 | |
Long Term Assets [Member] | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | |
Equity Method Investments, Noncurrent | $282,000 | |
[1] | Equity method investments includes $282,000 classified as long-term other assets. |
FINANCIAL_INSTRUMENTS_AND_DERI3
FINANCIAL INSTRUMENTS AND DERIVATIVES INVESTMENTS BY BALANCE SHEET LOCATION (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Available-for-sale Securities, Current | $8,076,000 | ' | ||
Equity Method Investments, Current | 154,000 | ' | ||
Investments, Available-for-sale and Equity Method, Current | 8,230,000 | ' | ||
Available-for-sale Securities, Noncurrent | 0 | ' | ||
Equity Method Investments, Noncurrent | 282,000 | ' | ||
Investments, Available-for-sale and Equity Method, Noncurrent | 282,000 | ' | ||
Available-for-sale Securities | 8,076,000 | 1,819,000 | ||
Equity Method Investments | 436,000 | [1] | 940,000 | [1] |
Investments, Available-for-sale and Equity Method, Current and Noncurrent | 8,512,000 | ' | ||
Long Term Assets [Member] | ' | ' | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ||
Equity Method Investments, Noncurrent | $282,000 | ' | ||
[1] | Equity method investments includes $282,000 classified as long-term other assets. |
FINANCIAL_INSTRUMENTS_AND_DERI4
FINANCIAL INSTRUMENTS AND DERIVATIVES INVESTMENTS, FAIR VALUE (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Equity Securities, Amortized Cost | $9,875 | $428 |
Equity Securities, Gross Unrealized Gain | 0 | 0 |
Equity Securities, Gross Unrealized Loss | -4,030 | -281 |
Equity Securities | 5,845 | 147 |
Equity Securities, Related Party, Amortized Cost Basis | 2,200 | 2,200 |
Equity Securities, Related Party, Gross Unrealized Gain | 0 | 0 |
Equity Securities, Related Party, Gross Unrealized Loss | 31 | -528 |
Equity Securities, Related Party | 2,231 | 1,672 |
Equity Securities, Including Related Party, Amortized Cost Basis | 12,075 | 2,628 |
Equity Securities, Including Related Party, Gross Unrealized Gain | 0 | 0 |
Equity Securities, Including Related Party, Gross Unrealized Loss | -3,999 | -809 |
Equity Securities, Including Related Party | $8,076 | $1,819 |
FINANCIAL_INSTRUMENT_AND_DERIV
FINANCIAL INSTRUMENT AND DERIVATIVES (Commodity Derivatives) (Details) | 9 Months Ended | |
Sep. 30, 2014 | ||
MMBTU | ||
Natural Gas | Oct 2014- Dec 2014 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
MMBtu/day | 15,000 | [1] |
Natural Gas | Oct 2014- Dec 2014 | Swap [Member] | ' | |
Derivative [Line Items] | ' | |
MMBtu/day | 41,000 | |
Weighted Average Price | 4.18 | |
Natural Gas | Oct 2014- Dec 2014 | Call Option [Member] | ' | |
Derivative [Line Items] | ' | |
MMBtu/day | 16,000 | |
Weighted Average Price | 5.91 | |
Natural Gas | Jan 2015 - Dec 2015 | Swap [Member] | ' | |
Derivative [Line Items] | ' | |
MMBtu/day | 30,000 | |
Weighted Average Price | 4.12 | |
Crude Oil [Member] | Oct 2014- Dec 2014 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Bbl/day | 663 | [1] |
Crude Oil [Member] | Oct 2014- Dec 2014 | Three Way Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Bbl/day | 4,000 | [2] |
Weighted Average Price | 85 | [2] |
Crude Oil [Member] | Oct 2014- Dec 2014 | Put Option [Member] | ' | |
Derivative [Line Items] | ' | |
Bbl/day | 663 | |
Weighted Average Price | 65 | |
Crude Oil [Member] | Jan 2015 - Dec 2015 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Bbl/day | 259 | |
Crude Oil [Member] | Jan 2015 - Dec 2015 | Call Option [Member] | ' | |
Derivative [Line Items] | ' | |
Bbl/day | 1,570 | |
Weighted Average Price | 120 | |
Crude Oil [Member] | Jan 2015 - Dec 2015 | Put Option [Member] | ' | |
Derivative [Line Items] | ' | |
Bbl/day | 259 | |
Weighted Average Price | 70 | |
Maximum | Natural Gas | Oct 2014- Dec 2014 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Weighted Average Price | 5.23 | [1] |
Maximum | Crude Oil [Member] | Oct 2014- Dec 2014 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Weighted Average Price | 91.25 | [1] |
Maximum | Crude Oil [Member] | Oct 2014- Dec 2014 | Three Way Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Weighted Average Price | 102.5 | [2] |
Maximum | Crude Oil [Member] | Jan 2015 - Dec 2015 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Weighted Average Price | 91.25 | [1] |
Minimum | Natural Gas | Oct 2014- Dec 2014 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Weighted Average Price | 4.27 | [1] |
Minimum | Crude Oil [Member] | Oct 2014- Dec 2014 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Weighted Average Price | 85 | [1] |
Minimum | Crude Oil [Member] | Oct 2014- Dec 2014 | Three Way Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Weighted Average Price | 64.94 | [2] |
Minimum | Crude Oil [Member] | Jan 2015 - Dec 2015 | Collars [Member] | ' | |
Derivative [Line Items] | ' | |
Weighted Average Price | 85 | [1] |
[1] | A collar is a sold call and a purchased put. Some collars are "costless" collars with the premiums netting to approximately zero. | |
[2] | These three-way collars are a combination of three options: a sold call, a purchased put and a sold put. |
FINANCIAL_INSTRUMENTS_AND_DERI5
FINANCIAL INSTRUMENTS AND DERIVATIVES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value | ' | ' |
Derivative Assets | $2,209 | $633 |
Derivative Liabilities | -173,319 | -78,213 |
Commodity | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Assets | 2,126 | 554 |
Derivative Liabilities | -114 | -2,279 |
Financial | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Assets | 83 | 79 |
Derivative Liabilities | -173,205 | -75,934 |
Derivative assets | Commodity | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Assets | 1,871 | 529 |
Derivative assets | Financial | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Assets | 83 | 79 |
Derivative assets - long-term | Commodity | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Assets | 255 | 25 |
Derivative liabilities | Commodity | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Liabilities | -48 | -1,903 |
Derivative liabilities - long-term | Commodity | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Liabilities | -66 | -376 |
Derivative liabilities - long-term | Financial | ' | ' |
Derivatives, Fair Value | ' | ' |
Derivative Liabilities | ($173,205) | ($75,934) |
FINANCIAL_INSTRUMENTS_AND_DERI6
FINANCIAL INSTRUMENTS AND DERIVATIVES (Effect of Master Netting) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ' | ' |
Derivative Assets | $2,209 | $633 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 2,012 | -1,725 |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 0 | 0 |
Derivative, Fair Value, Net | 2,012 | -1,725 |
Current Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets | 2,399 | 4,034 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | -528 | -3,505 |
Derivative assets | 1,871 | 529 |
Long Term Assets [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Assets | 377 | 516 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | -122 | -491 |
Derivative assets | 255 | 25 |
Current Liabilities [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -576 | -5,408 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 528 | 3,505 |
Derivative Liability | -48 | -1,903 |
Long-term Liabilities [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Liability | -188 | -867 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 122 | 491 |
Derivative Liability | ($66) | ($376) |
FINANCIAL_INSTRUMENTS_AND_DERI7
FINANCIAL INSTRUMENTS AND DERIVATIVES (Details 3) (Commodity derivative assets, Other Income (Expense) [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Summary of net gain (loss) on derivative contracts | ' | ' | ' | ' |
Gain (loss) on derivative contracts | ($49,636) | ($29,553) | ($92,125) | ($30,644) |
Settled Transaction [Member] | ' | ' | ' | ' |
Summary of net gain (loss) on derivative contracts | ' | ' | ' | ' |
Gain (loss) on derivative contracts | 477 | -6,582 | -4,074 | -6,887 |
Open Transaction [Member] | ' | ' | ' | ' |
Summary of net gain (loss) on derivative contracts | ' | ' | ' | ' |
Gain (loss) on derivative contracts | ($50,113) | ($22,971) | ($88,051) | ($23,757) |
DEBT_Details
DEBT (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | ||
Senior Notes | Senior Notes | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Term Loan | Term Loan | Term Loan | Term Loan | Term Loan | |||||
9.75 Percent Senior Notes Due May 15, 2020 [Member] | 9.75 Percent Senior Notes Due May 15, 2020 [Member] | Notes Payable Due January 2015 - April 2021 [Member] | Notes Payable Due January 2015 - April 2021 [Member] | Notes Payable Due January 2015 - April 2021 [Member] | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | 12.5 Percent Term Loan due August 16, 2018 [Member] | 12.5 Percent Term Loan due August 16, 2018 [Member] | 12.5 Percent Term Loan due August 16, 2018 [Member] | 12.5 Percent Term Loan due August 16, 2018 [Member] | 12.5 Percent Term Loan due August 16, 2018 [Member] | ||||||
5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 2.96 and 3.56 Percent Revolving Credit Facility due April 2016 and December 2013 [Member] | 2.96 and 3.56 Percent Revolving Credit Facility due April 2016 and December 2013 [Member] | Eureka Hunter Pipeline, LLC | Eureka Hunter Pipeline, LLC | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total long-term debt, outstanding | $958,462,000 | $883,845,000 | $597,313,000 | $597,230,000 | ' | $25,149,000 | [1] | ' | $18,615,000 | [1] | $80,000,000 | $0 | $256,000,000 | $218,000,000 | $0 | $50,000,000 | $50,000,000 | ' | ' |
