Document and Entity Information
Document and Entity Information - USD ($) | 6 Months Ended | ||
Dec. 31, 2016 | Feb. 15, 2017 | Jun. 30, 2016 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-KT | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Energy XXI Gulf Coast, Inc. | ||
Entity Central Index Key | 1,404,973 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 33,211,594 | ||
Entity Public Float | $ 4,283,465 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Successor [Member] | |||
Current Assets | |||
Cash and cash equivalents | $ 165,368 | ||
Accounts receivable, net | |||
Oil and natural gas sales | 68,143 | ||
Joint interest billings | 5,600 | ||
Other | 17,944 | ||
Prepaid expenses and other current assets | 25,957 | ||
Restricted cash | 32,337 | ||
Total Current Assets | 315,349 | ||
Property and Equipment | |||
Oil and natural gas properties, net - full cost method of accounting, including $376.1 million, $42.2 million and $436.4 million of unevaluated properties not being amortized at December 31, 2016, June 30, 2016 and 2015, respectively | 1,097,479 | ||
Other property and equipment, net | 18,807 | ||
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | 1,116,286 | ||
Other Assets | |||
Restricted cash | 25,583 | ||
Other assets and debt issuance costs, net of accumulated amortization | 28,244 | ||
Total Other Assets | 53,827 | ||
Total Assets | 1,485,462 | ||
Current Liabilities | |||
Accounts payable | 101,117 | ||
Accrued liabilities | 63,660 | ||
Asset retirement obligations | 56,601 | ||
Current maturities of long-term debt | 4,268 | ||
Total Current Liabilities | 225,646 | ||
Long-term debt, less current maturities | 74,229 | ||
Asset retirement obligations | 696,763 | ||
Other liabilities | 14,481 | ||
Total Liabilities Not Subject to Compromise | 1,011,119 | ||
Total Liabilities | 1,011,119 | ||
Commitments and Contingencies (Note 17) | |||
Stockholders' Equity (Deficit) | |||
Common stock | 332 | ||
Additional paid-in capital | 880,286 | ||
Accumulated deficit | (406,275) | ||
Stockholders' Equity (Deficit) | 474,343 | ||
Total Liabilities and Stockholders' Equity (Deficit) | 1,485,462 | ||
Predecessor [Member] | |||
Current Assets | |||
Cash and cash equivalents | 165,368 | $ 203,258 | $ 756,848 |
Accounts receivable, net | |||
Oil and natural gas sales | 63,644 | 100,243 | |
Joint interest billings | 8,770 | 12,433 | |
Other | 5,219 | 43,513 | |
Prepaid expenses and other current assets | 29,028 | 24,298 | |
Restricted cash | 38,965 | 9,359 | |
Derivative financial instruments | 22,229 | ||
Total Current Assets | 348,884 | 968,923 | |
Property and Equipment | |||
Oil and natural gas properties, net - full cost method of accounting, including $376.1 million, $42.2 million and $436.4 million of unevaluated properties not being amortized at December 31, 2016, June 30, 2016 and 2015, respectively | 603,155 | 3,570,759 | |
Other property and equipment, net | 17,610 | 21,820 | |
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | 620,765 | 3,592,579 | |
Other Assets | |||
Derivative financial instruments | 3,898 | ||
Equity investments | 10,835 | ||
Restricted cash | 25,548 | 32,667 | |
Other assets and debt issuance costs, net of accumulated amortization | 30,237 | 81,927 | |
Total Other Assets | 55,785 | 129,327 | |
Total Assets | 1,025,434 | 4,690,829 | |
Current Liabilities | |||
Accounts payable | 44,184 | 156,339 | |
Accrued liabilities | 40,428 | 155,306 | |
Asset retirement obligations | 71,717 | 33,286 | |
Derivative financial instruments | 2,661 | ||
Current maturities of long-term debt | 99,836 | 11,395 | |
Total Current Liabilities | 256,165 | 358,987 | |
Long-term debt, less current maturities | 4,597,037 | ||
Asset retirement obligations | 465,902 | 453,799 | |
Derivative financial instruments | 1,358 | ||
Other liabilities | 21,304 | 8,370 | |
Total Liabilities Not Subject to Compromise | 743,371 | 5,419,551 | |
Less: liabilities subject to compromise (see Note 3) | 2,934,619 | 2,936,148 | |
Total Liabilities | 3,679,519 | 5,419,551 | |
Commitments and Contingencies (Note 17) | |||
Stockholders' Equity (Deficit) | |||
Common stock | 488 | 472 | |
Additional paid-in capital | 1,845,684 | 1,843,918 | |
Accumulated deficit | (4,500,258) | (2,573,113) | |
Stockholders' Equity (Deficit) | 1 | (2,654,085) | (728,722) |
Total Liabilities and Stockholders' Equity (Deficit) | 1,025,434 | 4,690,829 | |
Predecessor [Member] | 5.625% Convertible Perpetual Preferred Stock [Member] | |||
Stockholders' Equity (Deficit) | |||
Preferred stock | 1 | 1 | |
Stockholders' Equity (Deficit) | $ 1 | $ 1 | $ 1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2016 | |
Successor [Member] | |||
Oil and natural gas properties - full cost method of accounting, unevaluated properties | $ 376.1 | ||
Preferred stock, par value | $ 0.01 | ||
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, shares issued | 0 | ||
Preferred stock, shares outstanding | 0 | ||
Common stock, par value | $ 0.01 | ||
Common stock, shares authorized | 100,000,000 | ||
Common stock, shares issued | 33,211,594 | ||
Common stock, shares outstanding | 33,211,594 | ||
Predecessor [Member] | |||
Oil and natural gas properties - full cost method of accounting, unevaluated properties | $ 42.2 | $ 436.4 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares authorized | 7,500,000 | 7,500,000 | |
Common stock, par value | $ 0.005 | $ 0.005 | |
Common stock, shares authorized | 200,000,000 | 200,000,000 | |
Common stock, shares issued | 97,824,054 | 94,643,498 | |
Common stock, shares outstanding | 97,824,054 | 94,643,498 | |
Predecessor [Member] | 7.25% Convertible Perpetual Preferred Stock [Member] | |||
Preferred stock dividend rate | 7.25% | 7.25% | |
Preferred stock, shares issued | 3,000 | 3,000 | |
Preferred stock, shares outstanding | 3,000 | 3,000 | |
Predecessor [Member] | 5.625% Convertible Perpetual Preferred Stock [Member] | |||
Preferred stock dividend rate | 5.625% | 5.625% | |
Preferred stock, shares issued | 661,992 | 812,759 | |
Preferred stock, shares outstanding | 661,992 | 812,759 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Successor [Member] | ||||||
Costs and Expenses | ||||||
Depreciation, depletion and amortization | ||||||
Accretion of asset retirement obligations | ||||||
Impairment of oil and natural gas properties | 406,275 | |||||
Goodwill impairment | ||||||
Total Costs and Expenses | 406,275 | |||||
Operating Income (Loss) | (406,275) | |||||
Other Income (Expense) | ||||||
Loss from equity method investees | ||||||
Gain on early extinguishment of debt | ||||||
Income (Loss) Before Reorganization Items and Income Taxes | (406,275) | |||||
Income (Loss) Before Income Taxes | (406,275) | |||||
Income Tax Expense (Benefit) | ||||||
Net Income (Loss) | (406,275) | |||||
Net Income (Loss) Available for Common Stockholders | $ (406,275) | |||||
Earnings (Loss) per Share | ||||||
Basic | $ (12.23) | |||||
Diluted | $ (12.23) | |||||
Weighted Average Number of Common Shares Outstanding | ||||||
Basic | 33,212 | |||||
Diluted | 33,212 | |||||
Predecessor [Member] | ||||||
Revenues | ||||||
Oil sales | $ 258,573 | $ 546,766 | $ 1,052,731 | $ 1,104,208 | ||
Natural gas sales | 37,103 | 69,255 | 117,282 | 135,883 | ||
Gain (loss) on derivative financial instruments | 90,506 | 235,439 | (86,968) | |||
Total Revenues | 295,676 | [1] | 706,527 | 1,405,452 | 1,153,123 | |
Costs and Expenses | ||||||
Lease operating | 143,696 | 346,073 | 463,535 | 365,747 | ||
Production taxes | 482 | 1,442 | 8,385 | 5,427 | ||
Gathering and transportation | 19,551 | 55,925 | 21,144 | 23,532 | ||
Depreciation, depletion and amortization | 60,626 | 339,516 | 705,521 | 414,026 | ||
Accretion of asset retirement obligations | 38,973 | 64,690 | 50,081 | 30,183 | ||
Impairment of oil and natural gas properties | 86,820 | 2,813,570 | 2,421,884 | |||
Goodwill impairment | 329,293 | |||||
General and administrative expense | 27,557 | 102,736 | 116,500 | 96,402 | ||
Total Costs and Expenses | 377,705 | 3,723,952 | 4,116,343 | 935,317 | ||
Operating Income (Loss) | (82,029) | [1] | (3,017,425) | (2,710,891) | 217,806 | |
Other Income (Expense) | ||||||
Loss from equity method investees | (10,746) | (17,165) | (5,231) | |||
Other income - net | 117 | 3,596 | 4,176 | 3,298 | ||
Gain on early extinguishment of debt | 1,525,596 | |||||
Interest expense | (12,580) | (405,658) | (323,308) | (162,728) | ||
Total Other Income (Expense), net | (12,463) | 1,112,788 | (336,297) | (164,661) | ||
Income (Loss) Before Reorganization Items and Income Taxes | (94,492) | (1,904,637) | (3,047,188) | 53,145 | ||
Reorganization items | 2,748,395 | (14,201) | ||||
Income (Loss) Before Income Taxes | 2,653,903 | [1] | (1,918,838) | (3,047,188) | 53,145 | |
Income Tax Expense (Benefit) | (87) | (613,350) | 35,020 | |||
Net Income (Loss) | 2,653,903 | [1] | (1,918,751) | (2,433,838) | 18,125 | |
Preferred Stock Dividends | 8,394 | 11,468 | 11,489 | |||
Net Income (Loss) Available for Common Stockholders | $ 2,653,903 | [1] | $ (1,927,145) | $ (2,445,306) | $ 6,636 | |
Earnings (Loss) per Share | ||||||
Basic | $ 26.99 | [1] | $ (20.11) | $ (25.97) | $ 0.09 | |
Diluted | $ 25.33 | [1] | $ (20.11) | $ (25.97) | $ 0.09 | |
Weighted Average Number of Common Shares Outstanding | ||||||
Basic | 98,337 | [1] | 95,822 | 94,167 | 74,375 | |
Diluted | 104,787 | [1] | 95,822 | 94,167 | 74,445 | |
[1] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Paid-in Capital [Member] | Accumulated (Deficit) [Member] | 5.625% Convertible Perpetual Preferred Stock [Member] | Total | |
Beginning Balance (Predecessor [Member]) at Jun. 30, 2013 | $ 397 | $ (72,663) | $ 1,512,311 | $ (72,111) | $ 1 | $ 1,367,935 | |
Beginning Balance (in shares) (Predecessor [Member]) at Jun. 30, 2013 | 79,425,000 | 2,939,000 | |||||
Common stock issued, net of direct costs | Predecessor [Member] | $ 81 | 341,478 | 341,559 | ||||
Common stock issued, net of direct costs (in shares) | Predecessor [Member] | 16,382,000 | ||||||
Common stock based compensation | Predecessor [Member] | 6,711 | 6,711 | |||||
Repurchase of company common stock | Predecessor [Member] | $ (170,266) | (170,266) | |||||
Repurchase of company common stock (in shares) | Predecessor [Member] | 6,477,000 | ||||||
Treasury stock retired | Predecessor [Member] | $ (10) | $ 52,966 | (52,956) | ||||
Treasury stock retired (in shares) | Predecessor [Member] | (2,087,000) | (2,087,000) | |||||
Common stock reissued | Predecessor [Member] | $ 189,963 | (32,030) | (3,216) | 154,717 | |||
Common stock reissued (in shares) | Predecessor [Member] | (7,329,000) | ||||||
Discount on convertible debt | Predecessor [Member] | 61,948 | 61,948 | |||||
Common stock dividends | Predecessor [Member] | (34,680) | (34,680) | |||||
Preferred stock dividends | Predecessor [Member] | (11,489) | (11,489) | |||||
Net income (loss) | Predecessor [Member] | 18,125 | 18,125 | |||||
Ending Balance (Predecessor [Member]) at Jun. 30, 2014 | $ 468 | 1,837,462 | (103,371) | 1 | 1,734,560 | ||
Ending Balance (in shares) (Predecessor [Member]) at Jun. 30, 2014 | 93,720,000 | ||||||
Common stock issued, net of direct costs | Predecessor [Member] | $ 4 | 2,332 | 2,336 | ||||
Common stock issued, net of direct costs (in shares) | Predecessor [Member] | 923,000 | ||||||
Common stock based compensation | Predecessor [Member] | 4,124 | 4,124 | |||||
Common stock dividends | Predecessor [Member] | (24,436) | (24,436) | |||||
Preferred stock dividends | Predecessor [Member] | (11,468) | (11,468) | |||||
Net income (loss) | Predecessor [Member] | (2,433,838) | (2,433,838) | |||||
Ending Balance (Predecessor [Member]) at Jun. 30, 2015 | $ 472 | 1,843,918 | (2,573,113) | 1 | $ (728,722) | ||
Ending Balance (in shares) (Predecessor [Member]) at Jun. 30, 2015 | 94,643,000 | 94,643,498 | |||||
Common stock issued, net of direct costs | Predecessor [Member] | $ 16 | 430 | $ 446 | ||||
Common stock issued, net of direct costs (in shares) | Predecessor [Member] | 3,181,000 | ||||||
Common stock based compensation | Predecessor [Member] | 1,336 | 1,336 | |||||
Preferred stock dividends | Predecessor [Member] | (8,394) | (8,394) | |||||
Net income (loss) | Predecessor [Member] | (1,918,751) | (1,918,751) | |||||
Ending Balance (Predecessor [Member]) at Jun. 30, 2016 | $ 488 | 1,845,684 | (4,500,258) | 1 | $ (2,654,085) | ||
Ending Balance (in shares) (Predecessor [Member]) at Jun. 30, 2016 | 97,824,000 | 97,824,054 | |||||
Common stock issued, net of direct costs | $ 16 | (16) | |||||
Common stock issued, net of direct costs (in shares) | 3,146,000 | ||||||
Common stock based compensation | Predecessor [Member] | 183 | $ 183 | |||||
Cancellation of Predecessor equity | Predecessor [Member] | $ (504) | (1,845,851) | 1,846,355 | (1) | (1) | ||
Net income (loss) | Predecessor [Member] | 2,653,903 | 2,653,903 | [1] | ||||
Ending Balance (Predecessor [Member]) at Dec. 31, 2016 | 504 | 1,845,851 | (1,846,355) | $ 1 | 1 | ||
Ending Balance (Successor [Member]) at Dec. 31, 2016 | $ 332 | $ 880,286 | $ (406,275) | $ 474,343 | |||
Ending Balance (in shares) (Predecessor [Member]) at Dec. 31, 2016 | 100,970,000 | ||||||
Ending Balance (in shares) (Successor [Member]) at Dec. 31, 2016 | 33,212,000 | 33,211,594 | |||||
[1] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Successor [Member] | ||||||
Cash Flows From Operating Activities | ||||||
Net income (loss) | $ (406,275) | |||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||
Depreciation, depletion and amortization | ||||||
Impairment of oil and natural gas properties | 406,275 | |||||
Goodwill impairment | ||||||
Deferred income tax expense (benefit) | ||||||
Change in fair value of derivative financial instruments | ||||||
Accretion of asset retirement obligations | ||||||
Loss from equity method investees | ||||||
Gain on early extinguishment of debt | ||||||
Reorganization items | ||||||
Amortization and write-off of debt issuance costs, payment of interest in kind and other | ||||||
Deferred rent | ||||||
Provision for loss on accounts receivable | ||||||
Stock-based compensation | ||||||
Changes in operating assets and liabilities | ||||||
Accounts receivable | ||||||
Prepaid expenses and other current assets | ||||||
Change in restricted cash | ||||||
Settlement of asset retirement obligations | ||||||
Accounts payable and accrued liabilities | ||||||
Net Cash (Used in) Provided by Operating Activities | ||||||
Cash Flows from Investing Activities | ||||||
Acquisitions, net of cash | ||||||
Capital expenditures | ||||||
Insurance payments received | ||||||
Change in equity method investments | ||||||
Change in restricted cash | ||||||
Proceeds from the sale of properties | ||||||
Other | ||||||
Net Cash Used in Investing Activities | ||||||
Cash Flows from Financing Activities | ||||||
Proceeds from the issuance of common and preferred stock, net of offering costs | ||||||
Proceeds from convertible debt allocated to additional paid-in capital | ||||||
Repurchase of company common stock | ||||||
Dividends to shareholders - common | ||||||
Dividends to shareholders - preferred | ||||||
Cash restricted under revolving credit facility related to property sold | ||||||
Proceeds from long-term debt | ||||||
Payments on long-term debt | ||||||
Payment of debt assumed in acquisition | ||||||
Fees related to debt extinguishment | ||||||
Debt issuance costs | ||||||
Other | ||||||
Net Cash (Used in) Provided by Financing Activities | ||||||
Net (Decrease) Increase in Cash and Cash Equivalents | ||||||
Cash and Cash Equivalents, end of period | 165,368 | $ 165,368 | ||||
Predecessor [Member] | ||||||
Cash Flows From Operating Activities | ||||||
Net income (loss) | 2,653,903 | [1] | $ (1,918,751) | $ (2,433,838) | $ 18,125 | |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||||||
Depreciation, depletion and amortization | 60,626 | 339,516 | 705,521 | 414,026 | ||
Impairment of oil and natural gas properties | 86,820 | 2,813,570 | 2,421,884 | |||
Goodwill impairment | 329,293 | |||||
Deferred income tax expense (benefit) | (614,383) | 31,379 | ||||
Change in fair value of derivative financial instruments | 19,163 | (52,036) | 69,656 | |||
Accretion of asset retirement obligations | 38,973 | 64,690 | 50,081 | 30,183 | ||
Loss from equity method investees | 10,746 | 17,165 | 5,231 | |||
Gain on early extinguishment of debt | (1,525,596) | |||||
Reorganization items | (2,838,963) | |||||
Amortization and write-off of debt issuance costs, payment of interest in kind and other | 5,025 | 138,473 | 23,247 | 13,774 | ||
Deferred rent | 3,355 | 9,154 | ||||
Provision for loss on accounts receivable | 3,200 | |||||
Stock-based compensation | 183 | 1,336 | 4,124 | 6,711 | ||
Changes in operating assets and liabilities | ||||||
Accounts receivable | (16,545) | 42,742 | 51,284 | 63,283 | ||
Prepaid expenses and other current assets | 552 | (24,438) | 48,062 | 6,019 | ||
Change in restricted cash | (25,157) | |||||
Settlement of asset retirement obligations | (18,852) | (78,273) | (106,573) | (57,391) | ||
Accounts payable and accrued liabilities | 32,607 | (62,187) | (113,078) | (55,536) | ||
Net Cash (Used in) Provided by Operating Activities | (17,473) | (166,655) | 330,753 | 545,460 | ||
Cash Flows from Investing Activities | ||||||
Acquisitions, net of cash | (2,797) | (301) | (849,641) | |||
Capital expenditures | (20,237) | (111,884) | (723,829) | (788,676) | ||
Insurance payments received | 8,251 | 3,920 | 1,983 | |||
Change in equity method investments | 12,642 | (34,294) | ||||
Change in restricted cash | 31,748 | (22,136) | (14,676) | (325) | ||
Proceeds from the sale of properties | 5,693 | 261,931 | 126,265 | |||
Other | 195 | (40) | (135) | 113 | ||
Net Cash Used in Investing Activities | 11,706 | (122,913) | (460,448) | (1,544,575) | ||
Cash Flows from Financing Activities | ||||||
Proceeds from the issuance of common and preferred stock, net of offering costs | 334 | 2,336 | 3,994 | |||
Proceeds from convertible debt allocated to additional paid-in capital | 63,432 | |||||
Repurchase of company common stock | (184,263) | |||||
Dividends to shareholders - common | (24,436) | (34,680) | ||||
Dividends to shareholders - preferred | (5,673) | (11,468) | (11,489) | |||
Cash restricted under revolving credit facility related to property sold | (21,000) | |||||
Proceeds from long-term debt | 1,121 | 2,586,572 | 3,420,873 | |||
Payments on long-term debt | (32,088) | (227,884) | (1,747,849) | (2,079,485) | ||
Payment of debt assumed in acquisition | (25,187) | |||||
Fees related to debt extinguishment | (3,526) | |||||
Debt issuance costs | (2,163) | (43,352) | (33,461) | |||
Other | (35) | (1,044) | (66) | |||
Net Cash (Used in) Provided by Financing Activities | (32,123) | (264,022) | 740,737 | 1,144,921 | ||
Net (Decrease) Increase in Cash and Cash Equivalents | (37,890) | (553,590) | 611,042 | 145,806 | ||
Cash and Cash Equivalents, beginning of period | 203,258 | 756,848 | 145,806 | |||
Cash and Cash Equivalents, end of period | $ 165,368 | $ 165,368 | $ 203,258 | $ 756,848 | $ 145,806 | |
[1] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. |
Organization
Organization | 6 Months Ended |
Dec. 31, 2016 | |
Organization [Abstract] | |
Organization | Note 1 — Organization Nature of Operations Energy XXI Gulf Coast, Inc. (“EGC”), a Delaware corporation, was incorporated on February 7, 2006. Prior to emergence from the Chapter 11 Cases, EGC was an indirect wholly owned operating subsidiary of Energy XXI Ltd (“EXXI Ltd”). We are headquartered in Houston, Texas and have historically engaged in the acquisition, exploration, development and operation of oil and natural gas properties onshore in Louisiana and Texas and offshore in the Gulf of Mexico Shelf, which is an area in less than 1,000 feet of water (“GoM Shelf”). On April 14, 2016 , EXXI Ltd, an exempt company incorporated under the laws of Bermuda and predecessor of the Reorganized EGC (as defined below) under this transition report for the six month transition period ended December 31, 2016, EGC, EPL Oil & Gas, Inc. (“EPL”), an indirect wholly-owned subsidiary of EXXI Ltd and certain other indirect wholly-owned subsidiaries of EXXI Ltd filed voluntary petitions for reorganization in the Bankruptcy Court seeking relief under the provisions of Chapter 11. On December 13, 2016, the Bankruptcy Court entered the Confirmation Order and on December 30, 2016, the Debtors emerged from bankruptcy. In connection therewith, EXXI Ltd and its subsidiaries completed a series of internal reorganization transactions pursuant to which EXXI Ltd transferred all of its remaining assets to Energy XXI Gulf Coast, Inc. (the “Reorganized EGC”). In accordance with ASC 852, the Reorganized EGC applied fresh start accounting upon Predecessor’s emergence from bankruptcy and it evaluated transaction activity between the Emergence Date and December 31, 2016 and concluded an accounting convenience date of December 31, 2016 (the “Convenience Date”) was appropriate. References to “Reorganized EGC,” “Company,” “we,” “our”, “Successor”, “Successor Company” or similar terms when used in reference to the period subsequent to the emergence from the bankruptcy refer to Reorganized EGC, the new Parent entity and successor issuer of EXXI Ltd pursuant to Rule 12g-3(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). References in these consolidated financial statements to “EXXI Ltd,” “we,” “our”, “Predecessor”, “Predecessor Company” or similar terms when used in reference to the periods prior to the emergence from the bankruptcy refer to Energy XXI Ltd, the predecessor and former parent entity that will be dissolved upon the completion of the Bermuda Proceeding (as defined below). References in these consolidated financial statements to “EGC” refer to Energy XXI Gulf Coast, Inc. in the periods prior to the emergence from the bankruptcy during which it was the wholly-owned operating subsidiary of EXXI Ltd. On February 7, 2017, the board of directors of the Company ( the “ Board ”) adopted a resolution to change the Company's fiscal year end from June 30 to December 31. As a result, these financial statements are a transition report and include financial information for the transition period from July 1, 2016 through December 31, 2016. Subsequent to this report, our reports on Form 10-K will cover the calendar year, January 1 to December 31, which will be our fiscal year. Unless otherwise noted, all references to “years” in this Form 10-K refer to the twelve-month fiscal year, which, prior to July 1, 2016 ended on June 30, and, beginning after June 30, 2016, ends on December 31. The audited financial statements of the Successor on December 31, 2016 reflect an impairment of our oil and natural gas properties of approximately $406.3 million which we recognized due to the differences between the fair value of oil and natural gas properties recorded as part of fresh start accounting and the limitation of capitalized costs prescribed under Regulation S-X Rule 4-10. The most significant difference relates to the use of forward looking oil and natural gas prices in the determination of fair value as opposed to the use of historical first day of the month 12-month average oil and gas prices used in the calculation of limitation on capitalized costs. Reserve adjustment factors as well as the weighted average cost of capital also impacted the determination of the fair value of oil and natural gas properties recorded in fresh start accounting. Emergence from Chapter 11 On April 14, 2016 (the “Petition Date”), EXXI Ltd, EGC, EPL Oil & Gas, Inc., an indirect wholly-owned subsidiary of Energy XXI Ltd (“EPL”) and certain other subsidiaries of Energy XXI Ltd (together with Energy XXI Ltd, the “Debtors”) (excluding Energy XXI GIGS Services, LLC, which leases a subsea pipeline gathering system located in the shallow GoM Shelf and storage and onshore processing facilities on Grand Isle, Louisiana, Energy XXI Insurance Limited through which certain insurance coverage for its operations is obtained by the Company, Energy XXI (US Holdings) Limited, Energy XXI International Limited, Energy XXI Malaysia Limited and Energy XXI M21K, LLC, (together, the “Non-Debtors”)) filed voluntary petitions for reorganization (the petitions collectively, the “Bankruptcy Petitions”) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”) seeking relief under the provisions of chapter 11 of Title 11 (“Chapter 11”) of the United States Bankruptcy Code (the “Bankruptcy Code”). The Debtors’ Chapter 11 cases (collectively, the “Chapter 11 Cases”) were jointly administered under the caption “In re: Energy XXI Ltd, et al., Case No. 16-31928.” Thereafter until emergence, the Debtors operated their businesses and managed their assets as debtors-in-possession under the jurisdiction of the Bankruptcy Court in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. As a result of filing the Bankruptcy Petitions, EXXI Ltd’s common stock was delisted from the Nasdaq Global Select Market (the “NASDAQ”) and on May 19, 2016, its registration under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) was withdrawn. As a result, EXXI Ltd’s common stock was deemed registered pursuant to Section 12(g) of the Exchange Act pursuant to Exchange Act Rule 12g-2(b). Concurrently with the filing of the Bankruptcy Petitions, EXXI Ltd filed a petition seeking an order for liquidation of EXXI Ltd in the Supreme Court of Bermuda (the “Bermuda Court”) (the “Bermuda Proceeding”). On April 15, 2016, John C. McKenna was appointed as provisional liquidator (“Provisional Liquidator”) by the Bermuda Court. In light of the Plan and the emergence of EXXI Ltd, the Bermuda Court granted the entry into a winding up order formally placing EXXI Ltd in liquidation and confirming John C. McKenna as Provisional Liquidator. The liquidation is expected to be completed during the first half of 2017, and EXXI Ltd will, at such conclusion, be dissolved. During the pendency of the Bermuda Proceeding, EXXI Ltd has adopted a modified reporting program with respect to its reporting obligations under federal securities laws. EXXI Ltd does not intend to file periodic reports while the Bermuda Proceeding is pending, but will continue to file current reports on Form 8-K as required by federal securities laws. On July 15, 2016, the Bankruptcy Court entered the Order (A) Approving the Disclosure Statement and the Form and Manner of Service Related Thereto, (B) Setting Dates for the Objection Deadline and Hearing Relating to Confirmation of the Plan and (C) Granting Related Relief . On July 18, 2016, the Debtors filed the solicitation version of the Debtors’ Third Amended Disclosure Statement (as amended, modified, or supplemented from time to time, the “Disclosure Statement”). On November 21, 2016, the Debtors filed the Second Amended Proposed Joint Chapter 11 Plan of Reorganization (as amended, modified, or supplemented from time to time, the “Plan”) and the solicitation version of the Second Supplement to the Disclosure Statement Setting Forth Modifications to the Plan (as amended, modified, or supplemented from time to time, the “Disclosure Statement Supplement”). On November 21, 2016, the Bankruptcy Court entered the Order (A) Approving the Adequacy of the Disclosure Statement Supplement to the Debtors’ Third Amended Disclosure Statement Setting Forth Modifications to the Debtors’ Plan and the Continued Solicitation of the Plan and (B) Granting Related Relief approving updated solicitation and tabulation procedures with respect to the Plan. On December 13, 2016, the Bankruptcy Court entered an order (the “Confirmation Order”) pursuant to the Bankruptcy Code, which approved and confirmed the Plan as modified by the Confirmation Order. On December 30, 2016 (the “Emergence Date”), the Debtors satisfied the conditions to effectiveness, the Plan became effective in accordance with its terms and the Company and the other reorganized Debtors (with the Company, the “Reorganized Debtors”) emerged from Chapter 11 Cases. In connection with the satisfaction of the conditions to effectiveness as set forth in the Confirmation Order and in the Plan, EXXI Ltd and its subsidiaries completed a series of internal reorganization transactions pursuant to which EXXI Ltd transferred all of its remaining assets to Reorganized EGC, as the new parent entity (the “Company”). Accordingly, Reorganized EGC succeeded to the entire business and operations previously consolidated for accounting purposes by EXXI Ltd. Upon emergence from the Chapter 11 Cases, the Company adopted fresh start accounting in accordance with the provisions set forth in Accounting Standards Codification (“ASC”) 852, Reorganizations (“ASC 852”), because (i) the holders of existing voting shares of EXXI Ltd prior to its emergence received less than 50% of the voting shares of the Reorganized EGC outstanding following its emergence from bankruptcy and (ii) the reorganization value of EXXI Ltd’s assets immediately prior to confirmation of the Plan was less than its post-petition liabilities and allowed claims. Under ASC 852, the Company is considered a new legal entity for accounting purposes. For reporting purposes, the pre-reorganization predecessor reflects the business that was transferred to the Reorganized EGC. The financial statements of the pre-reorganization predecessor are EXXI Ltd’s consolidated financial statements. On January 6, 2017, the Company filed a Current Report on Form 8-K as the initial report of the Company to the Securities and Exchange Commission (the “SEC”) and as notice that the Company is the successor issuer to EXXI Ltd under Rule 12g-3 under the Exchange Act. As a result, the shares of common stock of the Company, par value $0.01 per share, are deemed to be registered under Section 12(g) of the Exchange Act. The Company is thereby deemed subject to the informational requirements of the Exchange Act, and the rules and regulations promulgated thereunder, and in accordance therewith will file reports and other information with the Commission. Plan of Reorganization In accordance with the Plan, the following significant transactions occurred: Prepetition Notes In accordance with the Plan, on the Emergence Date, all outstanding obligations under the following notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled: · 11.0% senior secured second lien notes due March 15, 2020 (the “Second Lien Notes”) issued pursuant to that certain Indenture, dated as of March 12, 2015, among EGC, the guarantors party thereto, and U.S. Bank, N.A., as trustee, and all amendments, supplements or modifications thereto and extensions thereof; · 6.875% senior unsecured notes due March 15, 2024 (the “EGC 6.875 Senior Notes”) issued pursuant to that certain indenture, dated May 27, 2014, among EGC, the guarantors party thereto, and Wilmington Trust, National Association, as successor to Wells Fargo Bank, National Association, and all amendments, supplements or modifications thereto and extensions thereof; · 7.50% senior unsecured notes due December 15, 2021 (the “EGC 7.50% Senior Notes”) issued pursuant to that certain indenture, dated September 26, 2013, among EGC, the guarantors party thereto, and Wilmington Trust, National Association, as successor to Wells Fargo Bank, National Association, and all amendments, supplements or modifications thereto and extensions thereof; · 7.75% senior unsecured notes due June 15, 2019 (the “EGC 7.75% Senior Notes”) issued pursuant to that certain indenture, dated February 25, 2011, among EGC, the guarantors party thereto, and Wilmington Trust, National Association, as successor to Wells Fargo Bank, National Association, and all amendments, supplements or modifications thereto and extensions thereof; · 9.25% senior unsecured notes due December 15, 2017 (the “EGC 9.25% Senior Notes,” and together with the EGC 6.875% Senior Notes, the EGC 7.50% Senior Notes, the EGC 7.75% Senior Notes and the “EGC Unsecured Notes”) issued pursuant to that certain indenture, dated December 17, 2010, among EGC, the guarantors party thereto, and Wilmington Trust, National Association, as successor to Wells Fargo Bank, National Association, and all amendments, supplements or modifications thereto and extensions thereof; · 8.25% senior unsecured notes due February 15, 2018 (the “EPL 8.25% Senior Notes”) issued pursuant to that certain indenture, dated as of February 14, 2011, by and EGC, the guarantors party thereto, and U.S. Bank National Association, as trustee, and all amendments, supplements or modifications thereto and extensions thereof; and · 3.0% senior convertible notes due on December 15, 2018 (the “EXXI 3.0% Senior Convertible Notes”) issued pursuant to that certain indenture dated as of November 22, 2013 among EXXI Ltd and Wilmington Savings Fund Society, FSB, as trustee, and all amendments, supplements or modifications thereto and extensions thereof. Prepetition Revolving Credit Facility and Exit Facility On the E mergence Date, by operation of the Plan, all outstanding obligations under the Second Amended and Restated First Lien Credit Agreement (the “Prepetition Credit Agreement” or the “Prepetition Revolving Credit Facility”) and the related collateral agreements were cancelled and the credit agreements governing such obligations were cancelled. Pursuant to the Plan, on the Emergence Date, the Company, as Borrower, and the other Reorganized Debtors entered into a new three -year secured credit facility (the “Exit Facility”) with the prior lenders under the Prepetition Revolving Credit Facility. The Exit Facility is secured by mortgages on at least 90% of the value of our and our subsidiary guarantors proved reserves and proved developed producing reserves. The Exit Facility is comprised of two facilities: (i) a term loan facility (the “Exit Term Loan”) resulting from the conversion of the remaining drawn amount under the Prepetition Revolving Credit Facility of approximately $74 million plus accrued default interest, fees and expenses and (ii) a revolving credit facility (the “Exit Revolving Facility”) resulting from the conversion of the former EGC tranche of the Prepetition Revolving Credit Facility, which provides for the making of revolving loans and the issuance of letters of credit. On the Emergence Date, the aggregate commitments under the Exit Revolving Facility were $227.8 million, all of which will be utilized to maintain in effect outstanding letters of credit, including $225 million of letters of credit issued in favor of Exxon Mobil Corporation (“ExxonMobil”) to secure certain plugging and abandonment obligations. Equity Interests and Warrant Agreement As a result of the Plan, there are no assets remaining in EXXI Ltd, and, under Bermuda law, shareholders (including preferred shareholders) of EXXI Ltd will receive no payments and all of its existing share-based compensation plans were also cancelled. EXXI Ltd will be dissolved at the conclusion of the Bermuda Proceeding, and as such, the shareholders will no longer have any interest in EXXI Ltd as a matter of Bermuda law. On the Emergence Date, the Reorganized EGC entered into a warrant agreement (the “Warrant Agreement”) with Continental Stock Transfer & Trust Company, as Warrant Agent. Pursuant to the terms of the Plan, Reorganized EGC issued 2,119,889 warrants to certain prepetition noteholders pursuant to the Plan. On the Emergence Date, the Company issued 100% of its shares of common stock to certain of the Debtors’ creditors pursuant to the Plan. The Company issued (i) 27,897,739 shares of common stock, pro rata, to holders of the claims arising from the Second Lien Notes, (ii) 3,985,391 shares of common stock, pro rata, to holders of the claims arising from the EGC Unsecured Notes (the “EGC Unsecured Notes Claims”), (iii) 1,328,464 shares of common stock, pro rata, to holders of the claims arising from the EPL 8.25% Senior Notes (the “EPL Unsecured Notes Claims”), (iv) 1,271,933 warrants, pro rata, to holders of the EGC Unsecured Notes Claims; and (v) 847,956 warrants, pro rata, to holders of the EPL Unsecured Notes Claims. The Confirmation Order and Plan provide for the exemption of the offer and sale of the shares of the Company’s common stock and warrants (including shares of the Company’s common stock issuable upon the exercise thereof) from the registration requirements of the Securities Act of 1933 (the “Securities Act”) pursuant to Section 1145(a)(1) of the Bankruptcy Code. Section 1145(a)(1) of the Bankruptcy Code exempts the offer and sale of securities under the Plan from registration under Section 5 of the Securities Act and state laws if certain requirements are satisfied. Long Term Incentive Plan and Schiller Employment and Consulting Agreement As of the Emergence Date, the Company also entered into the Energy XXI Gulf Coast, Inc. 2016 Long Term Incentive Plan (the “2016 LTIP”), which is a comprehensive equity-based award plan as part of the go-forward compensation for the Reorganized Debtors’ officers, directors, employees and consultants (“Service Providers”) and an employment agreement with our former Chief Executive Officer, John D. Schiller, Jr. On February 2, 2017, John D. Schiller, Jr. resigned from his position as President and Chief Executive Officer (“CEO”) of the Company and also ceased to serve as a member of the Board. As a result, on February 2, 2017, the Board appointed Michael S. Reddin, the Company’s Chairman of the Board, to serve as the Company’s CEO and President on an interim basis. Mr. Reddin will continue to serve as Chairman of the Board. Because Mr. Reddin is now serving as both as Chairman of the Board and CEO, the Board has amended and restated the Company’s bylaws to provide for a Lead Independent Director and has appointed director James “Jay” W. Swent III to serve in that capacity. In order to eliminate the Board vacancy created by Mr. Schiller’s departure from the Board, the size of the Board was reduced from seven to six on February 2, 2017. In connection with his termination of employment, the employment-related provisions of his Employment Agreement, dated as of December 30, 2016, with the Company (the “Schiller Employment Agreement”) were terminated as of February 2, 2017. Under the Schiller Employment Agreement, Mr. Schiller is entitled to receive the following benefits, subject to his entry into a waiver and release agreement (i) a lump-sum cash severance payment in the amount of $2 million, and (ii) reimbursement for the monthly cost of maintaining health benefits for Mr. Schiller and his spouse and eligible dependents as of the date of his termination for a period of 18 months to the extent Mr. Schiller elects COBRA continuation coverage, less app licable taxes and withholding. The $2 million cash severance payment is payable on April 3, 2017, the 60th day after the termination date. On February 2, 2017, the Company entered into a consulting agreement (the “Schiller Consulting Agreement”) with Mr. Schiller, pursuant to which Mr. Schiller has agreed to serve as a special advisor to the Board during a transition period of up to six months. In consideration for those services, the Company has agreed to pay Mr. Schiller a consulting fee equal to $50,000 per month. Amendments to Articles of Incorporation or Bylaws. Pursuant to the Plan, on the Emergence Date, the Company’s certificate of incorporation and bylaws were amended and restated in their entirety. Each of the Company’s Second Amended and Restated Certificate of Incorporation (our “Cert ificate of Incorporation”) and second amended and restated b ylaws became effective on the Emergence Date. Under the Certificate of Incorporation, the total number of all shares of capital stock that the Company is authorized to issue is 110 million shares, consisting of 100 million shares of the Company’s common stock, par value $0.01 per share, and 10 million shares of preferred stock, par value $0.01 per share . In order to permit Mr. Reddin to be appointed CEO on an interim basis, the Board adopted the Third Amended and Restated Bylaws (the “ Bylaws” ) on February 2, 2017. Pursuant to the Bylaws, Section 4.1 was amended to provide that the positions of Chairman of the Board and Chief Executive Officer may be held by the same person only if (i) the two positions are held by the same person solely on an interim basis and (ii) the Board elects a Lead Independent Director for any period in which the two positions are held by the same person. Accordingly, the Bylaws added a new Section 3.8 to establish the position of Lead Independent Director and specified that position’s duties. The Bylaws provide that, during any period in which a Lead Independent Director is serving, the Lead Independent Director may, among other responsibilities, call and preside over all meetings of independent directors and, in the Chairman of the Board’s absence, preside over all meetings of the Company’s stockholders and of the Board. After adopting the Bylaws, the Board appointed James “Jay” W. Swent III to serve as Lead Independent Director. Mr. Swent is an existing member of the Board, and will continue to serve as chairman of the Audit Committee of the Board. Mr. Swent has more than 35 years of global business and senior leadership experience. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements | Note 2 — Summary of Significant Accounting Policies and Recent Accounting Pronouncements Principles of Consolidation and Reporting. The accompanying consolidated financial statements on December 31, 2016 include the accounts of Reorganized EGC and its wholly-owned subsidiaries and for prior periods, the accompanying consolidated financial statements include the accounts of Energy XXI Ltd and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). All significant intercompany accounts and transactions are eliminated in consolidation. Our interests in oil and natural gas exploration and production ventures and partnerships are proportionately consolidated. For periods subsequent to filing the Bankruptcy Petitions, we have prepared the Predecessor’s consolidated financial statements in accordance with ASC 852. ASC 852 requires that the financial statements distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, a gain on settlement of liabilities subject to compromise, a fair value adjustment gain and professional fees incurred in the Chapter 11 Cases have been recorded in a reorganization line item on the consolidated statements of operations. In addition, ASC 852 provides for changes in the accounting and presentation of significant items on the consolidated balance sheets, particularly liabilities. Pre-petition obligations that may be impacted by the Chapter 11 reorganization process have been classified on the Predecessor consolidated balance sheets in liabilities subject to compromise. Fresh-start Accounting. Upon emergence from bankruptcy, in accordance with ASC 852 related to fresh-start accounting, Reorganized EGC became a new entity for financial reporting purposes. Upon adoption of fresh-start accounting, our assets and liabilities were recorded at their fair values as of the Convenience Date. The Convenience Date fair values of our assets and liabilities differed materially from the recorded values of our assets and liabilities as reflected in the Predecessor historical consolidated balance sheets. The effects of the Plan and the application of fresh-start accounting are reflected in our consolidated balance sheet as of December 31, 2016 and the related adjustments thereto were recorded in the consolidated statement of operations of the Predecessor as reorganization items during the six month transition period ended December 31, 2016. Accordingly, Reorganized EGC’s consolidated financial statements as of and subsequent to December 31, 2016 are not and will not be comparable to the Predecessor consolidated financial statements prior to the Convenience Date. Our consolidated financial statements and related footnotes are presented with a black line division which delineates the lack of comparability between amounts presented on December 31, 2016 and dates prior. Our financial results for future periods following the application of fresh-start accounting will be different from historical trends and the differences may be material. Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates of proved reserves are key components of our depletion rate for our proved oil and natural gas properties and the full cost ceiling test limitation. Other items subject to estimates and assumptions include fair value estimates used in fresh start accounting; accounting for acquisitions and dispositions; carrying amounts of property; plant and equipment; goodwill; asset retirement obligations; deferred income taxes; valuation of derivative financial instruments; reorganization items and liabilities subject to compromise, among others. Accordingly, our accounting estimates require the exercise of judgment by management in preparing such estimates. While we believe that the estimates and assumptions used in preparation of our consolidated financial statements are appropriate, actual results could differ from those estimates, and any such differences may be material. Cash and Cash Equivalents. We consider all highly liquid investments, with maturities of 90 days or less when purchased, to be cash and cash equivalents. Restricted Cash . We maintain restricted escrow funds in trusts as required by certain contractual arrangements and disposition transactions. Amounts on deposit in trust accounts are reflected in restricted cash on our consolidated balance sheets. Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at historical carrying amount net of allowance for doubtful accounts. We establish provisions for losses on accounts receivable if it is determined that collection of all or a part of an outstanding balance is not probable. Collectability is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. As of December 31, 2016, there was no allowance for doubtful accounts . As of June 30, 2016, our allowance for doubtful accounts was $3.2 million. As of June 30, 2015, no allowance for doubtful accounts was necessary. Oil and Natural Gas Properties . We use the full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (“SEC”). Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as properties and equipment. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves. Oil and natural gas properties include costs that are excluded from costs being depleted or amortized. Costs excluded from depletion or amortization represent investments in unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. We exclude these costs until the property has been evaluated. We also allocate a portion of our acquisition costs to unevaluated properties based on fair value. Costs associated with unevaluated properties are transferred to evaluated properties upon the earlier of (i) a determination as to whether there are any proved reserves related to the properties or the costs are impaired , (ii) a determination that the capital costs associated with the development of these properties will not be available, or (iii) ratably over a period of time of not more than four years. We evaluate the impairment of our evaluated oil and natural gas properties through the use of a ceiling test as prescribed by SEC Regulation S-X Rule 4-10. Estimated future production volumes from oil and natural gas properties are a significant factor in determining the full cost ceiling limitation of capitalized costs. There are numerous uncertainties inherent in estimating quantities of proved oil and natural gas reserves. Oil and natural gas reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be precisely measured. Such cost estimates related to future development costs of proved oil and natural gas reserves could be subject to revisions due to changes in regulatory requirements, technological advances and other fa ctors which are difficult to predict. On December 31, 2016, the Company, subsequent to its emergence from bankruptcy, recorded an impairment of its oil and natural gas properties of approximately $406.3 million due to the differences between the fair value of oil and natural gas properties recorded as part of fresh start accounting and the limitation of capitalized costs prescribed under Regulation S-X Rule 4-10. The most significant difference relates to the use of forward looking oil and natural gas prices in the determination of fair value as opposed to the use of historical first day of the month 12-month average oil and natural gas prices used in the calculation of limitation on capitalized costs. Reserve adjustment factors as well as the weighted average cost of capital also impacted the determination of the fair value of oil and natural gas properties recorded in fresh start accounting. For the three months ended September 30, 2016, EXXI Ltd’s ceiling test computation resulted in an impairment of its oil and natural gas properties of $86.8 million. Depreciation, Depletion and Amortization. The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of accumulated depreciation, depletion, amortization and impairment, estimated future development costs and asset retirement costs not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized using the unit-of-production method over total proved reserves. Weather Based Insurance Linked Securities . We obtain Weather Based Insurance Linked Securities (“Securities”), to mitigate potential loss to our oil and natural gas properties from hurricanes in the Gulf of Mexico. These Securities provide for payments of negotiated amounts should a pre-defined category hurricane pass within specific pre-defined areas encompassing our oil and natural gas producing fields. Since these Securities were obtained to mitigate potential loss due to hurricanes in the Gulf of Mexico, the majority of the premiums associated with these Securities are charged to expense during the period associated with the hurricane season, typically June 1 to November 30. The amortization of insurance premiums for these Securities is recorded as a component of our lease operating expense. Other Property and Equipment. Other property and equipment include buildings, data processing and telecommunications equipment, office furniture and equipment, vehicle and leasehold improvements and other fixed assets. These items are recorded at cost and are depreciated using the straight-line method based on expected lives of the individual assets or group of assets, which ranges from three to five years. Repairs and maintenance costs are expensed in the period incurred. Business Combinations. For properties acquired in a business combination, we allocate the cost of the acquisition to assets acquired and liabilities assumed based on fair values as of the acquisition date. Deferred taxes are recorded for any differences between the assigned values and tax bases of assets and liabilities. Any excess of the purchase price over amounts assigned to assets and liabilities is recorded as goodwill. Any excess of amounts assigned to assets and liabilities over the purchase price is recorded as a gain on bargain purchase. The amount of goodwill or gain on bargain purchase recorded in any particular business combination can vary significantly depending upon the values attributed to assets acquired and liabilities assumed. In estimating the fair values of assets acquired and liabilities assumed in a business combination, we make various assumptions. The most significant assumptions relate to the estimated fair values assigned to proved and unproved oil and natural gas properties. To estimate the fair values of these properties, we prepare estimates of crude oil and natural gas reserves. We estimate future prices to apply to the estimated reserves quantities acquired, and estimate future operating and development costs, to arrive at estimates of future net cash flows. For estimated proved reserves, the future net cash flows are discounted using a market-based weighted average cost of capital rate determined appropriate at the time of the acquisition. The market-based weighted average cost of capital rate is subjected to additional project-specific risking factors. To compensate for the inherent risk of estimating and valuing unproved reserves, the discounted future net cash flows of probable and possible reserves are reduced by additional risk-weighting factors. Estimated deferred taxes are based on available information concerning the tax basis of assets acquired and liabilities assumed and loss carryforwards at the acquisition date, although such estimates may change in the future as additional information becomes known. Goodwill. Goodwill has an indefinite useful life and is not amortized, but rather is tested for impairment at least annually during the third quarter, unless events occur or circumstances change between annual tests that would more likely than not reduce the fair value of a related reporting unit below its carrying value. Impairment occurs when the carrying amount of goodwill exceeds its implied fair value. Goodwill arose in the year ended June 30, 2014 in connection with the acquisition of EPL and was recorded to our oil and gas reporting unit. At December 31, 2014, we conducted a qualitative goodwill impairment assessment and after assessing the relevant events and circumstances, we determined that performing a quantitative goodwill impairment test was necessary. Therefore, we performed steps one and two of the goodwill impairment test, which led us to conclude that there would be no remaining implied fair value attributable to goodwill. As a result, we recorded a goodwill impairment charge of $329.3 million to reduce the carrying value of goodwill to zero at December 31, 2014. See Note 6 – “Goodwill” for more information. Derivative Instruments . We have historically used various derivative instruments including crude oil and natural gas put, swap and collar arrangements and combinations of these instruments in order to manage the price risk associated with future crude oil and natural gas production. Derivative financial instruments are recorded at fair value and included as either assets or liabilities in the consolidated balance sheets. We net derivative assets and liabilities for counterparties where we have a legal right of offset. Any premiums paid or financed on derivative financial instruments are capitalized as part of the derivative assets or derivative liabilities, as appropriate, at the time the premiums are paid or financed. Any gains or losses resulting from c hanges in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included in gain (loss) on derivative financial instruments as a component of revenues in the accompanying consolidated statements of operations. Debt Issuance Costs. Costs incurred in connection with the issuance of long-term debt are presented in the consolidated balance sheet as a direct deduction from the carrying amount of that debt liability and are amortized to interest expense generally over the scheduled maturity of the debt utilizing the interest method. Costs incurred in connection with line-of-credit agreements are presented as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings under the line-of-credit arrangement. Asset Retirement Obligations . Our investment in oil and natural gas properties includes an estimate of the future cost associated with dismantlement, abandonment and restoration of our properties. The present value of the future costs are added to the capitalized cost of our oil and natural gas properties and recorded as a long-term or current liability. The capitalized cost is included in oil and natural gas properties that are depleted over the life of the assets. The estimation of future costs associated with dismantlement, abandonment and restoration requires the use of estimated costs in future periods that, in some cases, will not be incurred until a substantial number of years in the future. Such cost estimates could be subject to revisions in subsequent years due to changes in regulatory requirements, technological advances and other factors which may be difficult to predict. Common Stock. Refers to either (i) Reorganized EGC’s common stock, par value $0.01 per share, as designated in its Second Amended and Restated Certificate of Incorporation for the period following emergence from the Chapter 11 or (ii) EXXI Ltd’s common stock, par value $0.005 per share, as designated in its Memorandum of Association. Treasury Stock is accounted for using the cost method. Revenue Recognition. We recognize oil and natural gas revenue when the product is delivered at the contracted sales price, title is transferred and collectability is reasonably assured. The Company has elected the entitlements method to account for gas production imbalances. Gas imbalances occur when we sell more or less than our entitled ownership percentage of total gas production. Any amount received in excess of our share is treated as a liability. If we receive less than our entitled share the underproduction is recorded as a receivable. The amounts of imbalances were not material at December 31, 2016, June 30, 2016 and 2015. General and Administrative Expense . Under the full cost method of accounting, the portion of our general and administrative expense that is directly identified with our exploration and development activities is capitalized as part of our oil and natural gas properties. These capitalized costs include salaries, employee benefits, costs of consulting services, and other direct costs incurred to support those employees directly involved in exploration and development activities. The capitalized costs do not include costs related to production operations, general corporate overhead or similar activities. Our capitalized general and administrative expense directly related to our exploration and development activities for the six month transition period ended December 31, 2016 and for the years ended June 30, 2016, 2015 and 2014 was $ 7.8 million, $17.0 million, $49.2 million, and $64.5 million, respectively. Share-Based Compensation. C ompensation cost for equity awards is based on the fair value of the equity instrument on the date of grant and is recognized over the period during which an independent director or employee is required to provide service in exchange for the award. Compensation cost for liability awards is based on the fair value of the vested award at the end of each reporting period. Income Taxes . Provisions for income taxes include deferred taxes resulting primarily from temporary differences due to different reporting methods for oil and natural gas properties and derivative instruments for financial reporting purposes and income tax purposes. We use the current U.S. Federal statutory rate of 35% for measuring these deferred tax assets and liabilities, as adjusted for any applicable state taxes. For financial reporting purposes, all exploratory and development expenditures are capitalized and depreciated, depleted and amortized on the unit-of-production method. For income tax purposes, only the equipment and leasehold costs relative to successful wells are capitalized and recovered through Depreciation, Depletion and Amortization (“DD&A”). Generally, most other exploratory and development costs are charged to expense as incurred; however, we may use certain provisions of the Tax Code that allow capitalization of intangible drilling costs where management deems appropriate. The tax bases of our assets and other tax attributes (such as net operating loss (“NOL”) that are reflected in fresh-start accounting were heavily influenced by the Tax Attribute Reduction Rules of the Tax Code. As such, we were required to reduce our tax attributes on December 31, 2016 by approximately $2,600 million which equals the amount of cancellation of indebtedness income (“CODI”) that was excluded from current taxation as a result of the indebtedness discharge from the Chapter 11 Cases. The remaining tax bases of our oil and natural gas properties are less than their respective book carrying values as determined in fresh-start accounting such that we have recorded a deferred tax liability for those properties. We have recorded a deferred tax asset for the asset retirement obligation (which has no tax basis and will be tax deductible or result in additional tax basis in assets when settled) and other items that exceed the deferred tax liability for oil and natural gas properties. Accordingly, we have recorded a valuation allowance of $ 174.5 million at December 31, 2016, which results in no net deferred tax asset or liability appearing on our statement of financial position. We recorded this valuation allowance at this date after an evaluation of all available evidence (including our recent history of Predecessor losses) led to a conclusion that based upon the more-likely-than-not standard of the accounting literature; these deferred tax assets were unrecoverable. When recording income tax expense, certain estimates are required to be made by management due to timing and to the impact of future events on when income tax expenses and benefits are recognized by us. We periodically evaluate any tax asset, NOL and other carryforwards to determine whether a gross tax asset, as well as a valuation allowance, should be recognized or adjusted in our consolidated financial statements. We have not recorded any reserves for uncertain income tax positions. Earnings per Share . Basic earnings (loss) per share (“EPS”) amounts have been calculated based on the weighted average number of shares of common stock outstanding for the period. Diluted EPS reflects potential dilution using the treasury stock method. Except when the effect would be anti-dilutive, the diluted EPS calculation includes the impact of the assumed conversion of our Predecessor convertible preferred stock and other potential shares of common stock. Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09. With the one-year deferral, ASU 2014-09 is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are in the initial stages of evaluating the effect of pending adoption of ASU 2014-09 on our financial position and results of operations and continue to evaluate the available transition methods. In February 2016, the FASB issued ASU No. 2016-02, Leases ( “ ASU 2016-02”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB amended the FASB Accounting Standards Codification and creating Topic 842, Leases . The guidance in this ASU supersedes Topic 840, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In the normal course of business, we enter into capital and operating lease agreements to support our operations. We are in the initial stages of evaluating the provisions of ASU 2016-02 to determine the quantitative effects it will have on our consolidated financial statements and related disclosures. We believe the adoption and implementation of this ASU will likely have a material impact on our balance sheet resulting from an increase in both assets and liabilities relating to our leasing activities. In June 2016, the FASB issued ASU No. 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today’s incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. We have not yet determined the effect of this standard on our consolidated financial position, results of operations or cash flows. In August 2016, the FASB issued ASU No. 2016-15, (“ASU 2016-15”). The new guidance in ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new standard is effective for public entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. We have not yet determined the effect of this standard on our consolidated cash flows. |
