Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
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 | 146,050,840 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,158,939 | $ 228,550 |
Accounts receivable, net of allowance for doubtful accounts: | ||
Oil and natural gas | 202,865 | 203,972 |
Joint operations and other | 207,351 | 190,608 |
Derivative instruments | 119,175 | 652,498 |
Prepaid costs and other | 30,480 | 38,922 |
Total current assets | 1,718,810 | 1,314,550 |
Property and equipment: | ||
Oil and natural gas properties, successful efforts method | 16,769,269 | 15,846,307 |
Accumulated depletion and depreciation | (7,403,505) | (5,047,810) |
Total oil and natural gas properties, net | 9,365,764 | 10,798,497 |
Other property and equipment, net | 181,267 | 178,450 |
Total property and equipment, net | 9,547,031 | 10,976,947 |
Funds held in escrow | 81,250 | 0 |
Deferred loan costs, net | 12,078 | 15,585 |
Intangible asset - operating rights, net | 24,597 | 25,693 |
Inventory | 16,905 | 19,118 |
Noncurrent derivative instruments | 0 | 167,038 |
Other assets | 169,963 | 122,945 |
Total assets | 11,570,634 | 12,641,876 |
Accounts payable: | ||
Trade | 22,398 | 13,200 |
Related parties | 0 | 0 |
Revenue payable | 111,444 | 169,787 |
Accrued and prepaid drilling costs | 326,184 | 228,523 |
Derivative instruments | 3,508 | 0 |
Other current liabilities | 109,114 | 184,910 |
Total current liabilities | 572,648 | 596,420 |
Long-term debt | 2,740,847 | 3,332,188 |
Deferred income taxes | 862,766 | 1,630,373 |
Noncurrent derivative instruments | 53,840 | 0 |
Asset retirement obligations and other long-term liabilities | 145,950 | 140,344 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value; 300,000,000 authorized; 142,562,011 and 129,444,042 shares issued at September 30, 2016 and December 31, 2015, respectively | 143 | 129 |
Additional paid-in capital | 6,229,586 | 4,628,390 |
Retained earnings | 1,008,330 | 2,345,641 |
Treasury stock, at cost; 429,084 and 306,061 shares at September 30, 2016 and December 31, 2015, respectively | (43,476) | (31,609) |
Total stockholders' equity | 7,194,583 | 6,942,551 |
Total liabilities and stockholders' equity | $ 11,570,634 | $ 12,641,876 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 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 | 142,562,011 | 129,444,042 |
Treasury shares | 429,084 | 306,061 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating revenues: | ||||
Oil sales | $ 348,096 | $ 391,963 | $ 929,383 | $ 1,212,437 |
Natural gas sales | 82,452 | 71,511 | 181,028 | 201,984 |
Total operating revenues | 430,548 | 463,474 | 1,110,411 | 1,414,421 |
Operating costs and expenses: | ||||
Oil and natural gas production | 103,575 | 138,125 | 328,756 | 405,925 |
Exploration and abandonments | 10,344 | 14,791 | 54,478 | 32,566 |
Depreciation, depletion and amortization | 299,209 | 329,467 | 890,257 | 901,474 |
Accretion of discount on asset retirement obligations | 1,769 | 1,853 | 5,226 | 5,894 |
Impairments of long-lived assets | 0 | 7,588 | 1,524,645 | 7,588 |
General and administrative (including non-cash stock-based compensation of $14,728 and $16,327 for the three months ended September 30, 2016 and 2015, respectively, and $43,201 and $47,272 for the nine months ended September 30, 2016 and 2015, respectively) | 53,505 | 60,052 | 160,657 | 179,776 |
(Gain) loss on derivatives | (41,186) | (413,130) | 175,666 | (381,071) |
(Gain) loss on disposition of assets, net | 755 | (32) | (109,174) | 1,588 |
Total operating costs and expenses | 427,971 | 138,714 | 3,030,511 | 1,153,740 |
Income (loss) from operations | 2,577 | 324,760 | (1,920,100) | 260,681 |
Other income (expense): | ||||
Interest expense | (52,994) | (53,752) | (161,634) | (160,803) |
Loss on extinguishment of debt | (27,670) | 0 | (27,670) | 0 |
Other, net | (3,433) | 524 | (10,302) | (7,875) |
Total other expense | (84,097) | (53,228) | (199,606) | (168,678) |
Income (loss) before income taxes | (81,520) | 271,532 | (2,119,706) | 92,003 |
Income tax (expense) benefit | 30,374 | (91,873) | 782,395 | (25,315) |
Net income (loss) | $ (51,146) | $ 179,659 | $ (1,337,311) | $ 66,688 |
Earnings per share: | ||||
Basic net income (loss) | $ (0.38) | $ 1.49 | $ (10.18) | $ 0.56 |
Diluted net income (loss) | $ (0.38) | $ 1.49 | $ (10.18) | $ 0.56 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Non-cash stock-based compensation | $ 14,728 | $ 16,327 | $ 43,201 | $ 47,272 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders Equity - 9 months ended Sep. 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 income (loss) | $ (1,337,311) | $ 0 | 0 | (1,337,311) | $ 0 |
Issuance of common stock (Shares) | 10,350 | 10,350 | 0 | ||
Issuance of common stock | $ 1,327,444 | $ 10 | 1,327,434 | 0 | $ 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 | 425 | $ 2 | 423 | 0 | $ 0 |
Stock options exercised, shares | 21 | 0 | |||
Grants of restricted stock, shares | 430 | 0 | |||
Performance unit share conversion, shares | 180 | 0 | |||
Cancellation of restricted stock, shares | (77) | 0 | |||
Stock-based compensation | 43,201 | $ 0 | 43,201 | 0 | $ 0 |
Tax deficiency related to stock-based compensation | (688) | 0 | (688) | 0 | 0 |
Purchase of treasury stock | (11,867) | $ 0 | 0 | 0 | $ (11,867) |
Purchase of treasury stock, shares | 0 | 123 | |||
BALANCE at Sep. 30, 2016 | $ 7,194,583 | $ 143 | $ 6,229,586 | $ 1,008,330 | $ (43,476) |
BALANCE, Shares at Sep. 30, 2016 | 142,562 | 429 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (1,337,311) | $ 66,688 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation, depletion and amortization | 890,257 | 901,474 |
Accretion of discount on asset retirement obligations | 5,226 | 5,894 |
Impairments of long-lived assets | 1,524,645 | 7,588 |
Exploration and abandonments, including dry holes | 46,643 | 25,859 |
Non-cash stock-based compensation expense | 43,201 | 47,272 |
Deferred income taxes | (767,607) | 6,565 |
(Gain) loss on disposition of assets, net | (109,174) | 1,588 |
(Gain) loss on derivatives | 175,666 | (381,071) |
Loss on extinguishment of debt | 27,670 | 0 |
Other non-cash items | 10,928 | 8,074 |
Changes in operating assets and liabilities, net of acquisitions and dispositions: | ||
Accounts receivable | 60,977 | 111,475 |
Prepaid costs and other | 7,347 | (3,049) |
Inventory | 1,641 | (7,236) |
Accounts payable | 9,254 | 4,089 |
Revenue payable | (56,740) | (52,366) |
Other current liabilities | (95,322) | 17,749 |
Net cash provided by (used in) operating activities | 437,301 | 760,593 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures on oil and natural gas properties | (926,922) | (2,177,144) |
Additions to property, equipment and other assets | (20,688) | (45,231) |
Proceeds from the disposition of assets | 296,341 | 106 |
Funds held in escrow | (81,250) | 0 |
Contributions to equity method investments | (50,750) | (45,000) |
Net settlements received from (paid on) derivatives | 582,043 | 443,441 |
Net cash provided by (used in) investing activities | (201,226) | (1,823,828) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of debt | 0 | 1,337,900 |
Payments of debt | (600,000) | (1,030,900) |
Call premium on extinguishment of debt | (21,000) | 0 |
Exercise of stock options | 425 | 59 |
Excess tax benefit (deficiency) from stock-based compensation | (688) | 2,429 |
Net proceeds from issuance of common stock | 1,327,444 | 741,509 |
Purchase of treasury stock | (11,867) | (4,963) |
Increase (decrease) in bank overdrafts | 0 | 17,200 |
Net cash provided by (used in) financing activities | 694,314 | 1,063,234 |
Net increase (decrease) in cash and cash equivalents | 930,389 | (1) |
Cash and cash equivalents at beginning of period | 228,550 | 21 |
Cash and cash equivalents at end of period | 1,158,939 | 20 |
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 | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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 im pact on net income ( 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 America requir es 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 expenses during the reporting periods. Actual results could differ from these estimates. Depletion of oil and natural gas properties is determined using estimates of proved oil and natural gas reserves. There are numerous uncertainties inherent in the estimation of quant ities 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 uncertainties inclu ding, 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, fair value o f 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 $ 128.5 million and $ 98.9 million at September 30, 2016 and December 31, 2015 , respectively, and is included in other assets in the Company’s consolidated balance sheets. The equity loss is included in other expense in the Company’s consolidated statements of operations and was approximately $ 0.4 million and $ 1.0 million for the three months ended September 30, 2016 and 2015 , respectively, and approximately $ 2.3 million and $ 2.7 million for the nine months ended September 30, 2016 and 2015 , respectively . During the three and nine months ended September 30, 2015 , the Company recorded $ 1.0 mil lion and $ 2.5 million , respectively, 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 initial system is ope rational and substantially complete, and is expected to be fully 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 approximate ly $ 37.1 million and $ 20.8 million at September 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 three and nine months ended September 30, 2016 was approximately $ 0.2 million and $ 2.5 million , respectively, 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. 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 does not plan on early adopting this standard. Once adopted, the Com pany expects increased volatility in earnings and in the effective tax rate due to the excess tax benefits and deficiencies being recognized in the statement of operations. |