Less: current portion | -8,670,000 | -3,967,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Total long-term debt obligations, net of current portion | 949,792,000 | 879,878,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Liabilities associated with assets held for sale | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term liabilities associated with assets held for sale | 1,619,000 | 14,523,000 | ' | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term debt, stated interest rate | ' | ' | 9.75% | 9.75% | ' | ' | ' | ' | 3.66% | 3.66% | 3.57% | 3.56% | ' | ' | ' | 12.50% | 12.50% | ||
Long-term debt, unamortized discount | ' | ' | $2,700,000 | $2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term debt, stated interest rate, minimum | ' | ' | ' | ' | ' | 4.25% | 4.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term debt, stated interest rate, maximum | ' | ' | ' | ' | ' | 7.94% | 7.94% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Balance as of December 31, 2013 includes notes classified as liabilities associated with assets held for sale of which $0.2 million is current and $3.8 million is long-term. |
DEBT_Expected_Annual_Maturitie
DEBT (Expected Annual Maturities of Debt) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Summary of approximate annual maturities of debt | ' | ' |
2014 | $2,565,000 | ' |
2015 | 7,717,000 | ' |
2016 | 264,727,000 | ' |
2017 | 2,548,000 | ' |
2018 | 80,559,000 | ' |
Thereafter | 603,032,000 | ' |
Total long-term debt, outstanding | 961,148,000 | ' |
Senior Notes | 9.75 Percent Senior Notes Due May 15, 2020 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, unamortized discount | $2,700,000 | $2,700,000 |
DEBT_MHR_Senior_Revolving_Cred
DEBT (MHR Senior Revolving Credit Facility) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||
6-May-14 | Dec. 31, 2013 | 31-May-14 | Sep. 30, 2014 | Dec. 31, 2013 | 6-May-14 | Dec. 31, 2013 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 6-May-14 | 31-May-14 | Sep. 30, 2014 | |
Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Letter of Credit | Letter of Credit | Period On or Before July 1, 2014 [Member] | Period July 1, 2014 [Member] | Line of Credit | Fiscal Quarters Ending June 30, 2014 and September 30, 2014 [Member] | Line of Credit | Fiscal Quarter Ending December 31, 2014 | Fiscal Quarter Ending March 31, 2015 and Each Quarter Thereafter [Member] | Alternate Base Rate | Eurodollar [Member] | Minimum | Minimum | Minimum | Minimum | Maximum | Maximum | Maximum | Maximum | Wilson Hunter Canada, Inc. [Member] | Certain North Dakota Oil and Gas Properties [Member] | |
Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | MHR Senior Revolving Credit Facility | MHR Senior Revolving Credit Facility | MHR Senior Revolving Credit Facility | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Line of Credit | Line of Credit | Amendment to Third Amended and Restated Credit Agreement [Member] | Line of Credit | Amendment to Third Amended and Restated Credit Agreement [Member] | Line of Credit | Line of Credit | Period May 6, 2014 Through July 1, 2014 [Member] | Period May 6, 2014 Through July 1, 2014 [Member] | Alternate Base Rate | Alternate Base Rate | Eurodollar [Member] | Eurodollar [Member] | Alternate Base Rate | Alternate Base Rate | Eurodollar [Member] | Eurodollar [Member] | Line of Credit | Line of Credit | |
MHR Senior Revolving Credit Facility [Member] | MHR Senior Revolving Credit Facility [Member] | MHR Senior Revolving Credit Facility [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Line of Credit | Line of Credit | Period From July 1, 2014 Through Date of Delivery of Compliance Certificate for Quarter Ending June 30, 2014 [Member] | Period From Delivery of Compliance Certificate and After [Member] | Period From July 1, 2014 Through Date of Delivery of Compliance Certificate for Quarter Ending June 30, 2014 [Member] | Period From Delivery of Compliance Certificate and After [Member] | Period From July 1, 2014 Through Date of Delivery of Compliance Certificate for Quarter Ending June 30, 2014 [Member] | Period From Delivery of Compliance Certificate and After [Member] | Period From July 1, 2014 Through Date of Delivery of Compliance Certificate for Quarter Ending June 30, 2014 [Member] | Period From Delivery of Compliance Certificate and After [Member] | MHR Senior Revolving Credit Facility | MHR Senior Revolving Credit Facility | |||||||
Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | MHR Senior Revolving Credit Facility [Member] | MHR Senior Revolving Credit Facility [Member] | |||||||||||||||
Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | Amendment to Third Amended and Restated Credit Agreement [Member] | |||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | $325,000,000 | $232,500,000 | ' | ' | ' | $50,000,000 | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liens percentage used in reserve reports for borrowing base determinations | 90.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred finance costs, gross | ' | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | ' | ' | ' | 265,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility amount outstanding | ' | ' | ' | 256,000,000 | 218,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in the borrowing base | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,500,000 | 7,500,000 |
Borrowing capacity limit increase | 750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of borrowing base | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of borrowing base for each dollar of additional senior notes | ' | ' | ' | ' | ' | ' | ' | ' | $0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction of borrowing base, percent of net proceeds from issuance of common equity | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | 3.75% | 1.50% | 1.00% | 2.50% | 2.00% | 2.25% | 1.75% | 3.25% | 2.75% | ' | ' |
Required minimum consolidated Current Ratio | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
EBITDAX to interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | 225.00% | 250.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required maximum ratio of Total Debt to EBITDAX | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.75 | ' | 4.5 | 4.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_Eureka_Hunter_Pipeline_Cr
DEBT (Eureka Hunter Pipeline Credit Agreement) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 28, 2014 | Dec. 31, 2013 | Jan. 21, 2014 | Sep. 30, 2014 | Mar. 28, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 |
Term Loan | Term Loan | Term Loan | Notes Payable, Other Payables [Member] | Notes Payable, Other Payables [Member] | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Minimum | Minimum | Maximum | Maximum | Revolving Credit Facility | Fiscal Quarter Ending March 31, 2014 Through September 30, 2014 [Member] | Commitment Fee Percent When Consolidated Leverage Ratio is Less Than 3 to 1 [Member] | Commitment Fee Percent When Consolidated Leverage Ratio is Greater or Equal to 3 to 1 [Member] | |||
12.5 Percent Term Loan due August 16, 2018 [Member] | 12.5 Percent Term Loan due August 16, 2018 [Member] | 12.5 Percent Term Loan due August 16, 2018 [Member] | 7.94 Percent Equipment Note Payable [Member] | 4.875% Building Note Payable [Member] | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | |||
5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | Line of Credit | Line of Credit | Line of Credit | Line of Credit | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | Line of Credit | Line of Credit | Line of Credit | ||||||||
Eurodollar [Member] | Federal Funds Rate | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | 5.75 Percent Credit Agreement due March 28, 2018 [Member] | ||||||||||||
Eurodollar [Member] | Base Rate [Member] | Eurodollar [Member] | Base Rate [Member] | |||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing base | ' | ' | ' | ' | ' | ' | ' | $117,000,000 | $90,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity limit increase | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred finance costs | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 958,462,000 | 883,845,000 | 0 | 50,000,000 | 50,000,000 | ' | ' | ' | 80,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | 0.50% |
Consolidated leverage ratio | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 0.50% | 2.00% | 1.00% | 3.50% | 2.50% | ' | ' | ' | ' |
Interest rate increase under default | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 | 4.75 | ' | ' |
Minimum interest coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | 2.75 | ' | ' |
Credit facility amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | -80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment penalty | ' | ' | 2,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | ' | $5,600,000 | $3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt, stated interest rate | ' | ' | ' | ' | ' | 7.94% | 4.88% | ' | 3.66% | 3.66% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of note payable | ' | ' | ' | ' | ' | '48 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_Interest_Expense_Details
DEBT (Interest Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Amendment to Third Amended and Restated Credit Agreement [Member] | Term Loan | Oil and Gas Properties [Member] | Oil and Gas Properties [Member] | Oil and Gas Properties [Member] | Oil and Gas Properties [Member] | |||||
12.5 Percent Term Loan due August 16, 2018 [Member] | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest costs capitalized | ' | ' | ' | ' | ' | ' | $723,000 | $582,000 | $1,600,000 | $2,000,000 |
Prepayment penalty | ' | ' | ' | ' | ' | 2,200,000 | ' | ' | ' | ' |
