Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 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 | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (shares) | 213,789,296 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash | $ 90,460 | $ 10,464 |
Accounts and other receivables, net (note 4) | 541,709 | 128,589 |
Current derivative instrument assets | 0 | 439,627 |
Related party receivables (note 5) | 1,401 | 2,274 |
Inventory | 1,361 | 926 |
Prepaid expenses | 15,766 | 6,447 |
Total current assets | 650,697 | 588,327 |
Equity investments | 6,791 | 6,567 |
Property, plant and equipment | ||
Oil and natural gas properties (note 3) | 7,876,887 | 7,898,117 |
Other property, plant and equipment (note 3) | 197,125 | 188,795 |
Property, Plant and Equipment, Gross | 8,074,012 | 8,086,912 |
Accumulated depletion, depreciation, and impairment (note 6) | (4,263,548) | (4,154,030) |
Net property, plant and equipment | 3,810,464 | 3,932,882 |
Other long-term assets | ||
Derivative instruments (note 4) | 0 | 226,764 |
Other long-term assets (note 7) | 63,696 | 80,847 |
Total assets | 4,531,648 | 4,835,387 |
Current liabilities | ||
Accounts payable | 44,251 | 50,412 |
Current portion of long-term debt (note 8) | 1,197,329 | 154,000 |
Derivative instruments (note 4) | 0 | 4,462 |
Distributions payable | 0 | 733 |
Current portion of asset retirement obligation | 3,425 | 2,341 |
Revenue and royalties payable | 36,497 | 35,462 |
Wages and salaries payable | 17,512 | 21,654 |
Accrued interest payable | 224 | 19,517 |
Production and property taxes payable | 18,150 | 24,292 |
Other current liabilities | 13,368 | 5,133 |
Total current liabilities | 1,330,756 | 318,006 |
Total liabilities subject to compromise (note 2) | 1,880,793 | 0 |
Credit facility | 0 | 1,075,000 |
Senior notes, net | 0 | 1,752,194 |
Other long-term debt | 3,124 | 3,148 |
Total long-term debt (note 8) | 3,124 | 2,830,342 |
Deferred income taxes | 3,536 | 3,844 |
Asset retirement obligation (note 10) | 251,698 | 252,037 |
Derivative instruments (note 4) | 0 | 255 |
Other long-term liabilities | 22,197 | 25,008 |
Total liabilities | 3,492,104 | 3,429,492 |
Commitments and contingencies (note 11) | ||
Equity | ||
Series A preferred units, 8.0 million units issued and outstanding at each of June 30, 2016 and December 31, 2015 (note 12) | 193,215 | 193,215 |
Series B preferred units, 49.6 million and 48.8 million units issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 359,611 | 353,471 |
Common units, 213.8 million and 213.5 million units issued and outstanding at June 30, 2016 and December 31, 2015, respectively (note 12) | 480,125 | 852,114 |
Accumulated other comprehensive loss (note 13) | (257) | (229) |
Total partners' equity | 1,032,694 | 1,398,571 |
Noncontrolling interest | 6,850 | 7,324 |
Total equity | 1,039,544 | 1,405,895 |
Total liabilities and equity | $ 4,531,648 | $ 4,835,387 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parentheticals) - shares shares in Millions | Jun. 30, 2016 | Apr. 14, 2016 | Dec. 31, 2015 |
Preferred Units [Member] | |||
Common units issued and outstanding (shares) | 8 | 8 | 8 |
Preferred Units B [Member] | |||
Common units issued and outstanding (shares) | 49.6 | 49.6 | 48.8 |
Common Units [Member] | |||
Common units issued and outstanding (shares) | 213.8 | 213.5 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues and other income items | ||||
Oil, natural gas and natural gas liquid sales | $ 127,282 | $ 189,636 | $ 232,732 | $ 352,259 |
(Loss) gain on commodity derivative instruments, net (note 4) | (92,210) | (93,432) | (54,287) | 43,760 |
Other revenue, net | 4,362 | 6,504 | 8,955 | 12,973 |
Total revenues and other income items | 39,434 | 102,708 | 187,400 | 408,992 |
Operating costs and expenses | ||||
Operating costs | 83,795 | 115,837 | 178,769 | 233,815 |
Depletion, depreciation and amortization | 81,960 | 109,447 | 165,683 | 219,271 |
Impairment of oil and natural gas properties (note 6) | 0 | 0 | 2,793 | 59,113 |
Impairment of goodwill | 0 | 95,947 | 0 | 95,947 |
General and administrative expenses | 16,270 | 22,862 | 37,684 | 55,124 |
Restructuring costs (note 15) | 2,439 | 1,773 | 5,248 | 6,691 |
(Gain) loss on sale of assets | (2) | 122 | (12,262) | 137 |
Total operating costs and expenses | 184,462 | 345,988 | 377,915 | 670,098 |
Operating loss | (145,028) | (243,280) | (190,515) | (261,106) |
Interest expense, net of capitalized interest | 49,917 | 61,404 | 105,906 | 101,069 |
(Gain) loss on interest rate swaps (note 4) | (533) | 603 | 1,810 | 2,415 |
Other (income) expense, net | (130) | 35 | 152 | (442) |
Reorganization items, net (note 2) | 66,897 | 0 | 66,897 | 0 |
Loss before taxes | (261,179) | (305,322) | (365,280) | (364,148) |
Income tax expense | 371 | 259 | 276 | 351 |
Net loss | (261,550) | (305,581) | (365,556) | (364,499) |
Less: Net (loss) income attributable to noncontrolling interest | (235) | 126 | (455) | 33 |
Net loss attributable to the partnership | (261,315) | (305,707) | (365,101) | (364,532) |
Less: Distributions to Series A preferred unitholders | 2,017 | 4,125 | 6,142 | 8,250 |
Less: Non-cash distributions to Series B preferred unitholders | 3,737 | 6,408 | 11,123 | 6,408 |
Less: Distributions on participating units in excess of earnings | 0 | 640 | 0 | 1,303 |
Net loss used to calculate basic and diluted net loss per unit | $ (267,069) | $ (316,880) | $ (382,366) | $ (380,493) |
Basic net loss per common unit (usd per share) | $ (1.25) | $ (1.50) | $ (1.79) | $ (1.80) |
Diluted net loss per unit (usd per share) | $ (1.25) | $ (1.50) | $ (1.79) | $ (1.80) |
Basic weighted average units outstanding (shares) | 213,779 | 211,401 | 213,720 | 211,167 |
Diluted weighted average units outstanding (shares) | 213,779 | 211,401 | 213,720 | 211,167 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net loss | $ (261,550) | $ (305,581) | $ (365,556) | $ (364,499) | |
Other comprehensive income (loss), net of tax: | |||||
Change in fair value of available-for-sale securities | [1] | 263 | (74) | 733 | 99 |
Pension and post-retirement benefits actuarial loss | [2] | (781) | 0 | (781) | 0 |
Total other comprehensive (loss) income | (518) | (74) | (48) | 99 | |
Total comprehensive loss | (262,068) | (305,655) | (365,604) | (364,400) | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (447) | 97 | (475) | 74 | |
Comprehensive loss attributable to the partnership | $ (261,621) | $ (305,752) | $ (365,129) | $ (364,474) | |
[1] | Net of income tax expense of $0.1 million and income tax benefit of $0.1 million for the three months ended June 30, 2016 and 2015, respectively. Net of income tax expense of $0.4 million and $0.1 million for the six months ended June 30, 2016 and 2015, respectively. | ||||
[2] | Net of income tax benefit of $0.4 million for each of the three months and six months ended June 30, 2016, respectively. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Loss (Unaudited) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Other comprehensive income (loss), available-for-sale securities, tax | $ 0.1 | $ (0.1) | $ 0.4 | $ 0.1 |
Other comprehensive (Income) loss, pension and other postretirement benefit plans, tax | $ (0.4) | $ (0.4) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net loss | $ (365,556) | $ (364,499) |
Adjustments to reconcile to cash flows from operating activities: | ||
Depletion, depreciation and amortization | 165,683 | 219,271 |
Impairment of oil and natural gas properties | 2,793 | 59,113 |
Impairment of goodwill | 0 | 95,947 |
Unit-based compensation expense | 10,075 | 14,545 |
Loss (gain) on derivative instruments | 56,097 | (41,345) |
Derivative instrument settlement receipts | 172,199 | 224,007 |
Income from equity affiliates, net | (223) | 153 |
Deferred income taxes | (308) | 168 |
(Gain) loss on sale of assets | (12,262) | 137 |
Non-cash reorganization items | 48,829 | 0 |
Other | 26,432 | 12,818 |
Changes in net assets and liabilities | ||
Accounts receivable and other assets | 4,156 | 8,656 |
Inventory | (435) | 2,385 |
Net change in related party receivables and payables | 873 | 2,165 |
Accounts payable and other liabilities | 52,641 | (18,576) |
Net cash provided by operating activities | 160,994 | 214,945 |
Cash flows from investing activities | ||
Property acquisitions | (5,983) | (17,663) |
Capital expenditures | (46,287) | (170,634) |
Proceeds from sale of assets | 11,797 | 0 |
Proceeds from sale of available-for-sale securities | 6,319 | 3,480 |
Purchases of available-for-sale securities | (6,893) | (3,637) |
Other | 0 | (853) |
Net cash used in investing activities | (41,047) | (189,307) |
Cash flows from financing activities | ||
Proceeds from issuance of preferred units, net | 0 | 337,895 |
Proceeds from issuance of common units, net | 0 | 4,925 |
Distributions to preferred unitholders | (5,501) | (8,250) |
Distributions to common unitholders | 0 | (81,183) |
Proceeds from issuance of long-term debt, net | 37,329 | 1,043,400 |
Repayments of long-term debt | (69,000) | (1,296,500) |
Principal payments on capital lease obligations | (39) | 0 |
Change in bank overdraft | (65) | 126 |
Debtor-in-possession financing costs | (2,672) | 0 |
Debt issuance costs | (3) | (29,154) |
Net cash used in financing activities | (39,951) | (28,741) |
Increase (decrease) in cash | 79,996 | (3,103) |
Cash beginning of period | 10,464 | 12,628 |
Cash end of period | $ 90,460 | $ 9,525 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 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 June 30, 2016 , our operating results for the three months and six months ended June 30, 2016 and 2015 and our cash flows for the six months ended June 30, 2016 and 2015 have been included. Operating results for the three months and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending 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. Chapter 11 Cases On May 15, 2016 (the “Chapter 11 Filing Date”), we and certain of our subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. See Note 2 for a discussion of the bankruptcy proceedings. 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 that were segregated from other long-term liabilities and reclassified to other long-term debt. See Note 2 for a discussion of our liquidity and ability to continue as a going concern. 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, were reflected as a reduction to the carrying liability of our senior notes. Debt issuance costs associated with our credit facility remained classified in other long-term assets. 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 During the three months ended June 30, 2016, the unamortized debt issuance costs associated with our outstanding Senior Notes was expensed to reorganization items, net on the consolidated statements of operations (see Note 2 and Note 8). 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 update provides clarifications in the assessment of principal versus agent considerations in the new revenue standard. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow Scope Improvements and Practical Expedients. The update reduces the potential for diversity in practice at initial application of Topic 606 and the cost and complexity of applying Topic 606. In May 2016, the FASB issued ASU 2016-11, Revenue Recognition and Derivatives and Hedging: Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting. This update rescinds certain SEC Staff Observer comments that are codified in Topic 605, Revenue Recognition, and Topic 932, Extractive Activities-Oil and Gas, effective upon adoption of Topic 606. These ASUs 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. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments. The objective of this update is to provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are assessing the impact that ASU 2016-13 will have on our consolidated financial statements. |
Chapter 11 Cases and Liquidity
Chapter 11 Cases and Liquidity | 6 Months Ended |
Jun. 30, 2016 | |
Chapter 11 Cases and Liquidity [Abstract] | |