Exploratory well costs
Exploratory well costs | 9 Months Ended |
Sep. 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 economic and operating viability of the project. The capitalized explo ratory well costs are carried in unproved oil and natural gas properties. See Note 17 for the proved and unproved components of oil and natural gas properties. If the exploratory well is determined to be impaired, the well costs are charged to expl oration and abandonments expense in the consolidated statements of operations. The following table reflects the Company’s net capitalized exploratory well activity during the nine months ended September 30, 2016 : Nine Months Ended (in thousands) September 30, 2016 Beginning capitalized exploratory well costs $ 116,198 Additions to exploratory well costs pending the determination of proved reserves 142,428 Reclassifications due to determination of proved reserves (86,192) Exploratory well costs charged to expense (5,707) Disposition of wells (17,339) Ending capitalized exploratory well costs $ 149,388 The following table provides an aging at September 30, 2016 and December 31, 2015 of capitalized exploratory well costs based on the date drilling was completed: September 30, December 31, (dollars in thousands) 2016 2015 Capitalized exploratory well costs that have been capitalized for a period of one year or less $ 140,966 $ 98,764 Capitalized exploratory well costs that have been capitalized for a period greater than one year 8,422 17,434 Total capitalized exploratory well costs $ 149,388 $ 116,198 Number of projects with exploratory well costs that have been capitalized for a period greater than one year 7 8 Projects operated by others. At September 30, 2016 , the Company had approximately $ 1.9 million of suspended well costs greater than one year recorded for five wells that are operated by others and waiting on completion. Three of these wells completed drilling in 2014 and the remaining two wells completed drilling in 201 5 . Delaware Basin project. At September 30, 2016 , the Company had approximately $4.8 million of suspended well costs greater than one year recorded for a well drilled in 2015. The Company expects to complete this well in 2017. Midland Basin project . At September 30, 2016 , the Company had approximately $ 1 . 7 million of suspended well costs greater than one year recorded for a well drilled in 2015. Currently, the Company is evaluating the well’s potential capacity to monitor nearby horizontal wells. The Company expects to complete this well in 2017. |
Acquisitions and divestitures
Acquisitions and divestitures | 9 Months Ended |
Sep. 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 issued to the seller approximately 2.2 million shares of common stock with an approximate value of $230.8 million, $145.7 million in cash and $40.0 million to carry a portion of the seller’s future d evelopment costs in these properties. Asset divestiture. In February 2016, the Company sold certain assets in the northern Delaware Basin for proceeds of approximately $292.0 million and recognized a pre-tax gain of approximately $110.1 million. |
Asset retirement obligations
Asset retirement obligations | 9 Months Ended |
Sep. 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 nine months ended September 30, 2016 : Nine Months Ended (in thousands) September 30, 2016 Asset retirement obligations, beginning of period $ 119,945 Liabilities incurred from new wells 1,474 Liabilities assumed in acquisitions 902 Accretion expense 5,226 Disposition of wells (970) Liabilities settled upon plugging and abandoning wells (1,343) Asset retirement obligations, end of period $ 125,234 |
Incentive plans
Incentive plans | 9 Months Ended |
Sep. 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 nine months ended September 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) 429,744 - 161,361 Options exercised - (20,776) - Awards cancelled / forfeited (76,645) - (9,285) Lapse of restrictions (394,704) - - Outstanding at September 30, 2016 1,158,042 22,125 467,831 (a) Weighted average grant date fair value per share $ 111.70 $ - $ 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 September 30, 2016 : (in thousands) Remaining 2016 $ 16,600 2017 44,414 2018 22,059 2019 4,882 2020 158 Total $ 88,113 |
Disclosures about fair value me
Disclosures about fair value measurements | 9 Months Ended |
Sep. 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 requir e 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 consider various input s 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 September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Carrying Fair Carrying Fair (in thousands) Value Value Value Value Assets: Derivative instruments $ 119,175 $ 119,175 $ 819,536 $ 819,536 Liabilities: Derivative instruments $ 57,348 $ 57,348 $ - $ - $600 million 7.0% senior notes due 2021 (a) $ - $ - $ 592,414 $ 595,500 $600 million 6.5% senior notes due 2022 (a) $ 592,420 $ 622,500 $ 591,549 $ 579,000 $600 million 5.5% senior notes due 2022 (a) $ 593,560 $ 619,500 $ 592,899 $ 553,500 $1,550 million 5.5% senior notes due 2023 (a) $ 1,554,867 $ 1,624,033 $ 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 September 30, 2016 and December 31, 2015 . The Company nets the fair value of derivative instruments by counterparty in the Company’s consolidated balance sheets. September 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 $ - $ 154,620 $ - $ 154,620 $ (35,445) $ 119,175 Noncurrent: Commodity derivatives - 8,659 - 8,659 (8,659) - Liabilities: Current: Commodity derivatives - (38,953) - (38,953) 35,445 (3,508) Noncurrent: Commodity derivatives - (62,499) - (62,499) 8,659 (53,840) Net derivative instruments $ - $ 61,827 $ - $ 61,827 $ - $ 61,827 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 September 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 September 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 $48.53 per barrel of oil and $3.02 per Mcf of natural gas to a 2023 price of $58.82 per barrel of oil and $3.23 per Mcf of natural gas. Commodity prices for this purpose were held flat af ter 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) prevailin g 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. D uring 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 flow s 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 | 9 Months Ended |
Sep. 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 nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Gain (loss) on derivatives: Oil derivatives $ 35,691 $ 404,012 $ (172,974) $ 367,743 Natural gas derivatives 5,495 9,118 (2,692) 13,328 Total $ 41,186 $ 413,130 $ (175,666) $ 381,071 The following table represents the Company’s net cash receipts from derivatives for the three and nine months ended September 30, 2016 and 2015: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Net cash receipts from derivatives: Oil derivatives $ 153,823 $ 155,732 $ 565,918 $ 419,047 Natural gas derivatives 1,541 8,301 16,125 24,394 Total $ 155,364 $ 164,033 $ 582,043 $ 443,441 Commodity derivative contracts at September 30, 2016 . The following table sets forth the Company’s outstanding derivative contracts at September 30, 2016 . When aggregating multiple contracts, the weighted average contract price is disclosed. All of the Company’s derivative contracts at September 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) 5,054,000 5,054,000 Price per Bbl $ 59.38 $ 59.38 2017: Volume (Bbl) 5,839,400 5,359,200 4,987,400 4,679,500 20,865,500 Price per Bbl $ 57.90 $ 58.56 $ 50.96 $ 51.23 $ 54.91 2018: Volume (Bbl) 3,000,000 3,000,000 3,000,000 3,000,000 12,000,000 Price per Bbl $ 49.40 $ 49.40 $ 49.40 $ 49.40 $ 49.40 Oil Basis Swaps: (b) 2016: Volume (Bbl) 5,060,000 5,060,000 Price per Bbl $ (1.48) $ (1.48) 2017: Volume (Bbl) 5,838,000 5,368,000 4,324,000 4,324,000 19,854,000 Price per Bbl $ (1.06) $ (1.10) $ (0.47) $ (0.47) $ (0.81) Natural Gas Swaps: (c) 2016: Volume (MMBtu) 7,360,000 7,360,000 Price per MMBtu $ 3.02 $ 3.02 2017: Volume (MMBtu) 12,335,315 11,531,642 10,770,441 10,580,000 45,217,398 Price per MMBtu $ 3.03 $ 3.02 $ 3.02 $ 3.01 $ 3.02 (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. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 . Debt The Company’s debt consisted of the following at September 30, 2016 and December 31, 2015 : September 30, December 31, (in thousands) 2016 2015 Credit facility $ - $ - 7.0% unsecured senior notes due 2021 - 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 22,913 25,073 Senior notes issuance costs, net (32,066) (42,885) Less: current portion - - Total long-term debt $ 2,740,847 $ 3,332,188 Credit facility. The Company’s credit facility , as amended and restated, has a maturity date of May 9, 2019 . At September 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 September 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 unconditionally guaranteed on a senior unsecured basis by all subsidiaries of the Company, subject to customary release provisions as described in Note 15 . In September 2016, the Company redeemed the $600 million outstanding principal amount of its 7.0% unsecured senior notes due 2021 (the “7.0% Notes”) at a price equal to 103.5 percent of par. The redemption price included the make-whole premium for the early redemption, as determined in accordance with the inden ture governing the 7.0% Notes. The Company also paid accrued and unpaid interest on the 7.0% Notes through September 19, 2016, the redemption date. The Company recorded a loss on extinguishment of debt related to the redemption of the 7.0% Notes of approximately $ 27.7 million for the three and nine months ended September 30, 2016 . This am ount includes $21.0 million associated with t he make-whole premium paid f or the early redemption of the notes and approximately $6.7 million of unamortized deferred loan costs. At September 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 September 30, 2016 were as follows: (in thousands) Remaining 2016 $ - 2017 - 2018 - 2019 - 2020 - 2021 - Thereafter 2,750,000 Total $ 2,750,000 Interest expense. The following amounts have been incurred and charged to interest expense for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Cash payments for interest $ 109,008 $ 43,952 $ 214,515 $ 149,184 Amortization of original issue premium (729) (692) (2,160) (2,046) Amortization of deferred loan origination costs 2,548 2,502 7,661 7,447 Accretion expense 483 - 1,454 - Net changes in accruals (58,316) 9,427 (59,584) 10,044 Interest costs incurred 52,994 55,189 161,886 164,629 Less: capitalized interest - (1,437) (252) (3,826) Total interest expense $ 52,994 $ 53,752 $ 161,634 $ 160,803 |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 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 September 30, 2016 and December 31, 2015 , the Company had $ 14.2 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 September 30, 2016 : (in thousands) Remaining 2016 $ 19,748 2017 29,782 2018 60,550 2019 17,528 2020 11,412 2021 7,077 Thereafter 36,189 Total $ 182,286 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 September 30, 2016 and 2015 were approximately $ 2.0 million each , and approximately $ 6.2 million and $ 5.9 million for the nine months ended September 30, 2016 and 2015 , respectively . Future minimum lease commitments under non-c ancellable operating leases at September 30, 2016 were as follows: (in thousands) Remaining 2016 $ 2,266 2017 8,860 2018 7,848 2019 6,317 2020 4,938 2021 4,175 Thereafter 994 Total $ 35,398 |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 11 . Income taxes The effective income tax rate s w ere 37.3 percent and 33.8 percent for the three months ended September 30, 2016 and 2015 , respectively , and 36.9 percent and 27.5 percent for the nine months ended September 30, 2016 and 2015 , respectively . Total income tax expense ( benefit) for the three and nine months ended September 30, 2016 and 2015 differed from amounts computed by applying the United States federal statutory tax rates to pre-tax income ( loss) due primarily to state taxes and the impact of permanent differences between book and taxable income. |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Amounts paid to a partnership in which a director has an ownership interest (a) $ 1,032 $ 1,418 $ 3,176 $ 4,515 Amounts paid to a director and certain officers of the Company (b) $ 12 $ 20 $ 247 $ 575 Amounts received from certain officers of the Company (c) $ 15 $ 79 $ 35 $ 146 (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 | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |
Net income per share | Note 13 . Net income ( loss) per share The Company uses the two-class method of calculating net income ( 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 income ( loss) from operations and income ( loss) attributable to common stockholders to the basic and diluted earnings used to determine the Company’s net income ( loss) per share amounts for the three and nine months ended September 30, 2016 and 2015 , resp ectively, unde r the two-class method: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share amounts) 2016 2015 2016 2015 Net income (loss) as reported $ (51,146) $ 179,659 $ (1,337,311) $ 66,688 Participating basic earnings (a) - (1,850) - (648) Basic income (loss) attributable to common stockholders (51,146) 177,809 (1,337,311) 66,040 Reallocation of participating earnings - 5 - 3 Diluted income (loss) attributable to common stockholders $ (51,146) $ 177,814 $ (1,337,311) $ 66,043 Income (loss) per common share: Basic $ (0.38) $ 1.49 $ (10.18) $ 0.56 Diluted $ (0.38) $ 1.49 $ (10.18) $ 0.56 (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 nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Weighted average common shares outstanding: Basic 135,454 119,058 131,417 117,363 Dilutive common stock options - 24 - 25 Dilutive performance units - 333 - 433 Diluted 135,454 119,415 131,417 117,821 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 . |
Stockholders' equity
Stockholders' equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Disclosure [Abstract] | |
Stockholders' equity | Note 14 . Stockholders’ equity Public common stock offering. In August 2016, the Company issued approximately 10.4 million shares of its common stock in a public offering at $ 130.90 per share and received net proceeds of approximately $ 1.3 billion. |
Subsidiary guarantors
Subsidiary guarantors | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Subsidiary guarantors | Note 15 . 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 September 30, 2016 and December 31, 2015 , condensed c o nsolidating statements of o perations for the three and nine months ended September 30, 2016 and 2015 and condensed consolidating statements of cash flows for the nine months ended September 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 September 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total ASSETS Accounts receivable - related parties $ 9,604,234 $ 888,394 $ (10,492,628) $ - Other current assets 189,409 1,529,401 - 1,718,810 Oil and natural gas properties, net - 9,365,764 - 9,365,764 Property and equipment, net - 181,267 - 181,267 Investment in subsidiaries 1,942,849 - (1,942,849) - Other long-term assets 16,155 288,638 - 304,793 Total assets $ 11,752,647 $ 12,253,464 $ (12,435,477) $ 11,570,634 LIABILITIES AND EQUITY Accounts payable - related parties $ 888,394 $ 9,604,234 $ (10,492,628) $ - Other current liabilities 12,217 560,431 - 572,648 Long-term debt 2,740,847 - - 2,740,847 Other long-term liabilities 916,606 145,950 - 1,062,556 Equity 7,194,583 1,942,849 (1,942,849) 7,194,583 Total liabilities and equity $ 11,752,647 $ 12,253,464 $ (12,435,477) $ 11,570,634 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 September 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 430,548 $ - $ 430,548 Total operating costs and expenses 40,583 (468,554) - (427,971) Income (loss) from operations 40,583 (38,006) - 2,577 Interest expense (52,148) (846) - (52,994) Loss on extinguishment of debt (27,670) - - (27,670) Other, net (42,285) (3,433) 42,285 (3,433) Loss before income taxes (81,520) (42,285) 42,285 (81,520) Income tax benefit 30,374 - - 30,374 Net loss $ (51,146) $ (42,285) $ 42,285 $ (51,146) Condensed Consolidating Statement of Operations Three Months Ended September 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 463,474 $ - $ 463,474 Total operating costs and expenses 412,490 (551,204) - (138,714) Income (loss) from operations 412,490 (87,730) - 324,760 Interest expense (53,752) - - (53,752) Other, net (87,206) 524 87,206 524 Income (loss) before income taxes 271,532 (87,206) 87,206 271,532 Income tax expense (91,873) - - (91,873) Net income (loss) $ 179,659 $ (87,206) $ 87,206 $ 179,659 Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 1,110,411 $ - $ 1,110,411 Total operating costs and expenses (177,306) (2,853,205) - (3,030,511) Loss from operations (177,306) (1,742,794) - (1,920,100) Interest expense (159,094) (2,540) - (161,634) Loss on extinguishment of debt (27,670) - - (27,670) Other, net (1,755,636) (10,302) 1,755,636 (10,302) Loss before income taxes (2,119,706) (1,755,636) 1,755,636 (2,119,706) Income tax benefit 782,395 - - 782,395 Net loss $ (1,337,311) $ (1,755,636) $ 1,755,636 $ (1,337,311) Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 1,414,421 $ - $ 1,414,421 Total operating costs and expenses 379,055 (1,532,795) - (1,153,740) Income (loss) from operations 379,055 (118,374) - 260,681 Interest expense (160,803) - - (160,803) Other, net (126,249) (7,875) 126,249 (7,875) Income (loss) before income taxes 92,003 (126,249) 126,249 92,003 Income tax expense (25,315) - - (25,315) Net income (loss) $ 66,688 $ (126,249) $ 126,249 $ 66,688 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Net cash flows provided by (used in) operating activities $ (1,276,047) $ 1,713,348 $ - $ 437,301 Net cash flows provided by (used in) investing activities 582,043 (783,269) - (201,226) Net cash flows provided by financing activities 694,314 - - 694,314 Net increase in cash and cash equivalents 310 930,079 - 930,389 Cash and cash equivalents at beginning of period - 228,550 - 228,550 Cash and cash equivalents at end of period $ 310 $ 1,158,629 $ - $ 1,158,939 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Net cash flows provided by (used in) operating activities $ (1,489,475) $ 2,250,068 $ - $ 760,593 Net cash flows provided by (used in) investing activities 443,441 (2,267,269) - (1,823,828) Net cash flows provided by financing activities 1,046,034 17,200 - 1,063,234 Net decrease in cash and cash equivalents - (1) - (1) Cash and cash equivalents at beginning of period - 21 - 21 Cash and cash equivalents at end of period $ - $ 20 $ - $ 20 |
