Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | CXO | |
Entity Registrant Name | CONCHO RESOURCES INC | |
Entity Central Index Key | 1,358,071 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 131,799,601 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 481,230 | $ 228,550 |
Accounts receivable, net of allowance for doubtful accounts: | ||
Oil and natural gas | 200,234 | 203,972 |
Joint operations and other | 163,354 | 190,608 |
Derivative instruments | 230,779 | 652,498 |
Prepaid costs and other | 36,393 | 38,922 |
Total current assets | 1,111,990 | 1,314,550 |
Property and equipment: | ||
Oil and natural gas properties, successful efforts method | 16,490,330 | 15,846,307 |
Accumulated depletion and depreciation | (7,107,852) | (5,047,810) |
Total oil and natural gas properties, net | 9,382,478 | 10,798,497 |
Other property and equipment, net | 183,966 | 178,450 |
Total property and equipment, net | 9,566,444 | 10,976,947 |
Deferred loan costs, net | 13,247 | 15,585 |
Intangible asset - operating rights, net | 24,963 | 25,693 |
Inventory | 16,293 | 19,118 |
Noncurrent derivative instruments | 0 | 167,038 |
Other assets | 168,680 | 122,945 |
Total assets | 10,901,617 | 12,641,876 |
Accounts payable: | ||
Trade | 20,172 | 13,200 |
Related parties | 0 | 0 |
Revenue payable | 109,204 | 169,787 |
Accrued and prepaid drilling costs | 279,362 | 228,523 |
Derivative instruments | 412 | 0 |
Other current liabilities | 166,440 | 184,910 |
Total current liabilities | 575,590 | 596,420 |
Long-term debt | 3,333,532 | 3,332,188 |
Deferred income taxes | 890,324 | 1,630,373 |
Noncurrent derivative instruments | 54,362 | 0 |
Asset retirement obligations and other long-term liabilities | 144,103 | 140,344 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 300,000,000 authorized; 132,240,074 and 129,444,042 shares issued at June 30, 2016 and December 31, 2015, respectively | 132 | 129 |
Additional paid-in capital | 4,887,420 | 4,628,390 |
Retained earnings | 1,059,476 | 2,345,641 |
Treasury stock, at cost; 427,844 and 306,061 shares at June 30, 2016 and December 31, 2015, respectively | (43,322) | (31,609) |
Total stockholders' equity | 5,903,706 | 6,942,551 |
Total liabilities and stockholders' equity | $ 10,901,617 | $ 12,641,876 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 132,240,074 | 129,444,042 |
Treasury shares | 427,844 | 306,061 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating revenues: | ||||
Oil sales | $ 339,133 | $ 470,890 | $ 581,287 | $ 820,474 |
Natural gas sales | 57,166 | 66,535 | 98,576 | 130,473 |
Total operating revenues | 396,299 | 537,425 | 679,863 | 950,947 |
Operating costs and expenses: | ||||
Oil and natural gas production | 110,224 | 142,265 | 225,181 | 267,800 |
Exploration and abandonments | 21,274 | 12,020 | 44,134 | 17,775 |
Depreciation, depletion and amortization | 280,966 | 304,802 | 591,048 | 572,007 |
Accretion of discount on asset retirement obligations | 1,745 | 2,047 | 3,457 | 4,041 |
Impairments of long-lived assets | 0 | 0 | 1,524,645 | 0 |
General and administrative (including non-cash stock-based compensation of $12,451 and $15,450 for the three months ended June 30, 2016 and 2015, respectively, and $28,473 and $30,945 for the six months ended June 30, 2016 and 2015, respectively) | 53,357 | 60,923 | 107,152 | 119,724 |
Loss on derivatives | 296,694 | 147,399 | 216,852 | 32,059 |
(Gain) loss on disposition of assets, net | 1,137 | 1,581 | (109,929) | 1,620 |
Total operating costs and expenses | 765,397 | 671,037 | 2,602,540 | 1,015,026 |
Loss from operations | (369,098) | (133,612) | (1,922,677) | (64,079) |
Other income (expense): | ||||
Interest expense | (54,502) | (53,482) | (108,640) | (107,051) |
Other, net | (334) | (4,097) | (6,869) | (8,399) |
Total other expense | (54,836) | (57,579) | (115,509) | (115,450) |
Loss before income taxes | (423,934) | (191,191) | (2,038,186) | (179,529) |
Income tax benefit | 158,249 | 70,708 | 752,021 | 66,558 |
Net loss | $ (265,685) | $ (120,483) | $ (1,286,165) | $ (112,971) |
Earnings per share: | ||||
Basic net loss | $ (2.04) | $ (1.02) | $ (9.94) | $ (0.97) |
Diluted net loss | $ (2.04) | $ (1.02) | $ (9.94) | $ (0.97) |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Non-cash stock-based compensation | $ 12,451 | $ 15,450 | $ 28,473 | $ 30,945 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders Equity - 6 months ended Jun. 30, 2016 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
BALANCE at Dec. 31, 2015 | $ 6,942,551 | $ 129 | $ 4,628,390 | $ 2,345,641 | $ (31,609) |
BALANCE, Shares at Dec. 31, 2015 | 129,444 | 306 | |||
Net loss | $ (1,286,165) | $ 0 | 0 | (1,286,165) | $ 0 |
Common stock issued in business combination (Shares) | 2,214 | 2,214 | 0 | ||
Common stock issued in business combination | $ 230,828 | $ 2 | 230,826 | 0 | $ 0 |
Stock options exercised | 424 | $ 1 | 423 | 0 | $ 0 |
Options exercised | 21 | 0 | |||
Grants of restricted stock, shares | 428 | 0 | |||
Performance unit share conversion | 180 | 0 | |||
Cancellation of restricted stock, shares | (47) | 0 | |||
Stock-based compensation | 28,473 | $ 0 | 28,473 | 0 | $ 0 |
Tax deficiency related to stock-based compensation | (692) | 0 | (692) | 0 | 0 |
Purchase of treasury stock | (11,713) | $ 0 | 0 | 0 | $ (11,713) |
Purchase of treasury stock, shares | 0 | 122 | |||
BALANCE at Jun. 30, 2016 | $ 5,903,706 | $ 132 | $ 4,887,420 | $ 1,059,476 | $ (43,322) |
BALANCE, Shares at Jun. 30, 2016 | 132,240 | 428 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,286,165) | $ (112,971) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 591,048 | 572,007 |
Accretion of discount on asset retirement obligations | 3,457 | 4,041 |
Impairments of long-lived assets | 1,524,645 | 0 |
Exploration and abandonments, including dry holes | 38,550 | 12,352 |
Non-cash stock-based compensation expense | 28,473 | 30,945 |
Deferred income taxes | (740,049) | (95,268) |
(Gain) loss on disposition of assets, net | (109,929) | 1,620 |
Loss on derivatives | 216,852 | 32,059 |
Other non-cash items | 8,832 | 5,298 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Accounts receivable | 59,723 | 55,870 |
Prepaid costs and other | (7,886) | (2,098) |
Inventory | 2,508 | (1,935) |
Accounts payable | 6,956 | 23,339 |
Revenue payable | (58,980) | (35,556) |
Other current liabilities | (28,210) | (769) |
Net cash provided by operating activities | 249,825 | 488,934 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures on oil and natural gas properties | (650,889) | (1,492,547) |
Additions to property, equipment and other assets | (15,795) | (26,146) |
Proceeds from the disposition of assets | 294,341 | 96 |
Contributions to equity method investments | (39,500) | (45,000) |
Net settlements received from derivatives | 426,679 | 279,408 |
Net cash provided by (used in) investing activities | 14,836 | (1,284,189) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of debt | 0 | 1,097,400 |
Payments of debt | 0 | (1,030,900) |
Exercise of stock options | 424 | 58 |
Excess tax benefit (deficiency) from stock-based compensation | (692) | 2,221 |
Net proceeds from issuance of common stock | 0 | 741,509 |
Purchase of treasury stock | (11,713) | (4,403) |
Decrease in bank overdrafts | 0 | (10,371) |
Net cash provided by (used in) financing activities | (11,981) | 795,514 |
Net increase in cash and cash equivalents | 252,680 | 259 |
Cash and cash equivalents at beginning of period | 228,550 | 21 |
Cash and cash equivalents at end of period | 481,230 | 280 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Issuance of common stock for a business combination | $ 230,828 | $ 0 |
Organization and nature of oper
Organization and nature of operations | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and nature of operations | Note 1 . Organization and nature of operations Concho Resources Inc. ( the “Company” ) is a Delaware corporation formed on February 22, 2006. The Company’s principal business is the acquisition, development , exploration and production of oil and natural gas properties primarily loc ated in the Permian Basin of Southeast New Mexico and West Texas. |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Note 2 . Summary of significant accounting policies Principles of consolidation. The consolidated financial statements of the Company include the account s of the Company and its 100 percent owned subsidiaries. The Company consolidates the financial statements of these entities. All material intercompany balances and transactions have been eliminated. Reclassifications. Certain prior period amounts have been reclassified to conform to the 2016 presentation. These reclassifications had no impact on net loss , total stockholders’ equity or cash flows. Use of estimates in the preparation of financial statements. Preparation of financial statements in conformity with generally accepted accounting principles in the United States of Ameri ca requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expens es during the reporting periods. Actual results could differ from these estimates. Depletion of oil and natural gas propertie s is determined using estimates of proved oil and natural gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertaint ies including, among others, estimates of future recoverable reserves , commodity price outlooks and prevailing market rates of other sources of income and costs . Other significant estimates inclu de, but are not limited to, asset retirement obligations, fai r value of deriva tive financial instruments, fair value of business combinations , fair value of nonmonetary exchanges, fair value of stock-based compensation and income taxes . Interim financial statements. The accompanying consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2015 is derived from audited consolidated financial statements. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments necessary to present fairly the Company’s consolidated financial statements . All such adjustments are of a normal , recurring nature. In preparing the accompa nying consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The resul ts for interim periods are not necessarily indicative of annual results. Certain disclosures have been condensed in or omitted from these consolidated financial statements. Accordingly, these condensed notes to the consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Equity method investments. The Company owns a 50 percent member ship interest in a midstream joint venture , Alpha Crude Connector, LLC (“ACC”), that construct ed a crude oil gathering and transportation system in the northern Delaware Basin. ACC commenced partial operations in late 2015 an d completed construction of the pipeline in April 2016. The Company has the option to purchase the membership interest of the other investor in ACC. This purchase option became exercisable in July 2016 and remains exerc isable for a period of twelve months. The Company accounts for its investment in ACC under the equity method of accounting for investment s in unconsolidated affiliates. The Company’s net investment in ACC was approximately $ 129.0 million and $ 98.9 million at June 30, 2016 and December 31, 2015 , respectively, and is included in other assets in the Company’s consolidated balance sheets. The equity loss for the six months ended June 30, 2016 and 2015 was approximately $ 1.9 million and $ 1.7 million, respectively, and is included in other expense in the Company’s consolidated statements of operations. During the six months ended June 30, 2015 , the Company recorded $ 1.5 mil lion of capitalized interest on its investment in ACC. During 2015, the Company purchased a 25 percent membership interest in an entity constructing a crude oil gathering and transportation system in the southern Delaware Basin. The system is p artially operational and is expected to be completed during 2016. The Company accounts for its investment under the equity method of accounting for investments in unconsolidated affiliates. The Company’s net investment was approximately $ 26.0 million and $ 20.8 million at June 30, 2016 and December 31, 2015 , respectively, and is included in other assets in the Company’s consolidated balance sheet s . The equity loss for the six months ended June 30, 2016 was approximately $ 2.3 million and is included in other expense in the Company’s consolidated statements of operations. Revenue recognition. Oil and natural gas revenues are recorded at the time of physical transfer of such products to the purchaser, which for the Company is primarily at the wellhead. The Company follows the sales method of accounting for oil and natural gas sales, recognizing revenues based on the Company’s actual proceeds from the oil and natural gas sold to purchasers. General and administrative expense . The Company receives fees for the operation of jointly-owned oil and natural gas properties and records such reimbursemen ts as reductions of general and administrative expense. Such fees totaled approximately $ 6.0 million and $ 6.4 million for the three months ended June 30, 2016 and 2015 , respectively , and $ 12.5 million and $ 12.7 million for the six months ended June 30, 2016 and 2015 , respectively . Recent accounting pronouncements. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance , including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which deferred the effective date of ASU 2014-09 by one year. That new standard is now effective for annual reporting periods beginning after December 15, 2017. An entity can apply ASU 2014-09 using either a full retrospective method, meaning the s tandard is applied to all of the periods presented, or a modified retrospective method, meaning the cumulative effect of initially applying the standard is recognized in the most current period presented in the financial statements. The Company is evaluati ng the impact that this new guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which supersedes current lease guidance. The new lease standard requires all leases with a te rm greater than one year to be recognized on the balance sheet while maintaining substantially similar classifications for finance and operating leases. Lease expense recognition on the income statement will be effectively unchanged. This guidance is effec tive for reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is evaluating the impact that this new guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation–Stock Compensations (Topic 718): Improvements to Employee Share-based Payment Accounting,” which changes the accounting and presentation for share-based payment arrangements in the following areas: ( i ) r ecognition in the statement of operation s of exces s tax benefits and deficiencies; (ii) cash flow presentation of exces s tax benefits and deficiencies; (iii) minimum statutory withholding thresholds and the classification on the cash flow statement of the withheld amounts; and (iv) an accounting policy election to recognize forfeitures as they occur. This guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. The Company is evaluating the impact that this new guidance will have on its consol idated financial statements. |
