Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'LEGACY RESERVES LP | ' |
Entity Central Index Key | '0001358831 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 57,564,767 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash | $2,972 | $2,584 |
Accounts receivable, net: | ' | ' |
Oil and natural gas | 59,614 | 47,429 |
Joint interest owners | 15,957 | 16,532 |
Other | 529 | 626 |
Fair value of derivatives (Notes 5 and 6) | 2,266 | 3,801 |
Prepaid expenses and other current assets | 4,100 | 3,727 |
Total current assets | 85,438 | 74,699 |
Oil and natural gas properties using the successful efforts method, at cost: | ' | ' |
Proved properties | 2,287,952 | 2,265,788 |
Unproved properties | 58,611 | 58,392 |
Accumulated depletion, depreciation, amortization and impairment | -821,762 | -788,751 |
Total assets | 1,524,801 | 1,535,429 |
Other property and equipment, net of accumulated depreciation and amortization of $6,368 and $6,053, respectively | 3,604 | 3,688 |
Deposits on pending acquisitions | 11,200 | 0 |
Operating rights, net of amortization of $4,145 and $4,024, respectively | 2,871 | 2,992 |
Fair value of derivatives (Notes 5 and 6) | 15,925 | 21,292 |
Other assets, net of amortization of $10,652 and $10,097, respectively | 16,811 | 17,641 |
Investments in equity method investees | 3,880 | 4,092 |
Total assets | 1,664,530 | 1,659,833 |
Current liabilities: | ' | ' |
Accounts payable | 8,147 | 6,016 |
Accrued oil and natural gas liabilities (Note 1) | 73,872 | 63,161 |
Fair value of derivatives (Notes 5 and 6) | 15,403 | 10,060 |
Asset retirement obligation (Note 7) | 2,610 | 2,610 |
Other (Note 9) | 19,010 | 12,043 |
Total current liabilities | 119,042 | 93,890 |
Long-term debt (Note 2) | 891,149 | 878,693 |
Asset retirement obligation (Note 7) | 174,345 | 173,176 |
Fair value of derivatives (Notes 5 and 6) | 1,438 | 2,119 |
Other long-term liabilities | 1,528 | 1,559 |
Total liabilities | 1,187,502 | 1,149,437 |
Commitments and contingencies (Note 4) | ' | ' |
Unitholders' equity: | ' | ' |
Limited partners' equity - 57,340,928 and 57,280,049 units issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 476,954 | 510,322 |
General partner's equity (approximately 0.03%) | 74 | 74 |
Total unitholders' equity | 477,028 | 510,396 |
Total liabilities and unitholders' equity | $1,664,530 | $1,659,833 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Other property and equipment, accumulated depreciation and amortization | $6,368 | $6,053 |
Operating rights, amortization | 4,145 | 4,024 |
Other assets, amortization | $10,652 | $10,097 |
Limited partners' equity, units issued (in shares) | 57,340,928 | 57,280,049 |
Limited partners' equity, units outstanding (in shares) | 57,340,928 | 57,280,049 |
General partner's equity, percent | 0.03% | 0.03% |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Oil sales | $102,055 | $90,357 |
Natural gas liquids (NGL) sales | 3,965 | 3,342 |
Natural gas sales | 19,883 | 15,180 |
Total revenues | 125,903 | 108,879 |
Expenses: | ' | ' |
Oil and natural gas production | 42,534 | 35,351 |
Production and other taxes | 7,955 | 6,927 |
General and administrative | 7,647 | 6,281 |
Depletion, depreciation, amortization and accretion | 33,697 | 41,652 |
Impairment of long-lived assets | 1,412 | 1,743 |
(Gain) loss on disposal of assets | 2,301 | -219 |
Total expenses | 95,546 | 91,735 |
Operating income | 30,357 | 17,144 |
Other income (expense): | ' | ' |
Interest income | 223 | 8 |
Interest expense (Notes 2, 5 and 6) | -13,939 | -10,692 |
Equity in income (loss) of equity method investees | -8 | 44 |
Net losses on commodity derivatives (Notes 5 and 6) | -15,886 | -13,005 |
Other | 93 | 7 |
Income (loss) before income taxes | 840 | -6,494 |
Income tax expense | -314 | -211 |
Net income (loss) | $526 | ($6,705) |
Income (loss) per unit - basic and diluted (Note 8) (in dollars per share) | $0.01 | ($0.12) |
Weighted average number of units used in computing net income (loss) per unit - | ' | ' |
Basic (in shares) | 57,309 | 57,077 |
Diluted (in shares) | 57,367 | 57,077 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Unitholders Equity (USD $) | Total | General Partner | Limited Partner |
In Thousands, except Share data, unless otherwise specified | |||
Unitholders equity, beginning balance at Dec. 31, 2013 | $510,396 | $74 | $510,322 |
Unitholders equity, beginning balance (in shares) at Dec. 31, 2013 | ' | ' | 57,280,000 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ' | ' | ' |
Unit-based compensation | 462 | 0 | 462 |
Vesting of restricted and phantom units (in shares) | ' | ' | 61,000 |
Offering costs associated with the issuance of units | -105 | 0 | -105 |
Distributions to unitholders, $0.59 per unit | -34,251 | 0 | -34,251 |
Net income | 526 | 0 | 526 |
Unitholders equity, ending balance at Mar. 31, 2014 | $477,028 | $74 | $476,954 |
Unitholders equity, ending balance (in shares) at Mar. 31, 2014 | ' | ' | 57,341,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Unitholders Equity (Parenthetical) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Statement of Partners' Capital [Abstract] | ' |
Distributions to unitholders (in dollars per share) | $0.59 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $526 | ($6,705) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depletion, depreciation, amortization and accretion | 33,697 | 41,652 |
Amortization of debt discount and issuance costs | 1,012 | 766 |
Impairment of long-lived assets | 1,412 | 1,743 |
Losses on derivatives | 15,175 | 11,560 |
Equity in (income) loss of equity method investees | 8 | -44 |
Distribution from equity method investee | 204 | 105 |
Unit-based compensation | 1 | 127 |
(Gain) loss on disposal of assets | 2,301 | -219 |
Changes in assets and liabilities: | ' | ' |
Increase in accounts receivable, oil and natural gas | -12,185 | -10,064 |
(Increase) decrease in accounts receivable, joint interest owners | 575 | -4,346 |
Decrease in accounts receivable, other | 97 | 140 |
(Increase) decrease in other assets | -41 | 136 |
Increase in accrued oil and natural gas liabilities | 2,131 | 8,624 |
Increase in accrued oil and natural gas liabilities | 10,711 | 10,361 |
Increase in other liabilities | 4,545 | 1,754 |
Total adjustments | 59,643 | 62,295 |
Net cash provided by operating activities | 60,169 | 55,590 |
Cash flows from investing activities: | ' | ' |
Investment in oil and natural gas properties | -22,383 | -28,663 |
Increase in deposits on pending acquisitions | -11,200 | 0 |
Proceeds from sale of assets | 58 | 257 |
Investment in other equipment | -232 | -287 |
Net cash settlements on commodity derivatives | -3,610 | 2,635 |
Net cash used in investing activities | -37,367 | -26,058 |
Cash flows from financing activities: | ' | ' |
Proceeds from long-term debt | 126,000 | 86,000 |
Payments of long-term debt | -114,000 | -84,000 |
Payments of debt issuance costs | -58 | -44 |
Offering costs associated with the issuance of units | -105 | 0 |
Distributions to unitholders | -34,251 | -32,645 |
Redemption of investment | 0 | -11 |
Net cash used in financing activities | -22,414 | -30,700 |
Net increase (decrease) in cash and cash equivalents | 388 | -1,168 |
Cash and cash equivalents, beginning of period | 2,584 | 3,509 |
Cash and cash equivalents, end of period | 2,972 | 2,341 |
Non-cash investing and financing activities: | ' | ' |
Asset retirement obligations associated with property acquisitions | 0 | 523 |
Units issued in exchange for equity method investee | 0 | 4,001 |
Note receivable received in exchange for the sale of oil and natural gas properties | $0 | $11,857 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ||||||||
(a) | Organization, Basis of Presentation and Description of Business | |||||||
Legacy Reserves LP ("LRLP," "Legacy" or the "Partnership") and, unless the context indicates otherwise, its affiliated entities, are referred to as Legacy in these financial statements. | ||||||||
The accompanying condensed consolidated financial statements have been prepared on the accrual basis of accounting whereby revenues are recognized when earned, and expenses are recognized when incurred. These condensed consolidated financial statements as of March 31, 2014 and for the three months ended March 31, 2014 and 2013 are unaudited. In the opinion of management, such financial statements include the adjustments and accruals, all of which are of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year. | ||||||||
Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in connection with the consolidated financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||
LRLP, a Delaware limited partnership, was formed by its general partner, Legacy Reserves GP, LLC (“LRGPLLC”), on October 26, 2005 to own and operate oil and natural gas properties. LRGPLLC is a Delaware limited liability company formed on October 26, 2005, and owns an approximate 0.03% general partner interest in LRLP. | ||||||||
Significant information regarding rights of the limited partners includes the following: | ||||||||
•Right to receive, within 45 days after the end of each quarter, distributions of available cash, if distributions are declared. | ||||||||
•No limited partner shall have any management power over LRLP’s business and affairs; the general partner shall conduct, direct and manage LRLP’s activities. | ||||||||
•The general partner may be removed if such removal is approved by the unitholders holding at least 66 2/3 percent of the outstanding units, including units held by LRGPLLC and its affiliates, provided that a unit majority has elected a successor general partner. | ||||||||
•Right to receive information reasonably required for tax reporting purposes within 90 days after the close of the calendar year. | ||||||||
In the event of liquidation, all property and cash in excess of that required to discharge all liabilities will be distributed to the unitholders and LRGPLLC in proportion to their capital account balances, as adjusted to reflect any gain or loss upon the sale or other disposition of Legacy’s assets in liquidation. | ||||||||
Legacy owns and operates oil and natural gas producing properties located primarily in the Permian Basin (West Texas and Southeast New Mexico), Mid-Continent and Rocky Mountain regions of the United States. | ||||||||
(b) | Accrued Oil and Natural Gas Liabilities | |||||||
Below are the components of accrued oil and natural gas liabilities as of March 31, 2014 and December 31, 2013. | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revenue payable | $ | 31,585 | $ | 21,686 | ||||
Accrued lease operating expense | 10,882 | 11,914 | ||||||
Accrued capital expenditures | 13,722 | 10,409 | ||||||
Accrued ad valorem tax | 6,794 | 9,459 | ||||||
Other | 10,889 | 9,693 | ||||||
$ | 73,872 | $ | 63,161 | |||||
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
Long-Term Debt | |||||||||
Long-term debt consists of the following as of March 31, 2014 and December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Credit Facility due 2016 | $ | 360,000 | $ | 348,000 | |||||
8% Senior Notes due 2020 | 300,000 | 300,000 | |||||||
6.625% Senior Notes due 2021 | 250,000 | 250,000 | |||||||
910,000 | 898,000 | ||||||||
Unamortized discount on Senior Notes | (18,851 | ) | (19,307 | ) | |||||
Total Long-Term Debt | $ | 891,149 | $ | 878,693 | |||||
Credit Facility | |||||||||
On March 10, 2011, Legacy entered into an amended and restated five-year $1 billion secured revolving credit facility with BNP Paribas as administrative agent (as amended, the "Credit Agreement"). Effective April 20, 2012, Wells Fargo Bank, National Association ("Wells Fargo"), replaced BNP Paribas as administrative agent as a result of the sale of BNP Paribas' energy lending practice to Wells Fargo. Borrowings under the Credit Agreement mature on March 10, 2016. The amount available for borrowing at any one time is limited to the borrowing base currently set at $800 million. As discussed in Note 11 - Subsequent Events, the Credit Agreement was amended and restated on April 1, 2014. | |||||||||
As of March 31, 2014, Legacy had outstanding borrowings of $360 million at a weighted-average interest rate of 2.25% and approximately $439.9 million of availability remaining under the Credit Agreement. For the three-month period ended March 31, 2014, Legacy paid in cash $2.6 million of interest expense on the Credit Agreement. | |||||||||
At March 31, 2014, Legacy was in compliance with all covenants of the Credit Agreement. | |||||||||
8% Senior Notes Due 2020 | |||||||||
On December 4, 2012, Legacy and its 100% owned subsidiary Legacy Reserves Finance Corporation completed a private placement offering to eligible purchasers of an aggregate principal amount of $300 million of our 8% Senior Notes due 2020 (the "2020 Senior Notes"). The 2020 Senior Notes were issued at 97.848% of par. Legacy received approximately $286.7 million of net cash proceeds, after deducting the discount to initial purchasers and offering expenses payable by Legacy. During the three months ended March 31, 2014, Legacy amortized $0.3 million of this discount. | |||||||||
Legacy will have the option to redeem the 2020 Senior Notes, in whole or in part, at any time on or after December 1, 2016, at the specified redemption prices set forth below together with any accrued and unpaid interest, if any, to the date of redemption if redeemed during the twelve-month period beginning on December 1 of the years indicated below. | |||||||||
Year | Percentage | ||||||||
2016 | 104 | % | |||||||
2017 | 102 | % | |||||||
2018 and thereafter | 100 | % | |||||||