Write off of unamortized deferred financing costs | ' | ' | 2,700,000 | ' | 1,700,000 | ' | ' | ' | ' | ' |
Interest expense incurred on debt, net of amounts capitalized | 17,013,000 | 14,648,000 | 53,748,000 | 49,691,000 | ' | ' | ' | ' | ' | ' |
Amortization and write-off of deferred financing costs | 1,082,000 | 1,111,000 | 8,725,000 | 3,661,000 | ' | ' | ' | ' | ' | ' |
Total interest expense | $18,095,000 | $15,759,000 | $62,473,000 | $53,352,000 | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 12-May-14 | 12-May-14 | 12-May-14 | 12-May-14 |
Stock options and stock appreciation rights | Stock options and stock appreciation rights | Stock options and stock appreciation rights | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Restricted stock | Amended And Restated Stock Incentive Plan | Amended And Restated Stock Incentive Plan | Eureka Hunter Holdings Plan | Eureka Hunter Holdings Plan | Eureka Hunter Holdings Plan | Eureka Hunter Holdings Plan | |||||
Officers executives and employees | Officers executives and employees | Board of directors | Board of directors | Common Stock | Class B Common Units | Class B Common Units | Incentive Plan Units | Incentive Plan Units | ||||||||||||
Share Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,500,000 | ' | 2,336,905 | ' | 2,336,905 |
Number of shares issued under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,274,248 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,398,898,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,294,506 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,115,833 | ' | ' | ' | ' | ' |
Stock options, granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,486,373 | ' | 123,798 | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '3 years | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Estimated future forfeiture rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.40% | ' | ' | ' | ' | ' | ' |
Vesting rights percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.00% | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Vesting Period for One Third of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation | $2,300 | $3,100 | $5,674 | $11,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,800 | ' | ' | ' | ' | ' | ' |
Grants under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 894,102 | ' | 894,102 | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of period (in shares) | ' | ' | ' | ' | 16,891,000 | ' | 14,847,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 0 | 4,938,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | -2,355,000 | -685,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | ' | ' | -1,241,000 | -742,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at end of period (in shares) | ' | ' | ' | ' | 13,295,000 | 18,358,000 | 14,847,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at end of period (in shares) | ' | ' | ' | ' | 9,179,000 | 10,512,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of period (in dollars per share) | ' | ' | ' | ' | $5.69 | ' | $6.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | $0 | $4.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | ' | $4.09 | $2.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in dollars per share) | ' | ' | ' | ' | $6.28 | $6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at end of period (in dollars per share) | ' | ' | ' | ' | $5.91 | $5.61 | $6.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at end of period (in dollars per share) | ' | ' | ' | ' | $6.22 | $5.86 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at beginning of period (in shares) | ' | ' | ' | ' | 6,908,000 | ' | 6,163,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | 0 | 4,938,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | ' | ' | -1,916,000 | -2,867,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cancelled (in shares) | ' | ' | ' | ' | -876,000 | -389,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at end of period (in shares) | ' | ' | ' | ' | 4,116,000 | 7,845,000 | 6,163,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | $4,700 | $12,900 | ' | $7,100 | $66 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period for recognition of compensation cost | ' | ' | ' | ' | '1 year 1 month 6 days | ' | ' | '2 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining contractual term | ' | ' | ' | ' | '5 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS’ EQUITY (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | 31-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | 31-May-14 | Sep. 30, 2014 |
Common Stock | Common Stock | Depositary Shares | Class A Preferred Units | Class A Preferred Units | Class A Preferred Units | Class A Preferred Units | Series C Preferred Stock | Series C Preferred Stock | Series C Preferred Stock | Series C Preferred Stock | Series D Preferred Stock | Series D Preferred Stock | Series D Preferred Stock | Series D Preferred Stock | Series E Preferred Stock | Series E Preferred Stock | Series E Preferred Stock | Series E Preferred Stock | Common Stock | Dilutive [Member] | Dilutive [Member] | Series E Preferred Stock | Series E Preferred Stock | Warrant [Member] | Warrant [Member] | Unvested restricted shares | Unvested restricted shares | Common stock options and stock appreciation rights | Common stock options and stock appreciation rights | Common Stock Warrant [Member] | 401K Plan [Member] | |||||
Eureka Hunter Holdings, LLC | Eureka Hunter Holdings, LLC | Eureka Hunter Holdings, LLC | Eureka Hunter Holdings, LLC | Dilutive [Member] | Dilutive [Member] | Dilutive [Member] | Dilutive [Member] | Dilutive [Member] | Dilutive [Member] | Dilutive [Member] | Dilutive [Member] | Common Stock | ||||||||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,900,000 | 59,950,000 | 10,946,000 | 11,185,000 | 19,214,000 | 30,407,000 | 1,445,000 | 0 | 13,295,000 | 18,358,000 | ' | ' |
Shares issued in connection with share-based compensation | ' | ' | 70,575 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock issued upon exercise of common stock options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,355,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends, ratio of warrants received per common stock | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stocks issued (in Shares) | ' | ' | ' | ' | 21,428,580 | ' | ' | ' | ' | 610,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,729,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 249,531 |
Proceeds from stock issuance | ' | ' | ' | $10,181 | ' | ' | $28,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest in share of Series E Preferred Stock per Depository Share | ' | ' | ' | ' | ' | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in connection with acquisition (in shares) | ' | ' | ' | ' | ' | ' | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price | ' | ' | ' | ' | $7 | ' | $7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock dividends | 15,492 | 14,417 | 45,718 | 42,034 | ' | ' | ' | 4,338 | 3,771 | 12,619 | 10,441 | 2,562 | 2,562 | 7,686 | 7,686 | 4,424 | 4,424 | 13,273 | 13,231 | 1,862 | 1,834 | 5,557 | 5,686 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accretion of the difference between the carrying value and the redemption value of preferred stock included in dividends | 2,306 | 1,826 | 6,583 | 4,990 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued, value | ' | ' | $178,432 | ' | $149,700 | ' | ' | ' | ' | $12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $257 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants Exercised Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,142,858 | ' |
Exercise price of warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.5 | ' |
Redemption price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.001 | ' |
Redemption period notice | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' |
REDEEMABLE_PREFERRED_STOCK_Det
REDEEMABLE PREFERRED STOCK (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 14, 2014 | |
Level 3 | Level 3 | Series A Preferred Units | Series A Preferred Units | Series A Preferred Units | Series A Preferred Units | Series A Preferred Units | |||||
Derivative Financial Instruments, Liabilities | Derivative Financial Instruments, Liabilities | Eureka Hunter Holdings, LLC | Eureka Hunter Holdings, LLC | Eureka Hunter Holdings, LLC | |||||||
Preferred Stock Embedded Derivative Liability | Preferred Stock Embedded Derivative Liability | Ridgeline Midstream Holdings, LLC | Ridgeline Midstream Holdings, LLC | ||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum purchase commitment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 |
Proceeds from sale of Eureka Hunter Holdings Series A Preferred Units | ' | ' | 11,956,000 | 27,440,000 | ' | ' | ' | ' | ' | 200,000,000 | ' |
Stocks issued (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | 610,000 | ' | ' |
Stock Issued, value | ' | ' | 178,432,000 | ' | ' | ' | ' | ' | 12,000,000 | ' | ' |
Preferred stock, shares issued | ' | ' | ' | ' | ' | ' | 10,592,540 | 9,885,048 | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | 40.90% | ' | ' |
Preferred stock issued as in-kind payment (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 97,492 | ' | ' |
Preferred stock, dividends paid-in-kind | ' | ' | 1,950,000 | 6,367,000 | ' | ' | ' | ' | 1,900,000 | ' | ' |
Embedded derivative, fair value | ' | ' | ' | ' | 173,205,000 | 75,934,000 | ' | ' | ' | ' | ' |
Accretion of the difference between the carrying value and the redemption value of preferred stock included in dividends | $2,306,000 | $1,826,000 | $6,583,000 | $4,990,000 | ' | ' | ' | ' | ' | ' | ' |