Subsequent events
Subsequent events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 16. Subsequent events Asset acquisition. In October 2016, the Company completed an acquisition of approximately 40,000 net acres in the Northern Midland Basin and other assets from Reliance Energy, Inc. for approximately $1.7 billion. As consideration for the acquisition, the Company paid approximately $1.2 billion in cash and issued to the seller approximately 3.9 million shares of common stock with an approximate value of $0.5 billion. New commodity derivative contracts. After September 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) 2017: Volume (Bbl) 1,021,470 989,280 866,970 785,580 3,663,300 Price per Bbl $ 52.64 $ 52.76 $ 52.90 $ 52.95 $ 52.80 2018: Volume (Bbl) 665,190 783,340 710,310 648,700 2,807,540 Price per Bbl $ 54.46 $ 54.37 $ 54.39 $ 54.42 $ 54.41 Oil Basis Swaps: (b) 2017: Volume (Bbl) 450,000 455,000 644,000 644,000 2,193,000 Price per Bbl $ (0.60) $ (0.60) $ (0.60) $ (0.60) $ (0.60) Natural Gas Swaps: (c) 2018: Volume (MMBtu) 1,800,000 1,820,000 1,840,000 1,840,000 7,300,000 Price per MMBtu $ 3.01 $ 3.01 $ 3.01 $ 3.01 $ 3.01 (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 | 9 Months Ended |
Sep. 30, 2016 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Supplementary information | Note 17. Supplementary information Capitalized costs September 30, December 31, (in thousands) 2016 2015 Oil and natural gas properties: Proved $ 15,822,815 $ 14,940,259 Unproved 946,454 906,048 Less: accumulated depletion (7,403,505) (5,047,810) Net capitalized costs for oil and natural gas properties $ 9,365,764 $ 10,798,497 Costs incurred for oil and natural gas producing activities Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Property acquisition costs: Proved $ 546 $ 56,636 $ 256,655 $ 58,879 Unproved 15,079 161,921 172,486 195,971 Exploration 176,687 201,737 513,109 973,957 Development 96,977 99,490 287,120 622,644 Total costs incurred for oil and natural gas properties $ 289,289 $ 519,784 $ 1,229,370 $ 1,851,451 |
Summary of significant accoun25
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 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 im pact on net income ( 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 America requir es 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 expenses during the reporting periods. Actual results could differ from these estimates. Depletion of oil and natural gas properties is determined using estimates of proved oil and natural gas reserves. There are numerous uncertainties inherent in the estimation of quant ities 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 uncertainties inclu ding, 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, fair value o f 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 $ 128.5 million and $ 98.9 million at September 30, 2016 and December 31, 2015 , respectively, and is included in other assets in the Company’s consolidated balance sheets. The equity loss is included in other expense in the Company’s consolidated statements of operations and was approximately $ 0.4 million and $ 1.0 million for the three months ended September 30, 2016 and 2015 , respectively, and approximately $ 2.3 million and $ 2.7 million for the nine months ended September 30, 2016 and 2015 , respectively . During the three and nine months ended September 30, 2015 , the Company recorded $ 1.0 mil lion and $ 2.5 million , respectively, 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 initial system is ope rational and substantially complete, and is expected to be fully 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 approximate ly $ 37.1 million and $ 20.8 million at September 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 three and nine months ended September 30, 2016 was approximately $ 0.2 million and $ 2.5 million , respectively, 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. |
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 does not plan on early adopting this standard. Once adopted, the Com pany expects increased volatility in earnings and in the effective tax rate due to the excess tax benefits and deficiencies being recognized in the statement of operations. |
Exploratory well costs (Tables)
Exploratory well costs (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2016 : Nine Months Ended (in thousands) September 30, 2016 Beginning capitalized exploratory well costs $ 116,198 Additions to exploratory well costs pending the determination of proved reserves 142,428 Reclassifications due to determination of proved reserves (86,192) Exploratory well costs charged to expense (5,707) Disposition of wells (17,339) Ending capitalized exploratory well costs $ 149,388 |
Aging of capitalized exploratory well costs based on the date drilling was completed | The following table provides an aging at September 30, 2016 and December 31, 2015 of capitalized exploratory well costs based on the date drilling was completed: September 30, December 31, (dollars in thousands) 2016 2015 Capitalized exploratory well costs that have been capitalized for a period of one year or less $ 140,966 $ 98,764 Capitalized exploratory well costs that have been capitalized for a period greater than one year 8,422 17,434 Total capitalized exploratory well costs $ 149,388 $ 116,198 Number of projects with exploratory well costs that have been capitalized for a period greater than one year 7 8 |
Asset retirement obligations (T
Asset retirement obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset retirement obligations | The followi ng table summarizes the Company ’ s asset retirement obligation activity during the nine months ended September 30, 2016 : Nine Months Ended (in thousands) September 30, 2016 Asset retirement obligations, beginning of period $ 119,945 Liabilities incurred from new wells 1,474 Liabilities assumed in acquisitions 902 Accretion expense 5,226 Disposition of wells (970) Liabilities settled upon plugging and abandoning wells (1,343) Asset retirement obligations, end of period $ 125,234 |
Incentive plans (Tables)
Incentive plans (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 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) 429,744 - 161,361 Options exercised - (20,776) - Awards cancelled / forfeited (76,645) - (9,285) Lapse of restrictions (394,704) - - Outstanding at September 30, 2016 1,158,042 22,125 467,831 (a) Weighted average grant date fair value per share $ 111.70 $ - $ 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 September 30, 2016 : (in thousands) Remaining 2016 $ 16,600 2017 44,414 2018 22,059 2019 4,882 2020 158 Total $ 88,113 |
Disclosures about fair value 29
Disclosures about fair value measurements (Tables) | 9 Months Ended |
Sep. 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 September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Carrying Fair Carrying Fair (in thousands) Value Value Value Value Assets: Derivative instruments $ 119,175 $ 119,175 $ 819,536 $ 819,536 Liabilities: Derivative instruments $ 57,348 $ 57,348 $ - $ - $600 million 7.0% senior notes due 2021 (a) $ - $ - $ 592,414 $ 595,500 $600 million 6.5% senior notes due 2022 (a) $ 592,420 $ 622,500 $ 591,549 $ 579,000 $600 million 5.5% senior notes due 2022 (a) $ 593,560 $ 619,500 $ 592,899 $ 553,500 $1,550 million 5.5% senior notes due 2023 (a) $ 1,554,867 $ 1,624,033 $ 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 September 30, 2016 and December 31, 2015 . The Company nets the fair value of derivative instruments by counterparty in the Company’s consolidated balance sheets. September 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 $ - $ 154,620 $ - $ 154,620 $ (35,445) $ 119,175 Noncurrent: Commodity derivatives - 8,659 - 8,659 (8,659) - Liabilities: Current: Commodity derivatives - (38,953) - (38,953) 35,445 (3,508) Noncurrent: Commodity derivatives - (62,499) - (62,499) 8,659 (53,840) Net derivative instruments $ - $ 61,827 $ - $ 61,827 $ - $ 61,827 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 instrume30
Derivative financial instruments (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Gain (loss) on derivatives: Oil derivatives $ 35,691 $ 404,012 $ (172,974) $ 367,743 Natural gas derivatives 5,495 9,118 (2,692) 13,328 Total $ 41,186 $ 413,130 $ (175,666) $ 381,071 The following table represents the Company’s net cash receipts from derivatives for the three and nine months ended September 30, 2016 and 2015: Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Net cash receipts from derivatives: Oil derivatives $ 153,823 $ 155,732 $ 565,918 $ 419,047 Natural gas derivatives 1,541 8,301 16,125 24,394 Total $ 155,364 $ 164,033 $ 582,043 $ 443,441 |