Prior to December 1, 2016, Legacy may redeem all or any part of the 2020 Senior Notes at the “make-whole” redemption price as defined in the indenture. In addition, prior to December 1, 2015, Legacy may at its option, redeem up to 35% of the aggregate principal amount of the 2020 Senior Notes at the redemption price of 108% with the net proceeds of a public or private equity offering. Legacy may be required to offer to repurchase the 2020 Senior Notes at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, in the event of a change of control as defined by the indenture. Legacy's and Legacy Reserves Finance Corporation's obligations under the 2020 Senior Notes are guaranteed by its 100% owned subsidiaries Legacy Reserves Operating GP, LLC, Legacy Reserves Operating LP and Legacy Reserves Services, Inc., which constitute all of Legacy's wholly-owned subsidiaries other than Legacy Reserves Finance Corporation. In the future, the guarantees may be released or terminated under the following circumstances: (i) in connection with any sale or other disposition of all or substantially all of the properties of the guarantor; (ii) in connection with any sale or other disposition of sufficient capital stock of the guarantor so that it no longer qualifies as our Restricted Subsidiary (as defined in the indenture); (iii) if designated to be an unrestricted subsidiary; (iv) upon legal defeasance, covenant defeasance or satisfaction and discharge of the indenture; (v) upon the liquidation or dissolution of the guarantor provided no default or event of default has occurred or is occurring; (vi) at such time the guarantor does not have outstanding guarantees of its, or any other guarantor's, other, debt; or (vii) upon merging into, or transferring all of its properties to Legacy or another guarantor and ceasing to exist. Refer to Note 11 - Subsidiary Guarantors for further details on Legacy's guarantors. | |||||||||
The indenture governing the 2020 Senior Notes limits Legacy's ability and the ability of certain of its subsidiaries to (i) sell assets; (ii) pay distributions on, repurchase or redeem equity interests or purchase or redeem Legacy's subordinated debt, provided that such subsidiaries may pay dividends to the holders of their equity interests (including Legacy) and Legacy may pay distributions to the holders of its equity interests subject to the absence of certain defaults, the satisfaction of a fixed charge coverage ratio test and so long as the amount of such distributions does not exceed the sum of available cash (as defined in the partnership agreement) at Legacy, net proceeds from the sales of certain securities and return of or reductions to capital from restricted investments; (iii) make certain investments; (iv) incur or guarantee additional indebtedness or issue preferred units; (v) create or incur certain liens; (vi) enter into agreements that restrict distributions or other payments from certain of its subsidiaries to Legacy; (vii) consolidate, merge or transfer all or substantially all of Legacy's assets; (viii) engage in certain transactions with affiliates; (ix) create unrestricted subsidiaries; and (x) engage in certain business activities. These covenants are subject to a number of important exceptions and qualifications. If at any time when the 2020 Senior Notes are rated investment grade by each of Moody's Investors Service, Inc. and Standard & Poor's Ratings Services and no Default (as defined in the indenture) has occurred and is continuing, many of such covenants will terminate and Legacy and its subsidiaries will cease to be subject to such covenants. The indenture also includes customary events of default. The Partnership is in compliance with all financial and other covenants of the 2020 Senior Notes. | |||||||||
Interest is payable on June 1 and December 1 of each year. | |||||||||
6.625% Senior Notes Due 2021 | |||||||||
On May 28, 2013, Legacy and its 100% owned subsidiary Legacy Reserves Finance Corporation completed a private placement offering to eligible purchasers of an aggregate principal amount of $250 million of our 6.625% Senior Notes due 2021 (the "2021 Senior Notes"). The 2021 Senior Notes were issued at 98.405% of par. Legacy received approximately $240.7 million of net cash proceeds, after deducting the discount to initial purchasers and offering expenses payable by Legacy. During the three months ended March 31, 2014, Legacy amortized $0.2 million of this discount. | |||||||||
The terms of the 2021 Senior Notes, including details related to our guarantors, are substantially identical to the terms of the 2020 Senior Notes with the exception of the interest rate and redemption provisions noted below. Legacy will have the option to redeem the 2021 Senior Notes, in whole or in part, at any time on or after June 1, 2017, at the specified redemption prices set forth below together with any accrued and unpaid interest, if any, to the date of redemption if redeemed during the twelve-month period beginning on June 1 of the years indicated below. | |||||||||
Year | Percentage | ||||||||
2017 | 103.313 | % | |||||||
2018 | 101.656 | % | |||||||
2019 and thereafter | 100 | % | |||||||
Prior to June 1, 2017, Legacy may redeem all or any part of the 2021 Senior Notes at the “make-whole” redemption price as defined in the indenture. In addition, prior to June 1, 2016, Legacy may at its option, redeem up to 35% of the aggregate principal amount of the 2021 Senior Notes at the redemption price of 106.625% with the net proceeds of a public or private equity offering. Legacy may be required to offer to repurchase the 2021 Senior Notes at a purchase price of 101% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, in the event of a change of control as defined by the indenture. The Partnership is in compliance with all financial and other covenants of the 2021 Senior Notes. | |||||||||
Interest is payable on June 1 and December 1 of each year. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
Cary D. Brown, Chairman, President and Chief Executive Officer of LRGPLLC, Kyle A. McGraw, Director and Executive Vice President and Chief Development Officer of LRGPLLC and Dale Brown, Director of LRGPLLC, own interests in partnerships which, in turn, own a combined non-controlling 4.12% interest as limited partners in a partnership which owns the building that Legacy occupies. Monthly rent is $58,995, without respect to property taxes and insurance. The lease expires in September 2015. | |
During the year ended December 31, 2012, Legacy acquired a 5% working interest in prospective Cline Shale acreage from FireWheel Energy, LLC ("FireWheel"), the operator of the properties, for $7.2 million. During the year ended December 31, 2013, Legacy acquired a 5% working interest in additional acreage from Firewheel for $1.2 million. FireWheel is a private-equity funded oil and natural gas exploration company in which Alan Brown, son of Dale Brown, a director of Legacy, and brother of Cary D. Brown, is a principal. The interests acquired by Legacy were marketed to numerous industry participants and are governed by an industry standard Participation Agreement and Joint Operating Agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
From time to time Legacy is a party to various legal proceedings arising in the ordinary course of business. While the outcome of lawsuits cannot be predicted with certainty, Legacy is not currently a party to any proceeding that it believes could have a potential material adverse effect on its financial condition, results of operations or cash flows. | |
Legacy is subject to numerous laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. To the extent laws are enacted or other governmental action is taken that restricts drilling or imposes environmental protection requirements that result in increased costs to the oil and natural gas industry in general, the business and prospects of Legacy could be adversely affected. | |
Legacy has employment agreements with its officers that specify that if the officer is terminated by Legacy for other than cause or following a change in control, the officer shall receive severance pay ranging from 24 to 36 months salary plus bonus and COBRA benefits, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
As defined in Financial Accounting Standards Board ("FASB") ASC 820-10, fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10 requires disclosure that establishes a framework for measuring fair value and expands disclosure about fair value measurements. The statement requires fair value measurements be classified and disclosed in one of the following categories: | |||||||||||||||||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Legacy considers active markets as 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 Legacy values using observable market data. Substantially all of these inputs are observable in the marketplace throughout the term of the derivative instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include non-exchange traded derivatives such as over-the-counter commodity price swaps and interest rate swaps as well as long-term incentive plan liabilities calculated using the Black-Scholes model to estimate the fair value as of the measurement date. | ||||||||||||||||
Level 3: | Measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources (i.e. supported by little or no market activity). Legacy’s valuation models are primarily industry standard models that consider various inputs including: (a) quoted forward prices for commodities, (b) time value, and (c) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Level 3 instruments primarily include derivative instruments, such as natural gas derivative swaps for those derivatives indexed to the West Texas Waha, ANR-Oklahoma and CIG indices, enhanced swaps, commodity collars and Midland-Cushing crude oil differential swaps. Although Legacy utilizes third party broker quotes to assess the reasonableness of its prices and valuation techniques, Legacy does not have sufficient corroborating evidence to support classifying these assets and liabilities as Level 2. | ||||||||||||||||
As required by ASC 820-10, financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Legacy’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||||||||||
Fair Value on a Recurring Basis | |||||||||||||||||
The following table sets forth by level within the fair value hierarchy Legacy’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014: | |||||||||||||||||
Fair Value Measurements at March 31, 2014 Using | |||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Carrying Value as of | ||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | March 31, 2014 | |||||||||||||
(In thousands) | |||||||||||||||||
LTIP liability (a) | $ | — | $ | (1,756 | ) | $ | — | $ | (1,756 | ) | |||||||
Oil and natural gas swaps | — | (9,155 | ) | 2,255 | (6,900 | ) | |||||||||||
Oil and natural gas collars | — | — | 12,297 | 12,297 | |||||||||||||
Interest rate swaps | — | (4,047 | ) | — | (4,047 | ) | |||||||||||
Total | $ | — | $ | (14,958 | ) | $ | 14,552 | $ | (406 | ) | |||||||
(a) | See Note 9 for further discussion on unit-based compensation expenses and the related Long-Term Incentive Plan ("LTIP") liability for certain grants accounted for under the liability method. | ||||||||||||||||
Legacy estimates the fair values of the swaps based on published forward commodity price curves for the underlying commodities as of the date of the estimate for those commodities for which published forward pricing is readily available. For those commodity derivatives for which forward commodity price curves are not readily available, Legacy estimates, with the assistance of third-party pricing experts, the forward curves as of the date of the estimate. Legacy validates the data provided by third parties by understanding the pricing models used, obtaining market values from other pricing sources, analyzing pricing data in certain situations and confirming, where applicable, that those securities trade in active markets. Legacy estimates the option value of puts and calls combined into hedges, including three-way collars and enhanced swaps using an option pricing model which takes into account market volatility, market prices, contract parameters and discount rates based on published LIBOR rates and interest swap rates. Due to the lack of an active market for periods beyond one-month from the balance sheet date for our oil price differential swaps, Legacy has reviewed historical differential prices and known economic influences to estimate a reasonable forward curve of future pricing scenarios based upon these factors. In order to estimate the fair value of our interest rate swaps, Legacy uses a yield curve based on money market rates and interest rate swaps, extrapolates a forecast of future interest rates, estimates each future cash flow, derives discount factors to value the fixed and floating rate cash flows of each swap, and then discounts to present value all known (fixed) and forecasted (floating) swap cash flows. Curve building and discounting techniques used to establish the theoretical market value of interest bearing securities are based on readily available money market rates and interest swap market data. The determination of the fair values above incorporates various factors including the impact of our non-performance risk and the credit standing of the counterparties involved in the Partnership’s derivative contracts. The risk of nonperformance by the Partnership’s counterparties is mitigated by the fact that such current counterparties (or their affiliates) are also current or former bank lenders under the Partnership’s revolving credit facility. In addition, Legacy routinely monitors the creditworthiness of its counterparties. As the factors described above are based on significant assumptions made by management, these assumptions are the most sensitive to change. | |||||||||||||||||
The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: | |||||||||||||||||
Significant Unobservable Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Beginning balance | $ | 20,615 | $ | 29,966 | |||||||||||||
Total losses | (6,740 | ) | (7,221 | ) | |||||||||||||
Settlements, net | 677 | (3,931 | ) | ||||||||||||||
Ending balance | $ | 14,552 | $ | 18,814 | |||||||||||||
Losses included in earnings relating to derivatives still held as of March 31, 2014 and 2013 | $ | (5,622 | ) | $ | (11,171 | ) | |||||||||||
During periods of market disruption, including periods of volatile oil and natural gas prices, rapid credit contraction or | |||||||||||||||||