Chapter 11 Proceedings
Chapter 11 Proceedings | 6 Months Ended |
Dec. 31, 2016 | |
Chapter 11 Proceedings [Abstract] | |
Chapter 11 Proceedings | Note 3 – Chapter 11 Proceedings On April 14, 2016, EXXI Ltd, EGC, EPL and certain other indirect wholly-owned subsidiaries of EXXI Ltd filed voluntary petitions for reorganization in the Bankruptcy Court seeking relief under the provisions of Chapter 11. Following the filing, EXXI Ltd continued to operate its business as a debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. On December 13, 2016, the Bankruptcy Court entered the Confirmation Order , and on December 30, 2016, the Debtors emerged from bankruptcy. Liabilities Subject to Compromise Liabilities subject to compromise represent liabilities incurred prior to the commencement of the bankruptcy proceedings which may be affected by the Chapter 11 process. These amounts represent ed EXXI Ltd ’s allowed claims and its best estimate of claims expected to be allowed which were to be resolved as part of the bankruptcy proceedings. See Note 4 – “Fresh Start Accounting” on final determination on liabilities subject to compromise by the Bankruptcy Court. Liabilities subject to compromise include the following ( in thousands ) : Predecessor June 30, 2016 Debt 11.0% Senior Secured Second Lien Notes due 2020 $ 1,450,000 8.25% Senior Notes due 2018 213,677 6.875% Senior Notes due 2024 143,993 3.0% Senior Convertible Notes due 2018 363,018 7.5% Senior Notes due 2021 238,071 7.75% Senior Notes due 2019 101,077 9.25% Senior Notes due 2017 249,452 4.14% Promissory Note due 2017 4,006 Capital lease obligations 714 Total debt 2,764,008 Accounts payable 38,202 Accrued liabilities 133,938 Total liabilities subject to compromise $ 2,936,148 Interest Expense The Debtors discontinued recording interest on debt classified as liabilities subject to compromise on the Petition Date . Contractual interest on liabilities subject to compromise not reflected in the consolidated statements of operations was approximately $176.5 million, representing interest expense from the Petition Date through December 31, 2016 with approximately $52.8 million, representing interest expense from the Petition Date through June 30, 2016 . Executory Contracts Under the Bankruptcy Code, the Debtors have the right to assume, amend and assume, or reject certain contracts, subject to the approval of the Bankruptcy C ourt and certain other conditions. Generally, the assumption of a contract requires a debtor to satisfy pre-petition obligations under the contract, which may include payment of pre-petition liabilities in whole or in part. Rejection of a contract is typically treated as a breach occurring as of the moment immediately preceding the Chapter 11 filing. Subject to certain exceptions, this rejection relieves the debtor from performing its future obligations under the contract but entitles the counterparty to assert a pre-petition general unsecured claim for damages. Parties to contracts rejected by a debtor may file proofs of claim against that debtor’s estate for damages. On November 29 , 2016, the Debtors filed the Schedule of Rejected Executory Contracts and Unexpired Leases and the Modifications to Schedule of Assumed Executory Contracts and Unexpired Leases as part of the Plan S upplement [Docket No. 1713]. The assumption and rejection of the Debtors’ executory contracts and unexpired leases, as applicable, occurred on the effective date of the Plan in accordance with the terms of the Plan. Potential Claims The Debtors have filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of the Debtors, subject to the assumptions filed in connection therewith. The schedules and statements may be subject to further amendment or modification after filing. Certain holders of pre-petition claims were required to file proofs of claim by August 22, 2016 ( the “ Bar Date ”) . As of February 3, 2017, 1,686 claims totaling approximately $43,359 m illion had been filed with the Bankruptcy Court against the Debtors. It is possible that claimants will file amended claims in the future, including claims amended to assign values to claims originally filed with no designated value. Through the claims resolution process as set forth in the Plan, we have identified, and we expect to continue to identify, claims that we believe should be disallowed by the Bankruptcy Court because they are duplicative, have been later amended or superseded, are without merit, are overstated or for other reasons. We will file objections with the Bankruptcy Court as necessary for claims we believe should be disallowed. Claims we believe are allowable are reflected in “Liabilities Subject to Compromise” in the Consolidated Balance Sheets. Through the claims resolution process, differences in amounts scheduled by the Debtors and claims filed by creditors are being investigated and resolved, including through the filing of objections with the Bankruptcy Court where appropriate. In light of the number of claims filed, the claims resolution process will take additional time to complete, and has continued after our emergence from bankruptcy. Accordingly, the ultimate number and amount of allowed claims is not presently known, nor can the ultimate recovery with respect to allowed claims be presently ascertained. |
Fresh Start Accounting
Fresh Start Accounting | 6 Months Ended |
Dec. 31, 2016 | |
Fresh Start Accounting [Abstract] | |
Fresh Start Accounting | Note 4 – Fresh Start Accounting On the Emergence Date , the Debtors satisfied the conditions to effectiveness, the Plan became effective in accordance with its terms and the Company and the other reorganized Debtors emerged from Chapter 11. In connection with the satisfaction of the conditions to effectiveness as set forth in the Confirmation Order and in the Plan, EXXI Ltd and EGC completed a series of internal reorganization transactions pursuant to which EXXI Ltd transferred all of its remaining assets to R eorganized EGC . A ccordingly, Reorganized EGC succeeded to the entire business and operations previously consolidated for accounting purposes at EXXI Ltd. Reorganized EGC applied fresh start accounting in accordance with the provisions set forth in ASC 852 on the Convenience Date, because (i) the holders of existing voting shares of EXXI Ltd prior to its emergence received less than 50% of the voting shares of the Reorganized EGC outstanding following its emergence from bankruptcy and (ii) the reorganization value of EXXI Ltd ’s assets immediately prior to confirmation of the Plan was less than its post-petition lia bilities and allowed claims . Adopting fresh start accounting results in a new reporting entity for financial reporting purposes with no beginning retained earnings or deficit and we allocated the reorganization value to our individual assets based on their estimated fair values. As a result of the application of fresh start accounting, as well as the effects of the i mplementation of the Plan, the c onsolidated f inancial s tatements on or after the Convenience Date will not be comparable with the consolidated financial s tatements prior to that date. Reorganization Value. Reorganization value represents the fair value of the Company’s total assets prior to the consideration of the liabilities and is intended to approximate the amount a willing buyer would pay for the assets immediately after a restructuring. Under fresh start accounting, we allocated the reorganization value to our individual assets based on their estimated fair values. Our reorganization value is derived from an estimate of enterprise value. Enterprise value represents the estimated fair value of an entity’s interest bearing long term debt and shareholders’ equity. In support of the Plan, the enterprise value of the Successor Company was estimated and approved by the Bankruptcy C ourt to be in the range of $600 million to $900 million. Based on the estimates and assumptions used in determining the enterprise value, as further discussed below, we estimated the enterprise value to be approximately $7 93.7 million. This valuation analysis was prepared using reserve information, development schedules, other financial information and financial projections and applying standard valuation techniques, including risked net asset value analysis and public comparable company analyses. Valuation of Oil and Gas Properties. Our principal assets are our oil and gas properties, which we account for under the full cost method of a ccounting as described in Note 2 – “ Summary of Significant Accounting Policies and Recent Accounting Pronouncements ” . With the assistance of valuation experts, we determined the fair value of our oil and gas properties based on the discounted cash flows expected to be generated from these assets. The computations were based on market conditions and reserves in place as of the Emergence D ate. Our internal reservoir engineers developed full cycle production models for all of our developed wells and identified undeveloped drilling locations within our leased acreage. The undeveloped locations were categorized based on varying levels of risk using industry standards. The proved locations were limited to wells expected to be drilled in the Company’s five year plan. The locations were then segregated into geographic areas. Future cash flows before application of risk factors were estimated by using the New York Mercantile Exchange (“NYMEX”) four year forward prices for West Texas Intermediate (“WTI”) oil and Henry Hub natural gas with inflation adjustments applied to periods beyond four years. These prices were adjusted for typical differentials realized by us for location and product quality adjustments. Transportation cost estimates were based on agreements in place at the Emergence Date. Development and operating costs were based on our recent cost trends adjusted for inflation. Risk factors were determined separately for each geographic area. Based on the geological characteristics of each area appropriate risk factors for each of the reserve categories were applied. We and our valuation experts considered production, geological and mechanical risk to determine the probability factor for each reserve category in each area. The risk adjusted after tax cash flows were discounted at 11.1% . This discount factor was derived from a weighted average cost of capital computation which utilized a blended expected cost of debt and expected returns on equity for similar industry participants. The after tax cash flow computations included utilization of the Company’s unamortized tax basis in the properties as of the Emergence Date. Plugging and abandonment costs were included in the cash flow projections for undeveloped reserves but were excluded for developed reserves since the fair value of this liability was determined separately and included in the Emergence Date liabilities reported on the December 31, 2016 balance sheet. From this analysis we concluded the fair value of our proved reserves was $ 1,127.6 million, the value of our probable reserves was $2 95.3 million and the value of our possible reserves was $ 80.8 million as of the Convenience Date. The value of probable and possible reserves was classified as unevaluated costs. We also reviewed our undeveloped leasehold acreage and concluded that the fair value of our probable and possible reserves appropriately captured the fair value of our undeveloped leasehold acreage. Although the Company believes the assumptions and estimates used to develop enterprise value and reorganization value are reasonable and appropriate, different assumptions and estimates could materially impact the analysis and resulting conclusions. The assumptions used in estimating these values are inherently uncertain and require judgment. The following table reconciles the enterprise value to the estimated fair value of the Successor Company's common stock as of the Convenience Date ( in thousands ): December 31, 2016 Enterprise Value $ 793,747 Add: Cash and cash equivalents 165,368 Less: Fair value of debt (78,497) Fair Value of Successor common stock and warrants 880,618 Less: Fair value of warrants (8,056) Fair Value of Successor common stock $ 872,562 Pursuant to the Plan, on the Emergence Date, the Company, as Borrower, and the other Reorganized Debtors entered into a new three -year secured credit facility (the “Exit Facility”). The Exit Facility is secured by mortgages on at least 90% of the value of our and our subsidiary guarantors proved reserves and proved developed producing reserves. The Exit Facility is comprised of two facilities: (i) a term loan facility (the “Exit Term Loan”) resulting from the conversion of the remaining drawn amount plus accrued default interest, fees and expenses under the Prepetition Revolving Credit Facility of approximately $74 million and (ii) a revolving credit facility (the “Exit Revolving Facility”) resulting from the conversion of the former EGC tranche of the Prepetition Revolving Credit Facility which provides, subject to the limitations noted below, for the making of revolving loans and the issuance of letters of credit. On the Emergence Date, the Company entered into a Warrant Agreement with Continental Stock Transfer & Trust Company, as Warrant Agent. On the Emergence Date, pursuant to the terms of the Plan, the Company issued 2,119,889 warrants to holders of the EGC Unsecured Notes Claims and holders of the EPL Unsecured Notes Claims. The warrants are exercisable from the date of the Warrant Agreement until December 30, 2021 (the “Expiration Date”). The warrants are initially exercisable for one share of the Company’s common stock per warrant (such rate, as adjusted pursuant to the Warrant Agreement, being the “Warrant Exercise Shares”) at an initial exercise price of $43.66 (the “Exercise Price”) . The Warrant Exercise Shares and Exercise Price are subject to customary anti-dilution adjustments. No adjustments to the applicable Exercise Price or Warrant Exercise Shares are required unless the cumulative adjustments required would result in an increase or decrease of at least 1.0% in the applicable Exercise Price or the Warrant Exercise Shares. Additionally, if an adjustment in Exercise Price would reduce the Exercise Price to an amount below par value of the common stock, then such adjustment in Exercise Price will reduce the Exercise Price to the par value of the common stock. The fair value of the w arrants was $3.80 per warrant . A Black- Scholes pricing model with the following assumptions was used in determining the fair value: The following table reconciles the enterprise value to the estimated reorganization value as of the Emergence Date ( in thousands ): December 31, 2016 Enterprise Value $ 793,747 Add: Cash and cash equivalents 165,368 Add: Other working capital liabilities 164,777 Add: Other long-term liabilities 14,481 Add: Asset retirement obligation 753,364 Reorganization value of Successor assets $ 1,891,737 Reorganization value and enterprise value were estimated using numerous projections and assumptions that are inherently subject to significant uncertainties and resolution of contingencies that are beyond our control. Accordingly, the estimates set forth herein are not necessarily indicative of actual outcomes, and there can be no assurance that the estimates, projections or assumptions will be realized. Consolidated Balance Sheet The adjustments set forth in the following consolidated balance sheet reflect the effect of the consummation of the transactions contemplated by the Plan (reflected in the column “Reorganization Adjustments”), fair value adjustments as a result of the adoption of fresh start accounting (reflected in the column “Fresh Start Adjustments”). On the Convenience Date, subsequent to the restructuring adjustments and fair value adjustments , we reco rd ed an impairment of our oil and natural gas properties of approximately $ 406.3 million, primarily due to pricing differences between the 12-month average oil and gas prices used in the ceiling test and the forward strip prices used to estimate the fresh start fair value of oil and gas properties of the Company (refle cted in the column “Impairment”). The explanatory notes highlight methods used to determine fair values or other amounts of the assets and liabilities as well as significant assumptions. The following table reflects the reorganization and application of ASC 852 and the Convenience Date ceiling test impairment on our consolidated balance sheet as of December 31, 2016 ( in thousands ): As of December 31, 2016 Predecessor Company Reorganization Adjustments Fresh-Start Adjustments Successor Company before Impairment Impairment Successor Company ASSETS Current Assets Cash and cash equivalents $ 164,817 $ 551 (1) $ - $ 165,368 $ - $ 165,368 Accounts receivable, net - - Oil and natural gas sales 68,143 - - 68,143 - 68,143 Joint interest billings 5,600 - - 5,600 - 5,600 Other 18,909 (965) (3) - 17,944 - 17,944 Prepaid expenses and other current assets 54,100 (26,260) (2) (1,883) (10) 25,957 - 25,957 Restricted cash 32,888 (551) (1) - 32,337 - 32,337 Total Current Assets 344,457 (27,225) (1,883) 315,349 - 315,349 Property and Equipment Oil and natural gas properties, net 500,114 - 1,003,640 (11) 1,503,754 (406,275) 1,097,479 Other property and equipment, net 15,049 - 3,758 (12) 18,807 - 18,807 Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment 515,163 - 1,007,398 1,522,561 (406,275) 1,116,286 Other Assets Restricted cash 25,583 - - 25,583 - 25,583 Other assets 30,174 - (1,930) (13) 28,244 - 28,244 Total Other Assets 55,757 - (1,930) 53,827 - 53,827 Total Assets $ 915,377 $ (27,225) $ 1,003,585 $ 1,891,737 $ (406,275) $ 1,485,462 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable $ 67,876 $ 33,241 (3) $ - $ 101,117 $ - $ 101,117 Accrued liabilities 48,500 15,160 (3) (4) - 63,660 - 63,660 Asset retirement obligations 58,537 - (1,936) (14) 56,601 - 56,601 Current maturities of long-term debt 74,046 (69,778) (5) - 4,268 - 4,268 Total Current Liabilities 248,959 (21,377) (1,936) 225,646 - 225,646 Long-term debt, less current maturities - 74,229 (5) - 74,229 - 74,229 Asset retirement obligations 509,187 - 187,576 (14) 696,763 - 696,763 Other liabilities 24,662 2,345 (3) (12,526) (15) 14,481 - 14,481 Total Liabilities Not Subject to Compromise 782,808 55,197 173,114 1,011,119 - 1,011,119 Liabilities subject to compromise 2,934,619 (2,934,619) (6) - - - - Total Liabilities 3,717,427 (2,879,422) 173,114 1,011,119 - 1,011,119 Stockholders’ Equity (Deficit) Preferred stock (Predecessor) 7.25% Convertible perpetual preferred stock (Predecessor) - - - - - - 5.625% Convertible perpetual preferred stock (Predecessor) - - - - - - Common stock (Predecessor) 504 (504) (7) - - - - Common stock (Successor) - 332 (8) - 332 - 332 Additional paid-in capital (Predecessor) 1,845,851 (1,845,851) (7) - - - - Additional paid-in capital (Successor) - 880,286 (8) - 880,286 - 880,286 Accumulated deficit (4,648,405) 3,817,934 (9) 830,471 (16) - (406,275) (406,275) Total Stockholders’ Equity (Deficit) (2,802,050) 2,852,197 830,471 880,618 (406,275) 474,343 Total Liabilities and Stockholders’ Equity (Deficit) $ 915,377 $ (27,225) $ 1,003,585 $ 1,891,737 $ (406,275) $ 1,485,462 Reorganization Adjustments (1) Reflects the reclassification of the utility deposit from restricted cash to cash and cash equivalents. (2) Represents cash payments made prior to the Convenience Date to the following parties in accordance with the Plan (i) approximately $11.2 million to the Plan support parties of the EGC Unsecured Noteholders for professional fees, (ii) approximately $9.6 million to the Plan support parties of the EPL Unsecured Noteholders for professional fees, (iii) approximately $2 million for EXXI Ltd’s 3.0% Senior Convertible Notes Trustee, and (iv) approximately $3.5 million for success fees paid to EXXI Ltd’s restructuring advisors. The amounts were recorded as prepaid expenses on the Emergence Date and subsequently reflected as effects of the Plan on the Convenience Date. (3) Represents reinstated claims that were reclassified from liabilities subject to compromise at Emergence Date and will be settled in cash. Of the approximate $3.4 million claims reinstated to accrued liabilities, approximately $1.0 million of the reinstated claim s w ere applied against other receivables in accordance with the right of offset approved by the Bankruptcy Court and the remaining approximately $2.4 million of reinstated claims were reclassified to accrued liabilities . (4) Represents success fee accrual of $11 million payable to restructuring advisors and a professional fee accrual of $1.7 million payable to the Plan support parties of EGC and EPL Unsecured Noteholders. (5) Represents the reclassification of the revolving credit facility and the reinstated claims related to 4.14% promissory note and capital lease obligations. (6) Liabilities subject to compromise were settled as noted below ( in thousands ): On December 31, 2016 Predecessor Debt 11.0% Senior Secured Second Lien Notes due 2020 $ 1,450,000 8.25% Senior Notes due 2018 213,677 6.875% Senior Notes due 2024 143,993 3.0% Senior Convertible Notes due 2018 363,018 7.5% Senior Notes due 2021 238,071 7.75% Senior Notes due 2019 101,077 9.25% Senior Notes due 2017 249,452 4.14% Promissory Note due 2017 4,001 Capital lease obligations 450 Total debt 2,763,739 Accounts payable 37,424 Accrued liabilities 133,456 Total liabilities subject to compromise 2,934,619 Fair value of equity and warrants issued per the Plan (880,618) Fair value of reinstated accounts payable and accrued liabilities to be settled in cash (43,509) Cash payment for 3.0% Senior Convertible Notes (2,000) Gain on settlement of liabilities subject to compromise $ 2,008,492 (7) Reflects the cancellation of EXXI Ltd’s equity. (8) Represents the issuance of Successor equity. The Successor Company issued a total of 33,211,594 shares of its common stock, of which 27,897,739 shares of common stock were issued to the Second Lien Holders, 3,985,391 shares of common stock was issued to the holders of EGC Unsecured Notes and 1,328,464 shares of common stock was issued to the EPL Unsecured Notes. The Successor equity is subject to dilution by exercise of 1,271,933 warrants issued to the holders of EGC Unsecured Noteholders and 847,956 warrants issued the EPL Unsecured Noteholder s for 2,119,889 shares of common stock with an initial exercise price of $43.66 . The fair value of the warrants was estimated at $8.1 million or $3. 80 per warrant, using the Black-Scholes Option pricing valuation model. (9) The cumulative impact of the reorganization adjustments is as below ( in thousands ): December 31, 2016 Gain on settlement of liabilities subject to compromise $ 2,008,492 Cancellation of EXXI Ltd equity 1,846,355 Accrual of success fee (12,653) Payments made of plan support parties (24,260) Net impact to accumulated deficit $ 3,817,934 Fresh Start Adjustments (10) Represents the write off of the unamortized deferred financing costs related to the Prepetition Credit Facility. (11) In estimating the fair value of its oil and natural gas properties, the Company used a combination of the income and market approaches. For purposes of estimating fair value of the Company's proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Company's reserves, risked by reserve category and discounted using a weighted average cost of capital of 11.1% . Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $60.37 per barrel of oil, $3.02 per MMBtu of natural gas and $25.36 per barrel of NGL, after adjusting for regional pricing differentials. The proved reserve locations were limited to wells expected to be drilled in the Company's five year development plan. Base pricing was derived from strip prices on the December 30, 2016 and subsequently increased at an inflation escalation factor of 2.0% after the fourth year. (12) In estimating the fair value of the other property and equipment, the Company primarily employed a combination of cost and market approaches. These assets were primarily evaluated using a replacement cost methodology and also obtaining market-based pricing indicators for certain assets which had active secondary markets. (13) Represents the removal of catering business goodwill and deferred lease expenses. (14) Represents the adjustment of asset retirement obligations to fair value using estimated plugging and abandonment costs as of December 31, 2016, adjusted for inflation using a rate of 2% and then discounted at the credit-adjusted risk free rate of 6.5% . The fair value of asset retirement obligation was estimated at $753.4 million. (15) Represents the removal of deferred rent liabilities. (16) Represents the cumulative effects of the fresh-start accounting adjustments. Reorganization Items Reorganization items represent liabilities settled, net of amounts incurred subsequent to the Chapter 11 filing as a direct result of the Plan and are classified as “Reorganization items” in the consolidated statements of operations. The following table summarizes reorganization items ( in thousands ): Predecessor Six Months Year Ended Ended December 31, June 30, 2016 2016 Gain on settlement of liabilities subject to compromise $ 2,008,492 $ - Fresh start adjustments 830,471 - Reorganization legal and professional fees and expenses (90,568) (14,201) Gain (loss) on reorganization items $ 2,748,395 $ (14,201) |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Dec. 31, 2016 | |
Acquisitions and Dispositions [Abstract] | |
Acquisitions and Dispositions | Note 5 – Acquisitions and Dispositions Acquisition of interest in M21K On August 11, 2015 , pursuant to a stock purchase agreement (the “M21K Purchase Agreement”) between Energy XXI M21K, LLC (“EXXI M21K”), in which EXXI Ltd owned 20% interest, and Energy XXI GOM, LLC, an indirect wholly owned subsidiary of EXXI Ltd, we acquired all of the remaining equity interests of M21K, LLC (“M21K”) for consideration consisting of the assumption of all obligations and liabilities of M21K including approximately $25.2 million associated with M21K’s first lien credit facility, which was required to be paid at closing (the “M21K Acquisition”). The sellers retained certain overriding royalty interests applicable only to the extent that production proceeds during any calendar month average in excess of $65.00/Bbl WTI and $3.50/MMbtu Henry Hub and limited to a term of four years or an aggregate amount of $20 million, whichever occurs earlier. In addition, with respect to the Eugene Island 330 and South Marsh Island 128 fields, in the event we sell our interest in one or both of these fields, the overriding royalty interests with respect to such sold field shall terminate; provided, however if such sale occurs within four years of the effective date of the M21K Purchase Agreement and the consideration received for such sale is greater than the allocated value for such field as specified in the M21K Purchase Agreement, then we are obligated to pay an amount equal to 20% of the portion of the consideration received in excess of the specified allocated value of such field. Prior to this transaction which was effective as of August 1, 2015 , we had owned a 20% interest in M21K through our investment in EXXI M21K. See Note 8 – Equity Method Investments. The following table presents the final purchase price allocation to the assets acquired and liabilities assumed, based on their estimated fair values on August 11, 2015 ( in thousands ): Oil and natural gas properties – evaluated $ 73,910 Oil and natural gas properties – unevaluated 39,278 Asset retirement obligations (66,700) Net working capital * (21,301) Fair value of debt assumed (25,187) Cash paid $ - * Net working capital includes approximately $1.0 million in cash . EPL Acquisition We acquired EPL on June 3, 2014 (the “EPL Acquisition”) . The acquisition was accounted for under the acquisition method, with EXXI Ltd as the acquirer. EPL became a wholly owned subsidiary o f EGC . In connection with the EPL acquisition, each EPL stockholder had the right to elect to receive, for each share of EPL common stock held by that stockholder, $39.00 in cash ( “ Cash Election ” ) or 1.669 shares of EXXI Ltd common stock ( “ Stock Election ” ) or a combination of $25.35 in cash and 0.584 of a share of EXXI Ltd common stock ( “ Mixed Election ” and together with the Cash Election and the Stock Election, the “ Merger Consideration ”) , subject to proration with respect to the Stock Election and the Cash Election so that approximately 65% of the aggregate Merger Consideration was paid in cash and approximately 35% was paid in EXXI Ltd common stock. Accordingly, EPL stockholder s making a timely Cash Election received $25.92 in cash and 0.5595 of a share of EXXI Ltd common stock for each EPL common share. Under the merger agreement, EPL stockholders who did not make an election prior to the May 30 , 2014 deadline were treated as having made a Mixed Election. In addition to the outstanding EPL shares, each outstanding stock option to purchase shares of EPL common stock was deemed exercised pursuant to a cashless exercise and was converted into the right to receive the cash portion of the Merger Consideration pursuant to the Cash Election, without being subject to proration. As a result, in accordance with the m erger a greement, 836,311 net exercise shares were converted in to $39.00 per share in cash, without proration. Based on the final results of the Merger Consideration elections and as s et forth in the merger agreement, we issued 23.3 million shares of EXXI Ltd common stock and paid approximately $1,012 million in cash. The following table summarizes the total purchase price of approximately $1,504.3 million, including cash acquired of $206.1 million ( in millions, except per share amounts): Election EPL Shares Cash per share EXXI Ltd Stock Cash Paid EXXI Ltd Stock Issued EXXI Ltd Stock Price on June 3, 2014 Cash Value of EXXI Ltd Stock Issued Total Purchase Price Cash Election 30.6 $ 25.92 0.5595 $ 792.6 17.1083 $ 21.11 $ 361.2 $ 1,153.8 Mixed Election* 7.4 25.35 0.5840 186.8 4.3037 21.11 90.8 277.6 Stock Election 1.1 - 1.6690 - 1.9090 21.11 40.3 40.3 Stock Options 0.8 39.00 - 32.6 - - 32.6 Total 39.9 $ 1,012.0 23.3210 $ 492.3 $ 1,504.3 (*) Includes 4.7 million EPL shares that were held by EPL stockholders that did not make an election prior to the May 30, 2014 election deadline. The following table summarizes the final purchase price allocation for EPL as of June 3, 2014 ( in thousands ): EPL Historical Fair Value Adjustment Total (Unaudited) Current assets (excluding deferred income taxes) $ 301,592 $ 1,274 $ 302,866 Oil and natural gas properties a Evaluated (Including net ARO assets) 1,919,699 112,624 2,032,323 Unevaluated 41,896 859,886 901,782 Other property and equipment 7,787 - 7,787 Other assets 16,227 (9,002) 7,225 Current liabilities (excluding ARO) (314,649) (2,058) (316,707) ARO (current and long-term) (260,161) (13,211) (273,372) Debt (current and long-term) (973,440) (52,967) (1,026,407) Deferred income taxes b (118,359) (340,645) (459,004) Other long-term liabilities (2,242) 797 (1,445) Total fair value, excluding goodwill 618,350 556,698 1,175,048 Goodwill c,d - 329,293 329,293 Less cash acquired - - 206,075 Total purchase price $ 618,350 $ 885,991 $ 1,298,266 a. EPL oil and gas properties were accounted for under the successful efforts method of accounting prior to the merger. After the merger, we are accounting for these oil and gas properties under the full cost method of accounting, which is consistent with our accounting policy. b. Deferred income taxes have been recognized based on the estimated fair value adjustments to net assets using a 37% tax rate, which reflected the 35 % federal statutory rate and a 2 % weighted average of the applicable statutory state tax rates (net of federal benefit). c. See Note 6 – “Goodwill” for more information regarding goodwill impairment at December 31, 2014. d. On April 2, 2013, EPL sold certain shallow water GoM Shelf oil and natural gas interests located within the non-operated Bay Marchand field to Chevron U.S.A. Inc. (“Chevron”) with an effective date of January 1, 2013. In September 2014, we were informed by Chevron that the final settlement statement did not reflect a portion of the related production in the months of January 2013 and February 2013 totaling approximately $2.1 million. After review of relevant supporting documents, we agreed to reimburse Chevron approximately $2.1 million. This resulted in an increase in liabilities assumed in the EPL Acquisition and a corresponding increase in goodwill of approximately $2.1 million. In accordance with the acquisition method of accounting, we allocated the purchase price from our acquisition of EPL to the assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The fair value estimates were based on, but not limited to quoted market prices, where available; expected future cash flows based on estimated reserve quantities; costs to produce and develop reserves; current replacement cost for similar capacity for certain fixed assets; market rate assumptions for contractual obligations; appropriate discount rates and growth rates, and crude oil and natural gas forward prices. The excess of the total consideration over the estimated fair value of the amounts initially assigned to the identifiable assets acquired and liabilities assumed was recorded as goodwill. Goodwill recorded in connection with the EPL Acquisition wa s not deductible for income tax purposes. The fair value estimates of the oil and natural gas properties, and the asset retirement obligations were based, in part, on significant inputs not observable in the mark et and thus represent Level 3 measurement s . The fair value estimate of long-term debt was based on prices obtained from a readily available pricing source and thus represents a Level 2 measurement. The EPL Acquisition resulted in goodwill primarily because the combined company resulted in a significantly increased enterprise value and this increased scale provided us with opportunities to increase our equity market liquidity, lower insurance costs, achieve operating efficiencies by utilizing EPL’s existing infrastructure and lower costs through optimization of offshore transport vehicles and consolidation of shore bases, lowering general and administrative expenditures by consolidating corporate support functions and utilizing complementary strengths and expertise of the technical staff of the two companies to timely identify and drill prospects. We can utilize the latest drilling and seismic acquisition technologies, namely dump-floods, horizontal drilling, WAZ and Full Azimuth Nodal (“FAN”) seismic technologies licensed by EPL, which enhance production and assist in identifying deep-seated structures in the shallow waters over a significantly broader asset portfolio concentrated in the GoM Shelf. In addition, goodwill also resulted from the requirement to recognize deferred taxes on the difference between the fair value and the tax basis of the acquired assets. During the quarter ended December 31, 2014, we recorded a goodwill impairment charge of $329.3 million to reduce the carrying value of goodwill to zero at December 31, 2014. See Note 6 – “ Goodwill ” for more information regarding the impairment of goodwill at December 31, 2014. In the year ended June 30, 2014, costs associated with the EPL Acquisition totaled approximately $13.6 million and were expensed as incurred. For the years ended June 30, 2016 and 2015, our consolidated statement of operations includes EPL’s operating revenues of $ 255.8 million and $542.8 million, respectively, and net loss of $1,060.2 million and $1,298.7 million, respectively. The following supplemental unaudited pro forma consolidated financial information has been prepared to reflect the EPL Acquisition as if the merger had occurred on July 1, 2012. The supplemental unaudited pro forma financial information is based on the historical consolidated statements of operations of EXXI Ltd and EPL for the year ended June 30, 2014 ( in thousands , except per share amounts ). Year Ended June 30, 2014 Revenues $ 1,783,062 Net loss (45,233) Net loss available to EXXI Ltd common stockholders (56,722) Net loss per share available to EXXI Ltd common stockholders: Basic $ (0.76) Diluted $ (0.76) The above supplemental unaudited pro forma consolidated financial information has been prepared for illustrative purposes only and is not intended to be indicative of the results of operations that actually would have occurred had the acquisition occurred on July 1, 2012, nor is such information indicative of any expected results of operations in future periods. The most significant pro forma adjustments to income from continuing operations for the year ended June 30, 2014 were the following: a. Exclude expense of $45.2 million of EPL’s exploration costs and impairment expense and $1.8 million of gain on sales of assets accounted for under the successful efforts method of accounting to correspond with EXXI’s full cost method of accounting. b. Increase DD&A expense by $ 65.3 million for the EPL Properties to correspond with EXXI’s full cost method of accounting as well as the adjustments to fair value of the acquired assets. c. Increase interest expense by $50.0 million to reflect interest on the $650 million 6.875% unsecured senior notes due 2024 and on additional borrowings under EXXI’s Revolving Credit Facility. Decrease interest expense $12.3 million to reflect non-cash premium amortization due to the adjustment to fair value associated with the $510 million 8.25% senior notes due 2018 assumed in the EPL Acquisition. We have accounted for our acquisitions using the acquisition method of accounting, and therefore, we have estimated the fair value of the assets acquired and liabilities assumed as of their respective acquisition dates. In the estimation of fair values of evaluated and unevaluated oil and natural gas properties and asset retirement obligations for the above acquisitions, management used valuation techniques that convert future cash flows to single discounted amounts. Inputs to the valuation of oil and natural gas properties include estimates of: (i) oil and natural gas reserves; (ii) future operating and development costs; (iii) future oil and natural gas prices; and (iv) a discount factor used to calculate the discounted cash flow amount. Inputs into the valuation of the asset retirement obligations include estimates of: (i) plugging and abandonment costs per well and related facilities; (ii) remaining life per well and facilities; (iii) an inflation factor; and (iv) a credit adjusted risk-free interest rate. Fair value is based on subjective estimates and assumptions, which are inherently subject to significant uncertainties which are beyond our control. Sale of the Grand Isle Gathering System On June 30, 2015, we sold certain real and personal property constituting a subsea pipeline gathering system located in the shallow GoM shelf and storage and onshore processing facilities on Grand Isle, Louisiana (the “GIGS”) to Grand Isle Corridor, LP (“Grand Isle Corridor”), a wholly-owned subsidiary of CorEnergy Infrastructure Trust, Inc. for cash consideration of $245 million, plus the assumption by Grand Isle Corridor of the asset retirement obligations associated with the estimated decommissioning costs for the GIGS. The proceeds were recorded as a reduction to our oil and natural gas properties with no gain or loss recognized. The net reduction to the full cost pool related to this sale was $248.9 million. Also on June 30, 2015, we entered into a triple-net lease agreement with Grand Isle Corridor pursuant to which we will continue to use and operate the GIGS as further discussed in Note 17 – “Commitments and Contingencies.” Sale of interests in the East Bay field On June 30, 2015, we sold our interest in the East Bay field to Whitney Oil & Gas, LLC and Trimont Energy (NOW), LLC, for cash consideration of $21 million plus the assumption of asset retirement obligations estimated at $55.1 million. The cash consideration was payable in two installments with $5 million received at closing and the remainder in fiscal year 2016. We retain ed a 5% overriding royalty interest (applicable only during calendar months if and when the WTI for such month averages over $65) on these assets for a period not to exceed 5 years from the closing date or $7 million whichever occurs first , and we also retained 50% of the deep rights associated with the East Bay f ield. Revenues and expenses related to the field were included in our results of operations through June 30, 2015. The proceeds were recorded as a reduction to our oil and natural gas properties with no gain or loss recognized. The net reduction to the full cost pool related to this sale was $68.9 million. Su bsequent to June 30, 2015, post- closing adjustments reduced the total cash consideration to $20.3 million and the maximum receivable under the overriding royalty interest to $6.4 million. The final settlement occurred in January 2017. |
Goodwill
Goodwill | 6 Months Ended |
Dec. 31, 2016 | |
Goodwill [Abstract] | |
Goodwill | Note 6 - Goodwill ASC 350, Intangibles—Goodwill and Other , requires that intangible assets with indefinite lives, including goodwill, be evaluated for impairment on an annual basis or more frequently if events occur or circumstances change that could potentially result in impairment. Our annual goodwill impairment test is performed at least annually during the third quarter. Impairment testing for goodwill is done at the reporting unit level. We have only one reporting unit, which includes all of our oil and natural gas properties. Accordingly, all of our goodwill, as well as all of our other assets and liabilities, are included in our single reporting unit. At December 31, 2014, we conducted a qualitative goodwill impairment assessment by examining relevant events and circumstances that could have a negative impact on our goodwill, such as macroeconomic conditions, industry and market conditions, cost factors that have a negative effect on earnings and cash flows, overall financial performance, dispositions and acquisitions, and any other relevant events or circumstances. After assessing the relevant events and circumstances for the qualitative impairment assessment, we determined that performing a quantitative goodwill impairment test was necessary. In the first step of the goodwill impairment test, we determined that the fair value of our reporting unit was less than its carrying amount, including goodwill, primarily due to price deterioration in forward pricing curves for oil and natural gas and an increase in our weighted average cost of capital, both factors which adversely impacted the fair value of our estimated reserves. Therefore, we performed the second step of the goodwill impairment test, which led us to conclude that there would be no remaining implied fair value attributable to goodwill. As a result, we recorded a goodwill impairment charge of $329.3 million to reduce the carrying value of goodwill to zero at December 31, 2014. In light of the form of the acquisition of EPL (a purchase of stock), this goodwill had no tax basis when recognized, which resulted in no income tax benefit when impaired. In estimating the fair value of our reporting unit and our estimated reserves, we used an income approach which estimated fair value primarily based on the anticipated cash flows associated with our estimated reserves, discounted using an assumed weighted average cost of capital based on market participant data. The estimation of the fair value of our reporting unit and our estimated reserves includes the use of significant inputs not observable in the market, such as estimates of reserves quantities, the weighted average cost of capital (discount rate), future pricing and future capital and operating costs. The use of these unobservable inputs results in the fair value estimate being classified as a Level 3 measurement. Although we believe the assumptions and estimates used in the fair value calculation of our reporting unit were reasonable and appropriate, different assumptions and estimates could materially impact the analysis and resulting conclusions. At June 30, 2016, included in other assets and debt issuance costs, net of accumulated amortization, on our consolidated balance sheets was $0.8 million of goodwill associated with the acquisition of a catering business on August 21, 2015. On the Convenience Date, there was no goodwill after recording the effect of the consummation of the transactions contemplated by the Plan. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 7 – Property and Equipment Property and equipment consists of the following ( in thousands ): Successor Predecessor December 31, June 30, June 30, 2016 2016 2015 Oil and gas properties Proved properties $ 1,127,616 $ 9,817,456 $ 9,243,737 Less: accumulated depreciation, depletion, amortization and impairment (406,275) (9,256,513) (6,109,335) Proved properties, net 721,341 560,943 3,134,402 Unevaluated properties 376,138 42,212 436,357 Oil and gas properties, net 1,097,479 603,155 3,570,759 Other property and equipment 18,807 44,272 45,941 Less: accumulated depreciation - (26,662) (24,121) Other property and equipment, net 18,807 17,610 21,820 Total property and equipment, net of accumulated depreciation, depletion, amortization and impairment $ 1,116,286 $ 620,765 $ 3,592,579 See Note 4 – “Fresh Start Accounting” for the methodology and assumptions used in arriving at fair value fresh start adjustments on the Convenience Date. Following emergence from bankruptcy and in accordance with fresh start accounting, the Company, based on the renewed ability to fund development drilling, recorded proved undeveloped reserves of 36.5 MMBOE at December 31, 2016. Future development costs associated with our proved undeveloped reserves at December 31, 2016 totaled approximately $443.2 million. As scheduled in our long range plan, substantially all of our proved undeveloped locations are expected to be developed within five years from the time they are first recognized as proved undeveloped locations in our reserve report . C osts associated with unevaluated properties are transferred to evaluated properties upon the earlier of (i ) a determination as to whether there are any proved reserves related to the properties or the costs are impaired , (ii) a determination that the capital costs associated with the development of these properties will not be available, or (iii) ratably over a period of time of not more than four years. Under the full cost method of accounting at the end of each financial reporting period, we compare the present value of estimated future net cash flows from proved reserves (computed using the unweighted arithmetic average of the first-day-of-the-month historical price, net of applicable differentials, for each month within the previous 12-month period discounted at 10% , plus the lower of cost or fair market value of unproved properties and excluding cash flows related to estimated abandonment costs associated with developed properties) to the net capitalized costs of oil and natural gas properties, net of related deferred income taxes. We refer to this comparison as a “ceiling test.” If the net capitalized costs of these oil and natural gas properties exceed the estimated discounted future net cash flows, we are required to write-down the value of our oil and natural gas properties to the amount of the discounted cash flows. On December 31, 2016, the Company , subsequent to its emergence from bankruptcy, recorded an impairment of its oil and natural gas properties of approximately $406.3 million due to the differences between the fair value of oil and natural gas properties recorded as part of fresh start accounting and the limitation of capital ized costs prescribed under R egulation S-X Rule 4-10. The most significant difference relate s to the use of forward looking oil and natural gas prices in the determination of fair value as opposed to the use of historical first day of the month 12-month average oil and natural gas prices used in the calculation of limitation on capital ized costs. Reserve adjustment factors as well as the weighted average cost of capital also impact ed the determination of the fair value of oil and natural gas properties recorded in fresh start accounting. If the current low commodity price environment or downward trend in oil and natural gas prices continues, we may incur further impairment to our full cost pool in fiscal 2017 based on the average oil and natural gas price calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the previous 12-month period under the SEC pricing methodology. For the six month transition period ended December 31, 2016, EXXI Ltd’s ceiling test computation resulted in an impairment of its oil and natural gas properties of $ 86.8 million and for the years ended June 30, 2016 and 2015, the impairments totaled $2,813.6 million and $ 2,421.9 million, respectively. Due to the depressed commodity prices and EXXI Ltd’s lack of capital resources to develop its properties, all of its proved undeveloped oil and gas reserves no longer qualified as being proved as of December 31, 2015. As a result, EXXI Ltd removed all of its proved undeveloped oil and gas reserves from the proved category as of December 31, 2015. Almost all of the proved undeveloped reserves that were removed from the proved category on December 31, 2015 were still economic at prices and costs applicable to SEC reserve reports at such date , b ut were reclassified to the contingent resource category because they we re no longer expected to be drilled within five years of initial booking due to then current constraints on EXXI Ltd’s abilit y to fund development drilling. In addition, as of December 31, 2015, we had identified certain of our unevaluated properties totaling to $336.5 million as being uneconomical and transferred such amounts to the full cost pool, subject to amortization. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments [Abstract] | |
