Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 06, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Breitburn Energy Partners LP | |
Entity Central Index Key | 1,357,371 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 213,789,296 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash | $ 81,691 | $ 10,464 |
Accounts and other receivables, net | 113,215 | 128,589 |
Current derivative instrument assets | 388,829 | 439,627 |
Related party receivables (note 4) | 1,518 | 2,274 |
Inventory | 1,345 | 926 |
Prepaid expenses | 3,470 | 6,447 |
Total current assets | 590,068 | 588,327 |
Equity investments | 6,657 | 6,567 |
Property, plant and equipment | ||
Oil and natural gas properties (note 2) | 7,855,082 | 7,898,117 |
Other property, plant and equipment (note 2) | 194,876 | 188,795 |
Property, Plant and Equipment, Gross | 8,049,958 | 8,086,912 |
Accumulated depletion, depreciation, and impairment (note 5) | (4,185,936) | (4,154,030) |
Net property, plant and equipment | 3,864,022 | 3,932,882 |
Other long-term assets | ||
Derivative instruments (note 3) | 179,658 | 226,764 |
Other long-term assets (note 6) | 74,981 | 80,847 |
Total assets | 4,715,386 | 4,835,387 |
Current liabilities | ||
Accounts payable | 42,169 | 50,412 |
Current portion of long-term debt (note 7) | 172,000 | 154,000 |
Derivative instruments (note 3) | 4,309 | 4,462 |
Distributions payable | 733 | 733 |
Current portion of asset retirement obligation | 1,679 | 2,341 |
Revenue and royalties payable | 33,476 | 35,462 |
Wages and salaries payable | 12,928 | 21,654 |
Accrued interest payable | 61,415 | 19,517 |
Production and property taxes payable | 20,178 | 24,292 |
Other current liabilities | 7,834 | 5,133 |
Total current liabilities | 356,721 | 318,006 |
Credit facility | 1,025,000 | 1,075,000 |
Senior notes, net | 1,754,840 | 1,752,194 |
Other long-term debt | 3,779 | 3,148 |
Total long-term debt (note 7) | 2,783,619 | 2,830,342 |
Deferred income taxes | 3,704 | 3,844 |
Asset retirement obligation (note 9) | 247,956 | 252,037 |
Derivative instruments (note 3) | 752 | 255 |
Other long-term liabilities | 19,751 | 25,008 |
Total liabilities | $ 3,412,503 | $ 3,429,492 |
Commitments and contingencies (note 10) | ||
Equity | ||
Series A preferred units, 8.0 million units issued and outstanding at each of March 31, 2016 and December 31, 2015 (note 11) | $ 193,215 | $ 193,215 |
Series B preferred units, 49.6 million and 48.8 million units issued and outstanding at March 31, 2016 and December 31, 2015, respectively (note 11) | 359,611 | 353,471 |
Common units, 213.7 million and 213.5 million units issued and outstanding at March 31, 2016 and December 31, 2015, respectively (note 11) | 742,713 | 852,114 |
Accumulated other comprehensive income (loss) (note 12) | 49 | (229) |
Total partners' equity | 1,295,588 | 1,398,571 |
Noncontrolling interest | 7,295 | 7,324 |
Total equity | 1,302,883 | 1,405,895 |
Total liabilities and equity | $ 4,715,386 | $ 4,835,387 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - shares shares in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred Units [Member] | ||
Common units issued and outstanding | 8 | 8 |
Preferred Units B [Member] | ||
Common units issued and outstanding | 49.6 | 48.8 |
Common Units [Member] | ||
Common units issued and outstanding | 213.7 | 213.5 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues and other income items | ||
Oil, natural gas and natural gas liquid sales | $ 105,450 | $ 162,623 |
Gain on commodity derivative instruments, net (note 3) | 37,923 | 137,192 |
Other revenue, net | 4,593 | 6,469 |
Total revenues and other income items | 147,966 | 306,284 |
Operating costs and expenses | ||
Operating costs | 94,974 | 117,978 |
Depletion, depreciation and amortization | 83,723 | 109,824 |
Impairment of oil and natural gas properties (note 5) | 2,793 | 59,113 |
General and administrative expenses | 21,414 | 32,262 |
Restructuring costs (note 14) | 2,809 | 4,918 |
(Gain) loss on sale of assets | (12,260) | 15 |
Total operating costs and expenses | 193,453 | 324,110 |
Operating loss | (45,487) | (17,826) |
Interest expense, net of capitalized interest | 55,989 | 39,665 |
Loss on interest rate swaps (note 3) | 2,343 | 1,812 |
Other expense (income), net | 282 | (477) |
Loss before taxes | (104,101) | (58,826) |
Income tax (benefit) expense | (95) | 92 |
Net loss | (104,006) | (58,918) |
Less: Net loss attributable to noncontrolling interest | (220) | (93) |
Net loss attributable to the partnership | (103,786) | (58,825) |
Less: Distributions to Series A preferred unitholders | 4,125 | 4,125 |
Less: Non-cash distributions to Series B preferred unitholders | 7,386 | 0 |
Less: Net loss attributable to participating units | 0 | (1,432) |
Net loss used to calculate basic and diluted net loss per unit | $ (115,297) | $ (61,518) |
Basic net loss per common unit | $ (0.54) | $ (0.29) |
Diluted net loss per unit | $ (0.54) | $ (0.29) |
Basic weighted average units outstanding | 213,661 | 210,931 |
Diluted weighted average units outstanding | 213,661 | 210,931 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (104,006) | $ (58,918) | |
Other comprehensive income, net of tax: | |||
Change in fair value of available-for-sale securities | [1] | 470 | 173 |
Total other comprehensive income | 470 | 173 | |
Total comprehensive loss | (103,536) | (58,745) | |
Less: Comprehensive loss attributable to noncontrolling interest | (28) | (23) | |
Comprehensive loss attributable to the partnership | $ (103,508) | $ (58,722) | |
[1] | Net of income taxes of $0.2 million and $0.1 million for the three months ended March 31, 2016 and 2015, respectively. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Loss (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | $ 0.2 | $ 0.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (104,006) | $ (58,918) |
Adjustments to reconcile to cash flows from operating activities: | ||
Depletion, depreciation and amortization | 83,723 | 109,824 |
Impairment of oil and natural gas properties | 2,793 | 59,113 |
Unit-based compensation expense | 5,311 | 7,741 |
Gain on derivative instruments | (35,580) | (135,380) |
Derivative instrument settlement receipts | 133,828 | 124,904 |
Income from equity affiliates, net | (90) | 325 |
Deferred income taxes | (140) | 168 |
(Gain) loss on sale of assets | (12,260) | 15 |
Other | 8,182 | (41) |
Changes in net assets and liabilities | ||
Accounts receivable and other assets | 12,109 | 30,043 |
Inventory | (419) | (185) |
Net change in related party receivables and payables | 756 | 2,462 |
Accounts payable and other liabilities | 32,602 | 1,078 |
Net cash provided by operating activities | 126,809 | 141,149 |
Cash flows from investing activities | ||
Property acquisitions | (3,942) | (13,993) |
Capital expenditures | (26,965) | (97,230) |
Proceeds from sale of assets | 11,796 | 0 |
Proceeds from sale of available-for-sale securities | 5,118 | 0 |
Purchases of available-for-sale securities | (5,416) | 0 |
Other | 0 | (853) |
Net cash used in investing activities | (19,409) | (112,076) |
Cash flows from financing activities | ||
Proceeds from issuance of common units, net | 0 | (63) |
Distributions to preferred unitholders | (4,126) | (4,125) |
Distributions to common unitholders | 0 | (54,122) |
Proceeds from issuance of long-term debt, net | 37,000 | 193,600 |
Repayments of long-term debt | (69,000) | (168,500) |
Principal payments on capital lease obligations | (19) | 0 |
Change in bank overdraft | (25) | 199 |
Debt issuance costs | (3) | 0 |
Net cash used in financing activities | (36,173) | (33,011) |
Increase (decrease) in cash | 71,227 | (3,938) |
Cash beginning of period | 10,464 | 12,628 |
Cash end of period | $ 81,691 | $ 8,690 |
Organization and Basis of Prese
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation The accompanying unaudited condensed consolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Annual Report”). The financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair statement of our financial position at March 31, 2016 , our operating results for the three months ended March 31, 2016 and 2015 and our cash flows for the three months ended March 31, 2016 and 2015 have been included. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016 . The consolidated balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in our 2015 Annual Report. We follow the successful efforts method of accounting for oil and natural gas activities. Depletion, depreciation and amortization (“DD&A”) of proved oil and natural gas properties is computed using the units-of-production method, net of any estimated residual salvage values. Liquidity As of March 31, 2016, we were in compliance with our financial covenants in our Third Amended and Restated Credit Agreement (as amended, “Credit Agreement”); however, based on market volatility and prolonged depressed commodity prices, if we are unable to execute on one of the strategic alternatives discussed herein and adequately address liquidity concerns, we may not be able to remain in compliance with the financial covenants in our Credit Agreement or to make certain representations that are a condition to borrowing additional funds and issuing letters of credit. We are evaluating various alternatives with respect to our credit facility, but there is no certainty that we will be able to implement any such alternatives. If we are unable to remain in compliance with the covenants in the Credit Agreement, absent relief from our lenders, we may be forced to repay or refinance amounts then outstanding under the credit facility. If the lenders under the credit facility were to accelerate the indebtedness under the credit facility as a result of such defaults, such acceleration would cause a cross-default or cross-acceleration of all of our other outstanding indebtedness. Such a cross-default or cross-acceleration could have a wider impact on our liquidity than might otherwise arise from a default or acceleration of a single debt instrument. If an event of default occurs, or if other debt agreements cross-default, and the lenders under the affected debt agreements accelerate the maturity of any loans or other debt outstanding, we will not have sufficient liquidity to repay all of our outstanding indebtedness. On April 14, 2016, we elected to suspend the declaration of any further distributions on our 8.25% Series A Cumulative Redeemable Perpetual Preferred Units (“Series A Preferred Units”) and 8.0% Series B Perpetual Convertible Preferred Units (“Series B Preferred Units”). In addition, we elected to defer a $33.5 million interest payment due with respect to our 7.875% Senior Notes due 2022 (“2022 Senior Notes”) and a $13.2 million interest payment due with respect to our 8.625% Senior Notes due 2020 (“2020 Senior Notes” and together with the 2022 Senior Notes, the “Senior Unsecured Notes”), with each such interest payment due on April 15, 2016 and subject to a 30-day grace period. During the 30-day grace period, we have been working with our debt holders regarding our ongoing effort to develop a comprehensive plan to restructure our balance sheet. As a result of the failure to pay interest on the Senior Unsecured Notes on April 15, 2016, we cannot satisfy the conditions for borrowing or the issuance of letters of credit under the Credit Agreement. Failure to make these interest payments prior to the expiration of the applicable grace period constitutes an event of default under each series of Senior Unsecured Notes and a cross-default under both the Credit Agreement and the indenture governing our 9.25% Senior Secured Second Lien Notes due 2020 (“Senior Secured Notes”). With respect to each series of Senior Unsecured Notes, if such an event of default continues, the trustee under the related indenture or the holders of at least 25% in aggregate principal amount of the then outstanding notes with respect to such series of notes may declare all the notes to be due and payable immediately. Such an event of default would have a material adverse effect on our liquidity, financial condition and results of operations. In addition, if interest on the Senior Unsecured Notes is not paid by the expiration of the grace periods, approximately $3.0 billion in principal amount of indebtedness may be accelerated with respect to amounts due under our Senior Unsecured Notes, Senior Secured Notes and Credit Agreement as of May 9, 2016. We do not expect to have sufficient liquidity to pay such amounts due. As a result, there would be substantial doubt regarding our ability to continue as a going concern, and we could potentially be forced to seek bankruptcy protection. We also will not be able to continue as a going concern if our borrowing base is redetermined below our current outstanding borrowings and we are unable to repay the deficiency in five equal monthly installments. We expect the borrowing base to be redetermined in late May 2016. Although we have a strong hedge position for the remainder of 2016, and also a significant hedge position in 2017, the forecasted long-term downturn in commodity prices has had a detrimental impact on our economic condition. We have engaged Lazard Frères & Co. LLC as a financial advisor and Weil, Gotshal & Manges LLP as a legal advisor to advise management and the Board of Directors (the “Board”) of our general partner (Breitburn GP LLC) regarding potential strategic alternatives such as a refinancing or restructuring of our indebtedness or capital structure or seeking to raise additional capital through debt or equity financing to address our liquidity issues and high debt levels. We cannot assure you that any refinancing or debt or equity restructuring would be possible or that additional equity or debt financing could be obtained on acceptable terms, if at all. We are also focused on long-term recurring cost reductions and the identification of non-core assets for potential sale. We cannot assure that any of these efforts will be successful or will result in cost reductions or additional cash flows or the timing of any such cost reductions or additional cash flows. Absent a material improvement in oil and gas prices or a refinancing or some restructuring of our debt obligations or other improvement in liquidity, we may seek bankruptcy protection to continue our efforts to restructure our business and capital structure. Presentation Certain reclassifications were made to the prior year’s consolidated financial statements to conform to the 2016 presentation. Other long-term debt on the consolidated balance sheet at December 31, 2015 was reported in our 2015 Annual Report as $2.9 million compared to $3.1 million in this report due to $0.2 million in capital lease obligations reclassified from other long-term liabilities to other long-term debt. Change in Accounting Principle In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs . The objective of ASU 2015-03 is to simplify the presentation of debt issuance costs in financial statements by presenting such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . Under ASU 2015-15, a company may defer debt issuance costs associated with line-of-credit arrangements and present such costs as an