illiquidity, it may be difficult to value certain of the Partnership's derivative instruments if trading becomes less frequent and/or | |||||||||||||||||
market data becomes less observable. There may be certain asset classes that were previously in active markets with observable data that become illiquid due to changes in the financial environment. In such cases, more derivative instruments may fall to Level 3 and thus require more subjectivity and management judgment. As such, valuations may include inputs and assumptions that are less observable or require greater estimation as well as valuation methods which are more sophisticated or require greater estimation thereby resulting in valuations with less certainty. Further, rapidly changing commodity and unprecedented credit and equity market conditions could materially impact the valuation of derivative instruments as reported within our consolidated financial statements and the period-to-period changes in value could vary significantly. Decreases in value may have a material adverse effect on our results of operations or financial condition | |||||||||||||||||
Fair Value on a Non-Recurring Basis | |||||||||||||||||
Nonfinancial assets and liabilities measured at fair value on a non-recurring basis include certain nonfinancial assets and liabilities as may be acquired in a business combination and thereby measured at fair value; measurements of oil and natural gas property impairments; and the initial recognition of asset retirement obligations ("ARO") for which fair value is used. These ARO estimates are derived from historical costs as well as management’s expectation of future cost environments. As there is no corroborating market activity to support the assumptions used, Legacy has designated these liabilities as Level 3. A reconciliation of the beginning and ending balances of Legacy’s asset retirement obligation is presented in Note 7. | |||||||||||||||||
Assets measured at fair value during the three-month period ended March 31, 2014 include: | |||||||||||||||||
Fair Value Measurements at March 31, 2014 Using | |||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Impairment (a) | $ | — | $ | — | $ | 2,019 | |||||||||||
Acquisitions (b) | $ | — | $ | — | $ | 588 | |||||||||||
(a) | Legacy reviews oil and natural gas properties for impairment when facts and circumstances indicate that their carrying value may not be recoverable. Legacy compares net capitalized costs of proved oil and natural gas properties to estimated undiscounted future net cash flows using management’s expectations of future oil and natural gas prices. These future price scenarios reflect Legacy’s estimation of future price volatility. During the three-month period ended March 31, 2014, Legacy incurred impairment charges of $1.4 million as oil and natural gas properties with a net cost basis of $3.4 million were written down to their fair value of $2.0 million. In order to determine fair value, Legacy compares net capitalized costs of proved oil and natural gas properties to estimated undiscounted future net cash flows using management’s expectations of future oil and natural gas prices. These future price scenarios reflect Legacy’s estimation of future price volatility. If the net capitalized cost exceeds the undiscounted future net cash flows, Legacy writes the net cost basis down to the discounted future net cash flows, which is management's estimate of fair value. Significant inputs used to determine the fair value include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a market-based weighted average cost of capital rate. The underlying commodity prices embedded in the Company's estimated cash flows are the product of a process that begins with NYMEX forward curve pricing, adjusted for estimated location and quality differentials, as well as other factors that Legacy's management believes will impact realizable prices. The inputs used by management for the fair value measurements utilized in this review include significant unobservable inputs, and therefore, the fair value measurements employed are classified as Level 3 for these types of assets. | ||||||||||||||||
(b) | Assets and liabilities acquired in a business combination are recorded at fair value. During the three-month period ended March 31, 2014, Legacy acquired oil and natural gas properties, inclusive of unproved acreage acquisitions, with a fair value of $0.6 million in several individually immaterial transactions. Properties acquired are recorded at fair value, which correlates to the discounted future net cash flow. Significant inputs used to determine the fair value include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a market-based weighted average cost of capital rate. The underlying commodity prices embedded in the Company's estimated cash flows are the product of a process that begins with NYMEX forward curve pricing, adjusted for estimated location and quality differentials, as well as other factors that Legacy's management believes will impact realizable prices. For acquired unproved properties, the market-based weighted average cost of capital rate is subjected to additional project specific risking factors. The inputs used by management for the fair value measurements of these acquired oil and natural gas properties include significant unobservable inputs, and therefore, the fair value measurements employed are classified as Level 3 for these types of assets. | ||||||||||||||||
The carrying amount of the revolving long-term debt of $360 million as of March 31, 2014 approximates fair value because Legacy's current borrowing rate does not materially differ from market rates for similar bank borrowings. Legacy has classified the revolving long-term debt as a Level 2 item within the fair value hierarchy. As of March 31, 2014, the fair values of the 2020 Senior Notes and the 2021 Senior Notes were $320.6 million and $250.2 million, respectively. As these valuations are based on unadjusted quoted prices in an active market, the fair values are classified as Level 1 items within the fair value hierarchy. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
Derivative Financial Instruments | ||||||||||||||
Commodity derivative transactions | ||||||||||||||
Due to the volatility of oil and natural gas prices, Legacy periodically enters into price-risk management transactions (e.g., swaps, enhanced swaps or collars) for a portion of its oil and natural gas production to achieve a more predictable cash flow, as well as to reduce exposure from price fluctuations. While the use of these arrangements limits Legacy’s ability to benefit from increases in the prices of oil and natural gas, it also reduces Legacy’s potential exposure to adverse price movements. Legacy’s arrangements, to the extent it enters into any, apply to only a portion of its production, provide only partial price protection against declines in oil and natural gas prices and limit Legacy’s potential gains from future increases in prices. None of these instruments are used for trading or speculative purposes. Each of these instruments was a costless contract with no upfront premium paid or payable to our counterparty. | ||||||||||||||
All of these price risk management transactions are considered derivative instruments. These derivative instruments are intended to reduce Legacy’s price risk and may be considered hedges for economic purposes, but Legacy has chosen not to designate them as cash flow hedges for accounting purposes. Therefore, all derivative instruments are recorded on the balance sheet at fair value with changes in fair value being recorded in current period earnings. | ||||||||||||||
By using derivative instruments to mitigate exposures to changes in commodity prices, Legacy exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes Legacy, which creates credit risk. Legacy minimizes the credit or repayment risk in derivative instruments by entering into transactions with high-quality counterparties, who currently are all current or former members of Legacy's lending group. | ||||||||||||||
The following table sets forth a reconciliation of the changes in fair value of Legacy's commodity derivatives for the three months ended March 31, 2014 and 2013. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Beginning fair value of commodity derivatives | $ | 17,673 | $ | 24,148 | ||||||||||
Total loss - oil derivatives | (12,260 | ) | (7,496 | ) | ||||||||||
Total loss - natural gas derivatives | (3,626 | ) | (5,509 | ) | ||||||||||
Crude oil derivative cash settlements paid (received) | 2,556 | (229 | ) | |||||||||||
Natural gas derivative cash settlements paid (received) | 1,054 | (2,406 | ) | |||||||||||
Ending fair value of commodity derivatives | $ | 5,397 | $ | 8,508 | ||||||||||
Certain of our commodity derivatives and interest rate derivatives are presented on a net basis on the Consolidated Balance Sheets. The following table summarizes the gross fair values of our derivative instruments, presenting the impact of offsetting the derivative assets and liabilities on our Consolidated Balance Sheets as of the dates indicated below (in thousands): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | ||||||||||||
Offsetting Derivative Assets: | (In thousands) | |||||||||||||
Commodity derivatives | $ | 35,172 | $ | (16,981 | ) | $ | 18,191 | |||||||
Interest rate derivatives | — | — | — | |||||||||||
Total derivative assets | $ | 35,172 | $ | (16,981 | ) | $ | 18,191 | |||||||
Offsetting Derivative Liabilities: | ||||||||||||||
Commodity derivatives | $ | (29,775 | ) | $ | 16,981 | $ | (12,794 | ) | ||||||
Interest rate derivatives | (4,047 | ) | — | (4,047 | ) | |||||||||
Total derivative liabilities | $ | (33,822 | ) | $ | 16,981 | $ | (16,841 | ) | ||||||
December 31, 2013 | ||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | ||||||||||||
Offsetting Derivative Assets: | (In thousands) | |||||||||||||
Commodity derivatives | $ | 46,356 | $ | (21,263 | ) | $ | 25,093 | |||||||
Interest rate derivatives | — | — | — | |||||||||||
Total derivative assets | $ | 46,356 | $ | (21,263 | ) | $ | 25,093 | |||||||
Offsetting Derivative Liabilities: | ||||||||||||||
Commodity derivatives | $ | (28,683 | ) | $ | 21,263 | $ | (7,420 | ) | ||||||
Interest rate derivatives | (4,759 | ) | — | (4,759 | ) | |||||||||
Total derivative liabilities | $ | (33,442 | ) | $ | 21,263 | $ | (12,179 | ) | ||||||
As of March 31, 2014, Legacy had the following NYMEX West Texas Intermediate ("WTI") crude oil swaps paying floating prices and receiving fixed prices for a portion of its future oil production as indicated below: | ||||||||||||||
Average | ||||||||||||||
Calendar Year | Volumes (Bbls) | Price per Bbl | Price Range per Bbl | |||||||||||
April-December 2014 | 2,204,220 | $93.19 | $87.50 | - | $101.50 | |||||||||
2015 | 545,351 | $91.98 | $88.50 | - | $100.20 | |||||||||
2016 | 228,600 | $87.94 | $86.30 | - | $99.85 | |||||||||
2017 | 182,500 | $84.75 | $84.75 | |||||||||||
As of March 31, 2014, Legacy had the following NYMEX WTI crude oil derivative three-way collar contracts that combine a long put, a short put and a short call as indicated below: | ||||||||||||||
Average Short | Average Long | Average Short | ||||||||||||
Calendar Year | Volumes (Bbls) | Put Price per Bbl | Put Price per Bbl | Call Price per Bbl | ||||||||||
April-December 2014 | 605,000 | $71.59 | $96.59 | $110.56 | ||||||||||
2015 | 1,308,500 | $64.67 | $89.67 | $112.21 | ||||||||||
2016 | 621,300 | $63.37 | $88.37 | $106.40 | ||||||||||
2017 | 72,400 | $60.00 | $85.00 | $104.20 | ||||||||||
As of March 31, 2014, Legacy had the following NYMEX WTI crude oil enhanced swap contracts that combine a short put, a long put and a fixed-price swap as indicated below: | ||||||||||||||
Average Long | Average Short | Average | ||||||||||||
Calendar Year | Volumes (Bbls) | Put Price per Bbl | Put Price per Bbl | Swap Price per Bbl | ||||||||||
2015 | 365,000 | $60.00 | $80.00 | $92.35 | ||||||||||
2016 | 183,000 | $57.00 | $82.00 | $91.70 | ||||||||||
2017 | 182,500 | $57.00 | $82.00 | $90.85 | ||||||||||
2018 | 127,750 | $57.00 | $82.00 | $90.50 | ||||||||||
As of March 31, 2014, Legacy had the following NYMEX WTI crude oil enhanced swap contracts that combine a short put and a fixed-price swap as indicated below: | ||||||||||||||
Average Short Put | Average Swap | |||||||||||||
Calendar Year | Volumes (Bbls) | Price per Bbl | Price per Bbl | |||||||||||
2015 | 365,000 | $70.00 | $92.03 | |||||||||||
As of March 31, 2014, Legacy had the following NYMEX West Texas Waha, ANR-OK and CIG-Rockies natural gas swaps paying floating natural gas prices and receiving fixed prices for a portion of its future natural gas production as indicated below: | ||||||||||||||
Average | Price | |||||||||||||
Calendar Year | Volumes (MMBtu) | Price per MMBtu | Range per MMBtu | |||||||||||
April-December 2014 | 6,128,903 | $4.31 | $3.61 | - | $6.47 | |||||||||
2015 | 4,669,300 | $4.58 | $4.15 | - | $5.82 | |||||||||
2016 | 1,419,200 | $4.30 | $4.12 | - | $5.30 | |||||||||
As of March 31, 2014, Legacy had the following NYMEX Henry Hub natural gas derivative three-way collar contracts that combine a long put, a short put and a short call as indicated below: | ||||||||||||||
Average Short Put | Average Long Put | Average Short Call | ||||||||||||
Calendar Year | Volumes (MMBtu) | Price per MMBtu | Price per MMBtu | Price per MMBtu | ||||||||||
2015 | 1,440,000 | $3.25 | $4.05 | $4.49 | ||||||||||
Interest rate derivative transactions | ||||||||||||||
Due to the volatility of interest rates, Legacy periodically enters into interest rate risk management transactions in the form of interest rate swaps for a portion of its outstanding debt balance. These transactions allow Legacy to reduce exposure to interest rate fluctuations. While the use of these arrangements limits Legacy’s ability to benefit from decreases in interest rates, it also reduces Legacy’s potential exposure to increases in interest rates. Legacy’s arrangements, to the extent it enters into any, apply to only a portion of its outstanding debt balance, provide only partial protection against interest rate increases and limit Legacy’s potential savings from future interest rate declines. It is never management’s intention to hold or issue derivative instruments for speculative trading purposes. Conditions sometimes arise where actual borrowings are less than notional amounts hedged, which has, and could result in overhedged amounts. | ||||||||||||||