Exploratory well costs
Exploratory well costs | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Exploratory Well Costs Capitalized Exploratory Well Activity [Abstract] | |
Exploratory well costs | Note 3 . Exploratory well costs The Company capitalizes exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. After an exploratory well has been completed and found oil and natural gas reserves, a determination may be pending as to whether the oil and natural reserves can be classified as proved. In those circumstances, the Company continues to capitalize the well or project costs pending the determination of proved status if ( i ) the well has found a sufficient quantity of reserves to justify its completion as a producing well and (ii) the Company is making sufficient progress assessing the reserves and the economi c and operating viability of the project. The capitalized exploratory well costs are carried in unproved oil and natural gas properties. See Note 16 for the proved and unproved components of oil and natural gas properties. If the exploratory well is determi ned to be impaired, the well costs are charged to exploration and abandonments expense in the consolidated statements of operations. The following table reflects the Company’s net capitalized exploratory well activity during the six months ended June 30, 2016 : Six Months Ended (in thousands) June 30, 2016 Beginning capitalized exploratory well costs $ 116,198 Additions to exploratory well costs pending the determination of proved reserves 103,499 Reclassifications due to determination of proved reserves (80,227) Exploratory well costs charged to expense (5,707) Disposition of wells (17,339) Ending capitalized exploratory well costs $ 116,424 The following table provides an aging at June 30, 2016 and December 31, 2015 of capitalized exploratory well costs based on the date drilling was completed: June 30, December 31, (dollars in thousands) 2016 2015 Capitalized exploratory well costs that have been capitalized for a period of one year or less $ 111,545 $ 98,764 Capitalized exploratory well costs that have been capitalized for a period greater than one year 4,879 17,434 Total capitalized exploratory well costs $ 116,424 $ 116,198 Number of projects with exploratory well costs that have been capitalized for a period greater than one year 6 8 Projects operated by others. At June 30, 2016 , the Company had approximately $ 4.6 million of suspended well costs greater than one year recorded for five wells that are operated by others and waiting on completion. Two of these wells, with suspended well costs totaling approximately $3. 1 million, completed drilling in 2012 and are expe cted to be completed in 2016. The remaining three wells completed drilling in 2014 and are waiting on completion. Texas Permian project . At June 30, 2016 , the Company had approximately $ 0 . 3 million of suspended well costs greater than one year recorded for a well that was initially drilled to monitor nearby pad wells and is expected to be completed in 2016. These costs became greater than one year old during the three months ended March 31, 2016 . |
Acquisitions and divestitures
Acquisitions and divestitures | 6 Months Ended |
Jun. 30, 2016 | |
Acquisitions and Divestitures [Abstract] | |
Acquisitions and divestitures | Note 4 . Acquisitions and divestitures Asset acquisition. In March 2016, the Company completed an acquisition of 80 percent of a third-party seller’s interest in certain oil and natural gas properties and related assets in the southern Delaware Basin. As consideration for the acquisition, the Company issue d to the seller approximately 2.2 million shares of common stock with an approximate valu e of $230.8 million , $ 146.2 million in cash and $40.0 million to carry a portion of the seller’s future development costs in these properties. Asset divestiture. In February 2016, the Company sold certain assets in the northern Delaware Basin for proceed s of approximately $ 292 .0 million and recognized a pre-tax gain of approximately $110 .1 million. |
Asset retirement obligations
Asset retirement obligations | 6 Months Ended |
Jun. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations | Note 5 . Asset retirement obligations The Company ’ s asset retirement obligations primarily relate to the future plugging and abandonment of wells and facilities. The followi ng table summarizes the Company ’ s asset retirement obligation activity during the six months ended June 30, 2016 : Six Months Ended (in thousands) June 30, 2016 Asset retirement obligations, beginning of period $ 119,945 Liabilities incurred from new wells 1,004 Liabilities assumed in acquisitions 902 Accretion expense 3,457 Disposition of wells (970) Liabilities settled upon plugging and abandoning wells (899) Asset retirement obligations, end of period $ 123,439 |
Incentive plans
Incentive plans | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive plans | Note 6 . Stock incentive plan The Company’s 20 15 Stock Incentive Plan provides for granting stock options, restricted stock awards and performance awards to directors, officers and employees of the Company. A summary of the Company’s activity for the six months ended June 30, 2016 is presented below: Restricted Stock Performance Stock Options Units Outstanding at December 31, 2015 1,199,647 42,901 315,755 Awards granted (a) 427,804 - 161,361 Options exercised - (20,776) - Awards cancelled / forfeited (46,642) - (9,285) Lapse of restrictions (378,215) - - Outstanding at June 30, 2016 1,202,594 22,125 467,831 (a) Weighted average grant date fair value per share $ 111.63 $ - $ 114.81 The following table reflects the future stock-based compensation expense to be recorded for all the stock-based compensation awards that were outsta nding at June 30, 2016 : (in thousands) Remaining 2016 $ 33,986 2017 44,894 2018 22,267 2019 4,922 2020 152 Total $ 106,221 |
Disclosures about fair value me
Disclosures about fair value measurements | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Fair Value Narrative [Abstract] | |
Disclosures about fair value measurements | Note 7 . Disclosures about fair value measurements The Company uses a valuation framework based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. These two types of inputs are further prioritized into the following fair value input hierarchy: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. The Company considers active markets to be those in which transactions for the assets or liabilities occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 : Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that the Company values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument, can be derived from observable data, or supported by observable levels at which transactions are executed in the marketplace. Level 2 instruments primarily include non-ex change traded derivatives such as over-the-counter commodity price swaps, basis swaps, collars and floors, investments and interest rate swaps. The Company’s valuation models are primarily industry-standard models that consider various inputs including: ( i ) quoted forward prices f or commodities, (ii) time value, (iii) current market and contractual prices for the underlying instruments and (iv) volatility factors, as well as other relevant economic measures. Level 3 : Prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources ( i.e. , supported by little or no market activity). The Company’s valuation models are primarily industry-standard models that cons ider various inputs including: ( i ) quoted forward prices for commodities, (ii) time value, (iii) volatility factors and (iv) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Financial Assets and Liabilities Measured at Fair Value The following table presents the carrying amounts and fair values of the Company’s financial instruments at June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 Carrying Fair Carrying Fair (in thousands) Value Value Value Value Assets: Derivative instruments $ 230,779 $ 230,779 $ 819,536 $ 819,536 Liabilities: Derivative instruments $ 54,774 $ 54,774 $ - $ - $600 million 7.0% senior notes due 2021 (a) $ 593,048 $ 621,720 $ 592,414 $ 595,500 $600 million 6.5% senior notes due 2022 (a) $ 592,125 $ 614,280 $ 591,549 $ 579,000 $600 million 5.5% senior notes due 2022 (a) $ 593,337 $ 603,000 $ 592,899 $ 553,500 $1,550 million 5.5% senior notes due 2023 (a) $ 1,555,022 $ 1,577,576 $ 1,555,326 $ 1,453,005 (a) The carrying value includes associated deferred loan costs and any premium. Cash and cash equivalents, accounts receivable, other current assets, accounts payable, interest payable and other current liabilities. The carrying amounts approximate fair value due to the short maturity of these instruments. Senior notes. The fair values of the Company’s senior notes are based on quoted market prices. The debt securities are not actively traded and, therefore, are classified as Level 2 in the fair value hierarchy. Derivative instruments. The fair value of the Company’s derivative instruments is estimated by management considering various factors, including closing exchange and over-the-counter quotations and the time value of the underlying commitments. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect th e valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following table s summarize ( i ) the valuation of each of the Company’s financial instruments by required fair value hierarchy levels and (ii) the gross fair value by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s consolidated balance sheets at June 30, 2016 and December 31, 2015 . The Company nets the fair value of derivative instruments by counterparty in the Company’s consolidated balance sheets. June 30, 2016 Fair Value Measurements Using Net Quoted Prices Gross Fair Value in Active Significant Amounts Presented Markets for Other Significant Offset in the in the Identical Observable Unobservable Consolidated Consolidated Assets Inputs Inputs Total Balance Balance (in thousands) (Level 1) (Level 2) (Level 3) Fair Value Sheet Sheet Assets: Current: Commodity derivatives $ - $ 265,181 $ - $ 265,181 $ (34,402) $ 230,779 Noncurrent: Commodity derivatives - 12,762 - 12,762 (12,762) - Liabilities: Current: Commodity derivatives - (34,814) - (34,814) 34,402 (412) Noncurrent: Commodity derivatives - (67,124) - (67,124) 12,762 (54,362) Net derivative instruments $ - $ 176,005 $ - $ 176,005 $ - $ 176,005 December 31, 2015 Fair Value Measurements Using Net Quoted Prices Gross Fair Value in Active Significant Amounts Presented Markets for Other Significant Offset in the in the Identical Observable Unobservable Consolidated Consolidated Assets Inputs Inputs Total Balance Balance (in thousands) (Level 1) (Level 2) (Level 3) Fair Value Sheet Sheet Assets: Current: Commodity derivatives $ - $ 684,029 $ - $ 684,029 $ (31,531) $ 652,498 Noncurrent: Commodity derivatives - 175,267 - 175,267 (8,229) 167,038 Liabilities: Current: Commodity derivatives - (31,531) - (31,531) 31,531 - Noncurrent: Commodity derivatives - (8,229) - (8,229) 8,229 - Net derivative instruments $ - $ 819,536 $ - $ 819,536 $ - $ 819,536 Concentrations of credit risk. At June 30, 2016 , the Company’s primary concentrations of credit risk are the risk of collecting accounts receivable and the risk of counterparties’ failure to perform under derivative obligations. The Company has entered into International Swap Dealers Association Master Agreements (“ISDA Agreements”) with each of its derivative counterparties. The terms of the ISDA Agreements provide the Company and the co unterparties with rights of set- off upon the occurrence of defined acts of default by either the Company or a counterparty to a derivative, whereby the party not in default may set off all derivative liabilities owed to the defaulting party against all derivative asset receivables from the defaulting party. See No te 8 for additional information regarding the Company ’ s derivative activities and counterparties . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are reported at fair value on a nonrecurring basis in the Company’ s consolidated balance sheets. The following methods and assumptions were used to estimate the fair values: Impairments of long-lived assets – The Company periodically reviews its long-lived assets to be held and used, including proved oil and natural gas properties and their integrated assets, whenever events or circumstances indica te that the carrying value of those assets may not be recoverable, for instance when there are declines in commodity prices or well performance. The Company reviews its oil and natural gas properties by depletion base. An impairment loss is indicated if th e sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets. If the estimated undiscounted future net cash flows are less than the carrying amount of the Company’s assets, it recognizes an impairment loss for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. The Company calculates the expected undiscounted future net cash flows of its long-lived assets and their integrated assets using management’s assumptions and expectations of ( i ) commodity prices, which are based on the New York Mercantile Exchange (“NYMEX”) strip, (ii) pricing adjustments for differentials, (iii) production costs, (iv) capital expenditures, (v) production volumes, (vi) estimated proved reserve s and risk-adjusted probable and possible reserves, and (vii) prevailing market rates of income and ex penses from integrated assets. At June 30, 2016 , the Company’s estimates of commodity prices for purposes of determining undiscounted future cash flow s, which are based on the NYMEX strip, ranged from a 2016 price of $49.54 per barrel of oil and $3.04 per Mcf of natural gas to a 2023 price of $57.77 per barrel of oil and $3.50 per Mcf of natural gas. Commodity prices for this purpose were held flat afte r 2023. The Company calculates the estimated fair values of its long-lived assets and their integrated assets using a discounted future cash flow model. Fair value assumptions associated with the calculation of discounted future net cash flows include ( i ) market estimates of commodity prices, (ii) pricing adjustments for differentials, (iii) production costs, (iv) capital expenditures, (v) production volumes, (vi) estimated proved reserves and risk-adjusted probable and possible reserves, (vii) prevailing market rates of income and expenses from integrated assets and (viii) discount rate. The expected future net cash flows were discounted using an annual rate of 10 percent to determine fair value . These are classified as Level 3 fair value assumptions. Dur ing the three months ended March 31, 2016, NYMEX strip prices declined as compared to December 31, 2015, and as a result the carrying amount of the Company’s Yeso field of approximately $3.4 billion exceeded the expected undiscounted future net cash flows resulting in a non-cash charge against earnings of approximately $1.5 billion. The non-cash charge represented the amount by which the carrying amount exceeded the estimated fair value of the assets. The following table reports the carrying amount, estimated fair value and impairment expense of long-lived assets for the indicated period : Estimated Carrying Fair Value Impairment (in thousands) Amount (Level 3) Expense March 2016 $ 3,437,612 $ 1,912,967 $ 1,524,645 It is reasonably possible that the estimate of undiscounted future net cash flows of the Company’s long-lived assets may change in the future resulting in the need to impair carrying values. The primary factors that may affect estimates of futu re cash flows are ( i ) commodity prices including differentials , (ii) increases or decreases in production and capital costs , (iii) future reserve volume adjustments, both positive and negative, to proved reserves and appropriate risk-adjusted probable and possible reserves , (iv) results of f ut ure drilling activities and (v) changes in income and expenses from integrated assets. |