asset, subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Effective January 1, 2016, we adopted these standards which required retroactive application and represented a change in accounting principle. The unamortized debt issuance costs of approximately $37.0 million associated with our outstanding senior notes, which were formerly presented as a component of other long-term assets on the consolidated balance sheets, are reflected as a reduction to the carrying liability of our senior notes. Debt issuance costs associated with our credit facility remain classified in other long-term assets and continue to be charged to interest expense over the term of the facility. As a result of this change in accounting principle, the consolidated balance sheet at December 31, 2015 was adjusted as follows: December 31, 2015 Previously Effect of Adoption of Thousands of dollars Reported Accounting Principle As Adjusted Assets: Other long-term assets $ 117,872 $ (37,025 ) $ 80,847 Total assets 4,872,412 (37,025 ) 4,835,387 Liabilities: Senior notes, net $ 1,789,219 $ (37,025 ) $ 1,752,194 Total long-term debt 2,867,367 (37,025 ) 2,830,342 Total liabilities 3,466,517 (37,025 ) 3,429,492 Total liabilities and equity 4,872,412 (37,025 ) 4,835,387 Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . ASU 2014-09 will supersede most of the existing revenue recognition requirements in GAAP and will require entities to recognize revenue at an amount that reflects the consideration to which it expects to be entitled in exchange for transferring goods or services to a customer. The new standard also requires disclosures sufficient to enable users to understand an entity’s nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The amendments provide clarifications in the assessment of principal versus agent considerations in the new revenue standard. The amendments are effective for annual and interim periods beginning after December 15, 2017. We are assessing the impact that the adoption of these standards will have on our consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The amendments require management to perform interim and annual assessments of whether there are conditions or events that raise substantial doubt of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. Certain disclosures are required if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for annual periods ending after December 15, 2016, and interim periods thereafter, and with early adoption permitted. The amendments will not impact our financial position or results of operations but will require management to perform a formal going concern assessment. We are reviewing our policies and procedures to ensure compliance with this new guidance. In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments provide guidance on financial instruments specifically related to (i) the classification and measurement of investments in equity securities, (ii) the presentation of certain fair value changes for financial liabilities measured at fair value and (iii) certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. A cumulative-effect adjustment to beginning retained earnings is required as of the beginning of the fiscal year in which this ASU is adopted. The adoption of this ASU will not have a significant impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires recognizing a right-of-use lease asset and a lease liability on the balance sheet. Lessees are permitted to make an accounting policy to elect not to recognize lease assets and lease liabilities for leases with a term of 12 months or less, and to recognize lease expense on a straight-line basis over the lease term. These new requirements become effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. We are assessing the impact that ASU 2016-02 will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The amendments simplify certain areas of accounting for share-based payment transactions, including classification of awards as either equity or liability, classification on the statement of cash flows, and election of accounting policy to estimate forfeitures or recognize forfeitures when they occur. The amendments are effective for annual and interim periods beginning after December 15, 2016. Early adoption is permitted, however, adoption of all of the amendments are required in the same period of adoption. We are assessing the impact that ASU 2016-09 will have on our consolidated financial statements. |
Acquisitions, Dispositions and
Acquisitions, Dispositions and Other Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions, Dispositions and Other Transactions | Acquisitions, Dispositions and Other Transactions 2016 Acquisitions, Dispositions and Other Transactions In March 2016, we completed the sale of certain of our Mid-Continent assets (the “Mid-Continent Sale”) for net proceeds of $11.8 million . The sale included all Mid-Continent properties acquired in the merger with QR Energy, LP (“QRE”) in 2014, excluding five wells for which we have asset retirement obligations and over-riding royalty interests and royalty interests in an additional 42 wells. This transaction was effective January 1, 2016. We recognized a gain of $12.3 million from the Mid-Continent Sale. In January 2016, we entered into an agreement to purchase CO 2 assets in Harding County, New Mexico for a total preliminary purchase price of $3.9 million . We acquired compression, dehydration, and electrical sub-station facilities, all associated surface leases and contracts related to the facilities, and six existing producing wells associated with the leases and gathering lines. 2015 Acquisitions & Other Transactions In March 2015, we completed the acquisition of certain CO 2 producing properties located in Harding County, New Mexico (“CO 2 Assets”), primarily reflected in property, plant and equipment on the consolidated balance sheets, for a total preliminary purchase price of $70.5 million (the “CO 2 Acquisition”), of which $13.7 million was paid in cash during the three months ended March 31, 2015. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurements Our risk management programs are intended to reduce our exposure to commodity price volatilities and to assist with stabilizing cash flows and distributions. Routinely, we utilize derivative financial instruments to reduce this volatility. To the extent we have entered into economic hedges for a significant portion of our expected production through commodity derivative instruments and the cost for goods and services increases, our margins would be adversely affected. Commodity Activities The derivative instruments we utilize are based on index prices that may and often do differ from the actual crude oil and natural gas prices realized in our operations. These differentials often result in a lack of adequate correlation to enable these derivative instruments to qualify as cash flow hedges under FASB Accounting Standards. Accordingly, we do not attempt to account for our derivative instruments as cash flow hedges for financial reporting purposes, and instead we recognize changes in fair value immediately in earnings. We had the following commodity derivative contracts in place at March 31, 2016 : Year 2016 2017 2018 2019 Oil Positions: Fixed Price Swaps - NYMEX WTI Volume (Bbl/d) 17,404 14,519 1,493 1,000 Average Price ($/Bbl) $ 82.92 $ 82.81 $ 64.02 $ 56.35 Fixed Price Swaps - ICE Brent Volume (Bbl/d) 4,300 298 — — Average Price ($/Bbl) $ 95.17 $ 97.50 $ — $ — Collars - NYMEX WTI Volume (Bbl/d) 1,500 — — — Average Floor Price ($/Bbl) $ 80.00 $ — $ — $ — Average Ceiling Price ($/Bbl) $ 102.00 $ — $ — $ — Collars - ICE Brent Volume (Bbl/d) 500 — — — Average Floor Price ($/Bbl) $ 90.00 $ — $ — $ — Average Ceiling Price ($/Bbl) $ 101.25 $ — $ — $ — Puts - NYMEX WTI Volume (Bbl/d) 1,000 — — — Average Price ($/Bbl) $ 90.00 $ — $ — $ — Total: Volume (Bbl/d) 24,704 14,817 1,493 1,000 Average Price ($/Bbl) $ 85.31 $ 83.11 $ 64.02 $ 56.35 Natural Gas Positions: Fixed Price Swaps - MichCon City-Gate Volume (MMBtu/d) 29,000 24,000 17,500 10,000 Average Price ($/MMBtu) $ 3.91 $ 3.71 $ 3.10 $ 3.15 Fixed Price Swaps - Henry Hub Volume (MMBtu/d) 42,050 21,016 2,870 — Average Price ($/MMBtu) $ 4.02 $ 4.29 $ 3.74 $ — Collars - Henry Hub Volume (MMBtu/d) 630 595 — — Average Floor Price ($/MMBtu) $ 4.00 $ 4.00 $ — — Average Ceiling Price ($/MMBtu) $ 5.55 $ 6.15 $ — $ — Puts - Henry Hub Volume (MMBtu/d) 11,350 10,445 — — Average Price ($/MMBtu) $ 4.00 $ 4.00 $ — $ — Deferred Premium ($/MMBtu) $ 0.66 $ 0.69 $ — $ — Total: Volume (MMBtu/d) 83,030 56,056 20,370 10,000 Average Price ($/MMBtu) $ 3.98 $ 3.98 $ 3.19 $ 3.15 During the three months ended March 31, 2016 and 2015 , we did not enter into any derivative instruments that required pre-paid premiums. As of March 31, 2016 , premiums paid in 2012 related to oil and natural gas derivatives to be settled beyond March 31, 2016 were as follows: Year Thousands of dollars 2016 2017 Oil $ 5,589 $ 734 Natural gas $ 715 $ — Interest Rate Activities We are subject to interest rate risk associated with loans under our credit facility that bear interest based on floating rates. To fix a portion of our floating LIBOR-base debt under our credit facility, we had the following interest rate swaps in place at March 31, 2016 : Year 2016 2017 Fixed Rate Swaps - LIBOR Notional Amount (thousands of dollars) $ 710,000 $ 200,000 Average Fixed Rate 1.28 % 1.23 % We do not currently designate any of our interest rate derivatives as cash flow hedges for financial accounting purposes. Fair Value of Financial Instruments The following table presents the fair value of our derivative instruments not designated as hedging instruments: Balance sheet location, thousands of dollars Oil Commodity Derivatives Natural Gas Commodity Derivatives Interest Rate Derivatives Commodity Derivatives Netting (a) Total Financial Instruments As of March 31, 2016 Assets Current assets - derivative instruments $ 346,071 $ 45,448 $ — $ (2,690 ) $ 388,829 Other long-term assets - derivative instruments 160,194 21,530 — (2,066 ) 179,658 Total assets 506,265 66,978 — (4,756 ) 568,487 Liabilities Current liabilities - derivative instruments (3 ) (2,699 ) (4,297 ) 2,690 (4,309 ) Long-term liabilities - derivative instruments — (2,179 ) (639 ) 2,066 (752 ) Total liabilities (3 ) (4,878 ) (4,936 ) 4,756 (5,061 ) Net assets (liabilities) $ 506,262 $ 62,100 $ (4,936 ) $ — $ 563,426 As of December 31, 2015 Assets Current assets - derivative instruments $ 397,748 $ 44,426 $ 222 $ (2,769 ) $ 439,627 Other long-term assets - derivative instruments 202,140 27,105 216 (2,697 ) 226,764 Total assets 599,888 71,531 438 (5,466 ) 666,391 Liabilities Current liabilities - derivative instruments (15 ) (2,740 ) (4,476 ) 2,769 (4,462 ) Long-term liabilities - derivative instruments — (2,865 ) (87 ) 2,697 (255 ) Total liabilities (15 ) (5,605 ) (4,563 ) 5,466 (4,717 ) Net assets (liabilities) $ 599,873 $ 65,926 $ (4,125 ) $ — $ 661,674 (a) Represents counterparty netting under derivative master agreements. The agreements allow for netting of oil and natural gas commodity derivative instruments. These derivative instruments are reflected net on the consolidated balance sheets. The following table presents gains and losses on derivative instruments not designated as hedging instruments: Thousands of dollars Oil Commodity Derivatives (a) Natural Gas Commodity Derivatives (a) Interest Rate Derivatives (b) Total Financial Instruments Three Months Ended March 31, 2016 Net gain (loss) $ 28,375 $ 9,548 $ (2,343 ) $ 35,580 Three Months Ended March 31, 2015 Net gain (loss) $ 118,514 $ 18,678 $ (1,812 ) $ 135,380 (a) Included in gain on commodity derivative instruments, net on the consolidated statements of operations. (b) Included in loss on interest rate swaps on the consolidated statements of operations. Fair Value Measurements FASB Accounting Standards define fair value, establish a framework for measuring fair value and establish required disclosures about fair value measurements. They also establish a fair value hierarchy that prioritizes the inputs to valuation techniques into three broad levels based upon how observable those inputs are. We use valuation techniques that maximize the use of observable inputs and obtain the majority of our inputs from published objective sources or third-party market participants. We incorporate the impact of nonperformance risk, including credit risk, into our fair value measurements. The fair value hierarchy gives the highest priority of Level 1 to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority of Level 3 to unobservable inputs. We categorize our fair value financial instruments based upon the objectivity of the inputs and how observable those inputs are. The three levels of inputs are described further as follows: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities as of the reporting date. Level 2 – Inputs that are observable other than quoted prices that are included within Level 1. Level 2 includes financial instruments that are actively traded but are valued using models or other valuation methodologies. We consider the over-the-counter (“OTC”) commodity and interest rate swaps in our portfolio to be Level 2. Level 3 – Inputs that are not directly observable for the asset or liability and are significant to the fair value of the asset or liability. Level 3 includes financial instruments that are not actively traded and have little or no observable data for input into industry standard models. Certain OTC derivative instruments that trade in less liquid markets or contain limited observable model inputs are currently included in Level 3. As of March 31, 2016 , and December 31, 2015 , our Level 3 derivative assets and liabilities consisted entirely of OTC commodity put and call options. Financial assets and liabilities that are categorized in Level 3 may later be reclassified to the Level 2 category at the point we are able to obtain sufficient binding market data. We had no transfers in or out of Levels 1, 2 or 3 during the three months ended March 31, 2016 and 2015 . Our policy is to recognize transfers between levels as of the end of the period. Our assessment of the significance of an input to its fair value measurement requires judgment and can affect the valuation of the assets and liabilities as well as the category within which they are classified. Derivative Instruments We calculate the fair value of our commodity and interest rate swaps and options. We compare these fair value amounts to the fair value amounts we receive from counterparties on a monthly basis. Any differences are resolved and any required changes are recorded prior to the issuance of our financial statements. The models we utilize to calculate the fair value of our Level 2 and Level 3 commodity derivative instruments are standard pricing models. Level 2 inputs to the pricing models include the terms of our derivative contracts, commodity prices from commodity forward price curves, volatility and interest rate factors and time to expiry. Model inputs are obtained from independent third party data providers and our counterparties and are verified to published data where available (e.g., NYMEX). Additional