Equity Method Investments | Note 8 - Equity Method Investments Prior to the M21K Acquisition on August 11, 2015 discussed previously in Note 4 – “Acquisitions and Dispositions,” we owned a 20% interest in EXXI M21K which was engaged in the acquisition, exploration, development and operation of oil and natural gas properties offshore in the Gulf of Mexico, through its wholly owned subsidiary, M21K. EGC received a management fee from M21K for providing administrative assistance in carrying out its operations. We also provided a guarantee related to the payment of asset retirement obligations and other liabilities of M21K. EXXI M21K was a guarantor of a $100 million first lien credit facility agreement entered into by M21K, which had a $40 million borrowing base and under which $28.0 million in loans and $1.2 million in letters of credit were outstanding as of June 30, 2015. At June 30, 2015, M21K was in default due to a breach of certain covenants under this agreement. On August 11, 2015, we acquired all of the equity interests of M21K and repaid the outstanding balance under the M21K credit facility. See Note 1 5 – “Related Party Transactions.” We recorded an equity loss of $10.7 million, $17.4 million and $4.3 million for the years ended June 30, 2016, 2015 and 2014, respectively. The equity loss for the year ended June 30, 2015 includes an other-than-temporary impairment related to our investment in EXXI M21K of $11.8 million. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 9 – Long-Term Debt Long-term debt consists of the following ( in thousands ): Successor Predecessor December 31, June 30, 2016 2016 2015 Prepetition Revolving Credit Facility (2) $ - $ 99,836 $ 150,000 Exit Facility 73,996 - - 11.0% Senior Secured Second Lien Notes due 2020 (2) - 1,450,000 1,450,000 8.25% Senior Notes due 2018 (2) - 213,677 510,000 6.875% Senior Notes due 2024 (2) - 143,993 650,000 3.0% Senior Convertible Notes due 2018 (2) - 363,018 400,000 7.5% Senior Notes due 2021 (2) - 238,071 500,000 7.75% Senior Notes due 2019 (2) - 101,077 250,000 9.25% Senior Notes due 2017 (2) - 249,452 750,000 4.14% Promissory Note due 2017 4,001 4,006 4,343 Debt premium, 8.25% Senior Notes due 2018 (1) - - 29,459 Original issue discount, 11.0% Notes due 2020 - - (51,104) Original issue discount, 3.0% Senior Convertible Notes due 2018 - - (45,782) Derivative instruments premium financing - - 10,647 Capital lease obligations 500 714 869 Total debt 78,497 2,863,844 4,608,432 Less: current maturities 4,268 99,836 11,395 Less: liabilities subject to compromise (see Note 3) - 2,764,008 - Total long-term debt $ 74,229 $ - $ 4,597,037 _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ (1) Represents unamortized premium on the 8.25% Senior Notes due 2018 assumed in the EPL Acquisition. (2) In accordance with the Plan, on the Emergence Date, all outstanding obligations under these notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled . Maturities of long-term debt as of December 31, 2016 are as follows (in thousands ) Twelve Months Ending December 31, 2017 $ 4,268 2018 233 2019 73,996 2020 - 2021 - Thereafter - $ 78,497 During the year ended June 30, 2016, our Predecessor repurchased certain of its unsecured notes in aggregate principal amounts as follows: $ 506.0 million of 6.875% Senior Notes due 2024 (the “6.875% Senior Notes”), $2 61.9 million of 7.5% Senior Notes due 2021(the “7.5% Senior Notes”), $1 48.9 million of 7.75% Senior Notes due 2019(the “7.75% Senior Notes”), $2 96.3 million of 8.25% Senior Notes due 2018 (the “8.25% Senior Notes”) and $ 500.6 million of 9.25% Senior Notes due 2017 (the “9.25% Senior Notes”). Our Predecessor repurchased these notes in open market transactions at a total cost of approximately $ 215.9 million, (excluding accrued interest), and we recorded a gain on the repurchases totaling approximately $ 1,492.4 million, net of associated debt issuance costs and certain other expenses. All of the notes repurchased in February 2016, except for the 8.25% Senior Notes with face value of $266.6 million and 9.25% Senior Notes with face value of $471.1 million which both continue to be held by EGC were cancelled at June 30, 2016 and the remaining EGC and EPL senior notes held by EGC were cancelled on December 19, 2016. In addition, in March 2016 certain bondholders holding $37 million in face value of Predecessor’s 3.0% Senior Convertible Notes requested a conversion of their notes into common stock. Upon conversion, we recorded a gain of approximately $33.2 million after proportionate adjustment to the related debt issue costs, accrued interest and original debt issue discount. As a result of the covenant violations that existed at March 31, 2016 that were not cured prior to the filing of the Bankruptcy Petitions, EGC’s pre-petition secured indebtedness under the Prepetition Revolving Credit Facility and Second Lien Notes, Energy XXI Ltd’ s pre-petition unsecured indebtedness under the 3.0% Senior Convertible Notes, EGC’s pre-petition unsecured indebtedness under the 6.875% Senior Notes, the 7.5% Senior Notes, the 7.75% Senior Notes and the 9.25% Senior Notes and EPL’s pre-petition unsecured indebtedness under the 8.25% Senior Notes became immediately due and payable and any efforts to enforce such payment obligations were automatically stayed as a result of Chapter 11 . Accordingly, all of EXXI Ltd’s outstanding indebtedness was classified as current in the consolidated balance sheet and it accelerated the amortization of the associated debt premium and original issue discount, fully amortizing those amounts as of March 31, 2016. In addition, except for amounts related to the Prepetition Revolving Credit Facility, EXXI Ltd accelerated the amortization of the remaining debt issuance costs related to its outstanding indebtedness, fully amortizing those costs as of March 31, 2016. EXXI Ltd continued to accrue interest on the Prepetition Revolving Credit Facility subsequent to the Petition Date until the Convenience Date. However, for all of its other indebtedness, in accordance with ASC 852, Reorganizations , it accrued interest only up to the Petition Date. Contractual interest on liabilities subject to compromise not reflected in the Predecessor consolidated statements of operations was approximately $176.5 million, representing interest expense from the Petition Date through the Emergence Date, of which $123.7 pertained to the six month transition period ended December 31, 2016 . Exit Facility Pursuant to the Plan, on the E mergence Date, the Company , as Borrower, and the other Reorganized Debtors entered into a new three year secured Exit Facility. The Exit Facility is secured by mortgages on at least 90% of the value of our and our subsidiary guarantors proved reserves and proved developed producing reserves. The Exit Facility is comprised of two facilities: (i) the Exit Term Loan resulting from the conversion of the remaining drawn amount plus accrued default interest, fees and expenses under the Debtors’ Prepetition Revolving Credit Facility of approximately $74 million and (ii) Exit Revolving Facility resulting from the conversion of the former EGC tranche of the Prepetition Revolving Credit Facility which provides, subject to the limitations noted below, for the making of revolving loans and the issuance of letters of credit. The Exit Term Loan has a maturity of three years. Interest on the outstanding amount of the Exit Term Loan will accrue at an interest rate equal to either: (i) the Alternative Base Rate (as defined in the Exit Facility) plus 3.5% per annum or (ii) the one-month LIBO Rate (as defined in the Exit Facility) plus 4.5% per annum. Interest on the Exit Term Loan bearing interest at the Alternative Base Rate will be payable quarterly; interest on the Exit Term Loan bearing interest at the LIBO Rate will be payable monthly. On the E mergence Date, the aggregate commitments under the Exit Revolving Facility were approximately $227.8 million all of which will be utilized to maintain in effect outstanding le tters of credit, including $225 million of letters of credit issued in favor of ExxonMobil to secure certain plugging and abandonment obligations related to assets in the Gulf of Mexico . On April 26, 2016, pursuant to the redetermination of our plugging and abandonment liabilities with ExxonMobil, it was agreed that subsequent to the Predecessor Company’s emergence from the Chapter 11 proceedings, the letters of credit issued in favor ExxonMobil would be reduced to $200 million from the existing amount of $225 million and currently documents are being formalized to effect such reduction. Each existing letter of credit may be renewed or replaced (in each case, in an outstanding amount not to exceed the outstanding amount of the existing letter of credit). Following the E mergence Date, the commitments under the Exit Revolving Facility will be reduced by fifty percent of the amount of the aggregate reduction of $25 million of all letters of credit outstanding in favor of ExxonMobil. The remaining fifty percent or $12.5 million of such aggregate reduction will be available for borrowing as revolving loans subject to a maximum for all such loans of (i) $25 million prior to the date the borrowing base is initially determined and (ii) the borrowing base, on and after the date the borrowing base is initially determined. The borrowing base will be initially determined after June 30, 2017, and is redetermined semi-annually thereafter. The Company must make a mandatory prepayment of the revolving loans and, if necessary, cash collateralize the outstanding letters of credit if a reduction in revolving commitments would cause the revolving credit exposure to exceed the revolving credit commitments. On or after the determination of the borrowing base, the Company must also make a mandatory prepayment of the revolving loans and, if necessary, cash collateralize the outstanding letters of credit not in favor of ExxonMobil if a borrowing base deficiency arises. For each fiscal quarter ending on and after March 31, 2018, if the Asset Coverage Ratio (as defined in the Exit Facility) is less than 1.50 to 1.00, the Company must make a mandatory prepayment of the Exit Term Loan equal to the lesser of (i) 7.5% of the aggregate outstanding principal amount of the Exit Term Loan on the Emergence Date or (ii) the then outstanding principal amount of the Exit Term Loan. The Exit Revolving Facility has a maturity of three years. Interest on the outstanding amount of revolving loans borrowed under the Exit Revolving Facility will accrue at an interest rate equal to either (i) the Alternative Base Rate plus 3.5% per annum or (ii) the one, three or six month LIBO Rate plus 4.5% per annum. Interest on revolving loans that bear interest at the Alternative Base Rate will be payable quarterly; interest on revolving loans that bear interest at the LIBO Rate will be payable at the end of each interest period or, if an interest period exceeds three months, at the end of every three months. The stated amount of each letter of credit issued under the Exit Revolving Facility accrues fees at the rate of 4.5% per annum. There is an issuance fee of 0.25% per annum charged on the stated amount of each lett er of credit issued after the Emergence Date. Unused commitments under the Exit Revolving Facility will accrue a commitment fee of 0.50% payable quarterly in arrears. The Exit Facility is guaranteed by substantially all of the wholly owned subsidiaries of the Company , subject to customary exceptions, and is secured by first priority security interests on substantially all assets of each Reorganized Debtor guarantor. Under the Exit Facility, the borrower will not declare or make a restricted payment, or make any deposit for any restricted payment. Restricted payments include declaration or payment of dividends. The Exit Facility contains covenants and events of default customary for reserve-based lending facilities. In addition, for each fiscal quarter ending on and after March 31, 2018, the Company must maintain a Current Ratio (as defined in the Exit Facility) of no less than 1.00 to 1.00 and a First Lien Leverage Ratio (as defined in the Exit Facility) of no greater than 4.00 to 1.00 calculated on a trailing four quarter basis. As of the E mergence Date , the Company met the requirement under the Exit Facility to have liquidity of at least $90 million. The Reorganized Debtors may use the proceeds of the Exit Facility for any permitted purpose, including satisfaction of ongoing working capital needs. As of December 31, 2016, we had approximately $74 million in borrowings and $227.8 million in letters of credit issued under the Exit Facility. Prepetition Revolving Credit Facility The Prepetition Revolving Credit Facility was entered into by EGC in May 2011. The Prepetition Revolving Credit Facility had a maximum facility amount and borrowing base of $327.2 million, of which such amount $99.4 million was the borrowing base under the sub-facility established for EPL prior to the Chapter 11 Cases. Borrowings under the Prepetition Revolving Credit Facility were limited to a borrowing base based on oil and natural gas reserve values. The scheduled date of maturity of the Prepetition Credit Agreement was April 9, 2018 . As a result of the filing of the Bankruptcy Petitions, the highest of the margins applied and default interest was accruing under the facility through an additional 2.00% payment of interest in kind (“PIK”) interest. PIK interest totaling $4.7 million was accrued from the Petition Date through December 31, 2016 . Following the modification to the cash collateral order, which was approved by the Bankruptcy Court on October 24, 2016, approximately $30.1 million of restricted cash maintained by EGC related to our Prepetition Credit Agreement was withdrawn on October 25, 2016 and applied to permanently reduce the amount outstanding under its Prepetition Credit Agreement to $69.3 million, thereby resulting in a further reduction to the maximum facility amount and borrowing base to $297.1 million. On the Emergence Date, by operation of the Plan, all outstanding obligations under the Prepetition Revolving Credit Facility and the related collateral agreements were cancelled and the credit agreements governing such obligations were cancelled. 11.0% Senior Secured Second Lien Notes Due 2020 On March 12, 2015, EGC issued $1,450 million in aggregate principal amount of 11.0% senior secured second lien notes due March 15, 2020 pursuant to the Purchase Agreement (the “Purchase Agreement”) by and among EGC, Energy XXI Ltd, Energy XXI USA, Inc. (“EXXI USA”) and certain of EGC’s wholly owned subsidiaries (together with Energy XXI Ltd and EXXI USA, the “Guarantors”), and Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Wells Fargo Securities, LLC and Imperial Capital, LLC, as representatives of the initial purchasers named therein (the “Initial Purchasers”) . EGC received net proceeds of approximately $1,355 million in the offering after deducting the Initial Purchasers’ discount and direct offering costs. The Second Lien Notes were sold to investors at a price of 96.313% of principal, for a yield to maturity at issuance of 12.0% . The Second Lien Notes were offered and sold in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) and were resold to qualified institutional buyers in reliance on Rule 144A of the Securities Act. T he Second Lien Notes and the related guarantees were not registered under the Securities Act or the securities laws of any other jurisdiction. The Second Lien Notes bore interest from the date of their issuance at an annual rate of 11.0% with interest due semi-annually, in arrears, on March 15 th and September 15 th , beginning September 15, 2015. EGC incurred underwriting and direct offering costs of $41.7 million which were recorded as debt issuance costs. The Second Lien Notes were issued pursuant to an indenture, dated March 12, 2015 (the “2015 Indenture”) , among EGC, the Guarantors and U.S. Bank National Association, as trustee. The Second Lien Notes were secured by second-priority liens on substantially all of EGC and its subsidiary guarantors’ assets and all of EXXI USA’s equity interests in EGC, in each case to the extent such assets secured the Prepetition Revolving Credit Facility. The liens securing the Second Lien Notes and the related guarantees were contractually subordinated to the liens on such assets securing our Prepetition Revolving Credit Facility and any other priority lien debt, to the extent of the value of the collateral securing such obligations, pursuant to the terms of an intercreditor agreement, and to certain other secured indebtedness, to the extent of the value of the assets subject to the liens securing such indebtedness. The Second Lien Notes were fully and unconditionally guaranteed on a senior basis by the Guarantors. The 2015 Indenture restricted EGC’s ability and the ability of its restricted subsidiaries to: (i) transfer or sell assets; (ii) make loans or investments; (iii) pay dividends, redeem subordinated indebtedness or make other restricted payments; (iv) incur or guarantee additional indebtedness or issue disqualified capital stock; (v) create or incur certain liens; (vi) incur dividend or other payment restrictions affecting certain subsidiaries; (vii) consummate a merger, consolidation or sale of all or substantially all of EGC’s assets; (viii) enter into transactions with affiliates; and (ix) engage in business other than the oil and gas business. These covenants were subject to a number of important exceptions and qualifications. In accordance with the Plan, on the Emergence Date, all outstanding obligations under the Second Lien Notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. 8.25% Senior Notes Due 2018 On June 3, 2014, EGC assumed the 8.25% Senior Notes in the EPL A cquisition which consist ed of $510 million in aggregate principal amount issued under an indenture dated as of February 14, 2011 ( the “ 2011 Indenture ”) . The 8.25% Senior Notes were fully and unconditionally guaranteed, jointly and severally, on an unsecured senior basis initially by each of EPL’s existing direct and indirect domestic subsidiaries. The 8.25% Senior Notes were to mature on February 15, 2018 . On April 18, 2014, EPL entered into a supplemental indenture (the “Supplemental Indenture”) to the 2011 Indenture, by and among EPL, the guarantors party thereto, and U.S. Bank National Association, as trustee, governing EPL’s 8.25% Senior Notes. The Supplemental Indenture amended the terms of the 2011 Indenture governing the 8.25% Senior Notes to waive EPL’s obligation to make and consummate an offer to repurchase the 8.25% Senior Notes at 101% of the principal amount thereof plus accrued and unpaid interest. EPL entered into the Supplemental Indenture after the receipt of the requisite consents from the holders of the 8.25% Senior Notes in accordance with the Supplemental Indenture. We paid an aggregate cash payment of $1.2 million (equal to $2.50 per $1,000 principal amount of 8.25% Senior Notes for which consents were validly delivered and unrevoked). The 8.25% Senior Notes were callable at 104.125% starting February 15, 2015 with such premium declining to zero by February 15, 2017. In accordance with the Plan, on the Emergence Date, all outstanding obligations under the 8.25% Senior Notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. 6.875% Senior Notes Due 2024 On May 27, 2014, EGC issued at par $650 million in aggregate principal amount of the 6.875% Senior Notes due March 15, 2024 . On June 1, 2015, we completed a registered offer to exchange the 6.875% Senior Notes for a new series of freely tradable notes having substantially identical terms as the 6.875% Senior Notes. EGC incurred underwriting and direct offering costs of approximately $11 million which were recorded as debt issuance costs . In accordance with the Plan, on the Emergence Date, all outstanding obligations under the 6.875% Senior Notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. 3.0% Senior Convertible Notes due 2018 On November 18, 2013, EXXI Ltd sold $400 million face value of 3.0% Senior Convertible Notes due 2018 (the “3.0% Senior Convertible Notes”). We incurred underwriting and direct offering costs of $7.6 million which were recorded as debt issuance costs. The 3.0% Senior Convertible Notes were convertible into cash, shares of common stock or a combination of cash and shares of common stock, at the election of EXXI Ltd , based on an initial conversion rate of 24.7523 shares of common stock per $1,000 principal amount of the 3.0% Senior Convertible Notes (equivalent to an initial conversion price of approximately $40.40 per share of common stock). The conversion rate, and accordingly the conversion price, were permitted to be adjusted under certain circumstances as described in the indenture governing the 3.0% Senior Convertible Notes. For accounting purposes, the $400 million aggregate principal amount of 3 .0 % Senior Convertible Notes for which we received cash was recorded at fair market value by applying the implied straight debt rate of 6.75% to allocate the proceeds between the debt component and the convertible equity component of the 3 .0 % Senior Convertible Notes , which has been reflected as additional paid-in capital . Based on applying the implied straight debt rate, the $400 million aggregate principal amount of the 3 .0 % Senior Convertible Notes was recorded at $336.6 million and the original issue discount of $63.4 million was amortized as an increase in interest expense on the 3 .0 % Senior Convertible Notes. As described in the indenture governing the 3.0% Senior Convertible Notes, the 3.0% Senior Convertible Notes were permitted to be converted in multiples of $1,000 principal amount, upon request by the bondholder, if prior to September 15, 2018, during the five consecutive business-day period following any ten consecutive trading-day period in which the trading price per $1,000 principal amount of 3.0% Senior Convertible Notes for each trading day during such ten trading-day period was less than 98% of the closing sale price of EXXI Ltd’s common stock for each trading day during such ten trading-day period multiplied by the then current conversion rate. In March 2016, each $1,000 principal amount of 3.0% Senior Convertible Notes were trading substantially lower than 98% of the value of EXXI Ltd common stock multiplied by the then current conversion rate. Accordingly, certain bondholders holding $37 million in face value of the 3.0% Senior Convertible Notes requested conversion into shares of EXXI Ltd common stock. Upon conversion, EXXI Ltd elected to issue shares of its common stock and delivered 915,385 shares of our common stock with fractional shares settled in cash. We followed the guidance in ASC 470-20, Debt with Conversion and Other Options, to record such conversion which allows for the allocation of fair value of the consideration transferred to the bondholder between the liability and equity components of the original instrument, recognition of gain or loss on debt extinguishment and allocation of remaining consideration transferred to reacquire the equity component. Accordingly, we recorded a debt extinguishment gain of approximately $33.2 million and proportionately adjusted the related debt issue costs, accrued interest and original debt issue discount. In accordance with the Plan, on the Emergence Date, all outstanding obligations under the 3 .0 % Senior Notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. 7.5% Senior Notes Due 2021 On September 26, 2013, EGC issued at par $500 million aggregate principal amount of 7.5% unsecured senior notes due December 15, 2021 ( the “7.5% Senior Notes”). In April 2014, we completed a registered offer to exchange the 7.5% Senior Notes with a new series of freely tradable notes having substantially identical terms as the 7.5% Senior Notes . EGC incurred underwriting and direct offering costs of $8.6 million which were recorded as debt issuance costs . In accordance with the Plan, on the Emergence Date, all outstanding obligations under the 7.5 % Senior Notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. 7.75% Senior Notes On February 25, 2011, EGC issued at par $ 250 million aggregate principal amount of 7.75% unsecured senior notes due June 15, 2019 (the “7.75% Old Senior Notes”). On July 7, 2011, EGC exchanged the 7.75% Old Senior Notes for newly issued notes registered under the Securities Act (the “7.75% Senior Notes”) with identical terms and conditions. EGC incurred underwriting and direct offering costs of $ 3.1 million which were recorded as debt issuance costs. In accordance with the Plan, on the Emergence Date, all outstanding obligations under the 7.75 % Senior Notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. 9.25% Senior Notes On December 17, 2010, EGC issued at par $ 750 million aggregate principal amount of 9.25 % unsecured senior notes due December 15, 2017 (the “9.25% Old Senior Notes”). On July 8, 2011, EGC exchanged $ 749 million of the 9.25% Old Senior Notes for $ 749 million of newly issued notes (the “9.25% Senior Notes”) registered under the Securities Act with identical terms and conditions. The trading restrictions on the remaining $ 1 million face value of the 9.25% Old Senior Notes were lifted on December 17, 2011. EGC incurred underwriting and direct offering costs of $ 15.4 million which were recorded as debt issuance costs. In accordance with the Plan, on the Emergence Date, all outstanding obligations under the 9.25% Senior Notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. 4.14% Promissory Note In September 2012, the Predecessor entered into a promissory note of $ 5.5 million to acquire other property and equipment. Under this note , which is secured by such other property and equipment, we were required to make a monthly payment of approximately $ 52,000 and were to pay one lump-sum payment of $ 3.3 million at maturity in October 2017 . This note carrie d an interest rate of 4.14 % per annum. In accordance with the Plan, on the Emergence Date, all outstanding obligations under the promissory note were reinstated. Derivative Instruments Premium Financing We finance premiums on derivative instruments that we purchase with our hedge counterparties. Substantially all of our hedge transactions were with L enders under the Prepetition Revolving Credit Facility . Derivative instruments premium financing was accounted for as debt and this indebtedness is pari passu with borrowings under the Prepetition Revolving Credit Facility . The derivative instruments premium financing is structured to mature when the derivative instrument settles so that we realize the value , net of derivative instrument p remium financing. As of December 31, 2016, June 30, 2016 and 201 5 , our outstanding derivative instruments premium financing discounted at our approximate borrowing cost of 2.5 % per annum totaled $ 0 , $0 and $ 10.6 million , respectively. Interest Expense The f iling of the Bankruptcy Petitions constituted an event of default with respect to the Predecessor’s existing debt obligations. Accordingly , the Predecessor’ s pre-petition secured indebtedness under the Prepetition Revolving Credit Facility, Second Lien Notes and EPL and EGC unsecured notes became immediately due and payable and any efforts to enforce such payment obligations we re automatically stayed as a result of the Chapter 11 Cases . In addition, as a result of the covenant violations that existed at March 31, 2016 that were not cured prior to the filing of the Bankruptcy Petitions, all of our outstanding indebtedness was classified as current in the consolidated balance sheet at March 31, 2016, and we accelerated the amortization of the associated debt premium and original issue discount, fully amortizing those amounts as of March 31, 2016. In addition, except for amounts related to the Prepetition Revolving Credit Facility, the Predecessor accelerated the amortization of the remaining debt issuance costs related to its outstanding indebtedness, fully amortizing those costs as of March 31, 2016. The Predecessor continue d to accrue interest on the Prepetition Revolving Credit Facility subsequent to the Petition Date until the Emergence Date . However, for all our other indebtedness, in accordance with accounting guidance in ASC 852, Reorganizations, the Predecessor accrued interest only up to the Petition Date. Contractual interest on liabilities subject to compromise not reflected in the consolidated statements of operations was approximately $176.5 million, representing interest expense from the Petition Date through Emergence Date, of which $123.7 pertained to the six month transition period ended December 31, 2016 . Interest expense consisted of the following ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Prepetition Revolving Credit Facility $ 11,670 $ 15,703 $ 25,506 $ 13,956 11.0% Second Lien Notes due 2020 - 125,852 48,505 - 8.25% Senior Notes due 2018 - 27,899 42,075 3,507 6.875% Senior Notes due 2024 - 18,033 44,701 4,096 3.0% Senior Convertible Notes due 2018 - 9,340 12,000 7,266 7.50% Senior Notes due 2021 - 17,414 37,500 28,542 7.75% Senior Notes due 2019 - 8,200 19,375 19,375 9.25% Senior Notes due 2017 - 44,944 69,375 69,375 4.14% Promissory Note due 2017 - 130 192 210 Amortization of debt issue cost - Prepetition Revolving Credit Facility 725 5,185 12,491 3,076 Accretion of original debt issue discount, 11.0% Second Lien Notes due 2020 - 6,249 2,358 - Accretion of original debt issue discount, 11.0% Second Lien Notes due 2020 - accelerated - 44,855 - - Amortization of debt issue cost – 11.0% Second Lien Notes due 2020 - 5,047 1,887 - Amortization of debt issue cost – 11.0% Second Lien Notes due 2020 - accelerated - 36,243 - - Amortization of fair value premium – 8.25% Senior Notes due 2018 - (8,818) (11,108) (841) Amortization of fair value premium – 8.25% Senior Notes due 2018 - accelerated - (7,961) - - Amortization of debt issue cost – 6.875% Senior Notes due 2024 - 457 1,127 102 Amortization of debt issue cost – 6.875% Senior Notes due 2024 - accelerated - 1,946 - - Accretion of original debt issue discount, 3.0% Senior Convertible Notes due 2018 - 8,917 11,232 6,418 Accretion of original debt issue discount, 3.0% Senior Convertible Notes due 2018 - accelerated - 33,370 - - Amortization of debt issue cost – 3.0% Senior Convertible Notes due 2018 - 1,142 1,439 801 Amortization of debt issue cost – 3.0% Senior Convertible Notes due 2018 - accelerated - 4,271 - - Amortization of debt issue cost – 7.50% Senior Notes due 2021 - 478 1,051 783 Amortization of debt issue cost – 7.50% Senior Notes due 2021 - accelerated - 2,822 - - Amortization of debt issue cost – 7.75% Senior Notes due 2019 - 168 388 388 Amortization of debt issue cost – 7.75% Senior Notes due 2019 - accelerated - 491 - - Amortization of debt issue cost – 9.25% Senior Notes due 2017 - 1,902 2,358 2,206 Amortization of debt issue cost – 9.25% Senior Notes due 2017 - accelerated - 913 - - Derivative instruments financing and other 185 466 856 987 Bridge commitment fee - - - 2,481 $ 12,580 $ 405,658 $ 323,308 $ 162,728 |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligations [Abstract] | |
Asset Retirement Obligations | Note 10 – Asset Retirement Obligations The following table describes the changes in our asset retirement obligations ( in thousands ): Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 Beginning of period total (Predecessor) $ 537,619 $ 487,085 $ 559,834 Liabilities acquired - 66,700 - Liabilities incurred and true-up to liabilities settled 13,880 34,167 40,820 Liabilities settled (18,852) (78,273) (106,573) Liabilities sold - - (65,752) Revisions* (3,896) (36,750) 8,675 Accretion expense 38,973 64,690 50,081 End of period total (Predecessor) 567,724 537,619 487,085 Less: End of period, current portion (Predecessor) 71,717 33,286 End of period, noncurrent portion (Predecessor) $ 465,902 $ 453,799 Fair value fresh start adjustments 185,640 Less: End of period, current portion (Successor) 56,601 End of period, noncurrent portion (Successor) $ 696,763 * This downward revision for the year ended June 30, 2016 was primarily due to declining service costs resulting from the decline in commodity prices and decrease in demand for oil field services due to excess capacity. See Note 4 – “Fresh Start Accounting” for the methodology and assumptions used in arriving at fair value fresh start adjustments on the Convenience Date. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 11 – Derivative Financial Instruments We have historically entered into hedging transactions to reduce exposure to fluctuations in the price of crude oil and natural gas. We have historically entered into hedging transactions with multiple investment-grade rated counterparties, primarily financial institutions, to reduce the concentration of exposure to any individual counterparty. We have used various instruments including financially settled crude oil and natural gas puts, put spreads, swaps, zero-cost collars and three-way collars in our hedging portfolio. Derivative financial instruments are recorded at fair value and included as either assets or liabilities in the accompanying consolidated balance sheets. Any gains or losses resulting from changes in fair value of our outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included in gain (loss) on derivative financial instruments as a component of revenues in the accompanying consolidated statement of operations. With a zero-cost collar, the counterparty is required to make a payment to us if the settlement price for any settlement period is below the floor price of the collar, and we are required to make a payment to the counterparty if the settlement price for any settlement period is above the cap price for the collar. A three-way collar is a combination of options consisting of a sold call, a purchased put and a sold put. The sold call establishes a maximum price we will receive for the volumes under contract. The purchased put establishes a minimum price unless the market price falls below the sold put, at which point the minimum price would be the reference price (i.e., NYMEX WTI, BRENT ICE and/or Argus-LLS) plus the difference between the purchased put and the sold put strike price. Most of our crude oil production is Heavy Louisiana Sweet. We have historically included contracts indexed to NYMEX WTI, ICE Brent futures and Argus-LLS futures in our hedging portfolio to closely align and manage our exposure to the associated price risk. The energy markets have historically been very volatile, and there can be no assurances that crude oil and natural gas prices will not be subject to wide fluctuations in the future. While the use of hedging arrangements helps to limit the downside risk of adverse price movements, they may also limit future gains from favorable price movements. On March 14, 2016, the Fourteenth Amendment to the Prepetition Revolving Credit Facility became effective and required us to unwind certain hedging transactions and use the proceeds therefrom to repay amounts of outstanding loans to EPL under the Prepetition Credit Agreement, and for such repayments to then result in an automatic and permanent reduction in EXXI Ltd’s borrowing base. Accordingly, on March 15, 2016, EXXI Ltd unwound and monetized all of its outstanding crude oil and natural gas contracts and $50.6 million was applied to reduce amounts outstanding under the Prepetition Revolving Credit Facility. T he Company did not enter into any derivative instruments during the six month transition period ended December 31, 2016, accordingly, there were no outstanding derivative contracts on December 31, 2016. The fair value of our derivative instruments in our consolidated balance sheets were as follows ( in thousands ) Predecessor Asset Derivative Instruments Liability Derivative Instruments June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative financial instruments Current $ - Current $ 51,024 Current $ - Current $ 31,456 Non- Current - Non- Current 11,980 Non- Current - Non- Current 9,440 Total Gross Commodity Derivative Instruments subject to enforceable master netting agreement - 63,004 - 40,896 Derivative financial instruments Current - Current (28,795) Current - Current (28,795) Non- Current - Non- Current (8,082) Non- Current - Non- Current (8,082) Total gross amounts offset in Balance Sheets - (36,877) - (36,877) Net amounts presented in Balance Sheets Current - Current 22,229 Current - Current 2,661 Non- Current - Non- Current 3,898 Non- Current - Non- Current 1,358 $ - $ 26,127 $ - $ 4,019 The following table presents information about the components of the gain (loss) on derivative instruments ( in thousands ) . Predecessor Year Ended June 30, Gain (loss) on derivative financial instruments 2016 2015 2014 Cash Settlements, net of purchased put premium amortization $ 59,081 $ 81,049 $ (17,312) Proceeds from monetizations 50,588 102,354 - Change in fair value (19,163) 52,036 (69,656) Total gain (loss) on derivative financial instruments $ 90,506 $ 235,439 $ (86,968) We monitor the creditworthiness of our counterparties. However, we are not able to predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, we may be limited in our ability to mitigate an increase in counterparty credit risk. Possible actions would be to transfer our position to another counterparty or request a voluntary termination of the derivative contracts resulting in a cash settlement. Should one of these financial counterparties not perform, we may not realize the benefit of some of our derivative instruments under lower commodity prices and could incur a loss. At December 31, 2016, we had no outstanding derivative contracts and, accordingly, no deposits for collateral with our counterparties. In February 2017, we entered into oil contracts (costless collars) benchmarked to Argus-LLS, to hedge 10,000 barrels per day of our production for the period from March 2017 to December 2017 with an average floor price of $52.30 and an average ceiling price of $57.43. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 1 2 – Stockholders’ Equity Successor Common and Preferred Stock Amendments to Articles of Incorporation or Bylaws Pursuant t o the Plan, on the Emergence Date, the Company’s certificate of incorporation and bylaws were amended and restated in their entirety. Each of the Company’s Certificate of Incorporation and second amended and restated bylaws became effective on the Emergence Date. Under our Certificate of Incorporation, the total number of all shares of capital stock that we are authorized to issue is 110 million shares, consisting of 100 million shares of the Company’s common stock, par value $0.01 per share, and 10 million shares of preferred stock, par value $0.01 per share. In order to permit Mr. Reddin to be appointed CEO on an interim basis, the Board adopted the Third Amended and Restated Bylaws (the “ Bylaws ”) on February 2, 2017. Pursuant to the Bylaws, Section 4.1 was amended to provide that the positions of Chairman of the Board and Chief Executive Officer may be held by the same person only if (i) the two positions are held by the same person solely on an interim basis and (ii) the Board elects a Lead Independent Director for any period in which the two positions are held by the same person. Accordingly, the Bylaws added a new Section 3.8 to establish the position of Lead Independent Director and specified that position’s duties. The Bylaws provide that, during any period in which a Lead Independent Director is serving, the Lead Independent Director may, among other responsibilities, call and preside over all meetings of independent directors and, in the Chairman of the Board’s absence, preside over all meetings of the Company’s stockholders and of the Board. After adopting the Bylaws, the Board appointed James “Jay” W. Swent III to serve as Lead Independent Director. Mr. Swent is an existing member of the Board, and will continue to serve as chairman of the Audit Committee of the Board. Registration Rights Agreement On the Emergence Date, the Company entered into a registration rights agreement with certain holders representing 10% or more of the Company’s common stock outstanding on that date or who acquire 10% or more of the Company’s common stock outstanding within six months of the Emergence Date (the “Holders”). The Registration Rights Agreement provides resale registration rights for the Holders’ Registerable Securities (as defined in the Registration Rights Agreement). On or before the date that is 60 days after the Emergence Date, the Company has agreed to file, and will thereafter use its commercially reasonable efforts to cause to be declared effective as promptly as practicable, a registration statement for the offer and resale of the Company’s common stock held by the Holders. Pursuant to the Registration Rights Agreement, the Holders have customary demand, underwritten offering and piggyback registration rights, subject to the limitations set forth in the Registration Rights Agreement. Under their demand registration rights, holders may request Company to register all or a portion of their registerable securities, including on a delayed or continuous basis under Rule 415 of the Securities Act. Holders, as a group, are entitled to five demand registrations. Generally, the Company is required to provide notice of a demand request within ten days following the receipt of the demand notice to all additional Holders, who may, in certain circumstances, participate in such demand registration. Under their underwritten offering registration rights, Holders also have the right to demand the Company to effectuate the distribution of any or all of such Holders’ Registerable Securities by means of an underwritten offering pursuant to an effective registration statement. Holders, as a group, are entitled to three underwritten offering requests in any twelve-month period. The Company is not obligated to effect a demand registration request or an underwritten demand registration request within 180 days of closing either a demand registration or an underwritten offering. The Company is required to use its reasonable best efforts to maintain the effectiveness of any such demand registration statement until the earlier of 270 days (or three years if a “shelf registration” is requested) after the Emergence Date and the consummation of the distribution by the participating Holders. Under their piggyback registration rights, if at any time the Company proposes to register an offering of its common stock for its own account, the Company must give at least ten business days’ notice to all Holders to allow them to include their shares in the registration statement, subject to certain limitations. These registration rights are subject to certain conditions and limitations, including the right of the underwriters to limit the number of shares to be included in a registration and the Company’s right to delay or withdraw a registration statement under certain circumstances. The Company will generally pay all registration expenses in connection with its obligations under the Registration Rights Agreement, regardless of whether a registration statement is filed or becomes effective. The registration rights granted in the Registration Rights Agreement are subject to customary indemnification and contribution provisions, as well as customary restrictions such as blackout periods and, if an underwritten offering is contemplated, limitations on the number of shares to be included in the underwritten offering that may be imposed by the managing underwriter. The obligations to register shares under the Registration Rights Agreement will terminate with respect to the Company and each Holder on the first date upon which such Holder no longer beneficially owns any Registerable Securities. Warrant Agreement On the Emergence Da te, the Company issued 2,119,889 warrants to holders of the EGC Unsecured No tes Claims and holders of the EPL Unsecured Notes Claims. The w arrants are exercisable from the date of the Warrant Agreement until the Expiration Date. The w arrants are initiall y exercisable for one share of common stock per w arrant at an initial exercise price of $43.66 . The Warrant Exercise Shares and Exercise Price are subject to customary anti-dilution adjustments. No adjustments to the applicable Exercise Price or Warrant Exercise Shares are required unless the cumulative adjustments required would result in an increase or decrease of at least 1.0% in the applicable Exercise Price or the Warrant Exercise Shares. Additionally, if an adjustment in Exercise Price would reduce the Exercise Price to an amount below par v alue of the c ommon s tock, then such adjustment in Exercise Price will reduce the Exercise Price to the par value of the common s tock. Upon the occurrence of certain events prior to the Expiration Date constituting a recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company’s equity securities or assets or other transaction, in each case which is effected in such a way that the holders of common s tock are entitled to receive (either directly or upon subsequent liquidation) cash, stock, securities or other assets or property with respect to or in exchange for c ommon s tock (any such event, “Or ganic Change”), each holder of w arrants will be entitled to receive, upon exercise of a W arrant, such cash, stock, securities or other assets or property as would have been issued or payable in such Organic Change (as if the holder had exercised such Warrant immediately prior to such Organic Change) with respect to or in exchange, as applicable, for the number of Warrant Exercise Shares that would have been issued upon exercise of such w arrants, if such w arrants had been exercised immediately prior to the occurrence of such Organic Change. Holders of w arrants are not entitled, by virtue of holding w arrants, to vote, to consent, to receive dividends, to consent or to receive notice as stockholders with respect to any meeting of stockholders for the election of the Company ’s directors or any other matter, or to exercise any rights whatsoever as the Company ’s stockholders unless, until and only to the extent such holders become holders of record of shares of common s tock issuable upon exercise of the w arrants. The w arrants permit a holder of w arrants to exercise the w arrants for net share or “cashless” settlement in lieu of paying the Exercise Price by authorizing the Company to withhold and not issue to such holder, in payment of the Exercise Price, a number of such Warrant Exercise Shares equal to (i) the number of Warrants Exercise Shares for which the w arrants are being exercised, multiplied by (ii) the Exercise Price, and divided by (iii) the Current Sale Price (as defined in the Warrant Agreement) on the Exercise Date. Shares of common stock and warrants issued and outstanding On the E mergence Date, the Company issued (i) 27,897,739 shares of c ommon s tock, pro rata, to holders of the claims arising from the Second Lien N otes, (ii) 3,985,391 shares of common s tock, pro rata, to holders of the claims arising from the EGC Unsecured Notes Claims, (iii) 1,328,464 shares of c ommon s tock, pro rata, to holders of the claims arising from the EPL Unsecured Notes Claims , (iv) 1,271,933 w arrants, pro rata, to holders of the EGC Unsecured Notes Claims; and (v) 847,956 w arrants, pro rata, to holders of the EPL Unsecured Notes Claims. The Confirmation Order and Plan provide for the exemption of the o ffer and sale of the shares of common stock and the w arrants (including shares of Common Stock issuable upon the exercise thereof) from the registration requirements of the Securities Act pursuant to Section 1145(a)(1) of the Bankruptcy Code. Section 1145(a)(1) of the Bankruptcy Code exempts the offer and sale of securities under the Plan from registration under Section 5 of the Securities Act and state laws if certain requirements are satisfied. As of December 31, 2016, 33,211,594 shares of common stock and 2,119,889 w arrants were outstanding. Predecessor Common Stock EXXI Ltd’s common stock was traded on th e NASDAQ under the symbol “EXXI ” prior to its delisting in connection with the commencement of the Chapter 11 proceedings. EXXI Ltd’s common stock resumed trading on the OTC Pink under the symbol “EXXIQ” on April 25, 2016. As a result of filing of the Bankruptcy Petitions, EXXI Ltd’s common stock was suspended from trading on the NASDAQ on April 25, 2016. A Form 25-NSE was filed with the SEC on May 19, 2016, which removed EXXI Ltd’s securities from listing and registration on NASDAQ. EXXI Ltd’s shareholders we re entitled to one vote for each share of common stock held on all matters to be voted on by shareholders. EXXI Ltd ha d 200,000,000 authorized common shares, par value of $0.005 per share. Late in fiscal year 2015, the Board of Directors of EXXI Ltd (the “Predecessor Board”) decided to suspend the declaration of quarterly dividends on our common stock. During fiscal year 2015, EXXI Ltd paid to holders of its common stock cash dividends of $0.12 per share on September 12, 2014 and December 12, 2014 and $0.01 per share on March 13, 2015 and June 12, 2015 . During fiscal year 2014, EXXI Ltd paid to holders of its common stock quarterly cash dividends of $0.12 per share. On April 14, 2016, we received a letter from The NASDAQ Listing Qualifications Staff stating that the Staff has determined that the EXXI Ltd ’s securities would be delisted from NASDAQ. The decision was reached by the Staff under NASDAQ Listing Rules 5101, 5110(b) and IM-5101-1 as a result of our filing the Bankruptcy Petitions, the associated public interest concerns raised by the Bankruptcy Petitions, concerns regarding the residual equity interest of EXXI Ltd’s listed securities holders and concerns about EXXI Ltd’s ability to sustain compliance with all requirements for continued listing on NASDAQ. On February 24, 2016, EXXI Ltd received a deficiency notice from NASDAQ stating that, based on the closing bid price of its common stock for the prior 30 consecutive business days, EXXI Ltd no longer met the minimum $1.00 per share requirement under NASDAQ Listing Rule 5450(a)(1). Because we did not request an appeal, trading of EXXI Ltd’s common stock was suspended at the opening of business on April 25, 2016, and a Form 25-NSE was filed with the SEC on May 19, 2016, which removed EXXI Ltd’s securities from listing and registration on NASDAQ. EXXI Ltd’s securities resumed trading on the OTC Markets Group Inc.’s OTC Pink under the symbol “EXXIQ” on April 25, 2016. On December 30, 2016, upon emergence from the Chapter 11 Cases, EXXI Ltd’s common shares were removed from the OTC Market. The Predecessor’s Board adopted a NOL Shareholder Rights Agreement (the “Rights Plan”) designed to preserve substantial tax assets of our U.S. subsidiaries. The Rights Plan is intended to protect our tax benefits and to allow all of our existing shareholders to realize the long-term value of their investment in the Company. The Predecessor Board adopted the Rights Plan after considering, among other matters, the estimated value of the tax benefits, the potential for diminution upon an ownership change, and the risk of an ownership change occurring. Our ability to use these tax benefits would be substantially limited if we were to experience an "ownership change" as defined under Section 382 of the IRC (“Section 382”). An ownership change would occur if shareholders that own (or are deemed to own) at least 5% or more of our outstanding common stock increased their cumulative ownership in the Company by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. The Rights Plan reduced the likelihood that changes in EXXI Ltd’s investor base would limit its future use of its tax benefits, which would significantly impair the value of the benefits to all shareholders. To implement the Rights Plan, the Predecessor Board declared a non-taxable dividend of one preferred share purchase right (“Rights”) for each outstanding share of common stock of EXXI Ltd . The rights were exercisable if a person or group acquired 4.9% or more of EXXI Ltd’s common stock. The rights were also exercisable if a person or group that already owned 4.9% or more of EXXI Ltd’s common stock acquired additional shares (other than as a result of a dividend or a stock split). EXXI Ltd’s existing shareholders that beneficially owned in excess of 4.9% of the common stock were “grandfathered in” at their then ownership level. If the rights were to have become exercisable, all holders of rights, other than the person or group triggering the rights, would have been entitled to purchase EXXI Ltd’s common stock at a 50% discount. Rights held by the person or group triggering the rights will became void and will not be exercisable. The Rights traded with shares of EXXI Ltd’s common stock and expired on February 15, 2017. As of December 30, 2016, no Rights had been exercised. In March 2016, each $1,000 principal amount of 3.0% Senior Convertible Notes were trading substantially lower than 98% of the value of EXXI Ltd’s common stock multiplied by the then current conversion rate. Accordingly, certain bondholders holding $37 million in face value of our 3.0% Senior Convertible Notes requested conversion into shares of EXXI Ltd’s common stock. Upon conversion, EXXI Ltd elected to issue shares of its common stock and delivered 915,385 shares of its common stock with fractional shares settled in cash. For more information see Note 9 – “Long-Term Debt,” under the caption 3.0% Senior Convertible Notes Due 2018. In May 2013, the Predecessor Board approved a stock repurchase program authorizing it to repurchase up to $250 million in value of its common stock for an extended period of time, in one or more open market transactions. T he repurchase program authorized EXXI Ltd to make repurchases on a discretionary basis as determined by management, subject to market conditions, applicable legal requirements, available liquidity and other appropriate factors. The repurchase program did not obligate EXXI Ltd to acquire any particular amount of common stock and could have be en modified or suspended at any time and could have b e e n terminated prior to completion. EXXI Ltd suspended the repurchase program indefinitely to reduce our capital needs. EXXI Ltd did not make any repurchases under its repurchase program during the fiscal years ended June 30, 2016 and 2015. D uring the year ended June 30, 2014, EXXI Ltd incurred $94.2 million to repurchase 3,700,463 shares of our common stock at a weighted average price per share, excluding fees, of $25.45 . As of June 30, 2016, $83.2 million remained available for repurchases under the share repurchase program. In February 2014, EXXI Ltd retired 2,087,126 shares of its common stock, resulting in 7,329,100 shares of its common stock being held in treasury. On June 3, 2014, EXXI Ltd reissued t he entire 7,329,100 shares of its common stock in treasury as part of our common stock issued to EPL stockholders in connection with EPL Acquisition . As discussed in Note 5 – “ Acquisitions and Dispositions ,” upon closing of the EPL Acquisition, EXXI Ltd issued 23,320,955 shares of our common stock, including the treasury shares, as noted above , as part of the Merger Consideration . As discussed in Note 9 – “ Long-Term Debt ,” in November 2013 EXXI Ltd sold $400 million of 3.0% Senior Convertible Notes. The $63.4 million allocated to the equity portion of the 3 .0 % Senior Convertible Notes, less offering costs of $1.4 million, were recorded as an increase in additional paid in capital. In addition, concurrently with the offering of the 3.0% Senior Convertible Notes in November 2013, EXXI Ltd repurchased 2,776,200 shares of its common stock for approximately $76 million, at a weighted average price per share, excluding fees of $27.39 . Predecessor Preferred Stock EXXI Ltd’s bye-laws authorized the issuance of 7,500,000 shares of preferred stock. The Predecessor Board wa s empowered, without shareholder approval, to issue preferred stock with dividend, liquidation, conversion, voting or other rights that could adversely affect the voting power or other rights of the holders of common stock. Dividends on both the 5.625 % Perpetual Convertible Preferred Stock (“5.625% Preferred Stock”) and the 7.25 % Perpetual Convertible Preferred Stock (“ 7.25 % Preferred Stock”) were payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year. Dividends on both the 5.625% Preferred Stock and the 7.25% Preferred S tock were to be paid in cash , shares of EXXI Ltd’s common stock, or a com bination thereof. As a result of filing the Bankruptcy Petitions, EXXI Ltd no longer accrued dividends on preferred stock, accordingly, EXXI Ltd suspended the quarterly dividends on the 5.625% Preferred Stock and the 7.25% Preferred Stock effective January 1, 2016. Preferred stock dividends that would have accrued from the Petition Date through December 31, 2016 totaled approximately $5.7 million. The 5.625% Preferred Stock was convertible into 9.8353 shares of EXXI Ltd’s common stock at the conversion rate and price in effect on the conversion date. At June 30, 2015, the conversion rate was 10.4765 common shares per preferred share. On or after December 15, 2013, EXXI Ltd was permitted to cause the 5.625% Preferred Stock to be automatically convertible into common stock at the then prevailing conversion rate if, for at least 20 trading days in a period of 30 consecutive trading days, the daily average price of EXXI Ltd’s common stock equals or exceeds 130% of the then-prevailing conversion price. The 5.625% Preferred Stock became callable beginning December 15, 2013 if EXXI Ltd’s common stock trading price exceeded $32.45 per share for 20 of 30 consecutive trading days. The 7.25% Preferred Stock was convertible into 8.77192 shares of EXXI Ltd’s common stock at the conversion rate and price in effect on the conversion date. At June 30, 2015, the conversion rate was 9.3439 common shares per preferred share. On or after December 15, 2014, EXXI Ltd was permitted to cause the 7.25% Preferred Stock to be automatically convertible into common stock at the then prevailing conversion rate if, for at least 20 trading days in a period of 30 consecutive trading days, the daily average price of EXXI Ltd’s common stock equals or exceeds 150% of the then-prevailing conversion price. Conversion of Preferred Stock During the six months ended December 31, 2016, we cancelled and converted 300,248 shares of our 5.625% Preferred Stock into a total of 3,145,549 shares of common stock using a conversion rate of 10.4765 common shares per preferred share. During the year ended June 30, 2016, we cancelled and converted 150,787 shares of our 5.625% Preferred Stock into a total of 1,579,522 shares of common stock using a conversion rate of 10.4765 common shares per preferred share. During the year ended June 30, 2015, we cancelled and converted a total of 5,000 shares of our 7.25% Preferred Stock into a total of 46,472 shares of common stock using a conversion rate of 9.2940 common shares per preferred share. During the year ended June 30, 2015, we also cancelled and converted one share of our 5.625% Preferred Stock into 11 shares of common stock using a conversion rate of 10.2409 common shares per preferred share. During the year ended June 30, 2014, we cancel l ed and converted a total of 428 shares of our 5.625% Preferred Stock into a total of 4,288 shares of common stock using a conversion rate ranging from 10.0147 to 10.0579 common shares per preferred share . Notice Procedures and Transfer Restrictions On April 14, 2016, the Debtors filed a motion (the “NOL Motion”) in the Bankruptcy Court for the entry of an order pursuant to Sections 105(a), 362 and 541 of the Bankruptcy Code to enable us to avoid limitations on the use of our tax net operating loss carryforwards and certain other tax attributes by imposing certain notice procedures and transfer restrictions on the acquisition (including by conversion) or disposition of the EXXI Ltd’s equity securities, including its common stock, 5.625% Preferred Stock or 7.25% Preferred Stock (the “Stock”). The Bankruptcy Court granted the NOL Motion on an interim basis on April 15, 2016 and a final basis on May 19, 2016. In general, the final order granting the NOL Motion (the “Order”) applies to any person or entity that, directly or indirectly, has (or would have, as a result of a proposed transaction) beneficial ownership of at least 4.9% of EXXI Ltd’s outstanding Stock, as determined in accordance with applicable rules under Section 382 of the IRC (“Tax Ownership”). As a result of the Plan, there are no assets remaining in EXXI Ltd, and under Bermuda law, preferred stockholders of EXXI Ltd will receive no payments. EXXI Ltd will be dissolved at the conclusion of the Bermuda Proceeding, and as such, the preferred stockholders will no longer have any interest in EXXI Ltd as a matter of Bermuda law. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note 1 3 – Supplemental Cash Flow Information The following table presents our supplemental cash flow information ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Cash paid for interest $ 7,493 $ 229,569 $ 243,238 $ 139,575 Cash paid for income taxes - 150 933 3,641 The following table presents our non-cash investing and financing activities ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Financing of insurance premiums $ - $ - $ - $ 21,967 Derivative instruments premium financing - - 12,025 11,257 Changes in capital expenditures accrued in accounts payable 10,242 (37,151) (168,569) 115,696 Acquisition of property against joint interest billings receivable (1,500) - - - Inventory transferred to oil and natural gas properties - 7,081 - - Changes in asset retirement obligations 9,984 (2,583) 49,495 299,225 Monetization of derivative instruments applied to Revolving Credit Facility - 50,588 - - Treasury stock reissued for the EPL Acquisition - - - 154,717 Common stock issued for the EPL Acquisition - - - 337,588 |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 1 4 – Employee Benefit Plans Successor Long Term Incentive Plan 2016 Long Term Incentive Plan As of the Emergence Date, the Company entered into the Energy XXI Gulf Coast, Inc. 2016 Long Term Incentive Plan (the “2016 LTIP”), which is a comprehensive equity-based award plan as part of the go-forward compensation for our officers, directors, employees and consultants (“Service Providers”). The total number of shares of our common stock reserved and available for delivery with respect to awards under the 2016 LTIP is 1,859,552 shares (or 5% of the total new equity). Our Board will determine the types of equity based awards (which may include stock option, stock appreciation rights, restricted stock, restricted stock units, bonus stock awards, performance awards, other stock based awards or cash awards) and the terms and conditions (including vesting and forfeiture restrictions) of such awards. Awards under the 2016 LTIP will be awarded to the Service Providers selected in the discretion of our Board; provided, however, that 3% of the 5% total new equity on a fully diluted basis reserved under the 2016 LTIP must be allocated by our Board no later than 120 days after the Emergence Date. Subsequent to December 31, 2016, 106,250 restricted shares were issued to members of the Board pursuant to the terms of the 2016 LTIP and the Non-Employee Director Compensation Policy (the “Director Compensation Policy”) discussed below . Non-Employee Director Compensation On January 6, 2017, the Board adopted the Non-Employee Director Compensation Policy (the “Director Compensation Policy”), pursuant to which each non-employee director is entitled to receive, or has received, the compensation as set forth in the Director Compensation Policy. The Director Compensation Policy provides for annual cash retainers of (i) $75,000 for serving on the Board or $125,000 for serving as the Non-Executive Chairman of the Board; (ii) $25,000 for serving as the Chairman of the Audit Committee and $12,500 for serving as a member of the Audit Committee; (iii) $25,000 for serving as the Chairman of the Compensation Committee and $12,500 for serving as a member of the Compensation Committee; and (iv) $10,000 for serving as the Chairman of the Nomination and Governance Committee and $5,000 for serving as a member of the Nomination and Governance Committee. As set forth in the Director Compensation Policy, each non-employee director is also eligible to receive (a) an initial restricted stock unit award of $200,000 or $300,000 for the Non-Executive Chairman of the Board and (b) $130,000 of annual restricted stock units or $175,000 for the Non-Executive Chairman of the Board. The deemed value utilized by the Board for purposes of the equity awards to be granted in January 2017 pursuant to the Director Compensation Policy is $20 per share. All equity awards granted pursuant to the Director Compensation Policy are subject to the terms and conditions of the 2016 LTIP, to such director’s continued service on the Board, and to acceleration upon the occurrence of specified events. On February 2, 2017, the Board added the position of Lead Independent Director with a cash retainer of $50,000 for each year or partial year of service. Predecessor Long Term Incentive Plan Prior to the Emergence Date, the Predecessor Company maintained the Energy XXI Services, LLC 2006 Long-Term Incentive Plan (the “2006 Incentive Plan”) an incentive and retention program for its employees. Participation shares (or “Restricted Stock Units”) were issued from time to time at a value equal to its common share price at the time of issue. The Restricted Stock Units generally vested equally over a three -year period. When vesting occurred, the Predecessor Company paid the employee an amount equal to the Predecessor Company’s then current common share price times the number of Restricted Stock Units. The Predecessor Company also awarded performance units (“Performance Units”), including both time-based performance units (“Time-Based Performance Units”) and Total Shareholder Return (“TSR”) Performance-Based Units (“TSR Performance-Based Units”). Both the Time-Based Performance Units and TSR Performance-Based Units vested equally over a three-year period. In addition, prior to the Emergence Date, the Predecessor Company maintained the director compensation program which provided for an annual stock award in lieu of cash payment, employee s tock p urchase p lan which allow ed employees to purchase its common stock at a 15% discount from the lower of the common stock closing price on the first or last day of the offering period and had granted stock options to its certain officers . As a result of the Plan, there are no assets remaining in the Predecessor Company, all common shares of the Predecessor Company will be cancelled and its shareholders will receive no payments with respect to the common shares, and the Predecessor Company will be dissolved pursuant to Bermuda law at the conclusion of the Bermuda Proceeding. As a result, all awards under the 2006 Incentive Plan that remained unvested, including performance-based awards and all of share-based compensation plans at the Emergence Date were cancelled. Defined Contribution Plans Prior to the Emergence Date, the Predecessor Company’s employees were covered by a discretionary noncontributory profit sharing plan. The plan provided for annual discretionary employer contributions that could vary from year to year. The Predecessor Company also sponsored a qualified 401(k) Plan that provided for matching. Pursuant to the terms of the Plan, on the Emergence Date we assumed the Predecessor Company’s defined contribution plans. The contributions under these plans were as follows ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Profit Sharing Plan $ - $ - $ (768) $ 4,833 401(k) Plan 638 2,852 3,192 3,395 Total contributions $ 638 $ 2,852 $ 2,424 $ 8,228 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 1 5 — Related Party Transactions Successor Related Party Transactions On the Emergence Date, the Company entered into a Registration Rights Agreement with the Holders representing 10% or more of the Common Stock outstanding on that date or who acquire 10% or more of the Common Stock outstanding within six months of the Emergence Date. On the Emergence Date, the Company also entered into the Warrant Agreement with Continental Stock Transfer & T rust Company, as Warrant Agent and issued 2,119,889 warrants to holders of the EGC Unsecured No tes Claims and holders of the EPL Unsecured Notes Claims. For more information see Note 12 – “Stockholders’ Equity.” Predecessor Related Party Transactions Prior to the M21K Acquisition on August 11, 2015, we had a 20% interest in EXXI M21K and accounted for this investment using the equity method. We ha d provided a guarantee related to the payment of asset retirement obligations and other liabilities of M21K in the EP Energy p roperty acquisition estimated at $65 million and $1.8 million, respectively. For the LLOG Exploration acquisition, we guaranteed payment of asset retirement obligations of M21K estimated at $36.7 million. For the Eugene Island 330 and South Marsh Island 128 properties purchase , we guaranteed payment of asset retirement obligation s of M21K estimated at $18.6 million. For these guarantees, M21K agreed to pay us $6.3 million, $3.3 million and $1.7 million, respectively, over a period of three years from the respective acquisition dates. For the years ended June 30, 2016, 2015, and 2014, we received $0.3 million, $3.7 million and $3.1 million, respectively, related to such guarantees. Prior to the M21K Acquisition, we also received a management fee of $0.98 per BOE produced for providing administrative assistance in carrying out M21K operations. For the years ended June 30, 2016, 2015, and 2014, we received management fees of $0.2 million, $3.3 million and $3.8 million, respectively. Effective January 15, 2015, the Predecessor Board appointed one of its members, James LaChance, to serve as interim Chief Strategic Officer. In that position, Mr. LaChance pursued discussions with lenders and noteholders to improve our available capital, leverage ratios and average debt maturity, as directed by our Chief Executive Officer, in consultation with the Predecessor Board. Mr. LaChance’s duties as interim Chief Strategic Officer were separate from, and in addition to, his responsibilities as a member of the Board of Directors. In light of the significant increase in the amount of time Mr. LaChance wa s required to spend performing in th at new role, EXXI Ltd and Mr. LaChance entered into an interim Chief Strategic Officer consulting agreement (the “Consulting Agreement”), with an effective date of January 15, 2015. Under the Consulting Agreement, Mr. LaChance was paid $200,000 per month for his services as interim Chief Strategic Officer. The consulting agreement expired on July 15, 2015. For years ended June 30, 2016 and 2015, Mr. LaChance earned and was paid consulting fees of $0.1 million and $1.1 million, respectively, under the Consulting Agreement. In accordance with the Consulting Agreement, Mr. LaChance was also entitled to a success fee if he continuously provided consulting services through the closing of one or a series of transactions to provide us and our affiliates with additional capital of more than $1,000 million. The amount of this success fee was capped at $6 million, with up to $5 million payable upon achievement of objective criteria set forth in the Consulting Agreement and up to an additional $1 million payable in the Predecessor Board’s discretion, based on qualitative factors. The success fee was earned and Mr. LaChance received, on March 12, 2015, 1,644,737 RSUs based on a price of $3.04 per share (the value weighted average price of EXXI Ltd’s common stock for the period from December 1, 2014 through January 31, 2015), representing the full $5 million portion of the success fee. With respect to the discretionary portion of the success fee, the Predecessor Board awarded Mr. LaChance the full $1 million amount on October 15, 2015. Fifty percent of this amount was paid in cash in October 2015 and the other fifty percent was paid in the form of 231,482 RSUs, based on a price of $2.16 per share, which was the closing price of EXXI Ltd’s common stock on October 15, 2015. All of the outstanding 1,876,219 RSUs were settled in cash for $1,182,018 on March 12, 2016 based on a price of $0.63 per share. On October 9, 2015, the Predecessor Board determined that the positions of Chief Executive Officer and Chairman of the Board should be held by two different individuals. As a result of that determination, the Predecessor Board elected Mr. LaChance to serve as Chairman of the Board, effective as of October 15, 2015, to serve in such capacity until the earlier of his resignation or removal. Mr. LaChance did not receive any compensation for serving as Chairman of the Board, other than pursuant to director compensation programs that were applicable to other non-employee directors. During the years ended June 30, 2015 and 2014 , the Company’s former Chief Executive Officer and President John D. Schiller, Jr. borrowed funds from personal acquaintances or their affiliates , certain of whom provide services to us (“Vendor Loans”). During the six months ended December 31, 2016 certain of those lenders provided services to the Company totaling $3.3 million. During the years ended June 30, 2016, 2015 and 2014, certain of those lenders provided services to the Predecessor Company totaling $35.9 million, $34.7 million and $38.7 million, respectively. During 2014, one of the directors on the Predecessor Board made a personal loan to Mr. Schiller at a time prior to becoming a member of the Predecessor Board but while a managing director at Moun t Kellett Capital Management LP, which at the time owned a majority interest in Energy XXI M21K and 6.3% of EXXI Ltd’s common stock . From time to time, we have entered into arrangements in the ordinary course of business with entities in which Cornelius Dupré II, who was appointed to the Predecessor Board in October 2010, ha d an ownership interest. These entities provide us with oil field services . D uring the six month transition period ended December 31 , 2016 no payments were made and during fiscal year ended June 30, 2016, 2015 and 2014 EXXI Ltd made aggregate payments of approximately $5.6 million , $2.0 million and $0.6 million, respectively to these entities for those services. |
Earnings (Loss) per Share
Earnings (Loss) per Share | 6 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) per Share [Abstract] | |
Earnings (Loss) per Share | Note 1 6 — Earnings (Loss) per Share Basic earnings (loss) per share of common stock is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the year. Except when the effect would be anti-dilutive, the diluted earnings per share include the impact of convertible preferred stock, convertible notes, restricted stock and other potential common stock. The following table sets forth the calculation of basic and diluted earnings (loss) per share (“EPS”) ( in thousands, except per share data ): Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 Net income (loss) $ (406,275) $ 2,653,903 $ (1,918,751) $ (2,433,838) $ 18,125 Preferred stock dividends - - 8,394 11,468 11,489 Net income (loss) attributable to common stockholders $ (406,275) $ 2,653,903 $ (1,927,145) $ (2,445,306) $ 6,636 Weighted average shares outstanding for basic EPS 33,212 98,337 95,822 94,167 74,375 Add dilutive securities - 6,450 - - 70 Weighted average shares outstanding for diluted EPS 33,212 104,787 95,822 94,167 74,445 Earnings (loss) per share Basic $ (12.23) $ 26.99 $ (20.11) $ (25.97) $ 0.09 Diluted $ (12.23) $ 25.33 $ (20.11) $ (25.97) $ 0.09 On December 31, 2016, 2,119,889 shares of potential Successor common stock were excluded from the diluted average shares due to an anti-dilutive effect . F or the years ended June 30, 201 6 , 2015 and 2014 , 9,439,104 , 8,642,434 and 8,336,700 shares of potential common stock, respectively, were excluded from the diluted average shares due to an anti-dilutive effect. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 17 — Commitments and Contingencies Litigation. We are involved in various legal proceedings and claims, which arise in the ordinary course of our business. As described below, most of our pending legal proceedings have been stayed by virtue of filing the Bankruptcy Petitions on April 14, 2016. We do not believe the ultimate resolution of any such actions will have a material effect on our consolidated financial position, results of operations or cash flows. On June 17, 2016, the SEC filed a proof of claim against EXXI Ltd asserting a general unsecured claim in the amount of $3.9 million based on alleged violations of the federal securities laws by EXXI Ltd pertaining to the failure to disclose certain funds borrowed by our former President and CEO John D. Schiller, Jr. from personal acquaintances or their affiliates, certain of whom provided EXXI Ltd and certain of its subsidiaries with services and Mr. Schiller’s pledge of EXXI Ltd stock to a certain financial institution in the second half of 2014. The claim against EXXI Ltd has been classified as a general unsecured claim subject to a cap of approximately $1.4 million, which will be paid by EGC, under the Plan and will be subject to discharge, settlement and release in connection with the Chapter 11 Cases, and will receive the treatment provided to holders of general unsecured claims. The Debtors anticipate that they will object to the SEC’s claim. Lease Commitments. We have non-cancelable operating lease s for office space and other asset s that expire through December 31, 2018 . In addition, on June 30, 2015, we entered into an agreement to assume the operating lease agreement for the Grand Isle Gathering System from our Predecessor as further described below. As of December 31, 2016, future minimum lease commitments under our operating leases are as follows ( in thousands ): Successor Year Ending December 31, 2017 $ 35,956 2018 36,017 2019 36,509 2020 43,545 2021 49,598 Thereafter 200,751 Total $ 402,376 F or the six month transition period ended December 31, 2016 , rent expense, including rent incurred on short-term leases but excluding the GIGS Lease , (defined below), was approximately $ 11.9 million . F or the years ended June 30, 2016, 2015 and 2014 , rent expense, including rent incurred on short-term leases but excluding the GIGS Lease , was approximately $6. 0 million, $ 6.4 million , and $ 3.7 million , respectively. On June 30, 2015, in connection with the closing of the sale of the Grand Isle Gathering System, Energy XXI GIGS Services, LLC, an indirect wholly-owned subsidiary of the Predecessor Company (the “Tenant”), entered into a triple-net lease (the “GIGS Lease”) with Grand Isle Corridor pursuant to which we will continue to operate the Grand Isle Gathering System. The primary term of the GIGS Lease is 11 years from the closing of the sale, with one renewal option, which will be the lesser of nine years or 75% of the expected remaining useful life of the Grand Isle Gathering System. The operating lease utilizes a minimum rent plus a variable rent structure, which is linked to the oil revenues we realize from the Grand Isle Gathering System above a predetermined oil revenue threshold. During the initial term, we will make fixed minimum monthly rental payments, which vary over the term of the lease. The aggregate annual minimum cash monthly payments for the six month transition period ended December 31, 2016 was approximately $17 million, and such payment amounts average $40.5 million per year over the life of the lease. Under the terms of the GIGS Lease, we retain any revenues generated from transporting third party volumes. Under the terms of the GIGS Lease, we control the operation, maintenance, management and regulatory compliance associated with the Grand Isle Gathering System, and we are responsible for, among other matters, maintaining the system in good operating condition, paying all utilities, insuring the assets, repairing the system in the event of any casualty loss, paying property and similar taxes associated with the system, and ensuring compliance with all environmental and other regulatory laws, rules and regulations . The GIGS Lease also imposes certain obligations on Grand Isle Corridor, including confidentiality of information and keeping the Grand Isle Gathering System free of certain liens. In addition, we have, under certain circumstances, a right of first refusal during the term of the GIGS Lease and for two years thereafter to match any proposed transfer by Grand Isle Corridor of its interest as lessor under the GIGS Lease or its interest in the Grand Isle Gathering System. On December 30, 2016, the Tenant, the Company and Grand Isle Corridor entered into an Assignment and Assumption Agreement pursuant to which the Tenant assigned to the Company its right, title, interest, and obligations in and to the purchase and sale agreement relating to the GIGS. Additionally, Reorganized EGC assumed the obligations of EXXI Ltd as guarantor of Tenant’s obligations under the GIGS Lease pursuant to the Assignment and Assumption of Guaranty and Release Agreement, dated December 30, 2016. Under the GIGS Lease, an event of default would have been triggered by the Tenant upon (i) the filing by either the Tenant or EXXI Ltd of a Bankruptcy Petition or (ii) the failure of either the Tenant, EXXI Ltd or now EGC to make any payment of principal or interest with respect to certain material debt of the Tenant, EXXI Ltd, as the former guarantor, or EGC after giving effect to any applicable cure period or the failure to perform under an agreement or instrument relating to such material debt (collectively, the “Specified Defaults”). Although the Tenant did not file a voluntary petition for reorganization under Chapter 11, the Debtors’ filing of the Bankruptcy Petitions and failure to comply with our material debt instruments, would, among other things, have allowed Grand Isle Corridor to terminate the Lease. As a result, the Tenant and Grand Isle Corridor entered into a waiver to the GIGS Lease, dated as of April 13, 2016, whereby Grand Isle Corridor waived its right to exercise its remedies set forth under the GIGS Lease in the event of the Specified Defaults, except its ability to exercise observer rights as detailed in the GIGS Lease. Letters of Credit and Performance Bonds. As of December 31, 2016, we had $388.2 million of performance bonds outstanding and $225 million in letters of credit issued to ExxonMobil relating to assets in the Gulf of Mexico. We are a lessee and operator of oil and natural gas leases on the OCS and our operations on these leases in the Gulf of Mexico are subject to regulation by the BSEE and the BOEM. These leases require compliance with detailed BSEE and BOEM regulations and orders issued pursuant to various federal laws. In particular, compliance with lease requirements includes responsibility for decommissioning obligations such as the cost to plug and abandon wells, decommission and remove platforms and pipelines, and clear the seafloor of obstructions at the end of production, and the BOEM generally requires that lessees post substantial bonds or other acceptable financial assurances that such obligations will be met. In July 2016, the BOEM issued a new NTL that provided more stringent requirements for additional security to satisfy decommissioning obligations and eliminating previous exemptions from the posting of financial assurances. Consequently, as of December 31, 2016, we have submitted approximately $ 226.7 million of our performance bonds in the form of general or supplemental bonds issued to the BOEM that may be accessed and used by the BOEM to assure our commitment to comply with our lease obligations, including decommissioning obligations. We also maintain approximately $161. 4 million in performance bonds issued not to the BOEM but rather to predecessor third party assignors, including certain state regulatory bodies, of certain of the wells and facilities on these leases pursuant to a contractual commitment made by us to those third parties at the time of assignment with respect to the eventual decommissioning of those wells and facilities. In April 2015, we received letters from the BOEM stating that certain of our subsidiaries no longer qualify for exemption from certain supplemental bonding requirements for potential offshore decommissioning obligations and that certain of our subsidiaries must provide approximately $1,000 million in supplemental bonding or other financial assurance for our offshore oil and gas leases, rights-of-way, and rights-of-use and easements. In October 2015, we received information from the BOEM that we could receive additional demands of supplemental bonding or other financial assurance for amounts in addition to the $1,000 million initially sought by the BOEM in April 2015, primarily relating to certain leases in which we have a legal interest that were no longer exempt from supplemental bonding as a result of co-lessees losing their exemptions. Since April 2015, we have had a series of discussions and exchanges of information with the BOEM regarding our submittal of additional supplemental bonding or other financial assurance with respect to offshore oil and gas interests that has resulted in, among other things: (i) our submittal of $150 million and $21.1 million in supplemental bonds to the BOEM in June 2015 and December 2015, respectively (which bond amoun ts are reflected in the $226.6 million in general and/or supplemental bonds discussed above); (ii) our selling of the East Bay field on June 30, 2015 that served to reduce by $178 million the $1 ,00 0 m illion of supplemental bonding or other financial assurance required by the BOEM in April 2015; and (iii) the BOEM’s agreement to, and execution of, a long-term financial assurance plan (the “Long-Term Plan”) on February 25, 2016 that is intended to address the supplemental bonding and other financial assurance concerns expressed to us by the BOEM in April and October 2015. Pursuant to the conditions of the Long-Term Plan, we have submitted supplemental bonds to the BOEM for our sole liability properties addressed under the Long-Term Plan; however, the BOEM increased the financial assurance amount for one of those sole liability properties subsequent to execution of the Long Term Plan and, thus, on June 28, 2016, we submitted the Proposed Plan Amendment that would revised the Long-Term Plan and reflect such increase, and we are awaiting the BOEM’s further response on the Proposed Plan Amendment. We submitted a Proposed Plan Amendment on June 28, 2016 that would revised the executed Long-Term Plan. We are currently awaiting the BOEM’s further response on the Proposed Plan Amendment. Consistent with the BOEM’s issuance of the new NTL in July 2016 relating to the need for additional security to satisfy decommissioning obligations and its subsequent issuance of the January 2017 Extension, however, the BOEM’s current focus is on sole liability properties. Consequently, the BOEM issued us the January 5, 2017 Ordering Letter, directing us to provide BOEM with additional security for certain sole liability properties in the OCS that are held or operated by us in the OCS and specified in the letter within 60 calendar days of receipt of the letter. The amount of additional security required of us under the January 5, 2017 Ordering Letter is approximately $5.1 million. On January 26, 2017, the Company submitted to the BOEM its January 2017 Proposed Plan Amendment that would satisfy the January 5, 2017 Ordering Letter for approximately $5.1 million in additional sole liability property coverage while reserving the Company’s right to dispute the decommissioning liability amount calculated by the BSEE. Consequently, while we have submitted or plan to submit additional supplemental bonds to the BOEM for our sole liability properties addressed under the Long-Term Plan, and are awaiting the BOEM’s response on the Proposed Plan Amendment and the January 2017 Proposed Plan Amendment, we have not yet been directed by the BOEM to submit financial assurance for our sole and non-sole liability properties (that is, our offshore OCS properties that are not sole liability properties) addressed under the Long-Term Plan. In a recent development, however, the BOEM publicly announced on February 17, 2017 that it will withdraw sole liability orders previously issued to OCS lease and grant holders in December 2016 and January 2017 to allow time for the new Presidential Administration to review the BOEM’s current financial assurance program, as modified in 2016 by NTL 2016-N01. Whether, and to what extent, orders for non-sole liability properties will be re-issued by the BOEM will be re-evaluated in conjunction with the evaluation currently underway for OCS non-sole liability properties ordered by the BOEM as part of the six-month extension granted by the BOEM in January 2017. The BOEM may elect to re-issue its sole liability orders before the end of the six-month extended period established for the non-sole liability properties if the agency determines there is a substantial risk of nonperformance of the interest holder’s decommissioning liabilities. Due to the BOEM’s recent retractions in the first two months of 2017 relating to the provision of financial assurance for OCS decommissioning obligations, we are currently uncertain as to the timing and amount of coverage that will be required by the BOEM pursuant to its OCS financial assurance program. However, based on currently understood parameters as reflected in the Long-Term Plan and the Proposed Plan Amendment, we currently expect to ultimately address the financial coverage of our sole liability and non-sole liability properties in accordance with the Long-Term Plan and consistent with evolving guidelines under the September 2016 NTL, but we cannot provide any assurance at this time on when such financial coverage for our non-sole liability properties will be directed to be submitted by the BOEM or on how we plan to structure and fund such coverages. On April 26, 2016, pursuant to the redetermination of our plugging and abandonment liabilities with ExxonMobil, it was agreed that subsequent to the Predecessor Company’s emergence from the Chapter 11 proceedings, the letters of credit issued in favor ExxonMobil would be reduced to $200 million from the existing amount of $225 million and currently documents are being formalized to effect such reduction. Notwithstanding the BOEM’s July 2016 NTL, the BOEM may also bolster its financial assurance requirements mandated by rule for all companies operating in federal waters. The future cost of compliance with our existing supplemental bonding requirements, including the obligations imposed upon us under the Long-Term Plan, as it may be revised by the Proposed Plan Amendment, the July 2016 NTL, any other future BOEM directives, or any other changes to the BOEM’s rules applicable to us or our subsidiaries’ properties could materially and adversely affect our financial condition, cash flows, and results of operations. In addition, although we have $49.6 million in cash collateral provided to surety companies associated with the bonding requirements of the BOEM and third party assignors as of December 31, 2016, we may be required to provide additional cash collateral in the future to support the issuance of such bonds or other financial security. If we are unable to obtain the additional required bonds or assurances as requested, the BOEM may have any of our operations on federal leases to be suspended or cancelled or otherwise impose monetary penalties and one or more of such actions could have a material effect on our business, prospects, results of operations, financial condition, and liquidity. Other. We maintain restricted escrow funds as required by certain contractual arrangements. At December 31 , 2016, our restricted cash included $25.6 million in cash collateral associated with our bonding requirements, approximately $26.0 million in a financial institution to be used for paying restructuring expenses in accordance with the Plan and approximately $6.0 million in a trust for future plugging, abandonment and other decommissioning costs related to the East Bay field which will be transferred to the buyer of our interest in that field. We and our oil and gas joint interest owners are subject to periodic audits of the joint interest accounts for leases in which we participate and/or operate. As a result of these joint interest audits, amounts payable or receivable by us for costs incurred or revenue distributed by the operator or by us on a lease may be adjusted, resulting in adjustments to our net costs or revenues and the related cash flows. When they occur, these adjustments are recorded in the current period, which generally is one or more years after the related cost or revenue was incurred or recognized by the joint account. We do not believe any such adjustments will be material. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 18 — Income Taxes Successor Income Taxes On the Emergence Date, as described in Note 3 – Chapter 11 Proceedings , the Company and the Predecessor engaged in several internal restructuring transactions that: (i) assigned all of Predecessor’s assets (directly or indirectly) to EGC, and (ii) separated EXXI Ltd, Energy XXI (US Holdings) Limited (Bermuda), Energy XXI, Inc., and Energy XXI USA from EGC. This had the effect, among other things, of isolating the original parent-level equity ownership and certain intercompany loans (the “Intercompany Loans”) from EGC. Then, pursuant to the Plan, the EGC Unsecured Notes, EPL 8.25% Senior Notes, Prepetition Revolving Credit Facility and other obligations were extinguished. Absent an exception, a debtor recognizes CODI upon discharge of its outstanding indebtedness for an amount of consideration that is less than its adjusted issue price. The Tax Code provides that a debtor in a bankruptcy case (such as the Chapter 11 Cases) may exclude CODI from taxable income but must reduce certain of its tax attributes by the amount of any CODI realized as a result of the Plan. The amount of CODI realized by a taxpayer is the adjusted issue price of any indebtedness discharged less the sum of (i) the amount of cash paid, (ii) the issue price of any new indebtedness issued and (iii) the fair market value of any other consideration, including equity, issued. As a result of the market value of equity upon emergence from the Chapter 11 Cases, the amount of CODI realized was approximately $2,600 million , which reduced the Company’s U.S. NOL carryovers of $486 million to zero , and further reduced the Company’s tax basis in producing properties (subject to future recovery through tax DD&A deductions) and its investment in the stock of EPL by $2,1 37 million. This reduction in tax attributes occurred on the first day of the Company’s first tax year subsequent to the Emergence Date, as one effect of the Plan was to terminate the Predecessor’s fiscal income tax reporting period on the Emergence Date. Tax Code Sections 382 and 383 provide an annual limitation with respect to the ability of a corporation to utilize its tax attributes, including as the tax basis in certain assets (net unrealized built-in-losses, or “NUBILs”), against future U.S. taxable income in the event of a change in ownership. The Company’s emergence from the Chapter 11 Cases was considered a change in ownership for purposes of Tax Code Section 382. The limitation under the Tax Code is based on the value of the loss corporation as of the Emergence Date. However, this and prior ownership changes and resulting annual limitation will have limited, if any, effect on the Company’s NOLs since all of the NOLs were extinguished by the Tax Attribute Reduction Rules. There is the possibility of deferral of recognition of certain portions of tax DD&A by the Tax Attribute Reduction Rules that would affect the timing of offsetting future taxable income, but would not affect income tax expense. The remaining tax bases of our oil and natural gas properties are less than their respective book carrying values as determined in fresh-start accounting such that we have recorded a deferred tax liability for those properties. We have recorded a deferred tax asset for the asset retirement obligation (which has no tax basis and will be tax deductible or result in additional tax basis in assets when settled) and other items that exceed the deferred tax liability for oil and natural gas properties. As such, we have recorded a valuation allowance of $174.5 million at December 31, 2016, which results in no net deferred tax asset or liability appearing on our statement of financial position. We recorded this valuation allowance at this date after an evaluation of all available evidence (including our recent history of Predecessor losses) that led to a conclusion that based upon the more-likely-than-not standard of the accounting literature, these deferred tax assets were unrecoverable. As a result of the fresh start accounting, virtually all historic deferred tax assets and liabilities were eliminated, including the accrued outbound 30% withholding tax on the intercompany loans from the Predecessor’s Bermuda parent, as these obligations were extinguished in the Plan are not obligations of the Successor entities. With the NOL carryover being reduced by the Tax Attribute Reduction Rules, the principal deferred tax assets and liabilities of the Successor after fresh-start accounting relate to our oil and gas properties. Additionally, the Successor Company is changing its U.S. federal and state tax years to December 31, consistent with its financial reporting year end, with calendar 2017 being its first tax year post-discharge. Predecessor Income Taxes The Predecessor Company was a Ber m ud a c o m p a n y a n d was g e n eral l y no t sub j ect to i n c o m e tax in Ber m ud a. It historically op e rated through its var i ous s ubs i d iaries in t h e Un i ted States, and, ac c o r di n g l y , U.S. i n com e taxes were pr ov i ded bas e d u po n those U . S. operations and U.S. withholding tax on interest owed to its Bermuda parent on intercompany indebtedness. Pursuant to the Restructuring Support Agreement discussed in Note 3– “Chapter 11 Proceedings, Liquidity and Capital Resources,” the Predecessor filed bankruptcy and dissolution petitions in the United States and Bermuda, respectively, on the Petition Date. These filings generally had no immediate effect on the Predecessor’s income tax year or income tax reporting requirements. The Predecessor’s Bermuda c o m p a n ies recorded income tax expense reflecting 30% U.S. wit h hold i n g t a x on a n y interest ( a nd int e rest equ i valents) accrued on indebtedness of the U.S. co m p anies held by them through the Petition Date. During the year ended June 30, 2016 , and for the six-month period ended December 30, 2016, no cash withholding tax payments were made on interest expense or management fees accrued to the Bermuda entities. The Predecessor recorded the 30% withholding tax as a separate line item which is offset by other U.S. federal deferred tax assets in the consolidated financial statements to arrive at the zero-net deferred tax asset/liability amounts presented. This accrued income tax liability related to withholding on interest expense due to the Bermuda parent was not a current liability due nor was listed as a pre-petition tax liability in the bankruptcy petition filed on the Petition Date. During the year ended June 30, 2015, $0.9 million cash was paid in U.S. withholding taxes as a result of payments of interest on indebtedness and management fees to the Bermuda entities. These withholding taxes are presented as separate line items in the effective tax rate reconciliation and payments expected in the coming fiscal year are presented as an accrued federal withholding obligation in the deferred tax liability section of the table below. In light of the valuation allowance, there is no net deferred tax asset or deferred tax liability presented on the consolidated balance sheets. The Predecessor historically paid no significant U.S. cash income taxes (exclusive of withholding tax on Bermuda interest expense discussed above) due to the election to expense intangible drilling costs and the presence of the NOL carryforwards. Section 61(a)(12) of the Tax Code generally provides, in pertinent part, CODI is treated as ordinary income subject to current taxation. The Predecessor completed several purchases of indebtedness during the year ended June 30, 2016 at less than the issued amount of the indebtedness, which constitutes CODI. The U.S. Alternative Minimum Tax (“AMT”) only allows offset of 90% of AMT income by NOL carryforwards (with certain limited exceptions for 2009 and 2010 generated NOL’s), with the balance of income being taxed at 20%. Tax Code section 108(a)(1) provides that CODI may be excluded from taxable income of a debtor if the discharge occurred: (i) while the debtor was subject to a Title 11 (or similar) proceeding (such as a Chapter 11 filing), or (ii) while insolvent. The significance of exclusion treatment is that an NOL carryforward is not required to shield excluded CODI. If NOL’s were used to offset CODI (or other taxable income), the Predecessor would have been subject to a current cash AMT payment due to the 90% limitation in NOL usage against this tax. Management believes, more likely than not, that prior to the bankruptcy filing, the Predecessor was, for income tax purposes, insolvent as defined in Tax Code section 108(a)(1)(B) at the times of significant indebtedness repurchases and thus the exclusion applies to significant indebtedness repurchases that constitute CODI. As such, no cash AMT payments were made during the year ended June 30, 2016, or the six-month period ended December 31, 2016. In accordance with Tax Code Section 382, certain transfers of Predecessor equity, or issuances of equity in connection with the restructuring, could have impaired the ability to utilize NOL carryforwards and the tax basis of property to offset future taxable income. A corporation is generally permitted to deduct from taxable income (or offset resulting income tax, in the case of credits) in any year NOL’s carried forward from prior years as well as certain DD&A cost recovery deductions relating to the recovery of its tax basis in properties post-discharge. There was an ownership change on June 20, 2008, and a second ownership change on November 3, 2010. EPL similarly experienced an ownership change in 2009 and upon its acquisition in 2014. However, in light of the reduction of NOL carryforwards as a result of the Tax Attribute Reduction Rules, no Tax Code section 382 ownership change resulted in a limitation or loss of NOLs of the Predecessor. Under Louisiana law, companies are required to file tax returns on a separate company basis; as such, EPL and EGC did not file a combined nor consolidated Louisiana income tax return. The v a l u ation allowa n ce of $ 23.8 m illi o n at June 30, 2014 related to EXXI Ltd’s separate company Lo u i sia n a NOL carryfo rwards t h at management did n o t b elie v e, on a m o re l ikel y -tha n - n o t basis, would be realized in future years due t o the f o c u s on o f fsh o re o p eratio n s . During fiscal year 2015, there were two changes in judgement affecting the amount of the valuation allowance. In the third quarter of fiscal year 2015, an intercompany transaction related to the sale of the GIGS generated current year Louisiana-only taxable income during fiscal year 2015 resulting in the release of $1.8 million of the previously recorded Louisiana valuation allowance. Subsequently, changes in expectations regarding future taxable income, consistent with net losses recorded during the current fiscal year (that are heavily influenced by oil and gas property impairments), caused management to record a net increase in the valuation allowance of $356.8 million resulting in a balance of $379.3 million at June 30, 2015. Due to continuing losses, management recorded an additional valuation allowance of $650 million resulting in a balance of $1,029.3 at June 30, 2016. This increase to the valuation allowance against net deferred tax assets due to management’s judgment that the existing U.S. federal and State of Louisiana NOL carryforwards are not, on a more-likely-than-not basis, likely recoverable in future years. Management evaluated the need for the valuation allowance based on current and expected earnings and other factors, and adjusted it accordingly. No additional Louisiana tax attributes were recorded and no adjustment to the Louisiana valuation allowance was made in the six months ended December 31, 2016. Our income (loss) before income taxes attributable to U.S. and non-U.S. operations are as follows ( in thousands ): Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 U.S. income (loss) $ (406,275) $ 2,656,509 $ (1,913,718) $ (3,050,659) $ 43,915 Non-U.S. income (loss) - (2,606) (5,120) 3,471 9,230 Income (loss) before income taxes $ (406,275) $ 2,653,903 $ (1,918,838) $ (3,047,188) $ 53,145 The components of our income tax expense (benefit) are as follows ( in thousands ): Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 Current U.S. $ - $ - $ - $ 933 $ 3,641 Non U.S. - - - - - State - - (87) 99 - Total current - - (87) 1,032 3,641 Deferred U.S. - - - (564,569) 31,379 State - - - (49,813) - Total deferred - - - (614,382) 31,379 Total income tax expense (benefit) $ - $ - $ (87) $ (613,350) $ 35,020 The following is a reconciliation of statutory income tax expense to our income tax provision (benefit) ( in thousands ): Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 Income (loss) before income taxes $ (406,275) $ 2,653,903 $ (1,918,838) $ (3,047,188) $ 53,145 Statutory rate 35% 35% 35% 35% 35% Income tax expense (benefit) computed at statutory rate (142,196) 928,866 (671,593) (1,066,516) 18,601 Reconciling items Federal withholding obligation - - 8,161 10,331 10,343 Nontaxable foreign income - - 1,791 91 (2,133) Change in valuation allowance 142,196 (1,029,335) 650,043 356,798 - State income taxes (benefit), net of federal tax benefit - - (87) (32,314) - Non-deductible executive compensation - - - - 2,725 Non-deductible transaction and restructuring costs - 31,699 - 440 1,853 Tax basis in shortfall on partnership dissolution - - 6,501 - - Fresh start adjustments to deferred tax balances: Asset retirement obligation - 190,923 - - - Net operating loss - 163,027 - - - Accrued interest expense - 115,560 - - - Oil and natural gas properties and other property and equipment - 615,146 - - - Deferred state income taxes - 54,793 - - - Withholding taxes - (81,635) - - - Cancellation of stockholders deficit - (290,665) - - - Cancellation of indebtedness income - (702,972) - - - Other fresh start deferred income taxes, net - 3,788 - - - Goodwill impairment - - - 115,253 - Other – Net - 805 5,097 2,567 3,631 Income tax expense (benefit) $ - $ - $ (87) $ (613,350) $ 35,020 For the six-month period ended December 3 1 , 2016, we recorded no income tax expense or benefit. We incurred an additional net operating loss during this period that was reduced by non-deductible restructuring costs, consistent with prior periods. We additionally recognized significant CODI however; this CODI was excluded from taxation since it was incurred pursuant to the Chapter 11 Cases. We could not record an additional deferred tax asset for this net operating loss carryforward because it was completely eliminated by the Tax Attribute Reduction Rules. The most significant difference in the effective tax rate for the Predecessor’s year ended June 30, 2016 that differs from prior year’s activity (apart from changes in the valuation allowance) relates to the non-deductibility of certain bankruptcy restructuring related expenses. Deferred income taxes primarily represent the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In fresh start accounting, but prior to recording the property impairment, a net deferred tax asset was recorded by the company of $32.2 million. This amount was increased by $142.2 million to reflect the additional deferred tax asset created by the property impairment for which the company recorded an additional valuation allowance of an equal amount. The components of deferred taxes are detailed in the table below ( in thousands ): Successor Predecessor On December 31, June 30, 2016 2016 2015 Deferred tax assets – non current Oil, natural gas properties and other property and equipment $ - $ 646,294 $ - Asset retirement obligation 263,677 190,923 170,480 Tax loss carryforwards on U.S. operations - 99,612 458,530 Accrued interest expense - 115,560 106,039 Deferred state taxes - 54,793 54,973 Derivative instruments and other - - 4,879 Other 11,830 23,056 14,851 Total deferred tax assets – non current 275,507 1,130,238 809,752 Deferred tax liabilities Oil, natural gas properties and other property and equipment (101,045) - (272,502) Federal withholding obligation - (81,635) (73,474) Cancellation of debt - (9,680) (9,680) Employee benefit plans - (9,588) (9,588) Dismantlement - - (9,086) Tax partnership activity - - (56,130) Total deferred tax liabilities – non current (101,045) (100,903) (430,460) Valuation allowance (174,462) (1,029,335) (379,292) Net deferred tax asset (liability) $ - $ - $ - At June 30, 2016, the Predecessor had a U.S. federal NOL carryforward of approximately $285 million, and a state NOL carryforward of approximately $800 million, including amounts carried into the Predecessor’s U.S. group from the EPL acquisition. At December 30, 2016, immediately prior to the Emergence Date, the Predecessor had US federal NOL carryforwards of $586 million. The regular U.S. federal income tax NOL’s would have expired in various amounts beginning in 2026 and ending in 2035. The reason for the decrease in the NOL carryforward at December 31, 2016 and June 30, 2016 is due to the required reduction in the tax attribute from excluding CODI from debt repurchases while insolvent and Bankruptcy Court cancellation of indebtedness pursuant to the Plan. No CODI was recognized in the six-month period prior to the Emergence Date until the effective time of the Plan; as such, there was no adjustment to the NOL carryover or other tax attribute from CODI exclusion during this period. The Predecessor did not record any reserves for uncertain tax positions. At June 30, 2016, the Predecessor had a gross unrecorded noncurrent deferred tax asset of $13.2 million representing a percentage depletion carryover resulting from the EPL acquisition, which was unchanged at December 30, 2016, prior to the effective time of the Plan. The Predecessor filed initial tax returns for the tax year ended June 30, 2006 as well as the returns for the tax years ended June 30, 2007 through 2015. The statute of limitations for examination of NOL’s and other similar attribute carryforwards does not begin to run until the year the attribute is utilized. In some instances, state statutes of limitations are longer than those under U.S. federal tax law. On January 12, 2015, the U.S. Internal Revenue Service formally notified management that they had completed their examination of the U.S. federal income tax return for the year ended June 30, 2013, and that no changes were proposed to the tax reported (zero) or any tax attribute carried forward. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 6 Months Ended |
Dec. 31, 2016 | |
Concentration of Credit Risk [Abstract] | |