Derivative financial instrument
Derivative financial instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | Note 8 . Derivative financial instruments The Company uses derivative financial instruments to manage its exposure to commodity price fluctuations. Commodity derivative instruments are used to ( i ) reduce the effect of the volatility of price changes on the oil and natural gas the Company produces and sells, (ii) support the Company’s capital budget and expenditure plans and (iii) support the economics associated with acquisitions. The Company does not enter into derivative financial instrument s for speculative or trading purposes. The Company may also enter into physical delivery contracts to effectively provide commodity price hedges. Because these physical delivery contracts are not expected to be net cash settled, they are considered to be n ormal sales contracts and not derivatives. Therefore, these contracts are not recorded in the Company’s consolidated financial statements. T he Company does not designate its derivative instruments to qualify for hedge accounting. Accordingly, the Company reflects changes in the fair value of its derivative instruments in its statements of operations as they occur. The following table summarizes the amounts reported in earnings related to the commodity derivative i nstruments for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Gain (loss) on derivatives: Oil derivatives $ (279,805) $ (146,549) $ (208,665) $ (36,269) Natural gas derivatives (16,889) (850) (8,187) 4,210 Total $ (296,694) $ (147,399) $ (216,852) $ (32,059) The following table represents the Company’s net cash receipts from derivatives for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net cash receipts from derivatives: Oil derivatives $ 160,968 $ 103,129 $ 412,095 $ 263,315 Natural gas derivatives 7,781 9,123 14,584 16,093 Total $ 168,749 $ 112,252 $ 426,679 $ 279,408 Commodity derivative contracts at June 30, 2016 . The following table sets forth the Company’s outstanding derivative contracts at June 30, 2016 . When aggregating multiple contracts, the weighted average contract price is disclosed. All of the Company’s derivative contracts at June 30, 2016 are expected to settle by December 31, 2018 . First Second Third Fourth Quarter Quarter Quarter Quarter Total Oil Swaps: (a) 2016: Volume (Bbl) 5,460,000 5,054,000 10,514,000 Price per Bbl $ 74.21 $ 59.38 $ 67.08 2017: Volume (Bbl) 5,278,000 4,903,000 4,592,000 4,337,000 19,110,000 Price per Bbl $ 58.73 $ 59.35 $ 51.04 $ 51.33 $ 55.36 2018: Volume (Bbl) 1,920,000 1,920,000 1,920,000 1,920,000 7,680,000 Price per Bbl $ 48.73 $ 48.73 $ 48.73 $ 48.73 $ 48.73 Oil Basis Swaps: (b) 2016: Volume (Bbl) 5,520,000 5,060,000 10,580,000 Price per Bbl $ (1.46) $ (1.48) $ (1.47) 2017: Volume (Bbl) 4,590,000 4,519,000 3,496,000 3,496,000 16,101,000 Price per Bbl $ (1.16) $ (1.18) $ (0.43) $ (0.43) $ (0.85) Natural Gas Swaps: (c) 2016: Volume (MMBtu) 7,360,000 7,360,000 14,720,000 Price per MMBtu $ 3.02 $ 3.02 $ 3.02 2017: Volume (MMBtu) 10,350,000 10,465,000 9,660,000 9,660,000 40,135,000 Price per MMBtu $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 (a) The index prices for the oil price swaps are based on the NYMEX – West Texas Intermediate (“WTI”) monthly average futures price. (b) The basis differential price is between Midland – WTI and Cushing – WTI. (c) The index prices for the natural gas price swaps are based on the NYMEX – Henry Hub last trading day futures price. Derivative counterparties. The Company uses credit and other financial criteria to evaluate the credit worthiness of counterparties to its derivative instruments. The Company believes that all of its derivative counterparties are currently acceptable credit risks. Other than provided by the Company’s revolving credit facility, the Company is not required to provide credit support or collateral to any counterparties under its derivative contracts, nor are they required to provide credit support to the C ompany. At June 30, 2016 , the Company had a net asset position of $ 176.0 million as a result of outstanding derivative contracts which are reflected in the accompanying consolidated balance sheets. The Company assessed this balance for concentration risk and noted balances of approximately $40.3 million , $26.9 million, $21.0 million and $19.7 million with Barclays Bank PLC, J.P. Morgan Chase Bank, Wells Fargo Bank, N.A. and Societe Generale , respectively. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 . Debt The Company’s debt consisted of the following at June 30, 2016 and December 31, 2015 : June 30, December 31, (in thousands) 2016 2015 Credit facility $ - $ - 7.0% unsecured senior notes due 2021 600,000 600,000 6.5% unsecured senior notes due 2022 600,000 600,000 5.5% unsecured senior notes due 2022 600,000 600,000 5.5% unsecured senior notes due 2023 1,550,000 1,550,000 Unamortized original issue premium 23,642 25,073 Senior notes issuance costs, net (40,110) (42,885) Less: current portion - - Total long-term debt $ 3,333,532 $ 3,332,188 Credit facility. The Company’s credit facility , as amended and restated, has a maturity date of May 9, 2019 . At June 30, 2016 , the Company’s commitments from its bank group were $2.5 billion. The Company expects it will maintain its $2.5 billion in commitments until its next scheduled redetermination in May 2017. At June 30, 2016 , the Company’s borrowing base was $2.8 billion . Senior notes. Interest on the Company’s senior notes is paid in arrears semi-annually. The senior notes are fully and unconditionall y guaranteed on a senior unsecured basis by all subsidiaries of the Company, subject to customary release provisions as described in Note 14 . At June 30, 2016 , the C ompany was in compliance with the covenants under all of its debt instruments . Principal maturities of long-term debt. Principal maturities of long -term debt outstanding at June 30, 2016 were as follows: (in thousands) Remaining 2016 $ - 2017 - 2018 - 2019 - 2020 - 2021 600,000 Thereafter 2,750,000 Total $ 3,350,000 Interest expense. The following amounts have been incurred and charged to interest expense for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Cash payments for interest $ 63,017 $ 59,225 $ 105,507 $ 105,232 Amortization of original issue premium (720) (681) (1,431) (1,355) Amortization of deferred loan origination costs 2,567 2,482 5,113 4,945 Accretion expense 485 - 971 - Net changes in accruals (10,847) (6,365) (1,268) 618 Interest costs incurred 54,502 54,661 108,892 109,440 Less: capitalized interest - (1,179) (252) (2,389) Total interest expense $ 54,502 $ 53,482 $ 108,640 $ 107,051 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 10 . Commitments and contingencies Legal actions . The Company is a party to proceedings and clai ms incidental to its business. While many of these matters involve inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to any such proceedings or cl aims will not have a material adverse effect on the Company’s consolidated financial position as a whole or on its liquidity, capital resources or future results of operations. The Company will continue to evaluate proceedings and claims involving the Comp any on a regular basis and will establish and adjust any reserves as appropriate to reflect its assessment of the then current status of the matters. Severance tax, royalty and joint interest audits . The Company is subject to routine severance, royalty and joint interest audits from regulatory bodies and non-operators and makes accruals as necessary for estimated exposure when deemed probable and estimable. Additionally, the Company is subject to various possible contingencies that arise primarily from i nterpretations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases , allowable costs under joint interest arrangements and other matters. At June 30, 2016 and December 31, 2015 , the Company had $ 13.8 million and $ 13.4 million , respectively, accrued for estimated exposure. Although the Company beli eve s that it has estimated its exposure with respect to the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. C ommitments. The Company periodically enters into contractual arrangements under which the Company is committed to expend funds . These contractual arrangements r elate to purchase agreements the Company has entered into including drilling commitments , water commitment agreements, through put volume delivery commitments, power commitments and maintenance commitments . The following table s ummarizes the Company’s commitments at June 30, 2016 : (in thousands) Remaining 2016 $ 29,573 2017 24,186 2018 63,057 2019 17,294 2020 11,797 2021 7,317 Thereafter 37,921 Total $ 191,145 Operating leases. The Company leases vehicles, equipment and office facilities under non-cancellable operating leases. Lease payments associated with these operating leases for the three months ended June 30, 2016 and 2015 were approximately $ 2.1 million and $ 1.9 million, respectively , and approximately $ 4.2 million and $ 3.8 million for the six months ended June 30, 2016 and 2015 , respectively . Future minimum lease commitments under non-cancellable operating leases at June 30, 2016 were as follows: (in thousands) Remaining 2016 $ 4,231 2017 8,458 2018 7,637 2019 6,169 2020 4,866 2021 4,147 Thereafter 994 Total $ 36,502 |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 11 . Income taxes The effective income tax rate s w ere 37.3 percent and 37.0 percent for the three months ended June 30, 2016 and 2015 , respectively , and 36.9 percent and 37.1 percent for the six months ended June 30, 2016 and 2015 , respectively . Total income tax benefit for the three and six months ended June 30, 2016 and 2015 differed from amounts computed by applying the United States federal statutory tax rates to pre-tax loss due primarily to state taxes and the impact of permanent differences between book and taxable income. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note 12 . Related party transactions The following table summarize s amounts paid to and received from related parties and reported in the Company’s consolidated statements of operations for the periods presented: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Amounts paid to a partnership in which a director has an ownership interest (a) $ 999 $ 1,403 $ 2,144 $ 3,097 Amounts paid to a director and certain officers of the Company (b) $ 75 $ 32 $ 235 $ 555 Amounts received from certain officers of the Company (c) $ 4 $ 52 $ 20 $ 67 (a) Amounts include royalties on certain properties paid to a partnership in which a director of the Company is the general partner and owns a 3.5 percent partnership interest. (b) Amounts include revenue interests, overriding royalty interests and net profits interests in properties owned by the Company made to a director and certain officers (or affiliated entities). Amounts also include payments for lease bonuses to an affiliated entity of an officer. (c) Amounts include payments to the Company as a result of activity on oil and na tural gas properties in which certain officers (or affiliated entities) have an interest. |
Net income per share
Net income per share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |
Net income per share | Note 13 . Net loss per share The Company uses the two-class method of calculating net loss per share because certain of the Company’s unvested share-based awards qualify as participating securities. The following table reconcile s the Company’s net loss from operations and loss attributable to common stockholders to the basic and diluted earnings used to determine the Company’s net loss per share amounts for the three and six months ended June 30, 2016 and 2015 , respectively, under the two-class method: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share amounts) 2016 2015 2016 2015 Net loss as reported $ (265,685) $ (120,483) $ (1,286,165) $ (112,971) Participating basic earnings (a) - - - - Basic loss attributable to common stockholders (265,685) (120,483) (1,286,165) (112,971) Reallocation of participating earnings - - - - Diluted loss attributable to common stockholders $ (265,685) $ (120,483) $ (1,286,165) $ (112,971) Loss per common share: Basic $ (2.04) $ (1.02) $ (9.94) $ (0.97) Diluted $ (2.04) $ (1.02) $ (9.94) $ (0.97) (a) Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity holders of the Company. Participating earnings represent the distributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so. The following table is a reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Weighted average common shares outstanding: Basic 130,400 117,637 129,398 116,502 Dilutive common stock options - - - - Dilutive performance units - - - - Diluted 130,400 117,637 129,398 116,502 Performance unit awards. The number of shares of common stock that will ultimately be issued for performance units will be determined by a combination of ( i ) comparing the Company’s total shareholder return relative to the total shareholder return of a predetermined group of peer companies at the end of the performance period and (ii) the Company’s absolute total shareholder return at the end of the performance period. The performance period is 36 months. The actual payout of shares will be between zero and 300 percent . |
Subsidiary guarantors