Chapter 11 Cases and Liquidity | Chapter 11 Cases and Liquidity Chapter 11 Cases On May 15, 2016, we and 21 of our subsidiaries filed voluntary petitions for relief (collectively, the “Chapter 11 Petitions” and, the cases commenced thereby, the “Chapter 11 Cases”) under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Chapter 11 Cases are being jointly administered under the caption In re Breitburn Energy Partners LP, et al, Case No. 16-11390. No trustee has been appointed and we will continue to manage ourselves and our affiliates and operate our businesses as “debtors in possession” subject to the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. To assure ordinary course operations, we received approval from the Bankruptcy Court on a variety of “first day” motions, including motions that authorize us to maintain our existing cash management system, to secure debtor-in-possession financing and other customary relief. In connection with the Chapter 11 Cases, Breitburn Operating LP (“BOLP”) entered into the Debtor-in-Possession Credit Agreement, dated as of May 19, 2016, among itself, as borrower, Breitburn Energy Partners LP, as parent guarantor, the financial institutions from time to time party thereto and Wells Fargo Bank, National Association, as administrative agent, swing line lender and issuing lender (the “DIP Credit Agreement”). See Note 8 for a discussion of the DIP Credit Agreement. ASC 852-10, Reorganizations , applies to entities that have filed a petition for relief under Chapter 11 of the Bankruptcy Code. In accordance with ASC 852-10, transactions and events directly associated with the reorganization are required to be distinguished from the ongoing operations of the business. In addition, the guidance requires changes in the accounting and presentation of liabilities, as well as expenses and income directly associated with the Chapter 11 Cases. The commencement of the Chapter 11 Cases resulted in the acceleration of the Debtors’ obligations under the Third Amended and Restated Credit Agreement, dated as of May 19, 2016, among BOLP, as borrower, Breitburn Energy Partners LP, as parent guarantor, the lenders from time to time party thereto and Wells Fargo Bank, National Association, as administrative agent, swing line lender and issuing lender (as amended, the “Credit Agreement”), and the indentures governing our 9.25% Senior Secured Second Lien Notes due 2020 (“Senior Secured Notes”), our 8.625% Senior Notes due 2020 (“2020 Senior Notes”) and our 7.875% Senior Notes due 2022 (“2022 Senior Notes,” and together with the 2020 Senior Notes, the “Senior Unsecured Notes”). Any efforts to enforce such obligations are automatically stayed as a result of the filing of the Chapter 11 Petitions and the holders’ rights of enforcement in respect of these obligations are subject to the applicable provisions of the Bankruptcy Code. See Note 8 for a discussion of our Credit Agreement (which has been reclassified from long-term debt to current portion of long-term debt on our consolidated balance sheets) and our Senior Secured Notes and Senior Unsecured Notes (which have been reclassified from long-term debt to liabilities subject to compromise on our consolidated balance sheets). We are making adequate protection payments with respect to the Credit Agreement, reflected in interest expense, net of capitalized interest on the consolidated statements of operations, consisting of the payment of interest (at the default rate) and the payment of all reasonable fees and expenses provided for in the Credit Agreement. We are also making adequate protection payments with respect to the Senior Secured Notes in the form of the payment of all reasonable fees and expenses of professionals retained by the holders of the Senior Secured Notes. The commencement of the Chapter 11 Cases also resulted in a termination right by counterparties on our commodity and interest rate derivative instruments. See Note 4 for a discussion of the derivative instruments, which were terminated, and resulted in $458.8 million in estimated hedge settlements receivable and $3.9 million in estimated hedge settlements payable, reflected in accounts and other receivables, net and other current liabilities on the consolidated balance sheets, respectively. Effect of Filing on Creditors and Unitholders On April 14, 2016, we elected to suspend the declaration of any further distributions on our Series A Cumulative Redeemable Perpetual Preferred Units (“Series A Preferred Units”) and 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 2022 Senior Notes and a $13.2 million interest payment due with respect to our 2020 Senior Notes, with each such interest payment due on April 15, 2016 and subject to a 30-day grace period. As a consequence of the commencement of the Chapter 11 Cases, such interest payments have not been made, and are classified as liabilities subject to compromise on the consolidated balance sheet at June 30, 2016. On May 15, 2016, we filed the Chapter 11 Petitions. Under the priority scheme established by the Bankruptcy Code, unless creditors agree otherwise, pre-petition liabilities and post-petition liabilities must be satisfied in full before the holders of our Series A Preferred Units, Series B Preferred Units and common units representing limited partner interests in us (“Common Units”) are entitled to receive any distribution or retain any property under a plan of reorganization. The ultimate recovery to creditors and/or unitholders, if any, will not be determined until confirmation and implementation of a plan of reorganization. No assurance can be given as to what distributions, if any, will be made to each of these constituencies or the nature thereof. As discussed below, if certain requirements of the Bankruptcy Code are met, a plan of reorganization can be confirmed notwithstanding its rejection or deemed rejection by the holders of our Series A Preferred Units, Series B Preferred Units and Common Units and notwithstanding the fact that such holders do not receive or retain any property on account of their equity interests under the plan. Because of such possibilities, the value of our securities, including our Series A Preferred Units, Series B Preferred Units and Common Units, is highly speculative. Accordingly, there can be no assurance that the holders of our Series A Preferred Units, Series B Preferred Units and Common Units will retain any value under a plan of reorganization. Executory Contracts . Subject to certain exceptions, under the Bankruptcy Code, the Debtors may assume, assign, or reject certain executory contracts and unexpired leases, subject to the approval of the Bankruptcy Court. The rejection of an executory contract or unexpired lease is generally treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Debtors of performing their future obligations under such executory contract or unexpired lease but may give rise to a pre-petition general unsecured claim for damages caused by such deemed breach. The assumption of an executory contract or unexpired lease generally requires the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Process for Plan of Reorganization . In order to successfully emerge from Chapter 11, the Debtors will need to obtain confirmation by the Bankruptcy Court of a plan of reorganization that satisfies the requirements of the Bankruptcy Code. A plan of reorganization generally provides for the treatment and satisfaction of pre-petition obligations and equity interests and provides for the means by which the plan of reorganization will be implemented. Debtors Condensed Combined Financial Statements. Two of our subsidiaries, ETSWDC and Breitburn Collingwood Utica LLC, are non-debtors (“Non-Debtors”). Accordingly, these entities will be accounted for under GAAP for entities not in bankruptcy and outside the scope of ASC 852. The Non-Debtors are minor subsidiaries, and, as such, we have not presented Debtors Condensed Combined Financial Statements. Costs of Reorganization The Debtors have incurred and will continue to incur significant costs associated with the Chapter 11 Cases. The amount of these costs, which are being expensed as incurred, are expected to significantly affect our results. The following table summarizes the components included in reorganization items, net on our consolidated statements of operations for the three and six months ended June 30, 2016: Three Months Ended Six Months Ended Thousands of dollars June 30, 2016 June 30, 2016 Debt discounts/premiums and issuance costs $ 48,829 $ 48,829 Advisory and professional fees 13,963 13,963 DIP Credit Agreement debt issuance costs 4,172 4,172 Other (67 ) (67 ) Reorganization items, net $ 66,897 $ 66,897 We use this category to reflect the net expenses and gains and losses that are the result of the reorganization and restructuring of the business. Professional fees included in reorganization items, net represent professional fees for post-petition expenses. Deferred financing costs and unamortized discounts are related to the Senior Secured Notes and Senior Unsecured Notes (together, the “Senior Notes”), and are included in reorganization items, net as we believe these debt instruments will be impacted by the Chapter 11 Cases. As of June 30, 2016, we had $5.8 million of accrued reorganization costs included in accounts payable on the consolidated balance sheet. Liabilities Subject to Compromise Our consolidated financial statements include in liabilities subject to compromise pre-petition liabilities that may be affected by the plan of reorganization at the amounts expected to be allowed, even if they may be settled for lesser amounts. If there is uncertainty about whether a secured claim is under-secured, or will be impaired under the plan of reorganization, the entire amount of the claim is included in liabilities subject to compromise. Differences between liabilities we have estimated and the claims to be filed will be investigated and resolved in connection with the claims resolution process. We will continue to evaluate these liabilities throughout the Chapter 11 Cases and adjust amounts as necessary. Such adjustments may be material. Our consolidated financial statements include amounts classified as liabilities subject to compromise that we believe the Bankruptcy Court will allow as claim amounts resulting from the Debtors’ rejection of various executory contracts and unexpired leases and defaults under the debt agreements. Additional amounts may be included in liabilities subject to compromise in future periods if other executory contracts and unexpired leases are rejected. Conversely, the Debtors expect that the assumption of certain executory contracts and unexpired leases may convert certain liabilities shown in future financial statements as subject to compromise to post-petition liabilities. Due to the uncertain nature of many of the potential claims, the magnitude of such claims is not reasonably estimable at this time. Such claims may be material. The following table summarizes the components of liabilities subject to compromise included in our consolidated balance sheets as of June 30, 2016: As of Thousands of dollars June 30, 2016 Senior Unsecured Notes $ 1,155,000 Senior Secured Notes 650,000 Accrued interest payable 61,908 Accounts payable 7,531 Distributions payable 6,354 Total liabilities subject to compromise $ 1,880,793 Liquidity and Ability to Continue as a Going Concern As a result of sustained losses and the Chapter 11 Cases, the realization of assets and satisfaction of liabilities, without substantial adjustments and/or changes in ownership, are subject to uncertainty. Given uncertainty surrounding the Chapter 11 Cases, there is substantial doubt about our ability to continue as a going concern. The accompanying consolidated interim financial statements do not purport to reflect or provide for the consequences of the Chapter 11 Cases. In particular, the consolidated financial statements do not purport to show (i) as to assets, their realizable value on a liquidation basis or their availability to satisfy liabilities; (ii) as to pre-petition liabilities, the amounts that may be allowed for claims or contingencies, or the status and priority thereof; (iii) as to unitholders’ equity accounts, the effect of any changes that may be made in our capitalization; or (iv) as to operations, the effect of any changes that may be made to our business. While operating as debtors in possession under Chapter 11 of the Bankruptcy Code, the Debtors may sell or otherwise dispose of or liquidate assets or settle liabilities in amounts other than those reflected in our consolidated interim financial statements, subject to the approval of the Bankruptcy Court or otherwise as permitted in the ordinary course of business. Further, a plan of reorganization could materially change the amounts and classifications in our historical consolidated interim financial statements. Pursuant to an order of the Bankruptcy Court, we are making adequate protection payments with respect to the Credit Agreement consisting of the payment of interest (at the default rate), included in interest expense, net of capitalized interest on the consolidated statements of operations, and the payment of all reasonable fees and expenses provided for in the Credit Agreement. Pursuant to such order, we are also making adequate protection payments with respect to the Senior Secured Notes in the form of the payment of all reasonable fees and expenses of professionals retained by the holders of the Senior Secured Notes. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions 2016 Acquisitions and Dispositions 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 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 In May 2015, we completed the acquisition of additional interests in our existing fields located in Ark-La-Tex for a total purchase price of $3.4 million , which is primarily reflected in oil and natural gas properties on the consolidated balance sheet. In March 2015, we completed the acquisition of certain CO 2 producing properties located in Harding County, New Mexico, primarily reflected in property, plant and equipment on the consolidated balance sheets, for a total purchase price of $70.5 million , 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 | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurements Our risk management programs were intended to reduce our exposure to commodity price volatilities and to assist with stabilizing cash flows and distributions. Routinely in the past, we utilized derivative financial instruments to reduce this volatility. To the extent we entered into economic hedges for a significant portion of our expected production through commodity derivative instruments and the cost for goods and services increased, our margins would have been adversely affected. As discussed below, our commodity derivative transactions were terminated in the second quarter of 2016. Chapter 11 Cases The filing of the Chapter 11 Petitions triggered an event of default under each of the agreements governing our derivative transactions (“ISDA Agreements”). As a result, our counterparties were permitted to terminate, and did terminate, all outstanding transactions governed by the ISDA Agreements. The termination date for each outstanding transaction is the termination date specified to us by our counterparties. The derivative transactions are no longer accounted for at fair value under ASC 815, because they were terminated in connection with our filing of the Chapter 11 Petitions and have been evaluated as receivables or payables at termination value. At the termination dates, expected settlement receipts on terminated contracts were reclassified from current and long-term derivative instrument assets to accounts and other receivables, net on the consolidated balance sheets and expected settlement payments on terminated contracts were reclassified from current and long-term derivative instrument liabilities to other current liabilities on the consolidated balance sheets. As of June 30, 2016, we had $458.8 million of estimated hedge settlements receivable and $3.9 million in estimated hedge settlements payable, reflected in accounts and other receivables, net and other current liabilities on the consolidated balance sheets, respectively. All of our derivative counterparties are also lenders, or affiliates of lenders, under our Credit Agreement (see Note 8). In accordance with the interim order approving the DIP Credit Agreement (the “Interim Order”), our counterparties were permitted to terminate any outstanding derivative transactions and to calculate the amounts due to or from the Debtors as a result of such terminations, in accordance with the terms of the governing agreements. However, each such counterparty is required to hold any proceeds due to the Debtors in a book entry account maintained by the counterparty until the date that is the earlier of (the “Standstill Termination Date”) (i) the date the Bankruptcy Court approves in a final order a mutually acceptable resolution among the parties involved with regard to the disposition of the proceeds, (ii) three business days after the date counsel to the administrative agent under the Credit Agreement notifies in writing counsel to the Debtors that the administrative agent intends to provide consent to the counterparties to set off any obligations under the Credit Agreement and (c) the date that is 60 days from the date of entry of the Interim Order. On July 19, 2016, the Bankruptcy Court entered an Amended Interim Order (“DIP Amended Interim Order”) extending the Standstill Termination Date (see Note 16). Pursuant to the Interim Order, the rights of all of the parties are reserved as to the ultimate disposition of the proceeds. The Credit Agreement is fully collateralized, and excluded from liabilities subject to compromise. Therefore, settlement payables due to our counterparties are reflected in accounts payable on the consolidated balance sheets rather than in liabilities subject to compromise. As discussed above, our derivative instruments are no longer presented at fair value. The following table presents the fair value of our derivative instruments not designated as hedging instruments at December 31, 2015: 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 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 our ISDA Agreements, which 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 June 30, 2016 Net (loss) gain $ (71,720 ) $ (20,490 ) $ 533 $ (91,677 ) Three Months Ended June 30, 2015 Net loss $ (91,312 ) $ (2,120 ) $ (603 ) $ (94,035 ) Six Months Ended June 30, 2016 Net loss $ (43,345 ) $ (10,942 ) $ (1,810 ) $ (56,097 ) Six Months Ended June 30, 2015 Net gain (loss) $ 27,202 $ 16,558 $ (2,415 ) $ 41,345 (a) Included in (loss) gain on commodity derivative instruments, net on the consolidated statements of operations. (b) Included in (gain) 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 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 and six months ended June 30, 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 our merger with QRE 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 June 30, 2016 Assets (liabilities) Available-for-sale securities Equities $ 1,427 $ — $ — $ 1,427 Mutual funds 11,305 — — 11,305 Exchange traded funds 7,168 — — 7,168 Net assets $ 19,900 $ — $ — $ 19,900 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 June 30, 2016 2015 Thousands of dollars Oil Natural Gas Oil Natural Gas Assets (a): Beginning balance $ 35,332 $ 11,018 $ 59,101 $ 19,671 Derivative instrument settlements (b) 12,853 466 8,564 4,237 Loss (b)(c) (48,185 ) (11,484 ) (26,664 ) (8,898 ) Ending balance $ — $ — $ 41,001 $ 15,010 Six Months ended June 30, 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) 26,834 2,580 19,551 7,804 Loss (b)(c) (74,155 ) (14,324 ) (39,960 ) (12,686 ) Ending balance $ — $ — $ 41,001 $ 15,010 (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. Includes gains and losses resulting from the difference between the mark-to-market value of our level 3 derivative instruments at their termination dates and the expected settlement amounts. (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 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 accounts receivable, including hedge settlements receivable. Our hedge settlements receivable expose us to credit risk from counterparties. As of June 30, 2016, our hedge settlements receivable were due from Bank of Montreal, Barclays Bank PLC, BNP Paribas, Canadian Imperial Bank of Commerce, Citibank, N.A, Comerica Bank, Credit Suisse Energy LLC, Credit Suisse International, ING Capital Markets LLC, Fifth Third Bank, JP Morgan Chase Bank N.A., Merrill Lynch Commodities, Inc., Morgan Stanley Capital Group Inc., PBN Bank, N.A, 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 Agreement. Our Credit Agreement 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 and obtain credit default swap information on our counterparties. This risk was managed by diversifying our derivatives portfolio. As of June 30, 2016 , each of these financial institutions had an investment grade credit rating. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 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 provided administrative services to Pacific Coast Energy Company LP, formerly named BreitBurn Energy Company L.P. (“PCEC”), our predecessor, under an administrative services agreement (“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 and six months ended June 30, 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, which became effective on June 30, 2016. At June 30, 2016 and December 31, 2015 , we had a current receivable of $0.4 million and $1.7 million , respectively, due from PCEC related to the administrative services agreement and employee-related costs. For the three months ended June 30, 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 $2.4 million and $2.2 million , respectively. For the six months ended June 30, 2016 and 2015 , the monthly charges to PCEC for indirect expenses totaled $4.2 million in each period, and charges for direct expenses including payroll and administrative costs totaled $4.4 million and $5.0 million , respectively. At June 30, 2016 and December 31, 2015 , we had receivables of $1.0 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 | 6 Months Ended |
Jun. 30, 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 amounts may exceed their fair values and may not be recoverable. Under the successful efforts method of accounting, the carrying amount of an oil and gas property to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the property. 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 and expected reserve lives, the outlook for market supply and demand conditions for oil and natural gas, management’s intent to hold and use the properties 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, in certain instances, risk-adjusted probable and possible reserves on a held and used basis based in large part on future capital and operating plans. 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. Beginning 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 approximated 11% at March 31, 2016. There were no impairments during the three months ended June 30, 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. There were no impairments during the three months ended June 30, 2016 . Non-cash impairment charges totaled $2.8 million for the six months ended June 30, 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 that the drop in commodity strip prices in the out years had on projected future revenues for certain of our lower margin properties. There were no impairments during the three months ended June 30, 2015 . Impairments totaled $59.1 million for the six months ended June 30, 2015, including $33.1 million in the Permian Basin, $16.7 million in the Rockies and $9.3 million in Mid-Continent. Management prepared its undiscounted cash flow estimates on a held and used basis which assumes oil and gas properties will be held and used for their economic lives. If a decision is reached to sell a particular asset, that asset would be classified as held for sale and could potentially be impaired if the estimated sales value less the costs of disposal exceeded its carrying value. It is also possible that further periods of prolonged lower commodity prices, future declines in commodity prices, changes to our future plans in response to a final plan of reorganization, or increases in operating costs could result in future impairments. 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 could have increased the undiscounted cash flows thus further avoiding the need to impair any assets in this period, whereas unfavorable changes could have caused an unknown number of assets to become impaired. |
Other Long-Term Assets
Other Long-Term Assets | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Other Long-Term Assets | Other Long-Term Assets As of June 30, 2016 , and December 31, 2015 , our other long-term assets were as follows: As of Thousands of dollars June 30, 2016 December 31, 2015 Debt issuance costs $ — $ 22,142 Available-for-sale securities 19,900 18,691 Deposit for Jay Field net profit interest obligation 18,263 18,263 Property reclamation deposit 10,737 10,736 Other 14,796 11,015 Total $ 63,696 $ 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, were reflected as a reduction to the carrying liability of the 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. During the three months and six months ended June 30, 2016, we wrote off $15.7 million and $20.4 million , respectively, of unamortized debt issuance costs associated with our Credit Agreement in connection with the commencement of the Chapter 11 Cases and reduction of the elected commitment amount under our Credit Agreement. These write-offs were recognized in interest expense, net of capitalized interest on the consolidated statements of operations. See Note 8 for a discussion of the Credit Agreement. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Debt Our debt is detailed in the following table: As of Thousands of dollars June 30, 2016 December 31, 2015 Credit Agreement $ 1,197,329 $ 1,229,000 Promissory note 2,938 2,938 Senior Secured Notes 650,000 650,000 2020 Senior Notes 305,000 305,000 2022 Senior Notes 850,000 850,000 Unamortized debt issuance costs and net (discount) premium on Senior Notes (a) — (52,806 ) Capital lease obligations 186 210 Total debt 3,005,453 2,984,342 Less: Current portion of long-term debt (1,197,329 ) (154,000 ) Less: Amounts reclassified to liabilities subject to compromise (1,805,000 ) — Total long-term debt $ 3,124 $ 2,830,342 (a) In connection with the adoption of ASU 2015-03, unamortized debt issuance costs associated with the Senior Notes at December 31, 2015 of $37.0 million were reclassified from other long-term assets to debt. See Note 1 for a detailed discussion of the adoption of the change in accounting principle. DIP Credit Agreement In connection with the Chapter 11 Cases, BOLP entered into the DIP Credit Agreement as borrower with the lenders party thereto (the “DIP Lenders”) and Wells Fargo, National Association, as administrative agent. The Debtors have guaranteed all obligations under the DIP Credit Agreement. Pursuant to the terms of the DIP Credit Agreement, the DIP Lenders have made available a revolving credit facility in an aggregate principal amount of $75 million (and the DIP Lenders have offered to arrange an additional $75 million of financing under the DIP Credit Agreement at the borrower’s request), which includes a letter of credit facility available for the issuance of letters of credit in an aggregate principal amount not to exceed a sub-limit of $50 million , and a swingline facility in an aggregate principal amount not to exceed a sub-limit of $5 million , in each case, to mature on the earlier to occur of (A) the effective date of a plan of reorganization in the Chapter 11 Cases or (B) the stated maturity of the DIP Credit Agreement of January 15, 2017. In addition, the maturity date may be accelerated upon the occurrence of certain events as set forth in the DIP Credit Agreement. At June 30, 2016, we had no borrowings outstanding under the DIP Credit Agreement. The proceeds of the DIP Credit Agreement may be used: (i) to pay the costs and expenses of administering the Chapter 11 Cases, (ii) to fund our working capital needs, capital improvements, and other general corporate purposes, in each case, in accordance with an agreed budget and (iii) to provide adequate protection to existing secured creditors. Acceleration of Debt Obligations The commencement of the Chapter 11 Cases resulted in the acceleration of the Debtors’ obligations under the Credit Agreement and the acceleration of all obligations with respect to the Senior Secured Notes and the Senior Notes. Any efforts to enforce such obligations are automatically stayed as a result of the filing of the Chapter 11 Petitions and the holders’ rights of enforcement in respect of these obligations are subject to the applicable provisions of the Bankruptcy Code. Credit Agreement At each of June 30, 2016 and December 31, 2015 , we had $1.2 billion in indebtedness outstanding under the Credit Agreement. As of June 30, 2016 and December 31, 2015 , 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 June 30, 2016 , we recognized $15.7 million for the write-off of debt issuance costs related to the reduction of the elected commitment amount under our Credit Agreement. During the six months ended June 30, 2016 , we recognized $20.4 million or the write-off of debt issuance costs related to the Chapter 11 Cases. These write-offs are reflected in our interest expense totals. As of the Chapter 11 Filing Date, we had $1.197 billion in unpaid principal outstanding under the Credit Agreement. The Credit Agreement is secured by a first priority security interest in and lien on substantially all of the Debtors’ assets, including the proceeds thereof and after-acquired property. Therefore, upon the acceleration as a consequence of the commencement of the Chapter 11 Cases, we reclassified the Credit Agreement balance to current portion of long-term debt, as the principal became immediately due and payable. However, any efforts to enforce such payment obligations are automatically stayed as a result of the filing of the Chapter 11 Petitions. As of the Chapter 11 Filing Date, we recognized $15.7 million for the full write-off of unamortized debt issuance costs related to the Credit Agreement. We are required to make adequate protection payments to the lenders under the Credit Agreement, which includes interest at the default rate as provided in the Credit Agreement. We are recognizing the default interest accrued on the Credit Agreement as interest expense, net of capitalized interest on the consolidated statements of operations, and we are recognizing the adequate protection payments as accrued interest payable on the consolidated balance sheets, rather than in liabilities subject to compromise. At June 30, 2016 , the default interest rate on the Credit Agreement was 6.75% . Senior Secured Notes As of March 31, 2016, we had $650 million of Senior Secured Notes, issued on April 5, 2015, 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. Since the commencement of the Chapter 11 Cases on May 15, 2016, no interest has been paid to the holders of the Senior Secured Notes. As of June 30, 2016, the Senior Secured Notes were reflected as liabilities subject to compromise on the consolidated balance sheet, with the carrying value equal to the face value of the notes. The unamortized discount of $16.1 million and the unamortized debt issuance costs of $18.9 million as of the Chapter 11 Filing Date were expensed and recognized in reorganization items, net on the consolidated statements of operations. In addition, as of the Chapter 11 Filing Date, the accrued but unpaid interest expense on the Senior Secured Notes of $7.5 million was reflected as liabilities subject to compromise. No interest expense was recognized on the Senior Secured Notes after the commencement of the Chapter 11 Cases. Unrecognized, contractual interest expense on the Senior Secured Notes for each of the three months and six months ended June 30, 2016 was $7.5 million . 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. On April 14, 2016, we elected to defer a $33.5 million interest payment due with respect to our 2022 Senior Notes and a $13.2 million interest payment due with respect to our 2020 Senior Notes, with each such interest payment due on April 15, 2016 and subject to a 30-day grace period. As a consequence of the commencement of the Chapter 11 Cases, such interest payments have not been made, and are classified as liabilities subject to compromise on the consolidated balance sheet at June 30, 2016. Since the commencement of the Chapter 11 Cases on May 15, 2016, no interest has been paid to the holders of the Senior Unsecured Notes. As of June 30, 2016, the Senior Unsecured Notes were reflected as liabilities subject to compromise on the consolidated balance sheet, with the carrying values equal to the face values of the notes. The unamortized premium of $1.5 million and the unamortized debt issuance costs of $15.4 million as of the Chapter 11 Filing Date were recognized in reorganization items, net on the consolidated statements of operations. In addition, as of the Chapter 11 Filing Date, the accrued but unpaid interest expense on the Senior Unsecured Notes of $54.4 million was reflected as liabilities subject to compromise. No interest expense was recognized on the Senior Unsecured Notes after the filing of the Chapter 11 Petitions. Unrecognized contractual interest expense on the Senior Unsecured Notes for each of the three months and six months ended June 30, 2016 was $11.7 million . Interest Expense Our interest expense is detailed as follows: Three Months Ended Six Months Ended June 30, June 30, Thousands of dollars 2016 2015 2016 2015 Credit Agreement (including commitment fees) and other long-term debt $ 13,335 $ 9,629 $ 22,334 $ 23,594 Senior Secured Notes (a) 7,517 13,862 22,548 13,862 Senior Unsecured Notes 11,655 23,311 34,966 46,622 Amortization of net discount/premium and debt issuance costs (b) 17,463 14,680 26,138 17,069 Capitalized interest (53 ) (78 ) (80 ) (78 ) Total $ 49,917 $ 61,404 $ 105,906 $ 101,069 (a) Reflects interest through the Chapter 11 Filing Date. (b) The three months and six months ended June 30, 2016 included the write-off of $15.7 million and $20.4 million of debt issuance costs. Each of the three months and six months ended June 30, 2015 included the write-off of $10.6 million of debt issuance costs. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 6 Months Ended |
Jun. 30, 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 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 | 6 Months Ended |
Jun. 30, 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 for any new additions or revisions have been discounted at a credit-adjusted risk-free rate of approximately 14% for the six months ended June 30, 2016 . Our credit-adjusted risk-free rate at December 31, 2015 was 14% , 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 June 30, 2016 , and the year ended December 31, 2015 are presented in the following table: Six Months Ended Year Ended Thousands of dollars June 30, 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 91 2,268 Liabilities settled (1,331 ) (7,744 ) Revision of estimates 1,607 3,954 Accretion expense 8,680 16,954 Carrying amount, end of period 255,123 254,378 Less: Current portion of ARO (3,425 ) (2,341 ) Non-current portion of ARO $ 251,698 $ 252,037 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary 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 June 30, 2016 and December 31, 2015 , we had approximately $29 million and $27 million , respectively, of surety bonds outstanding. At June 30, 2016 and December 31, 2015 , we had approximately $45.0 million and $25.8 million , respectively, in letters of credit outstanding under our Credit Agreement. The increase in letters of credit during the three months ended June 30, 2016 was primarily due to the Chapter 11 filing. At June 30, 2016 and December 31, 2015, we had approximately and $1.8 million and zero , respectively, in letters of credit outstanding under our DIP Credit Agreement. 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 | 6 Months Ended |
Jun. 30, 2016 | |
Partners' Capital [Abstract] | |
Partners' Equity | Partners’ Equity Effect of Filing on Unitholders Under the priority scheme established by the Bankruptcy Code, unless creditors agree otherwise, pre-petition liabilities and post-petition liabilities must be satisfied in full before the holders of our Series A Preferred Units, Series B Preferred Units and Common Units are entitled to receive any distribution or retain any property under a plan of reorganization. The ultimate recovery to creditors and/or unitholders, if any, will not be determined until confirmation and implementation of a plan or plans of reorganization. No assurance can be given as to what distributions, if any, will be made to each of these constituencies or the nature thereof. If certain requirements of the Bankruptcy Code are met, a plan of reorganization can be confirmed notwithstanding its rejection or deemed rejection by the holders of our Series A Preferred Units, Series B Preferred Units and Common Units and notwithstanding the fact that such holders do not receive or retain any property on account of their equity interests under the plan. Because of such possibilities, the value of our securities, including our Series A Preferred Units, Series B Preferred Units and Common Units, is highly speculative. Accordingly, there can be no assurance that the holders of our Series A Preferred Units, Series B Preferred Units and Common Units will retain any value under a plan of reorganization. Preferred Units 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 our Common Units and on parity with the Series B Preferred Units with respect to the payment of distributions. Through March 31, 2016, we paid 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, totaling $4.1 million for the three months ended March 31, 2016. On April 8, 2015, we issued in a private offering $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 our Common Units and on parity with the Series A Preferred Units with respect to the payment of distributions. On April 14, 2016, we elected to suspend the declaration of any further distributions on our Series A Preferred Units and Series B Preferred Units. As of Chapter 11 Filing Date, we had 8 million Series A Preferred Units issued and outstanding and 49.6 million Series B Preferred Units issued and outstanding. We will continue to account for our Series A Preferred Units and Series B Preferred Units at their carrying value until a plan of reorganization is confirmed by the Bankruptcy Court and becomes effective. We accrued for earned but undeclared distributions on each series of Preferred Units for the period from April 1, 2016 to the Chapter 11 Filing Date. As of the Chapter 11 Filing Date, total accrued but unpaid distributions on our Series A Preferred Units and Series B Preferred Units of $6.4 million were reflected as liabilities subject to compromise. Through 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, when elected by the unitholder, by issuing Common Units in lieu of such Series B Preferred Units) instead 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 each of the three months and six months ended June 30, 2015 , 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 575,291 Series B Preferred Units and 121,584 Common Units. During the three months and six months ended June 30, 2016 and June 30, 2015 , we recognized $3.7 million