Company's outstanding derivative contracts | The following table sets forth the Company’s outstanding derivative contracts at September 30, 2016 . When aggregating multiple contracts, the weighted average contract price is disclosed. All of the Company’s derivative contracts at September 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) 5,054,000 5,054,000 Price per Bbl $ 59.38 $ 59.38 2017: Volume (Bbl) 5,839,400 5,359,200 4,987,400 4,679,500 20,865,500 Price per Bbl $ 57.90 $ 58.56 $ 50.96 $ 51.23 $ 54.91 2018: Volume (Bbl) 3,000,000 3,000,000 3,000,000 3,000,000 12,000,000 Price per Bbl $ 49.40 $ 49.40 $ 49.40 $ 49.40 $ 49.40 Oil Basis Swaps: (b) 2016: Volume (Bbl) 5,060,000 5,060,000 Price per Bbl $ (1.48) $ (1.48) 2017: Volume (Bbl) 5,838,000 5,368,000 4,324,000 4,324,000 19,854,000 Price per Bbl $ (1.06) $ (1.10) $ (0.47) $ (0.47) $ (0.81) Natural Gas Swaps: (c) 2016: Volume (MMBtu) 7,360,000 7,360,000 Price per MMBtu $ 3.02 $ 3.02 2017: Volume (MMBtu) 12,335,315 11,531,642 10,770,441 10,580,000 45,217,398 Price per MMBtu $ 3.03 $ 3.02 $ 3.02 $ 3.01 $ 3.02 (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) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Company's debt | The Company’s debt consisted of the following at September 30, 2016 and December 31, 2015 : September 30, December 31, (in thousands) 2016 2015 Credit facility $ - $ - 7.0% unsecured senior notes due 2021 - 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 22,913 25,073 Senior notes issuance costs, net (32,066) (42,885) Less: current portion - - Total long-term debt $ 2,740,847 $ 3,332,188 |
Principal maturities of debt | Principal maturities of long -term debt outstanding at September 30, 2016 were as follows: (in thousands) Remaining 2016 $ - 2017 - 2018 - 2019 - 2020 - 2021 - Thereafter 2,750,000 Total $ 2,750,000 |
Interest expense | The following amounts have been incurred and charged to interest expense for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Cash payments for interest $ 109,008 $ 43,952 $ 214,515 $ 149,184 Amortization of original issue premium (729) (692) (2,160) (2,046) Amortization of deferred loan origination costs 2,548 2,502 7,661 7,447 Accretion expense 483 - 1,454 - Net changes in accruals (58,316) 9,427 (59,584) 10,044 Interest costs incurred 52,994 55,189 161,886 164,629 Less: capitalized interest - (1,437) (252) (3,826) Total interest expense $ 52,994 $ 53,752 $ 161,634 $ 160,803 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of the Company's future commitments | The following table s ummarizes the Company’s commitments at September 30, 2016 : (in thousands) Remaining 2016 $ 19,748 2017 29,782 2018 60,550 2019 17,528 2020 11,412 2021 7,077 Thereafter 36,189 Total $ 182,286 |
Future minimum lease commitments under non-cancellable operating leases | Future minimum lease commitments under non-c ancellable operating leases at September 30, 2016 were as follows: (in thousands) Remaining 2016 $ 2,266 2017 8,860 2018 7,848 2019 6,317 2020 4,938 2021 4,175 Thereafter 994 Total $ 35,398 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Amounts paid to a partnership in which a director has an ownership interest (a) $ 1,032 $ 1,418 $ 3,176 $ 4,515 Amounts paid to a director and certain officers of the Company (b) $ 12 $ 20 $ 247 $ 575 Amounts received from certain officers of the Company (c) $ 15 $ 79 $ 35 $ 146 (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) | 9 Months Ended |
Sep. 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 income ( loss) from operations and income ( loss) attributable to common stockholders to the basic and diluted earnings used to determine the Company’s net income ( loss) per share amounts for the three and nine months ended September 30, 2016 and 2015 , resp ectively, unde r the two-class method: Three Months Ended Nine Months Ended September 30, September 30, (in thousands, except per share amounts) 2016 2015 2016 2015 Net income (loss) as reported $ (51,146) $ 179,659 $ (1,337,311) $ 66,688 Participating basic earnings (a) - (1,850) - (648) Basic income (loss) attributable to common stockholders (51,146) 177,809 (1,337,311) 66,040 Reallocation of participating earnings - 5 - 3 Diluted income (loss) attributable to common stockholders $ (51,146) $ 177,814 $ (1,337,311) $ 66,043 Income (loss) per common share: Basic $ (0.38) $ 1.49 $ (10.18) $ 0.56 Diluted $ (0.38) $ 1.49 $ (10.18) $ 0.56 (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 nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Weighted average common shares outstanding: Basic 135,454 119,058 131,417 117,363 Dilutive common stock options - 24 - 25 Dilutive performance units - 333 - 433 Diluted 135,454 119,415 131,417 117,821 |
Subsidiary guarantors (Tables)
Subsidiary guarantors (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Condensed Consolidating Balance Sheet | The following condensed consolidating balance s heets at September 30, 2016 and December 31, 2015 , condensed c o nsolidating statements of o perations for the three and nine months ended September 30, 2016 and 2015 and condensed consolidating statements of cash flows for the nine months ended September 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 September 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total ASSETS Accounts receivable - related parties $ 9,604,234 $ 888,394 $ (10,492,628) $ - Other current assets 189,409 1,529,401 - 1,718,810 Oil and natural gas properties, net - 9,365,764 - 9,365,764 Property and equipment, net - 181,267 - 181,267 Investment in subsidiaries 1,942,849 - (1,942,849) - Other long-term assets 16,155 288,638 - 304,793 Total assets $ 11,752,647 $ 12,253,464 $ (12,435,477) $ 11,570,634 LIABILITIES AND EQUITY Accounts payable - related parties $ 888,394 $ 9,604,234 $ (10,492,628) $ - Other current liabilities 12,217 560,431 - 572,648 Long-term debt 2,740,847 - - 2,740,847 Other long-term liabilities 916,606 145,950 - 1,062,556 Equity 7,194,583 1,942,849 (1,942,849) 7,194,583 Total liabilities and equity $ 11,752,647 $ 12,253,464 $ (12,435,477) $ 11,570,634 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 September 30, 2016 and December 31, 2015 , condensed c o nsolidating statements of o perations for the three and nine months ended September 30, 2016 and 2015 and condensed consolidating statements of cash flows for the nine months ended September 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 September 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 430,548 $ - $ 430,548 Total operating costs and expenses 40,583 (468,554) - (427,971) Income (loss) from operations 40,583 (38,006) - 2,577 Interest expense (52,148) (846) - (52,994) Loss on extinguishment of debt (27,670) - - (27,670) Other, net (42,285) (3,433) 42,285 (3,433) Loss before income taxes (81,520) (42,285) 42,285 (81,520) Income tax benefit 30,374 - - 30,374 Net loss $ (51,146) $ (42,285) $ 42,285 $ (51,146) Condensed Consolidating Statement of Operations Three Months Ended September 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 463,474 $ - $ 463,474 Total operating costs and expenses 412,490 (551,204) - (138,714) Income (loss) from operations 412,490 (87,730) - 324,760 Interest expense (53,752) - - (53,752) Other, net (87,206) 524 87,206 524 Income (loss) before income taxes 271,532 (87,206) 87,206 271,532 Income tax expense (91,873) - - (91,873) Net income (loss) $ 179,659 $ (87,206) $ 87,206 $ 179,659 Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 1,110,411 $ - $ 1,110,411 Total operating costs and expenses (177,306) (2,853,205) - (3,030,511) Loss from operations (177,306) (1,742,794) - (1,920,100) Interest expense (159,094) (2,540) - (161,634) Loss on extinguishment of debt (27,670) - - (27,670) Other, net (1,755,636) (10,302) 1,755,636 (10,302) Loss before income taxes (2,119,706) (1,755,636) 1,755,636 (2,119,706) Income tax benefit 782,395 - - 782,395 Net loss $ (1,337,311) $ (1,755,636) $ 1,755,636 $ (1,337,311) Condensed Consolidating Statement of Operations Nine Months Ended September 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Total operating revenues $ - $ 1,414,421 $ - $ 1,414,421 Total operating costs and expenses 379,055 (1,532,795) - (1,153,740) Income (loss) from operations 379,055 (118,374) - 260,681 Interest expense (160,803) - - (160,803) Other, net (126,249) (7,875) 126,249 (7,875) Income (loss) before income taxes 92,003 (126,249) 126,249 92,003 Income tax expense (25,315) - - (25,315) Net income (loss) $ 66,688 $ (126,249) $ 126,249 $ 66,688 |
Condensed Consolidating Statement of Cash Flows | The following condensed consolidating balance s heets at September 30, 2016 and December 31, 2015 , condensed c o nsolidating statements of o perations for the three and nine months ended September 30, 2016 and 2015 and condensed consolidating statements of cash flows for the nine months ended September 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 Nine Months Ended September 30, 2016 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Net cash flows provided by (used in) operating activities $ (1,276,047) $ 1,713,348 $ - $ 437,301 Net cash flows provided by (used in) investing activities 582,043 (783,269) - (201,226) Net cash flows provided by financing activities 694,314 - - 694,314 Net increase in cash and cash equivalents 310 930,079 - 930,389 Cash and cash equivalents at beginning of period - 228,550 - 228,550 Cash and cash equivalents at end of period $ 310 $ 1,158,629 $ - $ 1,158,939 Condensed Consolidating Statement of Cash Flows Nine Months Ended September 30, 2015 Parent Subsidiary Consolidating (in thousands) Issuer Guarantors Entries Total Net cash flows provided by (used in) operating activities $ (1,489,475) $ 2,250,068 $ - $ 760,593 Net cash flows provided by (used in) investing activities 443,441 (2,267,269) - (1,823,828) Net cash flows provided by financing activities 1,046,034 17,200 - 1,063,234 Net decrease in cash and cash equivalents - (1) - (1) Cash and cash equivalents at beginning of period - 21 - 21 Cash and cash equivalents at end of period $ - $ 20 $ - $ 20 |