Legacy accounts for these interest rate swaps at fair market value and included in the consolidated balance sheet as assets or liabilities. | ||||||||||||||
Legacy does not designate these derivatives as cash flow hedges, even though they reduce its exposure to changes in interest rates. Therefore, the mark-to-market of these instruments is recorded in current earnings as a component of interest expense. The total impact on interest expense from the mark-to-market and settlements was as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Beginning fair value of interest rate swaps | $ | (4,759 | ) | $ | (9,547 | ) | ||||||||
Total gain (loss) on interest rate swaps | (174 | ) | (336 | ) | ||||||||||
Cash settlements paid | 886 | 1,781 | ||||||||||||
Ending fair value of interest rate swaps | $ | (4,047 | ) | $ | (8,102 | ) | ||||||||
The table below summarizes the interest rate swap position as of March 31, 2014: | ||||||||||||||
Estimated Fair Market Value at | ||||||||||||||
Notional Amount | Fixed Rate | Effective Date | Maturity Date | March 31, 2014 | ||||||||||
(Dollars in thousands) | ||||||||||||||
$ | 29,000 | 3.07 | % | 10/16/07 | 10/16/15 | $ | (1,173 | ) | ||||||
$ | 13,000 | 3.112 | % | 11/16/07 | 11/16/15 | (566 | ) | |||||||
$ | 12,000 | 3.131 | % | 11/28/07 | 11/28/15 | (525 | ) | |||||||
$ | 50,000 | 0.71 | % | 8/10/11 | 8/10/14 | (103 | ) | |||||||
$ | 50,000 | 0.702 | % | 8/10/11 | 8/10/14 | (101 | ) | |||||||
$ | 50,000 | 2.5 | % | 10/10/08 | 10/10/15 | (1,579 | ) | |||||||
Total fair market value of interest rate derivatives | $ | (4,047 | ) |
Asset_Retirement_Obligation
Asset Retirement Obligation | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Asset Retirement Obligation [Abstract] | ' | ||||||||
Asset Retirement Obligation | ' | ||||||||
Asset Retirement Obligation | |||||||||
AROs associated with the retirement of a tangible long-lived asset are recognized as a liability in the period in which it is incurred and becomes determinable. Under this method, when liabilities for dismantlement and abandonment costs, excluding salvage values, are initially recorded, the carrying amount of the related oil and natural gas properties is increased. The fair value of the ARO asset and liability is measured using expected future cash outflows discounted at Legacy’s credit-adjusted risk-free interest rate. Accretion of the liability is recognized each period using the interest method of allocation, and the capitalized cost is depleted over the useful life of the related asset. | |||||||||
The following table reflects the changes in the ARO during the three months ended March 31, 2014 and year ended December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Asset retirement obligation - beginning of period | $ | 175,786 | $ | 162,183 | |||||
Liabilities incurred with properties acquired | — | 10,969 | |||||||
Liabilities incurred with properties drilled | — | 494 | |||||||
Liabilities settled during the period | (491 | ) | (2,441 | ) | |||||
Liabilities associated with properties sold | — | (1,606 | ) | ||||||
Current period accretion | 1,660 | 6,187 | |||||||
Asset retirement obligation - end of period | $ | 176,955 | $ | 175,786 | |||||
Income_Loss_Per_Unit
Income (Loss) Per Unit | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Income (Loss) Per Unit | ' | ||||||||
Income (Loss) Per Unit | |||||||||
The following table sets forth the computation of basic and diluted income (loss) per unit: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Income (loss) available to unitholders | $ | 526 | $ | (6,705 | ) | ||||
Weighted average number of units outstanding | 57,309 | 57,077 | |||||||
Effect of dilutive securities: | |||||||||
Restricted and phantom units | 58 | — | |||||||
Weighted average units and potential units outstanding | 57,367 | 57,077 | |||||||
Basic and diluted earnings (loss) per unit | $ | 0.01 | $ | (0.12 | ) | ||||
For the three months ended March 31, 2014, 201,643 and 289,977 restricted and phantom units, respectively, were excluded from the calculation of diluted earnings per unit due to their anti-dilutive effect. For the three months ended March 31, 2013, 425,120 restricted units were excluded from the calculation of diluted earnings per unit due to their anti-dilutive effect. |
UnitBased_Compensation
Unit-Based Compensation | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Unit-Based Compensation | ' | |||||||||||||
Unit-Based Compensation | ||||||||||||||
Long-Term Incentive Plan | ||||||||||||||
On March 15, 2006, the LTIP for Legacy was implemented for its employees, consultants and directors, its affiliates and its general partner. The awards under the LTIP may include unit grants, restricted units, phantom units, unit options and unit appreciation rights ("UARs"). The LTIP permits the grant of awards covering an aggregate of 2,000,000 units. As of March 31, 2014, grants of awards net of forfeitures and, in the case of UARs and phantom units, historical exercises covering 1,742,861 units had been made, comprised of 266,014 unit option awards, 609,208 UARs, 431,436 restricted unit awards, 323,965 phantom unit awards and 112,238 unit awards. The LTIP is administered by the compensation committee (the “Compensation Committee”) of the board of directors of LRGPLLC. | ||||||||||||||
The cost of employee services in exchange for an award of equity instruments is measured based on a grant-date fair value of the award (with limited exceptions), and that cost must generally be recognized over the vesting period of the award. However, if an entity that nominally has the choice of settling awards by issuing stock predominately settles in cash, or if an entity usually settles in cash whenever an employee asks for cash settlement, the entity is settling a substantive liability rather than repurchasing an equity instrument. Due to Legacy’s historical practice of settling options, UARs and certain phantom unit awards in cash, Legacy accounted for unit options, UARs and certain phantom unit awards by utilizing the liability method. The liability method requires companies to measure the cost of the employee services in exchange for a cash award based on the fair value of the underlying security at the end of each reporting period. Compensation cost is recognized based on the change in the liability between periods. However, during 2013, the Compensation Committee revised the executive compensation policy and amended certain historical phantom unit award agreements to eliminate the Compensation Committee's option of settling phantom unit awards for executive officers in cash. Due to the elimination of the cash settlement option, Legacy now accounts for executive phantom unit awards under the equity method as described in ASC 718. Legacy treated the amendment as a cancellation of the historical awards and a grant of new awards in the period, though the award amounts and vesting terms remained unchanged. | ||||||||||||||
Unit Appreciation Rights and Unit Options | ||||||||||||||
A UAR is a notional unit that entitles the holder, upon vesting, to receive cash valued at the difference between the closing price of units on the exercise date and the exercise price, as determined on the date of grant. Because these awards are settled in cash, Legacy is accounting for the UARs by utilizing the liability method. | ||||||||||||||
During the year ended December 31, 2013, Legacy issued 156,650 UARs to employees which vest ratably over a three-year period and 77,506 UARs to employees which vest at the end of a three-year period. During the three-month period ended March 31, 2014, Legacy issued 19,000 UARs to employees which vest ratably over a three-year period. All UARs granted in 2013 and 2014 expire seven years from the grant date and are exercisable when they vest. | ||||||||||||||
For the three-month periods ended March 31, 2014 and 2013, Legacy recorded $(0.2) million and $0.4 million, respectively, of compensation expense (benefit) due to the change in liability from December 31, 2013 and 2012, respectively, based on its use of the Black-Scholes model to estimate the March 31, 2014 and 2013 fair value of these UARs and unit options (see Note 5). As of March 31, 2014, there was a total of approximately $0.8 million of unrecognized compensation costs related to the unexercised and non-vested portion of these UARs. At March 31, 2014, this cost was expected to be recognized over a weighted-average period of approximately 2.13 years. Compensation expense is based upon the fair value as of March 31, 2014 and is recognized as a percentage of the service period satisfied. Based on historical data, Legacy has assumed a volatility factor of approximately 44% and employed the Black-Scholes model to estimate the March 31, 2014 fair value to be realized as compensation cost based on the percentage of service period satisfied. Based on historical data, Legacy has assumed an estimated forfeiture rate of 3.9%. Legacy will adjust the estimated forfeiture rate based upon actual experience. Legacy has assumed an annual distribution rate of $2.36 per unit. | ||||||||||||||
A summary of UAR and unit option activity for the three months ended March 31, 2014 is as follows: | ||||||||||||||
Units | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||
Outstanding at January 1, 2014 | 627,043 | $ | 25.99 | |||||||||||
Granted | 19,000 | 26.77 | ||||||||||||
Exercised | (17,500 | ) | 23.01 | |||||||||||
Forfeited | (19,335 | ) | 26.02 | |||||||||||
Outstanding at March 31, 2014 | 609,208 | $ | 26.1 | 5 | $ | 417,061 | ||||||||
Options and UARs exercisable at March 31, 2014 | 244,373 | $ | 24.37 | 3.7 | $ | 412,295 | ||||||||
The following table summarizes the status of Legacy’s non-vested UARs since January 1, 2014: | ||||||||||||||
Non-Vested UARs | ||||||||||||||
Number of Units | Weighted-Average Exercise Price | |||||||||||||
Non-vested at January 1, 2014 | 386,755 | $ | 27.21 | |||||||||||
Granted | 19,000 | 26.77 | ||||||||||||
Vested | (22,585 | ) | 26.39 | |||||||||||
Forfeited | (18,335 | ) | 26.89 | |||||||||||
Non-vested at March 31, 2014 | 364,835 | $ | 27.26 | |||||||||||
Legacy has used a weighted-average risk-free interest rate of 1.6% in its Black-Scholes calculation of fair value, which approximates the U.S. Treasury interest rates at March 31, 2014 whose terms are consistent with the expected life of the UARs and unit options. Expected life represents the period of time that UARs and unit options are expected to be outstanding and is based on Legacy’s best estimate. The following table represents the weighted-average assumptions used for the Black-Scholes option-pricing model. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | ||||||||||||||
Expected life (years) | 5.39 | |||||||||||||
Risk free interest rate | 1.6 | % | ||||||||||||
Annual distribution rate per unit | $2.36 | |||||||||||||
Volatility | 44 | % | ||||||||||||
Phantom Units | ||||||||||||||
Legacy has also issued phantom units under the LTIP to both executive officers, as described below, and certain other employees. A phantom unit is a notional unit that entitles the holder, upon vesting, to receive, in the case of non-executive employees, cash valued at the closing price of units on the vesting date, or, at the discretion of the Compensation Committee, the same number of Partnership units. Because Legacy’s current intent is to settle these non-executive phantom unit awards in cash, Legacy is accounting for these phantom units by utilizing the liability method. As mentioned above, in the case of executive employees, the Compensation Committee revised the historical grants for all executive phantom units to eliminate any election for cash payment. As these awards can now only be settled in Partnership units, Legacy is accounting for these phantom units by utilizing the equity method. | ||||||||||||||
On September 21, 2009, the board of directors of LRGPLLC, upon the recommendation of the Compensation Committee, implemented an equity-based incentive compensation policy applicable to the executive officers of Legacy. In addition to cash bonus awards, under the compensation plan, the executives are eligible for both subjective and objective grants of phantom units. The subjective, or service-based, grants may be awarded up to a maximum percentage of annual salary as determined by the Compensation Committee. Once granted, these phantom units vest ratably over a three-year period. The objective, or performance-based, grants may be awarded up to a maximum percentage of annual salary as determined by the Compensation Committee. However, the amount to vest each year for the three-year vesting period will be determined on each vesting date based on a three-step process, with the first two steps each comprising 50% of the total vesting amount while the third step is the sum of the first two steps. The first step in the process will be a function of Total Unitholder Return (“TUR”) for the Partnership and the percentage rank of the Legacy TUR among a peer group of upstream master limited partnerships, as determined by the Compensation Committee at the beginning of each year. In the second step, the Legacy TUR will be compared to the TUR of a group of master limited partnerships included in the Alerian MLP Index. The third step is the addition of the above two steps to determine the total performance-based awards to vest. On March 7, 2013, the board of directors of LRGPLLC, upon the recommendation of the Compensation Committee, approved a revised compensation policy (the “Revised Policy.”) This Revised Policy applies to incentive awards granted after the fiscal year ended 2013. While the Revised Policy measures TUR against both the peer group and Alerian MLP Index, the measurement periods were increased to a three-year cumulative measurement period with a corresponding increase in vesting from a ratable three-year vesting to three-year cliff vesting. Performance based phantom units subject to vesting which do not vest in a given year will be forfeited. With respect to both the subjective and objective units awarded under both compensation policies, distribution equivalent rights ("DERs") will accumulate and accrue based on the total number of actual amounts vested and will be payable at the date of vesting. However, due to the aforementioned revision for executive employees, accrued DERs paid at the date of vesting will be treated as distributions in the period paid rather than being recognized as compensation expense over the life of the award. | ||||||||||||||