Concentrations of Credit Risk | Note 19 — Concentrations of Credit Risk Major Customers . We market substantially all of our oil and natural gas production from the properties we operate. We also market more than half of our oil and natural gas production from the fields we do not operate. The majority of our operated natural gas, oil and condensate production is sold to a variety of purchasers under short-term (less than 12 months) contracts at market-based prices. Trafigura Trading, LLC (“Trafigura”), Chevron USA (“Chevron”) and Shell Trading Company (“Shell”) accounted for approximately 27% , 26% , and 26% , respectively, of our total oil and natural gas revenues during the six months ended December 31, 2016. Trafigura accounted for approximately 22% of our total oil and natural gas revenues during the year ended June 30, 2016. Chevron accounted for approximately 22% and 24% of our total oil and natural gas revenues during the years ended June 30, 2016 and 2015, respectively. Shell accounted for approximately 21% , 29% , and 45% of our total oil and natural gas revenues during the years ended June 30, 2016, 2015 and 2014, respectively. ExxonMobil Corporation (“ExxonMobi l”) accounted for approximately 26% , and 43% of our total oil and natural gas revenues duri ng the years ended June 30, 2015 and 2014 , respectively. We also sell our production to a number of other customers, and we believe that those customers, along with other purchasers of oil and natural gas, would purchase all or substantially all of our production in the event that Trafigura, Chevron or Shell curtailed their purchases. Accounts Receivable . Substantially all of our accounts receivable result from oil and natural gas sales and joint interest billings to third parties in the oil and natural gas industry. This concentration of customers and joint interest owners may impact our overall credit risk in that these entities may be similarly affected by changes in economic and other conditions. Derivative Instruments . Derivative instruments also expose us to credit risk in the event of nonperformance by counterparties. Generally, these contracts are with major investment grade financial institutions and other substantive counterparties. At December 31, 2016 and June 30, 2016, we had no derivative instruments outstanding. Cash and Cash Equivalents . We are subject to concentrations of credit risk with respect to our cash and cash equivalents, which we attempt to minimize by maintaining our cash and cash equivalents with major high credit quality financial institutions. At times cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation. Geographic Concentration. Virtually all of our current operations and proved reserves are concentrated in the Gulf of Mexico region. Therefore, we are exposed to operational, regulatory and other risks associated with the Gulf of Mexico, including the risk of adverse weather conditions. We maintain insurance coverage against some, but not all, of the operating risks to which our business is exposed. |
Fair Value
Fair Value | 6 Months Ended |
Dec. 31, 2016 | |
Fair Value [Abstract] | |
Fair Value | Note 20 — Fair Value Certain assets and liabilities are measured at fair value on a recurring basis in our consolidated balance sheets. Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of these techniques requires significant judgment and is primarily dependent upon the characteristics of the asset or liability, the principal (or most advantageous) market in which participants would transact for the asset or liability and the quality and availability of inputs. Inputs to valuation techniques are classified as either observable or unobservable within the following hierarchy: · Level 1 – quoted prices in active markets for identical assets or liabilities. · Level 2 – inputs other than quoted prices that are observable for an asset or liability. These include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). · Level 3 – unobservable inputs that reflect our own expectations about the assumptions that market participants would use in measuring the fair value of an asset or liability. For cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities and certain notes payable, the carrying amounts approximate fair value due to the short-term nature or maturity of the instruments. For the Second Lien Notes, 9.25% Senior Notes, 8.25% Senior Notes, 7.75% Senior Notes, 7.5% Senior Notes, 6.875% Senior Notes and 3.0% Senior Convertible Notes prior to their cancellation, the fair value was estimated based on quoted prices in a market that was not an active market, which are Level 2 inputs within the fair value hierarchy. The carrying value of the Exit Facility approximates its fair value because the interest rate is variable and reflective of market rates, which are Level 2 inputs within the fair value hierarchy. Upon adoption of fresh start accounting, the non-recurring fair value adjustment related to our property and equipment, asset retirement obligation and common stock warrants was $1,007.4 million, $185.6 million and $8.1 million, respectively using Level 3 inputs within the fair value hierarchy. See Note 4 – “Fresh Start Accounting . ” Our commodity derivative instruments historically consisted of financially settled crude oil and natural gas puts, swaps, put spreads, zero-cost collars and three way collars. We estimated the fair values of these instruments based on published forward commodity price curves, market volatility and contract terms as of the date of the estimate. The discount rate used in the discounted cash flow projections is based on published LIBOR rates. The fair values of commodity derivative instruments in an asset position include a measure of counterparty nonperformance risk, and the fair values of commodity derivative instruments in a liability position include a measure of our own nonperformance risk, each based on the current published issuer-weighted corporate default rates. See Note 11 – “Derivative Financial Instruments . ” The fair values of our stock based units are based on the period-end stock price for our Restricted Stock Units and Time-Based Performance Units and the results of the Monte Carlo simulation model are used for our TSR Performance-Based Units. The Monte Carlo simulation model uses inputs relating to stock price, unit value expected volatility and expected rate of return. A change in any input can have a significant effect on the valuation of the TSR Performance-Based Units. During the six months ended December 31, 2016 and the year ended June 30, 2016, we did not have any transfers from or to Level 3. The following table presents the fair value of our Level 1 and Level 2 financial instruments ( in thousands ): Predecessor Level 1 Level 2 As of June 30, As of June 30, As of June 30, As of June 30, 2016 2015 2016 2015 Assets: Oil and natural gas derivatives $ - $ - $ - $ 63,004 Liabilities: Oil and natural gas derivatives $ - $ - $ - $ 40,896 Restricted stock units 87 6,325 - - Time-based performance units 988 1,978 - - Total liabilities $ 1,075 $ 8,303 $ - $ 40,896 The following table sets forth the carrying values and estimated fair values of our long-term debt instruments which are classified as Level 2 financial instruments ( in thousands ): Successor Predecessor December 31, 2016 June 30, 2016 June 30, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Prepetition Revolving Credit Facility (1) $ - $ - $ 99,836 $ 99,836 $ 150,000 $ 150,000 Exit Facility 73,996 73,996 - - - - 11.0% Senior Secured Second Lien Notes due 2020 (1) - - 1,450,000 587,250 1,398,896 1,276,000 8.25% Senior Notes due 2018 (1) - - 213,677 28,633 539,459 306,000 6.875% Senior Notes due 2024 (1) - - 143,993 16,559 650,000 211,250 3.0% Senior Convertible Notes due 2018 (1) - - 363,018 1,472 354,218 94,000 7.5% Senior Notes due 2021 (1) - - 238,071 25,807 500,000 164,925 7.75% Senior Notes due 2019 (1) - - 101,077 9,875 250,000 92,135 9.25% Senior Notes due 2017 (1) - - 249,452 25,943 750,000 413,160 Total $ 73,996 $ 73,996 $ 2,859,124 $ 795,375 $ 4,592,573 $ 2,707,470 ( 1 ) In accordance with the Plan, on the Emergence Date, all outstanding obligations under these notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled . The following table sets forth our Level 3 financial instruments ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 Liabilities: Performance-based performance units Balance at beginning of period $ - $ 33 $ 6,910 Vested - (775) - Grants charged to general and administrative expense - 760 (6,877) Balance at end of period $ - $ 18 $ 33 |
Prepayments and Accrued Liabili
Prepayments and Accrued Liabilities | 6 Months Ended |
Dec. 31, 2016 | |
Prepayments and Accrued Liabilities [Abstract] | |
Prepayments and Accrued Liabilities | Note 21 — Prepayments and Accrued Liabilities Prepayments and accrued liabilities consist of the following ( in thousands ): Successor Predecessor December 31, June 30, 2016 2016 2015 Prepaid expenses and other current assets Advances to joint interest partners $ 650 $ 974 $ 1,294 Insurance 9,600 13,726 3,427 Inventory 470 423 7,867 Royalty deposit 1,273 2,168 3,137 Debt issuance costs - 2,571 - Other 13,964 9,166 8,573 Total prepaid expenses and other current assets $ 25,957 $ 29,028 $ 24,298 Accrued liabilities Advances from joint interest partners 374 - 3,060 Employee benefits and payroll 4,491 7,377 18,927 Interest payable 233 - 83,384 Accrued hedge payable - - 1,399 Undistributed oil and gas proceeds 22,715 12,611 19,776 Severance taxes payable 628 619 843 Escrowed reorganization expenses 25,987 - - Other 9,232 19,821 27,917 Total accrued liabilities $ 63,660 $ 40,428 $ 155,306 |
Comparative Period Information
Comparative Period Information | 6 Months Ended |
Dec. 31, 2016 | |
Comparative Period Information [Abstract] | |
Comparative Period Information | Note 22 — Comparative Period Information The following tables present certain transition and comparative period financial information for the six month period ended December 31, 2016 and 2015, respectively. Predecessor Six Months Ended December 31, 2016 (1) 2015 (2) (Unaudited) (In thousands) Total Revenues $ 295,676 $ 442,438 Operating loss (82,029) (2,431,348) Income (loss) before income taxes 2,653,903 (1,883,924) Income tax expense (benefit) - 51 Net Income (loss) $ 2,653,903 $ (1,883,975) Preferred stock dividends - 5,664 Net Income (Loss) Attributable to Common Stockholders $ 2,653,903 $ (1,889,639) Earnings (Loss) per Share Basic $ 26.99 $ (19.91) Diluted $ 25.33 $ (19.91) Weighted Average Number of Common Shares Outstanding Basic 98,337 94,926 Diluted 104,787 94,926 Predecessor Six Months Ended December 31, 2016 2015 (Unaudited) (In thousands) Net cash used in operating activities $ (17,473) $ (89,924) Net cash provided by (used in) investing activities 11,706 (82,872) Net cash used in financing activities (32,123) (258,162) Net decrease in cash and cash equivalents $ (37,890) $ (430,958) _________________ (1) Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,0 08.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. (2) Included in Operating income (loss) is impairment of oil and natural gas properties of $2,330.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $748.6 million. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 6 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | Note 23 — Selected Quarterly Financial Data – Unaudited Unaudited quarterly financial data are as follows ( in thousands, except per share amounts ): Predecessor Quarter Ended December 31, (7) September 30, (6) June 30, (2) March 31, (3) December 31, (4) September 30, (5) 2016 2016 2016 2016 2015 2015 Revenues $ 153,065 $ 142,611 $ 147,804 $ 116,285 $ 184,615 $ 257,823 Operating income (loss) 11,708 (93,737) (168,211) (417,866) (1,513,148) (918,200) Net income (loss) $ 2,785,049 $ (131,146) $ (195,552) $ 160,776 $ (1,310,583) $ (573,392) Preferred stock dividends - - 352 2,378 2,810 2,854 Net income (loss) attributable to common stockholders $ 2,785,049 $ (131,146) $ (195,904) $ 158,398 $ (1,313,393) $ (576,246) Net income (loss) per share attributable to common stockholders (1) Basic $ 28.17 $ (1.34) $ (2.01) $ 1.65 $ (13.81) $ (6.08) Diluted 26.58 (1.34) (2.01) 1.55 (13.81) (6.08) _______________________ (1) The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter. (2) Included in Operating income (loss) is impairment of oil and natural gas properties of $1 42.6 million. (3) Included in Operating income (loss) is impairment of oil and natural gas properties of $340.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $777.0 million. (4) Included in Operating income (loss) is impairment of oil and natural gas properties of $1,425.8 million and also included in Net income (loss) is gain on early extinguishment of debt of $290.3 million. (5) Included in Operating income (loss) is impairment of oil and natural gas properties of $904.7 million and also included in Net income (loss) is gain on early extinguishment of debt of $458.3 million. (6) Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million. (7) Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $ 2,0 08.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. Predecessor Quarter Ended June 30, (2) March 31, (3) December 31, (4) September 30, 2015 2015 2014 2014 Revenues $ 219,460 $ 221,580 $ 502,971 $ 461,441 Operating income (loss) (1,952,080) (698,583) (168,420) 108,192 Net income (loss) $ (1,690,004) $ (495,061) $ (275,963) $ 27,190 Preferred stock dividends 2,864 2,862 2,870 2,872 Net income (loss) attributable to common stockholders $ (1,692,868) $ (497,923) $ (278,833) $ 24,318 Net income (loss) per share attributable to common stockholders (1) Basic $ (17.92) $ (5.27) $ (2.97) $ 0.26 Diluted (17.92) (5.27) (2.97) 0.24 _______________________ (1) The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter. (2) Included in Operating income (loss) is impairment of oil and natural gas properties of $1,852.3 million. (3) Included in Operating income (loss) is impairment of oil and natural gas properties of $569.6 million. (4) Included in Operating income (loss) is goodwill impairment of $329.3 million. |
Supplementary Oil and Gas Infor
Supplementary Oil and Gas Information | 6 Months Ended |
Dec. 31, 2016 | |
Supplementary Oil and Gas Information [Abstract] | |
Supplementary Oil and Gas Information | Note 24 – Supplementary Oil and Gas Information – Unaudited The supplementary data presented reflects information for all of our oil and natural gas producing activities. Costs incurred for oil and natural gas property acquisition, exploration and development activities are as follows ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Property acquisitions Proved $ 1,500 $ 26,400 $ - $ 2,046,879 Unevaluated - - 2,304 924,882 Exploration costs - 1,400 38,183 153,136 Development costs 22,300 57,400 608,605 632,262 Oil and natural gas property costs excluded from the amortization base represent investments in unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. We exclude these costs until the property has been evaluated. We also allocate a portion of our acquisition costs to unevaluated properties based on fair value. Costs associated with unevaluated properties are transferred to evaluated properties upon the earlier of (i) a determination as to whether there are any proved reserves related to the properties or the costs are impaired , or (ii) ratably over a period of time of not more than four years. As of December 31, 2015, we identified certain of our unevaluated properties totaling to $336.5 million as being uneconomical and transferred such amounts to the full cost pool, subject to amortization . However, following emergence from bankruptcy and in accordance with fresh start accounting, the Company, based on the renewed ability to fund development drilling, recorded proved undeveloped reserves of 36.5 MMBOE at December 31, 2016. Future development costs associated with our proved undeveloped reserves at December 31, 2016 totaled approximately $443.2 million. Estimated Net Quantities of Oil and Natural Gas Reserves The following estimates of the net proved oil and natural gas reserves of our oil and gas properties located entirely within the U.S. are based on evaluations prepared by our reservoir engineers as of December 31, 2016 and audited by a third party reservoir engineering firm as of June 30, 2016, 2015, and 2014 . Reserve volumes and values were determined under the method prescribed by the SEC, which requires the application of the 12 -month average price for natural gas and oil calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month prior period to the end of the reporting period and current costs held constant throughout the projected reserve life. Reserve estimates are inherently imprecise and estimates of new discoveries are more imprecise that those of producing oil and gas properties. Accordingly, reserve estimates are expected to change as additional performance data becomes available. Estimated quantities of proved domestic oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves in thousands of barrels (“MBbls”) and millions of cubic feet (“MMcf”) for each of the periods indicated were as follows: Oil Natural Gas Total (MBbls) (MMcf) (MBOE) Proved reserves at June 30, 2013 (Predecessor) 133,647 269,121 178,500 Production (10,978) (32,754) (16,437) Extensions and discoveries 17,141 19,703 20,424 Revisions of previous estimates (3,567) (29,822) (8,537) Sales of reserves (4,159) (3,378) (4,722) Purchases of reserves 53,305 141,986 76,970 Proved reserves at June 30, 2014 (Predecessor) 185,389 364,856 246,198 Production (15,259) (37,472) (21,504) Extensions and discoveries 10,573 40,330 17,295 Revisions of previous estimates (33,730) (75,617) (46,333) Sales of reserves (9,901) (13,554) (12,160) Proved reserves at June 30, 2015 (Predecessor) 137,072 278,543 183,496 Production (13,547) (33,973) (19,209) Extensions and discoveries 1,416 1,729 1,704 Revisions of previous estimates (64,584) (158,681) (91,031) Purchases of reserves 6,016 33,529 11,604 Proved reserves at June 30, 2016 (Predecessor) 66,373 121,147 86,564 Production (5,649) (13,485) (7,897) Extensions and discoveries 32,221 27,788 36,852 Revisions of previous estimates 5,453 5,788 6,418 Proved reserves at December 31, 2016 (Successor) 98,398 141,238 121,937 Proved developed reserves June 30, 2013 (Predecessor) 80,223 175,623 109,493 June 30, 2014 (Predecessor) 112,789 222,916 149,942 June 30, 2015 (Predecessor) 94,013 187,993 125,345 June 30, 2016 (Predecessor) 66,373 121,147 86,564 December 31, 2016 (Successor) 66,505 113,603 85,439 Proved undeveloped reserves June 30, 2013 (Predecessor) 53,424 93,498 69,007 June 30, 2014 (Predecessor) 72,600 141,940 96,256 June 30, 2015 (Predecessor) 43,059 90,550 58,151 June 30, 2016 (Predecessor) - - - December 31, 2016 (Successor) 31,892 27,635 36,498 Our proved reserves increased by 35.4 MMBOE or by approximately 41% from 86.6 MMBOE at June 30, 2016 to 121.9 MMBOE as of December 31, 2016. The increase was primarily due to: · The booking of 36.5 MMBOE of Proved Undeveloped reserves (included in extensions and discoveries above) . These reserves had been previously recorded by EXXI Ltd and then subsequently removed by it in the December 31, 2015 quarter due to the uncertainty regarding it s ability to secure the required development financing prior to the restructuring of the its debt; and · Upward revision s of approximately 6.4 MMBOE of proved reserves resulting primarily from the extension in field life due to the addition of proved undeveloped reserves These were offset by: · 7.9 MMBOE of production during the period. Following emergence from bankruptcy and in accordance with fresh start accounting, the Company, based on the renewed ability to fund development drilling, recorded proved undeveloped reserves of 36.5 MMBOE at December 31, 2016. Future development costs associated with our proved undeveloped reserves at December 31, 2016 totaled approximately $443.2 million. Standardized Measure of Discounted Future Net Cash Flows Future cash inflows as of December 31 , 201 6 were computed using the following prices. The average oil price prior to quality, transportation fees, and regional price differentials was $ 42.74 per barrel of oil (calculated using the unweighted average first-day-of-the-month West Texas Intermediate posted prices during the 12-mont h period ending on December 31, 2016 ). The report forecasts crude oil and NGL production separately. The average realized adjusted product prices weighted by production over the remaining lives of the properties, used to determine future net revenues were $ 41.51 per barrel of oil and $ 21.63 per barrel of NGLs, after adjusting for quality, transportation fees, and regional price differentials. The $ 41.51 per barrel realized oil price compares to an unweighted average first-day-of-the-month West Texas Intermediate price of $ 42.74 per barrel (differential of $ 1.23 per barrel). For natural gas, the average Henry Hub price used was $ 2.48 per MMBtu, prior to adjustments for energy content, transportation fees, and regional price differentials (calculated using the unweighted average first-day-of-the-month Henry Hub spot price). The average adjusted realized natural gas price, weighted by production over the remaining lives of the properties used to determine future net revenues, was $ 2.29 per MMBtu after adjusting for energy content, transportation fees, and regional price differentials. The standardized measure of discounted future net cash flows related to our proved oil and natural gas reserves follows ( in thousands ): Predecessor As of December 31, As of June 30, 2016 2016 2015 2014 Future cash inflows $ 4,344,985 $ 2,966,317 $ 10,641,151 $ 20,162,506 Less related future Production costs 2,648,363 2,223,645 4,131,526 5,500,669 Development and abandonment costs 1,587,527 1,033,717 1,970,526 2,959,994 Income taxes - - 168,655 2,546,155 Future net cash flows 109,095 (291,045) 4,370,444 9,155,688 Less: Ten percent annual discount for estimated timing of cash flows (26,315) (349,398) 1,613,034 3,208,163 Standardized measure of discounted future net cash flows (Predecessor) $ 58,353 $ 2,757,410 $ 5,947,525 Standardized measure of discounted future net cash flows (Successor) $ 135,410 The increase in our proved reserves had a significant impact on our estimated standardized measure values of the proved reserves which increased from approximately $58 .4 million as of June 30, 2016 to approximately $ 135.4 million as of December 31, 2016, mainly due to the following: · The booking of 36.5 MMBOE of proved undeveloped reserves from contingent resource category, and · The increase in proved developed reserves value resulting from greater economic field life due to the booking of proved undeveloped reserves and the delay of significant abandonment costs for all fields. The discounted PV - 10 of the properties as of December 31, 2016 and June 30, 2016 are higher than the undiscounted value due to the projected significant plugging and abandonment activity at the end of the life of the properties that are heavily discounted. Changes in Standardized Measure of Discounted Future Net Cash Flows A summary of the changes in the standardized measure of discounted future net cash flows applicable to proved oil and natural gas reserves follows ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Beginning of period (Predecessor) $ 58,353 $ 2,757,410 $ 5,947,525 $ 4,481,522 Revisions of previous estimates Changes in prices and costs (104,993) (3,287,459) (2,959,883) (196,159) Changes in quantities 53,585 (214,631) (2,390,099) (389,570) Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs 325,892 26,911 201,234 533,133 Purchases (sales) of reserves in place - 212,961 (244,507) 1,735,957 Accretion of discount (893) 215,297 760,175 614,964 Sales, net of production and gathering and transportation costs (131,947) (212,581) (676,949) (836,019) Net change in income taxes - 77,025 1,576,954 14,134 Changes in rate of production and other (2,704) 4,189 (191,668) (253,290) Development costs incurred 11,283 10,493 237,173 247,865 Changes in estimated future development and abandonment costs (73,166) 468,738 497,455 (5,012) Net change 77,057 (2,699,057) (3,190,115) 1,466,003 End of period (Predecessor) $ 58,353 $ 2,757,410 $ 5,947,525 End of period (Successor) $ 135,410 |
Organization (Policy)
Organization (Policy) | 6 Months Ended |
Dec. 31, 2016 | |
Organization [Abstract] | |
Nature of Operations | Nature of Operations Energy XXI Gulf Coast, Inc. (“EGC”), a Delaware corporation, was incorporated on February 7, 2006. Prior to emergence from the Chapter 11 Cases, EGC was an indirect wholly owned operating subsidiary of Energy XXI Ltd (“EXXI Ltd”). We are headquartered in Houston, Texas and have historically engaged in the acquisition, exploration, development and operation of oil and natural gas properties onshore in Louisiana and Texas and offshore in the Gulf of Mexico Shelf, which is an area in less than 1,000 feet of water (“GoM Shelf”). On April 14, 2016 , EXXI Ltd, an exempt company incorporated under the laws of Bermuda and predecessor of the Reorganized EGC (as defined below) under this transition report for the six month transition period ended December 31, 2016, EGC, EPL Oil & Gas, Inc. (“EPL”), an indirect wholly-owned subsidiary of EXXI Ltd and certain other indirect wholly-owned subsidiaries of EXXI Ltd filed voluntary petitions for reorganization in the Bankruptcy Court seeking relief under the provisions of Chapter 11. On December 13, 2016, the Bankruptcy Court entered the Confirmation Order and on December 30, 2016, the Debtors emerged from bankruptcy. In connection therewith, EXXI Ltd and its subsidiaries completed a series of internal reorganization transactions pursuant to which EXXI Ltd transferred all of its remaining assets to Energy XXI Gulf Coast, Inc. (the “Reorganized EGC”). In accordance with ASC 852, the Reorganized EGC applied fresh start accounting upon Predecessor’s emergence from bankruptcy and it evaluated transaction activity between the Emergence Date and December 31, 2016 and concluded an accounting convenience date of December 31, 2016 (the “Convenience Date”) was appropriate. References to “Reorganized EGC,” “Company,” “we,” “our”, “Successor”, “Successor Company” or similar terms when used in reference to the period subsequent to the emergence from the bankruptcy refer to Reorganized EGC, the new Parent entity and successor issuer of EXXI Ltd pursuant to Rule 12g-3(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). References in these consolidated financial statements to “EXXI Ltd,” “we,” “our”, “Predecessor”, “Predecessor Company” or similar terms when used in reference to the periods prior to the emergence from the bankruptcy refer to Energy XXI Ltd, the predecessor and former parent entity that will be dissolved upon the completion of the Bermuda Proceeding (as defined below). References in these consolidated financial statements to “EGC” refer to Energy XXI Gulf Coast, Inc. in the periods prior to the emergence from the bankruptcy during which it was the wholly-owned operating subsidiary of EXXI Ltd. On February 7, 2017, the board of directors of the Company ( the “ Board ”) adopted a resolution to change the Company's fiscal year end from June 30 to December 31. As a result, these financial statements are a transition report and include financial information for the transition period from July 1, 2016 through December 31, 2016. Subsequent to this report, our reports on Form 10-K will cover the calendar year, January 1 to December 31, which will be our fiscal year. Unless otherwise noted, all references to “years” in this Form 10-K refer to the twelve-month fiscal year, which, prior to July 1, 2016 ended on June 30, and, beginning after June 30, 2016, ends on December 31. The audited financial statements of the Successor on December 31, 2016 reflect an impairment of our oil and natural gas properties of approximately $406.3 million which we recognized due to the differences between the fair value of oil and natural gas properties recorded as part of fresh start accounting and the limitation of capitalized costs prescribed under Regulation S-X Rule 4-10. The most significant difference relates to the use of forward looking oil and natural gas prices in the determination of fair value as opposed to the use of historical first day of the month 12-month average oil and gas prices used in the calculation of limitation on capitalized costs. Reserve adjustment factors as well as the weighted average cost of capital also impacted the determination of the fair value of oil and natural gas properties recorded in fresh start accounting. |
Emergence from Chapter 11 | Emergence from Chapter 11 On April 14, 2016 (the “Petition Date”), EXXI Ltd, EGC, EPL Oil & Gas, Inc., an indirect wholly-owned subsidiary of Energy XXI Ltd (“EPL”) and certain other subsidiaries of Energy XXI Ltd (together with Energy XXI Ltd, the “Debtors”) (excluding Energy XXI GIGS Services, LLC, which leases a subsea pipeline gathering system located in the shallow GoM Shelf and storage and onshore processing facilities on Grand Isle, Louisiana, Energy XXI Insurance Limited through which certain insurance coverage for its operations is obtained by the Company, Energy XXI (US Holdings) Limited, Energy XXI International Limited, Energy XXI Malaysia Limited and Energy XXI M21K, LLC, (together, the “Non-Debtors”)) filed voluntary petitions for reorganization (the petitions collectively, the “Bankruptcy Petitions”) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”) seeking relief under the provisions of chapter 11 of Title 11 (“Chapter 11”) of the United States Bankruptcy Code (the “Bankruptcy Code”). The Debtors’ Chapter 11 cases (collectively, the “Chapter 11 Cases”) were jointly administered under the caption “In re: Energy XXI Ltd, et al., Case No. 16-31928.” Thereafter until emergence, the Debtors operated their businesses and managed their assets as debtors-in-possession under the jurisdiction of the Bankruptcy Court in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. As a result of filing the Bankruptcy Petitions, EXXI Ltd’s common stock was delisted from the Nasdaq Global Select Market (the “NASDAQ”) and on May 19, 2016, its registration under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) was withdrawn. As a result, EXXI Ltd’s common stock was deemed registered pursuant to Section 12(g) of the Exchange Act pursuant to Exchange Act Rule 12g-2(b). Concurrently with the filing of the Bankruptcy Petitions, EXXI Ltd filed a petition seeking an order for liquidation of EXXI Ltd in the Supreme Court of Bermuda (the “Bermuda Court”) (the “Bermuda Proceeding”). On April 15, 2016, John C. McKenna was appointed as provisional liquidator (“Provisional Liquidator”) by the Bermuda Court. In light of the Plan and the emergence of EXXI Ltd, the Bermuda Court granted the entry into a winding up order formally placing EXXI Ltd in liquidation and confirming John C. McKenna as Provisional Liquidator. The liquidation is expected to be completed during the first half of 2017, and EXXI Ltd will, at such conclusion, be dissolved. During the pendency of the Bermuda Proceeding, EXXI Ltd has adopted a modified reporting program with respect to its reporting obligations under federal securities laws. EXXI Ltd does not intend to file periodic reports while the Bermuda Proceeding is pending, but will continue to file current reports on Form 8-K as required by federal securities laws. On July 15, 2016, the Bankruptcy Court entered the Order (A) Approving the Disclosure Statement and the Form and Manner of Service Related Thereto, (B) Setting Dates for the Objection Deadline and Hearing Relating to Confirmation of the Plan and (C) Granting Related Relief . On July 18, 2016, the Debtors filed the solicitation version of the Debtors’ Third Amended Disclosure Statement (as amended, modified, or supplemented from time to time, the “Disclosure Statement”). On November 21, 2016, the Debtors filed the Second Amended Proposed Joint Chapter 11 Plan of Reorganization (as amended, modified, or supplemented from time to time, the “Plan”) and the solicitation version of the Second Supplement to the Disclosure Statement Setting Forth Modifications to the Plan (as amended, modified, or supplemented from time to time, the “Disclosure Statement Supplement”). On November 21, 2016, the Bankruptcy Court entered the Order (A) Approving the Adequacy of the Disclosure Statement Supplement to the Debtors’ Third Amended Disclosure Statement Setting Forth Modifications to the Debtors’ Plan and the Continued Solicitation of the Plan and (B) Granting Related Relief approving updated solicitation and tabulation procedures with respect to the Plan. On December 13, 2016, the Bankruptcy Court entered an order (the “Confirmation Order”) pursuant to the Bankruptcy Code, which approved and confirmed the Plan as modified by the Confirmation Order. On December 30, 2016 (the “Emergence Date”), the Debtors satisfied the conditions to effectiveness, the Plan became effective in accordance with its terms and the Company and the other reorganized Debtors (with the Company, the “Reorganized Debtors”) emerged from Chapter 11 Cases. In connection with the satisfaction of the conditions to effectiveness as set forth in the Confirmation Order and in the Plan, EXXI Ltd and its subsidiaries completed a series of internal reorganization transactions pursuant to which EXXI Ltd transferred all of its remaining assets to Reorganized EGC, as the new parent entity (the “Company”). Accordingly, Reorganized EGC succeeded to the entire business and operations previously consolidated for accounting purposes by EXXI Ltd. Upon emergence from the Chapter 11 Cases, the Company adopted fresh start accounting in accordance with the provisions set forth in Accounting Standards Codification (“ASC”) 852, Reorganizations (“ASC 852”), because (i) the holders of existing voting shares of EXXI Ltd prior to its emergence received less than 50% of the voting shares of the Reorganized EGC outstanding following its emergence from bankruptcy and (ii) the reorganization value of EXXI Ltd’s assets immediately prior to confirmation of the Plan was less than its post-petition liabilities and allowed claims. Under ASC 852, the Company is considered a new legal entity for accounting purposes. For reporting purposes, the pre-reorganization predecessor reflects the business that was transferred to the Reorganized EGC. The financial statements of the pre-reorganization predecessor are EXXI Ltd’s consolidated financial statements. On January 6, 2017, the Company filed a Current Report on Form 8-K as the initial report of the Company to the Securities and Exchange Commission (the “SEC”) and as notice that the Company is the successor issuer to EXXI Ltd under Rule 12g-3 under the Exchange Act. As a result, the shares of common stock of the Company, par value $0.01 per share, are deemed to be registered under Section 12(g) of the Exchange Act. The Company is thereby deemed subject to the informational requirements of the Exchange Act, and the rules and regulations promulgated thereunder, and in accordance therewith will file reports and other information with the Commission. |
Plan of Reorganization | Plan of Reorganization In accordance with the Plan, the following significant transactions occurred: Prepetition Notes In accordance with the Plan, on the Emergence Date, all outstanding obligations under the following notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled: · 11.0% senior secured second lien notes due March 15, 2020 (the “Second Lien Notes”) issued pursuant to that certain Indenture, dated as of March 12, 2015, among EGC, the guarantors party thereto, and U.S. Bank, N.A., as trustee, and all amendments, supplements or modifications thereto and extensions thereof; · 6.875% senior unsecured notes due March 15, 2024 (the “EGC 6.875 Senior Notes”) issued pursuant to that certain indenture, dated May 27, 2014, among EGC, the guarantors party thereto, and Wilmington Trust, National Association, as successor to Wells Fargo Bank, National Association, and all amendments, supplements or modifications thereto and extensions thereof; · 7.50% senior unsecured notes due December 15, 2021 (the “EGC 7.50% Senior Notes”) issued pursuant to that certain indenture, dated September 26, 2013, among EGC, the guarantors party thereto, and Wilmington Trust, National Association, as successor to Wells Fargo Bank, National Association, and all amendments, supplements or modifications thereto and extensions thereof; · 7.75% senior unsecured notes due June 15, 2019 (the “EGC 7.75% Senior Notes”) issued pursuant to that certain indenture, dated February 25, 2011, among EGC, the guarantors party thereto, and Wilmington Trust, National Association, as successor to Wells Fargo Bank, National Association, and all amendments, supplements or modifications thereto and extensions thereof; · 9.25% senior unsecured notes due December 15, 2017 (the “EGC 9.25% Senior Notes,” and together with the EGC 6.875% Senior Notes, the EGC 7.50% Senior Notes, the EGC 7.75% Senior Notes and the “EGC Unsecured Notes”) issued pursuant to that certain indenture, dated December 17, 2010, among EGC, the guarantors party thereto, and Wilmington Trust, National Association, as successor to Wells Fargo Bank, National Association, and all amendments, supplements or modifications thereto and extensions thereof; · 8.25% senior unsecured notes due February 15, 2018 (the “EPL 8.25% Senior Notes”) issued pursuant to that certain indenture, dated as of February 14, 2011, by and EGC, the guarantors party thereto, and U.S. Bank National Association, as trustee, and all amendments, supplements or modifications thereto and extensions thereof; and · 3.0% senior convertible notes due on December 15, 2018 (the “EXXI 3.0% Senior Convertible Notes”) issued pursuant to that certain indenture dated as of November 22, 2013 among EXXI Ltd and Wilmington Savings Fund Society, FSB, as trustee, and all amendments, supplements or modifications thereto and extensions thereof. Prepetition Revolving Credit Facility and Exit Facility On the E mergence Date, by operation of the Plan, all outstanding obligations under the Second Amended and Restated First Lien Credit Agreement (the “Prepetition Credit Agreement” or the “Prepetition Revolving Credit Facility”) and the related collateral agreements were cancelled and the credit agreements governing such obligations were cancelled. Pursuant to the Plan, on the Emergence Date, the Company, as Borrower, and the other Reorganized Debtors entered into a new three -year secured credit facility (the “Exit Facility”) with the prior lenders under the Prepetition Revolving Credit Facility. The Exit Facility is secured by mortgages on at least 90% of the value of our and our subsidiary guarantors proved reserves and proved developed producing reserves. The Exit Facility is comprised of two facilities: (i) a term loan facility (the “Exit Term Loan”) resulting from the conversion of the remaining drawn amount under the Prepetition Revolving Credit Facility of approximately $74 million plus accrued default interest, fees and expenses and (ii) a revolving credit facility (the “Exit Revolving Facility”) resulting from the conversion of the former EGC tranche of the Prepetition Revolving Credit Facility, which provides for the making of revolving loans and the issuance of letters of credit. On the Emergence Date, the aggregate commitments under the Exit Revolving Facility were $227.8 million, all of which will be utilized to maintain in effect outstanding letters of credit, including $225 million of letters of credit issued in favor of Exxon Mobil Corporation (“ExxonMobil”) to secure certain plugging and abandonment obligations. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policy) | 6 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies and Recent Accounting Pronouncements [Abstract] | |
Principles of Consolidation and Reporting | Principles of Consolidation and Reporting. The accompanying consolidated financial statements on December 31, 2016 include the accounts of Reorganized EGC and its wholly-owned subsidiaries and for prior periods, the accompanying consolidated financial statements include the accounts of Energy XXI Ltd and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). All significant intercompany accounts and transactions are eliminated in consolidation. Our interests in oil and natural gas exploration and production ventures and partnerships are proportionately consolidated. For periods subsequent to filing the Bankruptcy Petitions, we have prepared the Predecessor’s consolidated financial statements in accordance with ASC 852. ASC 852 requires that the financial statements distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, a gain on settlement of liabilities subject to compromise, a fair value adjustment gain and professional fees incurred in the Chapter 11 Cases have been recorded in a reorganization line item on the consolidated statements of operations. In addition, ASC 852 provides for changes in the accounting and presentation of significant items on the consolidated balance sheets, particularly liabilities. Pre-petition obligations that may be impacted by the Chapter 11 reorganization process have been classified on the Predecessor consolidated balance sheets in liabilities subject to compromise. |
Fresh Start Accounting | Fresh-start Accounting. Upon emergence from bankruptcy, in accordance with ASC 852 related to fresh-start accounting, Reorganized EGC became a new entity for financial reporting purposes. Upon adoption of fresh-start accounting, our assets and liabilities were recorded at their fair values as of the Convenience Date. The Convenience Date fair values of our assets and liabilities differed materially from the recorded values of our assets and liabilities as reflected in the Predecessor historical consolidated balance sheets. The effects of the Plan and the application of fresh-start accounting are reflected in our consolidated balance sheet as of December 31, 2016 and the related adjustments thereto were recorded in the consolidated statement of operations of the Predecessor as reorganization items during the six month transition period ended December 31, 2016. Accordingly, Reorganized EGC’s consolidated financial statements as of and subsequent to December 31, 2016 are not and will not be comparable to the Predecessor consolidated financial statements prior to the Convenience Date. Our consolidated financial statements and related footnotes are presented with a black line division which delineates the lack of comparability between amounts presented on December 31, 2016 and dates prior. Our financial results for future periods following the application of fresh-start accounting will be different from historical trends and the differences may be material. |
Use of Estimates | Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates of proved reserves are key components of our depletion rate for our proved oil and natural gas properties and the full cost ceiling test limitation. Other items subject to estimates and assumptions include fair value estimates used in fresh start accounting; accounting for acquisitions and dispositions; carrying amounts of property; plant and equipment; goodwill; asset retirement obligations; deferred income taxes; valuation of derivative financial instruments; reorganization items and liabilities subject to compromise, among others. Accordingly, our accounting estimates require the exercise of judgment by management in preparing such estimates. While we believe that the estimates and assumptions used in preparation of our consolidated financial statements are appropriate, actual results could differ from those estimates, and any such differences may be material. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments, with maturities of 90 days or less when purchased, to be cash and cash equivalents. |
Restricted Cash | Restricted Cash . We maintain restricted escrow funds in trusts as required by certain contractual arrangements and disposition transactions. Amounts on deposit in trust accounts are reflected in restricted cash on our consolidated balance sheets. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts. Accounts receivable are stated at historical carrying amount net of allowance for doubtful accounts. We establish provisions for losses on accounts receivable if it is determined that collection of all or a part of an outstanding balance is not probable. Collectability is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. As of December 31, 2016, there was no allowance for doubtful accounts . As of June 30, 2016, our allowance for doubtful accounts was $3.2 million. As of June 30, 2015, no allowance for doubtful accounts was necessary. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties . We use the full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (“SEC”). Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as properties and equipment. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves. Oil and natural gas properties include costs that are excluded from costs being depleted or amortized. Costs excluded from depletion or amortization represent investments in unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. We exclude these costs until the property has been evaluated. We also allocate a portion of our acquisition costs to unevaluated properties based on fair value. Costs associated with unevaluated properties are transferred to evaluated properties upon the earlier of (i) a determination as to whether there are any proved reserves related to the properties or the costs are impaired , (ii) a determination that the capital costs associated with the development of these properties will not be available, or (iii) ratably over a period of time of not more than four years. We evaluate the impairment of our evaluated oil and natural gas properties through the use of a ceiling test as prescribed by SEC Regulation S-X Rule 4-10. Estimated future production volumes from oil and natural gas properties are a significant factor in determining the full cost ceiling limitation of capitalized costs. There are numerous uncertainties inherent in estimating quantities of proved oil and natural gas reserves. Oil and natural gas reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be precisely measured. Such cost estimates related to future development costs of proved oil and natural gas reserves could be subject to revisions due to changes in regulatory requirements, technological advances and other fa ctors which are difficult to predict. On December 31, 2016, the Company, subsequent to its emergence from bankruptcy, recorded an impairment of its oil and natural gas properties of approximately $406.3 million due to the differences between the fair value of oil and natural gas properties recorded as part of fresh start accounting and the limitation of capitalized costs prescribed under Regulation S-X Rule 4-10. The most significant difference relates to the use of forward looking oil and natural gas prices in the determination of fair value as opposed to the use of historical first day of the month 12-month average oil and natural gas prices used in the calculation of limitation on capitalized costs. Reserve adjustment factors as well as the weighted average cost of capital also impacted the determination of the fair value of oil and natural gas properties recorded in fresh start accounting. For the three months ended September 30, 2016, EXXI Ltd’s ceiling test computation resulted in an impairment of its oil and natural gas properties of $86.8 million. |
Depreciation, Depletion and Amortization | Depreciation, Depletion and Amortization. The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of accumulated depreciation, depletion, amortization and impairment, estimated future development costs and asset retirement costs not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized using the unit-of-production method over total proved reserves. |
Weather Based Insurance Linked Securities | Weather Based Insurance Linked Securities . We obtain Weather Based Insurance Linked Securities (“Securities”), to mitigate potential loss to our oil and natural gas properties from hurricanes in the Gulf of Mexico. These Securities provide for payments of negotiated amounts should a pre-defined category hurricane pass within specific pre-defined areas encompassing our oil and natural gas producing fields. Since these Securities were obtained to mitigate potential loss due to hurricanes in the Gulf of Mexico, the majority of the premiums associated with these Securities are charged to expense during the period associated with the hurricane season, typically June 1 to November 30. The amortization of insurance premiums for these Securities is recorded as a component of our lease operating expense. |
Other Property and Equipment | Other Property and Equipment. Other property and equipment include buildings, data processing and telecommunications equipment, office furniture and equipment, vehicle and leasehold improvements and other fixed assets. These items are recorded at cost and are depreciated using the straight-line method based on expected lives of the individual assets or group of assets, which ranges from three to five years. Repairs and maintenance costs are expensed in the period incurred. |
Business Combinations | Business Combinations. For properties acquired in a business combination, we allocate the cost of the acquisition to assets acquired and liabilities assumed based on fair values as of the acquisition date. Deferred taxes are recorded for any differences between the assigned values and tax bases of assets and liabilities. Any excess of the purchase price over amounts assigned to assets and liabilities is recorded as goodwill. Any excess of amounts assigned to assets and liabilities over the purchase price is recorded as a gain on bargain purchase. The amount of goodwill or gain on bargain purchase recorded in any particular business combination can vary significantly depending upon the values attributed to assets acquired and liabilities assumed. In estimating the fair values of assets acquired and liabilities assumed in a business combination, we make various assumptions. The most significant assumptions relate to the estimated fair values assigned to proved and unproved oil and natural gas properties. To estimate the fair values of these properties, we prepare estimates of crude oil and natural gas reserves. We estimate future prices to apply to the estimated reserves quantities acquired, and estimate future operating and development costs, to arrive at estimates of future net cash flows. For estimated proved reserves, the future net cash flows are discounted using a market-based weighted average cost of capital rate determined appropriate at the time of the acquisition. The market-based weighted average cost of capital rate is subjected to additional project-specific risking factors. To compensate for the inherent risk of estimating and valuing unproved reserves, the discounted future net cash flows of probable and possible reserves are reduced by additional risk-weighting factors. Estimated deferred taxes are based on available information concerning the tax basis of assets acquired and liabilities assumed and loss carryforwards at the acquisition date, although such estimates may change in the future as additional information becomes known. |
Goodwill | Goodwill. Goodwill has an indefinite useful life and is not amortized, but rather is tested for impairment at least annually during the third quarter, unless events occur or circumstances change between annual tests that would more likely than not reduce the fair value of a related reporting unit below its carrying value. Impairment occurs when the carrying amount of goodwill exceeds its implied fair value. Goodwill arose in the year ended June 30, 2014 in connection with the acquisition of EPL and was recorded to our oil and gas reporting unit. At December 31, 2014, we conducted a qualitative goodwill impairment assessment and after assessing the relevant events and circumstances, we determined that performing a quantitative goodwill impairment test was necessary. Therefore, we performed steps one and two of the goodwill impairment test, which led us to conclude that there would be no remaining implied fair value attributable to goodwill. As a result, we recorded a goodwill impairment charge of $329.3 million to reduce the carrying value of goodwill to zero at December 31, 2014. See Note 6 – “Goodwill” for more information. |
Derivative Instruments | Derivative Instruments . We have historically used various derivative instruments including crude oil and natural gas put, swap and collar arrangements and combinations of these instruments in order to manage the price risk associated with future crude oil and natural gas production. Derivative financial instruments are recorded at fair value and included as either assets or liabilities in the consolidated balance sheets. We net derivative assets and liabilities for counterparties where we have a legal right of offset. Any premiums paid or financed on derivative financial instruments are capitalized as part of the derivative assets or derivative liabilities, as appropriate, at the time the premiums are paid or financed. Any gains or losses resulting from c hanges in fair value of outstanding derivative financial instruments and from the settlement of derivative financial instruments are recognized in earnings and included in gain (loss) on derivative financial instruments as a component of revenues in the accompanying consolidated statements of operations. |
Debt Issuance Costs | Debt Issuance Costs. Costs incurred in connection with the issuance of long-term debt are presented in the consolidated balance sheet as a direct deduction from the carrying amount of that debt liability and are amortized to interest expense generally over the scheduled maturity of the debt utilizing the interest method. Costs incurred in connection with line-of-credit agreements are presented as an asset and subsequently amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings under the line-of-credit arrangement. |
Asset Retirement Obligations | Asset Retirement Obligations . Our investment in oil and natural gas properties includes an estimate of the future cost associated with dismantlement, abandonment and restoration of our properties. The present value of the future costs are added to the capitalized cost of our oil and natural gas properties and recorded as a long-term or current liability. The capitalized cost is included in oil and natural gas properties that are depleted over the life of the assets. The estimation of future costs associated with dismantlement, abandonment and restoration requires the use of estimated costs in future periods that, in some cases, will not be incurred until a substantial number of years in the future. Such cost estimates could be subject to revisions in subsequent years due to changes in regulatory requirements, technological advances and other factors which may be difficult to predict. |
Common Stock | Common Stock. Refers to either (i) Reorganized EGC’s common stock, par value $0.01 per share, as designated in its Second Amended and Restated Certificate of Incorporation for the period following emergence from the Chapter 11 or (ii) EXXI Ltd’s common stock, par value $0.005 per share, as designated in its Memorandum of Association. Treasury Stock is accounted for using the cost method. |
Revenue Recognition | Revenue Recognition. We recognize oil and natural gas revenue when the product is delivered at the contracted sales price, title is transferred and collectability is reasonably assured. The Company has elected the entitlements method to account for gas production imbalances. Gas imbalances occur when we sell more or less than our entitled ownership percentage of total gas production. Any amount received in excess of our share is treated as a liability. If we receive less than our entitled share the underproduction is recorded as a receivable. The amounts of imbalances were not material at December 31, 2016, June 30, 2016 and 2015. |
General and Administrative Expense | General and Administrative Expense . Under the full cost method of accounting, the portion of our general and administrative expense that is directly identified with our exploration and development activities is capitalized as part of our oil and natural gas properties. These capitalized costs include salaries, employee benefits, costs of consulting services, and other direct costs incurred to support those employees directly involved in exploration and development activities. The capitalized costs do not include costs related to production operations, general corporate overhead or similar activities. Our capitalized general and administrative expense directly related to our exploration and development activities for the six month transition period ended December 31, 2016 and for the years ended June 30, 2016, 2015 and 2014 was $ 7.8 million, $17.0 million, $49.2 million, and $64.5 million, respectively. |