Subsidiary guarantors | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Subsidiary guarantors | Note 14 . Subsidiary guarantors All of the Company’s 100 percent owned subsidiaries have fully and unconditionally guaranteed the Company’s senior notes. The indentures governing the Company’s senior notes provide that the guarantees of its subsidiary guarantors will be released in certain customary circumstances including ( i ) in connection with any sale, exchange or other disposition, whether by merger, consolidation or otherwise, of the capital stock of that guarantor to a person that is no t the Company or a restricted subsidiary of the Company, such that, after giving effect to such transaction, such guarantor would no longer constitute a subsidiary of the Company, (ii) in connection with any sale, exchange or other disposition (other than a lease) of all or substantially all of the assets of that guarantor to a person that is not the Company or a restricted subsidiary of the Company, (iii) upon the merger of a guarantor into the Company or any other guarantor or the liquidation or dissoluti on of a guarantor, (iv) if the Company designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the indenture, (v) upon legal defeasance or satisfaction and discharge of the indenture and (vi) upon writte n notice of such release or discharge by the Company to the trustee following the release or discharge of all guarantees by such guarantor of any indebtedness that resulted in the creation of such guarantee, except a discharge or release by or as a result of payment under such guarantee. See Note 9 for a summary of the Company’s senior notes. In accordance with practices accepted by the United States Securities and Exchange Commission (“SEC”), the Company has prepared condensed consolidating finan cial statements in order to quantify the assets, results of operations and cash flows of such subsidiaries as subsidiary guarantors. The following condensed consolidating balance s heets at June 30, 2016 and December 31, 2015 , condensed c o nsolidating statements of o perations for the three and six months ended June 30, 2016 and 2015 and condensed consolidating statements of cash flows for the six months ended June 30, 2016 and 2015 , present financial information fo r Conch o Resources Inc. as the p arent on a stand-alone basis (carrying any investments in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. All current and deferred income taxes are recorded on Concho Resources Inc., as the subsidiaries are flow-through entities for income tax purp oses. The subsidiary guarantors are not restric ted from making distributions to the Company. Condensed Consolidating Balance Sheet June 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total ASSETS Accounts receivable - related parties $ 8,853,785 $ 898,972 $ (9,752,757) $ - Other current assets 284,704 827,286 - 1,111,990 Oil and natural gas properties, net - 9,382,478 - 9,382,478 Property and equipment, net - 183,966 - 183,966 Investment in subsidiaries 1,985,134 - (1,985,134) - Other long-term assets 25,418 197,765 - 223,183 Total assets $ 11,149,041 $ 11,490,467 $ (11,737,891) $ 10,901,617 LIABILITIES AND EQUITY Accounts payable - related parties $ 898,972 $ 8,853,785 $ (9,752,757) $ - Other current liabilities 68,145 507,445 - 575,590 Long-term debt 3,333,532 - - 3,333,532 Other long-term liabilities 944,686 144,103 - 1,088,789 Equity 5,903,706 1,985,134 (1,985,134) 5,903,706 Total liabilities and equity $ 11,149,041 $ 11,490,467 $ (11,737,891) $ 10,901,617 Condensed Consolidating Balance Sheet December 31, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total ASSETS Accounts receivable - related parties $ 8,502,099 $ 1,162,297 $ (9,664,396) $ - Other current assets 753,716 560,834 - 1,314,550 Oil and natural gas properties, net - 10,798,497 - 10,798,497 Property and equipment, net - 178,450 - 178,450 Investment in subsidiaries 3,698,485 - (3,698,485) - Other long-term assets 182,623 167,756 - 350,379 Total assets $ 13,136,923 $ 12,867,834 $ (13,362,881) $ 12,641,876 LIABILITIES AND EQUITY Accounts payable - related parties $ 1,162,297 $ 8,502,099 $ (9,664,396) $ - Other current liabilities 69,514 526,906 - 596,420 Long-term debt 3,332,188 - - 3,332,188 Other long-term liabilities 1,630,373 140,344 - 1,770,717 Equity 6,942,551 3,698,485 (3,698,485) 6,942,551 Total liabilities and equity $ 13,136,923 $ 12,867,834 $ (13,362,881) $ 12,641,876 Condensed Consolidating Statement of Operations Three Months Ended June 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 396,299 $ - $ 396,299 Total operating costs and expenses (297,205) (468,192) - (765,397) Loss from operations (297,205) (71,893) - (369,098) Interest expense (53,655) (847) - (54,502) Other, net (73,074) (334) 73,074 (334) Loss before income taxes (423,934) (73,074) 73,074 (423,934) Income tax benefit 158,249 - - 158,249 Net loss $ (265,685) $ (73,074) $ 73,074 $ (265,685) Condensed Consolidating Statement of Operations Three Months Ended June 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 537,425 $ - $ 537,425 Total operating costs and expenses (148,039) (522,998) - (671,037) Income (loss) from operations (148,039) 14,427 - (133,612) Interest expense (53,482) - - (53,482) Other, net 10,330 (4,097) (10,330) (4,097) Income (loss) before income taxes (191,191) 10,330 (10,330) (191,191) Income tax benefit 70,708 - - 70,708 Net income (loss) $ (120,483) $ 10,330 $ (10,330) $ (120,483) Condensed Consolidating Statement of Operations Six Months Ended June 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 679,863 $ - $ 679,863 Total operating costs and expenses (217,889) (2,384,651) - (2,602,540) Loss from operations (217,889) (1,704,788) - (1,922,677) Interest expense (106,946) (1,694) - (108,640) Other, net (1,713,351) (6,869) 1,713,351 (6,869) Loss before income taxes (2,038,186) (1,713,351) 1,713,351 (2,038,186) Income tax benefit 752,021 - - 752,021 Net loss $ (1,286,165) $ (1,713,351) $ 1,713,351 $ (1,286,165) Condensed Consolidating Statement of Operations Six Months Ended June 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 950,947 $ - $ 950,947 Total operating costs and expenses (33,435) (981,591) - (1,015,026) Loss from operations (33,435) (30,644) - (64,079) Interest expense (107,051) - - (107,051) Other, net (39,043) (8,399) 39,043 (8,399) Loss before income taxes (179,529) (39,043) 39,043 (179,529) Income tax benefit 66,558 - - 66,558 Net loss $ (112,971) $ (39,043) $ 39,043 $ (112,971) Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Net cash flows provided by (used in) operating activities $ (414,698) $ 664,523 $ - $ 249,825 Net cash flows provided by (used in) investing activities 426,679 (411,843) - 14,836 Net cash flows used in financing activities (11,981) - - (11,981) Net increase in cash and cash equivalents - 252,680 - 252,680 Cash and cash equivalents at beginning of period - 228,550 - 228,550 Cash and cash equivalents at end of period $ - $ 481,230 $ - $ 481,230 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Net cash flows provided by (used in) operating activities $ (1,085,293) $ 1,574,227 $ - $ 488,934 Net cash flows provided by (used in) investing activities 279,408 (1,563,597) - (1,284,189) Net cash flows provided by (used in) financing activities 805,885 (10,371) - 795,514 Net increase in cash and cash equivalents - 259 - 259 Cash and cash equivalents at beginning of period - 21 - 21 Cash and cash equivalents at end of period $ - $ 280 $ - $ 280 |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 15 . Subsequent event New commodity derivative contracts. After June 30, 2016 , the Com pany entered into the following oil price swaps, oil basis swaps and natural gas price swaps to hedge additional amounts of the Company’s estimated future production: First Second Third Fourth Quarter Quarter Quarter Quarter Total Oil Swaps: (a) 2018: Volume (Bbl) 390,000 390,000 390,000 390,000 1,560,000 Price per Bbl $ 49.24 $ 49.24 $ 49.24 $ 49.24 $ 49.24 Oil Basis Swaps: (b) 2017: Volume (Bbl) 360,000 364,000 368,000 368,000 1,460,000 Price per Bbl $ (0.50) $ (0.50) $ (0.50) $ (0.50) $ (0.50) Natural Gas Swaps: (c) 2017: Volume (MMBtu) 1,985,315 1,066,642 1,110,441 920,000 5,082,398 Price per MMBtu $ 3.21 $ 3.16 $ 3.16 $ 3.14 $ 3.18 (a) The index prices for the oil price swaps are based on the NYMEX – WTI monthly average futures price. (b) The basis differential price is between Midland – WTI and Cushing – WTI. (c) The index prices for the natural gas price swaps are based on the NYMEX – Henry Hub last trading day futures price. |
Supplementary information
Supplementary information | 6 Months Ended |
Jun. 30, 2016 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Supplementary information | Note 16 . Supplementary information Capitalized costs June 30, December 31, (in thousands) 2016 2015 Oil and natural gas properties: Proved $ 15,559,042 $ 14,940,259 Unproved 931,288 906,048 Less: accumulated depletion (7,107,852) (5,047,810) Net capitalized costs for oil and natural gas properties $ 9,382,478 $ 10,798,497 Costs incurred for oil and natural gas producing activities Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Property acquisition costs: Proved $ 3,757 $ 2,243 $ 256,109 $ 2,243 Unproved 18,767 18,037 157,407 34,050 Exploration 165,850 343,051 336,422 772,220 Development 107,039 221,410 190,143 523,154 Total costs incurred for oil and natural gas properties $ 295,413 $ 584,741 $ 940,081 $ 1,331,667 The table below provides the amount of asset retirement obligations included in the costs incurred table shown above: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Exploration costs $ 352 $ 737 $ 583 $ 1,355 Development costs 192 573 421 1,508 Total asset retirement obligations $ 544 $ 1,310 $ 1,004 $ 2,863 |
Summary of significant accoun24
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation. The consolidated financial statements of the Company include the account s of the Company and its 100 percent owned subsidiaries. The Company consolidates the financial statements of these entities. All material intercompany balances and transactions have been eliminated. |
Reclassification | Reclassifications. Certain prior period amounts have been reclassified to conform to the 2016 presentation. These reclassifications had no impact on net loss , total stockholders’ equity or cash flows. |
Use of estimates in the preparation of financial statements | Use of estimates in the preparation of financial statements. Preparation of financial statements in conformity with generally accepted accounting principles in the United States of Ameri ca requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expens es during the reporting periods. Actual results could differ from these estimates. Depletion of oil and natural gas propertie s is determined using estimates of proved oil and natural gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and natural gas properties are subject to numerous uncertaint ies including, among others, estimates of future recoverable reserves , commodity price outlooks and prevailing market rates of other sources of income and costs . Other significant estimates inclu de, but are not limited to, asset retirement obligations, fai r value of deriva tive financial instruments, fair value of business combinations , fair value of nonmonetary exchanges, fair value of stock-based compensation and income taxes . |
Interim financial statements | Interim financial statements. The accompanying consolidated financial statements of the Company have not been audited by the Company’s independent registered public accounting firm, except that the consolidated balance sheet at December 31, 2015 is derived from audited consolidated financial statements. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments necessary to present fairly the Company’s consolidated financial statements . All such adjustments are of a normal , recurring nature. In preparing the accompa nying consolidated financial statements, management has made certain estimates and assumptions that affect reported amounts in the consolidated financial statements and disclosures of contingencies. Actual results may differ from those estimates. The resul ts for interim periods are not necessarily indicative of annual results. Certain disclosures have been condensed in or omitted from these consolidated financial statements. Accordingly, these condensed notes to the consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . |
Equity method investments | Equity method investments. The Company owns a 50 percent member ship interest in a midstream joint venture , Alpha Crude Connector, LLC (“ACC”), that construct ed a crude oil gathering and transportation system in the northern Delaware Basin. ACC commenced partial operations in late 2015 an d completed construction of the pipeline in April 2016. The Company has the option to purchase the membership interest of the other investor in ACC. This purchase option became exercisable in July 2016 and remains exerc isable for a period of twelve months. The Company accounts for its investment in ACC under the equity method of accounting for investment s in unconsolidated affiliates. The Company’s net investment in ACC was approximately $ 129.0 million and $ 98.9 million at June 30, 2016 and December 31, 2015 , respectively, and is included in other assets in the Company’s consolidated balance sheets. The equity loss for the six months ended June 30, 2016 and 2015 was approximately $ 1.9 million and $ 1.7 million, respectively, and is included in other expense in the Company’s consolidated statements of operations. During the six months ended June 30, 2015 , the Company recorded $ 1.5 mil lion of capitalized interest on its investment in ACC. During 2015, the Company purchased a 25 percent membership interest in an entity constructing a crude oil gathering and transportation system in the southern Delaware Basin. The system is p artially operational and is expected to be completed during 2016. The Company accounts for its investment under the equity method of accounting for investments in unconsolidated affiliates. The Company’s net investment was approximately $ 26.0 million and $ 20.8 million at June 30, 2016 and December 31, 2015 , respectively, and is included in other assets in the Company’s consolidated balance sheet s . The equity loss for the six months ended June 30, 2016 was approximately $ 2.3 million and is included in other expense in the Company’s consolidated statements of operations. |
Revenue recognition | Revenue recognition. Oil and natural gas revenues are recorded at the time of physical transfer of such products to the purchaser, which for the Company is primarily at the wellhead. The Company follows the sales method of accounting for oil and natural gas sales, recognizing revenues based on the Company’s actual proceeds from the oil and natural gas sold to purchasers. |