TAXES_Details
TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ' | ' | ' | ' |
Deferred | $0 | $582 | $0 | $47,227 |
Income tax benefit | $0 | $582 | $0 | $47,227 |
RELATED_PARTY_TRANSACTIONS_Bal
RELATED PARTY TRANSACTIONS (Balances) (Details) (GreenHunter Resources, Inc., USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
Related Party Transaction | ' | ' | ||
Accounts payable - net | $355,000 | [1] | $23,000 | [1] |
Derivative assets | 83,000 | [1],[2] | 79,000 | [1],[2] |
Investments | 2,385,000 | [1],[2] | 2,262,000 | [1],[2] |
Notes receivable | 1,360,000 | [1],[2] | 1,768,000 | [1],[2] |
Prepaid Expense | 0 | [1] | 9,000 | [1] |
Common Stock | ' | ' | ||
Related Party Transaction | ' | ' | ||
Investment in related parties, shares | 1,846,722 | ' | ||
Investment in related parties, carrying value | 154,252 | ' | ||
Series C Preferred Stock | ' | ' | ||
Related Party Transaction | ' | ' | ||
Investment in related parties, shares | 88,000 | ' | ||
Investment in related parties, carrying value | $2,200,000 | ' | ||
[1] | GreenHunter is an entity of which Gary C. Evans, the Company's Chairman and CEO, is the Chairman, a major shareholder and interim CEO. Eagle Ford Hunter received, and Triad Hunter and Viking International Resources Co., Inc., wholly-owned subsidiaries of the Company, receive services related to brine water and rental equipment from GreenHunter and its affiliated companies, White Top Oilfield Construction, LLC and Black Water Services, LLC. The Company believes that such services were and are provided at competitive market rates and were and are comparable to, or more attractive than, rates that could be obtained from unaffiliated third party suppliers of such services. | |||
[2] | On February 17, 2012, the Company sold its wholly-owned subsidiary, Hunter Disposal, to GreenHunter Water, LLC ("GreenHunter Water"), a wholly-owned subsidiary of GreenHunter. The Company recognized an embedded derivative asset resulting from the conversion option under the convertible promissory note it received as partial consideration for the sale. See "Note 8 - Fair Value of Financial Instruments" for additional information. The Company has recorded interest income as a result of the note receivable from GreenHunter. Also as a result of this transaction, the Company has an equity method investment in GreenHunter that is included in derivatives and other long-term assets and an available for sale investment in GreenHunter included in investments. |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
GreenHunter Resources, Inc. | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Loss related to investment | ($38) | [1] | ($24) | [1] | $123 | [1] | $653 | [1] |
Rental agreement term | ' | ' | '5 years | ' | ||||
GreenHunter Resources, Inc. | Water disposal costs | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Related party expenses | 820 | [2] | 623 | [2] | 1,754 | [2] | 2,069 | [2] |
GreenHunter Resources, Inc. | Equipment Rental Expense | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Related party expenses | 74 | [2] | 95 | [2] | 215 | [2] | 167 | [2] |
GreenHunter Resources, Inc. | Gas gathering-trucking | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Related party expenses | 132 | [2] | 0 | [2] | 532 | [2] | 0 | [2] |
GreenHunter Resources, Inc. | MAG tank panels | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Related party expenses | 0 | [2] | 0 | [2] | 800 | [2] | 0 | [2] |
GreenHunter Resources, Inc. | Office space rental | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Related party expenses | 0 | 0 | 36 | 0 | ||||
GreenHunter Resources, Inc. | Interest Income from Note Receivable | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Drilling revenues | 38 | [1] | 51 | [1] | 121 | [1] | 159 | [1] |
Pilatus Hunter | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Percentage of owned in subsidiary | ' | ' | 100.00% | ' | ||||
Pilatus Hunter | Airplane Rental Expenses | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Related party expenses | 49 | [3] | 26 | [3] | 207 | [3] | 94 | [3] |
Series C Cumulative Perpetual Preferred Stock | GreenHunter Resources, Inc. | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Proceeds from Dividends Received | $55 | $73 | $165 | $165 | ||||
Chief Executive Officer | GreenHunter Resources, Inc. | ' | ' | ' | ' | ||||
Related Party Transaction | ' | ' | ' | ' | ||||
Shares purchased by related party from agreement for acquisition of assets | ' | ' | 27,641 | ' | ||||
[1] | On February 17, 2012, the Company sold its wholly-owned subsidiary, Hunter Disposal, to GreenHunter Water, LLC ("GreenHunter Water"), a wholly-owned subsidiary of GreenHunter. The Company recognized an embedded derivative asset resulting from the conversion option under the convertible promissory note it received as partial consideration for the sale. See "Note 8 - Fair Value of Financial Instruments" for additional information. The Company has recorded interest income as a result of the note receivable from GreenHunter. Also as a result of this transaction, the Company has an equity method investment in GreenHunter that is included in derivatives and other long-term assets and an available for sale investment in GreenHunter included in investments. | |||||||
[2] | GreenHunter is an entity of which Gary C. Evans, the Company's Chairman and CEO, is the Chairman, a major shareholder and interim CEO. Eagle Ford Hunter received, and Triad Hunter and Viking International Resources Co., Inc., wholly-owned subsidiaries of the Company, receive services related to brine water and rental equipment from GreenHunter and its affiliated companies, White Top Oilfield Construction, LLC and Black Water Services, LLC. The Company believes that such services were and are provided at competitive market rates and were and are comparable to, or more attractive than, rates that could be obtained from unaffiliated third party suppliers of such services. | |||||||
[3] | The Company rented an airplane for business use for certain members of Company management at various times from Pilatus Hunter, LLC, an entity 100% owned by Mr. Evans. Airplane rental expenses are recorded in general and administrative expense. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 12, 2013 | Aug. 18, 2014 | Aug. 18, 2014 | Jun. 05, 2014 | Sep. 30, 2014 | Jun. 05, 2014 | Jul. 24, 2014 | Jun. 18, 2014 | Sep. 05, 2014 | Jun. 20, 2014 | Jun. 30, 2014 | Jul. 01, 2014 | 28-May-14 | Jul. 24, 2014 | Dec. 30, 2013 | Dec. 30, 2013 | Jul. 24, 2014 | Jun. 18, 2014 | Jun. 18, 2014 | Jun. 17, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 31-May-14 | Oct. 31, 2014 | Jul. 25, 2014 | Jun. 30, 2014 | |
Triad Hunter | Texas Gas Transportation Services Agreement, MMBtu Per Day Of Transportation Capacity [Member] | Texas Gas Transportation Services Agreement, MMBtu Per Day Of Transportation Capacity [Member] | Leasehold Acreage From MNW Energy, LLC | Leasehold Acreage From MNW Energy, LLC | Leasehold Acreage From MNW Energy, LLC | Ormet Asset Purchase Agreement | Ormet Asset Purchase Agreement | Ambassador Oil And Gas Limited, Off-market Takeover | Ambassador Oil And Gas Limited, Off-market Takeover | Drilling Rig Purchase | Drilling Rig Purchase | The Company, Triad Hunter, MNW vs. Dux Petroleum, LLC | PRC Williston vs. Drawbridge Special Opportunities Fund LP And Fortress Value Recovery Fund I LLC D.B. Zwirn Special Opportunities Fund, L.P. | PRC Williston vs. Drawbridge Special Opportunities Fund LP And Fortress Value Recovery Fund I LLC D.B. Zwirn Special Opportunities Fund, L.P. | PRC Williston vs. Drawbridge Special Opportunities Fund LP And Fortress Value Recovery Fund I LLC D.B. Zwirn Special Opportunities Fund, L.P. | The Company, PRC Williston vs. Drawbridge Special Opportunities Fund LP [Member] | Monroe County, Ohio | Wetzerl County, West Virginia | Marcellus Zone | Southern Appalachia | Muhlenberg County, Kentucky | Common Stock | Common Stock | Eagle Ford Hunter, Inc. | Eagle Ford Hunter, Inc. | ||||
acre | MMBTU | acre | acre | acre | Outback Shale Hunter Pty Ltd | Outback Shale Hunter Pty Ltd | Alpha Hunter Drilling LLC | Alpha Hunter Drilling LLC | Triad Hunter | PRC Williston Inc | Ormet Asset Purchase Agreement | Ormet Asset Purchase Agreement | Ormet Asset Purchase Agreement | Seminole Energy Services, Settlement Agreement [Member] | Seminole Energy Services, Settlement Agreement [Member] | Ambassador Oil And Gas Limited, Off-market Takeover | |||||||||||||
acre | acre | Well | Natural gas gathering trunk line and treatment facility | Outback Shale Hunter Pty Ltd | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
MMBtu/day | ' | ' | ' | ' | 100,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pipeline project term of agreement | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Contractual obligation | ' | ' | ' | ' | $12,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of mineral acres agreed to acquire | ' | ' | 32,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Litigation settlement, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | 450,000 | ' | ' | ' | ' | ' | |
Net leasehold acres purchased | ' | ' | ' | ' | ' | ' | 17,000 | 11,128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Payment to acquire leasehold acres | ' | ' | ' | ' | ' | 45,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Percent of total leasehold acres acquired under the asset purchase agreement | ' | ' | ' | ' | ' | ' | 53.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Acreage in which mineral interests are acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,375 | 325 | ' | ' | ' | ' | ' | ' | ' | |