Subsequent events (Tables)
Subsequent events (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
New commodity derivative contracts | After September 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) 2017: Volume (Bbl) 1,021,470 989,280 866,970 785,580 3,663,300 Price per Bbl $ 52.64 $ 52.76 $ 52.90 $ 52.95 $ 52.80 2018: Volume (Bbl) 665,190 783,340 710,310 648,700 2,807,540 Price per Bbl $ 54.46 $ 54.37 $ 54.39 $ 54.42 $ 54.41 Oil Basis Swaps: (b) 2017: Volume (Bbl) 450,000 455,000 644,000 644,000 2,193,000 Price per Bbl $ (0.60) $ (0.60) $ (0.60) $ (0.60) $ (0.60) Natural Gas Swaps: (c) 2018: Volume (MMBtu) 1,800,000 1,820,000 1,840,000 1,840,000 7,300,000 Price per MMBtu $ 3.01 $ 3.01 $ 3.01 $ 3.01 $ 3.01 (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) | 9 Months Ended |
Sep. 30, 2016 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Capitalized costs | Capitalized costs September 30, December 31, (in thousands) 2016 2015 Oil and natural gas properties: Proved $ 15,822,815 $ 14,940,259 Unproved 946,454 906,048 Less: accumulated depletion (7,403,505) (5,047,810) Net capitalized costs for oil and natural gas properties $ 9,365,764 $ 10,798,497 |
costs incurred for oil and natural gas producing activities | Costs incurred for oil and natural gas producing activities Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Property acquisition costs: Proved $ 546 $ 56,636 $ 256,655 $ 58,879 Unproved 15,079 161,921 172,486 195,971 Exploration 176,687 201,737 513,109 973,957 Development 96,977 99,490 287,120 622,644 Total costs incurred for oil and natural gas properties $ 289,289 $ 519,784 $ 1,229,370 $ 1,851,451 |
Summary Of Significant Accoun38
Summary Of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Alpha Crude Connector [Member] | |||||
Equity Method Investments [Line Items] | |||||
Total equity method investment | $ 128.5 | $ 128.5 | $ 98.9 | ||
Equity method investment ownership percentage | 50.00% | 50.00% | |||
Loss from equity method investments | $ (0.4) | $ (1) | $ (2.3) | $ (2.7) | |
Interest costs capitalized on equity method investment | $ 1 | $ 2.5 | |||
Other [Member] | |||||
Equity Method Investments [Line Items] | |||||
Total equity method investment | $ 37.1 | $ 37.1 | $ 20.8 | ||
Equity method investment ownership percentage | 25.00% | 25.00% | |||
Loss from equity method investments | $ (0.2) | $ (2.5) |
Exploratory Well Costs (Capital
Exploratory Well Costs (Capitalized Exploratory Well Activity) (Detail) $ in Thousands | 9 Months Ended |
Sep. 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 | 142,428 |
Reclassifications due to determination of proved reserves | (86,192) |
Exploratory well costs charged to expense | 5,707 |
Disposition of wells | (17,339) |
Ending capitalized exploratory well costs | $ 149,388 |
Exploratory Well Costs (Aging O
Exploratory Well Costs (Aging Of Capitalized Exploratory Well Costs Based On The Date Of Drilling) (Detail) $ in Thousands | Sep. 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 | $ 140,966 | $ 98,764 |
Capitalized exploratory well costs that have been capitalized for a period greater than one year | 8,422 | 17,434 |
Total capitalized exploratory well costs | $ 149,388 | $ 116,198 |
Projects that have Exploratory Well Costs that have been Capitalized for Period Greater than One Year, Number of Projects | Number | 7 | 8 |
Exploratory Well Costs (Narrati
Exploratory Well Costs (Narrative) (Detail) - USD ($) $ in Thousands | Sep. 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 | $ 8,422 | $ 17,434 |
Projects Operated by Others [Member] | ||
Oil And Gas In Process Activities [Line Items] | ||
Capitalized Exploratory Well Costs That Have Been Capitalized For Period Greater Than One Year | 1,900 | |
Delaware Basin Project [Member] | ||
Oil And Gas In Process Activities [Line Items] | ||
Capitalized Exploratory Well Costs That Have Been Capitalized For Period Greater Than One Year | 4,800 | |
Midland Basin Project [Member] | ||
Oil And Gas In Process Activities [Line Items] | ||
Capitalized Exploratory Well Costs That Have Been Capitalized For Period Greater Than One Year | $ 1,700 |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Narrative) (Detail) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Acquisitions And Divestitures Narrative [Abstract] | |||
Acquisition Date | Mar. 21, 2016 | ||
Common stock issued in business combination (Shares) | 3,900 | 2,214 | |
Common stock issued in business combination | $ 500,000 | $ 230,828 | $ 0 |
Cash consideration paid for acquisition | $ 1,200,000 | 145,700 | |
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 |
Asset Retirement Obligations (S
Asset Retirement Obligations (Schedule Of Asset Retirement Obligation Transactions) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 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 | 1,474 | |||
Liabilities assumed in acquisitions | 902 | |||
Accretion expense | $ 1,769 | $ 1,853 | 5,226 | $ 5,894 |
Disposition of wells | (970) | |||
Liabilities settled upon plugging and abandoning wells | (1,343) | |||
Asset retirement obligations, end of period | $ 125,234 | $ 125,234 |
Incentive Plans (Summary of Sto
Incentive Plans (Summary of Stock-Based Award Activity) (Detail) - $ / shares | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding | 1,158,042 | 1,199,647 | |
Awards granted | [1] | 429,744 | |
Awards cancelled / forfeited | (76,645) | ||
Lapse of restrictions | (394,704) | ||
Weighted average grant date fair value per share | $ 111.7 | ||
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 $111.7 | ||
[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 | Sep. 30, 2016USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Remaining 2,016 | $ 16,600 |
2,017 | 44,414 |
2,018 | 22,059 |
2,019 | 4,882 |
2,020 | 158 |
Total | $ 88,113 |
Disclosures About Fair Value 46
Disclosures About Fair Value Measurements (Narrative) (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($) | Sep. 30, 2016 | Dec. 31, 2023$ / bbl$ / Mcf | Dec. 31, 2016$ / bbl$ / Mcf | |
Disclosure Fair Value Narrative [Abstract] | ||||
Management Estimate of Future Oil Price | $ / bbl | 58.82 | 48.53 | ||
Management Estimate of Future Natural Gas Price | $ / Mcf | 3.23 | 3.02 | ||
Annual discount rate | 10.00% | |||
Carrying Amount | $ 3,437,612 | |||
Impairment Expense | $ 1,524,645 |
Disclosures About Fair Value 47
Disclosures About Fair Value Measurements (Carrying Amounts And Fair Values Of The Company's Financial Instruments) (Detail) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative instruments, Assets | $ 119,175,000 | $ 819,536,000 | |
Derivative instruments, Liabilities | 57,348,000 | 0 | |
Seven Point Zero Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | 0 | 595,500,000 | |
Six Point Five Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | 622,500,000 | 579,000,000 | |
Five Point Five Percent Unsecured Senior Notes [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Unsecured senior notes | 619,500,000 | 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 | 1,624,033,000 | 1,453,005,000 | |
Carrying Reported Amount Fair Value Disclosure [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Derivative instruments, Assets | 119,175,000 | 819,536,000 | |
Derivative instruments, Liabilities | 57,348,000 | 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] | 0 | 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] | 592,420,000 | 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] | 593,560,000 | 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] | $ 1,554,867,000 | $ 1,555,326,000 |
[1] | The carrying value includes associated deferred loan costs and any premium. |
Disclosures About Fair Value 48
Disclosures About Fair Value Measurements (Company's Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | $ 119,175 | $ 652,498 |
Noncurrent derivative contracts, assets | 0 | 167,038 |
Current derivative contracts, liabilities | (3,508) | 0 |
Noncurrent derivative contracts, liabilities | (53,840) | 0 |
Net financial assets (liabilities) | 61,827 | 819,536 |
Estimate Of Fair Value Fair Value Disclosure [Member] | ||
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | 154,620 | 684,029 |
Noncurrent derivative contracts, assets | 8,659 | 175,267 |
Current derivative contracts, liabilities | (38,953) | (31,531) |
Noncurrent derivative contracts, liabilities | (62,499) | (8,229) |
Net financial assets (liabilities) | 61,827 | 819,536 |
Gross Amounts Offset in Consolidated Balance Sheet [Member] | ||
Fair Value Of Derivatives Disclosure Information [Line Items] | ||
Current derivative contracts, assets | (35,445) | (31,531) |
Noncurrent derivative contracts, assets | (8,659) | (8,229) |
Current derivative contracts, liabilities | 35,445 | 31,531 |
Noncurrent derivative contracts, liabilities | 8,659 | 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 | 154,620 | 684,029 |
Noncurrent derivative contracts, assets | 8,659 | 175,267 |
Current derivative contracts, liabilities | (38,953) | (31,531) |
Noncurrent derivative contracts, liabilities | (62,499) | (8,229) |
Net financial assets (liabilities) | 61,827 | 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 49
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 Instrume50
Derivative Financial Instruments (Gains And Losses Reported In Earnings Related To Commodity Derivative Instruments) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Financial Instruments Gains And Losses Reported In Earnings Related To Commodity Derivative Instruments [Line Items] | ||||