General and administrative expense | General and administrative expense . The Company receives fees for the operation of jointly-owned oil and natural gas properties and records such reimbursemen ts as reductions of general and administrative expense. Such fees totaled approximately $ 6.0 million and $ 6.4 million for the three months ended June 30, 2016 and 2015 , respectively , and $ 12.5 million and $ 12.7 million for the six months ended June 30, 2016 and 2015 , respectively . |
Recent accounting pronouncements | Recent accounting pronouncements. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance , including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which deferred the effective date of ASU 2014-09 by one year. That new standard is now effective for annual reporting periods beginning after December 15, 2017. An entity can apply ASU 2014-09 using either a full retrospective method, meaning the s tandard is applied to all of the periods presented, or a modified retrospective method, meaning the cumulative effect of initially applying the standard is recognized in the most current period presented in the financial statements. The Company is evaluati ng the impact that this new guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which supersedes current lease guidance. The new lease standard requires all leases with a te rm greater than one year to be recognized on the balance sheet while maintaining substantially similar classifications for finance and operating leases. Lease expense recognition on the income statement will be effectively unchanged. This guidance is effec tive for reporting periods beginning after December 15, 2018 and early adoption is permitted. The Company is evaluating the impact that this new guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation–Stock Compensations (Topic 718): Improvements to Employee Share-based Payment Accounting,” which changes the accounting and presentation for share-based payment arrangements in the following areas: ( i ) r ecognition in the statement of operation s of exces s tax benefits and deficiencies; (ii) cash flow presentation of exces s tax benefits and deficiencies; (iii) minimum statutory withholding thresholds and the classification on the cash flow statement of the withheld amounts; and (iv) an accounting policy election to recognize forfeitures as they occur. This guidance is effective for reporting periods beginning after December 15, 2016 and early adoption is permitted. The Company is evaluating the impact that this new guidance will have on its consol idated financial statements. |
Exploratory well costs (Tables)
Exploratory well costs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Exploratory Well Costs Capitalized Exploratory Well Activity [Abstract] | |
Company's capitalized exploratory well activity | The following table reflects the Company’s net capitalized exploratory well activity during the six months ended June 30, 2016 : Six Months Ended (in thousands) June 30, 2016 Beginning capitalized exploratory well costs $ 116,198 Additions to exploratory well costs pending the determination of proved reserves 103,499 Reclassifications due to determination of proved reserves (80,227) Exploratory well costs charged to expense (5,707) Disposition of wells (17,339) Ending capitalized exploratory well costs $ 116,424 |
Aging of capitalized exploratory well costs based on the date drilling was completed | The following table provides an aging at June 30, 2016 and December 31, 2015 of capitalized exploratory well costs based on the date drilling was completed: June 30, December 31, (dollars in thousands) 2016 2015 Capitalized exploratory well costs that have been capitalized for a period of one year or less $ 111,545 $ 98,764 Capitalized exploratory well costs that have been capitalized for a period greater than one year 4,879 17,434 Total capitalized exploratory well costs $ 116,424 $ 116,198 Number of projects with exploratory well costs that have been capitalized for a period greater than one year 6 8 |
Asset retirement obligations (T
Asset retirement obligations (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations | The followi ng table summarizes the Company ’ s asset retirement obligation activity during the six months ended June 30, 2016 : Six Months Ended (in thousands) June 30, 2016 Asset retirement obligations, beginning of period $ 119,945 Liabilities incurred from new wells 1,004 Liabilities assumed in acquisitions 902 Accretion expense 3,457 Disposition of wells (970) Liabilities settled upon plugging and abandoning wells (899) Asset retirement obligations, end of period $ 123,439 |
Incentive plans (Tables)
Incentive plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of the Company's stock awards activity | A summary of the Company’s activity for the six months ended June 30, 2016 is presented below: Restricted Stock Performance Stock Options Units Outstanding at December 31, 2015 1,199,647 42,901 315,755 Awards granted (a) 427,804 - 161,361 Options exercised - (20,776) - Awards cancelled / forfeited (46,642) - (9,285) Lapse of restrictions (378,215) - - Outstanding at June 30, 2016 1,202,594 22,125 467,831 (a) Weighted average grant date fair value per share $ 111.63 $ - $ 114.81 |
Future stock-based compensation expense to be recorded for all the stock-based compensation awards that were outstanding | The following table reflects the future stock-based compensation expense to be recorded for all the stock-based compensation awards that were outsta nding at June 30, 2016 : (in thousands) Remaining 2016 $ 33,986 2017 44,894 2018 22,267 2019 4,922 2020 152 Total $ 106,221 |
Disclosures about fair value 28
Disclosures about fair value measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Fair Value Narrative [Abstract] | |
Carrying amounts and fair values of the Company's financial instruments | The following table presents the carrying amounts and fair values of the Company’s financial instruments at June 30, 2016 and December 31, 2015 : June 30, 2016 December 31, 2015 Carrying Fair Carrying Fair (in thousands) Value Value Value Value Assets: Derivative instruments $ 230,779 $ 230,779 $ 819,536 $ 819,536 Liabilities: Derivative instruments $ 54,774 $ 54,774 $ - $ - $600 million 7.0% senior notes due 2021 (a) $ 593,048 $ 621,720 $ 592,414 $ 595,500 $600 million 6.5% senior notes due 2022 (a) $ 592,125 $ 614,280 $ 591,549 $ 579,000 $600 million 5.5% senior notes due 2022 (a) $ 593,337 $ 603,000 $ 592,899 $ 553,500 $1,550 million 5.5% senior notes due 2023 (a) $ 1,555,022 $ 1,577,576 $ 1,555,326 $ 1,453,005 (a) The carrying value includes associated deferred loan costs and any premium. |
Net basis derivative fair values as reported in the consolidated balance sheets | The following table s summarize ( i ) the valuation of each of the Company’s financial instruments by required fair value hierarchy levels and (ii) the gross fair value by the appropriate balance sheet classification, even when the derivative instruments are subject to netting arrangements and qualify for net presentation in the Company’s consolidated balance sheets at June 30, 2016 and December 31, 2015 . The Company nets the fair value of derivative instruments by counterparty in the Company’s consolidated balance sheets. June 30, 2016 Fair Value Measurements Using Net Quoted Prices Gross Fair Value in Active Significant Amounts Presented Markets for Other Significant Offset in the in the Identical Observable Unobservable Consolidated Consolidated Assets Inputs Inputs Total Balance Balance (in thousands) (Level 1) (Level 2) (Level 3) Fair Value Sheet Sheet Assets: Current: Commodity derivatives $ - $ 265,181 $ - $ 265,181 $ (34,402) $ 230,779 Noncurrent: Commodity derivatives - 12,762 - 12,762 (12,762) - Liabilities: Current: Commodity derivatives - (34,814) - (34,814) 34,402 (412) Noncurrent: Commodity derivatives - (67,124) - (67,124) 12,762 (54,362) Net derivative instruments $ - $ 176,005 $ - $ 176,005 $ - $ 176,005 December 31, 2015 Fair Value Measurements Using Net Quoted Prices Gross Fair Value in Active Significant Amounts Presented Markets for Other Significant Offset in the in the Identical Observable Unobservable Consolidated Consolidated Assets Inputs Inputs Total Balance Balance (in thousands) (Level 1) (Level 2) (Level 3) Fair Value Sheet Sheet Assets: Current: Commodity derivatives $ - $ 684,029 $ - $ 684,029 $ (31,531) $ 652,498 Noncurrent: Commodity derivatives - 175,267 - 175,267 (8,229) 167,038 Liabilities: Current: Commodity derivatives - (31,531) - (31,531) 31,531 - Noncurrent: Commodity derivatives - (8,229) - (8,229) 8,229 - Net derivative instruments $ - $ 819,536 $ - $ 819,536 $ - $ 819,536 |
Carrying amounts, estimated fair values and impairment expense of long-lived assets | The following table reports the carrying amount, estimated fair value and impairment expense of long-lived assets for the indicated period : Estimated Carrying Fair Value Impairment (in thousands) Amount (Level 3) Expense March 2016 $ 3,437,612 $ 1,912,967 $ 1,524,645 |
Derivative financial instrume29
Derivative financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summarizes the gains and losses reported in earnings related to the commodity and interest rate derivative instruments | The following table summarizes the amounts reported in earnings related to the commodity derivative i nstruments for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Gain (loss) on derivatives: Oil derivatives $ (279,805) $ (146,549) $ (208,665) $ (36,269) Natural gas derivatives (16,889) (850) (8,187) 4,210 Total $ (296,694) $ (147,399) $ (216,852) $ (32,059) The following table represents the Company’s net cash receipts from derivatives for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Net cash receipts from derivatives: Oil derivatives $ 160,968 $ 103,129 $ 412,095 $ 263,315 Natural gas derivatives 7,781 9,123 14,584 16,093 Total $ 168,749 $ 112,252 $ 426,679 $ 279,408 |
Company's outstanding derivative contracts | The following table sets forth the Company’s outstanding derivative contracts at June 30, 2016 . When aggregating multiple contracts, the weighted average contract price is disclosed. All of the Company’s derivative contracts at June 30, 2016 are expected to settle by December 31, 2018 . First Second Third Fourth Quarter Quarter Quarter Quarter Total Oil Swaps: (a) 2016: Volume (Bbl) 5,460,000 5,054,000 10,514,000 Price per Bbl $ 74.21 $ 59.38 $ 67.08 2017: Volume (Bbl) 5,278,000 4,903,000 4,592,000 4,337,000 19,110,000 Price per Bbl $ 58.73 $ 59.35 $ 51.04 $ 51.33 $ 55.36 2018: Volume (Bbl) 1,920,000 1,920,000 1,920,000 1,920,000 7,680,000 Price per Bbl $ 48.73 $ 48.73 $ 48.73 $ 48.73 $ 48.73 Oil Basis Swaps: (b) 2016: Volume (Bbl) 5,520,000 5,060,000 10,580,000 Price per Bbl $ (1.46) $ (1.48) $ (1.47) 2017: Volume (Bbl) 4,590,000 4,519,000 3,496,000 3,496,000 16,101,000 Price per Bbl $ (1.16) $ (1.18) $ (0.43) $ (0.43) $ (0.85) Natural Gas Swaps: (c) 2016: Volume (MMBtu) 7,360,000 7,360,000 14,720,000 Price per MMBtu $ 3.02 $ 3.02 $ 3.02 2017: Volume (MMBtu) 10,350,000 10,465,000 9,660,000 9,660,000 40,135,000 Price per MMBtu $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 (a) The index prices for the oil price swaps are based on the NYMEX – West Texas Intermediate (“WTI”) monthly average futures price. (b) The basis differential price is between Midland – WTI and Cushing – WTI. (c) The index prices for the natural gas price swaps are based on the NYMEX – Henry Hub last trading day futures price. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Company's debt | The Company’s debt consisted of the following at June 30, 2016 and December 31, 2015 : June 30, December 31, (in thousands) 2016 2015 Credit facility $ - $ - 7.0% unsecured senior notes due 2021 600,000 600,000 6.5% unsecured senior notes due 2022 600,000 600,000 5.5% unsecured senior notes due 2022 600,000 600,000 5.5% unsecured senior notes due 2023 1,550,000 1,550,000 Unamortized original issue premium 23,642 25,073 Senior notes issuance costs, net (40,110) (42,885) Less: current portion - - Total long-term debt $ 3,333,532 $ 3,332,188 |
Principal maturities of debt | Principal maturities of long -term debt outstanding at June 30, 2016 were as follows: (in thousands) Remaining 2016 $ - 2017 - 2018 - 2019 - 2020 - 2021 600,000 Thereafter 2,750,000 Total $ 3,350,000 |
Interest expense | The following amounts have been incurred and charged to interest expense for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Cash payments for interest $ 63,017 $ 59,225 $ 105,507 $ 105,232 Amortization of original issue premium (720) (681) (1,431) (1,355) Amortization of deferred loan origination costs 2,567 2,482 5,113 4,945 Accretion expense 485 - 971 - Net changes in accruals (10,847) (6,365) (1,268) 618 Interest costs incurred 54,502 54,661 108,892 109,440 Less: capitalized interest - (1,179) (252) (2,389) Total interest expense $ 54,502 $ 53,482 $ 108,640 $ 107,051 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the Company's future commitments | The following table s ummarizes the Company’s commitments at June 30, 2016 : (in thousands) Remaining 2016 $ 29,573 2017 24,186 2018 63,057 2019 17,294 2020 11,797 2021 7,317 Thereafter 37,921 Total $ 191,145 |
Future minimum lease commitments under non-cancellable operating leases | Future minimum lease commitments under non-cancellable operating leases at June 30, 2016 were as follows: (in thousands) Remaining 2016 $ 4,231 2017 8,458 2018 7,637 2019 6,169 2020 4,866 2021 4,147 Thereafter 994 Total $ 36,502 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Summary of charges incurred with and payments made to the Company's related parties and reported in the consolidated statements of operations | The following table summarize s amounts paid to and received from related parties and reported in the Company’s consolidated statements of operations for the periods presented: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Amounts paid to a partnership in which a director has an ownership interest (a) $ 999 $ 1,403 $ 2,144 $ 3,097 Amounts paid to a director and certain officers of the Company (b) $ 75 $ 32 $ 235 $ 555 Amounts received from certain officers of the Company (c) $ 4 $ 52 $ 20 $ 67 (a) Amounts include royalties on certain properties paid to a partnership in which a director of the Company is the general partner and owns a 3.5 percent partnership interest. (b) Amounts include revenue interests, overriding royalty interests and net profits interests in properties owned by the Company made to a director and certain officers (or affiliated entities). Amounts also include payments for lease bonuses to an affiliated entity of an officer. (c) Amounts include payments to the Company as a result of activity on oil and na tural gas properties in which certain officers (or affiliated entities) have an interest. |
Net income per share (Tables)
Net income per share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |
Reconciliation of earnings attributable to common shares, basic and diluted | The following table reconcile s the Company’s net loss from operations and loss attributable to common stockholders to the basic and diluted earnings used to determine the Company’s net loss per share amounts for the three and six months ended June 30, 2016 and 2015 , respectively, under the two-class method: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share amounts) 2016 2015 2016 2015 Net loss as reported $ (265,685) $ (120,483) $ (1,286,165) $ (112,971) Participating basic earnings (a) - - - - Basic loss attributable to common stockholders (265,685) (120,483) (1,286,165) (112,971) Reallocation of participating earnings - - - - Diluted loss attributable to common stockholders $ (265,685) $ (120,483) $ (1,286,165) $ (112,971) Loss per common share: Basic $ (2.04) $ (1.02) $ (9.94) $ (0.97) Diluted $ (2.04) $ (1.02) $ (9.94) $ (0.97) (a) Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity holders of the Company. Participating earnings represent the distributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so. |
reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding | The following table is a reconciliation of the basic weighted average common shares outstanding to diluted weighted average common shares outstanding for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Weighted average common shares outstanding: Basic 130,400 117,637 129,398 116,502 Dilutive common stock options - - - - Dilutive performance units - - - - Diluted 130,400 117,637 129,398 116,502 |
Subsidiary guarantors (Tables)
Subsidiary guarantors (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Guarantees [Abstract] | |
Condensed Consolidating Balance Sheet | The following condensed consolidating balance s heets at June 30, 2016 and December 31, 2015 , condensed c o nsolidating statements of o perations for the three and six months ended June 30, 2016 and 2015 and condensed consolidating statements of cash flows for the six months ended June 30, 2016 and 2015 , present financial information fo r Conch o Resources Inc. as the p arent on a stand-alone basis (carrying any investments in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. All current and deferred income taxes are recorded on Concho Resources Inc., as the subsidiaries are flow-through entities for income tax purp oses. The subsidiary guarantors are not restric ted from making distributions to the Company. Condensed Consolidating Balance Sheet June 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total ASSETS Accounts receivable - related parties $ 8,853,785 $ 898,972 $ (9,752,757) $ - Other current assets 284,704 827,286 - 1,111,990 Oil and natural gas properties, net - 9,382,478 - 9,382,478 Property and equipment, net - 183,966 - 183,966 Investment in subsidiaries 1,985,134 - (1,985,134) - Other long-term assets 25,418 197,765 - 223,183 Total assets $ 11,149,041 $ 11,490,467 $ (11,737,891) $ 10,901,617 LIABILITIES AND EQUITY Accounts payable - related parties $ 898,972 $ 8,853,785 $ (9,752,757) $ - Other current liabilities 68,145 507,445 - 575,590 Long-term debt 3,333,532 - - 3,333,532 Other long-term liabilities 944,686 144,103 - 1,088,789 Equity 5,903,706 1,985,134 (1,985,134) 5,903,706 Total liabilities and equity $ 11,149,041 $ 11,490,467 $ (11,737,891) $ 10,901,617 Condensed Consolidating Balance Sheet December 31, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total ASSETS Accounts receivable - related parties $ 8,502,099 $ 1,162,297 $ (9,664,396) $ - Other current assets 753,716 560,834 - 1,314,550 Oil and natural gas properties, net - 10,798,497 - 10,798,497 Property and equipment, net - 178,450 - 178,450 Investment in subsidiaries 3,698,485 - (3,698,485) - Other long-term assets 182,623 167,756 - 350,379 Total assets $ 13,136,923 $ 12,867,834 $ (13,362,881) $ 12,641,876 LIABILITIES AND EQUITY Accounts payable - related parties $ 1,162,297 $ 8,502,099 $ (9,664,396) $ - Other current liabilities 69,514 526,906 - 596,420 Long-term debt 3,332,188 - - 3,332,188 Other long-term liabilities 1,630,373 140,344 - 1,770,717 Equity 6,942,551 3,698,485 (3,698,485) 6,942,551 Total liabilities and equity $ 13,136,923 $ 12,867,834 $ (13,362,881) $ 12,641,876 |
Condensed Consolidating Statement of Operations | The following condensed consolidating balance s heets at June 30, 2016 and December 31, 2015 , condensed c o nsolidating statements of o perations for the three and six months ended June 30, 2016 and 2015 and condensed consolidating statements of cash flows for the six months ended June 30, 2016 and 2015 , present financial information fo r Conch o Resources Inc. as the p arent on a stand-alone basis (carrying any investments in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. All current and deferred income taxes are recorded on Concho Resources Inc., as the subsidiaries are flow-through entities for income tax purp oses. The subsidiary guarantors are not restric ted from making distributions to the Company. Condensed Consolidating Statement of Operations Three Months Ended June 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 396,299 $ - $ 396,299 Total operating costs and expenses (297,205) (468,192) - (765,397) Loss from operations (297,205) (71,893) - (369,098) Interest expense (53,655) (847) - (54,502) Other, net (73,074) (334) 73,074 (334) Loss before income taxes (423,934) (73,074) 73,074 (423,934) Income tax benefit 158,249 - - 158,249 Net loss $ (265,685) $ (73,074) $ 73,074 $ (265,685) Condensed Consolidating Statement of Operations Three Months Ended June 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 537,425 $ - $ 537,425 Total operating costs and expenses (148,039) (522,998) - (671,037) Income (loss) from operations (148,039) 14,427 - (133,612) Interest expense (53,482) - - (53,482) Other, net 10,330 (4,097) (10,330) (4,097) Income (loss) before income taxes (191,191) 10,330 (10,330) (191,191) Income tax benefit 70,708 - - 70,708 Net income (loss) $ (120,483) $ 10,330 $ (10,330) $ (120,483) Condensed Consolidating Statement of Operations Six Months Ended June 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 679,863 $ - $ 679,863 Total operating costs and expenses (217,889) (2,384,651) - (2,602,540) Loss from operations (217,889) (1,704,788) - (1,922,677) Interest expense (106,946) (1,694) - (108,640) Other, net (1,713,351) (6,869) 1,713,351 (6,869) Loss before income taxes (2,038,186) (1,713,351) 1,713,351 (2,038,186) Income tax benefit 752,021 - - 752,021 Net loss $ (1,286,165) $ (1,713,351) $ 1,713,351 $ (1,286,165) Condensed Consolidating Statement of Operations Six Months Ended June 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 950,947 $ - $ 950,947 Total operating costs and expenses (33,435) (981,591) - (1,015,026) Loss from operations (33,435) (30,644) - (64,079) Interest expense (107,051) - - (107,051) Other, net (39,043) (8,399) 39,043 (8,399) Loss before income taxes (179,529) (39,043) 39,043 (179,529) Income tax benefit 66,558 - - 66,558 Net loss $ (112,971) $ (39,043) $ 39,043 $ (112,971) |
Condensed Consolidating Statement of Cash Flows | The following condensed consolidating balance s heets at June 30, 2016 and December 31, 2015 , condensed c o nsolidating statements of o perations for the three and six months ended June 30, 2016 and 2015 and condensed consolidating statements of cash flows for the six months ended June 30, 2016 and 2015 , present financial information fo r Conch o Resources Inc. as the p arent on a stand-alone basis (carrying any investments in subsidiaries under the equity method), financial information for the subsidiary guarantors on a stand-alone basis and the consolidation and elimination entries necessary to arrive at the information for the Company on a consolidated basis. All current and deferred income taxes are recorded on Concho Resources Inc., as the subsidiaries are flow-through entities for income tax purp oses. The subsidiary guarantors are not restric ted from making distributions to the Company. Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Net cash flows provided by (used in) operating activities $ (414,698) $ 664,523 $ - $ 249,825 Net cash flows provided by (used in) investing activities 426,679 (411,843) - 14,836 Net cash flows used in financing activities (11,981) - - (11,981) Net increase in cash and cash equivalents - 252,680 - 252,680 Cash and cash equivalents at beginning of period - 228,550 - 228,550 Cash and cash equivalents at end of period $ - $ 481,230 $ - $ 481,230 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Net cash flows provided by (used in) operating activities $ (1,085,293) $ 1,574,227 $ - $ 488,934 Net cash flows provided by (used in) investing activities 279,408 (1,563,597) - (1,284,189) Net cash flows provided by (used in) financing activities 805,885 (10,371) - 795,514 Net increase in cash and cash equivalents - 259 - 259 Cash and cash equivalents at beginning of period - 21 - 21 Cash and cash equivalents at end of period $ - $ 280 $ - $ 280 |
Subsequent events (Tables)
Subsequent events (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
New commodity derivative contracts | After June 30, 2016 , the Com pany entered into the following oil price swaps, oil basis swaps and natural gas price swaps to hedge additional amounts of the Company’s estimated future production: First Second Third Fourth Quarter Quarter Quarter Quarter Total Oil Swaps: (a) 2018: Volume (Bbl) 390,000 390,000 390,000 390,000 1,560,000 Price per Bbl $ 49.24 $ 49.24 $ 49.24 $ 49.24 $ 49.24 Oil Basis Swaps: (b) 2017: Volume (Bbl) 360,000 364,000 368,000 368,000 1,460,000 Price per Bbl $ (0.50) $ (0.50) $ (0.50) $ (0.50) $ (0.50) Natural Gas Swaps: (c) 2017: Volume (MMBtu) 1,985,315 1,066,642 1,110,441 920,000 5,082,398 Price per MMBtu $ 3.21 $ 3.16 $ 3.16 $ 3.14 $ 3.18 (a) The index prices for the oil price swaps are based on the NYMEX – WTI monthly average futures price. (b) The basis differential price is between Midland – WTI and Cushing – WTI. (c) The index prices for the natural gas price swaps are based on the NYMEX – Henry Hub last trading day futures price. |
Supplementary information (Tabl
Supplementary information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Capitalized costs | Capitalized costs June 30, December 31, (in thousands) 2016 2015 Oil and natural gas properties: Proved $ 15,559,042 $ 14,940,259 Unproved 931,288 906,048 Less: accumulated depletion (7,107,852) (5,047,810) Net capitalized costs for oil and natural gas properties $ 9,382,478 $ 10,798,497 |
costs incurred for oil and natural gas producing activities | Costs incurred for oil and natural gas producing activities Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Property acquisition costs: Proved $ 3,757 $ 2,243 $ 256,109 $ 2,243 Unproved 18,767 18,037 157,407 34,050 Exploration 165,850 343,051 336,422 772,220 Development 107,039 221,410 190,143 523,154 Total costs incurred for oil and natural gas properties $ 295,413 $ 584,741 $ 940,081 $ 1,331,667 The table below provides the amount of asset retirement obligations included in the costs incurred table shown above: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Exploration costs $ 352 $ 737 $ 583 $ 1,355 Development costs 192 573 421 1,508 Total asset retirement obligations $ 544 $ 1,310 $ 1,004 $ 2,863 |
Summary Of Significant Accoun37
Summary Of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Disclosure Summary Of Significant Accounting Policies Narrative [Abstract] | |||||
Fees related to operation of jointly owned oil and natural gas properties | $ 6 | $ 6.4 | $ 12.5 | $ 12.7 | |
Alpha Crude Connector [Member] | |||||
Equity Method Investments [Line Items] | |||||
Total equity method investment | $ 129 | $ 129 | $ 98.9 | ||
Equity method investment ownership percentage | 50.00% | 50.00% | |||
Loss from equity method investments | $ (1.9) | (1.7) | |||
Interest costs capitalized on equity method investment | $ 1.5 | ||||
Other [Member] | |||||
Equity Method Investments [Line Items] | |||||
Total equity method investment | $ 26 | $ 26 | $ 20.8 | ||
Equity method investment ownership percentage | 25.00% | 25.00% | |||
Loss from equity method investments | $ (2.3) |
Exploratory Well Costs (Capital
Exploratory Well Costs (Capitalized Exploratory Well Activity) (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Disclosure Exploratory Well Costs Capitalized Exploratory Well Activity [Abstract] | |
Beginning capitalized exploratory well costs | $ 116,198 |
Additions to exploratory well costs pending the determination of proved reserves | 103,499 |
Reclassifications due to determination of proved reserves | (80,227) |
Exploratory well costs charged to expense | (5,707) |
Disposition of wells | (17,339) |
Ending capitalized exploratory well costs | $ 116,424 |
Exploratory Well Costs (Aging O
Exploratory Well Costs (Aging Of Capitalized Exploratory Well Costs Based On The Date Of Drilling) (Detail) $ in Thousands | Jun. 30, 2016USD ($)Number | Dec. 31, 2015USD ($)Number |
Disclosure Exploratory Well Costs Aging Of Capitalized Exploratory Well Costs Based On The Date Of Drilling [Abstract] | ||
Capitalized exploratory well costs that have been capitalized for a period of one year or less | $ 111,545 | $ 98,764 |
Capitalized exploratory well costs that have been capitalized for a period greater than one year | 4,879 | 17,434 |
Total capitalized exploratory well costs | $ 116,424 | $ 116,198 |
Projects that have Exploratory Well Costs that have been Capitalized for Period Greater than One Year, Number of Projects | Number | 6 | 8 |
Exploratory Well Costs (Narrati
Exploratory Well Costs (Narrative) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Oil And Gas In Process Activities [Line Items] | ||
Capitalized Exploratory Well Costs That Have Been Capitalized For Period Greater Than One Year | $ 4,879 | $ 17,434 |
Texas Permian Area [Member] | ||
Oil And Gas In Process Activities [Line Items] | ||
Capitalized Exploratory Well Costs That Have Been Capitalized For Period Greater Than One Year | 300 | |
OBO Projects [Member] | ||
Oil And Gas In Process Activities [Line Items] | ||
Capitalized Exploratory Well Costs That Have Been Capitalized For Period Greater Than One Year | 4,600 | |
OBO Projects - Projects Drilled in 2012 [Member] | ||
Oil And Gas In Process Activities [Line Items] | ||
Capitalized Exploratory Well Costs That Have Been Capitalized For Period Greater Than One Year | $ 3,100 |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Narrative) (Detail) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure Acquisitions And Divestitures Narrative [Abstract] | ||
Common stock issued in business combination (Shares) | 2,214 | |
Common stock issued in business combination | $ 230,828 | $ 0 |
Cash consideration paid for acquisition | 146,200 | |
Future Carry Amount | $ 40,000 | |
Disposal Date | Feb. 26, 2016 | |
Net proceeds from asset divestiture | $ 292,000 | |
Pre-tax gain on asset divestiture | $ 110,100 | |