and $11.1 million , $6.4 million and $6.4 million , respectively, 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. During the three months and six months ended June 30, 2016 and June 30, 2015 , we recognized $2.0 million , $6.1 million , $4.1 million and $8.3 million , respectively, 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 As of the Chapter 11 Filing Date, we had 213.8 million Common Units outstanding. We will continue to account for our Common Units at their carrying value until a plan of reorganization is confirmed by the Bankruptcy Court and becomes effective. At each of June 30, 2016 and December 31, 2015 , we had approximately 213.8 million and 213.5 million , respectively, of Common Units outstanding. In 2016, we declared no cash distributions to holders of our Common Units and our restricted phantom units (“RPUs”). In response to current commodity and financial market conditions, the Board of Directors of our general partner (the “Board”) suspended distributions on Common Units effective with the third monthly payment attributable to the third quarter of 2015. During the three months and six months ended June 30, 2015 , we paid cash distributions of approximately $26.4 million , or $0.1250 per Common Unit, and $79.1 million , or $0.3749 per Common Unit, respectively. During the three months and six months ended June 30, 2016 , we issued zero and 163,314 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 and six months ended June 30, 2015 , we issued 121,584 Common Units to a Series B Preferred unitholder that elected to receive its paid in kind distributions in Common Units. During each of the three months June 30, 2016 and 2015 , we issued zero Common Units to non-employee directors for RPUs. During each of the six months ended June 30, 2016 and 2015 , we issued less than 0.1 million Common Units to non-employee directors for RPUs that vested in January 2016 and January 2015. At June 30, 2016 and December 31, 2015 , there were approximately 20.7 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. During the three months and six months ended June 30, 2016 , we paid zero 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. During the three months and six months ended June 30, 2015 , we paid $0.7 million and $2.1 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 Six Months Ended June 30, June 30, Thousands, except per unit amounts 2016 2015 2016 2015 Net loss attributable to the partnership $ (261,315 ) $ (305,707 ) $ (365,101 ) $ (364,532 ) Less: Net loss attributable to participating units (a) — — — — Distributions on participating units in excess of earnings — 640 — 1,303 Distributions to Series A preferred unitholders 2,017 4,125 6,142 8,250 Non-cash distributions to Series B preferred unitholders 3,737 6,408 11,123 6,408 Net loss used to calculate basic and diluted net loss per unit $ (267,069 ) $ (316,880 ) $ (382,366 ) $ (380,493 ) Weighted average number of units used to calculate basic and diluted net loss per unit (in thousands): Common Units (b) 213,779 211,401 213,720 211,167 Dilutive units (c) — — — — Denominator for diluted net loss per unit 213,779 211,401 213,720 211,167 Net loss per common unit Basic $ (1.25 ) $ (1.50 ) $ (1.79 ) $ (1.80 ) Diluted $ (1.25 ) $ (1.50 ) $ (1.79 ) $ (1.80 ) (a) The previously reported 2015 net loss allocated to participating units was adjusted to correct an error in the allocation to participating units ; the correction to the 2015 EPU calculation was determined to be not material. (b) The three months and six months ended June 30, 2016 exclude 20,429 and 19,222 , respectively, 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. (c) The three months and six months ended June 30, 2016 and 2015 exclude 413 , 413 , 724 , and 715 , 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ (72 ) $ 121 $ 49 $ (9 ) $ (280 ) $ (289 ) Other comprehensive income (loss) before reclassification 327 (781 ) (454 ) 52 — 52 Amounts reclassified from accumulated other comprehensive loss (a) (64 ) — (64 ) (125 ) — (125 ) Net current period other comprehensive income (loss) 263 (781 ) (518 ) (73 ) — (73 ) Less: Noncontrolling interest 107 (319 ) (212 ) (29 ) — (29 ) Carrying amount, end of period $ 84 $ (341 ) $ (257 ) $ (53 ) $ (280 ) $ (333 ) Six Months Ended June 30, 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 (loss) before reclassification 1,209 (781 ) 428 247 — 247 Amounts reclassified from accumulated other comprehensive loss (a) (476 ) — (476 ) (147 ) — (147 ) Net current period other comprehensive income (loss) 733 (781 ) (48 ) 100 — 100 Less: noncontrolling interest 299 (319 ) (20 ) 41 — 41 Carrying amount, end of period $ 84 $ (341 ) $ (257 ) $ (53 ) $ (280 ) $ (333 ) (a) Amounts were reclassified from accumulated other comprehensive loss to other (income) expense, net on the consolidated statements of operations. |
Unit and Other Valuation-Based
Unit and Other Valuation-Based Compensation Plans | 6 Months Ended |
Jun. 30, 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. Restricted Phantom Units and Convertible Phantom Units During the three months and six months ended June 30, 2016 , the Board approved the grant of zero and 4.4 million , respectively, RPUs to the executives and certain key employees of Breitburn Management and zero and 0.5 million , respectively, to outside directors, which vest one-half after 30 months and the other one-half after 36 months . The grant date fair value of the RPUs granted was $0.68 per unit. During the three months and six months ended June 30, 2016 , we recorded unit-based compensation expense for the outstanding RPUs and CPUs of $4.8 million and $10.1 million , respectively, of which $0.6 million and $1.5 million , respectively, was included in operating costs, $3.3 million and $7.1 million , respectively, was included in general and administrative expenses, and $0.8 million and $1.4 million , respectively, was included in restructuring costs on the consolidated statements of operations. During the three months and six months ended June 30, 2015 , we recorded unit-based compensation expense of $6.8 million and $14.5 million , respectively, of which $6.1 million and $13.0 million , respectively, was included in general and administrative expenses and $0.7 million and $1.5 million , respectively, was included in restructuring costs on the consolidated statement of operations. See Note 15 for a discussion of restructuring costs. As of June 30, 2016 , there was $16.8 million of unrecognized compensation cost related to our unit based compensation plans, which is expected to be recognized over the period from July 1, 2016 to December 31, 2018. Phantom Units During the three months and six months ended June 30, 2016 , the Board approved the grant of zero and 10.4 million phantom units (“Phantom Units”), respectively, at $0.68 per unit, to the executives and certain key employees of Breitburn Management and zero and 0.5 million Phantom Units, respectively, to outside directors. 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). Upon vesting, each outstanding and vested unit equal shall receive the fair market value of one Common Unit, with a minimum cash value of $0.50 per Phantom Unit with respect to certain employees. The minimum cash value requirement was canceled in April 2016 in regards to certain 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 fair market value of the Phantom Units was $0.08 per unit at June 30, 2016. During the three months and six months ended June 30, 2016 , we recorded a credit of $0.5 million and a charge of $0.2 million to compensation expense for the Phantom Units, respectively, of which a credit of $0.4 million and a charge of $0.2 million , respectively were included in operating costs, and credits of $0.1 million and zero , respectively, were included in general and administrative expenses on the consolidated statement of operations. As of June 30, 2016 , there was $0.6 million of unrecognized compensation cost related to unvested Phantom Units, which is expected to be recognized over the period from July 1, 2016 to January 1, 2018. Key Employee Plan In April, 2016, the Partnership adopted the Key Employee Program (“KEP”). Participants must be employed on the scheduled payment dates in order to receive a payment under the KEP. Participants in the KEP are eligible to receive quarterly cash payments, which are contingent on meeting performance thresholds tied to production and lease operating expense and satisfactory individual performance. During the six months ended June 30, 2016, we recognized $2.5 million in general and administrative expenses and $1.5 million in operating costs, related to the 2016 KEP. |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring Costs [Abstract] | |
Restructuring Costs | Restructuring Costs During the first half of 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 addition, we executed workforce reductions in the first half of 2016 in connection with the notice received from PCEC on February 5, 2016 of its intention to terminate the administrative services agreement with Breitburn Management, effective as of June 30, 2016 (see Note 5 for a discussion of the administrative services agreement). In connection with the reductions in workforce, we incurred total costs of approximately $2.4 million , $5.2 million , $1.8 million and $6.7 million during the three months and six months ended June 30, 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 reductions were communicated to affected employees on various dates during the six months ended June 30, 2016, and all such notifications were completed by June 30, 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 12 employees, 69 employees, zero employees and 37 employees, respectively, for the three months and six months ended June 30, 2016 and 2015 . In connection with the 2016 reductions, we expect our total cost to be approximately $5.4 million , of which $5.2 million was incurred in the first six months of 2016, which included severance cash payments, accelerated vesting of LTIP grants for certain individuals and other employee-related termination costs. At June 30, 2016 and December 31, 2015 we had restructuring costs payable of $2.3 million and zero , respectively. During each of the three months and six months ended June 30, 2016 , we made restructuring payments of $2.9 million . Three Months Ended June 30, Six Months Ended June 30, Thousands of dollars 2016 2015 2016 2015 Severance payments $ 1,508 $ 953 $ 3,451 $ 4,768 Unit-based compensation expense 806 720 1,444 1,534 Other termination costs 125 100 353 389 Total $ 2,439 $ 1,773 $ 5,248 $ 6,691 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events See Note 2, “Chapter 11 Cases and Liquidity,” for details on the Debtors’ cases under Chapter 11 of the Bankruptcy Code. On July 19, 2016, the Bankruptcy Court entered the DIP Amended Interim Order extending the Standstill Termination Date. Pursuant to the DIP Amended Interim Order, each of our derivative counterparties is required to hold any proceeds due to the Debtors in a book entry account maintained by the counterparty until the date that is the earlier of (i) the date the Bankruptcy Court approves in a final order a mutually acceptable resolution among the parties involved with regard to the disposition of the proceeds, (ii) three business days after the date counsel to the administrative agent under the Credit Agreement notifies in writing counsel to the Debtors that the administrative agent intends for the Standstill Termination Date to occur and that it may provide consent to the counterparties to set off any Credit Agreement obligations and (iii) August 22, 2016. |
Organization and Basis of Pre24
Organization and Basis of Presentation Change in Accounting Principle (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of Effect of Change in Accounting Principles | 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 |
Chapter 11 Cases and Liquidity
Chapter 11 Cases and Liquidity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Chapter 11 Cases and Liquidity [Abstract] | |
Restructuring and Related Costs | The following table summarizes the components included in reorganization items, net on our consolidated statements of operations for the three and six months ended June 30, 2016: Three Months Ended Six Months Ended Thousands of dollars June 30, 2016 June 30, 2016 Debt discounts/premiums and issuance costs $ 48,829 $ 48,829 Advisory and professional fees 13,963 13,963 DIP Credit Agreement debt issuance costs 4,172 4,172 Other (67 ) (67 ) Reorganization items, net $ 66,897 $ 66,897 |
Schedule of Liabilities Subject to Compromise | The following table summarizes the components of liabilities subject to compromise included in our consolidated balance sheets as of June 30, 2016: As of Thousands of dollars June 30, 2016 Senior Unsecured Notes $ 1,155,000 Senior Secured Notes 650,000 Accrued interest payable 61,908 Accounts payable 7,531 Distributions payable 6,354 Total liabilities subject to compromise $ 1,880,793 |