inputs to our Level 3 derivatives include option volatilities, forward commodity prices and risk-free interest rates for present value discounting. We use the standard swap contract valuation method to value our interest rate derivatives, and inputs include LIBOR forward interest rates, one-month LIBOR rates and risk-free interest rates for present value discounting. Assumed credit risk adjustments, based on published credit ratings and credit default swap rates, are applied to our derivative instruments. The fair value of the commodity and interest rate derivative instruments that were novated to us in connection with the QRE Merger are estimated using a combined income and market valuation methodology based upon futures commodity prices and volatility curves. The curves are obtained from independent pricing services reflecting broker market quotes. We validate the data provided by independent pricing services by comparing such pricing against other third party pricing data. Available-for-Sale Securities The fair value of our available for sale securities are estimated using actual trade data, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources. We validate the data provided by independent pricing services to make assessments and determinations as to the ultimate valuation of its investment portfolio by comparing such pricing against other third party pricing data. We consider the inputs to the valuation of our available for sale securities to be Level 1. Fair Value Hierarchy The following tables set forth, by level within the hierarchy, the fair value of our financial instrument assets and liabilities that were accounted for at fair value on a recurring basis. All fair values reflected below and on the consolidated balance sheets have been adjusted for nonperformance risk. Thousands of dollars Level 1 Level 2 Level 3 Total As of March 31, 2016 Assets (liabilities) Crude Oil Crude oil swaps $ — $ 470,930 $ — $ 470,930 Crude oil collars — — 22,205 22,205 Crude oil puts — — 13,127 13,127 Natural Gas Natural gas swaps — 51,082 — 51,082 Natural gas collars — — 583 583 Natural gas puts — — 10,435 10,435 Interest rate swaps Interest rate swaps — (4,936 ) — (4,936 ) Available-for-sale securities Equities 1,378 — — 1,378 Mutual funds 12,073 — — 12,073 Exchange traded funds 5,839 — — 5,839 Net assets $ 19,290 $ 517,076 $ 46,350 $ 582,716 Thousands of dollars Level 1 Level 2 Level 3 Total As of December 31, 2015 Assets (liabilities) Crude Oil Crude oil swaps $ — $ 552,552 $ — $ 552,552 Crude oil collars — — 29,737 29,737 Crude oil puts — — 17,584 17,584 Natural gas commodity derivatives Natural gas swaps — 54,182 — 54,182 Natural gas collars — — 618 618 Natural gas puts — — 11,126 11,126 Interest rate swaps Interest rate swaps — (4,125 ) — (4,125 ) Available-for-sale securities Equities 2,524 — — 2,524 Mutual funds 11,190 — — 11,190 Exchange traded funds 4,977 — — 4,977 Net assets $ 18,691 $ 602,609 $ 59,065 $ 680,365 The following tables set forth a reconciliation of changes in fair value of our derivative instruments classified as Level 3: Three Months Ended March 31, 2016 2015 Thousands of dollars Oil Natural Gas Oil Natural Gas Assets (a): Beginning balance $ 47,321 $ 11,744 $ 61,410 $ 19,892 Derivative instrument settlements (b) 13,981 2,114 10,987 3,567 Loss (b)(c) (25,970 ) (2,840 ) (13,296 ) (3,788 ) Ending balance $ 35,332 $ 11,018 $ 59,101 $ 19,671 (a) We had no changes in fair value of our derivative instruments classified as Level 3 related to sales, purchases or issuances. (b) Included in gain on commodity derivative instruments, net on the consolidated statements of operations. (c) Represents loss on mark-to-market of derivative instruments. For Level 3 derivative instruments measured at fair value on a recurring basis as of March 31, 2016 , the significant unobservable inputs used in the fair value measurements were as follows: Fair Value at Valuation Thousands of dollars March 31, 2016 Technique Unobservable Input Range Oil Options $ 35,332 Option Pricing Model Oil forward commodity prices $38.34/Bbl - $45.84/Bbl Oil volatility 26.58% - 60.07% Own credit risk 5% Natural Gas Options 11,018 Option Pricing Model Gas forward commodity prices $1.96/MMBtu - $2.97/MMBtu Gas volatility 26.24% - 47.25% Own credit risk 5% Total $ 46,350 For Level 3 derivative instruments measured at fair value on a recurring basis as of December 31, 2015 , the significant unobservable inputs used in the fair value measurements were as follows: Fair Value at Valuation Thousands of dollars December 31, 2015 Technique Unobservable Input Range Oil Options $ 47,321 Option Pricing Model Oil forward commodity prices $37.04/Bbl - $47.79/Bbl Oil volatility 32.24% - 44.95% Own credit risk 5% Natural Gas Options 11,744 Option Pricing Model Gas forward commodity prices $2.34/MMBtu - $2.99/MMBtu Gas volatility 23.44% - 73.05% Own credit risk 5% Total $ 59,065 Credit and Counterparty Risk Financial instruments that potentially subject us to concentrations of credit risk consist principally of derivatives and accounts receivable. Our derivatives expose us to credit risk from counterparties. As of March 31, 2016 , our derivative counterparties were Bank of Montreal, Barclays Bank PLC, BNP Paribas, Canadian Imperial Bank of Commerce, Citibank, N.A, Citizens Bank, National Association, Comerica Bank, Credit Agricole Corporate and Investment Bank, Credit Suisse Energy LLC, Credit Suisse International, ING Capital Markets LLC, JP Morgan Chase Bank N.A., Merrill Lynch Commodities, Inc., Morgan Stanley Capital Group Inc., Royal Bank of Canada, The Bank of Nova Scotia, The Toronto-Dominion Bank, Union Bank N.A. and Wells Fargo Bank, N.A. Our counterparties are all lenders, or affiliates of lenders, that participate in our credit facility. Our credit facility is secured by our oil, NGL and natural gas reserves, so we are not required to post any collateral, and we conversely do not receive collateral from our counterparties. On all transactions where we are exposed to counterparty risk, we analyze the counterparty’s financial condition prior to entering into an agreement, establish limits and monitor the appropriateness of these limits on an ongoing basis. We periodically obtain credit default swap information on our counterparties. Although we currently do not believe we have a specific counterparty risk with any party, our loss could be substantial if any of these parties were to fail to perform in accordance with the terms of the contract. This risk is managed by diversifying our derivatives portfolio. As of March 31, 2016 , each of these financial institutions had an investment grade credit rating. As of March 31, 2016 , our largest derivative asset balances were with Barclays Bank PLC , Credit Suisse Energy LLC , Wells Fargo Bank, N.A. and Morgan Stanley which accounted for approximately 15% , 12% , 11% , and 11% of our net derivative asset balances, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Breitburn Management Company LLC (“Breitburn Management”), our wholly-owned subsidiary, operates our assets and performs other administrative services for us such as accounting, corporate development, finance, land administration, legal and engineering. All of our employees, including our executives, are employees of Breitburn Management. Breitburn Management also provides administrative services to Pacific Coast Energy Company LP, formerly named BreitBurn Energy Company L.P. (“PCEC”), our predecessor, under an administrative services agreement, in exchange for a monthly fee for indirect expenses and reimbursement for all direct expenses, including incentive compensation plan costs and direct payroll and administrative costs related to PCEC properties and operations. For each of the three months ended March 31, 2016 and 2015 , the monthly fee paid by PCEC for indirect expenses was $700,000 . On February 5, 2016, PCEC provided written notice to Breitburn Management of its intention to terminate the administrative services agreement effective as of June 30, 2016. On April 8, 2015, Kurt A. Talbot, then Vice Chairman and Co-Head of the Investment Committee of EIG Global Energy Partners (EIG), was appointed to our Board in connection with the closing of our offerings of the Senior Secured Notes and Series B Preferred Units. On March 23, 2016, Mr. Talbot notified us that he would resign from the Board effective immediately. At March 31, 2016 and December 31, 2015 , we had a current receivable of $0.6 million and $1.7 million , respectively, due from PCEC related to the administrative services agreement and employee-related costs. For the three months ended March 31, 2016 and 2015 , the monthly charges to PCEC for indirect expenses totaled $2.1 million in each period, and charges for direct expenses including payroll and administrative costs totaled $2.0 million and $2.8 million , respectively. At March 31, 2016 and December 31, 2015 , we had receivables of $0.9 million and $0.7 million , respectively, due from certain of our other affiliates, primarily representing investments in natural gas processing facilities, for management fees due from them and operational expenses incurred on their behalf. |
Impairments
Impairments | 3 Months Ended |
Mar. 31, 2016 | |
Impairments [Abstract] | |
Impairments | Impairments Long-Lived Assets We review our oil and gas properties for impairment periodically or when events or circumstances indicate that their carrying value may not be recoverable. Determination as to whether and how much an asset is impaired involves subjectivity and management estimates on highly uncertain matters such as future commodity prices, the effects of inflation and technology improvements on operating expenses, production profiles, the outlook for market supply and demand conditions for oil and natural gas, and other factors. For purposes of assessing our oil and gas properties for potential impairment, management reviews the expected undiscounted future cash flows for our total proved and risk-adjusted probable and possible reserves. The undiscounted cash flow review includes inputs such as applicable NYMEX forward strip prices, estimated basis price differentials, expenses and capital estimates, and escalation factors. Management also considers the impact future price changes are likely to have on our future operating plans. If we determine that an impairment charge for a property is warranted, an impairment charge is recorded for the amount that the property’s carrying value exceeds the amount of its estimated discounted future net cash flows. In the first quarter of 2016, the estimated discounted future cash flows were determined by using applicable basis adjusted (i) nine-year NYMEX forward strip prices for oil, and (ii) ten-year NYMEX forward strip prices for natural gas, in each case, at the end of the reporting period, and escalated along with expenses and capital starting in (i) year ten for oil and (ii) year eleven for natural gas, and thereafter at 2% per year. Production and development cost estimates (e.g. operating expenses and development capital) are conformed to reflect the commodity price strip used. The associated property’s expected future net cash flows are discounted using a market-based weighted average cost of capital rate, which approximates 11% at March 31, 2016. We consider the inputs for our impairment calculations to be Level 3 inputs. The impairment reviews and calculations are based on assumptions that are consistent with our business plans. Non-cash impairment charges totaled $2.8 million for the three months ended March 31, 2016 , including $2.1 million in the Southeast, $0.5 million in the Permian Basin and $0.2 million in the Rockies, primarily related to the impact of the drop in commodity strip prices on projected future revenues of our lower margin properties. Impairments totaled $59.1 million for the three months ended March 31, 2015, including $33.1 million in the Permian Basin, $16.7 million in the Rockies and $9.3 million in Mid-Continent. Given the number of assumptions involved in the estimates, an estimate as to the sensitivity to earnings for these periods if other assumptions had been used in impairment reviews and calculations is not practicable. Favorable changes to some assumptions might have avoided the need to impair any assets in this period, whereas unfavorable changes might have caused an additional unknown number of other assets to become impaired. |
Other Long-Term Assets
Other Long-Term Assets | 3 Months Ended |
Mar. 31, 2016 | |
Other Assets [Abstract] | |
Other Long-Term Assets | Other Long-Term Assets As of March 31, 2016 , and December 31, 2015 , our other long-term assets were as follows: As of Thousands of dollars March 31, 2016 December 31, 2015 Debt issuance costs $ 16,113 $ 22,142 Available-for-sale securities 19,290 18,691 Deposit for Jay Field net profit interest obligation 18,263 18,263 Property reclamation deposit 10,736 10,736 Other 10,579 11,015 Total $ 74,981 $ 80,847 Effective January 1, 2016, the unamortized debt issuance costs of $37.0 million associated with our outstanding senior notes, which were formerly presented as a component of other long-term assets, are now reflected as a reduction to the carrying liability of senior notes, net on the consolidated balance sheets in connection with the adoption of ASU 2015-03. See Note 1 for a detailed discussion of the adoption of the change in accounting principle. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-Term Debt Our long-term debt is detailed in the following table: As of Thousands of dollars March 31, 2016 December 31, 2015 Credit facility $ 1,197,000 $ 1,229,000 Promissory note 2,938 2,938 9.25% Senior Secured Notes due 2020 650,000 650,000 8.625% Senior Unsecured Notes due 2020 305,000 305,000 7.875% Senior Unsecured Notes due 2022 850,000 850,000 Unamortized debt issuance costs and net (discount) premium on Senior Notes (a) (50,160 ) (52,806 ) Capital lease obligations 841 210 Total debt 2,955,619 2,984,342 Less: Current portion of long-term debt (172,000 ) (154,000 ) Total long-term debt $ 2,783,619 $ 2,830,342 (a) In connection with the adoption of ASU 2015-03, unamortized senior note debt issuance costs at December 31, 2015 of $37.0 million were reclassified from other long-term assets to long-term debt. See Note 1 for a detailed discussion of the adoption of the change in accounting principle. Credit Facility As of March 31, 2016 , Breitburn Operating LP, our wholly-owned subsidiary, as borrower, and we and our wholly-owned subsidiaries, as guarantors, had a $5.0 billion revolving credit facility with Wells Fargo Bank, National Association, as Administrative Agent, Swing Line Lender and Issuing Lender, and a syndicate of banks with a maturity date of November 19, 2019. Our credit facility limits the amounts we can borrow to a borrowing base amount, determined by the lenders in their sole discretion based on their valuation of our proved reserves and their internal criteria. Historically, our borrowing base has been redetermined semi-annually. As of March 31, 2016 , our borrowing base was $1.8 billion . On March 28, 2016, we entered into a Consent (the “Consent”) to the Credit Agreement, which delayed the scheduled borrowing base redetermination from April 1, 2016 to May 1, 2016 and reduced the elected commitment amount under the Credit Agreement from $1.8 billion to $1.4 billion . During the three months ended March 31, 2016 , we recognized $4.6 million of interest expense for the write-off of debt issuance costs related to the reduction of the elected commitment amount under our Credit Agreement. As of May 9, 2016, the borrowing base has not been redetermined. We expect the borrowing base to be redetermined in late May 2016. As of March 31, 2016 and December 31, 2015 , we had $1.2 billion at each date in indebtedness outstanding under our credit facility. At March 31, 2016 , the 1-month LIBOR interest rate plus an applicable spread was 2.6863% on the 1-month LIBOR portion of $1.2 billion . As of March 31, 2016 , we were in compliance with the covenants in the Credit Agreement. Although we currently expect our sources of capital to be sufficient to meet our near-term liquidity needs, the lenders under our credit facility could reduce the borrowing base to an amount below our current outstanding borrowings when our borrowing base is redetermined, and we may not be able to satisfy our liquidity requirements, given current oil prices and the discretion of our lenders to decrease our borrowing base. Based upon current commodity prices and other factors at the time of future redeterminations, we expect our borrowing base to be significantly decreased. Without a waiver from our lenders, our Credit Agreement currently provides that if the borrowing base is reduced below our current outstanding borrowings, we are required to repay the deficiency in five equal monthly installments. Senior Secured Notes As of March 31, 2016, we had $650 million of Senior Secured Notes, which had a carrying value of $614.1 million , net of unamortized discount of $16.5 million and unamortized debt issuance costs of $19.4 million . Interest on our Senior Secured Notes is payable quarterly in March, June, September and December. As of March 31, 2016 , the fair value of our Senior Secured Notes was estimated to be approximately $463.2 million , based on quoted yields for similarly rated debt instruments currently available in the market, and we consider the valuation of our Senior Secured Notes to be Level 3. As of March 31, 2016 , we were in compliance with the covenants in the indentures governing our Senior Secured Notes. Senior Unsecured Notes As of March 31, 2016 , we had $305 million in aggregate principal amount of 2020 Senior Notes, which had a carrying value of $298.2 million , net of unamortized discount of $2.8 million and unamortized debt issuance costs of $4.0 million . In addition, as of March 31, 2016 , we had $850 million in aggregate principal amount of 2022 Senior Notes, which had a carrying value of $842.6 million , net of unamortized premium of $4.3 million and unamortized debt issuance costs of $11.7 million . Interest on the 2020 Senior Notes and the 2022 Senior Notes is payable twice a year in April and October. As of March 31, 2016 , the fair value of our 2020 Senior Notes and 2022 Senior Notes were estimated to be approximately $31 million and $82 million , respectively, based on prices quoted from third-party financial institutions. We consider the inputs to the valuation of our Senior Unsecured Notes to be Level 2, as fair value was estimated based on prices quoted from third-party financial institutions. As of March 31, 2016 , we were in compliance with the covenants in the indentures governing our Senior Unsecured Notes. Interest Expense Our interest expense is detailed as follows: Three Months Ended March 31, Thousands of dollars 2016 2015 Credit Facility (including commitment fees) and other long-term debt $ 8,999 $ 13,965 Senior Secured Notes 15,031 — Senior Unsecured Notes 23,311 23,311 Amortization of net discount/premium and debt issuance costs (a) 8,675 2,389 Capitalized interest (27 ) — Total $ 55,989 $ 39,665 (a) The three months ended March 31, 2016 included a write-off of $4.6 million of debt issuance costs related to the reduction of the elected commitment amount under our Credit Agreement. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | Condensed Consolidating Financial Statements We and Breitburn Finance Corporation (and BOLP, with respect to the Senior Secured Notes), as co-issuers, and certain of our subsidiaries, as guarantors, issued the Senior Secured Notes and the Senior Unsecured Notes (collectively, the “Senior Notes”). All but two of our subsidiaries have guaranteed the Senior Notes, and our only non-guarantor subsidiaries, Breitburn Collingwood Utica LLC and ETSWDC, are minor subsidiaries. In accordance with Rule 3-10 of Regulation S-X, we are not presenting condensed consolidating financial statements as we have no independent assets or operations; Breitburn Finance Corporation, the subsidiary co-issuer that does not guarantee the Senior Notes, is a wholly-owned finance subsidiary; all of our material subsidiaries are wholly-owned and have guaranteed the Senior Notes; and all of the guarantees are full, unconditional, joint and several. Each guarantee of each of the Senior Notes is subject to release in the following customary circumstances: (1) a disposition of all or substantially all the assets of the guarantor subsidiary (including by way of merger or consolidation) to a third person, provided the disposition complies with the applicable indenture, (2) a disposition of the capital stock of the guarantor subsidiary to a third person, if the disposition complies with the applicable indenture and as a result the guarantor subsidiary ceases to be our subsidiary, (3) the designation by us of the guarantor subsidiary as an unrestricted subsidiary, (4) legal or covenant defeasance of such series of Senior Notes or satisfaction and discharge of the related indenture, (5) the liquidation or dissolution of the guarantor subsidiary, provided no default under the applicable indenture exists, or (6) the guarantor subsidiary ceases both (a) to guarantee any other indebtedness of ours or any other guarantor subsidiary and (b) to be an obligor under any bank credit facility. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations ARO is based on our net ownership in wells and facilities and our estimate of the costs to abandon and remediate those wells and facilities together with our estimate of the future timing of the costs to be incurred. Payments to settle ARO occur over the operating lives of the assets, estimated to range from less than one year to 50 years. Estimated cash flows have been discounted at our credit-adjusted risk-free rate of approximately 14% for the three months ended March 31, 2016 and 14% for the year ended December 31, 2015 , and adjusted for inflation using a rate of 2% . Our credit-adjusted risk-free rate is calculated based on our cost of borrowing adjusted for the effect of our credit standing and specific industry and business risk. We consider the inputs to our ARO valuation to be Level 3, as fair value is determined using discounted cash flow methodologies based on standardized inputs that are not readily observable in public markets. Changes in ARO for the period ended March 31, 2016 , and the year ended December 31, 2015 are presented in the following table: Three Months Ended Year Ended Thousands of dollars March 31, 2016 December 31, 2015 Carrying amount, beginning of period $ 254,378 $ 238,411 Liabilities added from acquisitions 78 796 Liabilities related to divested properties (8,380 ) (261 ) Liabilities incurred from drilling 17 2,268 Liabilities settled (907 ) (7,744 ) Revision of estimates 118 3,954 Accretion expense 4,331 16,954 Carrying amount, end of period 249,635 254,378 Less: Current portion of ARO (1,679 ) (2,341 ) Non-current portion of ARO $ 247,956 $ 252,037 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the normal course of business, we have performance obligations that are secured, in whole or in part, by surety bonds or letters of credit. These obligations primarily relate to abandonments, environmental and other responsibilities where governmental and other organizations require such support. These surety bonds and letters of credit are issued by financial institutions and are required to be reimbursed by us if drawn upon. At March 31, 2016 and December 31, 2015 , we had approximately $31 million and $27 million , respectively, of surety bonds. At March 31, 2016 and December 31, 2015 , we had approximately $32.4 million and $25.8 million , respectively, in letters of credit outstanding. Legal Proceedings Although we may, from time to time, be involved in litigation and claims arising out of our operations in the normal course of business, we are not currently a party to any material legal proceedings. |
Partners' Equity
Partners' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Partners' Capital [Abstract] | |
Partners' Equity | Partners’ Equity Preferred Units On April 8, 2015, we issued in private offerings $350 million of Series B Preferred Units at an issue price of $7.50 per unit. We received approximately $337.2 million from this offering, net of fees and estimated expenses, which we primarily used to repay borrowings under our credit facility. The Series B Preferred Units rank senior to the Common Units (as defined below) and on parity with the Series A Preferred Units (as defined below) with respect to the payment of current distributions. For the three months ended March 31, 2016 , we elected to pay our Series B Preferred Unit distributions in kind by issuing additional Series B Preferred Units (or, if elected by the unitholder, by issuing Common Units in lieu of such Series B Preferred Units) in lieu of cash. During the three months ended March 31, 2016 , we declared distributions on our Series B Preferred Units at a monthly rate of 0.006666 Series B Preferred Units per unit, in the form of a total of 818,626 Series B Preferred Units and 163,314 Common Units. During the three months ended March 31, 2016 , we recognized $7.4 million of accrued distributions on the Series B Preferred Units, which were included in non-cash distributions to Series B preferred unitholders on the consolidated statements of operations. On May 21, 2014, we sold 8.0 million Series A Preferred Units in a public offering at a price of $25.00 per Series A Preferred Unit, resulting in proceeds of $193.2 million net of underwriting discount and offering expenses of $6.8 million . The Series A Preferred Units rank senior to the Common Units and on parity with the Series B Preferred Units with respect to the payment of current distributions. We pay cumulative distributions in cash on the Series A Preferred Units on a monthly basis at a monthly rate of $0.171875 per Series A Preferred Unit. During each of the three months ended March 31, 2016 and March 31, 2015 , we recognized $4.1 million of accrued distributions on the Series A Preferred Units, which were included in distributions to Series A preferred unitholders on the consolidated statements of operations. Common Units At each of March 31, 2016 and December 31, 2015 , we had approximately 213.7 million and 213.5 million , respectively, of common units representing limited partner interests in us (“Common Units”) outstanding. During the three months ended March 31, 2016 and 2015 , we issued 163,314 and zero Common Units, respectively, to a Series B Preferred unitholder that elected to receive its paid in kind distributions in Common Units. During each of the three months ended March 31, 2016 and 2015 , we issued less than 0.1 million Common Units, to non-employee directors for restricted phantom units (“RPUs”) that vested in January 2016 and January 2015. At March 31, 2016 and December 31, 2015 , there were approximately 21.0 million and 3.6 million , respectively, of units outstanding under our long-term incentive plan (“LTIP”) that were eligible to be paid in Common Units upon vesting. In 2016, we declared no cash distributions to holders of our Common Units and our RPUs. In response to current commodity and financial market conditions, the Board suspended distributions on Common Units effective with the third monthly payment attributable to the third quarter of 2015. During the three months ended March 31, 2015 , we paid cash distributions of approximately $52.7 million , or $0.2499 per Common Unit. During the three months ended March 31, 2016 and 2015 , we paid zero and $1.4 million , respectively, in cash at a rate equal to the distributions paid to our holders of Common Units to holders of outstanding unvested RPUs issued under our LTIP. Earnings per Common Unit FASB Accounting Standards require use of the “two-class” method of computing earnings per unit for all periods presented. The “two-class” method is an earnings allocation formula that determines earnings per unit for each class of common unit and participating security as if all earnings for the period had been distributed. Unvested restricted unit awards that earn non-forfeitable dividend rights qualify as participating securities and, accordingly, are included in the basic computation. Our unvested RPUs and convertible phantom units (“CPUs”) participate in distributions on an equal basis with Common Units. Accordingly, the presentation below is prepared on a combined basis and is presented as net loss per common unit. The following is a reconciliation of net loss and weighted average units for calculating basic net loss per common unit and diluted net loss per common unit. Three Months Ended March 31, Thousands, except per unit amounts 2016 2015 Net loss attributable to the partnership $ (103,786 ) $ (58,825 ) Less: Net loss attributable to participating units — (1,432 ) Distributions to Series A preferred unitholders 4,125 4,125 Non-cash distributions to Series B preferred unitholders 7,386 — Net loss used to calculate basic and diluted net loss per unit $ (115,297 ) $ (61,518 ) Weighted average number of units used to calculate basic and diluted net loss per unit (in thousands): Common Units (a) 213,661 210,931 Dilutive units (b) — — Denominator for diluted net loss per unit 213,661 210,931 Net loss per common unit Basic $ (0.54 ) $ (0.29 ) Diluted $ (0.54 ) $ (0.29 ) (a) The three months ended March 31, 2016 excludes 18,033 of weighted average anti-dilutive units from the calculation of the denominator for basic earnings per common unit, as we were in a loss position. (b) The three months ended March 31, 2016 and 2015 exclude 413 and 706 , respectively, of weighted average anti-dilutive units from the calculation of the denominator for diluted earnings per common unit, as we were in a loss position. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, were as follows: Three Months Ended March 31, 2016 2015 Gain (loss) on Gain (loss) on Thousands of dollars Available-For-Sale Securities Post retirement Benefits Total Available-For-Sale Securities Post retirement Benefits Total Carrying amount, beginning of period $ (350 ) $ 121 $ (229 ) $ (112 ) $ (280 ) $ (392 ) Other comprehensive income before reclassification 882 — 882 195 — 195 Amounts reclassified from accumulated other comprehensive loss (a) (412 ) — (412 ) (22 ) — (22 ) Net current period other comprehensive income 470 — 470 173 — 173 Less: Noncontrolling interest 192 — 192 70 — 70 Carrying amount, end of period $ (72 ) $ 121 $ 49 $ (9 ) $ (280 ) $ (289 ) (a) Amounts were reclassified from accumulated other comprehensive loss to other expense (income), net on the consolidated statements of operations. |