Net settlements received from (paid on) derivatives | $ 155,364 | $ 164,033 | $ 582,043 | $ 443,441 |
Gain (loss) on derivatives | 41,186 | 413,130 | (175,666) | 381,071 |
Oil Commodity Derivative [Member] | ||||
Derivative Financial Instruments Gains And Losses Reported In Earnings Related To Commodity Derivative Instruments [Line Items] | ||||
Net settlements received from (paid on) derivatives | 153,823 | 155,732 | 565,918 | 419,047 |
Gain (loss) on derivatives | 35,691 | 404,012 | (172,974) | 367,743 |
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 (paid on) derivatives | 1,541 | 8,301 | 16,125 | 24,394 |
Gain (loss) on derivatives | $ 5,495 | $ 9,118 | $ (2,692) | $ 13,328 |
Derivative Financial Instrume51
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 | Dec. 31, 2018bbl$ / bbl | Dec. 31, 2017MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2016MMBTUbbl$ / bbl$ / MMBTU | ||
Oil Swaps [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Volume - Current Year | bbl | [1] | 5,054,000 | 5,054,000 | ||||||||||
Price - Current Year | $ / bbl | [1] | 59.38 | 59.38 | ||||||||||
Volume - Year One | bbl | [1] | 4,679,500 | 4,987,400 | 5,359,200 | 5,839,400 | 20,865,500 | |||||||
Price - Year One | $ / bbl | [1] | 51.23 | 50.96 | 58.56 | 57.9 | 54.91 | |||||||
Volume - Year Two | bbl | [1] | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 12,000,000 | |||||||
Price - Year Two | $ / bbl | [1] | 49.4 | 49.4 | 49.4 | 49.4 | 49.4 | |||||||
Oil Basis Swaps [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Volume - Current Year | bbl | [2] | 5,060,000 | 5,060,000 | ||||||||||
Price - Current Year | $ / bbl | [2] | (1.48) | (1.48) | ||||||||||
Volume - Year One | bbl | [2] | 4,324,000 | 4,324,000 | 5,368,000 | 5,838,000 | 19,854,000 | |||||||
Price - Year One | $ / bbl | [2] | (0.47) | (0.47) | (1.1) | (1.06) | (0.81) | |||||||
Natural Gas Swap [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Volume - Current Year | MMBTU | [3] | 7,360,000 | 7,360,000 | ||||||||||
Price - Current Year | $ / MMBTU | [3] | 3.02 | 3.02 | ||||||||||
Volume - Year One | MMBTU | [3] | 10,580,000 | 10,770,441 | 11,531,642 | 12,335,315 | 45,217,398 | |||||||
Price - Year One | $ / MMBTU | [3] | 3.01 | 3.02 | 3.02 | 3.03 | 3.02 | |||||||
[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. |
Debt (Summary Of Long-Term Debt
Debt (Summary Of Long-Term Debt) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Credit facility | $ 0 | $ 0 |
Unamortized original issue premium | 22,913 | 25,073 |
Senior notes issuance costs, net | (32,066) | (42,885) |
Less: current portion | 0 | 0 |
Total long-term debt | 2,740,847 | 3,332,188 |
7.0% unsecured senior notes due 2021 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes | 0 | 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) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Disclosure [Line Items] | ||||
Line of credit maturity date | May 9, 2019 | |||
Aggregate lender commitments | $ 2,500,000 | $ 2,500,000 | ||
Aggregate maximum borrowing base | 2,800,000 | 2,800,000 | ||
Loss on extinguishment of debt | (27,670) | $ 0 | (27,670) | $ 0 |
Make-whole premium for early redemption | $ 21,000 | $ 0 | ||
7.0% unsecured senior notes due 2021 | ||||
Debt Disclosure [Line Items] | ||||
Redemption date | Sep. 19, 2016 | |||
Outstanding principal amount redeemed | $ 600,000 | $ 600,000 | ||
Percent of par redeemed | 103.50% | |||
Loss on extinguishment of debt | $ 27,700 | |||
Make-whole premium for early redemption | 21,000 | |||
Write-off of unamortized deferred loan costs | $ 6,700 |
Debt (Principal Maturities Of D
Debt (Principal Maturities Of Debt) (Detail) $ in Thousands | Sep. 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 | 0 |
Thereafter | 2,750,000 |
Total | $ 2,750,000 |
Debt (Summary Of Interest Expen
Debt (Summary Of Interest Expense) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Debt Summary Of Interest Expense [Abstract] | ||||
Cash payments for interest | $ (109,008) | $ (43,952) | $ (214,515) | $ (149,184) |
Amortization of original issue premium | (729) | (692) | (2,160) | (2,046) |
Amortization of deferred loan origination costs | 2,548 | 2,502 | 7,661 | 7,447 |
Accretion expense | 483 | 0 | 1,454 | 0 |
Net changes in accruals | (58,316) | 9,427 | (59,584) | 10,044 |
Interest costs incurred | 52,994 | 55,189 | 161,886 | 164,629 |
Less: capitalized interest | 0 | (1,437) | (252) | (3,826) |
Total interest expense | $ 52,994 | $ 53,752 | $ 161,634 | $ 160,803 |
Commitments And Contingencies56
Commitments And Contingencies (Narrative) (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Commitments [Line Items] | |||||
Operating leases, lease payments | $ 2 | $ 2 | $ 6.2 | $ 5.9 | |
Accrued Exposure | $ 14.2 | $ 14.2 | $ 13.4 |
Commitments And Contingencies57
Commitments And Contingencies (Future Commitments) (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Disclosure Commitments And Contingencies Future Commitments [Abstract] | |
Remaining 2,016 | $ 19,748 |
2,017 | 29,782 |
2,018 | 60,550 |
2,019 | 17,528 |
2,020 | 11,412 |
2,021 | 7,077 |
Thereafter | 36,189 |
Total | $ 182,286 |
Commitments And Contingencies58
Commitments And Contingencies (Future Minimum Lease Commitments Under Non-Cancellable Operating Leases) (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Disclosure Commitments And Contingencies Future Minimum Lease Commitments Under Non Cancellable Operating Leases [Abstract] | |
Remaining 2,016 | $ 2,266 |
2,017 | 8,860 |
2,018 | 7,848 |
2,019 | 6,317 |
2,020 | 4,938 |
2,021 | 4,175 |
Thereafter | 994 |
Total | $ 35,398 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Income Taxes Narrative [Abstract] | ||||
Effective tax rate | 37.30% | 33.80% | 36.90% | 27.50% |
Related Party Transactions (Sch
Related Party Transactions (Schedule Of Related Party Transactions) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 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] | $ 1,032 | $ 1,418 | $ 3,176 | $ 4,515 |
Director and Certain Officers [Member] | |||||
Related Party Transaction [Line Items] | |||||
Amounts paid | [2] | 12 | 20 | 247 | 575 |
Amounts received | [3] | $ 15 | $ 79 | $ 35 | $ 146 |
[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 |
Sep. 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 | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | |||||
Net income (loss) | $ (51,146) | $ 179,659 | $ (1,337,311) | $ 66,688 | |
Participating basic earnings | [1] | 0 | (1,850) | 0 | (648) |
Basic net income (loss) attributable to common stockholders | (51,146) | 177,809 | (1,337,311) | 66,040 | |
Reallocation of participating earnings | 0 | 5 | 0 | 3 | |
Diluted net income (loss) attributable to common stockholders | $ (51,146) | $ 177,814 | $ (1,337,311) | $ 66,043 | |
Basic net income (loss) | $ (0.38) | $ 1.49 | $ (10.18) | $ 0.56 | |
Diluted net income (loss) | $ (0.38) | $ 1.49 | $ (10.18) | $ 0.56 | |
[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 | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation Of Basic Weighted Average Common Shares Outstanding To Diluted Weighted Average Common Shares Outstanding [Line Items] | ||||
Basic | 135,454 | 119,058 | 131,417 | 117,363 |
Diluted | 135,454 | 119,415 | 131,417 | 117,821 |
Stock Options [Member] | ||||
Reconciliation Of Basic Weighted Average Common Shares Outstanding To Diluted Weighted Average Common Shares Outstanding [Line Items] | ||||
Dilutive shares | 0 | 24 | 0 | 25 |
Performance Shares [Member] | ||||
Reconciliation Of Basic Weighted Average Common Shares Outstanding To Diluted Weighted Average Common Shares Outstanding [Line Items] | ||||
Dilutive shares | 0 | 333 | 0 | 433 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Stockholders' Equity Narrative [Abstract] | ||
Issuance of common stock (Shares) | 10,350 | |
Shares issued price per share | $ 130.9 | |
Net proceeds from issuance of common stock | $ 1,327,444 | $ 741,509 |
Subsidiary Guarantors (Condense
Subsidiary Guarantors (Condensed Consolidating Balance Sheet) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Accounts receivable - related parties | $ 0 | $ 0 |
Other current assets | 1,718,810 | 1,314,550 |
Oil and natural gas properties, net | 9,365,764 | 10,798,497 |
Property and equipment, net | 181,267 | 178,450 |
Investment in subsidiaries | 0 | 0 |
Other long-term assets | 304,793 | 350,379 |
Total assets | 11,570,634 | 12,641,876 |
LIABILITIES AND EQUITY | ||
Accounts payable - related parties | 0 | 0 |
Other current liabilities | 572,648 | 596,420 |
Long-term debt | 2,740,847 | 3,332,188 |
Other long-term liabilities | 1,062,556 | 1,770,717 |
Equity | 7,194,583 | 6,942,551 |
Total liabilities and stockholders' equity | 11,570,634 | 12,641,876 |
Consolidation Eliminations [Member] | ||
ASSETS | ||
Accounts receivable - related parties | (10,492,628) | (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 | (1,942,849) | (3,698,485) |
Other long-term assets | 0 | 0 |
Total assets | (12,435,477) | (13,362,881) |
LIABILITIES AND EQUITY | ||
Accounts payable - related parties | (10,492,628) | (9,664,396) |
Other current liabilities | 0 | 0 |
Long-term debt | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Equity | (1,942,849) | (3,698,485) |
Total liabilities and stockholders' equity | (12,435,477) | (13,362,881) |
Parent Company [Member] | ||
ASSETS | ||
Accounts receivable - related parties | 9,604,234 | 8,502,099 |
Other current assets | 189,409 | 753,716 |
Oil and natural gas properties, net | 0 | 0 |