Financial Instruments and Fai26
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of our derivative instruments not designated as hedging instruments at December 31, 2015: 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 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 our ISDA Agreements, which 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 June 30, 2016 Net (loss) gain $ (71,720 ) $ (20,490 ) $ 533 $ (91,677 ) Three Months Ended June 30, 2015 Net loss $ (91,312 ) $ (2,120 ) $ (603 ) $ (94,035 ) Six Months Ended June 30, 2016 Net loss $ (43,345 ) $ (10,942 ) $ (1,810 ) $ (56,097 ) Six Months Ended June 30, 2015 Net gain (loss) $ 27,202 $ 16,558 $ (2,415 ) $ 41,345 (a) Included in (loss) gain on commodity derivative instruments, net on the consolidated statements of operations. (b) Included in (gain) 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 June 30, 2016 Assets (liabilities) Available-for-sale securities Equities $ 1,427 $ — $ — $ 1,427 Mutual funds 11,305 — — 11,305 Exchange traded funds 7,168 — — 7,168 Net assets $ 19,900 $ — $ — $ 19,900 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 June 30, 2016 2015 Thousands of dollars Oil Natural Gas Oil Natural Gas Assets (a): Beginning balance $ 35,332 $ 11,018 $ 59,101 $ 19,671 Derivative instrument settlements (b) 12,853 466 8,564 4,237 Loss (b)(c) (48,185 ) (11,484 ) (26,664 ) (8,898 ) Ending balance $ — $ — $ 41,001 $ 15,010 Six Months ended June 30, 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) 26,834 2,580 19,551 7,804 Loss (b)(c) (74,155 ) (14,324 ) (39,960 ) (12,686 ) Ending balance $ — $ — $ 41,001 $ 15,010 (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. Includes gains and losses resulting from the difference between the mark-to-market value of our level 3 derivative instruments at their termination dates and the expected settlement amounts. (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 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) | 6 Months Ended |
Jun. 30, 2016 | |
Other Assets [Abstract] | |
Schedule of Other Assets | As of June 30, 2016 , and December 31, 2015 , our other long-term assets were as follows: As of Thousands of dollars June 30, 2016 December 31, 2015 Debt issuance costs $ — $ 22,142 Available-for-sale securities 19,900 18,691 Deposit for Jay Field net profit interest obligation 18,263 18,263 Property reclamation deposit 10,737 10,736 Other 14,796 11,015 Total $ 63,696 $ 80,847 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of Long-term Debt Instruments | Our debt is detailed in the following table: As of Thousands of dollars June 30, 2016 December 31, 2015 Credit Agreement $ 1,197,329 $ 1,229,000 Promissory note 2,938 2,938 Senior Secured Notes 650,000 650,000 2020 Senior Notes 305,000 305,000 2022 Senior Notes 850,000 850,000 Unamortized debt issuance costs and net (discount) premium on Senior Notes (a) — (52,806 ) Capital lease obligations 186 210 Total debt 3,005,453 2,984,342 Less: Current portion of long-term debt (1,197,329 ) (154,000 ) Less: Amounts reclassified to liabilities subject to compromise (1,805,000 ) — Total long-term debt $ 3,124 $ 2,830,342 (a) In connection with the adoption of ASU 2015-03, unamortized debt issuance costs associated with the Senior Notes at December 31, 2015 of $37.0 million were reclassified from other long-term assets to debt. See Note 1 for a detailed discussion of the adoption of the change in accounting principle. |
Schedule of Interest Expense | Interest Expense Our interest expense is detailed as follows: Three Months Ended Six Months Ended June 30, June 30, Thousands of dollars 2016 2015 2016 2015 Credit Agreement (including commitment fees) and other long-term debt $ 13,335 $ 9,629 $ 22,334 $ 23,594 Senior Secured Notes (a) 7,517 13,862 22,548 13,862 Senior Unsecured Notes 11,655 23,311 34,966 46,622 Amortization of net discount/premium and debt issuance costs (b) 17,463 14,680 26,138 17,069 Capitalized interest (53 ) (78 ) (80 ) (78 ) Total $ 49,917 $ 61,404 $ 105,906 $ 101,069 (a) Reflects interest through the Chapter 11 Filing Date. (b) The three months and six months ended June 30, 2016 included the write-off of $15.7 million and $20.4 million of debt issuance costs. Each of the three months and six months ended June 30, 2015 included the write-off of $10.6 million of debt issuance costs. |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Change in Asset Retirement Obligation | Changes in ARO for the period ended June 30, 2016 , and the year ended December 31, 2015 are presented in the following table: Six Months Ended Year Ended Thousands of dollars June 30, 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 91 2,268 Liabilities settled (1,331 ) (7,744 ) Revision of estimates 1,607 3,954 Accretion expense 8,680 16,954 Carrying amount, end of period 255,123 254,378 Less: Current portion of ARO (3,425 ) (2,341 ) Non-current portion of ARO $ 251,698 $ 252,037 |
Partners' Equity (Tables)
Partners' Equity (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, Thousands, except per unit amounts 2016 2015 2016 2015 Net loss attributable to the partnership $ (261,315 ) $ (305,707 ) $ (365,101 ) $ (364,532 ) Less: Net loss attributable to participating units (a) — — — — Distributions on participating units in excess of earnings — 640 — 1,303 Distributions to Series A preferred unitholders 2,017 4,125 6,142 8,250 Non-cash distributions to Series B preferred unitholders 3,737 6,408 11,123 6,408 Net loss used to calculate basic and diluted net loss per unit $ (267,069 ) $ (316,880 ) $ (382,366 ) $ (380,493 ) Weighted average number of units used to calculate basic and diluted net loss per unit (in thousands): Common Units (b) 213,779 211,401 213,720 211,167 Dilutive units (c) — — — — Denominator for diluted net loss per unit 213,779 211,401 213,720 211,167 Net loss per common unit Basic $ (1.25 ) $ (1.50 ) $ (1.79 ) $ (1.80 ) Diluted $ (1.25 ) $ (1.50 ) $ (1.79 ) $ (1.80 ) (a) The previously reported 2015 net loss allocated to participating units was adjusted to correct an error in the allocation to participating units ; the correction to the 2015 EPU calculation was determined to be not material. (b) The three months and six months ended June 30, 2016 exclude 20,429 and 19,222 , respectively, 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. (c) The three months and six months ended June 30, 2016 and 2015 exclude 413 , 413 , 724 , and 715 , 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 Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 $ (72 ) $ 121 $ 49 $ (9 ) $ (280 ) $ (289 ) Other comprehensive income (loss) before reclassification 327 (781 ) (454 ) 52 — 52 Amounts reclassified from accumulated other comprehensive loss (a) (64 ) — (64 ) (125 ) — (125 ) Net current period other comprehensive income (loss) 263 (781 ) (518 ) (73 ) — (73 ) Less: Noncontrolling interest 107 (319 ) (212 ) (29 ) — (29 ) Carrying amount, end of period $ 84 $ (341 ) $ (257 ) $ (53 ) $ (280 ) $ (333 ) Six Months Ended June 30, 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 (loss) before reclassification 1,209 (781 ) 428 247 — 247 Amounts reclassified from accumulated other comprehensive loss (a) (476 ) — (476 ) (147 ) — (147 ) Net current period other comprehensive income (loss) 733 (781 ) (48 ) 100 — 100 Less: noncontrolling interest 299 (319 ) (20 ) 41 — 41 Carrying amount, end of period $ 84 $ (341 ) $ (257 ) $ (53 ) $ (280 ) $ (333 ) (a) Amounts were reclassified from accumulated other comprehensive loss to other (income) expense, net on the consolidated statements of operations. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring Costs [Abstract] | |
Restructuring and Related Costs | Three Months Ended June 30, Six Months Ended June 30, Thousands of dollars 2016 2015 2016 2015 Severance payments $ 1,508 $ 953 $ 3,451 $ 4,768 Unit-based compensation expense 806 720 1,444 1,534 Other termination costs 125 100 353 389 Total $ 2,439 $ 1,773 $ 5,248 $ 6,691 |
Organization and Basis of Pre33
Organization and Basis of Presentation Schedule of Effect of Change in Accounting Principles (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other long-term assets | $ 63,696 | $ 80,847 |
Assets | 4,531,648 | 4,835,387 |
Senior notes, net | 0 | 1,752,194 |
Long-term Debt, Excluding Current Maturities | 3,124 | 2,830,342 |
Liabilities | 3,492,104 | 3,429,492 |
Liabilities and Equity | $ 4,531,648 | 4,835,387 |
Previously Reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other long-term assets | 117,872 | |
Assets | 4,872,412 | |
Senior notes, net | 1,789,219 | |
Long-term Debt, Excluding Current Maturities | 2,867,367 | |
Liabilities | 3,466,517 | |
Liabilities and Equity | 4,872,412 | |
Effect of Adoption of Accounting Principle [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other long-term assets | (37,025) | |
Assets | (37,025) | |
Senior notes, net | (37,025) | |
Long-term Debt, Excluding Current Maturities | (37,025) | |
Liabilities | (37,025) | |
Liabilities and Equity | $ (37,025) |
Organization and Basis of Pre34
Organization and Basis of Presentation Reclassification (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Presentation of Financial Statements [Abstract] | ||
Notes Payable | $ 2,938 | $ 2,938 |
Other long-term debt | 3,124 | 3,148 |
Capital Lease Obligations | $ 186 | $ 210 |
Chapter 11 Cases and Liquidit35
Chapter 11 Cases and Liquidity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 15, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Accounts and other receivables, net (note 4) | $ 541,709 | $ 541,709 | $ 128,589 | |||
Other current liabilities | 13,368 | 13,368 | $ 5,133 | |||
Debt discounts/premiums and issuance costs | 48,829 | 48,829 | $ 0 | |||
Advisory and professional fees | 13,963 | 13,963 | ||||
DIP Credit Agreement debt issuance costs | 4,172 | 4,172 | ||||
Other | (67) | (67) | ||||
Reorganization items, net | $ 66,897 | $ 0 | $ 66,897 | $ 0 | ||
Senior Secured Notes [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Interest rate, stated percentage | 9.25% | 9.25% | ||||
Senior Notes One [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Interest rate, stated percentage | 8.625% | 8.625% | ||||
Interest Payable | $ 13,200 | |||||
Senior Notes Two [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Interest rate, stated percentage | 7.875% | 7.875% | ||||
Interest Payable | $ 33,500 | |||||
Estimated Hedge Settlement Receivable [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Accounts and other receivables, net (note 4) | $ 458,800 | $ 458,800 | ||||
Estimated Hedge Settlement Payable [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Other current liabilities | 3,900 | 3,900 | ||||
Accounts Payable [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | $ 5,800 | $ 5,800 |
Chapter 11 Cases and Liquidit36
Chapter 11 Cases and Liquidity Liabilities Subject to Compromise (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Restructuring Cost and Reserve [Line Items] | ||
Accounts payable | $ 7,531 | |
Liabilities Subject to Compromise | 1,880,793 | $ 0 |
Unsecured Debt [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Liabilities subject to compromise, debt and accrued interest | 1,155,000 | |
Secured Debt [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Liabilities subject to compromise, debt and accrued interest | 650,000 | |
Accrued Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Liabilities subject to compromise, debt and accrued interest | 61,908 | |
Preferred Units B [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Liabilities Subject to Compromise, Other Liabilities | $ 6,354 |
Acquisitions and Dispositions N
Acquisitions and Dispositions Narrative (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016USD ($)well | Mar. 31, 2015USD ($) | Jan. 31, 2016USD ($)well | May 31, 2015USD ($) | |
CO2 Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of wells | well | 6 | |||
Purchase price | $ 70.5 | $ 3.9 | ||
Payments to acquire businesses, net of cash acquired | $ 13.7 | |||
Ark-La-Tex [Member] | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 3.4 | |||
Mid-Cont [Member] | ||||
Business Acquisition [Line Items] | ||||
Proceeds from sale of oil and gas property and equipment | $ 11.8 | |||
Number of wells | well | 5 | |||
Gain (loss) on disposition of oil and gas property | $ 12.3 | |||
Royalty Agreements [Member] | Mid-Cont [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of wells | well | 42 |
Financial Instruments and Fai38
Financial Instruments and Fair Value Measurements - Not Designated As Hedging Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accounts and other receivables, net (note 4) | $ 541,709 | $ 128,589 | |
Current assets - derivative instruments | 0 | 439,627 | |
Long-term derivative instrument assets | 0 | 226,764 | |
Current liabilities - derivative instruments | 0 | (4,462) | |
Long-term liabilities - derivative instruments | 0 | (255) | |
Other current liabilities | 13,368 | 5,133 | |
Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current assets - derivative instruments | 439,627 | ||
Long-term derivative instrument assets | 226,764 | ||
Total assets | 666,391 | ||
Current liabilities - derivative instruments | (4,462) | ||
Long-term liabilities - derivative instruments | (255) | ||
Total liabilities | (4,717) | ||
Net assets (liabilities) | 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 | 397,748 | ||
Long-term derivative instrument assets | 202,140 | ||
Total assets | 599,888 | ||
Current liabilities - derivative instruments | (15) | ||
Long-term liabilities - derivative instruments | 0 | ||
Total liabilities | (15) | ||
Net assets (liabilities) | 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 | 44,426 | ||
Long-term derivative instrument assets | 27,105 | ||
Total assets | 71,531 | ||
Current liabilities - derivative instruments | (2,740) | ||
Long-term liabilities - derivative instruments | (2,865) | ||
Total liabilities | (5,605) | ||
Net assets (liabilities) | 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 | 222 | ||
Long-term derivative instrument assets | 216 | ||
Total assets | 438 | ||
Current liabilities - derivative instruments | (4,476) | ||
Long-term liabilities - derivative instruments | (87) | ||
Total liabilities | (4,563) | ||
Net assets (liabilities) | (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] | (2,769) | |
Long-term derivative instrument assets | [1] | (2,697) | |
Total assets | [1] | (5,466) | |
Current liabilities - derivative instruments | [1] | 2,769 | |
Long-term liabilities - derivative instruments | [1] | 2,697 | |
Total liabilities | [1] | 5,466 | |
Net assets (liabilities) | [1] | $ 0 | |
Estimated Hedge Settlement Receivable [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accounts and other receivables, net (note 4) | 458,800 | ||
Estimated Hedge Settlement Payable [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other current liabilities | $ 3,900 | ||
[1] | Represents counterparty netting under our ISDA Agreements, which 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 Fai39
Financial Instruments and Fair Value Measurements - Gains and Losses on Derivative Instruments Not Designated As Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loss (gain) on derivative instruments | $ (92,210) | $ (93,432) | $ (54,287) | $ 43,760 | |
Not Designated as Hedging Instrument [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loss (gain) on derivative instruments | (91,677) | (94,035) | (56,097) | 41,345 | |
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] | (71,720) | (91,312) | (43,345) | 27,202 |
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] | (20,490) | (2,120) | (10,942) | 16,558 |
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] | $ 533 | $ (603) | $ (1,810) | $ (2,415) |
[1] | Included in (loss) gain on commodity derivative instruments, net on the consolidated statements of operations. | ||||
[2] | Included in (gain) loss on interest rate swaps on the consolidated statements of operations. |
Financial Instruments and Fai40
Financial Instruments and Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | $ 19,900 | $ 680,365 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 19,900 | 18,691 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 0 | 602,609 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Net Asset (Liability) | 0 | 59,065 |
Equities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,427 | 2,524 |
Equities | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,427 | 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 | 11,305 | 11,190 |
Mutual funds | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 11,305 | 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 | 7,168 | 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 | 7,168 | 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 |
Swap [Member] | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 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 | |
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 | 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 | |
Swap [Member] | Natural Gas | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 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 | |
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 | 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 | |
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 | (4,125) | |
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 | |
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 | (4,125) | |
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 | |
Collars [Member] | Oil | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 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 | |
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 | |
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 | 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 | 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 | |
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 | |
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 | 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 | 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 | |
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 | |
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 | 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 | 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 | |
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 | |
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 | $ 11,126 |
Financial Instruments and Fai41
Financial Instruments and Fair Value Measurements - Reconciliation of Changes in Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Fair Value, Net Derivative Asset (Liability) [Roll Forward] | |||||
(Loss) gain | $ (56,097) | $ 41,345 | |||
Oil | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||||
Fair Value, Net Derivative Asset (Liability) [Roll Forward] | |||||
Beginning balance | [1] | $ 35,332 | $ 59,101 | 47,321 | 61,410 |
Derivative instrument settlements | [1],[2] | 12,853 | 8,564 | 26,834 | 19,551 |
(Loss) gain | [1],[2],[3] | (48,185) | (26,664) | (74,155) | (39,960) |
Ending balance | [1] | 0 | 41,001 | 0 | 41,001 |
Natural Gas | Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||||
Fair Value, Net Derivative Asset (Liability) [Roll Forward] | |||||
Beginning balance | [1] | 11,018 | 19,671 | 11,744 | 19,892 |
Derivative instrument settlements | [1],[2] | 466 | 4,237 | 2,580 | 7,804 |
(Loss) gain | [1],[2],[3] | (11,484) | (8,898) | (14,324) | (12,686) |
Ending balance | [1] | $ 0 | $ 15,010 | $ 0 | $ 15,010 |
[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 Fai42
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] - Derivative Financial Instruments, Assets [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Assets, Fair Value Disclosure | $ | $ 59,065 |
Fair Value Inputs, Counterparty Credit Risk | 5.00% |
Oil | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Assets, Fair Value Disclosure | $ | $ 47,321 |
Oil | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Inputs, Offered Quotes (usd per share) | $ 47.79 |
Fair Value Assumptions, Expected Volatility Rate | 44.95% |
Oil | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Inputs, Offered Quotes (usd per share) | $ 37.04 |
Fair Value Assumptions, Expected Volatility Rate | 32.24% |
Natural Gas | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Assets, Fair Value Disclosure | $ | $ 11,744 |
Natural Gas | Maximum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Inputs, Offered Quotes (usd per share) | $ 2.99 |
Fair Value Assumptions, Expected Volatility Rate | 73.05% |
Natural Gas | Minimum [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Fair Value Inputs, Offered Quotes (usd per share) | $ 2.34 |
Fair Value Assumptions, Expected Volatility Rate | 23.44% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||||
General and administrative expenses | $ 16,270,000 | $ 22,862,000 | $ 37,684,000 | $ 55,124,000 | |
PCEC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Monthly Fee for Indirect Costs | 700,000 | 700,000 | 700,000 | 700,000 | |
Current receivables | 400,000 | 400,000 | $ 1,700,000 | ||
Indirect expenses | 2,100,000 | 2,100,000 | 4,200,000 | 4,200,000 | |
General and administrative expenses | 2,400,000 | $ 2,200,000 | 4,400,000 | $ 5,000,000 | |
Other Affiliates [Member] | |||||
Related Party Transaction [Line Items] | |||||
Current receivables | $ 1,000,000 | $ 1,000,000 | $ 700,000 |
Impairments (Details)
Impairments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 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 | $ 0 | $ 0 | $ 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 | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
OtherLongTermAssets [Line Items] | |||||
Debt issuance costs | $ 0 | $ 0 | $ 22,142 | ||
Available-for-sale securities | 19,900 | 19,900 | 18,691 | ||
Other | 14,796 | 14,796 | 11,015 | ||
Other long-term assets | (63,696) | (63,696) | (80,847) | ||
Write off of unamortized debt issuance costs | $ 10,600 | $ 10,600 | |||
Deposit for Jay Field net profit interest obligation | |||||
OtherLongTermAssets [Line Items] | |||||
Deposit asset | 18,263 | 18,263 | 18,263 | ||
Property reclamation deposit | |||||
OtherLongTermAssets [Line Items] | |||||
Deposit asset | 10,737 | 10,737 | 10,736 | ||
Preferred Units B [Member] | |||||
OtherLongTermAssets [Line Items] | |||||
Write off of unamortized debt issuance costs | $ 15,700 | $ 20,400 | |||
Scenario, Adjustment [Member] | |||||
OtherLongTermAssets [Line Items] | |||||
Other long-term assets | $ 37,025 |
Debt Total debt (Details)
Debt Total debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Credit Agreement | $ 1,200,000 | $ 1,200,000 | |
Notes Payable | 2,938 | 2,938 | |
Senior notes at fair value | 650,000 | 650,000 | |
Capital Lease Obligations | 186 | 210 | |
Less: Current portion of long-term debt | (1,197,329) | (154,000) | |
Liabilities Subject to Compromise | (1,880,793) | 0 | |
Other long-term assets | 63,696 | 80,847 | |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Credit Agreement | 1,197,329 | 1,229,000 | |
Senior Notes One [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 305,000 | $ 305,000 | 305,000 |
Senior Notes Two [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 850,000 | $ 850,000 | 850,000 |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized discount/premium and debt issuance expense | 0 | (52,806) | |
Effect of Adoption of Accounting Principle [Member] | |||
Debt Instrument [Line Items] | |||
Other long-term assets | (37,025) | ||
Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Total debt | 3,005,453 | 2,984,342 | |
Less: Current portion of long-term debt | (1,197,329) | (154,000) | |
Liabilities Subject to Compromise | (1,805,000) | 0 | |
Long-term Debt | $ 3,124 | $ 2,830,342 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||||
Amount arranged | $ 75,000 | $ 75,000 | ||||
Unused borrowings | 75,000 | 75,000 | ||||
Credit facility | 1,200,000 | 1,200,000 | $ 1,200,000 | |||
Current borrowing capacity | 1,800,000 | 1,800,000 | 1,800,000 | |||
Commitment from existing lenders, borrowing base | $ 1,400,000 | 1,800,000 | ||||
Write off of unamortized debt issuance costs | $ 10,600 | $ 10,600 | ||||
Current portion of long-term debt (note 8) | $ 1,197,329 | $ 1,197,329 | $ 154,000 | |||
Prime Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 6.75% | 6.75% | ||||
Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount arranged | $ 50,000 | $ 50,000 | ||||
Preferred Units B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Write off of unamortized debt issuance costs | 15,700 | 20,400 | ||||
Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Amount arranged | $ 5,000 | $ 5,000 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2016 | May 15, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Senior notes at fair value | $ 650,000,000 | $ 650,000,000 | $ 650,000,000 | ||
Senior notes, net | 0 | 0 | 1,752,194,000 | ||
Debt issuance costs | 0 | 0 | $ 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 | ||||
Unamortized discount | $ 16,100,000 | 16,500,000 | |||
Debt issuance costs | $ 18,900,000 | $ 19,400,000 | |||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | 7,500,000 | 7,500,000 | |||
Accrued Liabilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Liabilities subject to compromise, debt and accrued interest | 61,908,000 | 61,908,000 | |||
Accrued Liabilities [Member] | Senior Secured Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Liabilities subject to compromise, debt and accrued interest | $ 7,500,000 | $ 7,500,000 |
Debt Senior Unsecured Notes (De
Debt Senior Unsecured Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2016 | Apr. 15, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Senior notes, net | $ 0 | $ 0 | $ 1,752,194 | ||
Debt issuance costs | 0 | 0 | 22,142 | ||