Unit and Other Valuation-Based
Unit and Other Valuation-Based Compensation Plans | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation [Abstract] | |
Unit and Other Valuation-Based Compensation Plans | Unit and Other Valuation-Based Compensation Plans For detailed information on our various compensation plans, see Note 18 to the consolidated financial statements included in our 2015 Annual Report. Non-Cash Unit-Based Compensation During the three months ended March 31, 2016 , the Board approved the grant of 7.0 million RPUs to employees of Breitburn Management and 0.6 million to outside directors under our LTIP, which vest one-half after 30 months and one-half after 36 months . The weighted average grant date fair value of the RPUs granted during the three months ended March 31, 2016 was $0.68 per unit. During the three months ended March 31, 2016 , we recorded non-cash unit-based compensation expense of $5.3 million , of which $0.9 million was included in operating costs, $3.8 million was included in general and administrative expenses, and $0.6 million was included in restructuring costs on the consolidated statement of operations. During the three months ended March 31, 2015 , we recorded non-cash unit-based compensation expense of $7.7 million , of which $6.9 million was included in general and administrative expenses and $0.8 million was included in restructuring costs on the consolidated statement of operations. See Note 14 for a discussion of restructuring costs. As of March 31, 2016 , there was $26.8 million of unrecognized compensation cost related to our non-cash unit based compensation plans, which is expected to be recognized over the period from April 1, 2016 to December 31, 2018. During each of the three months ended March 31, 2016 and 2015 , we paid zero and $0.7 million for taxes withheld on RPUs. Phantom Units During the three months ended March 31, 2016 , the Board approved the grant of 10.4 million phantom units (“Phantom Units”) to employees of Breitburn Management and 0.6 million Phantom Units to outside directors under our LTIP. Phantom Units vest one-half after 18 months and one-half after 24 months and are settled in cash (or Common Units if elected by us), for each outstanding and vested unit equal to the fair market value of one Common Unit upon vesting, with a minimum cash value of $0.50 per Phantom Unit with respect to employees. The Phantom Units are accounted for as a liability and remeasured at fair value at the end of each reporting period, with the changes to fair value recognized over the vesting period. The weighted average grant date fair value of the Phantom Units was $0.68 per unit during the three months ended March 31, 2016 . During the three months ended March 31, 2016 , we recorded compensation expense for the Phantom Units of $0.8 million , of which $0.6 million was included in operating costs and $0.2 million was included in general and administrative expenses on the consolidated statement of operations. As of March 31, 2016 , there was $5.3 million of unrecognized compensation cost related to unvested Phantom Units, which is expected to be recognized over the period from April 1, 2016 to January 1, 2018. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | Restructuring Costs During the three months ended March 31, 2016 and 2015 , we executed workforce reduction plans as part of company-wide reorganization efforts intended to reduce costs, due in part to lower commodity prices. In connection with the reductions in workforce, we incurred total costs of approximately $2.8 million and $4.9 million for the three months ended March 31, 2016 and 2015 , respectively, which included severance cash payments, accelerated vesting of LTIP grants for certain individuals and other employee-related termination costs. The 2016 reduction was communicated to affected employees on various dates during March 2016, and all such notifications were completed by March 31, 2016. The 2015 reduction was communicated to affected employees on various dates during March 2015, and all such notifications were completed by March 31, 2015. The plans resulted in a reduction of 57 employees and 37 employees for the three months ended March 31, 2016 and 2015 , respectively. In connection with the 2016 reduction, we expect our total cost to be approximately $5.2 million , of which $2.8 million was incurred in the first quarter of 2016, which included severance cash payments, accelerated vesting of LTIP grants for certain individuals and other employee-related termination costs. Three Months Ended March 31, Thousands of dollars 2016 2015 Severance payments $ 1,943 $ 3,815 Unit-based compensation expense 638 814 Other termination costs 228 289 Total $ 2,809 $ 4,918 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 13, 2016, the Board adopted the Key Executive Incentive Plan (“KEIP”) and the Key Employee Program (“KEP”). Participants in the KEIP will be eligible to receive cash payments in two equal installments, the first of which is contingent upon (i) entry into a definitive agreement for a transaction that de-levers our balance sheet and on satisfactory performance against 2016 objectives; the second of which is contingent upon (ii) the consummation of the deleveraging transaction (after determination by the Board of performance achievement); and both of which are contingent upon (iii) meeting performance thresholds tied to production and lease operating expense; and (iv) satisfactory individual performance of each participant. The maximum aggregate amount payable to all participants under the KEIP is approximately $10.7 million . Participants must be employed on the scheduled payment dates in order to receive a payment under the KEIP. If a participant in the KEIP voluntarily terminates his employment or is terminated for cause prior to the consummation of the deleveraging transaction, the participant must repay all amounts received under the KEIP as of such date. Participants in the KEP will be eligible to receive quarterly cash payments at the Board’s discretion, which are contingent on meeting performance thresholds tied to production and lease operating expense and satisfactory individual performance. If a participant in the KEP voluntarily terminates his or her employment or is terminated for cause prior to the one year anniversary of the KEP, the participant must repay all amounts received under the KEP as of such date. |
Organization and Basis of Pre23
Organization and Basis of Presentation Change in Accounting Principle (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of Effect of Change in Accounting Principles | In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, Simplifying the Presentation of Debt Issuance Costs . The objective of ASU 2015-03 is to simplify the presentation of debt issuance costs in financial statements by presenting such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements . Under ASU 2015-15, a company may defer debt issuance costs associated with line-of-credit arrangements and present such costs as an asset, subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Effective January 1, 2016, we adopted these standards which required retroactive application and represented a change in accounting principle. The unamortized debt issuance costs of approximately $37.0 million associated with our outstanding senior notes, which were formerly presented as a component of other long-term assets on the consolidated balance sheets, are reflected as a reduction to the carrying liability of our senior notes. Debt issuance costs associated with our credit facility remain classified in other long-term assets and continue to be charged to interest expense over the term of the facility. As a result of this change in accounting principle, the consolidated balance sheet at December 31, 2015 was adjusted as follows: December 31, 2015 Previously Effect of Adoption of Thousands of dollars Reported Accounting Principle As Adjusted Assets: Other long-term assets $ 117,872 $ (37,025 ) $ 80,847 Total assets 4,872,412 (37,025 ) 4,835,387 Liabilities: Senior notes, net $ 1,789,219 $ (37,025 ) $ 1,752,194 Total long-term debt 2,867,367 (37,025 ) 2,830,342 Total liabilities 3,466,517 (37,025 ) 3,429,492 Total liabilities and equity 4,872,412 (37,025 ) 4,835,387 |
Financial Instruments and Fai24
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments [Abstract] | |
Schedule of Price Risk Derivatives | We had the following commodity derivative contracts in place at March 31, 2016 : Year 2016 2017 2018 2019 Oil Positions: Fixed Price Swaps - NYMEX WTI Volume (Bbl/d) 17,404 14,519 1,493 1,000 Average Price ($/Bbl) $ 82.92 $ 82.81 $ 64.02 $ 56.35 Fixed Price Swaps - ICE Brent Volume (Bbl/d) 4,300 298 — — Average Price ($/Bbl) $ 95.17 $ 97.50 $ — $ — Collars - NYMEX WTI Volume (Bbl/d) 1,500 — — — Average Floor Price ($/Bbl) $ 80.00 $ — $ — $ — Average Ceiling Price ($/Bbl) $ 102.00 $ — $ — $ — Collars - ICE Brent Volume (Bbl/d) 500 — — — Average Floor Price ($/Bbl) $ 90.00 $ — $ — $ — Average Ceiling Price ($/Bbl) $ 101.25 $ — $ — $ — Puts - NYMEX WTI Volume (Bbl/d) 1,000 — — — Average Price ($/Bbl) $ 90.00 $ — $ — $ — Total: Volume (Bbl/d) 24,704 14,817 1,493 1,000 Average Price ($/Bbl) $ 85.31 $ 83.11 $ 64.02 $ 56.35 Natural Gas Positions: Fixed Price Swaps - MichCon City-Gate Volume (MMBtu/d) 29,000 24,000 17,500 10,000 Average Price ($/MMBtu) $ 3.91 $ 3.71 $ 3.10 $ 3.15 Fixed Price Swaps - Henry Hub Volume (MMBtu/d) 42,050 21,016 2,870 — Average Price ($/MMBtu) $ 4.02 $ 4.29 $ 3.74 $ — Collars - Henry Hub Volume (MMBtu/d) 630 595 — — Average Floor Price ($/MMBtu) $ 4.00 $ 4.00 $ — — Average Ceiling Price ($/MMBtu) $ 5.55 $ 6.15 $ — $ — Puts - Henry Hub Volume (MMBtu/d) 11,350 10,445 — — Average Price ($/MMBtu) $ 4.00 $ 4.00 $ — $ — Deferred Premium ($/MMBtu) $ 0.66 $ 0.69 $ — $ — Total: Volume (MMBtu/d) 83,030 56,056 20,370 10,000 Average Price ($/MMBtu) $ 3.98 $ 3.98 $ 3.19 $ 3.15 |
Prepaid Derivative Premiums | As of March 31, 2016 , premiums paid in 2012 related to oil and natural gas derivatives to be settled beyond March 31, 2016 were as follows: Year Thousands of dollars 2016 2017 Oil $ 5,589 $ 734 Natural gas $ 715 $ — |
Schedule of Interest Rate Derivatives | Interest Rate Activities We are subject to interest rate risk associated with loans under our credit facility that bear interest based on floating rates. To fix a portion of our floating LIBOR-base debt under our credit facility, we had the following interest rate swaps in place at March 31, 2016 : Year 2016 2017 Fixed Rate Swaps - LIBOR Notional Amount (thousands of dollars) $ 710,000 $ 200,000 Average Fixed Rate 1.28 % 1.23 % We do not currently designate any of our interest rate derivatives as cash flow hedges for financial accounting purposes. |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Fair Value of Financial Instruments The following table presents the fair value of our derivative instruments not designated as hedging instruments: Balance sheet location, thousands of dollars Oil Commodity Derivatives Natural Gas Commodity Derivatives Interest Rate Derivatives Commodity Derivatives Netting (a) Total Financial Instruments As of March 31, 2016 Assets Current assets - derivative instruments $ 346,071 $ 45,448 $ — $ (2,690 ) $ 388,829 Other long-term assets - derivative instruments 160,194 21,530 — (2,066 ) 179,658 Total assets 506,265 66,978 — (4,756 ) 568,487 Liabilities Current liabilities - derivative instruments (3 ) (2,699 ) (4,297 ) 2,690 (4,309 ) Long-term liabilities - derivative instruments — (2,179 ) (639 ) 2,066 (752 ) Total liabilities (3 ) (4,878 ) (4,936 ) 4,756 (5,061 ) Net assets (liabilities) $ 506,262 $ 62,100 $ (4,936 ) $ — $ 563,426 As of December 31, 2015 Assets Current assets - derivative instruments $ 397,748 $ 44,426 $ 222 $ (2,769 ) $ 439,627 Other long-term assets - derivative instruments 202,140 27,105 216 (2,697 ) 226,764 Total assets 599,888 71,531 438 (5,466 ) 666,391 Liabilities Current liabilities - derivative instruments (15 ) (2,740 ) (4,476 ) 2,769 (4,462 ) Long-term liabilities - derivative instruments — (2,865 ) (87 ) 2,697 (255 ) Total liabilities (15 ) (5,605 ) (4,563 ) 5,466 (4,717 ) Net assets (liabilities) $ 599,873 $ 65,926 $ (4,125 ) $ — $ 661,674 (a) Represents counterparty netting under derivative master agreements. The agreements allow for netting of oil and natural gas commodity derivative instruments. These derivative instruments are reflected net on the consolidated balance sheets. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table presents gains and losses on derivative instruments not designated as hedging instruments: Thousands of dollars Oil Commodity Derivatives (a) Natural Gas Commodity Derivatives (a) Interest Rate Derivatives (b) Total Financial Instruments Three Months Ended March 31, 2016 Net gain (loss) $ 28,375 $ 9,548 $ (2,343 ) $ 35,580 Three Months Ended March 31, 2015 Net gain (loss) $ 118,514 $ 18,678 $ (1,812 ) $ 135,380 (a) Included in gain on commodity derivative instruments, net on the consolidated statements of operations. (b) Included in loss on interest rate swaps on the consolidated statements of operations. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables set forth, by level within the hierarchy, the fair value of our financial instrument assets and liabilities that were accounted for at fair value on a recurring basis. All fair values reflected below and on the consolidated balance sheets have been adjusted for nonperformance risk. Thousands of dollars Level 1 Level 2 Level 3 Total As of March 31, 2016 Assets (liabilities) Crude Oil Crude oil swaps $ — $ 470,930 $ — $ 470,930 Crude oil collars — — 22,205 22,205 Crude oil puts — — 13,127 13,127 Natural Gas Natural gas swaps — 51,082 — 51,082 Natural gas collars — — 583 583 Natural gas puts — — 10,435 10,435 Interest rate swaps Interest rate swaps — (4,936 ) — (4,936 ) Available-for-sale securities Equities 1,378 — — 1,378 Mutual funds 12,073 — — 12,073 Exchange traded funds 5,839 — — 5,839 Net assets $ 19,290 $ 517,076 $ 46,350 $ 582,716 Thousands of dollars Level 1 Level 2 Level 3 Total As of December 31, 2015 Assets (liabilities) Crude Oil Crude oil swaps $ — $ 552,552 $ — $ 552,552 Crude oil collars — — 29,737 29,737 Crude oil puts — — 17,584 17,584 Natural gas commodity derivatives Natural gas swaps — 54,182 — 54,182 Natural gas collars — — 618 618 Natural gas puts — — 11,126 11,126 Interest rate swaps Interest rate swaps — (4,125 ) — (4,125 ) Available-for-sale securities Equities 2,524 — — 2,524 Mutual funds 11,190 — — 11,190 Exchange traded funds 4,977 — — 4,977 Net assets $ 18,691 $ 602,609 $ 59,065 $ 680,365 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables set forth a reconciliation of changes in fair value of our derivative instruments classified as Level 3: Three Months Ended March 31, 2016 2015 Thousands of dollars Oil Natural Gas Oil Natural Gas Assets (a): Beginning balance $ 47,321 $ 11,744 $ 61,410 $ 19,892 Derivative instrument settlements (b) 13,981 2,114 10,987 3,567 Loss (b)(c) (25,970 ) (2,840 ) (13,296 ) (3,788 ) Ending balance $ 35,332 $ 11,018 $ 59,101 $ 19,671 (a) We had no changes in fair value of our derivative instruments classified as Level 3 related to sales, purchases or issuances. (b) Included in gain on commodity derivative instruments, net on the consolidated statements of operations. (c) Represents loss on mark-to-market of derivative instruments. |