Leasehold rights royalty carried on production, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' | ' | ' | ' | ' | ' | |
Purchase price to acquire mineral rights | ' | ' | ' | ' | ' | ' | ' | ' | 22,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of shares offered for one share in off-market takeover | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 23.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Common Stock, Shares, Outstanding | 199,898,027 | 171,494,071 | ' | ' | ' | ' | ' | ' | ' | ' | 23,116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Investment holding of total shares outstanding as a percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stocks issued (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,428,580 | 980 | ' | ' | |
Share price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7 | ' | ' | ' | |
Number of wells not drilled | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | |
Number of wells required to be drilled per agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | |
Interest acquired (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | |
Purchase price of a new drilling rig | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Deposit on equipment purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Collective interest in any distributions in respect of the equity interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from sale of assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Liabilities of Disposal Group, Including Discontinued Operation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,700,000 | |
Disposal Group, Including Discontinued Operation, Accrued Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | |
Disposal Group, Working Capital Adjustments, Basis For Liability Claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,800,000 | ' | |
Loss Contingency, Settlement Agreement, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | A collar is a sold call and a purchased put. Some collars are "costless" collars with the premiums netting to approximately zero. |
SUPPLEMENTAL_CASH_FLOW_INFORMA2
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental Cash Flow Elements [Abstract] | ' | ' |
Cash paid for interest | $38,565 | $38,225 |
Non-cash transactions | ' | ' |
Non-cash consideration received from sale of assets | 9,447 | ' |
Change in accrued capital expenditures | 129,778 | -5,742 |
Non-cash additions to asset retirement obligation | 2,439 | 2,089 |
Eureka Hunter Holdings Series A Preferred Unit dividends paid in kind | $1,950 | $6,367 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||
Details of operating activities by segment | ' | ' | ' | ' | ' | ||
Total revenue | $79,670 | $78,291 | $331,615 | $214,359 | ' | ||
Depletion, depreciation, amortization and accretion | 36,370 | 29,127 | 101,733 | 80,141 | ' | ||
Loss (gain) on sale of assets, net | -8,000 | 40,952 | -4,612 | 42,114 | ' | ||
Other operating expenses | 108,876 | 128,086 | 323,277 | 287,827 | ' | ||
Other income (expense) | -65,613 | -33,221 | -152,370 | -69,235 | ' | ||
Income (loss) from continuing operations before income tax | -123,189 | -153,095 | -241,153 | -264,958 | ' | ||
Income tax benefit | 0 | 582 | 0 | 47,227 | ' | ||
Total income (loss) from discontinued operations, net of tax | -258 | [1] | -145,094 | -9,422 | [1] | 40,478 | ' |
Net income (loss) | -123,447 | -297,607 | -250,575 | -177,253 | ' | ||
Total assets | 2,033,565 | 1,885,816 | 2,033,565 | 1,885,816 | 1,856,651 | ||
Total capital expenditures | 196,439 | 176,030 | 498,878 | 412,986 | ' | ||
U.S. Upstream | ' | ' | ' | ' | ' | ||
Details of operating activities by segment | ' | ' | ' | ' | ' | ||
Total revenue | 63,438 | 59,325 | 223,788 | 158,217 | ' | ||
Depletion, depreciation, amortization and accretion | 31,217 | 25,233 | 87,345 | 69,420 | ' | ||
Loss (gain) on sale of assets, net | -7,988 | 40,952 | -4,231 | 42,110 | ' | ||
Other operating expenses | 87,035 | 100,484 | 197,013 | 198,363 | ' | ||
Other income (expense) | 1,907 | 2,038 | 1,739 | 440 | ' | ||
Income (loss) from continuing operations before income tax | -44,919 | -105,306 | -54,600 | -151,236 | ' | ||
Income tax benefit | ' | 17,794 | ' | 23,560 | ' | ||
Total income (loss) from discontinued operations, net of tax | -259 | [1] | -13,881 | -7,283 | [1] | 181,233 | ' |
Net income (loss) | -45,178 | -101,393 | -61,883 | 53,557 | ' | ||
Total assets | 1,475,305 | 1,406,515 | 1,475,305 | 1,406,515 | ' | ||
Total capital expenditures | 104,265 | 149,577 | 320,719 | 322,768 | ' | ||
Canadian Upstream | ' | ' | ' | ' | ' | ||
Details of operating activities by segment | ' | ' | ' | ' | ' | ||
Total revenue | 0 | 0 | 0 | 0 | ' | ||
Depletion, depreciation, amortization and accretion | 0 | 0 | 0 | 0 | ' | ||
Loss (gain) on sale of assets, net | 0 | 0 | 0 | 0 | ' | ||
Other operating expenses | 0 | 0 | 0 | 0 | ' | ||
Other income (expense) | 0 | 0 | 0 | 0 | ' | ||
Income (loss) from continuing operations before income tax | 0 | 0 | 0 | 0 | ' | ||
Income tax benefit | ' | 926 | ' | 0 | ' | ||
Total income (loss) from discontinued operations, net of tax | 0 | [1] | -132,861 | 10,636 | [1] | -134,070 | ' |
Net income (loss) | 0 | -131,935 | 10,636 | -134,070 | ' | ||
Total assets | 0 | 106,438 | 0 | 106,438 | ' | ||
Total capital expenditures | 0 | 181 | 305 | 14,317 | ' | ||
Midstream and Marketing | ' | ' | ' | ' | ' | ||
Details of operating activities by segment | ' | ' | ' | ' | ' | ||
Total revenue | 11,845 | 14,618 | 98,697 | 48,071 | ' | ||
Depletion, depreciation, amortization and accretion | 4,224 | 3,174 | 11,831 | 9,142 | ' | ||
Loss (gain) on sale of assets, net | -12 | 0 | -12 | 0 | ' | ||
Other operating expenses | 7,350 | 11,140 | 86,120 | 41,276 | ' | ||
Other income (expense) | -58,078 | -16,572 | -98,505 | -24,261 | ' | ||
Income (loss) from continuing operations before income tax | -57,795 | -16,268 | -97,747 | -26,608 | ' | ||
Income tax benefit | ' | 0 | ' | 0 | ' | ||
Total income (loss) from discontinued operations, net of tax | 0 | [1] | 0 | 0 | [1] | 0 | ' |
Net income (loss) | -57,795 | -16,268 | -97,747 | -26,608 | ' | ||
Total assets | 443,008 | 269,692 | 443,008 | 269,692 | ' | ||
Total capital expenditures | 88,525 | 19,918 | 171,152 | 55,003 | ' | ||
Oilfield Services | ' | ' | ' | ' | ' | ||
Details of operating activities by segment | ' | ' | ' | ' | ' | ||
Total revenue | 8,176 | 6,448 | 23,882 | 13,873 | ' | ||
Depletion, depreciation, amortization and accretion | 929 | 720 | 2,557 | 1,579 | ' | ||
Loss (gain) on sale of assets, net | 0 | 0 | -369 | 4 | ' | ||
Other operating expenses | 6,569 | 4,931 | 19,643 | 12,884 | ' | ||
Other income (expense) | -205 | -141 | -625 | -372 | ' | ||
Income (loss) from continuing operations before income tax | 473 | 656 | 1,426 | -966 | ' | ||
Income tax benefit | ' | 0 | ' | 0 | ' | ||
Total income (loss) from discontinued operations, net of tax | 0 | [1] | 0 | 0 | [1] | 0 | ' |
Net income (loss) | 473 | 656 | 1,426 | -966 | ' | ||
Total assets | 45,661 | 42,648 | 45,661 | 42,648 | ' | ||
Total capital expenditures | 3,628 | 5,850 | 6,575 | 19,971 | ' | ||
Corporate Unallocated | ' | ' | ' | ' | ' | ||
Details of operating activities by segment | ' | ' | ' | ' | ' | ||
Total revenue | 0 | 0 | 0 | 0 | ' | ||
Depletion, depreciation, amortization and accretion | 0 | 0 | 0 | 0 | ' | ||
Loss (gain) on sale of assets, net | 0 | 0 | 0 | 0 | ' | ||
Other operating expenses | 11,711 | 11,457 | 35,253 | 38,932 | ' | ||
Other income (expense) | -9,237 | -20,814 | -54,979 | -47,330 | ' | ||
Income (loss) from continuing operations before income tax | -20,948 | -32,271 | -90,232 | -86,262 | ' | ||
Income tax benefit | ' | -18,138 | ' | 23,667 | ' | ||
Total income (loss) from discontinued operations, net of tax | 1 | [1] | 1,742 | -12,775 | [1] | -6,571 | ' |
Net income (loss) | -20,947 | -48,667 | -103,007 | -69,166 | ' | ||
Total assets | 74,614 | 62,182 | 74,614 | 62,182 | ' | ||
Total capital expenditures | 21 | 504 | 127 | 927 | ' | ||
Inter-segment Eliminations | ' | ' | ' | ' | ' | ||
Details of operating activities by segment | ' | ' | ' | ' | ' | ||
Total revenue | -3,789 | -2,100 | -14,752 | -5,802 | ' | ||
Depletion, depreciation, amortization and accretion | 0 | 0 | 0 | 0 | ' | ||
Loss (gain) on sale of assets, net | 0 | 0 | 0 | 0 | ' | ||
Other operating expenses | -3,789 | 74 | -14,752 | -3,628 | ' | ||
Other income (expense) | 0 | 2,268 | 0 | 2,288 | ' | ||
Income (loss) from continuing operations before income tax | 0 | 94 | 0 | 114 | ' | ||
Income tax benefit | ' | 0 | ' | 0 | ' | ||
Total income (loss) from discontinued operations, net of tax | 0 | [1] | -94 | 0 | [1] | -114 | ' |
Net income (loss) | 0 | 0 | 0 | 0 | ' | ||
Total assets | -5,023 | -1,659 | -5,023 | -1,659 | ' | ||
Total capital expenditures | $0 | $0 | $0 | $0 | ' | ||
[1] | Gain (loss) on disposal of discontinued operations related to WHI Canada is included in the Corporate Unallocated segment, as the Company sold 100% of its ownership interest in the entity. |
CONDENSED_CONSOLIDATING_GUARAN2
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | ($123,447) | ($297,607) | ($250,575) | ($177,253) | ' |
ASSETS | ' | ' | ' | ' | ' |
Current assets | 101,051 | ' | 101,051 | ' | 120,726 |
Property and equipment (using successful efforts method of accounting) | 1,791,314 | ' | 1,791,314 | ' | 1,514,079 |
Total assets | 2,033,565 | 1,885,816 | 2,033,565 | 1,885,816 | 1,856,651 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' | ' | ' | ' |
Current liabilities | 255,242 | ' | 255,242 | ' | 183,865 |
Redeemable preferred stock | 251,685 | ' | 251,685 | ' | 236,675 |