On March 7, 2013, the Compensation Committee approved the award of 46,430 subjective, or service-based, phantom units and 76,723 objective, or performance based, phantom units to Legacy’s executive officers. On March 4, 2014, the Compensation Committee approved the award of 117,197 subjective, or service-based, phantom units and 102,572 objective, or performance based, phantom units to Legacy’s executive officers. | ||||||||||||||
Compensation expense (benefit) related to the phantom units and associated DERs was $0.3 million and $(0.8) million for the three months ended March 31, 2014 and 2013, respectively. | ||||||||||||||
Restricted Units | ||||||||||||||
During the year ended December 31, 2013, Legacy issued an aggregate of 85,728 restricted units to non-executive employees. These restricted units awarded mostly vest ratably over a three-year period all beginning on or around the date of grant. During the three-month period ended March 31, 2014, Legacy issued an aggregate of 2,475 restricted units to non-executive employees. These restricted units awarded vest ratably over a three-year period. Compensation expense related to restricted units was $0.5 million and $0.6 million for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, there was a total of $4.1 million of unrecognized compensation expense related to the unvested portion of these restricted units. At March 31, 2014, this cost was expected to be recognized over a weighted-average period of 2.5 years. Pursuant to the provisions of ASC 718, Legacy’s issued units, as reflected in the accompanying consolidated balance sheet at March 31, 2014, do not include 225,278 units related to unvested restricted unit awards. | ||||||||||||||
Board and Additional Executive Units | ||||||||||||||
On May 14, 2013, Legacy granted and issued 3,715 units to each of its five non-employee directors. The value of each unit was $27.39 at the time of issuance. |
Subsidiary_Guarantors
Subsidiary Guarantors | 3 Months Ended |
Mar. 31, 2014 | |
Guarantees [Abstract] | ' |
Subsidiary Guarantors | ' |
Subsidiary Guarantors | |
On September 6, 2011, we filed a post-effective amendment to a registration statement on Form S-3 with the Securities and Exchange Commission ("SEC") to register the issuance and sale of, among other securities, our debt securities, which may be co-issued by Legacy Reserves Finance Corporation. The registration statement also registered guarantees of debt securities by Legacy Reserves Operating GP, LLC, Legacy Reserves Operating LP and Legacy Reserves Services, Inc. The Partnership's 2020 Senior Notes were issued in a private offering on December 4, 2012 and were subsequently registered through a public exchange offer that closed on January 8, 2014. The Partnership's 2021 Senior Notes were issued in a private offering on May 28, 2013 and were subsequently registered through a public exchange offer that closed on March 18, 2014. The 2020 Senior Notes and the 2021 Senior Notes are guaranteed by our 100% owned subsidiaries Legacy Reserves Operating GP, LLC, Legacy Reserves Operating LP and Legacy Reserves Services, Inc., which constitute all of our wholly-owned subsidiaries other than Legacy Reserves Finance Corporation, and certain other future subsidiaries (the “Guarantors”, together with any future 100% owned subsidiaries that guarantee the Partnership's 2020 Senior Notes and 2021 Senior Notes, the “Subsidiaries”). The Subsidiaries are 100% owned by the Partnership and the guarantees by the Subsidiaries are full and unconditional, except for customary release provisions described in Note 2 - Long-Term Debt. The Partnership has no assets or operations independent of the Subsidiaries, and there are no significant restrictions upon the ability of the Subsidiaries to distribute funds to the Partnership. The guarantees constitute joint and several obligations of the Guarantors. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On April 22, 2014, Legacy’s board of directors approved a distribution of $0.595 per unit payable on May 14, 2014 to unitholders of record on May 1, 2014, representing an increase of $0.005 per unit over the last quarterly distribution. | |
On April 1, 2014, Legacy entered into an amended and restated five-year $1.5 billion secured revolving credit facility that matures on April 1, 2019, with the borrowing base remaining unchanged at $800 million. | |
On April 17, 2014, Legacy, with Stifel Nicolaus & Company, Incorporated, Barclays Capital Inc. and MLV & Co. LLC acting as joint book-running managers, issued a public offering of 2 million 8% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units ("Series A Preferred Units") at a price of $25.00 per unit. The underwriters have been granted a 30-day option to purchase up to an additional 300,000 Series A Preferred Units from Legacy at the public offering price less the underwriting discount. Legacy received net proceeds of approximately $48.1 million, after deducting underwriting discounts and estimated offering expenses, from the offering. | |
Distributions on the Series A Preferred Units are cumulative from the date of original issue and will be payable monthly in arrears on the 15th day of each month of each year, when, as and if declared by the board of directors of LRGPLLC. Distributions on the Series A Preferred Units will be payable out of amounts legally available therefor from, and including, the date of the original issuance to, but not including April 15, 2024 at an initial rate of 8% per annum of the stated liquidation preference. Distributions accruing on and after April 15, 2024 will accrue at an annual rate equal to the sum of (a) three-month LIBOR as calculated on each applicable date of determination and (b) 5.24%, based on the $25.00 liquidation preference per Series A Preferred Unit. | |
At any time on or after April 15, 2019, Legacy may redeem the Series A Preferred Units, in whole or in part, out of amounts legally available therefor, at a redemption price of $25.00 per Series A Preferred Unit plus an amount equal to all accumulated and unpaid distributions thereon through and including the date of redemption, whether or not declared. Legacy may also redeem the Series A Preferred Units in the event of a Change of Control. | |
The Series A Preferred Units were admitted for trading on NASDAQ under the symbol "LGCYP" and commenced trading on NASDAQ on May 5, 2014. | |
On May 2, 2014, Legacy entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) by and between Legacy and certain of its subsidiaries and WPX Energy Rocky Mountain, LLC , a subsidiary of WPX Energy, Inc., for the purchase of a non-operated interest in oil and natural gas properties located in the Piceance Basin in Garfield County Colorado. Upon the closing of the transactions contemplated by the Purchase and Sale Agreement, Legacy will pay consideration consisting of (i) $355 million in cash, subject to certain adjustments at closing, and (ii) 300,000 incentive distribution units representing a new class of limited partner interests in the Partnership (the "Incentive Distribution Units"), 100,000 of which vest immediately and the remainder of which vest pursuant to the terms of a related Incentive Distribution Unitholder Agreement. The Incentive Distribution Units will represent limited partner interests in the Partnership which will be designated and authorized in an amendment to Legacy’s partnership agreement. This acquisition will be accounted for as a business combination. Legacy will determine the fair value of assets acquired and liabilities assumed on the date of close. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Accounting | ' |
The accompanying condensed consolidated financial statements have been prepared on the accrual basis of accounting whereby revenues are recognized when earned, and expenses are recognized when incurred. These condensed consolidated financial statements as of March 31, 2014 and for the three months ended March 31, 2014 and 2013 are unaudited. In the opinion of management, such financial statements include the adjustments and accruals, all of which are of a normal recurring nature, which are necessary for a fair presentation of the results for the interim periods. These interim results are not necessarily indicative of results for a full year. | |
Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These condensed consolidated financial statements should be read in connection with the consolidated financial statements and notes thereto included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2013. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Schedule of components of accrued oil and natural gas liabilities | ' | |||||||
Below are the components of accrued oil and natural gas liabilities as of March 31, 2014 and December 31, 2013. | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Revenue payable | $ | 31,585 | $ | 21,686 | ||||
Accrued lease operating expense | 10,882 | 11,914 | ||||||
Accrued capital expenditures | 13,722 | 10,409 | ||||||
Accrued ad valorem tax | 6,794 | 9,459 | ||||||
Other | 10,889 | 9,693 | ||||||
$ | 73,872 | $ | 63,161 | |||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of long-term debt | ' | ||||||||
Long-term debt consists of the following as of March 31, 2014 and December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Credit Facility due 2016 | $ | 360,000 | $ | 348,000 | |||||
8% Senior Notes due 2020 | 300,000 | 300,000 | |||||||
6.625% Senior Notes due 2021 | 250,000 | 250,000 | |||||||
910,000 | 898,000 | ||||||||
Unamortized discount on Senior Notes | (18,851 | ) | (19,307 | ) | |||||
Total Long-Term Debt | $ | 891,149 | $ | 878,693 | |||||
Schedule of debt redemption | ' | ||||||||
Legacy will have the option to redeem the 2021 Senior Notes, in whole or in part, at any time on or after June 1, 2017, at the specified redemption prices set forth below together with any accrued and unpaid interest, if any, to the date of redemption if redeemed during the twelve-month period beginning on June 1 of the years indicated below. | |||||||||
Year | Percentage | ||||||||
2017 | 103.313 | % | |||||||
2018 | 101.656 | % | |||||||
2019 and thereafter | 100 | % | |||||||
Legacy will have the option to redeem the 2020 Senior Notes, in whole or in part, at any time on or after December 1, 2016, at the specified redemption prices set forth below together with any accrued and unpaid interest, if any, to the date of redemption if redeemed during the twelve-month period beginning on December 1 of the years indicated below. | |||||||||
Year | Percentage | ||||||||
2016 | 104 | % | |||||||
2017 | 102 | % | |||||||
2018 and thereafter | 100 | % |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of financial assets and liabilities that were accounted for at fair value on a recurring basis | ' | ||||||||||||||||
The following table sets forth by level within the fair value hierarchy Legacy’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014: | |||||||||||||||||
Fair Value Measurements at March 31, 2014 Using | |||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total Carrying Value as of | ||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | March 31, 2014 | |||||||||||||
(In thousands) | |||||||||||||||||
LTIP liability (a) | $ | — | $ | (1,756 | ) | $ | — | $ | (1,756 | ) | |||||||
Oil and natural gas swaps | — | (9,155 | ) | 2,255 | (6,900 | ) | |||||||||||
Oil and natural gas collars | — | — | 12,297 | 12,297 | |||||||||||||
Interest rate swaps | — | (4,047 | ) | — | (4,047 | ) | |||||||||||
Total | $ | — | $ | (14,958 | ) | $ | 14,552 | $ | (406 | ) | |||||||
(a) | See Note 9 for further discussion on unit-based compensation expenses and the related Long-Term Incentive Plan ("LTIP") liability for certain grants accounted for under the liability method. | ||||||||||||||||
Reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 | ' | ||||||||||||||||
The following table sets forth a reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 in the fair value hierarchy: | |||||||||||||||||
Significant Unobservable Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Beginning balance | $ | 20,615 | $ | 29,966 | |||||||||||||
Total losses | (6,740 | ) | (7,221 | ) | |||||||||||||
Settlements, net | 677 | (3,931 | ) | ||||||||||||||
Ending balance | $ | 14,552 | $ | 18,814 | |||||||||||||
Losses included in earnings relating to derivatives still held as of March 31, 2014 and 2013 | $ | (5,622 | ) | $ | (11,171 | ) | |||||||||||
Schedule of fair value measurements of proved oil and natural gas properties | ' | ||||||||||||||||
Assets measured at fair value during the three-month period ended March 31, 2014 include: | |||||||||||||||||
Fair Value Measurements at March 31, 2014 Using | |||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(In thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Impairment (a) | $ | — | $ | — | $ | 2,019 | |||||||||||
Acquisitions (b) | $ | — | $ | — | $ | 588 | |||||||||||