Fair Value Inputs, Assets, Quantitative Information | For Level 3 derivative instruments measured at fair value on a recurring basis as of March 31, 2016 , the significant unobservable inputs used in the fair value measurements were as follows: Fair Value at Valuation Thousands of dollars March 31, 2016 Technique Unobservable Input Range Oil Options $ 35,332 Option Pricing Model Oil forward commodity prices $38.34/Bbl - $45.84/Bbl Oil volatility 26.58% - 60.07% Own credit risk 5% Natural Gas Options 11,018 Option Pricing Model Gas forward commodity prices $1.96/MMBtu - $2.97/MMBtu Gas volatility 26.24% - 47.25% Own credit risk 5% Total $ 46,350 For Level 3 derivative instruments measured at fair value on a recurring basis as of December 31, 2015 , the significant unobservable inputs used in the fair value measurements were as follows: Fair Value at Valuation Thousands of dollars December 31, 2015 Technique Unobservable Input Range Oil Options $ 47,321 Option Pricing Model Oil forward commodity prices $37.04/Bbl - $47.79/Bbl Oil volatility 32.24% - 44.95% Own credit risk 5% Natural Gas Options 11,744 Option Pricing Model Gas forward commodity prices $2.34/MMBtu - $2.99/MMBtu Gas volatility 23.44% - 73.05% Own credit risk 5% Total $ 59,065 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Assets | As of March 31, 2016 , and December 31, 2015 , our other long-term assets were as follows: As of Thousands of dollars March 31, 2016 December 31, 2015 Debt issuance costs $ 16,113 $ 22,142 Available-for-sale securities 19,290 18,691 Deposit for Jay Field net profit interest obligation 18,263 18,263 Property reclamation deposit 10,736 10,736 Other 10,579 11,015 Total $ 74,981 $ 80,847 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments | Our long-term debt is detailed in the following table: As of Thousands of dollars March 31, 2016 December 31, 2015 Credit facility $ 1,197,000 $ 1,229,000 Promissory note 2,938 2,938 9.25% Senior Secured Notes due 2020 650,000 650,000 8.625% Senior Unsecured Notes due 2020 305,000 305,000 7.875% Senior Unsecured Notes due 2022 850,000 850,000 Unamortized debt issuance costs and net (discount) premium on Senior Notes (a) (50,160 ) (52,806 ) Capital lease obligations 841 210 Total debt 2,955,619 2,984,342 Less: Current portion of long-term debt (172,000 ) (154,000 ) Total long-term debt $ 2,783,619 $ 2,830,342 |
Schedule of Interest Expense | Interest Expense Our interest expense is detailed as follows: Three Months Ended March 31, Thousands of dollars 2016 2015 Credit Facility (including commitment fees) and other long-term debt $ 8,999 $ 13,965 Senior Secured Notes 15,031 — Senior Unsecured Notes 23,311 23,311 Amortization of net discount/premium and debt issuance costs (a) 8,675 2,389 Capitalized interest (27 ) — Total $ 55,989 $ 39,665 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Change in Asset Retirement Obligation | Changes in ARO for the period ended March 31, 2016 , and the year ended December 31, 2015 are presented in the following table: Three Months Ended Year Ended Thousands of dollars March 31, 2016 December 31, 2015 Carrying amount, beginning of period $ 254,378 $ 238,411 Liabilities added from acquisitions 78 796 Liabilities related to divested properties (8,380 ) (261 ) Liabilities incurred from drilling 17 2,268 Liabilities settled (907 ) (7,744 ) Revision of estimates 118 3,954 Accretion expense 4,331 16,954 Carrying amount, end of period 249,635 254,378 Less: Current portion of ARO (1,679 ) (2,341 ) Non-current portion of ARO $ 247,956 $ 252,037 |
Partners' Equity (Tables)
Partners' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Partners' Capital [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of net loss and weighted average units for calculating basic net loss per common unit and diluted net loss per common unit. Three Months Ended March 31, Thousands, except per unit amounts 2016 2015 Net loss attributable to the partnership $ (103,786 ) $ (58,825 ) Less: Net loss attributable to participating units — (1,432 ) Distributions to Series A preferred unitholders 4,125 4,125 Non-cash distributions to Series B preferred unitholders 7,386 — Net loss used to calculate basic and diluted net loss per unit $ (115,297 ) $ (61,518 ) Weighted average number of units used to calculate basic and diluted net loss per unit (in thousands): Common Units (a) 213,661 210,931 Dilutive units (b) — — Denominator for diluted net loss per unit 213,661 210,931 Net loss per common unit Basic $ (0.54 ) $ (0.29 ) Diluted $ (0.54 ) $ (0.29 ) (a) The three months ended March 31, 2016 excludes 18,033 of weighted average anti-dilutive units from the calculation of the denominator for basic earnings per common unit, as we were in a loss position. (b) The three months ended March 31, 2016 and 2015 exclude 413 and 706 , respectively, of weighted average anti-dilutive units from the calculation of the denominator for diluted earnings per common unit, as we were in a loss position |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component, net of tax, were as follows: Three Months Ended March 31, 2016 2015 Gain (loss) on Gain (loss) on Thousands of dollars Available-For-Sale Securities Post retirement Benefits Total Available-For-Sale Securities Post retirement Benefits Total Carrying amount, beginning of period $ (350 ) $ 121 $ (229 ) $ (112 ) $ (280 ) $ (392 ) Other comprehensive income before reclassification 882 — 882 195 — 195 Amounts reclassified from accumulated other comprehensive loss (a) (412 ) — (412 ) (22 ) — (22 ) Net current period other comprehensive income 470 — 470 173 — 173 Less: Noncontrolling interest 192 — 192 70 — 70 Carrying amount, end of period $ (72 ) $ 121 $ 49 $ (9 ) $ (280 ) $ (289 ) (a) Amounts were reclassified from accumulated other comprehensive loss to other expense (income), net on the consolidated statements of operations. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Costs | Three Months Ended March 31, Thousands of dollars 2016 2015 Severance payments $ 1,943 $ 3,815 Unit-based compensation expense 638 814 Other termination costs 228 289 Total $ 2,809 $ 4,918 |
Organization and Basis of Pre31
Organization and Basis of Presentation Schedule of Effect of Change in Accounting Principles (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other long-term assets | $ 74,981 | $ 80,847 |
Liabilities and Equity | 4,715,386 | 4,835,387 |
Liabilities | 3,412,503 | 3,429,492 |
Long-term Debt, Excluding Current Maturities | 2,783,619 | 2,830,342 |
Senior notes, net | 1,754,840 | 1,752,194 |
Unamortized debt issuance costs | (16,113) | (22,142) |
Assets | $ 4,715,386 | 4,835,387 |
Adjustments for New Accounting Pronouncement [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other long-term assets | 117,872 | |
Liabilities and Equity | 4,872,412 | |
Liabilities | 3,466,517 | |
Long-term Debt, Excluding Current Maturities | 2,867,367 | |
Senior notes, net | 1,789,219 | |
Unamortized debt issuance costs | (37,025) | |
Assets | $ 4,872,412 |
Organization and Basis of Pre32
Organization and Basis of Presentation Reclassification (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Presentation of Financial Statements [Abstract] | ||
Notes Payable | $ 2,938 | $ 2,938 |
Other long-term debt | 3,779 | 3,148 |
Capital Lease Obligations | $ 841 | $ 210 |
Organization and Basis of Pre33
Organization and Basis of Presentation Liquidity (Details) - USD ($) $ in Thousands | May. 09, 2016 | Apr. 15, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Liquidity Disclosures [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | $ 2,955,619 | $ 2,984,342 | ||
Senior Notes Two [Member] | Subsequent Event [Member] | ||||
Liquidity Disclosures [Line Items] | ||||
Interest Payable | $ 33,500 | |||
Senior Notes One [Member] | Subsequent Event [Member] | ||||
Liquidity Disclosures [Line Items] | ||||
Interest Payable | $ 13,200 | |||
Senior Notes [Member] | ||||
Liquidity Disclosures [Line Items] | ||||
Right to accelerate repayment, minimum share of debt | 25.00% | |||
Scenario, Forecast [Member] | ||||
Liquidity Disclosures [Line Items] | ||||
Debt, Long-term and Short-term, Combined Amount | $ 3,000,000 |
Acquisitions, Dispositions an34
Acquisitions, Dispositions and Other Transactions Narrative (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016USD ($)Wells | Mar. 31, 2015USD ($) | Jan. 31, 2016USD ($)Wells | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Business Acquisition [Line Items] | |||||
Non-oil and gas assets | $ 3,864,022 | $ 3,932,882 | |||
Long-term asset retirement obligation | 247,956 | 252,037 | |||
Asset retirement obligation | 249,635 | $ 254,378 | $ 238,411 | ||
CO2 Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Productive Oil Wells, Number of Wells, Gross | Wells | 6 | ||||
Assets acquired net of liabilities assumed | $ 70,500 | $ 3,900 | |||
Payments to acquire businesses, net of cash acquired | $ 13,700 | ||||
Mid-Cont [Member] | |||||
Business Acquisition [Line Items] | |||||
Proceeds from Sale of Oil and Gas Property and Equipment | $ 12,000 | ||||
Productive Oil Wells, Number of Wells, Gross | Wells | 5 |
Acquisitions, Dispositions an35
Acquisitions, Dispositions and Other Transactions Purchase Price Allocation (Details) $ in Thousands | Mar. 31, 2016USD ($) | Jan. 31, 2016USD ($)Wells | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Cash | $ 81,691 | $ 10,464 | $ 8,690 | $ 12,628 | |
Current derivative instrument assets | 388,829 | 439,627 | |||
Non-oil and gas assets | 3,864,022 | 3,932,882 | |||
Long-term derivative instrument assets | 179,658 | 226,764 | |||
Other long-term assets | 74,981 | 80,847 | |||
Current derivative instrument liabilities | 4,309 | 4,462 | |||
Current asset retirement obligation | 1,679 | 2,341 | |||
Credit facility debt | 1,197,000 | 1,229,000 | |||
Senior notes at fair value | 650,000 | 650,000 | |||
Long-term asset retirement obligation | 247,956 | 252,037 | |||
Other long-term liabilities | $ 19,751 | $ 25,008 | |||
CO2 Assets [Member] | |||||
Business Acquisition [Line Items] | |||||
Assets acquired net of liabilities assumed | $ 3,900 | $ 70,500 | |||
Productive Oil Wells, Number of Wells, Gross | Wells | 6 |
Acquisitions, Dispositions an36
Acquisitions, Dispositions and Other Transactions Dispositions (Details) - Mid-Cont [Member] $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)Wells | |
Property, Plant and Equipment [Line Items] | |
Proceeds from Sale of Oil and Gas Property and Equipment | $ | $ 12 |
Productive Oil Wells, Number of Wells, Gross | Wells | 5 |
Gain (Loss) on Disposition of Oil and Gas Property | $ | $ 12.3 |
Royalty Agreements [Member] | |
Property, Plant and Equipment [Line Items] | |
Productive Oil Wells, Number of Wells, Gross | Wells | 42 |
Financial Instruments and Fai37
Financial Instruments and Fair Value Measurements - Oil and Natural Gas Contracts (Details) | Mar. 31, 2016Energy / DaysDays / bbl$ / Energy$ / bbl |
Oil | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 24,704 |
Derivative, Swap Type, Average Fixed Price | 85.31 |
Oil | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 14,817 |
Derivative, Swap Type, Average Fixed Price | 83.11 |
Oil | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 1,493 |
Derivative, Swap Type, Average Fixed Price | 64.02 |
Oil | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 1,000 |
Derivative, Swap Type, Average Fixed Price | 56.35 |
Natural Gas | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 83,030 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.98 |
Natural Gas | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 56,056 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.98 |
Natural Gas | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 20,370 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.19 |
Natural Gas | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 10,000 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.15 |
NYMEX WTI [Member] | Oil | Swap [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 17,404 |
Derivative, Swap Type, Average Fixed Price | 82.92 |
NYMEX WTI [Member] | Oil | Swap [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 14,519 |
Derivative, Swap Type, Average Fixed Price | 82.81 |
NYMEX WTI [Member] | Oil | Swap [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 1,493 |
Derivative, Swap Type, Average Fixed Price | 64.02 |
NYMEX WTI [Member] | Oil | Swap [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 1,000 |
Derivative, Swap Type, Average Fixed Price | 56.35 |
NYMEX WTI [Member] | Oil | Collars [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 1,500 |
Derivative, Average floor price | 80 |
Derivative, Average ceiling price | 102 |
NYMEX WTI [Member] | Oil | Collars [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average floor price | 0 |
Derivative, Average ceiling price | 0 |
NYMEX WTI [Member] | Oil | Collars [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average floor price | 0 |
Derivative, Average ceiling price | 0 |
NYMEX WTI [Member] | Oil | Collars [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average floor price | 0 |
Derivative, Average ceiling price | 0 |
NYMEX WTI [Member] | Oil | Put Option [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 1,000 |
Derivative, Average Price Risk Option Strike Price | 90 |
NYMEX WTI [Member] | Oil | Put Option [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average Price Risk Option Strike Price | 0 |
NYMEX WTI [Member] | Oil | Put Option [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average Price Risk Option Strike Price | 0 |
NYMEX WTI [Member] | Oil | Put Option [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average Price Risk Option Strike Price | 0 |
IPE Brent [Member] | Oil | Swap [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 4,300 |
Derivative, Swap Type, Average Fixed Price | 95.17 |
IPE Brent [Member] | Oil | Swap [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 298 |
Derivative, Swap Type, Average Fixed Price | 97.50 |
IPE Brent [Member] | Oil | Swap [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Swap Type, Average Fixed Price | 0 |
IPE Brent [Member] | Oil | Swap [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Swap Type, Average Fixed Price | 0 |
IPE Brent [Member] | Oil | Collars [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 500 |
Derivative, Average floor price | 90 |
Derivative, Average ceiling price | 101.25 |
IPE Brent [Member] | Oil | Collars [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average floor price | 0 |
Derivative, Average ceiling price | 0 |