Shareholders’ equity | 371,398 | ' | 371,398 | ' | 450,730 |
Total liabilities and shareholders’ equity | 2,033,565 | ' | 2,033,565 | ' | 1,856,651 |
Magnum Hunter Resources Corporation | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | -127,328 | -302,363 | -266,125 | -190,954 | ' |
100% Owned Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | -44,101 | -81,981 | -51,611 | -97,486 | ' |
Non Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | -58,873 | -178,410 | -88,330 | -202,152 | ' |
Eliminations | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | 106,855 | 265,147 | 155,491 | 313,339 | ' |
Magnum Hunter Resources Corporation Consolidated | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | -123,447 | -297,607 | -250,575 | -177,253 | ' |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Magnum Hunter Resources Corporation | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | -127,328 | -302,363 | -266,125 | -190,954 | ' |
ASSETS | ' | ' | ' | ' | ' |
Current assets | 52,405 | ' | 52,405 | ' | 53,161 |
Intercompany accounts receivable | 1,084,519 | ' | 1,084,519 | ' | 965,138 |
Property and equipment (using successful efforts method of accounting) | 5,614 | ' | 5,614 | ' | 7,214 |
Investment in subsidiaries | 193,337 | ' | 193,337 | ' | 372,236 |
Other assets | 16,594 | ' | 16,594 | ' | 17,308 |
Total assets | 1,352,469 | ' | 1,352,469 | ' | 1,415,057 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' | ' | ' | ' |
Current liabilities | 40,822 | ' | 40,822 | ' | 54,826 |
Intercompany accounts payable | 0 | ' | 0 | ' | 0 |
Long-term liabilities | 856,161 | ' | 856,161 | ' | 818,651 |
Redeemable preferred stock | 100,000 | ' | 100,000 | ' | 100,000 |
Shareholders’ equity | 355,486 | ' | 355,486 | ' | 441,580 |
Total liabilities and shareholders’ equity | 1,352,469 | ' | 1,352,469 | ' | 1,415,057 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | 100% Owned Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | -44,101 | -81,981 | -51,611 | -97,486 | ' |
ASSETS | ' | ' | ' | ' | ' |
Current assets | 43,367 | ' | 43,367 | ' | 43,841 |
Intercompany accounts receivable | ' | ' | ' | ' | ' |
Property and equipment (using successful efforts method of accounting) | 1,390,673 | ' | 1,390,673 | ' | 1,272,027 |
Investment in subsidiaries | 100,392 | ' | 100,392 | ' | 102,314 |
Other assets | 87,291 | ' | 87,291 | ' | 100,894 |
Total assets | 1,621,723 | ' | 1,621,723 | ' | 1,519,076 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' | ' | ' | ' |
Current liabilities | 124,895 | ' | 124,895 | ' | 97,520 |
Intercompany accounts payable | 1,044,555 | ' | 1,044,555 | ' | 921,237 |
Long-term liabilities | 45,822 | ' | 45,822 | ' | 39,067 |
Redeemable preferred stock | 0 | ' | 0 | ' | 0 |
Shareholders’ equity | 406,451 | ' | 406,451 | ' | 461,252 |
Total liabilities and shareholders’ equity | 1,621,723 | ' | 1,621,723 | ' | 1,519,076 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Non Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | -58,873 | -178,410 | -88,330 | -202,152 | ' |
ASSETS | ' | ' | ' | ' | ' |
Current assets | 10,301 | ' | 10,301 | ' | 27,096 |
Intercompany accounts receivable | ' | ' | ' | ' | ' |
Property and equipment (using successful efforts method of accounting) | 395,027 | ' | 395,027 | ' | 234,838 |
Investment in subsidiaries | ' | ' | ' | ' | ' |
Other assets | 37,315 | ' | 37,315 | ' | 103,644 |
Total assets | 442,643 | ' | 442,643 | ' | 365,578 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' | ' | ' | ' |
Current liabilities | 94,550 | ' | 94,550 | ' | 34,929 |
Intercompany accounts payable | 42,201 | ' | 42,201 | ' | 43,866 |
Long-term liabilities | 253,257 | ' | 253,257 | ' | 127,663 |
Redeemable preferred stock | 151,685 | ' | 151,685 | ' | 136,675 |
Shareholders’ equity | -99,050 | ' | -99,050 | ' | 22,445 |
Total liabilities and shareholders’ equity | 442,643 | ' | 442,643 | ' | 365,578 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Eliminations | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | 106,855 | 265,147 | 155,491 | 313,339 | ' |
ASSETS | ' | ' | ' | ' | ' |
Current assets | -5,022 | ' | -5,022 | ' | -3,372 |
Intercompany accounts receivable | -1,084,519 | ' | -1,084,519 | ' | -965,138 |
Property and equipment (using successful efforts method of accounting) | ' | ' | ' | ' | ' |
Investment in subsidiaries | -293,729 | ' | -293,729 | ' | -474,550 |
Other assets | ' | ' | ' | ' | ' |
Total assets | -1,383,270 | ' | -1,383,270 | ' | -1,443,060 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' | ' | ' | ' |
Current liabilities | -5,025 | ' | -5,025 | ' | -3,410 |
Intercompany accounts payable | -1,086,756 | ' | -1,086,756 | ' | -965,103 |
Long-term liabilities | 0 | ' | 0 | ' | 0 |
Redeemable preferred stock | 0 | ' | 0 | ' | 0 |
Shareholders’ equity | -291,489 | ' | -291,489 | ' | -474,547 |
Total liabilities and shareholders’ equity | -1,383,270 | ' | -1,383,270 | ' | -1,443,060 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Magnum Hunter Resources Corporation Consolidated | ' | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' | ' |
Net income (loss) | -123,447 | -297,607 | -250,575 | -177,253 | ' |
ASSETS | ' | ' | ' | ' | ' |
Current assets | 101,051 | ' | 101,051 | ' | 120,726 |
Intercompany accounts receivable | 0 | ' | 0 | ' | 0 |
Property and equipment (using successful efforts method of accounting) | 1,791,314 | ' | 1,791,314 | ' | 1,514,079 |
Investment in subsidiaries | 0 | ' | 0 | ' | 0 |
Other assets | 141,200 | ' | 141,200 | ' | 221,846 |
Total assets | 2,033,565 | ' | 2,033,565 | ' | 1,856,651 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' | ' | ' | ' |
Current liabilities | 255,242 | ' | 255,242 | ' | 183,865 |
Intercompany accounts payable | 0 | ' | 0 | ' | 0 |
Long-term liabilities | 1,155,240 | ' | 1,155,240 | ' | 985,381 |
Redeemable preferred stock | 251,685 | ' | 251,685 | ' | 236,675 |
Shareholders’ equity | 371,398 | ' | 371,398 | ' | 450,730 |
Total liabilities and shareholders’ equity | $2,033,565 | ' | $2,033,565 | ' | $1,856,651 |
CONDENSED_CONSOLIDATING_GUARAN3
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Revenues | $79,670 | $78,291 | $331,615 | $214,359 |
Income (loss) from continuing operations before income taxes | -123,189 | -153,095 | -241,153 | -264,958 |
Income tax benefit | 0 | 582 | 0 | 47,227 |
Income (loss) from continuing operations | -123,189 | -152,513 | -241,153 | -217,731 |
Income (loss) from discontinued operations, net of tax | 0 | -75,573 | 4,561 | -62,453 |
Gain (loss) on disposal of discontinued operations, net of tax | -258 | -69,521 | -13,983 | 102,931 |
Net income (loss) | -123,447 | -297,607 | -250,575 | -177,253 |
Net loss attributed to non-controlling interests | 2,764 | 725 | 3,653 | 1,614 |
Net income (loss) attributable to Magnum Hunter Resources Corporation | -120,683 | -296,882 | -246,922 | -175,639 |
Dividends on preferred stock | -15,492 | -14,417 | -45,718 | -42,034 |
Net income (loss) attributable to common shareholders | -136,175 | -311,299 | -292,640 | -217,673 |
Magnum Hunter Resources Corporation | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Net income (loss) | -127,328 | -302,363 | -266,125 | -190,954 |
100% Owned Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Net income (loss) | -44,101 | -81,981 | -51,611 | -97,486 |
Non Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Net income (loss) | -58,873 | -178,410 | -88,330 | -202,152 |
Eliminations | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Net income (loss) | 106,855 | 265,147 | 155,491 | 313,339 |
Magnum Hunter Resources Corporation Consolidated | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Net income (loss) | -123,447 | -297,607 | -250,575 | -177,253 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Magnum Hunter Resources Corporation | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Revenues | 10 | 29 | 124 | -134 |
Expenses | 21,317 | 35,350 | 92,622 | 91,559 |
Loss from continuing operations before equity in net income of subsidiary | -21,307 | -35,321 | -92,498 | -91,693 |
Equity in net income of subsidiary | -105,762 | -236,767 | -153,569 | -274,930 |
Income (loss) from continuing operations before income taxes | -127,069 | -272,088 | -246,067 | -366,623 |
Income tax benefit | ' | -18,138 | 0 | 23,667 |
Income (loss) from continuing operations | -127,069 | -290,226 | -246,067 | -342,956 |
Income (loss) from discontinued operations, net of tax | 0 | 1,743 | 0 | -6,570 |
Gain (loss) on disposal of discontinued operations, net of tax | -259 | -13,880 | -20,058 | 158,572 |
Net income (loss) | -127,328 | -302,363 | -266,125 | -190,954 |
Net loss attributed to non-controlling interests | 0 | ' | 0 | 0 |
Net income (loss) attributable to Magnum Hunter Resources Corporation | -127,328 | -302,363 | -266,125 | -190,954 |
Dividends on preferred stock | -8,848 | -8,820 | -26,516 | -26,603 |
Net income (loss) attributable to common shareholders | -136,176 | -311,183 | -292,641 | -217,557 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | 100% Owned Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Revenues | 72,809 | 71,246 | 313,898 | 194,599 |
Expenses | 115,817 | 171,183 | 363,587 | 337,827 |
Loss from continuing operations before equity in net income of subsidiary | -43,008 | -99,937 | -49,689 | -143,228 |
Equity in net income of subsidiary | -1,093 | 163 | -1,922 | -479 |
Income (loss) from continuing operations before income taxes | -44,101 | -99,774 | -51,611 | -143,707 |
Income tax benefit | ' | 17,793 | 0 | 23,560 |
Income (loss) from continuing operations | -44,101 | -81,981 | -51,611 | -120,147 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 22,661 |