Share-Based Compensation | Share-Based Compensation. C ompensation cost for equity awards is based on the fair value of the equity instrument on the date of grant and is recognized over the period during which an independent director or employee is required to provide service in exchange for the award. Compensation cost for liability awards is based on the fair value of the vested award at the end of each reporting period. |
Income Taxes | Income Taxes . Provisions for income taxes include deferred taxes resulting primarily from temporary differences due to different reporting methods for oil and natural gas properties and derivative instruments for financial reporting purposes and income tax purposes. We use the current U.S. Federal statutory rate of 35% for measuring these deferred tax assets and liabilities, as adjusted for any applicable state taxes. For financial reporting purposes, all exploratory and development expenditures are capitalized and depreciated, depleted and amortized on the unit-of-production method. For income tax purposes, only the equipment and leasehold costs relative to successful wells are capitalized and recovered through Depreciation, Depletion and Amortization (“DD&A”). Generally, most other exploratory and development costs are charged to expense as incurred; however, we may use certain provisions of the Tax Code that allow capitalization of intangible drilling costs where management deems appropriate. The tax bases of our assets and other tax attributes (such as net operating loss (“NOL”) that are reflected in fresh-start accounting were heavily influenced by the Tax Attribute Reduction Rules of the Tax Code. As such, we were required to reduce our tax attributes on December 31, 2016 by approximately $2,600 million which equals the amount of cancellation of indebtedness income (“CODI”) that was excluded from current taxation as a result of the indebtedness discharge from the Chapter 11 Cases. The remaining tax bases of our oil and natural gas properties are less than their respective book carrying values as determined in fresh-start accounting such that we have recorded a deferred tax liability for those properties. We have recorded a deferred tax asset for the asset retirement obligation (which has no tax basis and will be tax deductible or result in additional tax basis in assets when settled) and other items that exceed the deferred tax liability for oil and natural gas properties. Accordingly, we have recorded a valuation allowance of $ 174.5 million at December 31, 2016, which results in no net deferred tax asset or liability appearing on our statement of financial position. We recorded this valuation allowance at this date after an evaluation of all available evidence (including our recent history of Predecessor losses) led to a conclusion that based upon the more-likely-than-not standard of the accounting literature; these deferred tax assets were unrecoverable. When recording income tax expense, certain estimates are required to be made by management due to timing and to the impact of future events on when income tax expenses and benefits are recognized by us. We periodically evaluate any tax asset, NOL and other carryforwards to determine whether a gross tax asset, as well as a valuation allowance, should be recognized or adjusted in our consolidated financial statements. We have not recorded any reserves for uncertain income tax positions. |
Earnings per Share | Earnings per Share . Basic earnings (loss) per share (“EPS”) amounts have been calculated based on the weighted average number of shares of common stock outstanding for the period. Diluted EPS reflects potential dilution using the treasury stock method. Except when the effect would be anti-dilutive, the diluted EPS calculation includes the impact of the assumed conversion of our Predecessor convertible preferred stock and other potential shares of common stock. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09. With the one-year deferral, ASU 2014-09 is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are in the initial stages of evaluating the effect of pending adoption of ASU 2014-09 on our financial position and results of operations and continue to evaluate the available transition methods. In February 2016, the FASB issued ASU No. 2016-02, Leases ( “ ASU 2016-02”), to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB amended the FASB Accounting Standards Codification and creating Topic 842, Leases . The guidance in this ASU supersedes Topic 840, Leases. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In the normal course of business, we enter into capital and operating lease agreements to support our operations. We are in the initial stages of evaluating the provisions of ASU 2016-02 to determine the quantitative effects it will have on our consolidated financial statements and related disclosures. We believe the adoption and implementation of this ASU will likely have a material impact on our balance sheet resulting from an increase in both assets and liabilities relating to our leasing activities. In June 2016, the FASB issued ASU No. 2016-13, Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The standard will replace today’s incurred loss approach with an expected loss model for instruments measured at amortized cost. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. This ASU is effective for public entities for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for all entities for annual periods beginning after December 15, 2018, and interim periods therein. We have not yet determined the effect of this standard on our consolidated financial position, results of operations or cash flows. In August 2016, the FASB issued ASU No. 2016-15, (“ASU 2016-15”). The new guidance in ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new standard is effective for public entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. We have not yet determined the effect of this standard on our consolidated cash flows. |
Chapter 11 Proceedings (Tables)
Chapter 11 Proceedings (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Chapter 11 Proceedings [Abstract] | |
Schedule of Liabilities Subject to Compromise | See Note 4 – “Fresh Start Accounting” on final determination on liabilities subject to compromise by the Bankruptcy Court. Liabilities subject to compromise include the following ( in thousands ) : Predecessor June 30, 2016 Debt 11.0% Senior Secured Second Lien Notes due 2020 $ 1,450,000 8.25% Senior Notes due 2018 213,677 6.875% Senior Notes due 2024 143,993 3.0% Senior Convertible Notes due 2018 363,018 7.5% Senior Notes due 2021 238,071 7.75% Senior Notes due 2019 101,077 9.25% Senior Notes due 2017 249,452 4.14% Promissory Note due 2017 4,006 Capital lease obligations 714 Total debt 2,764,008 Accounts payable 38,202 Accrued liabilities 133,938 Total liabilities subject to compromise $ 2,936,148 |
Fresh Start Accounting (Tables)
Fresh Start Accounting (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Reorganization and Application of ASC 852 and the Convenience Date Ceiling Test Impairment on Consolidated Balance Sheet | The following table reflects the reorganization and application of ASC 852 and the Convenience Date ceiling test impairment on our consolidated balance sheet as of December 31, 2016 ( in thousands ): As of December 31, 2016 Predecessor Company Reorganization Adjustments Fresh-Start Adjustments Successor Company before Impairment Impairment Successor Company ASSETS Current Assets Cash and cash equivalents $ 164,817 $ 551 (1) $ - $ 165,368 $ - $ 165,368 Accounts receivable, net - - Oil and natural gas sales 68,143 - - 68,143 - 68,143 Joint interest billings 5,600 - - 5,600 - 5,600 Other 18,909 (965) (3) - 17,944 - 17,944 Prepaid expenses and other current assets 54,100 (26,260) (2) (1,883) (10) 25,957 - 25,957 Restricted cash 32,888 (551) (1) - 32,337 - 32,337 Total Current Assets 344,457 (27,225) (1,883) 315,349 - 315,349 Property and Equipment Oil and natural gas properties, net 500,114 - 1,003,640 (11) 1,503,754 (406,275) 1,097,479 Other property and equipment, net 15,049 - 3,758 (12) 18,807 - 18,807 Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment 515,163 - 1,007,398 1,522,561 (406,275) 1,116,286 Other Assets Restricted cash 25,583 - - 25,583 - 25,583 Other assets 30,174 - (1,930) (13) 28,244 - 28,244 Total Other Assets 55,757 - (1,930) 53,827 - 53,827 Total Assets $ 915,377 $ (27,225) $ 1,003,585 $ 1,891,737 $ (406,275) $ 1,485,462 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable $ 67,876 $ 33,241 (3) $ - $ 101,117 $ - $ 101,117 Accrued liabilities 48,500 15,160 (3) (4) - 63,660 - 63,660 Asset retirement obligations 58,537 - (1,936) (14) 56,601 - 56,601 Current maturities of long-term debt 74,046 (69,778) (5) - 4,268 - 4,268 Total Current Liabilities 248,959 (21,377) (1,936) 225,646 - 225,646 Long-term debt, less current maturities - 74,229 (5) - 74,229 - 74,229 Asset retirement obligations 509,187 - 187,576 (14) 696,763 - 696,763 Other liabilities 24,662 2,345 (3) (12,526) (15) 14,481 - 14,481 Total Liabilities Not Subject to Compromise 782,808 55,197 173,114 1,011,119 - 1,011,119 Liabilities subject to compromise 2,934,619 (2,934,619) (6) - - - - Total Liabilities 3,717,427 (2,879,422) 173,114 1,011,119 - 1,011,119 Stockholders’ Equity (Deficit) Preferred stock (Predecessor) 7.25% Convertible perpetual preferred stock (Predecessor) - - - - - - 5.625% Convertible perpetual preferred stock (Predecessor) - - - - - - Common stock (Predecessor) 504 (504) (7) - - - - Common stock (Successor) - 332 (8) - 332 - 332 Additional paid-in capital (Predecessor) 1,845,851 (1,845,851) (7) - - - - Additional paid-in capital (Successor) - 880,286 (8) - 880,286 - 880,286 Accumulated deficit (4,648,405) 3,817,934 (9) 830,471 (16) - (406,275) (406,275) Total Stockholders’ Equity (Deficit) (2,802,050) 2,852,197 830,471 880,618 (406,275) 474,343 Total Liabilities and Stockholders’ Equity (Deficit) $ 915,377 $ (27,225) $ 1,003,585 $ 1,891,737 $ (406,275) $ 1,485,462 Reorganization Adjustments (1) Reflects the reclassification of the utility deposit from restricted cash to cash and cash equivalents. (2) Represents cash payments made prior to the Convenience Date to the following parties in accordance with the Plan (i) approximately $11.2 million to the Plan support parties of the EGC Unsecured Noteholders for professional fees, (ii) approximately $9.6 million to the Plan support parties of the EPL Unsecured Noteholders for professional fees, (iii) approximately $2 million for EXXI Ltd’s 3.0% Senior Convertible Notes Trustee, and (iv) approximately $3.5 million for success fees paid to EXXI Ltd’s restructuring advisors. The amounts were recorded as prepaid expenses on the Emergence Date and subsequently reflected as effects of the Plan on the Convenience Date. (3) Represents reinstated claims that were reclassified from liabilities subject to compromise at Emergence Date and will be settled in cash. Of the approximate $3.4 million claims reinstated to accrued liabilities, approximately $1.0 million of the reinstated claim s w ere applied against other receivables in accordance with the right of offset approved by the Bankruptcy Court and the remaining approximately $2.4 million of reinstated claims were reclassified to accrued liabilities . (4) Represents success fee accrual of $11 million payable to restructuring advisors and a professional fee accrual of $1.7 million payable to the Plan support parties of EGC and EPL Unsecured Noteholders. (5) Represents the reclassification of the revolving credit facility and the reinstated claims related to 4.14% promissory note and capital lease obligations. (6) Liabilities subject to compromise were settled as noted below ( in thousands ): On December 31, 2016 Predecessor Debt 11.0% Senior Secured Second Lien Notes due 2020 $ 1,450,000 8.25% Senior Notes due 2018 213,677 6.875% Senior Notes due 2024 143,993 3.0% Senior Convertible Notes due 2018 363,018 7.5% Senior Notes due 2021 238,071 7.75% Senior Notes due 2019 101,077 9.25% Senior Notes due 2017 249,452 4.14% Promissory Note due 2017 4,001 Capital lease obligations 450 Total debt 2,763,739 Accounts payable 37,424 Accrued liabilities 133,456 Total liabilities subject to compromise 2,934,619 Fair value of equity and warrants issued per the Plan (880,618) Fair value of reinstated accounts payable and accrued liabilities to be settled in cash (43,509) Cash payment for 3.0% Senior Convertible Notes (2,000) Gain on settlement of liabilities subject to compromise $ 2,008,492 (7) Reflects the cancellation of EXXI Ltd’s equity. (8) Represents the issuance of Successor equity. The Successor Company issued a total of 33,211,594 shares of its common stock, of which 27,897,739 shares of common stock were issued to the Second Lien Holders, 3,985,391 shares of common stock was issued to the holders of EGC Unsecured Notes and 1,328,464 shares of common stock was issued to the EPL Unsecured Notes. The Successor equity is subject to dilution by exercise of 1,271,933 warrants issued to the holders of EGC Unsecured Noteholders and 847,956 warrants issued the EPL Unsecured Noteholder s for 2,119,889 shares of common stock with an initial exercise price of $43.66 . The fair value of the warrants was estimated at $8.1 million or $3. 80 per warrant, using the Black-Scholes Option pricing valuation model. (9) The cumulative impact of the reorganization adjustments is as below ( in thousands ): December 31, 2016 Gain on settlement of liabilities subject to compromise $ 2,008,492 Cancellation of EXXI Ltd equity 1,846,355 Accrual of success fee (12,653) Payments made of plan support parties (24,260) Net impact to accumulated deficit $ 3,817,934 Fresh Start Adjustments (10) Represents the write off of the unamortized deferred financing costs related to the Prepetition Credit Facility. (11) In estimating the fair value of its oil and natural gas properties, the Company used a combination of the income and market approaches. For purposes of estimating fair value of the Company's proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Company's reserves, risked by reserve category and discounted using a weighted average cost of capital of 11.1% . Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $60.37 per barrel of oil, $3.02 per MMBtu of natural gas and $25.36 per barrel of NGL, after adjusting for regional pricing differentials. The proved reserve locations were limited to wells expected to be drilled in the Company's five year development plan. Base pricing was derived from strip prices on the December 30, 2016 and subsequently increased at an inflation escalation factor of 2.0% after the fourth year. (12) In estimating the fair value of the other property and equipment, the Company primarily employed a combination of cost and market approaches. These assets were primarily evaluated using a replacement cost methodology and also obtaining market-based pricing indicators for certain assets which had active secondary markets. (13) Represents the removal of catering business goodwill and deferred lease expenses. (14) Represents the adjustment of asset retirement obligations to fair value using estimated plugging and abandonment costs as of December 31, 2016, adjusted for inflation using a rate of 2% and then discounted at the credit-adjusted risk free rate of 6.5% . The fair value of asset retirement obligation was estimated at $753.4 million. (15) Represents the removal of deferred rent liabilities. (16) Represents the cumulative effects of the fresh-start accounting adjustments. |
Summary of Reorganization Items | Reorganization items represent liabilities settled, net of amounts incurred subsequent to the Chapter 11 filing as a direct result of the Plan and are classified as “Reorganization items” in the consolidated statements of operations. The following table summarizes reorganization items ( in thousands ): Predecessor Six Months Year Ended Ended December 31, June 30, 2016 2016 Gain on settlement of liabilities subject to compromise $ 2,008,492 $ - Fresh start adjustments 830,471 - Reorganization legal and professional fees and expenses (90,568) (14,201) Gain (loss) on reorganization items $ 2,748,395 $ (14,201) |
Enterprise Value to the Estimated Fair Value [Member] | |
Reconciliation of Enterprise Value to the Estimated Fair Value of the Successor Company | The following table reconciles the enterprise value to the estimated fair value of the Successor Company's common stock as of the Convenience Date ( in thousands ): December 31, 2016 Enterprise Value $ 793,747 Add: Cash and cash equivalents 165,368 Less: Fair value of debt (78,497) Fair Value of Successor common stock and warrants 880,618 Less: Fair value of warrants (8,056) Fair Value of Successor common stock $ 872,562 |
Enterprise Value to the Estimated Reorganization Value [Member] | |
Reconciliation of Enterprise Value to the Estimated Fair Value of the Successor Company | The following table reconciles the enterprise value to the estimated reorganization value as of the Emergence Date ( in thousands ): December 31, 2016 Enterprise Value $ 793,747 Add: Cash and cash equivalents 165,368 Add: Other working capital liabilities 164,777 Add: Other long-term liabilities 14,481 Add: Asset retirement obligation 753,364 Reorganization value of Successor assets $ 1,891,737 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Energy XXI M21K LLC [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Purchase Price Allocation to the Assets Acquired and Liabilities Assumed | The following table presents the final purchase price allocation to the assets acquired and liabilities assumed, based on their estimated fair values on August 11, 2015 ( in thousands ): Oil and natural gas properties – evaluated $ 73,910 Oil and natural gas properties – unevaluated 39,278 Asset retirement obligations (66,700) Net working capital * (21,301) Fair value of debt assumed (25,187) Cash paid $ - * Net working capital includes approximately $1.0 million in cash . |
EPL Oil & Gas, Inc. [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Summary of Business Acquisition | The following table summarizes the total purchase price of approximately $1,504.3 million, including cash acquired of $206.1 million ( in millions, except per share amounts): Election EPL Shares Cash per share EXXI Ltd Stock Cash Paid EXXI Ltd Stock Issued EXXI Ltd Stock Price on June 3, 2014 Cash Value of EXXI Ltd Stock Issued Total Purchase Price Cash Election 30.6 $ 25.92 0.5595 $ 792.6 17.1083 $ 21.11 $ 361.2 $ 1,153.8 Mixed Election* 7.4 25.35 0.5840 186.8 4.3037 21.11 90.8 277.6 Stock Election 1.1 - 1.6690 - 1.9090 21.11 40.3 40.3 Stock Options 0.8 39.00 - 32.6 - - 32.6 Total 39.9 $ 1,012.0 23.3210 $ 492.3 $ 1,504.3 (*) Includes 4.7 million EPL shares that were held by EPL stockholders that did not make an election prior to the May 30, 2014 election deadline. |
Purchase Price Allocation to the Assets Acquired and Liabilities Assumed | The following table summarizes the final purchase price allocation for EPL as of June 3, 2014 ( in thousands ): EPL Historical Fair Value Adjustment Total (Unaudited) Current assets (excluding deferred income taxes) $ 301,592 $ 1,274 $ 302,866 Oil and natural gas properties a Evaluated (Including net ARO assets) 1,919,699 112,624 2,032,323 Unevaluated 41,896 859,886 901,782 Other property and equipment 7,787 - 7,787 Other assets 16,227 (9,002) 7,225 Current liabilities (excluding ARO) (314,649) (2,058) (316,707) ARO (current and long-term) (260,161) (13,211) (273,372) Debt (current and long-term) (973,440) (52,967) (1,026,407) Deferred income taxes b (118,359) (340,645) (459,004) Other long-term liabilities (2,242) 797 (1,445) Total fair value, excluding goodwill 618,350 556,698 1,175,048 Goodwill c,d - 329,293 329,293 Less cash acquired - - 206,075 Total purchase price $ 618,350 $ 885,991 $ 1,298,266 a. EPL oil and gas properties were accounted for under the successful efforts method of accounting prior to the merger. After the merger, we are accounting for these oil and gas properties under the full cost method of accounting, which is consistent with our accounting policy. b. Deferred income taxes have been recognized based on the estimated fair value adjustments to net assets using a 37% tax rate, which reflected the 35 % federal statutory rate and a 2 % weighted average of the applicable statutory state tax rates (net of federal benefit). c. See Note 6 – “Goodwill” for more information regarding goodwill impairment at December 31, 2014. d. On April 2, 2013, EPL sold certain shallow water GoM Shelf oil and natural gas interests located within the non-operated Bay Marchand field to Chevron U.S.A. Inc. (“Chevron”) with an effective date of January 1, 2013. In September 2014, we were informed by Chevron that the final settlement statement did not reflect a portion of the related production in the months of January 2013 and February 2013 totaling approximately $2.1 million. After review of relevant supporting documents, we agreed to reimburse Chevron approximately $2.1 million. This resulted in an increase in liabilities assumed in the EPL Acquisition and a corresponding increase in goodwill of approximately $2.1 million. |
Summary of Pro Forma Financial Information | The following supplemental unaudited pro forma consolidated financial information has been prepared to reflect the EPL Acquisition as if the merger had occurred on July 1, 2012. The supplemental unaudited pro forma financial information is based on the historical consolidated statements of operations of EXXI Ltd and EPL for the year ended June 30, 2014 ( in thousands , except per share amounts ). Year Ended June 30, 2014 Revenues $ 1,783,062 Net loss (45,233) Net loss available to EXXI Ltd common stockholders (56,722) Net loss per share available to EXXI Ltd common stockholders: Basic $ (0.76) Diluted $ (0.76) The above supplemental unaudited pro forma consolidated financial information has been prepared for illustrative purposes only and is not intended to be indicative of the results of operations that actually would have occurred had the acquisition occurred on July 1, 2012, nor is such information indicative of any expected results of operations in future periods. The most significant pro forma adjustments to income from continuing operations for the year ended June 30, 2014 were the following: a. Exclude expense of $45.2 million of EPL’s exploration costs and impairment expense and $1.8 million of gain on sales of assets accounted for under the successful efforts method of accounting to correspond with EXXI’s full cost method of accounting. b. Increase DD&A expense by $ 65.3 million for the EPL Properties to correspond with EXXI’s full cost method of accounting as well as the adjustments to fair value of the acquired assets. c. Increase interest expense by $50.0 million to reflect interest on the $650 million 6.875% unsecured senior notes due 2024 and on additional borrowings under EXXI’s Revolving Credit Facility. Decrease interest expense $12.3 million to reflect non-cash premium amortization due to the adjustment to fair value associated with the $510 million 8.25% senior notes due 2018 assumed in the EPL Acquisition. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following ( in thousands ): Successor Predecessor December 31, June 30, June 30, 2016 2016 2015 Oil and gas properties Proved properties $ 1,127,616 $ 9,817,456 $ 9,243,737 Less: accumulated depreciation, depletion, amortization and impairment (406,275) (9,256,513) (6,109,335) Proved properties, net 721,341 560,943 3,134,402 Unevaluated properties 376,138 42,212 436,357 Oil and gas properties, net 1,097,479 603,155 3,570,759 Other property and equipment 18,807 44,272 45,941 Less: accumulated depreciation - (26,662) (24,121) Other property and equipment, net 18,807 17,610 21,820 Total property and equipment, net of accumulated depreciation, depletion, amortization and impairment $ 1,116,286 $ 620,765 $ 3,592,579 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Long-Term Debt [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following ( in thousands ): Successor Predecessor December 31, June 30, 2016 2016 2015 Prepetition Revolving Credit Facility (2) $ - $ 99,836 $ 150,000 Exit Facility 73,996 - - 11.0% Senior Secured Second Lien Notes due 2020 (2) - 1,450,000 1,450,000 8.25% Senior Notes due 2018 (2) - 213,677 510,000 6.875% Senior Notes due 2024 (2) - 143,993 650,000 3.0% Senior Convertible Notes due 2018 (2) - 363,018 400,000 7.5% Senior Notes due 2021 (2) - 238,071 500,000 7.75% Senior Notes due 2019 (2) - 101,077 250,000 9.25% Senior Notes due 2017 (2) - 249,452 750,000 4.14% Promissory Note due 2017 4,001 4,006 4,343 Debt premium, 8.25% Senior Notes due 2018 (1) - - 29,459 Original issue discount, 11.0% Notes due 2020 - - (51,104) Original issue discount, 3.0% Senior Convertible Notes due 2018 - - (45,782) Derivative instruments premium financing - - 10,647 Capital lease obligations 500 714 869 Total debt 78,497 2,863,844 4,608,432 Less: current maturities 4,268 99,836 11,395 Less: liabilities subject to compromise (see Note 3) - 2,764,008 - Total long-term debt $ 74,229 $ - $ 4,597,037 _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ (1) Represents unamortized premium on the 8.25% Senior Notes due 2018 assumed in the EPL Acquisition. (2) In accordance with the Plan, on the Emergence Date, all outstanding obligations under these notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled . |
Maturities of Long-Term Debt | Maturities of long-term debt as of December 31, 2016 are as follows (in thousands ) Twelve Months Ending December 31, 2017 $ 4,268 2018 233 2019 73,996 2020 - 2021 - Thereafter - $ 78,497 |
Interest Expense | Interest expense consisted of the following ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Prepetition Revolving Credit Facility $ 11,670 $ 15,703 $ 25,506 $ 13,956 11.0% Second Lien Notes due 2020 - 125,852 48,505 - 8.25% Senior Notes due 2018 - 27,899 42,075 3,507 6.875% Senior Notes due 2024 - 18,033 44,701 4,096 3.0% Senior Convertible Notes due 2018 - 9,340 12,000 7,266 7.50% Senior Notes due 2021 - 17,414 37,500 28,542 7.75% Senior Notes due 2019 - 8,200 19,375 19,375 9.25% Senior Notes due 2017 - 44,944 69,375 69,375 4.14% Promissory Note due 2017 - 130 192 210 Amortization of debt issue cost - Prepetition Revolving Credit Facility 725 5,185 12,491 3,076 Accretion of original debt issue discount, 11.0% Second Lien Notes due 2020 - 6,249 2,358 - Accretion of original debt issue discount, 11.0% Second Lien Notes due 2020 - accelerated - 44,855 - - Amortization of debt issue cost – 11.0% Second Lien Notes due 2020 - 5,047 1,887 - Amortization of debt issue cost – 11.0% Second Lien Notes due 2020 - accelerated - 36,243 - - Amortization of fair value premium – 8.25% Senior Notes due 2018 - (8,818) (11,108) (841) Amortization of fair value premium – 8.25% Senior Notes due 2018 - accelerated - (7,961) - - Amortization of debt issue cost – 6.875% Senior Notes due 2024 - 457 1,127 102 Amortization of debt issue cost – 6.875% Senior Notes due 2024 - accelerated - 1,946 - - Accretion of original debt issue discount, 3.0% Senior Convertible Notes due 2018 - 8,917 11,232 6,418 Accretion of original debt issue discount, 3.0% Senior Convertible Notes due 2018 - accelerated - 33,370 - - Amortization of debt issue cost – 3.0% Senior Convertible Notes due 2018 - 1,142 1,439 801 Amortization of debt issue cost – 3.0% Senior Convertible Notes due 2018 - accelerated - 4,271 - - Amortization of debt issue cost – 7.50% Senior Notes due 2021 - 478 1,051 783 Amortization of debt issue cost – 7.50% Senior Notes due 2021 - accelerated - 2,822 - - Amortization of debt issue cost – 7.75% Senior Notes due 2019 - 168 388 388 Amortization of debt issue cost – 7.75% Senior Notes due 2019 - accelerated - 491 - - Amortization of debt issue cost – 9.25% Senior Notes due 2017 - 1,902 2,358 2,206 Amortization of debt issue cost – 9.25% Senior Notes due 2017 - accelerated - 913 - - Derivative instruments financing and other 185 466 856 987 Bridge commitment fee - - - 2,481 $ 12,580 $ 405,658 $ 323,308 $ 162,728 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligations [Abstract] | |
Changes in Asset Retirement Obligations | The following table describes the changes in our asset retirement obligations ( in thousands ): Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 Beginning of period total (Predecessor) $ 537,619 $ 487,085 $ 559,834 Liabilities acquired - 66,700 - Liabilities incurred and true-up to liabilities settled 13,880 34,167 40,820 Liabilities settled (18,852) (78,273) (106,573) Liabilities sold - - (65,752) Revisions* (3,896) (36,750) 8,675 Accretion expense 38,973 64,690 50,081 End of period total (Predecessor) 567,724 537,619 487,085 Less: End of period, current portion (Predecessor) 71,717 33,286 End of period, noncurrent portion (Predecessor) $ 465,902 $ 453,799 Fair value fresh start adjustments 185,640 Less: End of period, current portion (Successor) 56,601 End of period, noncurrent portion (Successor) $ 696,763 * This downward revision for the year ended June 30, 2016 was primarily due to declining service costs resulting from the decline in commodity prices and decrease in demand for oil field services due to excess capacity. |
Derivative Financial Instrume39
Derivative Financial Instruments (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments [Abstract] | |
Fair Values of Derivative Instruments in Consolidated Balance Sheets | The fair value of our derivative instruments in our consolidated balance sheets were as follows ( in thousands ) Predecessor Asset Derivative Instruments Liability Derivative Instruments June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivative financial instruments Current $ - Current $ 51,024 Current $ - Current $ 31,456 Non- Current - Non- Current 11,980 Non- Current - Non- Current 9,440 Total Gross Commodity Derivative Instruments subject to enforceable master netting agreement - 63,004 - 40,896 Derivative financial instruments Current - Current (28,795) Current - Current (28,795) Non- Current - Non- Current (8,082) Non- Current - Non- Current (8,082) Total gross amounts offset in Balance Sheets - (36,877) - (36,877) Net amounts presented in Balance Sheets Current - Current 22,229 Current - Current 2,661 Non- Current - Non- Current 3,898 Non- Current - Non- Current 1,358 $ - $ 26,127 $ - $ 4,019 |
Schedule of Derivative Instruments Gain (Loss) in Statement of Financial Performance | The following table presents information about the components of the gain (loss) on derivative instruments ( in thousands ) . Predecessor Year Ended June 30, Gain (loss) on derivative financial instruments 2016 2015 2014 Cash Settlements, net of purchased put premium amortization $ 59,081 $ 81,049 $ (17,312) Proceeds from monetizations 50,588 102,354 - Change in fair value (19,163) 52,036 (69,656) Total gain (loss) on derivative financial instruments $ 90,506 $ 235,439 $ (86,968) |
Supplemental Cash Flow Inform40
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | The following table presents our supplemental cash flow information ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Cash paid for interest $ 7,493 $ 229,569 $ 243,238 $ 139,575 Cash paid for income taxes - 150 933 3,641 |
Non-Cash Investing and Financing Activities | Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Cash paid for interest $ 7,493 $ 229,569 $ 243,238 $ 139,575 Cash paid for income taxes - 150 933 3,641 The following table presents our non-cash investing and financing activities ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Financing of insurance premiums $ - $ - $ - $ 21,967 Derivative instruments premium financing - - 12,025 11,257 Changes in capital expenditures accrued in accounts payable 10,242 (37,151) (168,569) 115,696 Acquisition of property against joint interest billings receivable (1,500) - - - Inventory transferred to oil and natural gas properties - 7,081 - - Changes in asset retirement obligations 9,984 (2,583) 49,495 299,225 Monetization of derivative instruments applied to Revolving Credit Facility - 50,588 - - Treasury stock reissued for the EPL Acquisition - - - 154,717 Common stock issued for the EPL Acquisition - - - 337,588 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |
Defined Contribution Plans | Prior to the Emergence Date, the Predecessor Company’s employees were covered by a discretionary noncontributory profit sharing plan. The plan provided for annual discretionary employer contributions that could vary from year to year. The Predecessor Company also sponsored a qualified 401(k) Plan that provided for matching. Pursuant to the terms of the Plan, on the Emergence Date we assumed the Predecessor Company’s defined contribution plans. The contributions under these plans were as follows ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Profit Sharing Plan $ - $ - $ (768) $ 4,833 401(k) Plan 638 2,852 3,192 3,395 Total contributions $ 638 $ 2,852 $ 2,424 $ 8,228 |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Earnings (Loss) per Share [Abstract] | |
Calculation of Basic and Diluted Earnings (Loss) per Share | The following table sets forth the calculation of basic and diluted earnings (loss) per share (“EPS”) ( in thousands, except per share data ): Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 Net income (loss) $ (406,275) $ 2,653,903 $ (1,918,751) $ (2,433,838) $ 18,125 Preferred stock dividends - - 8,394 11,468 11,489 Net income (loss) attributable to common stockholders $ (406,275) $ 2,653,903 $ (1,927,145) $ (2,445,306) $ 6,636 Weighted average shares outstanding for basic EPS 33,212 98,337 95,822 94,167 74,375 Add dilutive securities - 6,450 - - 70 Weighted average shares outstanding for diluted EPS 33,212 104,787 95,822 94,167 74,445 Earnings (loss) per share Basic $ (12.23) $ 26.99 $ (20.11) $ (25.97) $ 0.09 Diluted $ (12.23) $ 25.33 $ (20.11) $ (25.97) $ 0.09 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Future Minimum Lease Commitments Under Operating Leases | As of December 31, 2016, future minimum lease commitments under our operating leases are as follows ( in thousands ): Successor Year Ending December 31, 2017 $ 35,956 2018 36,017 2019 36,509 2020 43,545 2021 49,598 Thereafter 200,751 Total $ 402,376 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Before Income Tax | Our income (loss) before income taxes attributable to U.S. and non-U.S. operations are as follows ( in thousands ): Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 U.S. income (loss) $ (406,275) $ 2,656,509 $ (1,913,718) $ (3,050,659) $ 43,915 Non-U.S. income (loss) - (2,606) (5,120) 3,471 9,230 Income (loss) before income taxes $ (406,275) $ 2,653,903 $ (1,918,838) $ (3,047,188) $ 53,145 |
Components of Income Tax Provision | Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 U.S. income (loss) $ (406,275) $ 2,656,509 $ (1,913,718) $ (3,050,659) $ 43,915 Non-U.S. income (loss) - (2,606) (5,120) 3,471 9,230 Income (loss) before income taxes $ (406,275) $ 2,653,903 $ (1,918,838) $ (3,047,188) $ 53,145 The components of our income tax expense (benefit) are as follows ( in thousands ): Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 Current U.S. $ - $ - $ - $ 933 $ 3,641 Non U.S. - - - - - State - - (87) 99 - Total current - - (87) 1,032 3,641 Deferred U.S. - - - (564,569) 31,379 State - - - (49,813) - Total deferred - - - (614,382) 31,379 Total income tax expense (benefit) $ - $ - $ (87) $ (613,350) $ 35,020 |
Reconciliation of Statutory Income Tax Expense to Income Tax Provision | The following is a reconciliation of statutory income tax expense to our income tax provision (benefit) ( in thousands ): Successor Predecessor Six Months On Ended December 31, December 31, Year Ended June 30, 2016 2016 2016 2015 2014 Income (loss) before income taxes $ (406,275) $ 2,653,903 $ (1,918,838) $ (3,047,188) $ 53,145 Statutory rate 35% 35% 35% 35% 35% Income tax expense (benefit) computed at statutory rate (142,196) 928,866 (671,593) (1,066,516) 18,601 Reconciling items Federal withholding obligation - - 8,161 10,331 10,343 Nontaxable foreign income - - 1,791 91 (2,133) Change in valuation allowance 142,196 (1,029,335) 650,043 356,798 - State income taxes (benefit), net of federal tax benefit - - (87) (32,314) - Non-deductible executive compensation - - - - 2,725 Non-deductible transaction and restructuring costs - 31,699 - 440 1,853 Tax basis in shortfall on partnership dissolution - - 6,501 - - Fresh start adjustments to deferred tax balances: Asset retirement obligation - 190,923 - - - Net operating loss - 163,027 - - - Accrued interest expense - 115,560 - - - Oil and natural gas properties and other property and equipment - 615,146 - - - Deferred state income taxes - 54,793 - - - Withholding taxes - (81,635) - - - Cancellation of stockholders deficit - (290,665) - - - Cancellation of indebtedness income - (702,972) - - - Other fresh start deferred income taxes, net - 3,788 - - - Goodwill impairment - - - 115,253 - Other – Net - 805 5,097 2,567 3,631 Income tax expense (benefit) $ - $ - $ (87) $ (613,350) $ 35,020 |
Components of Deferred Taxes | The components of deferred taxes are detailed in the table below ( in thousands ): Successor Predecessor On December 31, June 30, 2016 2016 2015 Deferred tax assets – non current Oil, natural gas properties and other property and equipment $ - $ 646,294 $ - Asset retirement obligation 263,677 190,923 170,480 Tax loss carryforwards on U.S. operations - 99,612 458,530 Accrued interest expense - 115,560 106,039 Deferred state taxes - 54,793 54,973 Derivative instruments and other - - 4,879 Other 11,830 23,056 14,851 Total deferred tax assets – non current 275,507 1,130,238 809,752 Deferred tax liabilities Oil, natural gas properties and other property and equipment (101,045) - (272,502) Federal withholding obligation - (81,635) (73,474) Cancellation of debt - (9,680) (9,680) Employee benefit plans - (9,588) (9,588) Dismantlement - - (9,086) Tax partnership activity - - (56,130) Total deferred tax liabilities – non current (101,045) (100,903) (430,460) Valuation allowance (174,462) (1,029,335) (379,292) Net deferred tax asset (liability) $ - $ - $ - |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Fair Value [Abstract] | |
Fair Value of Financial Instruments | The following table presents the fair value of our Level 1 and Level 2 financial instruments ( in thousands ): Predecessor Level 1 Level 2 As of June 30, As of June 30, As of June 30, As of June 30, 2016 2015 2016 2015 Assets: Oil and natural gas derivatives $ - $ - $ - $ 63,004 Liabilities: Oil and natural gas derivatives $ - $ - $ - $ 40,896 Restricted stock units 87 6,325 - - Time-based performance units 988 1,978 - - Total liabilities $ 1,075 $ 8,303 $ - $ 40,896 |
Schedule of Carrying Values and Estimated Fair Values of Long-Term Indebtedness | Predecessor Level 1 Level 2 As of June 30, As of June 30, As of June 30, As of June 30, 2016 2015 2016 2015 Assets: Oil and natural gas derivatives $ - $ - $ - $ 63,004 Liabilities: Oil and natural gas derivatives $ - $ - $ - $ 40,896 Restricted stock units 87 6,325 - - Time-based performance units 988 1,978 - - Total liabilities $ 1,075 $ 8,303 $ - $ 40,896 The following table sets forth the carrying values and estimated fair values of our long-term debt instruments which are classified as Level 2 financial instruments ( in thousands ): Successor Predecessor December 31, 2016 June 30, 2016 June 30, 2015 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Prepetition Revolving Credit Facility (1) $ - $ - $ 99,836 $ 99,836 $ 150,000 $ 150,000 Exit Facility 73,996 73,996 - - - - 11.0% Senior Secured Second Lien Notes due 2020 (1) - - 1,450,000 587,250 1,398,896 1,276,000 8.25% Senior Notes due 2018 (1) - - 213,677 28,633 539,459 306,000 6.875% Senior Notes due 2024 (1) - - 143,993 16,559 650,000 211,250 3.0% Senior Convertible Notes due 2018 (1) - - 363,018 1,472 354,218 94,000 7.5% Senior Notes due 2021 (1) - - 238,071 25,807 500,000 164,925 7.75% Senior Notes due 2019 (1) - - 101,077 9,875 250,000 92,135 9.25% Senior Notes due 2017 (1) - - 249,452 25,943 750,000 413,160 Total $ 73,996 $ 73,996 $ 2,859,124 $ 795,375 $ 4,592,573 $ 2,707,470 |
Schedule of Changes in Level 3 Financial Instruments | The following table sets forth our Level 3 financial instruments ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 Liabilities: Performance-based performance units Balance at beginning of period $ - $ 33 $ 6,910 Vested - (775) - Grants charged to general and administrative expense - 760 (6,877) Balance at end of period $ - $ 18 $ 33 |
Prepayments and Accrued Liabi46
Prepayments and Accrued Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Prepayments and Accrued Liabilities [Abstract] | |
Components of Prepayments and Accrued Liabilities | Prepayments and accrued liabilities consist of the following ( in thousands ): Successor Predecessor December 31, June 30, 2016 2016 2015 Prepaid expenses and other current assets Advances to joint interest partners $ 650 $ 974 $ 1,294 Insurance 9,600 13,726 3,427 Inventory 470 423 7,867 Royalty deposit 1,273 2,168 3,137 Debt issuance costs - 2,571 - Other 13,964 9,166 8,573 Total prepaid expenses and other current assets $ 25,957 $ 29,028 $ 24,298 Accrued liabilities Advances from joint interest partners 374 - 3,060 Employee benefits and payroll 4,491 7,377 18,927 Interest payable 233 - 83,384 Accrued hedge payable - - 1,399 Undistributed oil and gas proceeds 22,715 12,611 19,776 Severance taxes payable 628 619 843 Escrowed reorganization expenses 25,987 - - Other 9,232 19,821 27,917 Total accrued liabilities $ 63,660 $ 40,428 $ 155,306 |
Comparative Period Information
Comparative Period Information (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Comparative Period Information [Abstract] | |
Schedule of Certain Transitional Financial Information | The following tables present certain transition and comparative period financial information for the six month period ended December 31, 2016 and 2015, respectively. Predecessor Six Months Ended December 31, 2016 (1) 2015 (2) (Unaudited) (In thousands) Total Revenues $ 295,676 $ 442,438 Operating loss (82,029) (2,431,348) Income (loss) before income taxes 2,653,903 (1,883,924) Income tax expense (benefit) - 51 Net Income (loss) $ 2,653,903 $ (1,883,975) Preferred stock dividends - 5,664 Net Income (Loss) Attributable to Common Stockholders $ 2,653,903 $ (1,889,639) Earnings (Loss) per Share Basic $ 26.99 $ (19.91) Diluted $ 25.33 $ (19.91) Weighted Average Number of Common Shares Outstanding Basic 98,337 94,926 Diluted 104,787 94,926 Predecessor Six Months Ended December 31, 2016 2015 (Unaudited) (In thousands) Net cash used in operating activities $ (17,473) $ (89,924) Net cash provided by (used in) investing activities 11,706 (82,872) Net cash used in financing activities (32,123) (258,162) Net decrease in cash and cash equivalents $ (37,890) $ (430,958) _________________ (1) Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,0 08.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. (2) Included in Operating income (loss) is impairment of oil and natural gas properties of $2,330.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $748.6 million. |
Selected Quarterly Financial 48
Selected Quarterly Financial Data (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Selected Quarterly Financial Data [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited quarterly financial data are as follows ( in thousands, except per share amounts ): Predecessor Quarter Ended December 31, (7) September 30, (6) June 30, (2) March 31, (3) December 31, (4) September 30, (5) 2016 2016 2016 2016 2015 2015 Revenues $ 153,065 $ 142,611 $ 147,804 $ 116,285 $ 184,615 $ 257,823 Operating income (loss) 11,708 (93,737) (168,211) (417,866) (1,513,148) (918,200) Net income (loss) $ 2,785,049 $ (131,146) $ (195,552) $ 160,776 $ (1,310,583) $ (573,392) Preferred stock dividends - - 352 2,378 2,810 2,854 Net income (loss) attributable to common stockholders $ 2,785,049 $ (131,146) $ (195,904) $ 158,398 $ (1,313,393) $ (576,246) Net income (loss) per share attributable to common stockholders (1) Basic $ 28.17 $ (1.34) $ (2.01) $ 1.65 $ (13.81) $ (6.08) Diluted 26.58 (1.34) (2.01) 1.55 (13.81) (6.08) _______________________ (1) The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter. (2) Included in Operating income (loss) is impairment of oil and natural gas properties of $1 42.6 million. (3) Included in Operating income (loss) is impairment of oil and natural gas properties of $340.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $777.0 million. (4) Included in Operating income (loss) is impairment of oil and natural gas properties of $1,425.8 million and also included in Net income (loss) is gain on early extinguishment of debt of $290.3 million. (5) Included in Operating income (loss) is impairment of oil and natural gas properties of $904.7 million and also included in Net income (loss) is gain on early extinguishment of debt of $458.3 million. (6) Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million. (7) Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $ 2,0 08.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. Predecessor Quarter Ended June 30, (2) March 31, (3) December 31, (4) September 30, 2015 2015 2014 2014 Revenues $ 219,460 $ 221,580 $ 502,971 $ 461,441 Operating income (loss) (1,952,080) (698,583) (168,420) 108,192 Net income (loss) $ (1,690,004) $ (495,061) $ (275,963) $ 27,190 Preferred stock dividends 2,864 2,862 2,870 2,872 Net income (loss) attributable to common stockholders $ (1,692,868) $ (497,923) $ (278,833) $ 24,318 Net income (loss) per share attributable to common stockholders (1) Basic $ (17.92) $ (5.27) $ (2.97) $ 0.26 Diluted (17.92) (5.27) (2.97) 0.24 _______________________ (1) The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter. (2) Included in Operating income (loss) is impairment of oil and natural gas properties of $1,852.3 million. (3) Included in Operating income (loss) is impairment of oil and natural gas properties of $569.6 million. (4) Included in Operating income (loss) is goodwill impairment of $329.3 million. |
Supplementary Oil and Gas Inf49
Supplementary Oil and Gas Information (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Supplementary Oil and Gas Information [Abstract] | |
Costs Incurred for Oil and Gas Property Acquisition, Exploration and Development Activities | The supplementary data presented reflects information for all of our oil and natural gas producing activities. Costs incurred for oil and natural gas property acquisition, exploration and development activities are as follows ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Property acquisitions Proved $ 1,500 $ 26,400 $ - $ 2,046,879 Unevaluated - - 2,304 924,882 Exploration costs - 1,400 38,183 153,136 Development costs 22,300 57,400 608,605 632,262 |
Estimated Quantities of Proved Domestic Oil and Gas Reserves and Changes in Quantities of Proved Developed And Undeveloped Reserves | Estimated quantities of proved domestic oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves in thousands of barrels (“MBbls”) and millions of cubic feet (“MMcf”) for each of the periods indicated were as follows: Oil Natural Gas Total (MBbls) (MMcf) (MBOE) Proved reserves at June 30, 2013 (Predecessor) 133,647 269,121 178,500 Production (10,978) (32,754) (16,437) Extensions and discoveries 17,141 19,703 20,424 Revisions of previous estimates (3,567) (29,822) (8,537) Sales of reserves (4,159) (3,378) (4,722) Purchases of reserves 53,305 141,986 76,970 Proved reserves at June 30, 2014 (Predecessor) 185,389 364,856 246,198 Production (15,259) (37,472) (21,504) Extensions and discoveries 10,573 40,330 17,295 Revisions of previous estimates (33,730) (75,617) (46,333) Sales of reserves (9,901) (13,554) (12,160) Proved reserves at June 30, 2015 (Predecessor) 137,072 278,543 183,496 Production (13,547) (33,973) (19,209) Extensions and discoveries 1,416 1,729 1,704 Revisions of previous estimates (64,584) (158,681) (91,031) Purchases of reserves 6,016 33,529 11,604 Proved reserves at June 30, 2016 (Predecessor) 66,373 121,147 86,564 Production (5,649) (13,485) (7,897) Extensions and discoveries 32,221 27,788 36,852 Revisions of previous estimates 5,453 5,788 6,418 Proved reserves at December 31, 2016 (Successor) 98,398 141,238 121,937 Proved developed reserves June 30, 2013 (Predecessor) 80,223 175,623 109,493 June 30, 2014 (Predecessor) 112,789 222,916 149,942 June 30, 2015 (Predecessor) 94,013 187,993 125,345 June 30, 2016 (Predecessor) 66,373 121,147 86,564 December 31, 2016 (Successor) 66,505 113,603 85,439 Proved undeveloped reserves June 30, 2013 (Predecessor) 53,424 93,498 69,007 June 30, 2014 (Predecessor) 72,600 141,940 96,256 June 30, 2015 (Predecessor) 43,059 90,550 58,151 June 30, 2016 (Predecessor) - - - December 31, 2016 (Successor) 31,892 27,635 36,498 |
Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Gas Reserves | The standardized measure of discounted future net cash flows related to our proved oil and natural gas reserves follows ( in thousands ): Predecessor As of December 31, As of June 30, 2016 2016 2015 2014 Future cash inflows $ 4,344,985 $ 2,966,317 $ 10,641,151 $ 20,162,506 Less related future Production costs 2,648,363 2,223,645 4,131,526 5,500,669 Development and abandonment costs 1,587,527 1,033,717 1,970,526 2,959,994 Income taxes - - 168,655 2,546,155 Future net cash flows 109,095 (291,045) 4,370,444 9,155,688 Less: Ten percent annual discount for estimated timing of cash flows (26,315) (349,398) 1,613,034 3,208,163 Standardized measure of discounted future net cash flows (Predecessor) $ 58,353 $ 2,757,410 $ 5,947,525 Standardized measure of discounted future net cash flows (Successor) $ 135,410 |
Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows Applicable to Proved Crude Oil and Natural Gas Reserves | A summary of the changes in the standardized measure of discounted future net cash flows applicable to proved oil and natural gas reserves follows ( in thousands ): Predecessor Six Months Ended December 31, Year Ended June 30, 2016 2016 2015 2014 Beginning of period (Predecessor) $ 58,353 $ 2,757,410 $ 5,947,525 $ 4,481,522 Revisions of previous estimates Changes in prices and costs (104,993) (3,287,459) (2,959,883) (196,159) Changes in quantities 53,585 (214,631) (2,390,099) (389,570) Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs 325,892 26,911 201,234 533,133 Purchases (sales) of reserves in place - 212,961 (244,507) 1,735,957 Accretion of discount (893) 215,297 760,175 614,964 Sales, net of production and gathering and transportation costs (131,947) (212,581) (676,949) (836,019) Net change in income taxes - 77,025 1,576,954 14,134 Changes in rate of production and other (2,704) 4,189 (191,668) (253,290) Development costs incurred 11,283 10,493 237,173 247,865 Changes in estimated future development and abandonment costs (73,166) 468,738 497,455 (5,012) Net change 77,057 (2,699,057) (3,190,115) 1,466,003 End of period (Predecessor) $ 58,353 $ 2,757,410 $ 5,947,525 End of period (Successor) $ 135,410 |
Organization (Narrative) (Detai
Organization (Narrative) (Details) | Feb. 02, 2017USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 30, 2016USD ($)$ / sharesshares | Mar. 12, 2015 | Jun. 03, 2014 | May 27, 2014 | Nov. 18, 2013 | Sep. 26, 2013 | Feb. 25, 2011 | Dec. 17, 2010 | Jun. 30, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)ft$ / sharesshares | Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Oct. 25, 2016USD ($) | May 19, 2016$ / sharesshares |
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Date petition for bankruptcy filed | Apr. 14, 2016 | ||||||||||||||||||||||
Court where petition was filed | United States Bankruptcy Court for the Southern District of Texas, Houston Division | ||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.005 | |||||||||||||||||||||
Credit facility | $ | $ 69,300,000 | ||||||||||||||||||||||
Number of shares issued | 33,211,594 | ||||||||||||||||||||||
Percentage of shares of common stock | 100.00% | ||||||||||||||||||||||
Capital stock, shares authorized | 110,000,000 | ||||||||||||||||||||||
Common stock, shares authorized | 100,000,000 | 200,000,000 | |||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | ||||||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.01 | ||||||||||||||||||||||
Maximum [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Distance of water from the Gulf of Mexico Shelf | ft | 1,000 | ||||||||||||||||||||||
John D. Schiller, Jr. [Member] | Subsequent Event [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Officers' compensation per month | $ | $ 50,000 | ||||||||||||||||||||||
Lump sum severance payable | $ | $ 2,000,000 | ||||||||||||||||||||||
Successor [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Impairment of oil and natural gas properties | $ | $ 406,275,000 | ||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||||||||||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | |||||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||||||||||||||||||||
Predecessor [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Impairment of oil and natural gas properties | $ | $ 142,600,000 | $ 340,500,000 | $ 1,425,800,000 | $ 904,700,000 | $ 1,852,300,000 | $ 569,600,000 | $ 329,300,000 | $ 86,820,000 | $ 2,330,500,000 | $ 2,813,570,000 | $ 2,421,884,000 | ||||||||||||
Common stock, par value | $ / shares | $ 0.005 | $ 0.005 | $ 0.005 | $ 0.005 | |||||||||||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||||||||||||
Preferred stock, shares authorized | 7,500,000 | 7,500,000 | 7,500,000 | 7,500,000 | |||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument, stated interest rate | 11.00% | ||||||||||||||||||||||
Debt maturity date | Mar. 15, 2020 | ||||||||||||||||||||||
Number of shares issued | 27,897,739 | ||||||||||||||||||||||
6.875% Senior Notes Due 2024 [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument, stated interest rate | 6.875% | ||||||||||||||||||||||
Debt maturity date | Mar. 15, 2024 | ||||||||||||||||||||||
7.50% Senior Notes Due 2021 [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument, stated interest rate | 7.50% | ||||||||||||||||||||||
Debt maturity date | Dec. 15, 2021 | ||||||||||||||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument, stated interest rate | 7.75% | ||||||||||||||||||||||
Debt maturity date | Jun. 15, 2019 | ||||||||||||||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument, stated interest rate | 9.25% | ||||||||||||||||||||||
Debt maturity date | Dec. 15, 2017 | ||||||||||||||||||||||
8.25% Senior Notes Due 2018 [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument, stated interest rate | 8.25% | ||||||||||||||||||||||
Debt maturity date | Feb. 15, 2018 | ||||||||||||||||||||||
8.25% Senior Notes Due 2018 [Member] | Warrant [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Number of warrants issued | 847,956 | ||||||||||||||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument, stated interest rate | 3.00% | ||||||||||||||||||||||
Debt maturity date | Dec. 31, 2018 | ||||||||||||||||||||||
Number of shares issued | 915,385 | ||||||||||||||||||||||
Number of warrants issued | 915,385 | ||||||||||||||||||||||
EGC Unsecured Notes [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Number of shares issued | 3,985,391 | ||||||||||||||||||||||
EGC Unsecured Notes [Member] | Warrant [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Number of warrants issued | 1,271,933 | ||||||||||||||||||||||
EPL Unsecured Notes [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Number of shares issued | 1,328,464 | ||||||||||||||||||||||
EPL Unsecured Notes [Member] | Warrant [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Number of warrants issued | 847,956 | ||||||||||||||||||||||
EGC and EPL Unsecured Notes [Member] | Warrant [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Number of warrants issued | 2,119,889 | ||||||||||||||||||||||
Exit Facility [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument term | 3 years | ||||||||||||||||||||||
Credit facility | $ | $ 74,000,000 | $ 74,000,000 | |||||||||||||||||||||