Acquisition Date | Mar. 21, 2016 |
Asset Retirement Obligations (S
Asset Retirement Obligations (Schedule Of Asset Retirement Obligation Transactions) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure Asset Retirement Obligations Schedule Of Asset Retirement Obligation Transactions [Abstract] | ||||
Asset retirement obligations, beginning of period | $ 119,945 | |||
Liabilities incurred from new wells | 1,004 | |||
Liabilities assumed in acquisitions | 902 | |||
Accretion expense | $ 1,745 | $ 2,047 | 3,457 | $ 4,041 |
Disposition of wells | (970) | |||
Liabilities settled upon plugging and abandoning wells | (899) | |||
Asset retirement obligations, end of period | $ 123,439 | $ 123,439 |
Incentive Plans (Summary of Sto
Incentive Plans (Summary of Stock-Based Award Activity) (Detail) - $ / shares | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding | 1,202,594 | 1,199,647 | |
Awards granted | [1] | 427,804 | |
Awards cancelled / forfeited | (46,642) | ||
Lapse of restrictions | (378,215) | ||
Weighted average grant date fair value per share | $ 111.63 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding | 22,125 | 42,901 | |
Options exercised | (20,776) | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding | 467,831 | 315,755 | |
Awards granted | [2] | 161,361 | |
Awards cancelled / forfeited | (9,285) | ||
Lapse of restrictions | 0 | ||
Weighted average grant date fair value per share | $ 114.81 | ||
[1] | Weighted average grant date fair value per share is $111.63 | ||
[2] | Weighted average grant date fair value per share is $114.81 |
Incentive Plans (Summary For Fu
Incentive Plans (Summary For Future Stock-Based Compensation Expense) (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Remaining 2,016 | $ 33,986 |
2,017 | 44,894 |
2,018 | 22,267 |
2,019 | 4,922 |
2,020 | 152 |
Total | $ 106,221 |
Disclosures About Fair Value 45
Disclosures About Fair Value Measurements (Narrative) (Detail) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2023$ / bbl$ / Mcf | Dec. 31, 2016$ / bbl$ / Mcf | |
Disclosure Fair Value Narrative [Abstract] | |||
Management Estimate of Future Oil Price | $ / bbl | 57.77 | 49.54 | |
Management Estimate of Future Natural Gas Price | $ / Mcf | 3.5 | 3.04 | |
Annual discount rate | 10.00% |
Disclosures About Fair Value 46
Disclosures About Fair Value Measurements (Carrying Amounts And Fair Values Of The Company's Financial Instruments) (Detail) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative instruments, Assets | $ 230,779,000 | $ 819,536,000 | |
Derivative instruments, Liabilities | 54,774,000 | 0 | |
Credit facility | 0 | 0 | |
Seven Point Zero Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | 621,720,000 | 595,500,000 | |
Six Point Five Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | 614,280,000 | 579,000,000 | |
Five Point Five Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | 603,000,000 | 553,500,000 | |
Five Point Five Percent Unsecured Senior Notes Due Twenty Twenty Three [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | 1,577,576,105 | 1,453,005,000 | |
Carrying Reported Amount Fair Value Disclosure [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative instruments, Assets | 230,779,000 | 819,536,000 | |
Derivative instruments, Liabilities | 54,774,000 | 0 | |
Carrying Reported Amount Fair Value Disclosure [Member] | Seven Point Zero Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | [1] | 593,048,000 | 592,414,000 |
Carrying Reported Amount Fair Value Disclosure [Member] | Six Point Five Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | [1] | 592,125,000 | 591,549,000 |
Carrying Reported Amount Fair Value Disclosure [Member] | Five Point Five Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | [1] | 593,337,000 | 592,899,000 |
Carrying Reported Amount Fair Value Disclosure [Member] | Five Point Five Percent Unsecured Senior Notes Due Twenty Twenty Three [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | [1] | $ 1,555,022,000 | $ 1,555,326,000 |
[1] | The carrying value includes associated deferred loan costs and any premium. |
Disclosures About Fair Value 47
Disclosures About Fair Value Measurements (Company's Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | $ 230,779 | $ 652,498 |
Noncurrent derivative contracts, assets | 0 | 167,038 |
Current derivative contracts, liabilities | (412) | 0 |
Noncurrent derivative contracts, liabilities | (54,362) | 0 |
Net financial assets (liabilities) | 176,005 | 819,536 |
Estimate Of Fair Value Fair Value Disclosure [Member] | ||
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | 265,181 | 684,029 |
Noncurrent derivative contracts, assets | 12,762 | 175,267 |
Current derivative contracts, liabilities | (34,814) | (31,531) |
Noncurrent derivative contracts, liabilities | (67,124) | (8,229) |
Net financial assets (liabilities) | 176,005 | 819,536 |
Gross Amounts Offset in Consolidated Balance Sheet [Member] | ||
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | (34,402) | (31,531) |
Noncurrent derivative contracts, assets | (12,762) | (8,229) |
Current derivative contracts, liabilities | 34,402 | 31,531 |
Noncurrent derivative contracts, liabilities | 12,762 | 8,229 |
Net financial assets (liabilities) | 0 | 0 |
Fair Value Inputs Level 1 [Member] | ||
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | 0 | 0 |
Noncurrent derivative contracts, assets | 0 | 0 |
Current derivative contracts, liabilities | 0 | 0 |
Noncurrent derivative contracts, liabilities | 0 | 0 |
Net financial assets (liabilities) | 0 | 0 |
Fair Value Inputs Level 2 [Member] | ||
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | 265,181 | 684,029 |
Noncurrent derivative contracts, assets | 12,762 | 175,267 |
Current derivative contracts, liabilities | (34,814) | (31,531) |
Noncurrent derivative contracts, liabilities | (67,124) | (8,229) |
Net financial assets (liabilities) | 176,005 | 819,536 |
Fair Value Inputs Level 3 [Member] | ||
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | 0 | 0 |
Noncurrent derivative contracts, assets | 0 | 0 |
Current derivative contracts, liabilities | 0 | 0 |
Noncurrent derivative contracts, liabilities | 0 | 0 |
Net financial assets (liabilities) | $ 0 | $ 0 |
Disclosures About Fair Value 48
Disclosures About Fair Value Measurements (Carrying Amounts, Estimated Fair Values And Impairment Expense Of Long-Lived Assets For Continuing And Discontinued Operations) (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Disclosure Disclosures About Fair Value Of Financial Instruments Carrying Amounts Estimated Fair Values And Impairment Expense Of Long Lived Assets For Continuing And Discontinued Operations [Abstract] | |
Carrying Amount | $ 3,437,612 |
Estimated Fair Value (Level 3) | 1,912,967 |
Impairment Expense | $ 1,524,645 |
Derivative Financial Instrume49
Derivative Financial Instruments (Gains And Losses Reported In Earnings Related To Commodity Derivative Instruments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Financial Instruments Gains And Losses Reported In Earnings Related To Commodity Derivative Instruments [Line Items] | ||||
Net settlements received from derivatives | $ 168,749 | $ 112,252 | $ 426,679 | $ 279,408 |
Mark-to-market gain (loss) | (296,694) | (147,399) | (216,852) | (32,059) |
Oil Commodity Derivative [Member] | ||||
Derivative Financial Instruments Gains And Losses Reported In Earnings Related To Commodity Derivative Instruments [Line Items] | ||||
Net settlements received from derivatives | 160,968 | 103,129 | 412,095 | 263,315 |
Mark-to-market gain (loss) | (279,805) | (146,549) | (208,665) | (36,269) |
Natural Gas Commodity Derivative [Member] | ||||
Derivative Financial Instruments Gains And Losses Reported In Earnings Related To Commodity Derivative Instruments [Line Items] | ||||
Net settlements received from derivatives | 7,781 | 9,123 | 14,584 | 16,093 |
Mark-to-market gain (loss) | $ (16,889) | $ (850) | $ (8,187) | $ 4,210 |
Derivative Financial Instrume50
Derivative Financial Instruments (Outstanding Commodity Derivative Contracts) (Detail) - Minimum [Member] | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018bbl$ / bbl | Sep. 30, 2018bbl$ / bbl | Jun. 30, 2018bbl$ / bbl | Mar. 31, 2018bbl$ / bbl | Dec. 31, 2017MMBTUbbl$ / bbl$ / MMBTU | Sep. 30, 2017MMBTUbbl$ / bbl$ / MMBTU | Jun. 30, 2017MMBTUbbl$ / bbl$ / MMBTU | Mar. 31, 2017MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2016MMBTUbbl$ / bbl$ / MMBTU | Sep. 30, 2016MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2018bbl$ / bbl | Dec. 31, 2017MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2016MMBTUbbl$ / bbl$ / MMBTU | ||
Oil Swaps [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Current Year | bbl | [1] | 5,054,000 | 5,460,000 | 10,514,000 | ||||||||||
Price per Bbl/MMBtu - Current Year | $ / bbl | [1] | 59.38 | 74.21 | 67.08 | ||||||||||
Volume (Bbl/MMBtu) - Year One | bbl | [1] | 4,337,000 | 4,592,000 | 4,903,000 | 5,278,000 | 19,110,000 | ||||||||
Price per Bbl/MMBtu - Year One | $ / bbl | [1] | 51.33 | 51.04 | 59.35 | 58.73 | 55.36 | ||||||||
Volume (Bbl/MMBtu) - Year Two | bbl | [1] | 1,920,000 | 1,920,000 | 1,920,000 | 1,920,000 | 7,680,000 | ||||||||
Price per Bbl/MMBtu - Year Two | $ / bbl | [1] | 48.73 | 48.73 | 48.73 | 48.73 | 48.73 | ||||||||
Oil Basis Swaps [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Current Year | bbl | [2] | 5,060,000 | 5,520,000 | 10,580,000 | ||||||||||
Price per Bbl/MMBtu - Current Year | $ / bbl | [2] | (1.48) | (1.46) | (1.47) | ||||||||||
Volume (Bbl/MMBtu) - Year One | bbl | [2] | 3,496,000 | 3,496,000 | 4,519,000 | 4,590,000 | 16,101,000 | ||||||||
Price per Bbl/MMBtu - Year One | $ / bbl | [2] | (0.43) | (0.43) | (1.18) | (1.16) | (0.85) | ||||||||
Natural Gas Swap [Member] | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Current Year | MMBTU | [3] | 7,360,000 | 7,360,000 | 14,720,000 | ||||||||||
Price per Bbl/MMBtu - Current Year | $ / MMBTU | [3] | 3.02 | 3.02 | 3.02 | ||||||||||
Volume (Bbl/MMBtu) - Year One | MMBTU | [3] | 9,660,000 | 9,660,000 | 10,465,000 | 10,350,000 | 40,135,000 | ||||||||
Price per Bbl/MMBtu - Year One | $ / MMBTU | [3] | 3 | 3 | 3 | 3 | 3 | ||||||||
[1] | The index prices for the oil price swaps are based on the New York Mercantile Exchange (“NYMEX”) – West Texas Intermediate (“WTI”) monthly average futures price. | |||||||||||||
[2] | The basis differential price is between Midland – WTI and Cushing – WTI. | |||||||||||||
[3] | The index prices for the natural gas price swaps are based on the NYMEX – Henry Hub last trading day futures price. |
Derivative Counterparties (Deta
Derivative Counterparties (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Derivative Counterparties Fair Value [Line Items] | ||
Net financial assets (liabilities) | $ 176,005 | $ 819,536 |
JP Morgan Chase Bank [Member] | ||
Derivative Counterparties Fair Value [Line Items] | ||
Credit Risk Derivative Assets At Fair Value | 26,900 | |
Wells Fargo Bank NA [Member] | ||
Derivative Counterparties Fair Value [Line Items] | ||
Credit Risk Derivative Assets At Fair Value | 21,000 | |
Barclays Bank PLC [Member] | ||
Derivative Counterparties Fair Value [Line Items] | ||
Credit Risk Derivative Assets At Fair Value | 40,300 | |
Societe Generale [Member] | ||
Derivative Counterparties Fair Value [Line Items] | ||
Credit Risk Derivative Assets At Fair Value | $ 19,700 |
Debt (Summary Of Long-Term Debt
Debt (Summary Of Long-Term Debt) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Credit facility | $ 0 | $ 0 |
Unamortized original issue premium | 23,642 | 25,073 |
Senior notes issuance costs, net | (40,110) | (42,885) |
Less: current portion | 0 | 0 |
Total long-term debt | 3,333,532 | 3,332,188 |
7.0% unsecured senior notes due 2021 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 600,000 | 600,000 |
6.5% unsecured senior notes due 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 600,000 | 600,000 |
5.5% unsecured senior notes due 2022 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 600,000 | 600,000 |
5.5% unsecured senior notes due 2023 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | $ 1,550,000 | $ 1,550,000 |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Debt Disclosure [Line Items] | |
Line of credit maturity date | May 9, 2019 |
Aggregate lender commitments | $ 2,500 |
Aggregate maximum borrowing base | $ 2,800 |
Debt (Principal Maturities Of D
Debt (Principal Maturities Of Debt) (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Disclosure Debt Principal Maturities Of Debt [Abstract] | |
Remaining 2,016 | $ 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 600,000 |
Thereafter | 2,750,000 |
Total | $ 3,350,000 |
Debt (Summary Of Interest Expen
Debt (Summary Of Interest Expense) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure Debt Summary Of Interest Expense [Abstract] | ||||
Cash payments for interest | $ (63,017) | $ (59,225) | $ (105,507) | $ (105,232) |
Amortization of original issue premium | (720) | (681) | (1,431) | (1,355) |
Amortization of deferred loan origination costs | 2,567 | 2,482 | 5,113 | 4,945 |
Accretion expense | 485 | 0 | 971 | 0 |
Net changes in accruals | (10,847) | (6,365) | (1,268) | 618 |
Interest costs incurred | 54,502 | 54,661 | 108,892 | 109,440 |
Less: capitalized interest | 0 | (1,179) | (252) | (2,389) |
Total interest expense | $ 54,502 | $ 53,482 | $ 108,640 | $ 107,051 |
Commitments And Contingencies56
Commitments And Contingencies (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Commitments [Line Items] | |||||
Operating leases, lease payments | $ 2.1 | $ 1.9 | $ 4.2 | $ 3.8 | |
Accrued Exposure | $ 13.8 | $ 13.8 | $ 13.4 |
Commitments And Contingencies57
Commitments And Contingencies (Future Commitments) (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Disclosure Commitments And Contingencies Future Commitments [Abstract] | |
Remaining 2,016 | $ 29,573 |
2,017 | 24,186 |
2,018 | 63,057 |
2,019 | 17,294 |
2,020 | 11,797 |
2,021 | 7,317 |
Thereafter | 37,921 |
Total | $ 191,145 |
Commitments And Contingencies58
Commitments And Contingencies (Future Minimum Lease Commitments Under Non-Cancellable Operating Leases) (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Disclosure Commitments And Contingencies Future Minimum Lease Commitments Under Non Cancellable Operating Leases [Abstract] | |
Remaining 2,016 | $ 4,231 |
2,017 | 8,458 |
2,018 | 7,637 |
2,019 | 6,169 |
2,020 | 4,866 |
2,021 | 4,147 |
Thereafter | 994 |
Total | $ 36,502 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure Income Taxes Narrative [Abstract] | ||||
Effective tax rate | 37.30% | 37.00% | 36.90% | 37.10% |
Related Party Transactions (Sch
Related Party Transactions (Schedule Of Related Party Transactions) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Related Party Transaction [Line Items] | |||||
Ownership interest in partnership | 3.50% | ||||