Gain (loss) on disposal of discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | -44,101 | -81,981 | -51,611 | -97,486 |
Net loss attributed to non-controlling interests | 0 | ' | 0 | 0 |
Net income (loss) attributable to Magnum Hunter Resources Corporation | -44,101 | -81,981 | -51,611 | -97,486 |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Net income (loss) attributable to common shareholders | -44,101 | -81,981 | -51,611 | -97,486 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Non Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Revenues | 11,141 | 9,112 | 32,846 | 25,693 |
Expenses | 70,015 | 27,045 | 131,812 | 55,845 |
Loss from continuing operations before equity in net income of subsidiary | -58,874 | -17,933 | -98,966 | -30,152 |
Equity in net income of subsidiary | 0 | -28,543 | 0 | -37,930 |
Income (loss) from continuing operations before income taxes | -58,874 | -46,476 | -98,966 | -68,082 |
Income tax benefit | ' | 927 | 0 | 0 |
Income (loss) from continuing operations | -58,874 | -45,549 | -98,966 | -68,082 |
Income (loss) from discontinued operations, net of tax | 0 | -77,220 | 4,561 | -78,429 |
Gain (loss) on disposal of discontinued operations, net of tax | 1 | -55,641 | 6,075 | -55,641 |
Net income (loss) | -58,873 | -178,410 | -88,330 | -202,152 |
Net loss attributed to non-controlling interests | 0 | ' | 0 | 0 |
Net income (loss) attributable to Magnum Hunter Resources Corporation | -58,873 | -178,410 | -88,330 | -202,152 |
Dividends on preferred stock | -6,644 | -5,597 | -19,202 | -15,431 |
Net income (loss) attributable to common shareholders | -65,517 | -184,007 | -107,532 | -217,583 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Eliminations | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Revenues | -4,290 | -2,096 | -15,253 | -5,799 |
Expenses | -4,290 | -2,192 | -15,253 | -5,914 |
Loss from continuing operations before equity in net income of subsidiary | 0 | 96 | 0 | 115 |
Equity in net income of subsidiary | 106,855 | 265,147 | 155,491 | 313,339 |
Income (loss) from continuing operations before income taxes | 106,855 | 265,243 | 155,491 | 313,454 |
Income tax benefit | ' | ' | 0 | 0 |
Income (loss) from continuing operations | 106,855 | 265,243 | 155,491 | 313,454 |
Income (loss) from discontinued operations, net of tax | 0 | -96 | 0 | -115 |
Gain (loss) on disposal of discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | 106,855 | 265,147 | 155,491 | 313,339 |
Net loss attributed to non-controlling interests | 2,764 | 725 | 3,653 | 1,614 |
Net income (loss) attributable to Magnum Hunter Resources Corporation | 109,619 | 265,872 | 159,144 | 314,953 |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Net income (loss) attributable to common shareholders | 109,619 | 265,872 | 159,144 | 314,953 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Magnum Hunter Resources Corporation Consolidated | ' | ' | ' | ' |
Condensed consolidating statements of operations | ' | ' | ' | ' |
Revenues | 79,670 | 78,291 | 331,615 | 214,359 |
Expenses | 202,859 | 231,386 | 572,768 | 479,317 |
Loss from continuing operations before equity in net income of subsidiary | -123,189 | -153,095 | -241,153 | -264,958 |
Equity in net income of subsidiary | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations before income taxes | -123,189 | -153,095 | -241,153 | -264,958 |
Income tax benefit | ' | 582 | 0 | 47,227 |
Income (loss) from continuing operations | -123,189 | -152,513 | -241,153 | -217,731 |
Income (loss) from discontinued operations, net of tax | 0 | -75,573 | 4,561 | -62,453 |
Gain (loss) on disposal of discontinued operations, net of tax | -258 | -69,521 | -13,983 | 102,931 |
Net income (loss) | -123,447 | -297,607 | -250,575 | -177,253 |
Net loss attributed to non-controlling interests | 2,764 | 725 | 3,653 | 1,614 |
Net income (loss) attributable to Magnum Hunter Resources Corporation | -120,683 | -296,882 | -246,922 | -175,639 |
Dividends on preferred stock | -15,492 | -14,417 | -45,718 | -42,034 |
Net income (loss) attributable to common shareholders | ($136,175) | ($311,299) | ($292,640) | ($217,673) |
CONDENSED_CONSOLIDATING_GUARAN4
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income (loss) | ($123,447) | ($297,607) | ($250,575) | ($177,253) |
Foreign currency translation gain | 0 | 3,856 | -1,218 | -7,943 |
Unrealized loss on available for sale securities | -2,583 | 3,735 | -3,188 | 8,184 |
Amounts reclassified from accumulated other comprehensive income | 0 | -8,262 | 0 | -8,262 |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 0 | 0 | 20,741 | 0 |
COMPREHENSIVE LOSS | -126,030 | -298,278 | -234,240 | -185,274 |
Comprehensive loss attributable to non-controlling interests | 2,764 | 725 | 3,653 | 1,614 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -123,266 | -297,553 | -230,587 | -183,660 |
Magnum Hunter Resources Corporation | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income (loss) | -127,328 | -302,363 | -266,125 | -190,954 |
Foreign currency translation gain | 0 | 0 | 0 | 0 |
Unrealized loss on available for sale securities | 0 | 3,562 | 0 | 8,262 |
Amounts reclassified from accumulated other comprehensive income | ' | -8,262 | ' | -8,262 |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 0 | ' | 20,741 | ' |
COMPREHENSIVE LOSS | -127,328 | -307,063 | -245,384 | -190,954 |
Comprehensive loss attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -127,328 | -307,063 | -245,384 | -190,954 |
100% Owned Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income (loss) | -44,101 | -81,981 | -51,611 | -97,486 |
Foreign currency translation gain | 0 | 0 | 0 | 0 |
Unrealized loss on available for sale securities | -2,583 | 173 | -3,188 | -78 |
Amounts reclassified from accumulated other comprehensive income | ' | 0 | ' | 0 |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 0 | ' | 0 | ' |
COMPREHENSIVE LOSS | -46,684 | -81,808 | -54,799 | -97,564 |
Comprehensive loss attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -46,684 | -81,808 | -54,799 | -97,564 |
Non-Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income (loss) | -58,873 | -178,410 | -88,330 | -202,152 |
Foreign currency translation gain | 0 | 3,856 | -1,218 | -7,943 |
Unrealized loss on available for sale securities | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | ' | 0 | ' | 0 |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 0 | ' | 0 | ' |
COMPREHENSIVE LOSS | -58,873 | -174,554 | -89,548 | -210,095 |
Comprehensive loss attributable to non-controlling interests | 0 | 0 | 0 | 0 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | -58,873 | -174,554 | -89,548 | -210,095 |
Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income (loss) | 106,855 | 265,147 | 155,491 | 313,339 |
Foreign currency translation gain | 0 | 0 | 0 | 0 |
Unrealized loss on available for sale securities | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | ' | 0 | ' | 0 |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 0 | ' | 0 | ' |
COMPREHENSIVE LOSS | 106,855 | 265,147 | 155,491 | 313,339 |
Comprehensive loss attributable to non-controlling interests | 2,764 | 725 | 3,653 | 1,614 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 109,619 | 265,872 | 159,144 | 314,953 |
Magnum Hunter Resources Corporation Consolidated | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income (loss) | -123,447 | -297,607 | -250,575 | -177,253 |
Foreign currency translation gain | 0 | 3,856 | -1,218 | -7,943 |
Unrealized loss on available for sale securities | -2,583 | 3,735 | -3,188 | 8,184 |
Amounts reclassified from accumulated other comprehensive income | ' | -8,262 | ' | -8,262 |
Amounts reclassified from accumulated other comprehensive income upon sale of Williston Hunter Canada, Inc. | 0 | ' | 20,741 | ' |
COMPREHENSIVE LOSS | -126,030 | -298,278 | -234,240 | -185,274 |
Comprehensive loss attributable to non-controlling interests | 2,764 | 725 | 3,653 | 1,614 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | ($123,266) | ($297,553) | ($230,587) | ($183,660) |
CONDENSED_CONSOLIDATING_GUARAN5
CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS (Details 4) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of condensed consolidating statements of cash flows | ' | ' |
Cash flow from operating activities | $13,555 | $79,197 |
Cash flow from operating activities | -247,304 | 44,823 |
Cash flow from investing activities | 234,659 | -126,267 |
Effect of changes in exchange rate on cash | 44 | -93 |
Net increase (decrease) in cash | 954 | -2,340 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 41,713 | 57,623 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 42,667 | 55,283 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Magnum Hunter Resources Corporation | ' | ' |
Schedule of condensed consolidating statements of cash flows | ' | ' |
Cash flow from operating activities | -261,039 | -264,051 |
Cash flow from operating activities | 63,502 | 422,056 |
Cash flow from investing activities | 193,885 | -152,265 |
Effect of changes in exchange rate on cash | ' | ' |
Net increase (decrease) in cash | -3,652 | 5,740 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 47,895 | 26,872 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 44,243 | 32,612 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | 100% Owned Guarantor Subsidiaries | ' | ' |
Schedule of condensed consolidating statements of cash flows | ' | ' |
Cash flow from operating activities | 222,520 | 236,112 |
Cash flow from operating activities | -211,560 | -245,179 |
Cash flow from investing activities | 2,232 | 2,105 |
Effect of changes in exchange rate on cash | ' | ' |