Exit Facility [Member] | Minimum [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Percentage of subsidiary guarantors proved reserves and proved developed producing reserves secured by mortgages | 90.00% | ||||||||||||||||||||||
Exit Term Loan Facility [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument term | 3 years | ||||||||||||||||||||||
Credit facility | $ | $ 74,000,000 | ||||||||||||||||||||||
Exit Revolving Credit Facility [Member] | |||||||||||||||||||||||
Organization And Significant Accounting Policies [Line Items] | |||||||||||||||||||||||
Debt instrument term | 3 years | ||||||||||||||||||||||
Letter of credit | $ | $ 200,000,000 | $ 225,000,000 | $ 200,000,000 | ||||||||||||||||||||
Percentage of subsidiary guarantors proved reserves and proved developed producing reserves secured by mortgages | 90.00% |
Summary of Significant Accoun51
Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2016 | Dec. 29, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 30, 2016 | May 19, 2016 |
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Allowance for doubtful accounts receivable | $ 0 | $ 3,200 | $ 0 | $ 0 | $ 3,200 | $ 0 | ||||||||||
Common stock, par value | $ 0.01 | $ 0.005 | ||||||||||||||
Preferred stock, par value | $ 0.01 | |||||||||||||||
Capitalized general and administrative expense | $ 7,800 | 17,000 | 49,200 | $ 64,500 | ||||||||||||
U.S. statutory income tax rate | 35.00% | |||||||||||||||
Maximum [Member] | ||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Unproved properties, amortization period | 4 years | |||||||||||||||
Maximum [Member] | Other Property [Member] | ||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Useful life of properties | 5 years | |||||||||||||||
Minimum [Member] | Other Property [Member] | ||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Useful life of properties | 3 years | |||||||||||||||
Successor [Member] | ||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Impairment of oil and natural gas properties | $ 406,275 | |||||||||||||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||||||||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||||||||||||
Valuation allowance against net deferred tax assets | $ 174,462 | $ 174,462 | ||||||||||||||
Goodwill impairment | ||||||||||||||||
U.S. statutory income tax rate | 35.00% | |||||||||||||||
Required reduction on tax attributes | $ 2,600,000 | |||||||||||||||
Predecessor [Member] | ||||||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||||||
Impairment of oil and natural gas properties | $ 142,600 | $ 340,500 | $ 1,425,800 | $ 904,700 | $ 1,852,300 | $ 569,600 | $ 329,300 | $ 86,820 | $ 2,330,500 | $ 2,813,570 | $ 2,421,884 | |||||
Common stock, par value | $ 0.005 | $ 0.005 | $ 0.005 | $ 0.005 | ||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||
U.S. withholding tax rate on any interest payments | 30.00% | |||||||||||||||
Valuation allowance against net deferred tax assets | $ 1,029,335 | $ 379,292 | $ 1,029,335 | $ 379,292 | ||||||||||||
Goodwill impairment | $ 329,293 | |||||||||||||||
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Chapter 11 Proceedings (Narrati
Chapter 11 Proceedings (Narrative) (Details) $ in Thousands | Feb. 03, 2017USD ($)claim | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2015USD ($) | Nov. 18, 2013USD ($) | |
Predecessor [Member] | |||||||
Liquidity and Capital Resources [Line Items] | |||||||
Interest expense not accrued | $ 52,800 | $ 123,700 | $ 176,500 | ||||
Long term debt | 2,863,844 | $ 4,608,432 | |||||
Subsequent Event [Member] | |||||||
Liquidity and Capital Resources [Line Items] | |||||||
Approximate number of claims filed with the Bankruptcy Court against Debtors | claim | 1,686 | ||||||
Approximate amount of claim filed with the Bankruptcy Court against Debtors | $ 43,359,000 | ||||||
Revolving Credit Facility [Member] | Predecessor [Member] | |||||||
Liquidity and Capital Resources [Line Items] | |||||||
Long term debt | [1] | 99,836 | 150,000 | ||||
3.0% Senior Convertible Notes due 2018 [Member] | |||||||
Liquidity and Capital Resources [Line Items] | |||||||
Debt discount | $ 63,400 | ||||||
3.0% Senior Convertible Notes due 2018 [Member] | Predecessor [Member] | |||||||
Liquidity and Capital Resources [Line Items] | |||||||
Debt discount | 45,782 | ||||||
Long term debt | [1] | $ 363,018 | $ 400,000 | ||||
[1] | In accordance with the Plan, on the Emergence Date, all outstanding obligations under these notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. |
Chapter 11 Proceedings (Schedul
Chapter 11 Proceedings (Schedule of Liabilities Subject to Compromise) (Details) - USD ($) $ in Thousands | Mar. 12, 2015 | Jun. 03, 2014 | May 27, 2014 | Nov. 18, 2013 | Sep. 26, 2013 | Feb. 25, 2011 | Dec. 17, 2010 | Sep. 30, 2012 | Dec. 31, 2016 | Jun. 30, 2016 |
11.0% Senior Secured Second Lien Notes due 2020 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Rate of interest on notes payable | 11.00% | |||||||||
Debt maturity date | Mar. 15, 2020 | |||||||||
8.25% Senior Notes Due 2018 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Rate of interest on notes payable | 8.25% | |||||||||
Debt maturity date | Feb. 15, 2018 | |||||||||
6.875% Senior Notes Due 2024 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Rate of interest on notes payable | 6.875% | |||||||||
Debt maturity date | Mar. 15, 2024 | |||||||||
3.0% Senior Convertible Notes due 2018 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Rate of interest on notes payable | 3.00% | |||||||||
Debt maturity date | Dec. 31, 2018 | |||||||||
7.50% Senior Notes Due 2021 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Rate of interest on notes payable | 7.50% | |||||||||
Debt maturity date | Dec. 15, 2021 | |||||||||
7.75 Percent Senior Notes Due 2019 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Rate of interest on notes payable | 7.75% | |||||||||
Debt maturity date | Jun. 15, 2019 | |||||||||
9.25 Percent Senior Notes Due 2017 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Rate of interest on notes payable | 9.25% | |||||||||
Debt maturity date | Dec. 15, 2017 | |||||||||
4.14% Promissory Note Due 2017 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Rate of interest on notes payable | 4.14% | |||||||||
Debt maturity date | Oct. 30, 2017 | |||||||||
Predecessor [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | $ 2,763,739 | $ 2,764,008 | ||||||||
Accounts payable | 38,202 | |||||||||
Accrued liabilities | 133,938 | |||||||||
Total liabilities subject to compromise | 2,934,619 | 2,936,148 | ||||||||
Predecessor [Member] | 11.0% Senior Secured Second Lien Notes due 2020 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | 1,450,000 | 1,450,000 | ||||||||
Predecessor [Member] | 8.25% Senior Notes Due 2018 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | 213,677 | 213,677 | ||||||||
Predecessor [Member] | 6.875% Senior Notes Due 2024 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | 143,993 | 143,993 | ||||||||
Predecessor [Member] | 3.0% Senior Convertible Notes due 2018 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | 363,018 | 363,018 | ||||||||
Predecessor [Member] | 7.50% Senior Notes Due 2021 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | 238,071 | 238,071 | ||||||||
Predecessor [Member] | 7.75 Percent Senior Notes Due 2019 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | 101,077 | 101,077 | ||||||||
Predecessor [Member] | 9.25 Percent Senior Notes Due 2017 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | 249,452 | 249,452 | ||||||||
Predecessor [Member] | 4.14% Promissory Note Due 2017 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | 4,001 | 4,006 | ||||||||
Predecessor [Member] | Capital Lease Obligations [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | $ 450 | |||||||||
Predecessor [Member] | Capital Lease Obligations [Member] | 4.14% Promissory Note Due 2017 [Member] | ||||||||||
Liquidity and Capital Resources [Line Items] | ||||||||||
Less: liabilities subject to compromise (see Note 3) | $ 714 |
Fresh Start Accounting (Narrati
Fresh Start Accounting (Narrative) (Details) $ / shares in Units, $ in Thousands | Dec. 31, 2016USD ($)$ / bbl | Dec. 30, 2016USD ($)$ / sharesshares | Dec. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 29, 2016USD ($) | Oct. 25, 2016USD ($) | Mar. 31, 2016shares |
Fresh-Start Adjustment [Line Items] | |||||||
Discounted rate of risk adjusted after tax cash flows | 11.10% | ||||||
Credit adjusted risk free rate | 6.50% | ||||||
Asset retirement obligation, fair value | $ 753,400 | $ 753,400 | |||||
Inflation escalation factor rate | 2.00% | ||||||
Amount of reinstated claim reclassified from liabilities subject to compromise | $ 3,400 | 3,400 | |||||
Reinstated claim reclassified from other receivables | 1,000 | 1,000 | |||||
Reinstated claim reclassified from accrued liabilities | 2,400 | 2,400 | |||||
Credit facility | $ 69,300 | ||||||
Number of shares issued | shares | 33,211,594 | 33,211,594 | |||||
Warrant exerciseable date | Dec. 30, 2021 | ||||||
Exercise price of warrant | $ / shares | $ 43.66 | $ 43.66 | |||||
Fair value of warrant | $ / shares | $ 3.80 | ||||||
Success fee | 12,653 | ||||||
Successor [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Estimated enterprise value of the company | 793,700 | 793,700 | |||||
Fair Value of proved reserve | 1,127,600 | 1,127,600 | |||||
Value of probable reserves | 295,300 | 295,300 | |||||
Value of possible reserves | 80,800 | 80,800 | |||||
Debt issuance costs | |||||||
Impairment of oil and natural gas properties | 406,275 | ||||||
Cash payments made prior to the Emergence Date | 13,964 | 13,964 | |||||
Successor [Member] | Maximum [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Enterprise value of successor company estimated by the Bankruptcy court | 900,000 | 900,000 | |||||
Successor [Member] | Minimum [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Enterprise value of successor company estimated by the Bankruptcy court | 600,000 | 600,000 | |||||
Exit Facility [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Credit facility | $ 74,000 | $ 74,000 | |||||
Debt instrument term | 3 years | ||||||
Exit Facility [Member] | Minimum [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Percentage of subsidiary guarantors proved reserves and proved developed producing reserves secured by mortgages | 90.00% | ||||||
Exit Revolving Credit Facility [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Percentage of subsidiary guarantors proved reserves and proved developed producing reserves secured by mortgages | 90.00% | ||||||
Debt instrument term | 3 years | ||||||
Revolving Credit Facility [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Credit facility | $ 74,000 | $ 74,000 | |||||
Restructuring Advisors [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Cash payments made prior to the Emergence Date | $ 3,500 | ||||||
Success fee | $ 11,000 | ||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Number of shares issued | shares | 27,897,739 | 27,897,739 | |||||
3.0% Senior Convertible Notes due 2018 [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Number of shares issued | shares | 915,385 | ||||||
Number of warrants issued | shares | 915,385 | ||||||
3.0% Senior Convertible Notes due 2018 [Member] | Convertible Notes Trustee [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Cash payments made prior to the Emergence Date | 2,000 | ||||||
EGC and EPL Unsecured Notes [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Accrued professional fees | $ 1,700 | $ 1,700 | |||||
EGC Unsecured Notes [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Number of shares issued | shares | 3,985,391 | 3,985,391 | |||||
EGC Unsecured Notes [Member] | Plan Support Parties [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Cash payments made prior to the Emergence Date | 11,200 | ||||||
EPL Unsecured Notes [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Number of shares issued | shares | 1,328,464 | 1,328,464 | |||||
EPL Unsecured Notes [Member] | Plan Support Parties [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Cash payments made prior to the Emergence Date | $ 9,600 | ||||||
Oil Reserves [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Weighted average commodity prices utilized in the determination of fair value | $ / bbl | 60.37 | ||||||
Natural Gas Reserves [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Weighted average commodity prices utilized in the determination of fair value | $ / bbl | 3.02 | ||||||
Natural Gas Liquids [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Weighted average commodity prices utilized in the determination of fair value | $ / bbl | 25.36 | ||||||
Warrant [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Exercise price of warrant | $ / shares | $ 43.66 | $ 43.66 | |||||
Fair value of warrant | $ / shares | $ 3.80 | ||||||
Warrant [Member] | EGC and EPL Unsecured Notes [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Number of warrants issued | shares | 2,119,889 | ||||||
Warrants, fair value | $ 8,100 | $ 8,100 | |||||
Warrant [Member] | EGC Unsecured Notes [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Number of warrants issued | shares | 1,271,933 | ||||||
Warrant [Member] | EPL Unsecured Notes [Member] | |||||||
Fresh-Start Adjustment [Line Items] | |||||||
Number of warrants issued | shares | 847,956 |
Fresh Start Accounting (Reconci
Fresh Start Accounting (Reconciliation of Enterprise Value to the Estimated Fair Value of the Successor Company) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Enterprise Value to the Estimated Fair Value [Member] | |
Enterprise Value | $ 793,747 |
Add: Cash and cash equivalents | 165,368 |
Less: Fair value of debt | (78,497) |
Fair Value of Successor common stock and warrants | 880,618 |
Less: Fair value of warrants | (8,056) |
Fair Value of Successor common stock | 872,562 |
Enterprise Value to the Estimated Reorganization Value [Member] | |
Enterprise Value | 793,747 |
Add: Cash and cash equivalents | 165,368 |
Add: Other working capital liabilities | 164,777 |
Add: Other long-term liabilities | 14,481 |
Add: Asset retirement obligation | 753,364 |
Reorganization value of Successor assets | $ 1,891,737 |
Fresh Start Accounting (Reorgan
Fresh Start Accounting (Reorganization and Application of ASC 852 and the Convenience Date Ceiling Test) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reorganization Adjustments [Member] | |||||||
Current Assets | |||||||
Cash and cash equivalents | [1] | $ 551 | |||||
Accounts receivable, net | |||||||
Other | [2] | (965) | |||||
Prepaid expenses and other current assets | [3] | (26,260) | |||||
Restricted cash | [1] | (551) | |||||
Total Current Assets | (27,225) | ||||||
Other Assets | |||||||
Total Assets | (27,225) | ||||||
Current Liabilities | |||||||
Accounts payable | [2] | 33,241 | |||||
Accrued liabilities | [2],[4] | 15,160 | |||||
Current maturities of long-term debt | [5] | (69,778) | |||||
Total Current Liabilities | (21,377) | ||||||
Long-term debt, less current maturities | [5] | 74,229 | |||||
Other liabilities | [2] | 2,345 | |||||
Total Liabilities Not Subject to Compromise | 55,197 | ||||||
Less: liabilities subject to compromise (see Note 3) | [6] | (2,934,619) | |||||
Total Liabilities | (2,879,422) | ||||||
Stockholders' Equity (Deficit) | |||||||
Accumulated deficit | [7] | 3,817,934 | |||||
Stockholders' Equity (Deficit) | 2,852,197 | ||||||
Total Liabilities and Stockholders' Equity (Deficit) | (27,225) | ||||||
Fresh-Start Adjustments [Member] | |||||||
Accounts receivable, net | |||||||
Prepaid expenses and other current assets | [8] | (1,883) | |||||
Total Current Assets | (1,883) | ||||||
Property and Equipment | |||||||
Oil and natural gas properties, net | [9] | 1,003,640 | |||||
Other property and equipment, net | [10] | 3,758 | |||||
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | 1,007,398 | ||||||
Other Assets | |||||||
Other assets and debt issuance costs, net of accumulated amortization | [11] | (1,930) | |||||
Total Other Assets | (1,930) | ||||||
Total Assets | 1,003,585 | ||||||
Current Liabilities | |||||||
Asset retirement obligations | [12] | (1,936) | |||||
Total Current Liabilities | (1,936) | ||||||
Asset retirement obligations | [12] | 187,576 | |||||
Other liabilities | [13] | (12,526) | |||||
Total Liabilities Not Subject to Compromise | 173,114 | ||||||
Total Liabilities | 173,114 | ||||||
Stockholders' Equity (Deficit) | |||||||
Accumulated deficit | [14] | 830,471 | |||||
Stockholders' Equity (Deficit) | 830,471 | ||||||
Total Liabilities and Stockholders' Equity (Deficit) | 1,003,585 | ||||||
Successor Company Before Impairment [Member] | |||||||
Current Assets | |||||||
Cash and cash equivalents | 165,368 | ||||||
Accounts receivable, net | |||||||
Oil and natural gas sales | 68,143 | ||||||
Joint interest billings | 5,600 | ||||||
Other | 17,944 | ||||||
Prepaid expenses and other current assets | 25,957 | ||||||
Restricted cash | 32,337 | ||||||
Total Current Assets | 315,349 | ||||||
Property and Equipment | |||||||
Oil and natural gas properties, net | 1,503,754 | ||||||
Other property and equipment, net | 18,807 | ||||||
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | 1,522,561 | ||||||
Other Assets | |||||||
Restricted cash | 25,583 | ||||||
Other assets and debt issuance costs, net of accumulated amortization | 28,244 | ||||||
Total Other Assets | 53,827 | ||||||
Total Assets | 1,891,737 | ||||||
Current Liabilities | |||||||
Accounts payable | 101,117 | ||||||
Accrued liabilities | 63,660 | ||||||
Asset retirement obligations | 56,601 | ||||||
Current maturities of long-term debt | 4,268 | ||||||
Total Current Liabilities | 225,646 | ||||||
Long-term debt, less current maturities | 74,229 | ||||||
Asset retirement obligations | 696,763 | ||||||
Other liabilities | 14,481 | ||||||
Total Liabilities Not Subject to Compromise | 1,011,119 | ||||||
Total Liabilities | 1,011,119 | ||||||
Stockholders' Equity (Deficit) | |||||||
Stockholders' Equity (Deficit) | 880,618 | ||||||
Total Liabilities and Stockholders' Equity (Deficit) | 1,891,737 | ||||||
Impairment [Member] | |||||||
Property and Equipment | |||||||
Oil and natural gas properties, net | (406,275) | ||||||
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | (406,275) | ||||||
Other Assets | |||||||
Total Assets | (406,275) | ||||||
Stockholders' Equity (Deficit) | |||||||
Accumulated deficit | (406,275) | ||||||
Stockholders' Equity (Deficit) | (406,275) | ||||||
Total Liabilities and Stockholders' Equity (Deficit) | (406,275) | ||||||
Successor [Member] | |||||||
Current Assets | |||||||
Cash and cash equivalents | 165,368 | $ 165,368 | |||||
Accounts receivable, net | |||||||
Oil and natural gas sales | 68,143 | ||||||
Joint interest billings | 5,600 | ||||||
Other | 17,944 | ||||||
Prepaid expenses and other current assets | 25,957 | ||||||
Restricted cash | 32,337 | ||||||
Total Current Assets | 315,349 | ||||||
Property and Equipment | |||||||
Oil and natural gas properties, net | 1,097,479 | ||||||
Other property and equipment, net | 18,807 | ||||||
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | 1,116,286 | ||||||
Other Assets | |||||||
Restricted cash | 25,583 | ||||||
Other assets and debt issuance costs, net of accumulated amortization | 28,244 | ||||||
Total Other Assets | 53,827 | ||||||
Total Assets | 1,485,462 | ||||||
Current Liabilities | |||||||
Accounts payable | 101,117 | ||||||
Accrued liabilities | 63,660 | ||||||
Asset retirement obligations | 56,601 | ||||||
Current maturities of long-term debt | 4,268 | ||||||
Total Current Liabilities | 225,646 | ||||||
Long-term debt, less current maturities | 74,229 | ||||||
Asset retirement obligations | 696,763 | ||||||
Other liabilities | 14,481 | ||||||
Total Liabilities Not Subject to Compromise | 1,011,119 | ||||||
Total Liabilities | 1,011,119 | ||||||
Stockholders' Equity (Deficit) | |||||||
Common stock | 332 | ||||||
Additional paid-in capital | 880,286 | ||||||
Accumulated deficit | (406,275) | ||||||
Stockholders' Equity (Deficit) | 474,343 | ||||||
Total Liabilities and Stockholders' Equity (Deficit) | 1,485,462 | ||||||
Successor [Member] | Reorganization Adjustments [Member] | |||||||
Stockholders' Equity (Deficit) | |||||||
Common stock | [15] | 332 | |||||
Additional paid-in capital | [15] | 880,286 | |||||
Successor [Member] | Successor Company Before Impairment [Member] | |||||||
Stockholders' Equity (Deficit) | |||||||
Common stock | 332 | ||||||
Additional paid-in capital | 880,286 | ||||||
Predecessor [Member] | |||||||
Current Assets | |||||||
Cash and cash equivalents | 165,368 | $ 203,258 | $ 756,848 | $ 145,806 | |||
Accounts receivable, net | |||||||
Oil and natural gas sales | 63,644 | 100,243 | |||||
Joint interest billings | 8,770 | 12,433 | |||||
Other | 5,219 | 43,513 | |||||
Prepaid expenses and other current assets | 29,028 | 24,298 | |||||
Restricted cash | 38,965 | 9,359 | |||||
Total Current Assets | 348,884 | 968,923 | |||||
Property and Equipment | |||||||
Oil and natural gas properties, net | 603,155 | 3,570,759 | |||||
Other property and equipment, net | 17,610 | 21,820 | |||||
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | 620,765 | 3,592,579 | |||||
Other Assets | |||||||
Restricted cash | 25,548 | 32,667 | |||||
Other assets and debt issuance costs, net of accumulated amortization | 30,237 | 81,927 | |||||
Total Other Assets | 55,785 | 129,327 | |||||
Total Assets | 1,025,434 | 4,690,829 | |||||
Current Liabilities | |||||||
Accounts payable | 44,184 | 156,339 | |||||
Accrued liabilities | 40,428 | 155,306 | |||||
Asset retirement obligations | 71,717 | 33,286 | |||||
Current maturities of long-term debt | 99,836 | 11,395 | |||||
Total Current Liabilities | 256,165 | 358,987 | |||||
Long-term debt, less current maturities | 4,597,037 | ||||||
Asset retirement obligations | 465,902 | 453,799 | |||||
Other liabilities | 21,304 | 8,370 | |||||
Total Liabilities Not Subject to Compromise | 743,371 | 5,419,551 | |||||
Less: liabilities subject to compromise (see Note 3) | 2,934,619 | 2,936,148 | |||||
Total Liabilities | 3,679,519 | 5,419,551 | |||||
Stockholders' Equity (Deficit) | |||||||
Common stock | 488 | 472 | |||||
Additional paid-in capital | 1,845,684 | 1,843,918 | |||||
Accumulated deficit | (4,500,258) | (2,573,113) | |||||
Stockholders' Equity (Deficit) | 1 | (2,654,085) | (728,722) | 1,734,560 | $ 1,367,935 | ||
Total Liabilities and Stockholders' Equity (Deficit) | 1,025,434 | 4,690,829 | |||||
Predecessor [Member] | Before Adjustments and Impairment [Member] | |||||||
Current Assets | |||||||
Cash and cash equivalents | 164,817 | ||||||
Accounts receivable, net | |||||||
Oil and natural gas sales | 68,143 | ||||||
Joint interest billings | 5,600 | ||||||
Other | 18,909 | ||||||
Prepaid expenses and other current assets | 54,100 | ||||||
Restricted cash | 32,888 | ||||||
Total Current Assets | 344,457 | ||||||
Property and Equipment | |||||||
Oil and natural gas properties, net | 500,114 | ||||||
Other property and equipment, net | 15,049 | ||||||
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | 515,163 | ||||||
Other Assets | |||||||
Restricted cash | 25,583 | ||||||
Other assets and debt issuance costs, net of accumulated amortization | 30,174 | ||||||
Total Other Assets | 55,757 | ||||||
Total Assets | 915,377 | ||||||
Current Liabilities | |||||||
Accounts payable | 67,876 | ||||||
Accrued liabilities | 48,500 | ||||||
Asset retirement obligations | 58,537 | ||||||
Current maturities of long-term debt | 74,046 | ||||||
Total Current Liabilities | 248,959 | ||||||
Asset retirement obligations | 509,187 | ||||||
Other liabilities | 24,662 | ||||||
Total Liabilities Not Subject to Compromise | 782,808 | ||||||
Less: liabilities subject to compromise (see Note 3) | 2,934,619 | ||||||
Total Liabilities | 3,717,427 | ||||||
Stockholders' Equity (Deficit) | |||||||
Common stock | 504 | ||||||
Additional paid-in capital | 1,845,851 | ||||||
Accumulated deficit | (4,648,405) | ||||||
Stockholders' Equity (Deficit) | (2,802,050) | ||||||
Total Liabilities and Stockholders' Equity (Deficit) | 915,377 | ||||||
Predecessor [Member] | Reorganization Adjustments [Member] | |||||||
Stockholders' Equity (Deficit) | |||||||
Common stock | [16] | (504) | |||||
Additional paid-in capital | [16] | (1,845,851) | |||||
5.625% Convertible Perpetual Preferred Stock [Member] | Predecessor [Member] | |||||||
Stockholders' Equity (Deficit) | |||||||
Preferred stock | 1 | 1 | |||||
Stockholders' Equity (Deficit) | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 | ||
[1] | Reflects the reclassification of the utility deposit from restricted cash to cash and cash equivalents. | ||||||
[2] | Represents reinstated claims that were reclassified from liabilities subject to compromise at Emergence Date and will be settled in cash. Of the approximate $3.4 million claims reinstated to accrued liabilities, approximately $1.0 million of the reinstated claims were applied against other receivables in accordance with the right of offset approved by the Bankruptcy Court and the remaining approximately $2.4 million of reinstated claims were reclassified to accrued liabilities. | ||||||
[3] | Represents cash payments made prior to the Convenience Date to the following parties in accordance with the Plan (i) approximately $11.2 million to the Plan support parties of the EGC Unsecured Noteholders for professional fees, (ii) approximately $9.6 million to the Plan support parties of the EPL Unsecured Noteholders for professional fees, (iii) approximately $2 million for EXXI Ltd's 3.0% Senior Convertible Notes Trustee, and (iv) approximately $3.5 million for success fees paid to EXXI Ltd's restructuring advisors. The amounts were recorded as prepaid expenses on the Emergence Date and subsequently reflected as effects of the Plan on the Convenience Date. | ||||||
[4] | Represents success fee accrual of $11 million payable to restructuring advisors and a professional fee accrual of $1.7 million payable to the Plan support parties of EGC and EPL Unsecured Noteholders. | ||||||
[5] | Represents the reclassification of the revolving credit facility and the reinstated claims related to 4.14% promissory note and capital lease obligations. | ||||||
[6] | Liabilities subject to compromise were settled as noted below (in thousands):OnDecember 31,2016Predecessor Debt11.0% Senior Secured Second Lien Notes due 2020$ 1,450,0008.25% Senior Notes due 2018 213,6776.875% Senior Notes due 2024 143,9933.0% Senior Convertible Notes due 2018 363,0187.5% Senior Notes due 2021 238,0717.75% Senior Notes due 2019 101,0779.25% Senior Notes due 2017 249,4524.14% Promissory Note due 2017 4,001Capital lease obligations 450Total debt 2,763,739Accounts payable 37,424Accrued liabilities 133,456Total liabilities subject to compromise 2,934,619Fair value of equity and warrants issued per the Plan (880,618)Fair value of reinstated accounts payable and accrued liabilities to be settled in cash (43,509)Cash payment for 3.0% Senior Convertible Notes (2,000)Gain on settlement of liabilities subject to compromise$ 2,008,492 | ||||||
[7] | The cumulative impact of the reorganization adjustments is as below (in thousands):December 31,2016Gain on settlement of liabilities subject to compromise$ 2,008,492Cancellation of EXXI Ltd equity 1,846,355Accrual of success fee (12,653)Payments made of plan support parties (24,260)Net impact to accumulated deficit$ 3,817,934 | ||||||
[8] | Represents the write off of the unamortized deferred financing costs related to the Prepetition Credit Facility. | ||||||
[9] | In estimating the fair value of its oil and natural gas properties, the Company used a combination of the income and market approaches. For purposes of estimating fair value of the Company's proved, probable and possible reserves, an income approach was used which estimated fair value based on the anticipated cash flows associated with the Company's reserves, risked by reserve category and discounted using a weighted average cost of capital of 11.1%. Weighted average commodity prices utilized in the determination of the fair value of oil and natural gas properties were $60.37 per barrel of oil, $3.02 per MMBtu of natural gas and $25.36 per barrel of NGL, after adjusting for regional pricing differentials. The proved reserve locations were limited to wells expected to be drilled in the Company's five year development plan. Base pricing was derived from strip prices on the December 30, 2016 and subsequently increased at an inflation escalation factor of 2.0% after the fourth year. | ||||||
[10] | In estimating the fair value of the other property and equipment, the Company primarily employed a combination of cost and market approaches. These assets were primarily evaluated using a replacement cost methodology and also obtaining market-based pricing indicators for certain assets which had active secondary markets. | ||||||
[11] | Represents the removal of catering business goodwill and deferred lease expenses. | ||||||
[12] | Represents the adjustment of asset retirement obligations to fair value using estimated plugging and abandonment costs as of December 31, 2016, adjusted for inflation using a rate of 2% and then discounted at the credit-adjusted risk free rate of 6.5%. The fair value of asset retirement obligation was estimated at $753.4 million. | ||||||
[13] | Represents the removal of deferred rent liabilities. | ||||||
[14] | Represents the cumulative effects of the fresh-start accounting adjustments. | ||||||
[15] | Represents the issuance of Successor equity. The Successor Company issued a total of 33,211,594 shares of its common stock, of which 27,897,739 shares of common stock were issued to the Second Lien Holders, 3,985,391 shares of common stock was issued to the holders of EGC Unsecured Notes and 1,328,464 shares of common stock was issued to the EPL Unsecured Notes. The Successor equity is subject to dilution by exercise of 1,271,933 warrants issued to the holders of EGC Unsecured Noteholders and 847,956 warrants issued the EPL Unsecured Noteholders for 2,119,889 shares of common stock with an initial exercise price of $43.66. The fair value of the warrants was estimated at $8.1 million or $3.80 per warrant, using the Black-Scholes Option pricing valuation model. | ||||||
[16] | Reflects the cancellation of EXXI Ltd's equity. |
Fresh Start Accounting (Reorg57
Fresh Start Accounting (Reorganization and Application of ASC 852 and the Convenience Date Ceiling Test) (Liabilities Subject to Compromise) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Gain on settlement of liabilities subject to compromise | $ 2,008,492 | |||
Predecessor [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 2,763,739 | $ 2,763,739 | $ 2,764,008 | |
Accounts payable | 37,424 | 37,424 | ||
Accrued liabilities | 133,456 | 133,456 | ||
Total liabilities subject to compromise | 2,934,619 | 2,934,619 | 2,936,148 | |
Fair value of equity and warrants issued per the Plan | (880,618) | (880,618) | ||
Fair value of reinstated accounts payable and accrued liabilities to be settled in cash | (43,509) | (43,509) | ||
Cash payment for 3.0% Senior Convertible Notes | (2,000) | (2,000) | ||
Gain on settlement of liabilities subject to compromise | 2,008,492 | 2,008,492 | ||
Liabilities including liabilities subject to compromise | 3,679,519 | $ 5,419,551 | ||
Predecessor [Member] | 11.0% Senior Secured Second Lien Notes due 2020 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 1,450,000 | 1,450,000 | 1,450,000 | |
Predecessor [Member] | 8.25% Senior Notes Due 2018 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 213,677 | 213,677 | 213,677 | |
Predecessor [Member] | 6.875% Senior Notes Due 2024 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 143,993 | 143,993 | 143,993 | |
Predecessor [Member] | 3.0% Senior Convertible Notes due 2018 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 363,018 | 363,018 | 363,018 | |
Predecessor [Member] | 7.50% Senior Notes Due 2021 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 238,071 | 238,071 | 238,071 | |
Predecessor [Member] | 7.75 Percent Senior Notes Due 2019 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 101,077 | 101,077 | 101,077 | |
Predecessor [Member] | 9.25 Percent Senior Notes Due 2017 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 249,452 | 249,452 | 249,452 | |
Predecessor [Member] | 4.14% Promissory Note Due 2017 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | 4,001 | 4,001 | 4,006 | |
Predecessor [Member] | Capital Lease Obligations [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | $ 450 | $ 450 | ||
Predecessor [Member] | Capital Lease Obligations [Member] | 4.14% Promissory Note Due 2017 [Member] | ||||
Less: liabilities subject to compromise (see Note 3) | $ 714 |
Fresh Start Accounting (Reorg58
Fresh Start Accounting (Reorganization and Application of ASC 852 and the Convenience Date Ceiling Test) (Reorganization Adjustments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Fresh Start Accounting [Abstract] | |
Gain on settlement of liabilities subject to compromise | $ 2,008,492 |
Cancellation of EXXI Ltd equity | 1,846,355 |
Accrual of success fee | (12,653) |
Payments made of plan support parties | (24,260) |
Net impact to accumulated deficit | $ 3,817,934 |
Fresh Start Accounting (Summary
Fresh Start Accounting (Summary of Reorganization Items) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 |
Gain on settlement of liabilities subject to compromise | $ 2,008,492 | ||
Predecessor [Member] | |||
Gain on settlement of liabilities subject to compromise | $ 2,008,492 | $ 2,008,492 | |
Fresh start adjustments | 830,471 | ||
Reorganization legal and professional fees and expenses | (90,568) | $ (14,201) | |
Gain (loss) on reorganization items | $ 2,748,395 | $ (14,201) |
Acquisitions and Dispositions60
Acquisitions and Dispositions (Narrative) (Details) $ in Thousands | Dec. 31, 2016USD ($)$ / bbl | Aug. 11, 2015USD ($)$ / MMBTU$ / bbl | Dec. 31, 2016USD ($)$ / bbl | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Predecessor [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Goodwill impairment | $ 329,293 | |||||
Asset retirement obligation | $ 567,724 | $ 567,724 | $ 537,619 | 487,085 | $ 559,834 | |
Exploration and development costs | 20,237 | $ 111,884 | 723,829 | $ 788,676 | ||
Eugene Island 330 and South Marsh Island 128 [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Royalty interest, production proceeds period | 4 years | |||||
Grand Isle Corridor, LP [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cash consideration from the sale of business | 245,000 | |||||
Reduction to the cost pool related to divestiture of business | $ 248,900 | |||||
Whitney Oil & Gas, LLC [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Royalty interest, production proceeds threshold per BBL | $ / bbl | 65 | 65 | ||||
Cash consideration from the sale of business | $ 21,000 | |||||
Reduction to the cost pool related to divestiture of business | 68,900 | |||||
Gain (loss) on disposition of oil and gas property | 0 | |||||
Asset retirement obligation | $ 55,100 | $ 55,100 | ||||
First installment amount received | 5,000 | |||||
Percentage of overriding royalty interest retained | 5.00% | |||||
Maximum period for retained overriding royalty interest | 5 years | |||||
Amount of overriding royalty interest retained | $ 7,000 | |||||
Percentage of deep rights retained | 50.00% | |||||
Business acquisition cash consideration after post closing adjustments | 20,300 | |||||
Maximum receivable under the overriding royalty interest | 6,400 | |||||
Energy XXI M21K LLC [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Date of acquisition | Aug. 11, 2015 | |||||
Effective date of acquisition | Aug. 1, 2015 | |||||
First lien credit facility | $ 25,200 | |||||
Royalty interest, production proceeds threshold per BBL | $ / bbl | 65 | |||||
Royalty interest, production proceeds threshold per MMBTU | $ / MMBTU | 3.50 | |||||
Royalty interest, production proceeds period | 4 years | |||||
Royalty interest, production proceeds aggregate amount | $ 20,000 | |||||
Percentage of investments under the equity method | 20.00% | |||||
Current borrowing base | $ 40,000 | |||||
Revolving Credit Facility [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Debt maturity date | Apr. 9, 2018 |
Acquisitions and Dispositions61
Acquisitions and Dispositions (EPL Acquisition) (Narrative) (Details) | Jun. 03, 2014USD ($)$ / sharesshares | Jun. 03, 2014USD ($)$ / shares | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | May 27, 2015USD ($) | May 27, 2014USD ($) | |
Business Acquisition [Line Items] | ||||||||
Shares issued upon the closing of EPL acquisition | shares | 23,320,955 | |||||||
EPL Oil & Gas, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Date of acquisition | Jun. 3, 2014 | |||||||
Percentage of aggregate consideration paid in cash | 65.00% | 65.00% | ||||||
Percentage of aggregate consideration paid in common shares | 35.00% | 35.00% | ||||||
Cash value of purchase price | $ 1,012,000,000 | |||||||
Shares issued upon the closing of EPL acquisition | shares | 23,321,000 | |||||||
Total cash value of purchase price | $ 1,504,300,000 | $ 1,504,300,000 | ||||||
Acquisition related costs, included in selling, general and administrative expenses | $ 13,600,000 | |||||||
Cash acquired in acquisition | $ 206,075,000 | $ 206,075,000 | ||||||
Operating income (loss) | $ 255,800,000 | $ 542,800,000 | ||||||
Net income (loss) | $ (1,060,200,000) | (1,298,700,000) | ||||||
Gain on sale of assets accounted under the successful efforts method of accounting | 1,800,000 | |||||||
Increase in DD&A expense | 65,300,000 | |||||||
EPL Oil & Gas, Inc. [Member] | Stock Option [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, per share price of acquiree's share | $ / shares | $ 39 | $ 39 | ||||||
Cash per share, acquirer | $ / shares | $ 39 | $ 39 | ||||||
Cash value of purchase price | $ 32,600,000 | |||||||
EPL stock options converted | shares | 836,311 | |||||||
Total cash value of purchase price | $ 32,600,000 | $ 32,600,000 | ||||||
EPL Oil & Gas, Inc. [Member] | Cash Election [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Share conversion ratio | 0.5595 | |||||||
Cash per share, acquirer | $ / shares | $ 25.92 | $ 25.92 | ||||||
Cash value of purchase price | $ 792,600,000 | |||||||
Shares issued upon the closing of EPL acquisition | shares | 17,108,300 | |||||||
Total cash value of purchase price | $ 1,153,800,000 | $ 1,153,800,000 | ||||||
EPL Oil & Gas, Inc. [Member] | Mixed Election [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Share conversion ratio | [1] | 0.584 | ||||||
Cash per share, acquirer | $ / shares | [1] | $ 25.35 | $ 25.35 | |||||
Cash value of purchase price | [1] | $ 186,800,000 | ||||||
Shares issued upon the closing of EPL acquisition | shares | [1] | 4,303,700 | ||||||
Total cash value of purchase price | [1] | $ 277,600,000 | $ 277,600,000 | |||||
EPL Oil & Gas, Inc. [Member] | Stock Election [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Share conversion ratio | 1.669 | |||||||
Shares issued upon the closing of EPL acquisition | shares | 1,909,000 | |||||||
Total cash value of purchase price | $ 40,300,000 | $ 40,300,000 | ||||||
8.25% Senior Notes Due 2018 [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, stated interest rate | 8.25% | 8.25% | ||||||
Face value of note payable | $ 510,000,000 | $ 510,000,000 | ||||||
8.25% Senior Notes Due 2018 [Member] | EPL Oil & Gas, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Increase (decrease) in interest expense | $ (12,300,000) | |||||||
6.875% Senior Notes Due 2024 [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Debt instrument, stated interest rate | 6.875% | |||||||
Face value of note payable | $ 650,000,000 | $ 650,000,000 | ||||||
6.875% Senior Notes Due 2024 [Member] | EPL Oil & Gas, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Increase (decrease) in interest expense | $ 50,000,000 | |||||||
[1] | Includes 4.7 million EPL shares that were held by EPL stockholders that did not make an election prior to the May 30, 2014 election deadline. |
Acquisitions and Dispositions62
Acquisitions and Dispositions (Purchase Price Allocations to the Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jun. 03, 2014 | Dec. 31, 2016 | Jun. 30, 2014 | Aug. 11, 2015 | |
Business Acquisition [Line Items] | |||||
Oil and natural gas properties - evaluated | $ 73,910 | ||||
Oil and natural gas properties - unevaluated | 39,278 | ||||
ARO (Current and long-term) | (66,700) | ||||
Net working Capital | [1] | (21,301) | |||
Fair value of debt assumed | (25,187) | ||||
Cash included in the net working capital | $ 1 | ||||
U.S. statutory income tax rate | 35.00% | ||||
EPL Oil & Gas, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Current assets (excluding deferred income taxes) | $ 302,866 | ||||
Oil and natural gas properties - evaluated | [2] | 2,032,323 | |||
Oil and natural gas properties - unevaluated | [2] | 901,782 | |||
Other property and equipment, net | 7,787 | ||||
Other assets | 7,225 | ||||
Current liabilities (excluding ARO) | (316,707) | ||||
ARO (Current and long-term) | (273,372) | ||||
Debt (current and long-term) | (1,026,407) | ||||
Deferred income taxes | [3] | (459,004) | |||
Other long-term liabilities | (1,445) | ||||
Total fair value, excluding goodwill | 1,175,048 | ||||
Goodwill | [4],[5] | 329,293 | |||
Less cash acquired | 206,075 | ||||
Cash paid | 1,504,300 | ||||
Total purchase price | $ 1,298,266 | ||||
Effective Income Tax Rate Reconciliation, Percent, Total | 37.00% | ||||
U.S. statutory income tax rate | 35.00% | ||||
Weighted average statutory state tax rate | 2.00% | ||||
Amount reimbursed to Chevron after the EPL acquisition | $ 2,100 | ||||
Increase in EPL's goodwill due to the reimbursement to Chevron | $ 2,100 | ||||
EPL Oil & Gas, Inc. [Member] | As Reported [Member] | |||||
Business Acquisition [Line Items] | |||||
Current assets (excluding deferred income taxes) | $ 301,592 | ||||
Oil and natural gas properties - evaluated | [2] | 1,919,699 | |||
Oil and natural gas properties - unevaluated | [2] | 41,896 | |||
Other property and equipment, net | 7,787 | ||||
Other assets | 16,227 | ||||
Current liabilities (excluding ARO) | (314,649) | ||||
ARO (Current and long-term) | (260,161) | ||||
Debt (current and long-term) | (973,440) | ||||
Deferred income taxes | [3] | (118,359) | |||
Other long-term liabilities | (2,242) | ||||
Total fair value, excluding goodwill | 618,350 | ||||
Total purchase price | 618,350 | ||||
EPL Oil & Gas, Inc. [Member] | Fair Value Adjustment [Member] | |||||
Business Acquisition [Line Items] | |||||
Current assets (excluding deferred income taxes) | 1,274 | ||||
Oil and natural gas properties - evaluated | [2] | 112,624 | |||
Oil and natural gas properties - unevaluated | [2] | 859,886 | |||
Other assets | (9,002) | ||||
Current liabilities (excluding ARO) | (2,058) | ||||
ARO (Current and long-term) | (13,211) | ||||
Debt (current and long-term) | (52,967) | ||||
Deferred income taxes | [3] | (340,645) | |||
Other long-term liabilities | 797 | ||||
Total fair value, excluding goodwill | 556,698 | ||||
Goodwill | [4],[5] | 329,293 | |||
Total purchase price | $ 885,991 | ||||
[1] | Net working capital includes approximately $1.0 million in cash. | ||||
[2] | EPL oil and gas properties were accounted for under the successful efforts method of accounting prior to the merger. After the merger, we are accounting for these oil and gas properties under the full cost method of accounting, which is consistent with our accounting policy. | ||||
[3] | Deferred income taxes have been recognized based on the estimated fair value adjustments to net assets using a 37% tax rate, which reflected the 35% federal statutory rate and a 2% weighted average of the applicable statutory state tax rates (net of federal benefit). | ||||
[4] | On April 2, 2013, EPL sold certain shallow water GoM Shelf oil and natural gas interests located within the non-operated Bay Marchand field to Chevron U.S.A. Inc. ("Chevron") with an effective date of January 1, 2013. In September 2014, we were informed by Chevron that the final settlement statement did not reflect a portion of the related production in the months of January 2013 and February 2013 totaling approximately $2.1 million. After review of relevant supporting documents, we agreed to reimburse Chevron approximately $2.1 million. This resulted in an increase in liabilities assumed in the EPL Acquisition and a corresponding increase in goodwill of approximately $2.1 million. | ||||
[5] | See Note 6 - "Goodwill" for more information regarding goodwill impairment at December 31, 2014. |
Acquisitions and Dispositions63
Acquisitions and Dispositions (Summary of Business Acquisition) (Details) $ / shares in Units, $ in Millions | Jun. 03, 2014USD ($)$ / sharesshares | Jun. 30, 2015shares | |
Business Acquisition [Line Items] | |||
Energy XXI Stock Issued | shares | 23,320,955 | ||
EPL Oil & Gas, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
EPL Shares | shares | 39,900,000 | 4,700,000 | |
Cash Paid | $ 1,012 | ||
Energy XXI Stock Issued | shares | 23,321,000 | ||
Cash value of Energy XXI stock issued | $ 492.3 | ||
Total Purchase Price Paid to EPL | $ 1,504.3 | ||
Cash Election [Member] | EPL Oil & Gas, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
EPL Shares | shares | 30,600,000 | ||
Cash per share, acquirer | $ / shares | $ 25.92 | ||
Energy XXI Stock | 0.5595 | ||
Cash Paid | $ 792.6 | ||
Energy XXI Stock Issued | shares | 17,108,300 | ||
Energy XXI Stock Price on June 3, 2014 | $ / shares | $ 21.11 | ||
Cash value of Energy XXI stock issued | $ 361.2 | ||
Total Purchase Price Paid to EPL | $ 1,153.8 | ||
Mixed Election [Member] | EPL Oil & Gas, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
EPL Shares | shares | [1] | 7,400,000 | |
Cash per share, acquirer | $ / shares | [1] | $ 25.35 | |
Energy XXI Stock | [1] | 0.584 | |
Cash Paid | [1] | $ 186.8 | |
Energy XXI Stock Issued | shares | [1] | 4,303,700 | |
Energy XXI Stock Price on June 3, 2014 | $ / shares | [1] | $ 21.11 | |
Cash value of Energy XXI stock issued | [1] | $ 90.8 | |
Total Purchase Price Paid to EPL | [1] | $ 277.6 | |
Stock Election [Member] | EPL Oil & Gas, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Energy XXI Stock | 1.669 | ||
Energy XXI Stock Issued | shares | 1,909,000 | ||
Energy XXI Stock Price on June 3, 2014 | $ / shares | $ 21.11 | ||
Cash value of Energy XXI stock issued | $ 40.3 | ||
Total Purchase Price Paid to EPL | $ 40.3 | ||
Stock Option [Member] | EPL Oil & Gas, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
EPL Shares | shares | 800,000 | ||
Cash per share, acquirer | $ / shares | $ 39 | ||
Cash per share, acquiree | $ / shares | $ 39 | ||
Cash Paid | $ 32.6 | ||
Total Purchase Price Paid to EPL | $ 32.6 | ||
Stock Option [Member] | Stock Election [Member] | EPL Oil & Gas, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
EPL Shares | shares | 1,100,000 | ||
[1] | Includes 4.7 million EPL shares that were held by EPL stockholders that did not make an election prior to the May 30, 2014 election deadline. |
Acquisitions and Dispositions64
Acquisitions and Dispositions (Summary of Pro Forma Financial Information) (Details) - EPL Oil & Gas, Inc. [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Jun. 30, 2014USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenues | $ 1,783,062 |
Net income (loss) from continuing operations | (45,233) |
Net income (loss) available to Energy XXI common stockholders | $ (56,722) |
Net income (loss) per share available to Energy XXI common stockholders: Basic | $ / shares | $ (0.76) |
Net income (loss) per share available to Energy XXI common stockholders: Diluted | $ / shares | $ (0.76) |
Exploration costs | $ 45,200 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2016segment | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | |
Goodwill [Line Items] | |||
Number of reporting units | segment | 1 | ||
Catering Business [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 800 | ||
Predecessor [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairment | $ 329,293 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)MMBoe | Dec. 31, 2015USD ($) | |
Proved undeveloped reserves MMBOE | MMBoe | 36.5 | |
Expected, development costs proved undeveloped reserves | $ 443.2 | |
Discount rate | 10.00% | |
Transferred to the Full Cost Pool [Member] | ||
Oil and natural gas properties - full cost method of accounting, unevaluated properties | $ 336.5 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Successor [Member] | |||
Oil and gas properties | |||
Proved properties | $ 1,127,616 | ||
Less: accumulated depreciation, depletion, amortization and impairment | (406,275) | ||
Proved properties, net | 721,341 | ||
Unevaluated properties | 376,138 | ||
Oil and gas properties, net | 1,097,479 | ||
Other property and equipment | 18,807 | ||
Other property and equipment, net | 18,807 | ||
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | $ 1,116,286 | ||
Predecessor [Member] | |||
Oil and gas properties | |||
Proved properties | $ 9,817,456 | $ 9,243,737 | |
Less: accumulated depreciation, depletion, amortization and impairment | (9,256,513) | (6,109,335) | |
Proved properties, net | 560,943 | 3,134,402 | |
Unevaluated properties | 42,212 | 436,357 | |
Oil and gas properties, net | 603,155 | 3,570,759 | |
Other property and equipment | 44,272 | 45,941 | |
Less: accumulated depreciation | (26,662) | (24,121) | |
Other property and equipment, net | 17,610 | 21,820 | |
Total Property and Equipment, net of accumulated depreciation, depletion, amortization and impairment | $ 620,765 | $ 3,592,579 |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) - USD ($) $ in Millions | Aug. 11, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Oct. 25, 2016 |
Schedule of Equity Method Investments [Line Items] | |||||
Amount of line of credit, borrowing base | $ 297.1 | ||||
Energy XXI M21K LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of investments under the equity method | 20.00% | ||||
Effective date of acquisition | Aug. 1, 2015 | ||||
Debt outstanding | $ 28 | ||||
Letters of credit outstanding | 1.2 | ||||
Amount of line of credit, borrowing base | 100 | ||||
Current borrowing base | 40 | ||||
Equity (loss) income | $ (10.7) | (17.4) | $ (4.3) | ||
Other-than-temporary investment related to investment | $ 11.8 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) $ in Millions | Dec. 31, 2016USD ($) | Dec. 30, 2016USD ($) | Mar. 12, 2015 | Jun. 03, 2014 | May 27, 2014 | Nov. 18, 2013 | Sep. 26, 2013 | Feb. 25, 2011 | Dec. 17, 2010 | Mar. 31, 2016USD ($) | Feb. 29, 2016USD ($) | Sep. 30, 2012 | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Oct. 25, 2016USD ($) |
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Senior Notes, repurchase amount | $ 215.9 | ||||||||||||||
Gain on repurchase of Senior Notes | $ 33.2 | 1,492.4 | |||||||||||||
Credit facility | $ 69.3 | ||||||||||||||
Amount of line of credit, borrowing base | 297.1 | ||||||||||||||
Percentage of aggregate outstanding principal amount of Exit term loan | 7.50% | ||||||||||||||
Amount of restricted cash withdrawn | $ 30.1 | ||||||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Debt instrument, stated interest rate | 11.00% | ||||||||||||||
Debt maturity date | Mar. 15, 2020 | ||||||||||||||
8.25% Senior Notes Due 2018 [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Senior Notes repurchased, face amount | 266.6 | ||||||||||||||
Debt instrument, stated interest rate | 8.25% | ||||||||||||||
Debt maturity date | Feb. 15, 2018 | ||||||||||||||
Senior Notes, repurchase amount | 296.3 | ||||||||||||||
6.875% Senior Notes Due 2024 [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Debt instrument, stated interest rate | 6.875% | ||||||||||||||
Debt maturity date | Mar. 15, 2024 | ||||||||||||||
Senior Notes, repurchase amount | 506 | ||||||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Senior Notes repurchased, face amount | $ 37 | ||||||||||||||
Debt instrument, stated interest rate | 3.00% | ||||||||||||||
Debt maturity date | Dec. 31, 2018 | ||||||||||||||
Gain on repurchase of Senior Notes | $ 33.2 | ||||||||||||||
7.50% Senior Notes Due 2021 [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Debt instrument, stated interest rate | 7.50% | ||||||||||||||
Debt maturity date | Dec. 15, 2021 | ||||||||||||||
Senior Notes, repurchase amount | 261.9 | ||||||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Senior Notes repurchased, face amount | $ 471.1 | ||||||||||||||
Debt instrument, stated interest rate | 9.25% | ||||||||||||||
Debt maturity date | Dec. 15, 2017 | ||||||||||||||
Senior Notes, repurchase amount | 500.6 | ||||||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Debt instrument, stated interest rate | 7.75% | ||||||||||||||
Debt maturity date | Jun. 15, 2019 | ||||||||||||||
Senior Notes, repurchase amount | $ 148.9 | ||||||||||||||
4.14% Promissory Note Due 2017 [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Debt instrument, stated interest rate | 4.14% | ||||||||||||||
Debt maturity date | Oct. 30, 2017 | ||||||||||||||
Exit Facility [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Credit facility | $ 74 | $ 74 | |||||||||||||
Debt instrument term | 3 years | ||||||||||||||
Minimum required liquidity | $ 90 | ||||||||||||||
Asset coverage ratio threshold to make mandatory payment on exit term loan | 1.50 | ||||||||||||||
Current ratio | 1 | 1 | |||||||||||||
Leverage ratio | 4 | 4 | |||||||||||||
Exit Term Loan Facility [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Credit facility | $ 74 | ||||||||||||||
Interest rate on Exit Facility in addition to Alternative Base Rate | 3.50% | ||||||||||||||
Interest rate on Exit Facility in addition to LIBOR | 4.50% | ||||||||||||||
Debt instrument term | 3 years | ||||||||||||||
Exit Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Interest rate on Exit Facility in addition to Alternative Base Rate | 3.50% | ||||||||||||||
Interest rate on Exit Facility in addition to LIBOR | 4.50% | ||||||||||||||
Debt instrument term | 3 years | ||||||||||||||
Estimated commitments reduction under Exit Revolving Facility | $ 12.5 | $ 12.5 | |||||||||||||
Estimated commitments percentage reduction under Exit Revolving Facility | 50.00% | ||||||||||||||
Percentage of subsidiary guarantors proved reserves and proved developed producing reserves secured by mortgages | 90.00% | ||||||||||||||
Letter of credit, rate of fees accrual | 4.50% | ||||||||||||||
Letter of credit, rate of issuance fee per annum | 0.25% | ||||||||||||||
Letter of credit, rate of quarterly commitment fee | 0.50% | ||||||||||||||
Letter of credit | $ 200 | $ 225 | $ 200 | ||||||||||||
Percentage of additional payment of interest in kind | 2.00% | ||||||||||||||
Payment of interest in-kind | $ 4.7 | ||||||||||||||
Exit Revolving Credit Facility [Member] | EPL Oil & Gas, Inc. [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Amount of line of credit, borrowing base | $ 99.4 | 99.4 | |||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Debt maturity date | Apr. 9, 2018 | ||||||||||||||
Credit facility | 74 | ||||||||||||||
Amount of line of credit, borrowing base | $ 327.2 | 327.2 | |||||||||||||
Letter of credit | $ 227.8 | ||||||||||||||
Letter of Credit [Member] | Exit Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument, Redemption [Line Items] | |||||||||||||||
Estimated commitments reduction under Exit Revolving Facility | $ 25 | $ 25 |
Long-Term Debt (High Yield Faci
Long-Term Debt (High Yield Facilities) (Narrative) (Details) | Jun. 01, 2015USD ($) | Mar. 12, 2015USD ($) | Jun. 03, 2014USD ($) | May 27, 2014USD ($) | Apr. 18, 2014USD ($) | Nov. 18, 2013USD ($)$ / shares | Nov. 08, 2013USD ($) | Sep. 26, 2013USD ($) | Jul. 08, 2011USD ($) | Feb. 25, 2011USD ($) | Dec. 17, 2010USD ($) | Mar. 31, 2016USD ($) | Feb. 29, 2016USD ($) | Sep. 30, 2012USD ($) | Dec. 31, 2016USD ($)shares | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 25, 2016USD ($) | Jun. 30, 2015USD ($) | May 27, 2015USD ($) | Mar. 12, 2014USD ($) |
Debt Instrument [Line Items] | |||||||||||||||||||||
Gain on repurchase of Senior Notes | $ 33,200,000 | $ 1,492,400,000 | |||||||||||||||||||
Credit facility | $ 69,300,000 | ||||||||||||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, stated interest rate | 11.00% | ||||||||||||||||||||