Senior Notes One [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 305,000 | 305,000 | $ 305,000 | 305,000 | |
Senior notes, net | 298,200 | ||||
Unamortized discount | 2,800 | ||||
Debt issuance costs | 4,000 | ||||
Interest Payable | $ 13,200 | ||||
Senior Notes Two [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | 850,000 | 850,000 | 850,000 | $ 850,000 | |
Senior notes, net | 842,600 | ||||
Debt issuance costs | 11,700 | ||||
Unamortized premium | $ 4,300 | ||||
Interest Payable | $ 33,500 | ||||
Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Contractual Interest Expense on Prepetition Liabilities Not Recognized in Statement of Operations | 11,700 | 11,700 | |||
Accrued Liabilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Liabilities subject to compromise, debt and accrued interest | 61,908 | 61,908 | |||
Accrued Liabilities [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Liabilities subject to compromise, debt and accrued interest | 54,400 | 54,400 | |||
reorganization item [Member] | Unsecured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | 15,400 | 15,400 | |||
Unamortized premium | $ 1,500 | $ 1,500 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |||
Debt Instrument [Line Items] | ||||||
Amortization of net discount/premium and deferred issuance costs | $ 17,463 | [1] | $ 14,680 | $ 26,138 | [1] | $ 17,069 |
Capitalized interest | (53) | (78) | (80) | (78) | ||
Interest expense, net of capitalized interest | 49,917 | 61,404 | 105,906 | 101,069 | ||
Write off of unamortized debt issuance costs | 10,600 | 10,600 | ||||
Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 13,335 | 9,629 | 22,334 | 23,594 | ||
Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 7,517 | 13,862 | 22,548 | 13,862 | ||
Unsecured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | 11,655 | $ 23,311 | 34,966 | $ 46,622 | ||
Preferred Units B [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Write off of unamortized debt issuance costs | $ 15,700 | $ 20,400 | ||||
[1] | Reflects interest through the Chapter 11 Filing Date. |
Condensed Consolidating Finan51
Condensed Consolidating Financial Statements Condenced Financial Information (Details) | Jun. 30, 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
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 | 91 | 2,268 |
Liabilities settled | (1,331) | (7,744) |
Revision of estimates | 1,607 | 3,954 |
Accretion expense | 8,680 | 16,954 |
Carrying amount, end of period | 255,123 | 254,378 |
Less: Current portion of ARO | (3,425) | (2,341) |
Long-term asset retirement obligation | $ 251,698 | $ 252,037 |
Wells and Related Equipment and Facilities [Member] | ||
Asset Retirement Obligations [Line Items] | ||
Credit adjusted risk free rate | 14.00% | 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 | Jun. 30, 2016 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | ||
Surety bonds, current carrying value | $ 29 | $ 27 |
Letters of credit outstanding, amount | 45 | 25.8 |
DIP Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding, amount | $ 1.8 | $ 0 |
Partners' Equity (Details)
Partners' Equity (Details) - USD ($) | Apr. 08, 2015 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | Apr. 14, 2016 | Dec. 31, 2015 | May 21, 2014 |
Capital Unit [Line Items] | ||||||||||
Preferred units, issued (shares) | 8,000,000 | |||||||||
Preferred stock, par value (usd per share) | $ 25 | |||||||||
Proceeds from issuance of preferred stock and preference stock | $ 337,200,000 | $ 193,200,000 | ||||||||
Preferred units, offering costs | $ 6,800,000 | |||||||||
Dividend rate (usd per share) | $ 0.171875 | |||||||||
distributions to series A preferred unitholders | $ 2,017,000 | $ 4,100,000 | $ 4,125,000 | $ 6,142,000 | $ 8,250,000 | |||||
Series A preferred units, 8.0 million units issued and outstanding at each of June 30, 2016 and December 31, 2015 (note 12) | 193,215,000 | 193,215,000 | $ 193,215,000 | |||||||
Non-cash distributions to Series B preferred unitholders | $ 3,737,000 | $ 6,408,000 | $ 11,123,000 | $ 6,408,000 | ||||||
Series A [Member] | ||||||||||
Capital Unit [Line Items] | ||||||||||
Common units issued and outstanding (shares) | 8,000,000 | 8,000,000 | 8,000,000 | 8,000,000 | ||||||
Preferred Units B [Member] | ||||||||||
Capital Unit [Line Items] | ||||||||||
Common units issued and outstanding (shares) | 49,600,000 | 49,600,000 | 49,600,000 | 48,800,000 | ||||||
Common Units [Member] | ||||||||||
Capital Unit [Line Items] | ||||||||||
Common units issued and outstanding (shares) | 213,800,000 | 213,800,000 | 213,500,000 | |||||||
Distribution made to limited partner (usd per share) | $ 0.1250 | $ 0.3749 | ||||||||
Non cash stock dividend (shares) | 0 | 121,584 | 163,314 | 121,584 | ||||||
Common Units issued pursuant to vest grants (shares) | 0 | 100,000 | 100,000 | |||||||
Long-term incentive compensation plans, number of shares eligible to be issued (shares) | 20,700,000 | 20,700,000 | 3,600,000 | |||||||
Cash distributions paid | $ 26,400,000 | $ 79,100,000 | ||||||||
Equivalent Units [Member] | ||||||||||
Capital Unit [Line Items] | ||||||||||
Share-based compensation, cash | $ 0 | $ 0 | ||||||||
Restricted Phantom Units (RPUs) [Member] | ||||||||||
Capital Unit [Line Items] | ||||||||||
Share-based compensation, cash | $ 700,000 | $ 2,100,000 | ||||||||
Preferred Units B [Member] | ||||||||||
Capital Unit [Line Items] | ||||||||||
Preferred stock, par value (usd per share) | $ 7.50 | |||||||||
Series A preferred units, 8.0 million units issued and outstanding at each of June 30, 2016 and December 31, 2015 (note 12) | $ 350,000,000 | |||||||||
Distribution made to limited partner (usd per share) | $ 0.006666 | $ 0.006666 | $ 0.006666 | |||||||
Non cash stock dividend (shares) | 818,626 | 575,291 | 575,291 |
Partners' Equity - Earnings Per
Partners' Equity - Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Net income (loss) | $ (261,315) | $ (305,707) | $ (365,101) | $ (364,532) | |
Distributions on Participating Units in Excess of Earnings | 0 | 640 | 0 | 1,303 | |
Less: Distributions to Series A preferred unitholders | 2,017 | $ 4,100 | 4,125 | 6,142 | 8,250 |
Non-cash distributions to Series B preferred unitholders | 3,737 | 6,408 | 11,123 | 6,408 | |
Net loss used to calculate basic and diluted net loss per unit | $ (267,069) | $ (316,880) | $ (382,366) | $ (380,493) | |
Basic weighted average units outstanding (shares) | 213,779 | 211,401 | 213,720 | 211,167 | |
Diluted Weighted Average Units Outstanding (shares) | 0 | 0 | 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 (shares) | 213,779 | 211,401 | 213,720 | 211,167 | |
Basic net loss per common unit (usd per share) | $ (1.25) | $ (1.50) | $ (1.79) | $ (1.80) | |
Diluted net loss per unit (usd per share) | $ (1.25) | $ (1.50) | $ (1.79) | $ (1.80) | |
Convertible Phantom Units (CPUs) [Member] | |||||
Weighted average number of units used to calculate basic and diluted net loss per unit: | |||||
Antidilutive securities excluded from computation of EPS (shares) | 413 | 724 | 715 | ||
Restricted Phantom Units (RPUs) [Member] | |||||
Weighted average number of units used to calculate basic and diluted net loss per unit: | |||||
Antidilutive securities excluded from computation of EPS (shares) | 20,429 | 19,222 |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Accumulated comprehensive loss attributable to the partnership, beginning of period | $ 49 | $ (289) | $ (229) | $ (392) |
Other comprehensive income (loss) before reclassification | (454) | 52 | 428 | 247 |
Amounts reclassified from accumulated other comprehensive loss | (64) | (125) | (476) | (147) |
Net current period other comprehensive income (loss) | (518) | (73) | (48) | 100 |
Noncontrolling Interest, Accumulated Other Comprehensive Income (loss) Net of Tax | (212) | (29) | (20) | 41 |
Accumulated comprehensive loss attributable to the partnership, end of period | (257) | (333) | (257) | (333) |
Available-For-Sale Securities | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Accumulated comprehensive loss attributable to the partnership, beginning of period | (72) | (9) | (350) | (112) |
Other comprehensive income (loss) before reclassification | 327 | 52 | 1,209 | 247 |
Amounts reclassified from accumulated other comprehensive loss | (64) | (125) | (476) | (147) |
Net current period other comprehensive income (loss) | 263 | (73) | 733 | 100 |
Noncontrolling Interest, Accumulated Other Comprehensive Income (loss) Net of Tax | 107 | (29) | 299 | 41 |
Accumulated comprehensive loss attributable to the partnership, end of period | 84 | (53) | 84 | (53) |
Post retirement Benefits | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Accumulated comprehensive loss attributable to the partnership, beginning of period | 121 | (280) | 121 | (280) |
Other comprehensive income (loss) before reclassification | (781) | 0 | (781) | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net current period other comprehensive income (loss) | (781) | 0 | (781) | 0 |
Noncontrolling Interest, Accumulated Other Comprehensive Income (loss) Net of Tax | (319) | 0 | (319) | 0 |
Accumulated comprehensive loss attributable to the partnership, end of period | $ (341) | $ (280) | $ (341) | $ (280) |
Unit and Other Valuation-Base57
Unit and Other Valuation-Based Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unit-based compensation expense | $ 4,800 | $ 6,800 | $ 10,075 | $ 14,545 | ||
Restricted Phantom Units (RPUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair market value of RPUs granted, average (usd per share) | $ 0.68 | $ 0.68 | ||||
Total unrecognized compensation costs | $ 16,800 | $ 16,800 | ||||
Phantom Share Units (PSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation costs | $ 600 | $ 600 | ||||
Employee [Member] | Restricted Phantom Units (RPUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants in the period (shares) | 0 | 4.4 | ||||
Employee [Member] | Phantom Share Units (PSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants in the period (shares) | 0 | 10.4 | ||||
Fair market value of RPUs granted, average (usd per share) | $ 0.68 | $ 0.68 | ||||
Fair value assumptions, exercise price (usd per share) | $ 0.08 | $ 0.08 | ||||
Director [Member] | Restricted Phantom Units (RPUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants in the period (shares) | 0 | 0.5 | ||||
Director [Member] | Phantom Share Units (PSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grants in the period (shares) | 0 | 0.5 | ||||
Allocated share-based compensation expense | $ (500) | $ 200 | ||||
Operating Expense [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unit-based compensation expense | 600 | 1,500 | ||||
Operating Expense [Member] | Phantom Share Units (PSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | (400) | 200 | ||||
General and Administrative Expense [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unit-based compensation expense | 3,300 | $ 6,100 | 7,100 | 13,000 | ||
General and Administrative Expense [Member] | key employee program (KEP) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | 900 | 2,500 | ||||
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 | (100) | 0 | ||||
Restructuring Charges [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unit-based compensation expense | 806 | $ 720 | 1,444 | $ 1,534 | ||
Cost of Sales [Member] | key employee program (KEP) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share-based compensation expense | $ 700 | $ 1,500 | ||||
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 (usd per share) | $ 0.50 | |||||
First Tranche [Member] | Restricted Phantom Units (RPUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 30 months | |||||
First Tranche [Member] | Phantom Share Units (PSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 18 months | |||||
Second Tranche [Member] | Restricted Phantom Units (RPUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 36 months | |||||
Second Tranche [Member] | Phantom Share Units (PSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 24 months |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)employee | Jun. 30, 2015USD ($)employee | Jun. 30, 2016USD ($)employee | Jun. 30, 2015USD ($)employee | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Expected cost | $ 5,400 | $ 5,400 | |||
Restructuring Reserve | 2,300 | 2,300 | $ 0 | ||
Payments for restructuring | 2,900 | 2,900 | |||
Restructuring Reserve [Roll Forward] | |||||
Unit-based compensation expense | 4,800 | $ 6,800 | 10,075 | $ 14,545 | |
Restructuring costs | $ 2,439 | $ 1,773 | $ 5,248 | $ 6,691 | |
One-time Termination Benefits [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of positions eliminated | employee | 12 | 0 | 69 | 37 | |
Restructuring Charges [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Severance payments | $ 1,508 | $ 953 | $ 3,451 | $ 4,768 | |
Unit-based compensation expense | 806 | 720 | 1,444 | 1,534 | |
Other termination costs | 125 | 100 | 353 | 389 | |
Restructuring costs | $ 2,439 | $ 1,773 | $ 5,248 | $ 6,691 |