Net increase (decrease) in cash | 13,192 | -6,962 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | -17,651 | -4,187 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | -4,459 | -11,149 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Non Guarantor Subsidiaries | ' | ' |
Schedule of condensed consolidating statements of cash flows | ' | ' |
Cash flow from operating activities | 52,074 | 107,136 |
Cash flow from operating activities | -99,246 | -132,054 |
Cash flow from investing activities | 38,542 | 23,893 |
Effect of changes in exchange rate on cash | 44 | -93 |
Net increase (decrease) in cash | -8,586 | -1,118 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 11,469 | 34,938 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 2,883 | 33,820 |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Eliminations | ' | ' |
Schedule of condensed consolidating statements of cash flows | ' | ' |
Cash flow from operating activities | ' | ' |
Cash flow from operating activities | ' | ' |
Cash flow from investing activities | ' | ' |
Effect of changes in exchange rate on cash | ' | ' |
Net increase (decrease) in cash | ' | ' |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | ' | ' |
CASH AND CASH EQUIVALENTS, END OF PERIOD | ' | ' |
Debt Securities Under Universal Shelf Registration Statement Form S-4 | Magnum Hunter Resources Corporation Consolidated | ' | ' |
Schedule of condensed consolidating statements of cash flows | ' | ' |
Cash flow from operating activities | 13,555 | 79,197 |
Cash flow from operating activities | -247,304 | 44,823 |
Cash flow from investing activities | 234,659 | -126,267 |
Effect of changes in exchange rate on cash | 44 | -93 |
Net increase (decrease) in cash | 954 | -2,340 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 41,713 | 57,623 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $42,667 | $55,283 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 17, 2014 | Sep. 23, 2014 | Sep. 30, 2014 | Oct. 08, 2014 | Oct. 08, 2014 | Oct. 15, 2014 | Oct. 30, 2014 | Oct. 30, 2014 | Nov. 03, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 08, 2014 | Oct. 21, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 22, 2014 | Oct. 21, 2014 | Oct. 21, 2014 | Oct. 21, 2014 | Jan. 31, 2015 | Jan. 31, 2015 | ||
Divide County, North Dakota | Divide County, North Dakota | Roane Counties, West Virginia | Prior Revolving Credit Facility | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Scenario, Forecast | Scenario, Forecast | ||
Non-Operated Working Interests In Oil And Gas Properties [Member] | Non-Operated Working Interests In Oil And Gas Properties [Member] | Non-Core Working Interests In Oil And Gas Properties [Member] | Line of Credit | REX Services Agreement, MMBtu Per Day Of Firm Transportation | REX Services Agreement, MMBtu Per Day Of Firm Transportation | Divide County, North Dakota | Utica Shale, Ohio | Utica Shale, Ohio | Roane Counties, West Virginia | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Second Lien Term Loan Agreement | Second Lien Term Loan Agreement | Second Lien Term Loan Agreement | Second Lien Term Loan Agreement | Second Lien Term Loan Agreement | Second Lien Term Loan Agreement | Prior Revolving Credit Facility | Credit Support Agreement With REX | Credit Support Agreement With REX | Fiscal Quarter Ending December 31, 2014 | Fiscal Quarter Ending December 31, 2014 | Fiscal Quarter Ending March 31, 2016 | Fiscal Quarter Ending March 31, 2015 | Fiscal Quarter Ending June 30, 2015 And Each Fiscal Quarter Thereafter | Second Lien Term Loan Agreement | Second Lien Term Loan Agreement | Period Between Fourteen Months After and Twenty One Months From August 18, 2014 | Period Between Twenty One Months After and Twenty Eight Months From August 18, 2014 | Period Beginning Twenty Eight Months After August 18, 2014 | Morgan Stanley Infrastructure (MSI) [Member] | Morgan Stanley Infrastructure (MSI) [Member] | ||
Revolving Credit Facility | Triad Hunter | Triad Hunter | Non-Operated Working Interests In Oil And Gas Properties [Member] | Asset purchase agreement with MNW | Asset purchase agreement with MNW | Non-Core Working Interests In Oil And Gas Properties [Member] | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Second Lien Term Loan Agreement | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Fourth Amended And Restated Credit Agreement, Maturing October 22, 2018 | Line of Credit | Line of Credit | Credit Support Agreement With TGT | Credit Support Agreement With TGT | Credit Support Agreement With TGT | Eureka Hunter Holdings, LLC | Maximum | |||||
MMBTU | Triad Hunter | Triad Hunter | Triad Hunter | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Letter of Credit | Letter of Credit | Term Loan | Term Loan | Term Loan | Term Loan | Term Loan | Term Loan | Revolving Credit Facility | Letter of Credit | Letter of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Term Loan | Term Loan | Line of Credit | Line of Credit | Line of Credit | Eureka Hunter Holdings, LLC | |||||||||
acre | Federal Funds Rate | London Interbank Offered Rate (LIBOR) | Minimum | Minimum | Maximum | Maximum | Federal Funds Rate | Adjusted one-month LIBOR | London Interbank Offered Rate (LIBOR) | Alternate Base Rate | Triad Hunter | Triad Hunter | Revolving Credit Facility | Term Loan | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Letter of Credit | Letter of Credit | Letter of Credit | ||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) | Alternate Base Rate | London Interbank Offered Rate (LIBOR) | Alternate Base Rate | Triad Hunter | Triad Hunter | Triad Hunter | ||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Investment holding of total shares outstanding as a percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' | |
Payments to acquire equity method investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $65,000,000 | ' | |
Ownership percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | ' | |
Future capital contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | |
Future capital contributions, catch up feature, period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | |
Cash consideration received | 23,500,000 | 84,800,000 | 1,200,000 | ' | ' | ' | 84,800,000 | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | 340,000,000 | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | 36,000,000 | 65,000,000 | ' | ' | |
Borrowing capacity limit increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Line of credit facility, commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | 2.00% | 1.00% | 3.00% | 2.00% | ' | ' | ' | ' | 0.50% | 1.00% | 7.50% | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Interest period interval | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Minimum borrowing capacity availability as percent of borrowing base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Minimum borrowing capacity availability, covenant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Minimum borrowing capacity availability, basket per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Current ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Leverage ratio limitation on netting of unencumbered cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | |
Required maximum secured Net Debt to EBITDAX ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | 2.25 | 2 | 2.5 | ' | ' | ' | ' | ' | ' | |
Present value of proved oil and gas reserves lien, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Present value of proved oil and gas reserves lien, discount rate, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Line of credit outstanding | ' | ' | ' | 256,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 340,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Original principal amount amortization installment (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Amount outstanding in addition to loans repaid or prepaid, threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Indebtedness threshold, percent of Adjusted Consolidated Net Tangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proved Reserves to secured debt ratio (not less than 1.5 to 1.0) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proved developed and producing reserves to secured debt ratio (not less than 1.0 to 1.0) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Repayments percent of outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
MMBtu/day | ' | ' | ' | ' | ' | 100,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pipeline project term of agreement | ' | ' | ' | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Contractual obligation | ' | ' | ' | ' | ' | 16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Required period for credit support (letter of credit) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '45 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net acreage of undeveloped leasehold acquired | ' | ' | ' | ' | ' | ' | ' | ' | 5,160 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Payment to acquire leasehold acres | ' | ' | ' | ' | ' | ' | ' | 20,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Escrow funds released | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Total consideration | ' | ' | ' | ' | ' | ' | ' | $21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Net acreage of undeveloped leasehold available for purchase | ' | ' | ' | ' | ' | ' | ' | ' | 9,840 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | A collar is a sold call and a purchased put. Some collars are "costless" collars with the premiums netting to approximately zero. |