(a) | Legacy reviews oil and natural gas properties for impairment when facts and circumstances indicate that their carrying value may not be recoverable. Legacy compares net capitalized costs of proved oil and natural gas properties to estimated undiscounted future net cash flows using management’s expectations of future oil and natural gas prices. These future price scenarios reflect Legacy’s estimation of future price volatility. During the three-month period ended March 31, 2014, Legacy incurred impairment charges of $1.4 million as oil and natural gas properties with a net cost basis of $3.4 million were written down to their fair value of $2.0 million. In order to determine fair value, Legacy compares net capitalized costs of proved oil and natural gas properties to estimated undiscounted future net cash flows using management’s expectations of future oil and natural gas prices. These future price scenarios reflect Legacy’s estimation of future price volatility. If the net capitalized cost exceeds the undiscounted future net cash flows, Legacy writes the net cost basis down to the discounted future net cash flows, which is management's estimate of fair value. Significant inputs used to determine the fair value include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a market-based weighted average cost of capital rate. The underlying commodity prices embedded in the Company's estimated cash flows are the product of a process that begins with NYMEX forward curve pricing, adjusted for estimated location and quality differentials, as well as other factors that Legacy's management believes will impact realizable prices. The inputs used by management for the fair value measurements utilized in this review include significant unobservable inputs, and therefore, the fair value measurements employed are classified as Level 3 for these types of assets. | ||||||||||||||||
(b) | Assets and liabilities acquired in a business combination are recorded at fair value. During the three-month period ended March 31, 2014, Legacy acquired oil and natural gas properties, inclusive of unproved acreage acquisitions, with a fair value of $0.6 million in several individually immaterial transactions. Properties acquired are recorded at fair value, which correlates to the discounted future net cash flow. Significant inputs used to determine the fair value include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a market-based weighted average cost of capital rate. The underlying commodity prices embedded in the Company's estimated cash flows are the product of a process that begins with NYMEX forward curve pricing, adjusted for estimated location and quality differentials, as well as other factors that Legacy's management believes will impact realizable prices. For acquired unproved properties, the market-based weighted average cost of capital rate is subjected to additional project specific risking factors. The inputs used by management for the fair value measurements of these acquired oil and natural gas properties include significant unobservable inputs, and therefore, the fair value measurements employed are classified as Level 3 for these types of assets. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Schedule of reconciliation of the changes in fair value of Legacy's commodity derivatives | ' | |||||||||||||
The following table sets forth a reconciliation of the changes in fair value of Legacy's commodity derivatives for the three months ended March 31, 2014 and 2013. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Beginning fair value of commodity derivatives | $ | 17,673 | $ | 24,148 | ||||||||||
Total loss - oil derivatives | (12,260 | ) | (7,496 | ) | ||||||||||
Total loss - natural gas derivatives | (3,626 | ) | (5,509 | ) | ||||||||||
Crude oil derivative cash settlements paid (received) | 2,556 | (229 | ) | |||||||||||
Natural gas derivative cash settlements paid (received) | 1,054 | (2,406 | ) | |||||||||||
Ending fair value of commodity derivatives | $ | 5,397 | $ | 8,508 | ||||||||||
Schedule of gross fair values of our derivative instruments, presenting the impact of offsetting the derivative assets and liabilities | ' | |||||||||||||
The following table summarizes the gross fair values of our derivative instruments, presenting the impact of offsetting the derivative assets and liabilities on our Consolidated Balance Sheets as of the dates indicated below (in thousands): | ||||||||||||||
March 31, 2014 | ||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | ||||||||||||
Offsetting Derivative Assets: | (In thousands) | |||||||||||||
Commodity derivatives | $ | 35,172 | $ | (16,981 | ) | $ | 18,191 | |||||||
Interest rate derivatives | — | — | — | |||||||||||
Total derivative assets | $ | 35,172 | $ | (16,981 | ) | $ | 18,191 | |||||||
Offsetting Derivative Liabilities: | ||||||||||||||
Commodity derivatives | $ | (29,775 | ) | $ | 16,981 | $ | (12,794 | ) | ||||||
Interest rate derivatives | (4,047 | ) | — | (4,047 | ) | |||||||||
Total derivative liabilities | $ | (33,822 | ) | $ | 16,981 | $ | (16,841 | ) | ||||||
December 31, 2013 | ||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | ||||||||||||
Offsetting Derivative Assets: | (In thousands) | |||||||||||||
Commodity derivatives | $ | 46,356 | $ | (21,263 | ) | $ | 25,093 | |||||||
Interest rate derivatives | — | — | — | |||||||||||
Total derivative assets | $ | 46,356 | $ | (21,263 | ) | $ | 25,093 | |||||||
Offsetting Derivative Liabilities: | ||||||||||||||
Commodity derivatives | $ | (28,683 | ) | $ | 21,263 | $ | (7,420 | ) | ||||||
Interest rate derivatives | (4,759 | ) | — | (4,759 | ) | |||||||||
Total derivative liabilities | $ | (33,442 | ) | $ | 21,263 | $ | (12,179 | ) | ||||||
Schedule of notional amounts of outstanding derivative positions | ' | |||||||||||||
As of March 31, 2014, Legacy had the following NYMEX West Texas Intermediate ("WTI") crude oil swaps paying floating prices and receiving fixed prices for a portion of its future oil production as indicated below: | ||||||||||||||
Average | ||||||||||||||
Calendar Year | Volumes (Bbls) | Price per Bbl | Price Range per Bbl | |||||||||||
April-December 2014 | 2,204,220 | $93.19 | $87.50 | - | $101.50 | |||||||||
2015 | 545,351 | $91.98 | $88.50 | - | $100.20 | |||||||||
2016 | 228,600 | $87.94 | $86.30 | - | $99.85 | |||||||||
2017 | 182,500 | $84.75 | $84.75 | |||||||||||
As of March 31, 2014, Legacy had the following NYMEX WTI crude oil derivative three-way collar contracts that combine a long put, a short put and a short call as indicated below: | ||||||||||||||
Average Short | Average Long | Average Short | ||||||||||||
Calendar Year | Volumes (Bbls) | Put Price per Bbl | Put Price per Bbl | Call Price per Bbl | ||||||||||
April-December 2014 | 605,000 | $71.59 | $96.59 | $110.56 | ||||||||||
2015 | 1,308,500 | $64.67 | $89.67 | $112.21 | ||||||||||
2016 | 621,300 | $63.37 | $88.37 | $106.40 | ||||||||||
2017 | 72,400 | $60.00 | $85.00 | $104.20 | ||||||||||
As of March 31, 2014, Legacy had the following NYMEX WTI crude oil enhanced swap contracts that combine a short put, a long put and a fixed-price swap as indicated below: | ||||||||||||||
Average Long | Average Short | Average | ||||||||||||
Calendar Year | Volumes (Bbls) | Put Price per Bbl | Put Price per Bbl | Swap Price per Bbl | ||||||||||
2015 | 365,000 | $60.00 | $80.00 | $92.35 | ||||||||||
2016 | 183,000 | $57.00 | $82.00 | $91.70 | ||||||||||
2017 | 182,500 | $57.00 | $82.00 | $90.85 | ||||||||||
2018 | 127,750 | $57.00 | $82.00 | $90.50 | ||||||||||
As of March 31, 2014, Legacy had the following NYMEX WTI crude oil enhanced swap contracts that combine a short put and a fixed-price swap as indicated below: | ||||||||||||||
Average Short Put | Average Swap | |||||||||||||
Calendar Year | Volumes (Bbls) | Price per Bbl | Price per Bbl | |||||||||||
2015 | 365,000 | $70.00 | $92.03 | |||||||||||
As of March 31, 2014, Legacy had the following NYMEX West Texas Waha, ANR-OK and CIG-Rockies natural gas swaps paying floating natural gas prices and receiving fixed prices for a portion of its future natural gas production as indicated below: | ||||||||||||||
Average | Price | |||||||||||||
Calendar Year | Volumes (MMBtu) | Price per MMBtu | Range per MMBtu | |||||||||||
April-December 2014 | 6,128,903 | $4.31 | $3.61 | - | $6.47 | |||||||||
2015 | 4,669,300 | $4.58 | $4.15 | - | $5.82 | |||||||||
2016 | 1,419,200 | $4.30 | $4.12 | - | $5.30 | |||||||||
As of March 31, 2014, Legacy had the following NYMEX Henry Hub natural gas derivative three-way collar contracts that combine a long put, a short put and a short call as indicated below: | ||||||||||||||
Average Short Put | Average Long Put | Average Short Call | ||||||||||||
Calendar Year | Volumes (MMBtu) | Price per MMBtu | Price per MMBtu | Price per MMBtu | ||||||||||
2015 | 1,440,000 | $3.25 | $4.05 | $4.49 | ||||||||||
Schedule of total impact on interest expense from the mark-to-market and settlements | ' | |||||||||||||
The total impact on interest expense from the mark-to-market and settlements was as follows: | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Beginning fair value of interest rate swaps | $ | (4,759 | ) | $ | (9,547 | ) | ||||||||
Total gain (loss) on interest rate swaps | (174 | ) | (336 | ) | ||||||||||
Cash settlements paid | 886 | 1,781 | ||||||||||||
Ending fair value of interest rate swaps | $ | (4,047 | ) | $ | (8,102 | ) | ||||||||
Schedule of interest rate swap liabilities | ' | |||||||||||||
The table below summarizes the interest rate swap position as of March 31, 2014: | ||||||||||||||
Estimated Fair Market Value at | ||||||||||||||
Notional Amount | Fixed Rate | Effective Date | Maturity Date | March 31, 2014 | ||||||||||
(Dollars in thousands) | ||||||||||||||
$ | 29,000 | 3.07 | % | 10/16/07 | 10/16/15 | $ | (1,173 | ) | ||||||
$ | 13,000 | 3.112 | % | 11/16/07 | 11/16/15 | (566 | ) | |||||||
$ | 12,000 | 3.131 | % | 11/28/07 | 11/28/15 | (525 | ) | |||||||
$ | 50,000 | 0.71 | % | 8/10/11 | 8/10/14 | (103 | ) | |||||||
$ | 50,000 | 0.702 | % | 8/10/11 | 8/10/14 | (101 | ) | |||||||
$ | 50,000 | 2.5 | % | 10/10/08 | 10/10/15 | (1,579 | ) | |||||||
Total fair market value of interest rate derivatives | $ | (4,047 | ) |
Asset_Retirement_Obligation_Ta
Asset Retirement Obligation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Asset Retirement Obligation [Abstract] | ' | ||||||||
Schedule of changes in asset retirement obligations | ' | ||||||||
The following table reflects the changes in the ARO during the three months ended March 31, 2014 and year ended December 31, 2013: | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Asset retirement obligation - beginning of period | $ | 175,786 | $ | 162,183 | |||||
Liabilities incurred with properties acquired | — | 10,969 | |||||||
Liabilities incurred with properties drilled | — | 494 | |||||||
Liabilities settled during the period | (491 | ) | (2,441 | ) | |||||
Liabilities associated with properties sold | — | (1,606 | ) | ||||||
Current period accretion | 1,660 | 6,187 | |||||||
Asset retirement obligation - end of period | $ | 176,955 | $ | 175,786 | |||||
Income_Loss_Per_Unit_Tables
Income (Loss) Per Unit (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of computation of basic and diluted income (loss) per unit | ' | ||||||||
The following table sets forth the computation of basic and diluted income (loss) per unit: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Income (loss) available to unitholders | $ | 526 | $ | (6,705 | ) | ||||
Weighted average number of units outstanding | 57,309 | 57,077 | |||||||
Effect of dilutive securities: | |||||||||
Restricted and phantom units | 58 | — | |||||||
Weighted average units and potential units outstanding | 57,367 | 57,077 | |||||||
Basic and diluted earnings (loss) per unit | $ | 0.01 | $ | (0.12 | ) | ||||
UnitBased_Compensation_Tables
Unit-Based Compensation (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of option and UAR activity | ' | |||||||||||||
A summary of UAR and unit option activity for the three months ended March 31, 2014 is as follows: | ||||||||||||||
Units | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||||
Outstanding at January 1, 2014 | 627,043 | $ | 25.99 | |||||||||||
Granted | 19,000 | 26.77 | ||||||||||||
Exercised | (17,500 | ) | 23.01 | |||||||||||
Forfeited | (19,335 | ) | 26.02 | |||||||||||
Outstanding at March 31, 2014 | 609,208 | $ | 26.1 | 5 | $ | 417,061 | ||||||||
Options and UARs exercisable at March 31, 2014 | 244,373 | $ | 24.37 | 3.7 | $ | 412,295 | ||||||||
Schedule of status of the Partnershipbs non-vested UARs | ' | |||||||||||||
The following table summarizes the status of Legacy’s non-vested UARs since January 1, 2014: | ||||||||||||||
Non-Vested UARs | ||||||||||||||
Number of Units | Weighted-Average Exercise Price | |||||||||||||
Non-vested at January 1, 2014 | 386,755 | $ | 27.21 | |||||||||||
Granted | 19,000 | 26.77 | ||||||||||||
Vested | (22,585 | ) | 26.39 | |||||||||||
Forfeited | (18,335 | ) | 26.89 | |||||||||||
Non-vested at March 31, 2014 | 364,835 | $ | 27.26 | |||||||||||
Schedule of weighted average assumptions used for the Black-Scholes option-pricing model | ' | |||||||||||||
The following table represents the weighted-average assumptions used for the Black-Scholes option-pricing model. | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2014 | ||||||||||||||
Expected life (years) | 5.39 | |||||||||||||
Risk free interest rate | 1.6 | % | ||||||||||||
Annual distribution rate per unit | $2.36 | |||||||||||||
Volatility | 44 | % |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Other Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
General partner's equity, percent | 0.03% | 0.03% |
Term of right to receive distributions of available cash after quarter end | '45 days | ' |
Minimum percentage of unitholder approval to remove general partner | 66.67% | ' |
Term of right to receive information reasonably required for tax reporting purposes after close of year | '90 days | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Accrued Oil and Natural Gas Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Revenue payable | $31,585 | $21,686 |
Accrued lease operating expense | 10,882 | 11,914 |
Accrued capital expenditures | 13,722 | 10,409 |
Accrued ad valorem tax | 6,794 | 9,459 |
Other | 10,889 | 9,693 |