IPE Brent [Member] | Oil | Collars [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average floor price | 0 |
Derivative, Average ceiling price | 0 |
IPE Brent [Member] | Oil | Collars [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Days / bbl | 0 |
Derivative, Average floor price | 0 |
Derivative, Average ceiling price | 0 |
Mich Con City-Gate [Member] | Natural Gas | Swap [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 29,000 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.91 |
Mich Con City-Gate [Member] | Natural Gas | Swap [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 24,000 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.71 |
Mich Con City-Gate [Member] | Natural Gas | Swap [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 17,500 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.10 |
Mich Con City-Gate [Member] | Natural Gas | Swap [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 10,000 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.15 |
Henry Hub [Member] | Natural Gas | Swap [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 42,050 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 4.02 |
Henry Hub [Member] | Natural Gas | Swap [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 21,016 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 4.29 |
Henry Hub [Member] | Natural Gas | Swap [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 2,870 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 3.74 |
Henry Hub [Member] | Natural Gas | Swap [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 0 |
Derivative, Swap Type, Average Fixed Price | $ / Energy | 0 |
Henry Hub [Member] | Natural Gas | Collars [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 630 |
Derivative, Average floor price | $ / Energy | 4 |
Derivative, Average ceiling price | $ / Energy | 5.55 |
Henry Hub [Member] | Natural Gas | Collars [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 595 |
Derivative, Average floor price | $ / Energy | 4 |
Derivative, Average ceiling price | $ / Energy | 6.15 |
Henry Hub [Member] | Natural Gas | Collars [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 0 |
Derivative, Average floor price | $ / Energy | 0 |
Derivative, Average ceiling price | $ / Energy | 0 |
Henry Hub [Member] | Natural Gas | Collars [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 0 |
Derivative, Average floor price | $ / Energy | 0 |
Derivative, Average ceiling price | $ / Energy | 0 |
Henry Hub [Member] | Natural Gas | Put Option [Member] | Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 11,350 |
Derivative, Average Price Risk Option Strike Price | $ / Energy | 4 |
Derivative, Average Deferred Premium Per Unit | $ / Energy | 0.66 |
Henry Hub [Member] | Natural Gas | Put Option [Member] | Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 10,445 |
Derivative, Average Price Risk Option Strike Price | $ / Energy | 4 |
Derivative, Average Deferred Premium Per Unit | $ / Energy | 0.69 |
Henry Hub [Member] | Natural Gas | Put Option [Member] | Term of Calendar 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 0 |
Derivative, Average Price Risk Option Strike Price | $ / Energy | 0 |
Derivative, Average Deferred Premium Per Unit | $ / Energy | 0 |
Henry Hub [Member] | Natural Gas | Put Option [Member] | Term of Calendar 2019 [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | Energy / Days | 0 |
Derivative, Average Price Risk Option Strike Price | $ / Energy | 0 |
Derivative, Average Deferred Premium Per Unit | $ / Energy | 0 |
Financial Instruments and Fai38
Financial Instruments and Fair Value Measurements - Prepaid Derivative Premiums (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Oil | Term of Calendar 2016 [Member] | |
Prepaid Derivative Premiums [Line Items] | |
Prepaid Derivative Premium | $ 5,589 |
Oil | Term of Calendar 2017 [Member] | |
Prepaid Derivative Premiums [Line Items] | |
Prepaid Derivative Premium | 734 |
Natural Gas | Term of Calendar 2016 [Member] | |
Prepaid Derivative Premiums [Line Items] | |
Prepaid Derivative Premium | 715 |
Natural Gas | Term of Calendar 2017 [Member] | |
Prepaid Derivative Premiums [Line Items] | |
Prepaid Derivative Premium | $ 0 |
Financial Instruments and Fai39
Financial Instruments and Fair Value Measurements - Interest Rate Swaps (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Term of Calendar 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 710,000 |
Derivative, Fixed Interest Rate | 1.28% |
Term of Calendar 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 200,000 |
Derivative, Fixed Interest Rate | 1.23% |
Financial Instruments and Fai40
Financial Instruments and Fair Value Measurements - Not Designated As Hedging Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current assets - derivative instruments | $ 388,829 | $ 439,627 | |
Long-term derivative instrument assets | 179,658 | 226,764 | |
Current liabilities - derivative instruments | (4,309) | (4,462) | |
Long-term liabilities - derivative instruments | (752) | (255) | |
Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current assets - derivative instruments | 388,829 | 439,627 | |
Long-term derivative instrument assets | 179,658 | 226,764 | |
Total assets | 568,487 | 666,391 | |
Current liabilities - derivative instruments | (4,309) | (4,462) | |
Long-term liabilities - derivative instruments | (752) | (255) | |
Total liabilities | (5,061) | (4,717) | |
Net assets (liabilities) | 563,426 | 661,674 | |
Oil Commodity Derivatives | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current assets - derivative instruments | 346,071 | 397,748 | |
Long-term derivative instrument assets | 160,194 | 202,140 | |
Total assets | 506,265 | 599,888 | |
Current liabilities - derivative instruments | (3) | (15) | |
Long-term liabilities - derivative instruments | 0 | 0 | |
Total liabilities | (3) | (15) | |
Net assets (liabilities) | 506,262 | 599,873 | |
Natural Gas Commodity Derivatives | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current assets - derivative instruments | 45,448 | 44,426 | |
Long-term derivative instrument assets | 21,530 | 27,105 | |
Total assets | 66,978 | 71,531 | |
Current liabilities - derivative instruments | (2,699) | (2,740) | |
Long-term liabilities - derivative instruments | (2,179) | (2,865) | |
Total liabilities | (4,878) | (5,605) | |
Net assets (liabilities) | 62,100 | 65,926 | |
Interest Rate Derivatives | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current assets - derivative instruments | 0 | 222 | |
Long-term derivative instrument assets | 0 | 216 | |
Total assets | 0 | 438 | |
Current liabilities - derivative instruments | (4,297) | (4,476) | |
Long-term liabilities - derivative instruments | (639) | (87) | |
Total liabilities | (4,936) | (4,563) | |
Net assets (liabilities) | (4,936) | (4,125) | |
Commodity Derivatives Netting | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current assets - derivative instruments | [1] | (2,690) | (2,769) |
Long-term derivative instrument assets | [1] | (2,066) | (2,697) |
Total assets | [1] | (4,756) | (5,466) |
Current liabilities - derivative instruments | [1] | 2,690 | 2,769 |
Long-term liabilities - derivative instruments | [1] | 2,066 | 2,697 |
Total liabilities | [1] | 4,756 | 5,466 |
Net assets (liabilities) | [1] | $ 0 | $ 0 |
[1] | Represents counterparty netting under derivative master agreements. The agreements allow for netting of oil and natural gas commodity derivative instruments. These derivative instruments are reflected net on the consolidated balance sheets. |
Financial Instruments and Fai41
Financial Instruments and Fair Value Measurements - Gains and Losses on Derivative Instruments Not Designated As Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) on derivative instruments | $ 37,923 | $ 137,192 | |
Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) on derivative instruments | 35,580 | 135,380 | |
Oil | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) on derivative instruments | [1] | 28,375 | 118,514 |
Natural Gas | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) on derivative instruments | [1] | 9,548 | 18,678 |
Interest Rate Swap | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss (gain) on derivative instruments | [2] | $ (2,343) | $ (1,812) |
[1] | Included in gain on commodity derivative instruments, net on the consolidated statements of operations. | ||
[2] | Included in loss on interest rate swaps on the consolidated statements of operations. |
Financial Instruments and Fai42
Financial Instruments and Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | $ 582,716 | $ 680,365 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 19,290 | 18,691 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 517,076 | 602,609 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 46,350 | 59,065 |
Swap [Member] | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 470,930 | 552,552 |
Swap [Member] | Oil | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Swap [Member] | Oil | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 470,930 | 552,552 |
Swap [Member] | Oil | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Swap [Member] | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 51,082 | 54,182 |
Swap [Member] | Natural Gas | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Swap [Member] | Natural Gas | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 51,082 | 54,182 |
Swap [Member] | Natural Gas | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Swap [Member] | Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (4,936) | (4,125) |
Swap [Member] | Interest Rate Contract [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Swap [Member] | Interest Rate Contract [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | (4,936) | (4,125) |
Swap [Member] | Interest Rate Contract [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Collars [Member] | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 22,205 | 29,737 |
Collars [Member] | Oil | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Collars [Member] | Oil | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Collars [Member] | Oil | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 22,205 | 29,737 |
Collars [Member] | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 583 | 618 |
Collars [Member] | Natural Gas | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Collars [Member] | Natural Gas | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Collars [Member] | Natural Gas | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 583 | 618 |
Put Option [Member] | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 13,127 | 17,584 |
Put Option [Member] | Oil | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Put Option [Member] | Oil | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Put Option [Member] | Oil | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 13,127 | 17,584 |
Put Option [Member] | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 10,435 | 11,126 |
Put Option [Member] | Natural Gas | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Put Option [Member] | Natural Gas | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Put Option [Member] | Natural Gas | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 10,435 | 11,126 |
Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,378 | 2,524 |
Equities | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,378 | 2,524 |
Equities | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Equities | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,073 | 11,190 |
Mutual funds | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,073 | 11,190 |
Mutual funds | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Mutual funds | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Exchange traded funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,839 | 4,977 |
Exchange traded funds | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,839 | 4,977 |
Exchange traded funds | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Exchange traded funds | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 0 |
Financial Instruments and Fai43
Financial Instruments and Fair Value Measurements - Reconciliation of Changes in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Fair Value, Net Derivative Asset (Liability) [Roll Forward] | |||
(Loss) gain | $ 35,580 | $ 135,380 | |
Oil | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Net Derivative Asset (Liability) [Roll Forward] | |||
Beginning balance | [1] | 47,321 | 61,410 |
Derivative instrument settlements | [1],[2] | 13,981 | 10,987 |
(Loss) gain | [1],[2],[3] | (25,970) | (13,296) |
Ending balance | [1] | 35,332 | 59,101 |
Natural Gas | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Net Derivative Asset (Liability) [Roll Forward] | |||
Beginning balance | [1] | 11,744 | 19,892 |
Derivative instrument settlements | [1],[2] | 2,114 | 3,567 |
(Loss) gain | [1],[2],[3] | (2,840) | (3,788) |
Ending balance | [1] | $ 11,018 | $ 19,671 |
[1] | We had no changes in fair value of our derivative instruments classified as Level 3 related to sales, purchases or issuances. | ||
[2] | Included in gain on commodity derivative instruments, net on the consolidated statements of operations. | ||
[3] | Represents loss on mark-to-market of derivative instruments. |
Financial Instruments and Fai44
Financial Instruments and Fair Value Measurements - Significant Unobservable Inputs Used in the Fair Value Measurements (Details) - Option Pricing Model Valuation Technique [Member] - Level 3 [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | $ 46,350 | |
Derivative Financial Instruments, Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | $ 59,065 | |
Fair Value Inputs, Counterparty Credit Risk | 5.00% | 5.00% |
Oil | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | $ 35,332 | |
Oil | Derivative Financial Instruments, Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | $ 47,321 | |
Oil | Derivative Financial Instruments, Assets [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes | $ 45.84 | $ 47.79 |
Fair Value Assumptions, Expected Volatility Rate | 60.07% | 44.95% |
Oil | Derivative Financial Instruments, Assets [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes | $ 38.34 | $ 37.04 |
Fair Value Assumptions, Expected Volatility Rate | 26.58% | 32.24% |
Natural Gas | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | $ 11,018 | |
Natural Gas | Derivative Financial Instruments, Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Assets, Fair Value Disclosure | $ 11,744 | |
Natural Gas | Derivative Financial Instruments, Assets [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes | $ 2.97 | $ 2.99 |
Fair Value Assumptions, Expected Volatility Rate | 47.25% | 73.05% |
Natural Gas | Derivative Financial Instruments, Assets [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Offered Quotes | $ 1.96 | $ 2.34 |
Fair Value Assumptions, Expected Volatility Rate | 26.24% | 23.44% |
Financial Instruments and Fai45
Financial Instruments and Fair Value Measurements - Narrative (Details) - Credit Concentration Risk [Member] | 3 Months Ended |
Mar. 31, 2016 | |