Partnership (Director Ownership Interest) [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts paid | [1] | $ 999 | $ 1,403 | $ 2,144 | $ 3,097 |
Director and Certain Officers [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts paid | [2] | 75 | 32 | 235 | 555 |
Amounts received | [3] | $ 4 | $ 52 | $ 20 | $ 67 |
[1] | Amounts include royalties on certain properties paid to a partnership in which a director of the Company is the general partner and owns a 3.5 percent partnership interest. | ||||
[2] | Amounts include revenue interests, overriding royalty interests and net profits interests in properties owned by the Company made to a director and certain officers (or affiliated entities). Amounts also include payments for lease bonuses to an affiliated entity of an officer. | ||||
[3] | Amounts include payments to the Company as a result of activity on oil and natural gas properties in which certain officers (or affiliated entities) have an interest. |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Detail) | 3 Months Ended |
Jun. 30, 2016 | |
Disclosure Net Income Per Share Narrative [Abstract] | |
Performance unit awards vesting period | 36 months |
Maximum Payout Value on Performance Units | 300.00% |
Minimum Payout Value on Performance Units | 0.00% |
Net Income Per Share (Reconcili
Net Income Per Share (Reconciliation Of Earnings Attributable To Common Shares Basic And Diluted) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Net loss | $ (265,685) | $ (120,483) | $ (1,286,165) | $ (112,971) | |
Participating basic earnings | [1] | 0 | 0 | 0 | 0 |
Basic net income (loss) attributable to common stockholders | (265,685) | (120,483) | (1,286,165) | (112,971) | |
Reallocation of participating earnings | 0 | 0 | 0 | 0 | |
Diluted net income (loss) attributable to common stockholders | $ (265,685) | $ (120,483) | $ (1,286,165) | $ (112,971) | |
Basic net loss | $ (2.04) | $ (1.02) | $ (9.94) | $ (0.97) | |
Diluted net loss | $ (2.04) | $ (1.02) | $ (9.94) | $ (0.97) | |
[1] | Unvested restricted stock awards represent participating securities because they participate in nonforfeitable dividends or distributions with the common equity holders of the Company. Participating earnings represent the distributed earnings of the Company attributable to the participating securities. Unvested restricted stock awards do not participate in undistributed net losses as they are not contractually obligated to do so. |
Net Income Per Share (Reconci63
Net Income Per Share (Reconciliation Of The Weighted Average Common Shares Outstanding) (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation Of Basic Weighted Average Common Shares Outstanding To Diluted Weighted Average Common Shares Outstanding [Line Items] | ||||
Basic | 130,400 | 117,637 | 129,398 | 116,502 |
Diluted | 130,400 | 117,637 | 129,398 | 116,502 |
Stock Options [Member] | ||||
Reconciliation Of Basic Weighted Average Common Shares Outstanding To Diluted Weighted Average Common Shares Outstanding [Line Items] | ||||
Dilutive shares | 0 | 0 | 0 | 0 |
Performance Shares [Member] | ||||
Reconciliation Of Basic Weighted Average Common Shares Outstanding To Diluted Weighted Average Common Shares Outstanding [Line Items] | ||||
Dilutive shares | 0 | 0 | 0 | 0 |
Subsidiary Guarantors (Condense
Subsidiary Guarantors (Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Accounts receivable - related parties | $ 0 | $ 0 |
Other current assets | 1,111,990 | 1,314,550 |
Oil and natural gas properties, net | 9,382,478 | 10,798,497 |
Property and equipment, net | 183,966 | 178,450 |
Investment in subsidiaries | 0 | 0 |
Other long-term assets | 223,183 | 350,379 |
Total assets | 10,901,617 | 12,641,876 |
LIABILITIES AND EQUITY | ||
Accounts payable - related parties | 0 | 0 |
Other current liabilities | 575,590 | 596,420 |
Long-term debt | 3,333,532 | 3,332,188 |
Other long-term liabilities | 1,088,789 | 1,770,717 |
Equity | 5,903,706 | 6,942,551 |
Total liabilities and stockholders' equity | 10,901,617 | 12,641,876 |
Consolidation Eliminations [Member] | ||
ASSETS | ||
Accounts receivable - related parties | (9,752,757) | (9,664,396) |
Other current assets | 0 | 0 |
Oil and natural gas properties, net | 0 | 0 |
Property and equipment, net | 0 | 0 |
Investment in subsidiaries | (1,985,134) | (3,698,485) |
Other long-term assets | 0 | 0 |
Total assets | (11,737,891) | (13,362,881) |
LIABILITIES AND EQUITY | ||
Accounts payable - related parties | (9,752,757) | (9,664,396) |
Other current liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Equity | (1,985,134) | (3,698,485) |
Total liabilities and stockholders' equity | (11,737,891) | (13,362,881) |
Parent Company [Member] | ||
ASSETS | ||
Accounts receivable - related parties | 8,853,785 | 8,502,099 |
Other current assets | 284,704 | 753,716 |
Oil and natural gas properties, net | 0 | 0 |
Property and equipment, net | 0 | 0 |
Investment in subsidiaries | 1,985,134 | 3,698,485 |
Other long-term assets | 25,418 | 182,623 |
Total assets | 11,149,041 | 13,136,923 |
LIABILITIES AND EQUITY | ||
Accounts payable - related parties | 898,972 | 1,162,297 |
Other current liabilities | 68,145 | 69,514 |
Long-term debt | 3,333,532 | 3,332,188 |
Other long-term liabilities | 944,686 | 1,630,373 |
Equity | 5,903,706 | 6,942,551 |
Total liabilities and stockholders' equity | 11,149,041 | 13,136,923 |
Guarantor Subsidiaries [Member] | ||
ASSETS | ||
Accounts receivable - related parties | 898,972 | 1,162,297 |
Other current assets | 827,286 | 560,834 |
Oil and natural gas properties, net | 9,382,478 | 10,798,497 |
Property and equipment, net | 183,966 | 178,450 |
Investment in subsidiaries | 0 | 0 |
Other long-term assets | 197,765 | 167,756 |
Total assets | 11,490,467 | 12,867,834 |
LIABILITIES AND EQUITY | ||
Accounts payable - related parties | 8,853,785 | 8,502,099 |
Other current liabilities | 507,445 | 526,906 |
Long-term debt | 0 | 0 |
Other long-term liabilities | 144,103 | 140,344 |
Equity | 1,985,134 | 3,698,485 |
Total liabilities and stockholders' equity | $ 11,490,467 | $ 12,867,834 |
Subsidiary Guarantors (Conden65
Subsidiary Guarantors (Condensed Consolidating Statement Of Operations) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Financial Statements Captions [Line Items] | ||||
Total operating revenues | $ 396,299 | $ 537,425 | $ 679,863 | $ 950,947 |
Total operating costs and expenses | (765,397) | (671,037) | (2,602,540) | (1,015,026) |
Loss from operations | (369,098) | (133,612) | (1,922,677) | (64,079) |
Interest expense | (54,502) | (53,482) | (108,640) | (107,051) |
Other, net | (334) | (4,097) | (6,869) | (8,399) |
Loss before income taxes | (423,934) | (191,191) | (2,038,186) | (179,529) |
Income tax benefit | 158,249 | 70,708 | 752,021 | 66,558 |
Net loss | (265,685) | (120,483) | (1,286,165) | (112,971) |
Consolidation Eliminations [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Total operating revenues | 0 | 0 | 0 | 0 |
Total operating costs and expenses | 0 | 0 | 0 | 0 |
Loss from operations | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other, net | 73,074 | (10,330) | 1,713,351 | 39,043 |
Loss before income taxes | 73,074 | (10,330) | 1,713,351 | 39,043 |
Income tax benefit | 0 | 0 | 0 | 0 |
Net loss | 73,074 | (10,330) | 1,713,351 | 39,043 |
Parent Company [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Total operating revenues | 0 | 0 | 0 | 0 |
Total operating costs and expenses | (297,205) | (148,039) | (217,889) | (33,435) |
Loss from operations | (297,205) | (148,039) | (217,889) | (33,435) |
Interest expense | (53,655) | (53,482) | (106,946) | (107,051) |
Other, net | (73,074) | 10,330 | (1,713,351) | (39,043) |
Loss before income taxes | (423,934) | (191,191) | (2,038,186) | (179,529) |
Income tax benefit | 158,249 | 70,708 | 752,021 | 66,558 |
Net loss | (265,685) | (120,483) | (1,286,165) | (112,971) |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Total operating revenues | 396,299 | 537,425 | 679,863 | 950,947 |
Total operating costs and expenses | (468,192) | (522,998) | (2,384,651) | (981,591) |
Loss from operations | (71,893) | 14,427 | (1,704,788) | (30,644) |
Interest expense | (847) | 0 | (1,694) | 0 |
Other, net | (334) | (4,097) | (6,869) | (8,399) |
Loss before income taxes | (73,074) | 10,330 | (1,713,351) | (39,043) |
Income tax benefit | 0 | 0 | 0 | 0 |
Net loss | $ (73,074) | $ 10,330 | $ (1,713,351) | $ (39,043) |
Subsidiary Guarantors (Conden66
Subsidiary Guarantors (Condensed Consolidating Statement Of Cash Flows) (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows provided by (used in) operating activities | $ 249,825 | $ 488,934 |
Net cash flows provided by (used in) investing activities | 14,836 | (1,284,189) |
Net cash flows provided by (used in) financing activities | (11,981) | 795,514 |
Net increase (decrease) in cash and cash equivalents | 252,680 | 259 |
Cash and cash equivalents at beginning of period | 228,550 | 21 |
Cash and cash equivalents at end of period | 481,230 | 280 |
Consolidation Eliminations [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows provided by (used in) operating activities | 0 | 0 |
Net cash flows provided by (used in) investing activities | 0 | 0 |
Net cash flows provided by (used in) financing activities | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent Company [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows provided by (used in) operating activities | (414,698) | (1,085,293) |
Net cash flows provided by (used in) investing activities | 426,679 | 279,408 |
Net cash flows provided by (used in) financing activities | (11,981) | 805,885 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows provided by (used in) operating activities | 664,523 | 1,574,227 |
Net cash flows provided by (used in) investing activities | (411,843) | (1,563,597) |
Net cash flows provided by (used in) financing activities | 0 | (10,371) |
Net increase (decrease) in cash and cash equivalents | 252,680 | 259 |
Cash and cash equivalents at beginning of period | 228,550 | 21 |
Cash and cash equivalents at end of period | $ 481,230 | $ 280 |
Subsequent Events (New Commodit
Subsequent Events (New Commodity Derivative Contracts) (Detail) - Minimum [Member] | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018bbl$ / bbl | Sep. 30, 2018bbl$ / bbl | Jun. 30, 2018bbl$ / bbl | Mar. 31, 2018bbl$ / bbl | Dec. 31, 2017MMBTUbbl$ / bbl$ / MMBTU | Sep. 30, 2017MMBTUbbl$ / bbl$ / MMBTU | Jun. 30, 2017MMBTUbbl$ / bbl$ / MMBTU | Mar. 31, 2017MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2016MMBTUbbl$ / bbl$ / MMBTU | Sep. 30, 2016MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2018bbl$ / bbl | Dec. 31, 2017MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2016MMBTUbbl$ / bbl$ / MMBTU | ||
Oil Swaps [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Current Year | bbl | [1] | 5,054,000 | 5,460,000 | 10,514,000 | ||||||||||
Price per Bbl/MMBtu - Current Year | $ / bbl | [1] | 59.38 | 74.21 | 67.08 | ||||||||||
Volume (Bbl/MMBtu) - Year One | bbl | [1] | 4,337,000 | 4,592,000 | 4,903,000 | 5,278,000 | 19,110,000 | ||||||||
Price per Bbl/MMBtu - Year One | $ / bbl | [1] | 51.33 | 51.04 | 59.35 | 58.73 | 55.36 | ||||||||
Volume (Bbl/MMBtu) - Year Two | bbl | [1] | 1,920,000 | 1,920,000 | 1,920,000 | 1,920,000 | 7,680,000 | ||||||||
Price per Bbl/MMBtu - Year Two | $ / bbl | [1] | 48.73 | 48.73 | 48.73 | 48.73 | 48.73 | ||||||||
Oil Basis Swaps [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Current Year | bbl | [2] | 5,060,000 | 5,520,000 | 10,580,000 | ||||||||||
Price per Bbl/MMBtu - Current Year | $ / bbl | [2] | (1.48) | (1.46) | (1.47) | ||||||||||
Volume (Bbl/MMBtu) - Year One | bbl | [2] | 3,496,000 | 3,496,000 | 4,519,000 | 4,590,000 | 16,101,000 | ||||||||
Price per Bbl/MMBtu - Year One | $ / bbl | [2] | (0.43) | (0.43) | (1.18) | (1.16) | (0.85) | ||||||||
Natural Gas Swap [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Current Year | MMBTU | [3] | 7,360,000 | 7,360,000 | 14,720,000 | ||||||||||
Price per Bbl/MMBtu - Current Year | $ / MMBTU | [3] | 3.02 | 3.02 | 3.02 | ||||||||||
Volume (Bbl/MMBtu) - Year One | MMBTU | [3] | 9,660,000 | 9,660,000 | 10,465,000 | 10,350,000 | 40,135,000 | ||||||||
Price per Bbl/MMBtu - Year One | $ / MMBTU | [3] | 3 | 3 | 3 | 3 | 3 | ||||||||
Subsequent Event [Member] | Oil Swaps [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Year Two | bbl | [1] | 390,000 | 390,000 | 390,000 | 390,000 | 1,560,000 | ||||||||
Price per Bbl/MMBtu - Year Two | $ / bbl | [1] | 49.24 | 49.24 | 49.24 | 49.24 | 49.24 | ||||||||
Subsequent Event [Member] | Oil Basis Swaps [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Year One | bbl | [2] | 368,000 | 368,000 | 364,000 | 360,000 | 1,460,000 | ||||||||
Price per Bbl/MMBtu - Year One | $ / bbl | [2] | (0.5) | (0.5) | (0.5) | (0.5) | (0.5) | ||||||||
Subsequent Event [Member] | Natural Gas Swap [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Volume (Bbl/MMBtu) - Year One | MMBTU | [3] | 920,000 | 1,110,441 | 1,066,642 | 1,985,315 | 5,082,398 | ||||||||
Price per Bbl/MMBtu - Year One | $ / MMBTU | [3] | 3.14 | 3.16 | 3.16 | 3.21 | 3.18 | ||||||||
[1] | The index prices for the oil price swaps are based on the New York Mercantile Exchange (“NYMEX”) – West Texas Intermediate (“WTI”) monthly average futures price. | |||||||||||||
[2] | The basis differential price is between Midland – WTI and Cushing – WTI. | |||||||||||||
[3] | The index prices for the natural gas price swaps are based on the NYMEX – Henry Hub last trading day futures price. |
Supplementary Information (Capi
Supplementary Information (Capitalized Costs) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Disclosure Supplementary Information Capitalized Costs [Abstract] | ||
Proved | $ 15,559,042 | $ 14,940,259 |
Unproved | 931,288 | 906,048 |
Accumulated depletion and depreciation | (7,107,852) | (5,047,810) |
Net capitalized costs for oil and natural gas properties | $ 9,382,478 | $ 10,798,497 |
Supplementary Information (Cost
Supplementary Information (Costs Incurred For Oil And Natural Gas Producing Activities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure Supplementary Information Costs Incurred For Oil And Natural Gas Producing Activities [Abstract] | ||||
Proved | $ 3,757 | $ 2,243 | $ 256,109 | $ 2,243 |
Unproved | 18,767 | 18,037 | 157,407 | 34,050 |
Exploration | 165,850 | 343,051 | 336,422 | 772,220 |
Development | 107,039 | 221,410 | 190,143 | 523,154 |
Total costs incurred for oil and natural gas properties | $ 295,413 | $ 584,741 | $ 940,081 | $ 1,331,667 |
Supplementary Information (Asse
Supplementary Information (Asset Retirement Obligations For Oil and Natural Gas Producing Activities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure Supplementary Information Asset Retirement Obligations For Oil And Natural Gas Producing Activities [Abstract] | ||||
Exploration costs | $ 352 | $ 737 | $ 583 | $ 1,355 |
Development costs | 192 | 573 | 421 | 1,508 |
Total | $ 544 | $ 1,310 | $ 1,004 | $ 2,863 |