Accrued oil and natural gas liabilities | $73,872 | $63,161 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long-term Debt (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | $910,000 | $898,000 |
Unamortized discount on Senior Notes | -18,851 | -19,307 |
Total Long-Term Debt | 891,149 | 878,693 |
Senior notes | 8% Senior Notes due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 8.00% | ' |
Long-term debt, gross | 300,000 | 300,000 |
Senior notes | 6.625% Senior Notes due 2021 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 6.63% | ' |
Long-term debt, gross | 250,000 | 250,000 |
Credit facility due 2016 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt, gross | $360,000 | $348,000 |
LongTerm_Debt_Credit_Facility_
Long-Term Debt - Credit Facility (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Mar. 10, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ' | ' | ' |
Long-term debt, gross | ' | $910,000,000 | $898,000,000 |
Credit facility due 2016 | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Expiration period | '5 years | ' | ' |
Maximum borrowing capacity | 1,000,000,000 | ' | ' |
Current borrowing capacity | ' | 800,000,000 | ' |
Long-term debt, gross | ' | 360,000,000 | 348,000,000 |
Interest rate at period end | ' | 2.25% | ' |
Remaining borrowing capacity | ' | 439,900,000 | ' |
Interest Paid | ' | $2,600,000 | ' |
LongTerm_Debt_Senior_Notes_Det
Long-Term Debt - Senior Notes (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 04, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 28-May-13 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | 28-May-13 | Dec. 04, 2012 | |
Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Senior notes | Legacy Reserves Finance Corporation | Legacy Reserves Finance Corporation | ||||
8% Senior Notes due 2020 | 8% Senior Notes due 2020 | 8% Senior Notes due 2020 | 8% Senior Notes due 2020 | 8% Senior Notes due 2020 | 8% Senior Notes due 2020 | 8% Senior Notes due 2020 | 8% Senior Notes due 2020 | 6.625% Senior Notes due 2021 | 6.625% Senior Notes due 2021 | 6.625% Senior Notes due 2021 | 6.625% Senior Notes due 2021 | 6.625% Senior Notes due 2021 | 6.625% Senior Notes due 2021 | 6.625% Senior Notes due 2021 | 6.625% Senior Notes due 2021 | ||||||
Company Option [Member] | Change in Control [Member] | 2016 | 2017 | 2018 and thereafter | Company Option [Member] | Change in Control [Member] | 2017 | 2018 | 2019 and thereafter | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | 6.63% | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% |
Long-term debt, gross | $910,000,000 | ' | $898,000,000 | ' | $300,000,000 | $300,000,000 | ' | ' | ' | ' | ' | ' | $250,000,000 | $250,000,000 | ' | ' | ' | ' | ' | ' | ' |
Issuance percent of par | ' | ' | ' | 97.85% | ' | ' | ' | ' | ' | ' | ' | 98.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from long-term debt | 126,000,000 | 86,000,000 | ' | 286,700,000 | ' | ' | ' | ' | ' | ' | ' | 240,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of debt discount | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price percentage | ' | ' | ' | ' | ' | ' | 108.00% | 101.00% | 104.00% | 102.00% | 100.00% | ' | ' | ' | 106.63% | 101.00% | 103.31% | 101.66% | 100.00% | ' | ' |
Percent of notes eligible of early redemption | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
President/CEO and Director, EVP, CDO | FireWheel Energy, LLC | FireWheel Energy, LLC | |
Related Party Transaction [Line Items] | ' | ' | ' |
Noncontrolling ownership interest in third party by related party | 4.12% | ' | ' |
Monthly rent expense | $58,995 | ' | ' |
Working interest associated with prospective acreage | ' | 5.00% | 5.00% |
Prospective acreage purchase price | ' | $1,200,000 | $7,200,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Officer) | 3 Months Ended |
Mar. 31, 2014 | |
Officer | ' |
Loss Contingencies [Line Items] | ' |
Employment agreements with officers, severance pay consideration period, minimum | '24 months |
Employment agreements with officers, severance pay consideration period, maximum | '36 months |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||
Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Credit facility due 2016 | Credit facility due 2016 | Senior notes | Senior notes | Senior notes | Senior notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Nonrecurring | Nonrecurring | Nonrecurring | |||
8% Senior Notes due 2020 | 8% Senior Notes due 2020 | 6.625% Senior Notes due 2021 | 6.625% Senior Notes due 2021 | Senior notes | Senior notes | Energy related derivative | Energy related derivative | Interest rate swaps | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||
8% Senior Notes due 2020 | 6.625% Senior Notes due 2021 | Swap | Collar | Energy related derivative | Energy related derivative | Interest rate swaps | Energy related derivative | Energy related derivative | Interest rate swaps | Derivative assets | Derivative assets | Energy related derivative | Energy related derivative | Interest rate swaps | ||||||||||||||||||
Oil and natural gas | Oil | Swap | Collar | Swap | Collar | Swap | Collar | |||||||||||||||||||||||||
Oil and natural gas | Oil | Oil and natural gas | Oil | Oil and natural gas | Oil | |||||||||||||||||||||||||||
Schedule of financial assets and liabilities that were accounted for at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LTIP liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($1,756,000) | ' | ' | ' | $0 | ' | ' | ' | ($1,756,000) | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,297,000 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | 12,297,000 | ' | ' | ' | ' |
Derivative liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,900,000 | ' | -4,047,000 | ' | 0 | ' | 0 | ' | -9,155,000 | ' | -4,047,000 | ' | ' | ' | ' | 2,255,000 | ' | 0 | ' | ' | ' |
Fair value of assets (liabilities) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -406,000 | ' | ' | ' | 0 | ' | ' | ' | -14,958,000 | ' | ' | ' | 14,552,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of changes in the fair value of financial assets and liabilities classified as Level 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,615,000 | 29,966,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,740,000 | -7,221,000 | -5,622,000 | -11,171,000 | ' | ' | ' | ' | ' | ' |
Settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 677,000 | -3,931,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,552,000 | 18,814,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Gains (losses) included in earnings relating to derivatives still held as of December 31, 2013, 2012 and 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,740,000 | -7,221,000 | -5,622,000 | -11,171,000 | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment | 1,524,801,000 | 1,535,429,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 2,019,000 |
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 588,000 |
Impairment of long-lived assets | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Oil and gas properties, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 |
Long-term debt, gross | 910,000,000 | 898,000,000 | 360,000,000 | 348,000,000 | 300,000,000 | 300,000,000 | 250,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of notes payable | ' | ' | ' | ' | ' | ' | ' | ' | $320,600,000 | $250,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Commodity Derivatives (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | Not designated as hedging instrument | |||
Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | |||
Oil | Oil | Natural gas | Natural gas | |||||||
Realized and Unrealized Gains (Losses) Related to Derivatives [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning fair value of interest rate swaps | ' | ' | $5,397 | $17,673 | $8,508 | $24,148 | ' | ' | ' | ' |
Total gain (loss) on derivatives | -15,175 | -11,560 | ' | ' | ' | ' | -12,260 | -7,496 | -3,626 | -5,509 |
Derivative cash settlements paid (received) | 3,610 | -2,635 | ' | ' | ' | ' | 2,556 | -229 | 1,054 | -2,406 |
Ending fair value of interest rate swaps | ' | ' | $5,397 | $17,673 | $8,508 | $24,148 | ' | ' | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Offsetting Derivative Assets and Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting Derivative Assets: | ' | ' |
Gross Amounts of Recognized Assets | $35,172 | $46,356 |
Gross Amounts Offset in the Consolidated Balance Sheets | -16,981 | -21,263 |
Net Amounts Presented in the Consolidated Balance Sheets | 18,191 | 25,093 |
Offsetting Derivative Liabilities: | ' | ' |
Gross Amounts of Recognized Liabilities | -33,822 | -33,442 |
Gross Amounts Offset in the Consolidated Balance Sheets | 16,981 | 21,263 |
Net Amounts Presented in the Consolidated Balance Sheets | -16,841 | -12,179 |
Commodity contract | ' | ' |
Offsetting Derivative Assets: | ' | ' |
Gross Amounts of Recognized Assets | 35,172 | 46,356 |
Gross Amounts Offset in the Consolidated Balance Sheets | -16,981 | -21,263 |
Net Amounts Presented in the Consolidated Balance Sheets | 18,191 | 25,093 |
Offsetting Derivative Liabilities: | ' | ' |
Gross Amounts of Recognized Liabilities | -29,775 | -28,683 |
Gross Amounts Offset in the Consolidated Balance Sheets | 16,981 | 21,263 |
Net Amounts Presented in the Consolidated Balance Sheets | -12,794 | -7,420 |
Interest rate contract | ' | ' |
Offsetting Derivative Assets: | ' | ' |
Gross Amounts of Recognized Assets | 0 | 0 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 0 | 0 |
Offsetting Derivative Liabilities: | ' | ' |
Gross Amounts of Recognized Liabilities | -4,047 | -4,759 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | ($4,047) | ($4,759) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Schedule of Derivatives, Notional Amounts Outstanding (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | bbl |
NYMEX WTI Swaps | Crude Oil | April-December 2014 | ' |
Derivative [Line Items] | ' |
Volumes | 2,204,220 |
Average Price | 93.19 |
NYMEX WTI Swaps | Crude Oil | April-December 2014 | Minimum | ' |
Derivative [Line Items] | ' |
Price Range | 87.5 |
NYMEX WTI Swaps | Crude Oil | April-December 2014 | Maximum | ' |
Derivative [Line Items] | ' |
Price Range | 101.5 |
NYMEX WTI Swaps | Crude Oil | 2015 | ' |
Derivative [Line Items] | ' |
Volumes | 545,351 |
Average Price | 91.98 |
NYMEX WTI Swaps | Crude Oil | 2015 | Minimum | ' |
Derivative [Line Items] | ' |
Price Range | 88.5 |
NYMEX WTI Swaps | Crude Oil | 2015 | Maximum | ' |
Derivative [Line Items] | ' |
Price Range | 100.2 |
NYMEX WTI Swaps | Crude Oil | 2016 | ' |
Derivative [Line Items] | ' |
Volumes | 228,600 |
Average Price | 87.94 |
NYMEX WTI Swaps | Crude Oil | 2016 | Minimum | ' |
Derivative [Line Items] | ' |
Price Range | 86.3 |
NYMEX WTI Swaps | Crude Oil | 2016 | Maximum | ' |
Derivative [Line Items] | ' |
Price Range | 99.85 |
NYMEX WTI Swaps | Crude Oil | 2017 | ' |
Derivative [Line Items] | ' |
Volumes | 182,500 |
Average Price | 84.75 |
Price Range | 84.75 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | April-December 2014 | ' |
Derivative [Line Items] | ' |
Volumes | 605,000 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | April-December 2014 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 71.59 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | April-December 2014 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 96.59 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | April-December 2014 | Call option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 110.56 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2015 | ' |
Derivative [Line Items] | ' |
Volumes | 1,308,500 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2015 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 64.67 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2015 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 89.67 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2015 | Call option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 112.21 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2016 | ' |
Derivative [Line Items] | ' |
Volumes | 621,300 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2016 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 63.37 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2016 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 88.37 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2016 | Call option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 106.4 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2017 | ' |
Derivative [Line Items] | ' |
Volumes | 72,400 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2017 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 60 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2017 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 85 |
NYMEX WTI Derivative Three-Way Collar Contracts | Crude Oil | 2017 | Call option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 104.2 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2015 | ' |
Derivative [Line Items] | ' |
Volumes | 365,000 |
Average Price | 92.35 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2015 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 80 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2015 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 60 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2016 | ' |
Derivative [Line Items] | ' |
Volumes | 183,000 |
Average Price | 91.7 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2016 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 82 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2016 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 57 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2017 | ' |
Derivative [Line Items] | ' |
Volumes | 182,500 |
Average Price | 90.85 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2017 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 82 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2017 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 57 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2018 | ' |
Derivative [Line Items] | ' |
Volumes | 127,750 |