Well Fargo Bank [Member] | |
Derivative [Line Items] | |
Concentration risk | 11.00% |
Credit Suisse [Member] | |
Derivative [Line Items] | |
Concentration risk | 12.00% |
Morgan Stanley Capital Group | |
Derivative [Line Items] | |
Concentration risk | 11.00% |
Barclays Bank PLC [Member] | |
Derivative [Line Items] | |
Concentration risk | 15.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
General and administrative expenses | $ 21,414 | $ 32,262 | |
PCEC [Member] | |||
Related Party Transaction [Line Items] | |||
Monthly Fee for Indirect Costs | 700 | ||
Current receivables | 600 | $ 1,700 | |
Indirect expenses | 2,100 | 2,100 | |
General and administrative expenses | 2,000 | $ 2,800 | |
Other Affiliates [Member] | |||
Related Party Transaction [Line Items] | |||
Current receivables | $ 900 | $ 700 |
Impairments (Details)
Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reserve Quantities [Line Items] | ||
Percentage rate of escalation, impairment of assets | 2.00% | |
Discount rate, future net revenues for estimated proved reserves | 11.00% | |
Impairment of oil and natural gas properties | $ 2,793 | $ 59,113 |
Southeast [Member] | ||
Reserve Quantities [Line Items] | ||
Impairment of oil and natural gas properties | 2,100 | |
Permian Basin [Member] | ||
Reserve Quantities [Line Items] | ||
Impairment of oil and natural gas properties | 500 | 33,100 |
Rockies [Member] | ||
Reserve Quantities [Line Items] | ||
Impairment of oil and natural gas properties | $ 200 | 16,700 |
Mid-Cont [Member] | ||
Reserve Quantities [Line Items] | ||
Impairment of oil and natural gas properties | $ 9,300 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Unamortized debt issuance costs | $ 16,113 | $ 22,142 |
Noncurrent equity securities | 19,290 | 18,691 |
Other assets, miscellaneous | 10,579 | 11,015 |
Other long-term assets | 74,981 | 80,847 |
Current borrowing capacity | 1,800,000 | |
Maximum borrowing capacity | 5,000,000 | |
Deposit for Jay Field net profit interest obligation | ||
Noncurrent deposit assets | 18,263 | 18,263 |
Property reclamation deposit | ||
Noncurrent deposit assets | $ 10,736 | $ 10,736 |
Long-Term Debt Total long term
Long-Term Debt Total long term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Credit facility, current borrowing capacity | $ 1,800,000 | |
Credit facility | 1,197,000 | $ 1,229,000 |
Notes Payable | 2,938 | 2,938 |
Senior notes at fair value | 650,000 | 650,000 |
Capital Lease Obligations | 841 | 210 |
Total debt | 2,955,619 | 2,984,342 |
Long-term Debt, Current Maturities | (172,000) | (154,000) |
Long-term Debt | 2,783,619 | 2,830,342 |
Senior Notes One [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 305,000 | 305,000 |
Net premium on Senior Notes | 2,800 | |
Senior Notes Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 850,000 | 850,000 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized discount/premium and debt issuance expense | $ 50,160 | $ 52,806 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Current borrowing capacity | $ 1,800,000 | |
Commitment from existing lenders, borrowing base | 1,400,000 | $ 1,800,000 |
Write off of Deferred Debt Issuance Cost | 4,600 | |
Credit facility | 1,025,000 | 1,075,000 |
Maximum borrowing capacity | 5,000,000 | |
Credit facility | 1,197,000 | 1,229,000 |
Unamortized debt issuance costs | 16,113 | 22,142 |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 1,200,000 | |
Interest rate, stated percentage | 2.6863% | |
Senior Notes Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Premium | $ 4,300 | |
Debt instrument, face amount | 850,000 | $ 850,000 |
Unamortized debt issuance costs | 11,700 | |
Senior Secured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 19,400 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Senior notes at fair value | $ 650,000,000 | $ 650,000,000 |
Senior notes, net | 1,754,840,000 | 1,752,194,000 |
Unamortized debt issuance costs | 16,113,000 | 22,142,000 |
Senior Secured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes at fair value | 650,000,000 | |
Senior notes, net | 614,100,000 | |
Debt Instrument, Unamortized Discount | 16,500,000 | |
Unamortized debt issuance costs | 19,400,000 | |
Fair value disclosure | 463,200,000 | |
Senior Notes One [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 305,000,000 | 305,000,000 |
Senior notes, net | 298,200,000 | |
Debt Instrument, Unamortized Discount | 2,800,000 | |
Unamortized debt issuance costs | 4,000,000 | |
Fair value disclosure | 31,000,000 | |
Senior Notes Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | 850,000,000 | $ 850,000,000 |
Senior notes, net | 842,600,000 | |
Unamortized premium | 4,300,000 | |
Unamortized debt issuance costs | 11,700,000 | |
Fair value disclosure | $ 82,000,000 |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Amortization of net discount/premium and deferred issuance costs | $ 8,675 | [1] | $ 2,389 |
Capitalized interest | (27) | 0 | |
Interest expense, net of capitalized interest | 55,989 | 39,665 | |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense | 8,999 | 13,965 | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense | 23,311 | 23,311 | |
Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 15,031 | $ 0 | |
[1] | Three Months Ended March 31,Thousands of dollars 2016 2015Credit Facility (including commitment fees) and other long-term debt $8,999 $13,965Senior Secured Notes 15,031 —Senior Unsecured Notes 23,311 23,311Amortization of net discount/premium and debt issuance costs (a) 8,675 2,389Capitalized interest (27) —Total $55,989 $39,665 |
Long-Term Debt Senior Secured N
Long-Term Debt Senior Secured Notes (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 16,113,000 | $ 22,142,000 |
Senior notes at fair value | 650,000,000 | 650,000,000 |
Subordinated Long-term Debt, Noncurrent | 1,754,840,000 | $ 1,752,194,000 |
Senior Secured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 19,400,000 | |
Senior notes at fair value | 650,000,000 | |
Subordinated Long-term Debt, Noncurrent | 614,100,000 | |
Debt Instrument, Unamortized Discount | $ 16,500,000 |
Condensed Consolidating Finan54
Condensed Consolidating Financial Statements Condenced Financial Information (Details) | Mar. 31, 2016subsidiary |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Number of subsidiaries not guaranteeing the Senior Notes | 2 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Carrying amount, beginning of period | $ 254,378 | ||
Liabilities added from acquisitions | 78 | $ 796 | |
Liabilities related to divested properties | (8,380) | (261) | |
Liabilities incurred from drilling | 17 | 2,268 | |
Liabilities settled | (907) | (7,744) | |
Revision of estimates | 118 | 3,954 | |
Accretion expense | 4,331 | 16,954 | |
Carrying amount, end of period | 249,635 | $ 238,411 | |
Less: Current portion of ARO | (1,679) | $ (2,341) | |
Long-term asset retirement obligation | $ 247,956 | $ 252,037 | |
Wells and Related Equipment and Facilities [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Credit adjusted risk free rate | 14.00% | ||
Inflation adjustment rate | 2.00% | ||
Maximum [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Asset retirement obligations, assets, useful lives, minimum | 50 years | ||
Minimum [Member] | |||
Asset Retirement Obligations [Line Items] | |||
Asset retirement obligations, assets, useful lives, minimum | 1 year |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | ||
Surety bonds, current carrying value | $ 31 | $ 27 |
Letters of credit outstanding, amount | $ 32.4 | $ 25.8 |
Partners' Equity (Details)
Partners' Equity (Details) - USD ($) | Apr. 08, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | May. 21, 2014 |
Capital Unit [Line Items] | ||||||
Series A preferred units, 8.0 million units issued and outstanding at each of March 31, 2016 and December 31, 2015 (note 11) | $ 193,215,000 | $ 193,215,000 | ||||
Preferred stock, par value | $ 25 | |||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 337,200,000 | $ 193,200,000 | ||||
Non-cash distributions to Series B preferred unitholders | $ 7,386,000 | $ 0 | ||||
Preferred units, issued | 8,000,000 | |||||
Preferred units, offering costs | $ 6,800,000 | |||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ 0.171875 | |||||
Less: Distributions to Series A preferred unitholders | $ 4,125,000 | 4,125,000 | ||||
Proceeds from issuance of common units, net | $ 0 | $ (63,000) | ||||
Common Units [Member] | ||||||
Capital Unit [Line Items] | ||||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.2499 | |||||
Stock Issued During Period, Shares, Non Cash Stock Dividend | 163,314 | 0 | ||||
Common units issued and outstanding (in units) | 213,700,000 | 213,500,000 | ||||
Common Units issued pursuant to vest grants (in shares) | 100,000 | 100,000 | ||||
Long-term incentive compensation plans, number of shares eligible to be issued (in shares) | 21,000,000 | 3,600,000 | ||||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 52,700,000 | |||||
Equivalent Units [Member] | ||||||
Capital Unit [Line Items] | ||||||
Dividends, Share-based Compensation, Cash | $ 0 | |||||
Restricted Phantom Units (RPUs) [Member] | ||||||
Capital Unit [Line Items] | ||||||
Dividends, Share-based Compensation, Cash | $ 1,400,000 | |||||
Preferred Units B [Member] | ||||||
Capital Unit [Line Items] | ||||||
Series A preferred units, 8.0 million units issued and outstanding at each of March 31, 2016 and December 31, 2015 (note 11) | $ 350,000,000 | |||||
Preferred stock, par value | $ 7.50 | |||||
Distribution Made to Limited Partner, Distributions Paid, Per Unit | $ 0.006666 | |||||
Stock Issued During Period, Shares, Non Cash Stock Dividend | 818,626 |
Partners' Equity - Earnings Per
Partners' Equity - Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income (loss) | $ (103,786) | $ (58,825) |
Net loss attributable to participating units | 0 | (1,432) |
Less: Distributions to Series A preferred unitholders | 4,125 | 4,125 |
Non-cash distributions to Series B preferred unitholders | 7,386 | 0 |
Net loss used to calculate basic and diluted net loss per unit | $ (115,297) | $ (61,518) |
Basic weighted average units outstanding | 213,661 | 210,931 |
Diluted Weighted Average Units Outstanding | 0 | 0 |
Weighted average number of units used to calculate basic and diluted net loss per unit: | ||
Denominator for basic income (loss) per common unit (in shares) | 213,661 | 210,931 |
Basic net loss per common unit | $ (0.54) | $ (0.29) |
Diluted net loss per unit | $ (0.54) | $ (0.29) |
Convertible Phantom Units (CPUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 413 | 706 |
Restricted Phantom Units (RPUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 18,033 |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Accumulated comprehensive loss attributable to the partnership, beginning of period | $ (229) | $ (392) |
Other comprehensive income before reclassification | 882 | 195 |
Amounts reclassified from accumulated other comprehensive loss | (412) | (22) |
Net current period other comprehensive income | 470 | 173 |
Noncontrolling Interest, Accumulated Other Comprehensive Income (loss) Net of Tax | 192 | 70 |
Accumulated comprehensive loss attributable to the partnership, end of period | 49 | (289) |
Available-For-Sale Securities | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Accumulated comprehensive loss attributable to the partnership, beginning of period | (350) | (112) |
Other comprehensive income before reclassification | 882 | 195 |
Amounts reclassified from accumulated other comprehensive loss | (412) | (22) |
Net current period other comprehensive income | 470 | 173 |
Noncontrolling Interest, Accumulated Other Comprehensive Income (loss) Net of Tax | 192 | 70 |
Accumulated comprehensive loss attributable to the partnership, end of period | (72) | (9) |
Post retirement Benefits | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Accumulated comprehensive loss attributable to the partnership, beginning of period | 121 | (280) |
Other comprehensive income before reclassification | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current period other comprehensive income | 0 | 0 |
Noncontrolling Interest, Accumulated Other Comprehensive Income (loss) Net of Tax | 0 | 0 |
Accumulated comprehensive loss attributable to the partnership, end of period | $ 121 | $ (280) |
Unit and Other Valuation-Base60
Unit and Other Valuation-Based Compensation Plans (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 5,311,000 | $ 7,741,000 |
Restructuring costs | $ 2,809,000 | 4,918,000 |
Restricted Phantom Units (RPUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair market value of RPUs granted, average (in dollars per share) | $ 0.68 | |
Payments related to taxes withheld on RPUs vested during the period | $ 0 | 700,000 |
Total unrecognized compensation costs | $ 26,800,000 | |
Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair market value of RPUs granted, average (in dollars per share) | $ 0.68 | |
Total unrecognized compensation costs | $ 5,300,000 | |
Employee [Member] | Restricted Phantom Units (RPUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 7 | |
Employee [Member] | Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 10.4 | |
Director [Member] | Restricted Phantom Units (RPUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 0.6 | |
Director [Member] | Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 0.6 | |
Allocated Share-based Compensation Expense | $ 800,000 | |
Operating Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 900,000 | |
Operating Expense [Member] | Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 600,000 | |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | 3,800,000 | 6,900,000 |
General and Administrative Expense [Member] | Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 200,000 | |
Restructuring Charges [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 638,000 | $ 814,000 |
Minimum [Member] | Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair market value of RPUs granted, average (in dollars per share) | $ 0.50 | |
First Tranche [Member] | Restricted Phantom Units (RPUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 30 months | |
First Tranche [Member] | Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 18 months | |
Second Tranche [Member] | Restricted Phantom Units (RPUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 36 months | |
Second Tranche [Member] | Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 24 months |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)employee | Mar. 31, 2015USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Cost | $ 5,200 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring costs | 2,809 | $ 4,918 |
Compensation expense | $ 5,311 | $ 7,741 |
One-time Termination Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | employee | 57 | 37 |
Restructuring Charges [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Severance Costs | $ 1,943 | $ 3,815 |
Compensation expense | 638 | 814 |
Other restructuring costs | $ 228 | $ 289 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Maximum [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Officers' Compensation | $ 10.7 |