Property and equipment, net | 0 | 0 |
Investment in subsidiaries | 1,942,849 | 3,698,485 |
Other long-term assets | 16,155 | 182,623 |
Total assets | 11,752,647 | 13,136,923 |
LIABILITIES AND EQUITY | ||
Accounts payable - related parties | 888,394 | 1,162,297 |
Other current liabilities | 12,217 | 69,514 |
Long-term debt | 2,740,847 | 3,332,188 |
Other long-term liabilities | 916,606 | 1,630,373 |
Equity | 7,194,583 | 6,942,551 |
Total liabilities and stockholders' equity | 11,752,647 | 13,136,923 |
Guarantor Subsidiaries [Member] | ||
ASSETS | ||
Accounts receivable - related parties | 888,394 | 1,162,297 |
Other current assets | 1,529,401 | 560,834 |
Oil and natural gas properties, net | 9,365,764 | 10,798,497 |
Property and equipment, net | 181,267 | 178,450 |
Investment in subsidiaries | 0 | 0 |
Other long-term assets | 288,638 | 167,756 |
Total assets | 12,253,464 | 12,867,834 |
LIABILITIES AND EQUITY | ||
Accounts payable - related parties | 9,604,234 | 8,502,099 |
Other current liabilities | 560,431 | 526,906 |
Long-term debt | 0 | 0 |
Other long-term liabilities | 145,950 | 140,344 |
Equity | 1,942,849 | 3,698,485 |
Total liabilities and stockholders' equity | $ 12,253,464 | $ 12,867,834 |
Subsidiary Guarantors (Conden66
Subsidiary Guarantors (Condensed Consolidating Statement Of Operations) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements Captions [Line Items] | ||||
Total operating revenues | $ 430,548 | $ 463,474 | $ 1,110,411 | $ 1,414,421 |
Total operating costs and expenses | (427,971) | (138,714) | (3,030,511) | (1,153,740) |
Income (loss) from operations | 2,577 | 324,760 | (1,920,100) | 260,681 |
Interest expense | (52,994) | (53,752) | (161,634) | (160,803) |
Loss on extinguishment of debt | (27,670) | 0 | (27,670) | 0 |
Other, net | (3,433) | 524 | (10,302) | (7,875) |
Income (loss) before income taxes | (81,520) | 271,532 | (2,119,706) | 92,003 |
Income tax (expense) benefit | 30,374 | (91,873) | 782,395 | (25,315) |
Net income (loss) | (51,146) | 179,659 | (1,337,311) | 66,688 |
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 |
Income (loss) from operations | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | ||
Other, net | 42,285 | 87,206 | 1,755,636 | 126,249 |
Income (loss) before income taxes | 42,285 | 87,206 | 1,755,636 | 126,249 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Net income (loss) | 42,285 | 87,206 | 1,755,636 | 126,249 |
Parent Company [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Total operating revenues | 0 | 0 | 0 | 0 |
Total operating costs and expenses | 40,583 | 412,490 | (177,306) | 379,055 |
Income (loss) from operations | 40,583 | 412,490 | (177,306) | 379,055 |
Interest expense | (52,148) | (53,752) | (159,094) | (160,803) |
Loss on extinguishment of debt | (27,670) | (27,670) | ||
Other, net | (42,285) | (87,206) | (1,755,636) | (126,249) |
Income (loss) before income taxes | (81,520) | 271,532 | (2,119,706) | 92,003 |
Income tax (expense) benefit | 30,374 | (91,873) | 782,395 | (25,315) |
Net income (loss) | (51,146) | 179,659 | (1,337,311) | 66,688 |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements Captions [Line Items] | ||||
Total operating revenues | 430,548 | 463,474 | 1,110,411 | 1,414,421 |
Total operating costs and expenses | (468,554) | (551,204) | (2,853,205) | (1,532,795) |
Income (loss) from operations | (38,006) | (87,730) | (1,742,794) | (118,374) |
Interest expense | (846) | 0 | (2,540) | 0 |
Loss on extinguishment of debt | 0 | 0 | ||
Other, net | (3,433) | 524 | (10,302) | (7,875) |
Income (loss) before income taxes | (42,285) | (87,206) | (1,755,636) | (126,249) |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Net income (loss) | $ (42,285) | $ (87,206) | $ (1,755,636) | $ (126,249) |
Subsidiary Guarantors (Conden67
Subsidiary Guarantors (Condensed Consolidating Statement Of Cash Flows) (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows provided by (used in) operating activities | $ 437,301 | $ 760,593 |
Net cash flows provided by (used in) investing activities | (201,226) | (1,823,828) |
Net cash flows provided by (used in) financing activities | 694,314 | 1,063,234 |
Net increase (decrease) in cash and cash equivalents | 930,389 | (1) |
Cash and cash equivalents at beginning of period | 228,550 | 21 |
Cash and cash equivalents at end of period | 1,158,939 | 20 |
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 | (1,276,047) | (1,489,475) |
Net cash flows provided by (used in) investing activities | 582,043 | 443,441 |
Net cash flows provided by (used in) financing activities | 694,314 | 1,046,034 |
Net increase (decrease) in cash and cash equivalents | 310 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 310 | 0 |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements Captions [Line Items] | ||
Net cash flows provided by (used in) operating activities | 1,713,348 | 2,250,068 |
Net cash flows provided by (used in) investing activities | (783,269) | (2,267,269) |
Net cash flows provided by (used in) financing activities | 0 | 17,200 |
Net increase (decrease) in cash and cash equivalents | 930,079 | (1) |
Cash and cash equivalents at beginning of period | 228,550 | 21 |
Cash and cash equivalents at end of period | $ 1,158,629 | $ 20 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Detail) - USD ($) shares in Thousands, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Subsequent Event [Line Items] | |||
Common stock issued in business combination (Shares) | 3,900 | 2,214 | |
Common stock issued in business combination | $ 500,000 | $ 230,828 | $ 0 |
Total consideration paid to acquire | 1,700,000 | ||
Cash consideration paid for acquisition | $ 1,200,000 | $ 145,700 |
Subsequent Events (New Commodit
Subsequent Events (New Commodity Derivative Contracts) (Detail) - Minimum [Member] | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018MMBTUbbl$ / bbl$ / MMBTU | Sep. 30, 2018MMBTUbbl$ / bbl$ / MMBTU | Jun. 30, 2018MMBTUbbl$ / bbl$ / MMBTU | Mar. 31, 2018MMBTUbbl$ / bbl$ / MMBTU | 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 | Dec. 31, 2018MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2017MMBTUbbl$ / bbl$ / MMBTU | Dec. 31, 2016MMBTUbbl$ / bbl$ / MMBTU | ||
Oil Swaps [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Volume - Current Year | bbl | [1] | 5,054,000 | 5,054,000 | ||||||||||
Price - Current Year | $ / bbl | [1] | 59.38 | 59.38 | ||||||||||
Volume - Year One | bbl | [1] | 4,679,500 | 4,987,400 | 5,359,200 | 5,839,400 | 20,865,500 | |||||||
Price - Year One | $ / bbl | [1] | 51.23 | 50.96 | 58.56 | 57.9 | 54.91 | |||||||
Volume - Year Two | bbl | [1] | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | 12,000,000 | |||||||
Price - Year Two | $ / bbl | [1] | 49.4 | 49.4 | 49.4 | 49.4 | 49.4 | |||||||
Oil Basis Swaps [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Volume - Current Year | bbl | [2] | 5,060,000 | 5,060,000 | ||||||||||
Price - Current Year | $ / bbl | [2] | (1.48) | (1.48) | ||||||||||
Volume - Year One | bbl | [2] | 4,324,000 | 4,324,000 | 5,368,000 | 5,838,000 | 19,854,000 | |||||||
Price - Year One | $ / bbl | [2] | (0.47) | (0.47) | (1.1) | (1.06) | (0.81) | |||||||
Natural Gas Swap [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Volume - Current Year | MMBTU | [3] | 7,360,000 | 7,360,000 | ||||||||||
Price - Current Year | $ / MMBTU | [3] | 3.02 | 3.02 | ||||||||||
Volume - Year One | MMBTU | [3] | 10,580,000 | 10,770,441 | 11,531,642 | 12,335,315 | 45,217,398 | |||||||
Price - Year One | $ / MMBTU | [3] | 3.01 | 3.02 | 3.02 | 3.03 | 3.02 | |||||||
Subsequent Event [Member] | Oil Swaps [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Volume - Year One | bbl | [1] | 785,580 | 866,970 | 989,280 | 1,021,470 | 3,663,300 | |||||||
Price - Year One | $ / bbl | [1] | 52.95 | 52.9 | 52.76 | 52.64 | 52.8 | |||||||
Volume - Year Two | bbl | [1] | 648,700 | 710,310 | 783,340 | 665,190 | 2,807,540 | |||||||
Price - Year Two | $ / bbl | [1] | 54.42 | 54.39 | 54.37 | 54.46 | 54.41 | |||||||
Subsequent Event [Member] | Oil Basis Swaps [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Volume - Year One | bbl | [2] | 644,000 | 644,000 | 455,000 | 450,000 | 2,193,000 | |||||||
Price - Year One | $ / bbl | [2] | (0.6) | (0.6) | (0.6) | (0.6) | (0.6) | |||||||
Subsequent Event [Member] | Natural Gas Swap [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Volume - Year Two | MMBTU | [3] | 1,840,000 | 1,840,000 | 1,820,000 | 1,800,000 | 7,300,000 | |||||||
Price - Year Two | $ / MMBTU | [3] | 3.01 | 3.01 | 3.01 | 3.01 | 3.01 | |||||||
[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 | Sep. 30, 2016 | Dec. 31, 2015 |
Disclosure Supplementary Information Capitalized Costs [Abstract] | ||
Proved | $ 15,822,815 | $ 14,940,259 |
Unproved | 946,454 | 906,048 |
Accumulated depletion and depreciation | (7,403,505) | (5,047,810) |
Net capitalized costs for oil and natural gas properties | $ 9,365,764 | $ 10,798,497 |
Supplementary Information (Cost
Supplementary Information (Costs Incurred For Oil And Natural Gas Producing Activities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Supplementary Information Costs Incurred For Oil And Natural Gas Producing Activities [Abstract] | ||||
Proved | $ 546 | $ 56,636 | $ 256,655 | $ 58,879 |
Unproved | 15,079 | 161,921 | 172,486 | 195,971 |
Exploration | 176,687 | 201,737 | 513,109 | 973,957 |
Development | 96,977 | 99,490 | 287,120 | 622,644 |
Total costs incurred for oil and natural gas properties | $ 289,289 | $ 519,784 | $ 1,229,370 | $ 1,851,451 |