Average Price | 90.5 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2018 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 82 |
NYMEX WTI Enhanced Swap Contracts 1 | Crude Oil | 2018 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 57 |
NYMEX WTI Enhanced Swap Contracts 2 | Crude Oil | 2015 | ' |
Derivative [Line Items] | ' |
Volumes | 365,000 |
Average Price | 92.03 |
NYMEX WTI Enhanced Swap Contracts 2 | Crude Oil | 2015 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 70 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | April-December 2014 | ' |
Derivative [Line Items] | ' |
Volumes | 6,128,903 |
Average Price | 4.31 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | April-December 2014 | Minimum | ' |
Derivative [Line Items] | ' |
Price Range | 3.61 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | April-December 2014 | Maximum | ' |
Derivative [Line Items] | ' |
Price Range | 6.47 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | 2015 | ' |
Derivative [Line Items] | ' |
Volumes | 4,669,300 |
Average Price | 4.58 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | 2015 | Minimum | ' |
Derivative [Line Items] | ' |
Price Range | 4.15 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | 2015 | Maximum | ' |
Derivative [Line Items] | ' |
Price Range | 5.82 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | 2016 | ' |
Derivative [Line Items] | ' |
Volumes | 1,419,200 |
Average Price | 4.3 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | 2016 | Minimum | ' |
Derivative [Line Items] | ' |
Price Range | 4.12 |
NYMEX Henry Hub, Waha, ANR-OK and CIG-Rockies Swaps [Member] | Natural gas | 2016 | Maximum | ' |
Derivative [Line Items] | ' |
Price Range | 5.3 |
NYMEX Henry Hub Derivative Three-Way Collar Contracts [Member] | Natural gas | 2015 | ' |
Derivative [Line Items] | ' |
Volumes | 1,440,000 |
NYMEX Henry Hub Derivative Three-Way Collar Contracts [Member] | Natural gas | 2015 | Put option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 3.25 |
NYMEX Henry Hub Derivative Three-Way Collar Contracts [Member] | Natural gas | 2015 | Put option | Long | ' |
Derivative [Line Items] | ' |
Average Strike Price | 4.05 |
NYMEX Henry Hub Derivative Three-Way Collar Contracts [Member] | Natural gas | 2015 | Call option | Short | ' |
Derivative [Line Items] | ' |
Average Strike Price | 4.49 |
Interest rate swaps | Libor Swap All Tranches [Member] | ' |
Derivative [Line Items] | ' |
Estimated Fair Market Value | ($4,047) |
Interest rate swaps | Libor Swap Tranche 1 | ' |
Derivative [Line Items] | ' |
Notional Amount | 29,000 |
Fixed Rate | 3.07% |
Estimated Fair Market Value | -1,173 |
Interest rate swaps | Libor Swap Tranche 2 | ' |
Derivative [Line Items] | ' |
Notional Amount | 13,000 |
Fixed Rate | 3.11% |
Estimated Fair Market Value | -566 |
Interest rate swaps | Libor Swap Tranche 3 | ' |
Derivative [Line Items] | ' |
Notional Amount | 12,000 |
Fixed Rate | 3.13% |
Estimated Fair Market Value | -525 |
Interest rate swaps | Libor Swap Tranche 4 | ' |
Derivative [Line Items] | ' |
Notional Amount | 50,000 |
Fixed Rate | 0.71% |
Estimated Fair Market Value | -103 |
Interest rate swaps | Libor Swap Tranche 5 | ' |
Derivative [Line Items] | ' |
Notional Amount | 50,000 |
Fixed Rate | 0.70% |
Estimated Fair Market Value | -101 |
Interest rate swaps | Libor Swap Tranche 6 | ' |
Derivative [Line Items] | ' |
Notional Amount | 50,000 |
Fixed Rate | 2.50% |
Estimated Fair Market Value | ($1,579) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Schedule of Derivatives, Gain (Loss) on Derivative Activity (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Cash settlements paid | $3,610 | ($2,635) |
Interest rate swaps | Not designated as hedging instrument | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Beginning fair value of interest rate swaps | -4,759 | -9,547 |
Cash settlements paid | 886 | 1,781 |
Ending fair value of interest rate swaps | -4,047 | -8,102 |
Interest rate swaps | Not designated as hedging instrument | Interest expense | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Total gain (loss) on interest rate swaps | ($174) | ($336) |
Asset_Retirement_Obligation_De
Asset Retirement Obligation (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Changes in the ARO | ' | ' |
Asset retirement obligation b beginning of period | $175,786 | $162,183 |
Liabilities incurred with properties acquired | 0 | 10,969 |
Liabilities incurred with properties drilled | 0 | 494 |
Liabilities settled during the period | -491 | -2,441 |
Liabilities associated with properties sold | 0 | -1,606 |
Current period accretion | 1,660 | 6,187 |
Asset retirement obligation b end of period | $176,955 | $175,786 |
Income_Loss_Per_Unit_Details
Income (Loss) Per Unit (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Income (loss) available to unitholders | $526 | ($6,705) |
Weighted average number of units outstanding (in shares) | 57,309,000 | 57,077,000 |
Effect of dilutive securities: | ' | ' |
Restricted units (in shares) | 58,000 | 0 |
Weighted average unit and potential units outstanding (in shares) | 57,367,000 | 57,077,000 |
Basic and diluted income (loss) per unit (in dollars per share) | $0.01 | ($0.12) |
Phantom share units (PSUs) | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive restricted units excluded from computation of EPS | 289,977 | ' |
Restricted stock units (RSUs) | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive restricted units excluded from computation of EPS | 201,643 | 425,120 |
UnitBased_Compensation_LTIP_Un
Unit-Based Compensation - LTIP, Unit Appreciation Rights and Unit Options (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Unit appreciation rights (UARs) | Unit appreciation rights (UARs) | Unit appreciation rights (UARs) | Unit appreciation rights (UARs) | Unit appreciation rights (UARs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | Phantom share units (PSUs) | Phantom share units (PSUs) | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | Long Term Incentive Plan | ||
Ratable vesting | Ratable vesting | Cliff vesting | Unit option awards | Unit appreciation rights (UARs) | Restricted stock units (RSUs) | Phantom share units (PSUs) | Unrestricted units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Units authorized for issuance (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' |
Units issued as compensation (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,742,861 | 266,014 | 609,208 | 431,436 | 323,965 | 112,238 |
Units issued as compensation. gross | ' | 19,000 | ' | 19,000 | 156,650 | 77,506 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | '3 years | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unit award expiration period | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ($0.20) | $0.40 | ' | ' | ' | $0.50 | $0.60 | $0.30 | ($0.80) | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs | ' | $0.80 | ' | ' | ' | ' | $4.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs, weighted-average remaining period for recognition | ' | '2 years 1 month 18 days | ' | ' | ' | ' | '2 years 6 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility | ' | 44.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation, forfeiture rate | ' | 3.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual distribution rate per unit (in dollars per share) | ' | $2.36 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual interest rate | 1.60% | 1.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
UnitBased_Compensation_Option_
Unit-Based Compensation - Option and UAR Activity (Details) (Unit appreciation rights (UARs), USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Unit appreciation rights (UARs) | ' |
Units (in shares) | ' |
Outstanding | 627,043 |
Granted | 19,000 |
Exercised | -17,500 |
Forfeited | -19,335 |
Outstanding | 609,208 |
Options and UARs exercisable | 244,373 |
Weighted-Average Exercise Price (in dollars per share) | ' |
Outstanding | $25.99 |
Granted | $26.77 |
Exercised | $23.01 |
Forfeited | $26.02 |
Outstanding | $26.10 |
Options and UARs exercisable | $24.37 |
Weighted-Average Remaining Contractual Term | ' |
Outstanding | '5 years |
Options and UARs exercisable | '3 years 8 months 27 days |
Aggregate Intrinsic Value | ' |
Outstanding | $417,061 |
Options and UARs exercisable | $412,295 |
UnitBased_Compensation_Status_
Unit-Based Compensation - Status of the Partnership's non-vested UARs (Details) (Unit appreciation rights (UARs), USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Unit appreciation rights (UARs) | ' |
Number of Units | ' |
Non-vested at January 1, 2013 | 386,755 |
Granted | 19,000 |
Vested | -22,585 |
Forfeited | -18,335 |
Non-vested at December 31, 2013 | 364,835 |
Weighted- Average Exercise Price | ' |
Non-vested at January 1, 2013 | $27.21 |
Granted | $26.77 |
Vested | $26.39 |
Forfeited | $26.89 |
Non-vested at December 31, 2013 | $27.26 |
UnitBased_Compensation_Weighte
Unit-Based Compensation - Weighted Average Assumptions (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Annual interest rate | 1.60% |
Stock Appreciation Rights (SARs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected life (years) | '5 years 4 months 20 days |
Annual interest rate | 1.60% |
Annual distribution rate per unit (in dollars per share) | 2.36 |
Volatility | 44.00% |
UnitBased_Compensation_Phantom
Unit-Based Compensation - Phantom, Board and Restricted Units (Details) (USD $) | 14-May-13 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Feb. 28, 2011 | Sep. 21, 2009 | Mar. 07, 2013 | Mar. 31, 2013 | Feb. 28, 2011 | Mar. 07, 2013 | Sep. 21, 2009 | Sep. 21, 2009 | Mar. 07, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | 14-May-13 |
In Millions, except Share data, unless otherwise specified | Non-employee directors | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Subjective phantom share units (PSUs) | Subjective phantom share units (PSUs) | Subjective phantom share units (PSUs) | Objective phantom share units (PSUs) | Objective phantom share units (PSUs) | Objective phantom share units (PSUs) | Objective phantom share units (PSUs) | Objective phantom share units (PSUs) | Objective phantom share units (PSUs) | Objective phantom share units (PSUs) | Phantom share units (PSUs) | Phantom share units (PSUs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | Restricted stock units (RSUs) | Unrestricted units |
Ratable vesting | Ratable vesting | Cliff vesting | Executive officers | Executive officers | Executive officers | Executive officers | Executive officers | Executive officers | Executive officers | Executive officers | Executive officers | Executive officers | Non-executive employees | Non-executive employees | Non-executive employees and certain executives | Non-executive employees and certain executives | Non-employee directors | |||||||||
Ratable vesting | Ratable vesting | Three-step process vesting | Three-step process vesting, each of first two steps | Cliff vesting | Ratable vesting | Ratable vesting | directors | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | '3 years | '3 years | '3 years | ' | ' | '3 years | ' | ' | ' | '3 years | '3 years | ' | '3 years | ' | ' | ' | ' | ' | '3 years | ' | '3 years | ' |
Award vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award measurement period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | 19,000 | ' | ' | ' | ' | ' | 117,197 | 46,430 | ' | ' | 102,572 | 76,723 | ' | ' | ' | ' | ' | ' | ' | ' | 2,475 | ' | 85,728 | ' | 3,715 |
Unvested units not included in consolidated balance sheet (in shares) | ' | 364,835 | ' | 386,755 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 225,278 | ' | ' | ' | ' | ' | ' |
Individuals eligible for plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Share-based compensation expense | ' | ($0.20) | $0.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.30 | ($0.80) | $0.50 | $0.60 | ' | ' | ' | ' | ' |
Unrecognized compensation costs | ' | $0.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.10 | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs, period of recognition | ' | '2 years 1 month 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 6 months 18 days | ' | ' | ' | ' | ' | ' |
Value of each unit at issuance (in dollars per share) | $27.39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subsidiary_Guarantors_Details
Subsidiary Guarantors (Details) | Mar. 31, 2014 |
Guarantees [Abstract] | ' |
Percent of subsidiaries owned | 100.00% |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 0 Months Ended | ||||||
Mar. 10, 2011 | Mar. 31, 2014 | Apr. 22, 2014 | 2-May-14 | 2-May-14 | Apr. 17, 2014 | Apr. 17, 2014 | Apr. 02, 2014 | |
Credit facility due 2019 | Credit facility due 2019 | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | |
Purchase and Sale Agreement | Purchase and Sale Agreement | Series A Preferred Units | Series A Preferred Units | Credit facility due 2019 | ||||
Immediate Vesting [Member] | three-month LIBOR | |||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions declared and paid (in dollars per share) | ' | ' | $0.60 | ' | ' | ' | ' | ' |
Distribution increase over prior distribution (in dollars per share) | ' | ' | $0.01 | ' | ' | ' | ' | ' |
Expiration period | '5 years | ' | ' | ' | ' | ' | ' | '5 years |
Maximum borrowing capacity | $1,000,000,000 | ' | ' | ' | ' | ' | ' | $1,500,000,000 |
Current borrowing capacity | ' | 800,000,000 | ' | ' | ' | ' | ' | 800,000,000 |
Value issued | ' | ' | ' | ' | ' | 2,000,000 | ' | ' |
Share price | ' | ' | ' | ' | ' | $25 | ' | ' |
Dividend rate | ' | ' | ' | ' | ' | 8.00% | ' | ' |
Liquidation preference (in dollars per share) | ' | ' | ' | ' | ' | $25 | ' | ' |
Additional term of underwriter purchase option | ' | ' | ' | ' | ' | '30 days | ' | ' |
Additional shares of underwriter purchase option | ' | ' | ' | ' | ' | 300,000 | ' | ' |
Proceeds from offering | ' | ' | ' | ' | ' | 48,100,000 | ' | ' |
Variable dividend rate | ' | ' | ' | ' | ' | ' | 5.24% | ' |
Consideration that will be paid | ' | ' | ' | $355,000,000 | ' | ' | ' | ' |
Equity interests issuable (in shares) | ' | ' | ' | 300,000 | 100,000 | ' | ' | ' |