Debt maturity date | Mar. 15, 2020 | ||||||||||||||||||||
Net proceeds from issuance of debt | $ 1,355,000,000 | ||||||||||||||||||||
Face value of notes | $ 1,450,000,000 | ||||||||||||||||||||
Notes sold to investors, discount rate | 96.313% | ||||||||||||||||||||
Notes sold to investors, yield to maturity | 12.00% | ||||||||||||||||||||
Underwriting and direct offering costs | $ 41,700,000 | ||||||||||||||||||||
8.25% Senior Notes Due 2018 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, stated interest rate | 8.25% | ||||||||||||||||||||
Debt maturity date | Feb. 15, 2018 | ||||||||||||||||||||
Face value of notes | $ 510,000,000 | ||||||||||||||||||||
Cash payment per $1,000 principal amount for which consents were delivered | $ 2.50 | ||||||||||||||||||||
Total cash payment | 1,200,000 | ||||||||||||||||||||
Principal amount used to deliver consent | $ 1,000 | ||||||||||||||||||||
Percentage of call price of the par value of the note | 104.125% | ||||||||||||||||||||
Redemption percentage in addition to whole premium and accrued and unpaid interest | 101.00% | ||||||||||||||||||||
6.875% Senior Notes Due 2024 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, stated interest rate | 6.875% | ||||||||||||||||||||
Debt maturity date | Mar. 15, 2024 | ||||||||||||||||||||
Face value of notes | $ 650,000,000 | $ 650,000,000 | |||||||||||||||||||
Underwriting and direct offering costs | $ 11,000,000 | ||||||||||||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, stated interest rate | 3.00% | ||||||||||||||||||||
Effective interest rate | 6.75% | ||||||||||||||||||||
Debt maturity date | Dec. 31, 2018 | ||||||||||||||||||||
Face value of notes | $ 400,000,000 | $ 37,000,000 | |||||||||||||||||||
Common stock issued, net of direct costs (in shares) | shares | 915,385 | ||||||||||||||||||||
Gain on repurchase of Senior Notes | $ 33,200,000 | ||||||||||||||||||||
Underwriting and direct offering costs | $ 7,600,000 | ||||||||||||||||||||
Initial conversion rate per $1,000 principal amount | 24.7523 | ||||||||||||||||||||
Principal amount used for conversion | $ 1,000 | $ 1,000 | |||||||||||||||||||
Initial conversion price per share | $ / shares | $ 40.40 | ||||||||||||||||||||
Threshold percentage of stock price trigger | 98.00% | ||||||||||||||||||||
Consecutive trading-day conversion period | 10 days | ||||||||||||||||||||
Debt discount | $ 63,400,000 | ||||||||||||||||||||
Debt amount after the discount | $ 336,600,000 | ||||||||||||||||||||
7.50% Senior Notes Due 2021 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, stated interest rate | 7.50% | ||||||||||||||||||||
Debt maturity date | Dec. 15, 2021 | ||||||||||||||||||||
Face value of notes | $ 500,000,000 | ||||||||||||||||||||
Underwriting and direct offering costs | $ 8,600,000 | ||||||||||||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, stated interest rate | 9.25% | ||||||||||||||||||||
Debt maturity date | Dec. 15, 2017 | ||||||||||||||||||||
Face value of notes | $ 750,000,000 | ||||||||||||||||||||
Underwriting and direct offering costs | $ 15,400,000 | ||||||||||||||||||||
Remaining face value of notes | $ 1,000,000 | ||||||||||||||||||||
Exchanged aggregate principal amount | $ 749,000,000 | ||||||||||||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, stated interest rate | 7.75% | ||||||||||||||||||||
Debt maturity date | Jun. 15, 2019 | ||||||||||||||||||||
Face value of notes | $ 250,000,000 | ||||||||||||||||||||
Underwriting and direct offering costs | $ 3,100,000 | ||||||||||||||||||||
4.14% Promissory Note Due 2017 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt instrument, stated interest rate | 4.14% | ||||||||||||||||||||
Debt maturity date | Oct. 30, 2017 | ||||||||||||||||||||
Face value of notes | $ 5,500,000 | ||||||||||||||||||||
Debt instrument, monthly payment | 52,000 | ||||||||||||||||||||
Lump sum payments | $ 3,300,000 | ||||||||||||||||||||
Number of lump-sum payment | 1 | ||||||||||||||||||||
Derivative Instruments Premium Financing [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Derivative instrument premium financing outstanding | $ 0 | $ 0 | $ 10,600,000 | ||||||||||||||||||
Derivative instruments discount rate | 2.50% | 2.50% | 2.50% |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 12, 2015 | Jun. 03, 2014 | May 27, 2014 | Nov. 18, 2013 | Sep. 26, 2013 | Feb. 25, 2011 | Dec. 17, 2010 | Sep. 30, 2012 | Jun. 30, 2016 | Jun. 30, 2015 | |
Successor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 78,497 | |||||||||||
Less current maturities | 4,268 | |||||||||||
Total long-term debt | 74,229 | |||||||||||
Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 2,863,844 | $ 4,608,432 | ||||||||||
Less current maturities | 99,836 | 11,395 | ||||||||||
Total debt (Liabilities subject to compromise) | $ 2,763,739 | 2,764,008 | ||||||||||
Total long-term debt | 4,597,037 | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt maturity date | Apr. 9, 2018 | |||||||||||
Revolving Credit Facility [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [1] | 99,836 | 150,000 | |||||||||
Exit Facility [Member] | Successor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | $ 73,996 | |||||||||||
Derivative Instruments Premium Financing [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | 10,647 | |||||||||||
Capital Lease Obligations [Member] | Successor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | 500 | |||||||||||
Capital Lease Obligations [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | 714 | 869 | ||||||||||
Total debt (Liabilities subject to compromise) | 450 | |||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 11.00% | |||||||||||
Debt maturity date | Mar. 15, 2020 | |||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [1] | 1,450,000 | 1,450,000 | |||||||||
Total debt (Liabilities subject to compromise) | 1,450,000 | 1,450,000 | ||||||||||
Debt discount | (51,104) | |||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 9.25% | |||||||||||
Debt maturity date | Dec. 15, 2017 | |||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [1] | 249,452 | 750,000 | |||||||||
Total debt (Liabilities subject to compromise) | 249,452 | 249,452 | ||||||||||
8.25% Senior Notes Due 2018 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 8.25% | |||||||||||
Debt maturity date | Feb. 15, 2018 | |||||||||||
8.25% Senior Notes Due 2018 [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [1] | 213,677 | 510,000 | |||||||||
Total debt (Liabilities subject to compromise) | 213,677 | 213,677 | ||||||||||
8.25% Senior Notes Due 2018 [Member] | Debt Premium [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [2] | 29,459 | ||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 7.75% | |||||||||||
Debt maturity date | Jun. 15, 2019 | |||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [1] | 101,077 | 250,000 | |||||||||
Total debt (Liabilities subject to compromise) | 101,077 | 101,077 | ||||||||||
7.50% Senior Notes Due 2021 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 7.50% | |||||||||||
Debt maturity date | Dec. 15, 2021 | |||||||||||
7.50% Senior Notes Due 2021 [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [1] | 238,071 | 500,000 | |||||||||
Total debt (Liabilities subject to compromise) | 238,071 | 238,071 | ||||||||||
6.875% Senior Notes Due 2024 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 6.875% | |||||||||||
Debt maturity date | Mar. 15, 2024 | |||||||||||
6.875% Senior Notes Due 2024 [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [1] | 143,993 | 650,000 | |||||||||
Total debt (Liabilities subject to compromise) | 143,993 | 143,993 | ||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt discount | $ (63,400) | |||||||||||
Debt instrument, stated interest rate | 3.00% | |||||||||||
Debt maturity date | Dec. 31, 2018 | |||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | [1] | 363,018 | 400,000 | |||||||||
Total debt (Liabilities subject to compromise) | 363,018 | 363,018 | ||||||||||
Debt discount | (45,782) | |||||||||||
4.14% Promissory Note Due 2017 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 4.14% | |||||||||||
Debt maturity date | Oct. 30, 2017 | |||||||||||
4.14% Promissory Note Due 2017 [Member] | Successor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | 4,001 | |||||||||||
4.14% Promissory Note Due 2017 [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt | 4,006 | $ 4,343 | ||||||||||
Total debt (Liabilities subject to compromise) | $ 4,001 | 4,006 | ||||||||||
4.14% Promissory Note Due 2017 [Member] | Capital Lease Obligations [Member] | Predecessor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total debt (Liabilities subject to compromise) | $ 714 | |||||||||||
[1] | In accordance with the Plan, on the Emergence Date, all outstanding obligations under these notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. | |||||||||||
[2] | Represents unamortized premium on the 8.25% Senior Notes due 2018 assumed in the EPL Acquisition. |
Long-Term Debt (Maturities of L
Long-Term Debt (Maturities of Long-Term Debt) (Details) - Successor [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Twelve Months Ending December 31, | |
2,017 | $ 4,268 |
2,018 | 233 |
2,019 | 73,996 |
2,020 | |
2,021 | |
Thereafter | |
Total debt | $ 78,497 |
Long-Term Debt (Interest Expens
Long-Term Debt (Interest Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 12, 2015 | Jun. 03, 2014 | May 27, 2014 | Nov. 18, 2013 | Sep. 26, 2013 | Feb. 25, 2011 | Dec. 17, 2010 | Sep. 30, 2012 | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | $ 12,580 | $ 405,658 | $ 323,308 | $ 162,728 | |||||||||
Amortization of debt issue cost | 5,025 | 138,473 | 23,247 | 13,774 | |||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, stated interest rate | 11.00% | ||||||||||||
Debt maturity date | Mar. 15, 2020 | ||||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 125,852 | 48,505 | |||||||||||
Accretion of original debt issue discount | 44,855 | ||||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | Amortization Of Debt Issue Cost | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 5,047 | 1,887 | |||||||||||
11.0% Senior Secured Second Lien Notes Due 2020-Accelerated [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 36,243 | ||||||||||||
11.0% Senior Secured Second Lien Notes Due 2020-Accelerated [Member] | Discount Amortization [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Accretion of original debt issue discount | 6,249 | 2,358 | |||||||||||
8.25% Senior Notes Due 2018 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, stated interest rate | 8.25% | ||||||||||||
Debt maturity date | Feb. 15, 2018 | ||||||||||||
8.25% Senior Notes Due 2018 [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 27,899 | 42,075 | 3,507 | ||||||||||
8.25% Senior Notes Due 2018 [Member] | Premium Amortization [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of fair value premium | (8,818) | (11,108) | (841) | ||||||||||
8.25% Senior Notes Due 2018 [Member]-Accelerated [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of fair value premium | (7,961) | ||||||||||||
6.875% Senior Notes Due 2024 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, stated interest rate | 6.875% | ||||||||||||
Debt maturity date | Mar. 15, 2024 | ||||||||||||
6.875% Senior Notes Due 2024 [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 18,033 | 44,701 | 4,096 | ||||||||||
6.875% Senior Notes Due 2024 [Member] | Amortization Of Debt Issue Cost | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 457 | 1,127 | 102 | ||||||||||
Senior Notes 6875 Due 2024-Accelerated [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 1,946 | ||||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, stated interest rate | 3.00% | ||||||||||||
Debt maturity date | Dec. 31, 2018 | ||||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 9,340 | 12,000 | 7,266 | ||||||||||
Amortization of debt issue cost | 1,142 | 1,439 | 801 | ||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | Discount Amortization [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Accretion of original debt issue discount | 8,917 | 11,232 | 6,418 | ||||||||||
3.0% Senior Convertible Notes due 2018-Accelerated [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 4,271 | ||||||||||||
Accretion of original debt issue discount | 33,370 | ||||||||||||
7.50% Senior Notes Due 2021 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, stated interest rate | 7.50% | ||||||||||||
Debt maturity date | Dec. 15, 2021 | ||||||||||||
7.50% Senior Notes Due 2021 [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 17,414 | 37,500 | 28,542 | ||||||||||
7.50% Senior Notes Due 2021 [Member] | Amortization Of Debt Issue Cost | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 478 | 1,051 | 783 | ||||||||||
7.50% Senior Notes Due 2021-Accelerated [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 2,822 | ||||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, stated interest rate | 7.75% | ||||||||||||
Debt maturity date | Jun. 15, 2019 | ||||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 8,200 | 19,375 | 19,375 | ||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | Amortization Of Debt Issue Cost | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 168 | 388 | 388 | ||||||||||
7.75% Senior Notes Due 2019-Accelerated [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 491 | ||||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, stated interest rate | 9.25% | ||||||||||||
Debt maturity date | Dec. 15, 2017 | ||||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 44,944 | 69,375 | 69,375 | ||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | Amortization Of Debt Issue Cost | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 1,902 | 2,358 | 2,206 | ||||||||||
9.25% Senior Notes Due 2017 [Member]-Accelerated [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 913 | ||||||||||||
4.14% Promissory Note Due 2017 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, stated interest rate | 4.14% | ||||||||||||
Debt maturity date | Oct. 30, 2017 | ||||||||||||
4.14% Promissory Note Due 2017 [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 130 | 192 | 210 | ||||||||||
Bridge Commitment Fee [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 2,481 | ||||||||||||
Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt maturity date | Apr. 9, 2018 | ||||||||||||
Revolving Credit Facility [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest expense | 11,670 | 15,703 | 25,506 | 13,956 | |||||||||
Revolving Credit Facility [Member] | Amortization Of Debt Issue Cost | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amortization of debt issue cost | 725 | 5,185 | 12,491 | 3,076 | |||||||||
Derivative Instruments Premium Financing [Member] | Predecessor [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Derivative instruments financing and other | $ 185 | $ 466 | $ 856 | $ 987 |
Asset Retirement Obligations (C
Asset Retirement Obligations (Changes in Asset Retirement Obligations) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Successor [Member] | ||||
Fair value fresh start adjustment | $ 185,640 | |||
Less: End of period, current portion | 56,601 | |||
End of period, noncurrent portion | 696,763 | |||
Predecessor [Member] | ||||
Beginning of period total | 537,619 | $ 487,085 | $ 559,834 | |
Liabilities acquired | 66,700 | |||
Liabilities incurred and true up of liabilities settled | 13,880 | 34,167 | 40,820 | |
Liabilities settled | (18,852) | (78,273) | (106,573) | |
Liabilities sold | (65,752) | |||
Revisions | [1] | (3,896) | (36,750) | 8,675 |
Accretion expense | 38,973 | 64,690 | 50,081 | |
End of period total | $ 567,724 | 537,619 | 487,085 | |
Less: End of period, current portion | 71,717 | 33,286 | ||
End of period, noncurrent portion | $ 465,902 | $ 453,799 | ||
[1] | This downward revision for the year ended June 30, 2016 was primarily due to declining service costs resulting from the decline in commodity prices and decrease in demand for oil field services due to excess capacity. |
Derivative Financial Instrume75
Derivative Financial Instruments (Narrative) (Details) | Dec. 31, 2016USD ($)contract | Mar. 15, 2016USD ($) | Feb. 28, 2017bbl | Jun. 30, 2016USD ($)contract |
Derivative [Line Items] | ||||
Deposits for collateral with counterparties | $ 0 | $ 0 | ||
Derivative contracts outstanding | contract | 0 | 0 | ||
Proceeds from monetization of outstanding crude oil and natural gas | $ 50,600,000 | |||
Subsequent Event [Member] | ||||
Derivative [Line Items] | ||||
Oil contracts, barrel hedged per day | bbl | 10,000 |
Derivative Financial Instrume76
Derivative Financial Instruments (Fair Values of Derivative Instruments in Consolidated Balance Sheet) (Details) - Predecessor [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Asset Derivative Instruments | ||
Total Gross Commodity Derivative Instruments subject to enforceable master netting agreement | $ 63,004 | |
Total gross amounts offset in Balance Sheets | (36,877) | |
Net amounts presented in Balance Sheets | 26,127 | |
Liability Derivative Instruments | ||
Total Gross Commodity Derivative Instruments subject to enforceable master netting agreement | 40,896 | |
Total gross amounts offset in Balance Sheets | (36,877) | |
Net amounts presented in Balance Sheets | 4,019 | |
Current liabilities [Member] | ||
Liability Derivative Instruments | ||
Total Gross Commodity Derivative Instruments subject to enforceable master netting agreement | 31,456 | |
Total gross amounts offset in Balance Sheets | (28,795) | |
Net amounts presented in Balance Sheets | 2,661 | |
Noncurrent Liabilities [Member] | ||
Liability Derivative Instruments | ||
Total Gross Commodity Derivative Instruments subject to enforceable master netting agreement | 9,440 | |
Total gross amounts offset in Balance Sheets | (8,082) | |
Net amounts presented in Balance Sheets | 1,358 | |
Current Asset [Member] | ||
Asset Derivative Instruments | ||
Total Gross Commodity Derivative Instruments subject to enforceable master netting agreement | 51,024 | |
Total gross amounts offset in Balance Sheets | (28,795) | |
Net amounts presented in Balance Sheets | 22,229 | |
Noncurrent Assets [Member] | ||
Asset Derivative Instruments | ||
Total Gross Commodity Derivative Instruments subject to enforceable master netting agreement | 11,980 | |
Total gross amounts offset in Balance Sheets | (8,082) | |
Net amounts presented in Balance Sheets | $ 3,898 |
Derivative Financial Instrume77
Derivative Financial Instruments (Schedule of Derivative Instruments Gain (Loss) in Statement of Financial Performance) (Details) - Predecessor [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash Settlements, net of purchased put premium amortization | $ 59,081 | $ 81,049 | $ (17,312) |
Proceeds from monetization | 50,588 | 102,354 | |
Change in fair value | (19,163) | 52,036 | (69,656) |
Total gain (loss) on derivative financial instruments | $ 90,506 | $ 235,439 | $ (86,968) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | Dec. 30, 2016$ / sharesshares | Jun. 03, 2014shares | Nov. 18, 2013USD ($) | Mar. 31, 2016USD ($)shares | Feb. 28, 2014shares | Nov. 30, 2013USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014$ / sharesshares | Mar. 31, 2014$ / shares | Dec. 31, 2013$ / shares | Sep. 30, 2013$ / shares | Dec. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015$ / shares | Sep. 30, 2014$ / shares | Jun. 30, 2016$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)$ / sharesshares | May 19, 2016$ / sharesshares | Mar. 12, 2015 | Mar. 12, 2014USD ($) | Nov. 08, 2013USD ($) | May 31, 2013USD ($) |
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Capital stock, shares authorized | 110,000,000 | |||||||||||||||||||||||||
Common stock, shares authorized | 100,000,000 | 200,000,000 | ||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.005 | ||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | |||||||||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.01 | |||||||||||||||||||||||||
Number of shares issued | 33,211,594 | |||||||||||||||||||||||||
Exercise price of warrant | $ / shares | $ 43.66 | |||||||||||||||||||||||||
Minimum percentage increase or decrease in the exercise price resulting from cumulative adjustments to the applicable exercise price | 1.00% | |||||||||||||||||||||||||
Cash dividend per share | $ / shares | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.01 | $ 0.12 | ||||||||||||||||||||
Dividends payment date | Jun. 12, 2015 | Mar. 13, 2015 | Dec. 12, 2014 | Sep. 12, 2014 | ||||||||||||||||||||||
Stock repurchase program, authorized amount | $ | $ 250,000,000 | |||||||||||||||||||||||||
Stock repurchase program, remaining authorized amount | $ | $ 83,200,000 | |||||||||||||||||||||||||
Treasury stock, shares retired | 2,087,126 | |||||||||||||||||||||||||
Treasury stock, shares | 7,329,100 | |||||||||||||||||||||||||
Treasury shares reissued | 7,329,100 | |||||||||||||||||||||||||
Shares issued upon the closing of EPL acquisition | 23,320,955 | |||||||||||||||||||||||||
Dividend payment terms | Dividends on both the 5.625% Perpetual Convertible Preferred Stock ("5.625% Preferred Stock") and the 7.25% Perpetual Convertible Preferred Stock ("7.25% Preferred Stock") were payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year. | |||||||||||||||||||||||||
Preferred stock dividend | $ | $ 5,700,000 | |||||||||||||||||||||||||
Predecessor [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Common stock, shares authorized | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.005 | $ 0.005 | $ 0.005 | $ 0.005 | ||||||||||||||||||||||
Preferred stock, shares authorized | 7,500,000 | 7,500,000 | 7,500,000 | 7,500,000 | ||||||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||||||||||||||||||
Common stock, shares outstanding | 97,824,054 | 94,643,498 | 97,824,054 | 94,643,498 | ||||||||||||||||||||||
Stock repurchased, value | $ | $ 170,266,000 | |||||||||||||||||||||||||
Successor [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Common stock, shares authorized | 100,000,000 | |||||||||||||||||||||||||
Common stock, par value | $ / shares | $ 0.01 | |||||||||||||||||||||||||
Preferred stock, shares authorized | 10,000,000 | |||||||||||||||||||||||||
Preferred stock, par value | $ / shares | $ 0.01 | |||||||||||||||||||||||||
Common stock, shares outstanding | 33,211,594 | |||||||||||||||||||||||||
Warrants outstanding | 2,119,889 | |||||||||||||||||||||||||
Before 3.0% Senior Convertible Notes Offering [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Stock repurchased, value | $ | $ 94,200,000 | |||||||||||||||||||||||||
Stock repurchased, number of shares | 3,700,463 | |||||||||||||||||||||||||
Stock repurchased, weighted average price per share | $ / shares | $ 25.45 | |||||||||||||||||||||||||
Subsidiary of Common Parent [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Stock repurchased, value | $ | $ 76,000,000 | |||||||||||||||||||||||||
Stock repurchased, number of shares | 2,776,200 | |||||||||||||||||||||||||
Stock repurchased, weighted average price per share | $ / shares | $ 27.39 | |||||||||||||||||||||||||
5.625% Convertible Perpetual Preferred Stock [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Conversion of preferred stock to common stock, shares | 150,787 | 11 | 428 | |||||||||||||||||||||||
Common stock shares issued as a result of conversion of Preferred stock | 1,579,522 | 4,288 | ||||||||||||||||||||||||
Stated conversion rate of common shares per preferred share | 9.8353 | 10.4765 | 9.8353 | |||||||||||||||||||||||
Preferred stock, callable price, benchmark for consecutive days | $ / shares | $ 32.45 | |||||||||||||||||||||||||
Percentage of prevailing conversion price for automatic conversion | 130.00% | |||||||||||||||||||||||||
5.625% Convertible Perpetual Preferred Stock [Member] | Predecessor [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock dividend rate | 5.625% | 5.625% | ||||||||||||||||||||||||
7.25% Convertible Perpetual Preferred Stock [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Conversion of preferred stock to common stock, shares | 5,000 | |||||||||||||||||||||||||
Common stock shares issued as a result of conversion of Preferred stock | 46,472 | |||||||||||||||||||||||||
Stated conversion rate of common shares per preferred share | 8.77192 | 9.3439 | 8.77192 | |||||||||||||||||||||||
Percentage of prevailing conversion price for automatic conversion | 150.00% | |||||||||||||||||||||||||
7.25% Convertible Perpetual Preferred Stock [Member] | Predecessor [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock dividend rate | 7.25% | 7.25% | ||||||||||||||||||||||||
Minimum [Member] | 5.625% Convertible Perpetual Preferred Stock [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Stated conversion rate of common shares per preferred share | 10.0147 | 10.0147 | ||||||||||||||||||||||||
Preferred stock, consecutive days before stock can be called, out of 30 days | 20 days | |||||||||||||||||||||||||
Minimum [Member] | 7.25% Convertible Perpetual Preferred Stock [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Preferred stock, consecutive days before stock can be called, out of 30 days | 20 days | |||||||||||||||||||||||||
Maximum [Member] | 5.625% Convertible Perpetual Preferred Stock [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Stated conversion rate of common shares per preferred share | 10.2409 | 10.0579 | 10.2409 | 10.0579 | ||||||||||||||||||||||
Preferred stock, consecutive days before stock can be called, out of 30 days | 30 days | |||||||||||||||||||||||||
Maximum [Member] | 7.25% Convertible Perpetual Preferred Stock [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Stated conversion rate of common shares per preferred share | 9.2940 | 9.2940 | ||||||||||||||||||||||||
Preferred stock, consecutive days before stock can be called, out of 30 days | 30 days | |||||||||||||||||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Number of shares issued | 27,897,739 | |||||||||||||||||||||||||
Face value of notes | $ | $ 1,450,000,000 | |||||||||||||||||||||||||
Debt instrument, stated interest rate | 11.00% | |||||||||||||||||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | Predecessor [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Debt discount | $ | $ 51,104,000 | $ 51,104,000 | ||||||||||||||||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Number of shares issued | 915,385 | |||||||||||||||||||||||||
Number of warrants issued | 915,385 | |||||||||||||||||||||||||
Senior Notes repurchased, face amount | $ | $ 37,000,000 | |||||||||||||||||||||||||
Principal amount used for conversion | $ | $ 1,000 | $ 1,000 | ||||||||||||||||||||||||
Threshold percentage of stock price trigger | 98.00% | |||||||||||||||||||||||||
Face value of notes | $ | $ 400,000,000 | $ 37,000,000 | ||||||||||||||||||||||||
Debt instrument, stated interest rate | 3.00% | |||||||||||||||||||||||||
Debt discount | $ | $ 63,400,000 | |||||||||||||||||||||||||
Offering costs recorded as increase in additional paid in capital | $ | $ 1,400,000 | |||||||||||||||||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | Predecessor [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Debt discount | $ | $ 45,782,000 | $ 45,782,000 | ||||||||||||||||||||||||
EGC Unsecured Notes [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Number of shares issued | 3,985,391 | |||||||||||||||||||||||||
EPL Unsecured Notes [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Number of shares issued | 1,328,464 | |||||||||||||||||||||||||
EPL Oil & Gas, Inc. [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Shares issued upon the closing of EPL acquisition | 23,321,000 | |||||||||||||||||||||||||
Warrant [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Exercise price of warrant | $ / shares | $ 43.66 | |||||||||||||||||||||||||
Warrant [Member] | EGC and EPL Unsecured Notes [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Number of warrants issued | 2,119,889 | |||||||||||||||||||||||||
Warrant [Member] | EGC Unsecured Notes [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Number of warrants issued | 1,271,933 | |||||||||||||||||||||||||
Warrant [Member] | EPL Unsecured Notes [Member] | ||||||||||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||||||||||
Number of warrants issued | 847,956 |
Supplemental Cash Flow Inform79
Supplemental Cash Flow Information (Supplemental Cash Flow Information) (Details) - Predecessor [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash paid for interest | $ 7,493 | $ 229,569 | $ 243,238 | $ 139,575 |
Cash paid for income taxes | $ 150 | $ 933 | $ 3,641 |
Supplemental Cash Flow Inform80
Supplemental Cash Flow Information (Non-cash Investing and Financing Activities) (Details) - Predecessor [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Financing of insurance premiums | $ 21,967 | |||
Derivative instruments premium financing | $ 12,025 | 11,257 | ||
Changes in capital expenditures accrued in accounts payable | $ 10,242 | $ (37,151) | (168,569) | 115,696 |
Acquisition of property against joint interest billings receivable | (1,500) | |||
Inventory transferred to oil and natural gas properties | 7,081 | |||
Changes in asset retirement obligations | $ 9,984 | (2,583) | $ 49,495 | 299,225 |
Monetization of derivative instruments applied to Revolving Credit Facility | $ 50,588 | |||
Common Stock [Member] | ||||
Stock issued for the EPL acquisition | 337,588 | |||
Treasury Stock [Member] | ||||
Stock issued for the EPL acquisition | $ 154,717 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | Feb. 02, 2017 | Jan. 06, 2017 | Dec. 30, 2016 | Feb. 22, 2017 | Jun. 30, 2016 |
2016 Long Term Incentive Plan [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of shares reserved under the Long Term Incentive Plan | 1,859,552 | ||||
Percentage of new entity's equity reserved for management incentive plan | 5.00% | ||||
To be Allocated within 120 days of Emergence Date [Member] | 2016 Long Term Incentive Plan [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Percentage of new entity's equity reserved for management incentive plan | 3.00% | ||||
Predecessor [Member] | 2006 Long-Term Incentive Plan [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Employee stock purchase plan, discount percentage | 15.00% | ||||
Option vesting term | 3 years | ||||
Director Serving on the Board [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | $ 75,000 | ||||
Non-Executive Chairman of the Board [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | 125,000 | ||||
Chairman of the Audit Committee [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | 25,000 | ||||
Member of the Audit Committee [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | 12,500 | ||||
Chairman of the Compensation Committee [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | 25,000 | ||||
Member of the Compensation Committee [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | 12,500 | ||||
Chairman of the Nomination and Governance Committee [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | 10,000 | ||||
Member of the Nomination and Governance Committee [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | $ 5,000 | ||||
Lead Independent Director [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Officer's annual compensation | $ 50,000 | ||||
Restricted Stock Units (RSUs) [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Closing price per share | $ 20 | ||||
Restricted Stock Units (RSUs) [Member] | 2016 Long Term Incentive Plan [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Number of warrants issued | 106,250 | ||||
Restricted Stock Units (RSUs) [Member] | Non-Executive Chairman of the Board [Member] | Initial [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Non-executive director compensation, stock award approved | $ 200,000 | ||||
Restricted Stock Units (RSUs) [Member] | Non-Executive Chairman of the Board [Member] | Initial [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Non-executive director compensation, stock award approved | 300,000 | ||||
Restricted Stock Units (RSUs) [Member] | Non-Executive Chairman of the Board [Member] | Annual [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Non-executive director compensation, stock award approved | 130,000 | ||||
Restricted Stock Units (RSUs) [Member] | Non-Executive Chairman of the Board [Member] | Annual [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Non-executive director compensation, stock award approved | $ 175,000 |
Employee Benefit Plans (Annual
Employee Benefit Plans (Annual Employer Contribution) (Details) - Predecessor [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Total contributions | $ 638 | $ 2,852 | $ 2,424 | $ 8,228 |
Profit Sharing Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total contributions | (768) | 4,833 | ||
401 (k) Plan [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Total contributions | $ 638 | $ 2,852 | $ 3,192 | $ 3,395 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | Dec. 30, 2016shares | Mar. 12, 2016USD ($)$ / sharesshares | Oct. 15, 2015USD ($)$ / sharesshares | Aug. 11, 2015$ / agreement | Jan. 15, 2015USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2013 | Oct. 25, 2016USD ($) | Mar. 12, 2015 |
Related Party Transaction [Line Items] | ||||||||||||
Registratiopn rights agreement, Minimum percentage of common stock outstanding | 10.00% | |||||||||||
Number of shares issued | shares | 33,211,594 | |||||||||||
Amount of line of credit, borrowing base | $ 297,100,000 | |||||||||||
Value of services provided by related parties | $ 3,300,000 | |||||||||||
Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Asset retirement obligation | 567,724,000 | $ 537,619,000 | $ 487,085,000 | $ 559,834,000 | ||||||||
Other liabilities | 21,304,000 | 8,370,000 | ||||||||||
Management fees, received | 200,000 | 3,300,000 | 3,800,000 | |||||||||
Stock repurchased, value | 170,266,000 | |||||||||||
Successor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Other liabilities | 14,481,000 | |||||||||||
Restricted Stock Units (RSUs) [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stock repurchased, number of shares | shares | 1,876,219 | |||||||||||
Stock repurchased, value | $ 1,182,018 | |||||||||||
Stock repurchased, weighted average price per share | $ / shares | $ 0.63 | |||||||||||
Payment Guarantee [Member] | Eugene Island 330 and South Marsh Island 128 [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Amount received from related party | 300,000 | 3,700,000 | 3,100,000 | |||||||||
CEO's Personal Acquaintances or their Affiliates [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Funds borrowed by Chief Executive Officer from personal acquaintances or their affiliates, certain of whom provided services to the Company | 35,900,000 | 34,700,000 | 38,700,000 | |||||||||
James LaChance [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Minimum Capital to be provided by the related party to be eligible for success fee | $ 1,000,000,000 | |||||||||||
James LaChance [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Officers' Compensation | $ 1,000,000 | $ 200,000 | $ 100,000 | 1,100,000 | ||||||||
James LaChance [Member] | Cash [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Percentage of incentive compensation | 50.00% | |||||||||||
James LaChance [Member] | Restricted Stock Units (RSUs) [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Percentage of incentive compensation | 50.00% | |||||||||||
Restricted stock units awarded | shares | 231,482 | 1,644,737 | ||||||||||
Restricted stock units, weighted average price per share | $ / shares | $ 2.16 | $ 3.04 | ||||||||||
Norman Louie [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Percentage of company stock owned by related party | 6.30% | |||||||||||
Cornelius Dupr II [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Payments to related party | $ 5,600,000 | 2,000,000 | $ 600,000 | |||||||||
Energy XXI M21K LLC [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Percentage of investments under the equity method | 20.00% | |||||||||||
Amount of line of credit, borrowing base | $ 100,000,000 | |||||||||||
Energy XXI M21K LLC [Member] | Payment Guarantee [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Due from related party, commitment period | 3 years | 3 years | 3 years | |||||||||
Energy XXI M21K LLC [Member] | Payment Guarantee [Member] | Llog Exploration Offshore Limited Liability Company [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Asset retirement obligation | 36,700,000 | |||||||||||
Due from related party | 3,300,000 | |||||||||||
Energy XXI M21K LLC [Member] | Payment Guarantee [Member] | EP Energy Property [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Asset retirement obligation | 65,000,000 | |||||||||||
Other liabilities | 1,800,000 | |||||||||||
Due from related party | 6,300,000 | |||||||||||
Energy XXI M21K LLC [Member] | Payment Guarantee [Member] | Eugene Island 330 and South Marsh Island 128 [Member] | Predecessor [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Asset retirement obligation | 18,600,000 | |||||||||||
Due from related party | 1,700,000 | |||||||||||
Energy XXI M21K LLC [Member] | Energy XXI Gulf Coast Inc [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Administrative assistance fee per BOE | $ / agreement | 0.98 | |||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of shares issued | shares | 27,897,739 | |||||||||||
Rate of interest on notes payable | 11.00% | |||||||||||
Maximum [Member] | James LaChance [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Incentive compensation to related party | 6,000,000 | |||||||||||
Maximum [Member] | James LaChance [Member] | Based Upon Qualitative Factors [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Officers' Compensation | 5,000,000 | |||||||||||
Maximum [Member] | James LaChance [Member] | Achievement of Objective Criteria [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Officers' Compensation | $ 1,000,000 | |||||||||||
Warrant [Member] | EGC and EPL Unsecured Notes [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of warrants issued | shares | 2,119,889 |
Earnings (Loss) per Share (Calc
Earnings (Loss) per Share (Calculation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2016 | [1] | Sep. 30, 2016 | [2] | Jun. 30, 2016 | [3] | Mar. 31, 2016 | [4] | Dec. 31, 2015 | [5] | Sep. 30, 2015 | [6] | Jun. 30, 2015 | [3] | Mar. 31, 2015 | [7] | Dec. 31, 2014 | [8] | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | [10] | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Common stock, excluded from the diluted average shares due to an anti-dilutive effect | 2,119,889 | 9,439,104 | 8,642,434 | 8,336,700 | ||||||||||||||||||||||||
Predecessor [Member] | ||||||||||||||||||||||||||||
Net income (loss) | $ 2,785,049 | $ (131,146) | $ (195,552) | $ 160,776 | $ (1,310,583) | $ (573,392) | $ (1,690,004) | $ (495,061) | $ (275,963) | $ 27,190 | $ 2,653,903 | [9] | $ (1,883,975) | $ (1,918,751) | $ (2,433,838) | $ 18,125 | ||||||||||||
Preferred stock dividends | 352 | 2,378 | 2,810 | 2,854 | 2,864 | 2,862 | 2,870 | 2,872 | 5,664 | 8,394 | 11,468 | 11,489 | ||||||||||||||||
Net Income (Loss) Available for Common Stockholders | $ 2,785,049 | $ (131,146) | $ (195,904) | $ 158,398 | $ (1,313,393) | $ (576,246) | $ (1,692,868) | $ (497,923) | $ (278,833) | $ 24,318 | $ 2,653,903 | [9] | $ (1,889,639) | $ (1,927,145) | $ (2,445,306) | $ 6,636 | ||||||||||||
Weighted average shares outstanding for basic EPS | 98,337,000 | [9] | 94,926,000 | 95,822,000 | 94,167,000 | 74,375,000 | ||||||||||||||||||||||
Add dilutive securities | 6,450,000 | 70,000 | ||||||||||||||||||||||||||
Weighted average shares outstanding for diluted EPS | 104,787,000 | [9] | 94,926,000 | 95,822,000 | 94,167,000 | 74,445,000 | ||||||||||||||||||||||
Basic | $ 28.17 | [11] | $ (1.34) | [11] | $ (2.01) | [11] | $ 1.65 | [11] | $ (13.81) | [11] | $ (6.08) | [11] | $ (17.92) | [11] | $ (5.27) | [11] | $ (2.97) | [11] | $ 0.26 | [11] | $ 26.99 | [9] | $ (19.91) | $ (20.11) | $ (25.97) | $ 0.09 | ||
Diluted | $ 26.58 | [11] | $ (1.34) | [11] | $ (2.01) | [11] | $ 1.55 | [11] | $ (13.81) | [11] | $ (6.08) | [11] | $ (17.92) | [11] | $ (5.27) | [11] | $ (2.97) | [11] | $ 0.24 | [11] | $ 25.33 | [9] | $ (19.91) | $ (20.11) | $ (25.97) | $ 0.09 | ||
Successor [Member] | ||||||||||||||||||||||||||||
Net income (loss) | $ (406,275) | |||||||||||||||||||||||||||
Net Income (Loss) Available for Common Stockholders | $ (406,275) | |||||||||||||||||||||||||||
Weighted average shares outstanding for basic EPS | 33,212,000 | |||||||||||||||||||||||||||
Weighted average shares outstanding for diluted EPS | 33,212,000 | |||||||||||||||||||||||||||
Basic | $ (12.23) | |||||||||||||||||||||||||||
Diluted | $ (12.23) | |||||||||||||||||||||||||||
[1] | Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | |||||||||||||||||||||||||||
[2] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million. | |||||||||||||||||||||||||||
[3] | Included in Operating income (loss) is impairment of oil and natural gas properties of $142.6 million. | |||||||||||||||||||||||||||
[4] | Included in Operating income (loss) is impairment of oil and natural gas properties of $340.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $777.0 million. | |||||||||||||||||||||||||||
[5] | Included in Operating income (loss) is impairment of oil and natural gas properties of $1,425.8 million and also included in Net income (loss) is gain on early extinguishment of debt of $290.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $904.7 million and also included in Net income (loss) is gain on early extinguishment of debt of $458.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million.Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | |||||||||||||||||||||||||||
[6] | Included in Operating income (loss) is impairment of oil and natural gas properties of $904.7 million and also included in Net income (loss) is gain on early extinguishment of debt of $458.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million.Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | |||||||||||||||||||||||||||
[7] | Included in Operating income (loss) is impairment of oil and natural gas properties of $569.6 million. | |||||||||||||||||||||||||||
[8] | Included in Operating income (loss) is goodwill impairment of $329.3 million. | |||||||||||||||||||||||||||
[9] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. | |||||||||||||||||||||||||||
[10] | Included in Operating income (loss) is impairment of oil and natural gas properties of $2,330.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $748.6 million. | |||||||||||||||||||||||||||
[11] | The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter. |
Commitments and Contingencies85
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Jan. 05, 2017 | Jun. 17, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 30, 2016 | Oct. 25, 2016 | Aug. 11, 2015 |
Loss Contingencies [Line Items] | ||||||||||
Rent expense | $ 11.9 | $ 6 | $ 6.4 | $ 3.7 | ||||||
Amount of claim filed by the SEC | $ 3.9 | |||||||||
General unsecured claims, accrual | $ 1.4 | |||||||||
Operating lease, expiration date | Dec. 31, 2018 | |||||||||
Performance bonds outstanding | $ 388.2 | |||||||||
Performance bonds under lease and bonds issued to the BOEM | 226.7 | 226.6 | ||||||||
Performance bonds issued to predecessor third party assignors including certain state regulatory bodies | 161.4 | |||||||||
Required supplemental bonding required by Bureau of Ocean Energy Management | 1,000 | |||||||||
Supplemental bonds issued to Bureau of Ocean Management | $ 21.1 | 150 | ||||||||
Required supplemental bonding required by Bureau of Ocean Energy Management, reduction amount | 178 | |||||||||
Amount of line of credit, borrowing base | $ 297.1 | |||||||||
Collateral provided to surety companies associated with the bonding requirements of the BOEM | $ 49.6 | |||||||||
Energy XXI M21K LLC [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Letter of credit | 1.2 | |||||||||
Equity method investment ownership percentage | 20.00% | |||||||||
Amount of line of credit, borrowing base | $ 100 | |||||||||
Grand Isle Corridor, LP [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Primary term of the lease | 11 years | |||||||||
Lease renewal term | 9 years | |||||||||
Percentage of expected useful life of the property for renewal option | 75.00% | |||||||||
Aggregate annual minimum monthly payments for the first twelve months | $ 17 | |||||||||
Aggregate annual minimum monthly payments after the first twelve months | 40.5 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Letter of credit | $ 227.8 | |||||||||
Amount of line of credit, borrowing base | 327.2 | |||||||||
Exit Revolving Credit Facility [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Letter of credit | 200 | $ 225 | ||||||||
Bonding Requirements [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Restricted cash | 25.6 | |||||||||
Paying Restructuring Expenses [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Restricted cash | 26 | |||||||||
Future Plugging, Abandonment and Other Decommissioning [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Restricted cash | $ 6 | |||||||||
Subsequent Event [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Required Additional security by BOEM | $ 5.1 |
Commitments and Contingencies86
Commitments and Contingencies (Future Minimum Lease Commitments Under Operating Leases) (Details) - Successor [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Year ending December 31, 2017 | $ 35,956 |
Year ending December 31, 2018 | 36,017 |
Year ending December 31, 2019 | 36,509 |
Year ending December 31, 2020 | 43,545 |
Year ending December 31, 2021 | 49,598 |
Thereafter | 200,751 |
Total | $ 402,376 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 30, 2016 | Dec. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Income Taxes [Line Items] | ||||||
Deferred tax asset gross | $ 32,200 | |||||
Increase in deferred tax assets after impairment | $ 142,200 | |||||
As Reported [Member] | Energy XXI's Separate Company [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance | $ 1,800 | |||||
Affected by Impairments [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance | $ 379,300 | |||||
Increase in valuation allowance | 356,800 | |||||
Successor [Member] | ||||||
Income Taxes [Line Items] | ||||||
Required reduction on tax attributes | 2,600,000 | |||||
Increase (decrease) in equity investments | (2,137,000) | |||||
Valuation allowance | $ 174,462 | |||||
Net operating loss carry forward, Federal | 486,000 | |||||
Predecessor [Member] | ||||||
Income Taxes [Line Items] | ||||||
U.S. withholding tax rate on any interest payments | 30.00% | |||||
Accrued withholding tax obligation | 1,029,300 | |||||
Valuation allowance | 1,029,335 | 379,292 | ||||
Cash withholding tax payment | $ 900 | |||||
Increase in valuation allowance | 650,000 | |||||
Net operating loss carry forward, Federal | $ 586,000 | 285,000 | ||||
Net operating loss carry forward, State | 800,000 | |||||
Deferred tax asset gross | $ 13,200 | |||||
Predecessor [Member] | Energy XXI's Separate Company [Member] | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance | $ 23,800 |
Income Taxes (Income Before Inc
Income Taxes (Income Before Income Tax) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | [2] | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Successor [Member] | ||||||||
U.S. income (loss) | $ (406,275) | |||||||
Income (Loss) Before Income Taxes | $ (406,275) | |||||||
Predecessor [Member] | ||||||||
U.S. income (loss) | $ 2,656,509 | $ (1,913,718) | $ (3,050,659) | $ 43,915 | ||||
Non-U.S. income (loss) | (2,606) | (5,120) | 3,471 | 9,230 | ||||
Income (Loss) Before Income Taxes | $ 2,653,903 | [1] | $ (1,883,924) | $ (1,918,838) | $ (3,047,188) | $ 53,145 | ||
[1] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. | |||||||
[2] | Included in Operating income (loss) is impairment of oil and natural gas properties of $2,330.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $748.6 million. |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Provision) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | [1] | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Successor [Member] | |||||||
Current | |||||||
U.S. | |||||||
Non U.S. | |||||||
State | |||||||
Total current | |||||||
Deferred | |||||||
U.S. | |||||||
State | |||||||
Total deferred | |||||||
Income tax expense (benefit) | |||||||
Predecessor [Member] | |||||||
Current | |||||||
U.S. | $ 933 | $ 3,641 | |||||
Non U.S. | |||||||
State | (87) | 99 | |||||
Total current | (87) | 1,032 | 3,641 | ||||
Deferred | |||||||
U.S. | (564,569) | 31,379 | |||||
State | (49,813) | ||||||
Total deferred | (614,382) | 31,379 | |||||
Income tax expense (benefit) | $ 51 | $ (87) | $ (613,350) | $ 35,020 | |||
[1] | Included in Operating income (loss) is impairment of oil and natural gas properties of $2,330.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $748.6 million. |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory Income Tax Expense to Income Tax Provision) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | [2] | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statutory rate | 35.00% | |||||||
Successor [Member] | ||||||||
Income (loss) before income taxes | $ (406,275) | |||||||
Statutory rate | 35.00% | |||||||
Income tax expense (benefit) computed at statutory rate | $ (142,196) | |||||||
Reconciling items | ||||||||
Change in valuation allowance | 142,196 | |||||||
Income tax expense (benefit) | ||||||||
Predecessor [Member] | ||||||||
Income (loss) before income taxes | $ 2,653,903 | [1] | $ (1,883,924) | $ (1,918,838) | $ (3,047,188) | $ 53,145 | ||
Statutory rate | 35.00% | 35.00% | 35.00% | 35.00% | ||||
Income tax expense (benefit) computed at statutory rate | $ 928,866 | $ (671,593) | $ (1,066,516) | $ 18,601 | ||||
Reconciling items | ||||||||
Federal withholding obligation | 8,161 | 10,331 | 10,343 | |||||
Nontaxable foreign income | 1,791 | 91 | (2,133) | |||||
Change in valuation allowance | (1,029,335) | 650,043 | 356,798 | |||||
State income taxes (benefit), net of federal tax benefit | (87) | (32,314) | ||||||
Non-deductible executive compensation | 2,725 | |||||||
Non-deductible transaction and restructuring costs | 31,699 | 440 | 1,853 | |||||
Tax basis in shortfall on partnership dissolution | 6,501 | |||||||
Asset retirement obligation | 190,923 | |||||||
Net operating loss | 163,027 | |||||||
Accrued interest expense | 115,560 | |||||||
Oil and natural gas properties and other property and equipment | 615,146 | |||||||
Deferred state income taxes | 54,793 | |||||||
Withholding taxes | (81,635) | |||||||
Cancellation of stockholders deficit | (290,665) | |||||||
Cancellation of indebtedness income | (702,972) | |||||||
Other fresh start deferred income taxes, net | 3,788 | |||||||
Goodwill impairment | 115,253 | |||||||
Other - Net | 805 | 5,097 | 2,567 | 3,631 | ||||
Income tax expense (benefit) | $ 51 | $ (87) | $ (613,350) | $ 35,020 | ||||
[1] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. | |||||||
[2] | Included in Operating income (loss) is impairment of oil and natural gas properties of $2,330.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $748.6 million. |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Successor [Member] | |||
Deferred tax assets - non current | |||
Asset retirement obligation | $ 263,677 | ||
Other | 11,830 | ||
Total deferred tax assets - non current | 275,507 | ||
Deferred tax liabilities | |||
Oil, natural gas properties and other property and equipment | (101,045) | ||
Total deferred tax liabilities - non current | (101,045) | ||
Valuation allowance | (174,462) | ||
Net deferred tax asset (liability) | |||
Predecessor [Member] | |||
Deferred tax assets - non current | |||
Oil, natural gas properties and other property and equipment | $ 646,294 | ||
Asset retirement obligation | 190,923 | $ 170,480 | |
Tax loss carryforwards on U.S. operations | 99,612 | 458,530 | |
Accrued interest expense | 115,560 | 106,039 | |
Deferred interest expense under IRC Sec. 162(j) | 54,793 | 54,973 | |
Derivative instruments and other | 4,879 | ||
Other | 23,056 | 14,851 | |
Total deferred tax assets - non current | 1,130,238 | 809,752 | |
Deferred tax liabilities | |||
Oil, natural gas properties and other property and equipment | (272,502) | ||
Federal withholding obligation | (81,635) | (73,474) | |
Cancellation of debt | (9,680) | (9,680) | |
Employee benefit plans | (9,588) | (9,588) | |
Dismantlement | (9,086) | ||
Tax partnership activity | (56,130) | ||
Total deferred tax liabilities - non current | (100,903) | (430,460) | |
Valuation allowance | (1,029,335) | (379,292) | |
Net deferred tax asset (liability) |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Narrative) (Details) - Revenue [Member] | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Shell Trading Company | ||||
Concentration Risk [Line Items] | ||||
Percentage of total oil and natural gas revenues | 26.00% | 21.00% | 29.00% | 45.00% |
Exxon Mobil Corporation | ||||
Concentration Risk [Line Items] | ||||
Percentage of total oil and natural gas revenues | 26.00% | 43.00% | ||
Chevron USA [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total oil and natural gas revenues | 26.00% | 22.00% | 24.00% | |
Trafigura Trading LLC [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of total oil and natural gas revenues | 27.00% | 22.00% |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Mar. 12, 2015 | Jun. 03, 2014 | May 27, 2014 | Nov. 18, 2013 | Sep. 26, 2013 | Feb. 25, 2011 | Dec. 17, 2010 |
Debt Instrument [Line Items] | ||||||||
Fair value adjustment related to property and equipment | $ 1,007.4 | |||||||
Fair value adjustment related to asset retirement obligation | 185.6 | |||||||
Fair value adjustment related to common stock warrants | $ 8.1 | |||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Rate of interest on notes payable | 11.00% | |||||||
8.25% Senior Notes Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Rate of interest on notes payable | 8.25% | |||||||
6.875% Senior Notes Due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Rate of interest on notes payable | 6.875% | |||||||
7.50% Senior Notes Due 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Rate of interest on notes payable | 7.50% | |||||||
9.25 Percent Senior Notes Due 2017 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Rate of interest on notes payable | 9.25% | |||||||
7.75 Percent Senior Notes Due 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Rate of interest on notes payable | 7.75% | |||||||
3.0% Senior Convertible Notes due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Rate of interest on notes payable | 3.00% |
Fair Value (Fair Value of Finan
Fair Value (Fair Value of Financial Instruments) (Details) - Predecessor [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Fair Value, Inputs, Level 1 [Member] | ||
Liabilities: | ||
Fair value of liabilities | $ 1,075 | $ 8,303 |
Fair Value, Inputs, Level 1 [Member] | Restricted Stock Units (RSUs) [Member] | ||
Liabilities: | ||
Fair value of liabilities | 87 | 6,325 |
Fair Value, Inputs, Level 1 [Member] | Performance Units [Member] | ||
Liabilities: | ||
Fair value of liabilities | $ 988 | 1,978 |
Fair Value, Inputs, Level 2 [Member] | ||
Liabilities: | ||
Fair value of liabilities | 40,896 | |
Fair Value, Inputs, Level 2 [Member] | Oil and Natural Gas Derivatives [Member] | ||
Assets: | ||
Fair value of assets | 63,004 | |
Liabilities: | ||
Fair value of liabilities | $ 40,896 |
Fair Value (Carrying Values and
Fair Value (Carrying Values and Estimated Fair Values of Long-term Indebtedness) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Mar. 12, 2015 | Jun. 03, 2014 | May 27, 2014 | Nov. 18, 2013 | Sep. 26, 2013 | Feb. 25, 2011 | Dec. 17, 2010 | Jun. 30, 2016 | Aug. 11, 2015 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | $ 25,187 | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt maturity date | Apr. 9, 2018 | |||||||||||
11.0% Senior Secured Second Lien Notes due 2020 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 11.00% | |||||||||||
Debt maturity date | Mar. 15, 2020 | |||||||||||
8.25% Senior Notes Due 2018 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 8.25% | |||||||||||
Debt maturity date | Feb. 15, 2018 | |||||||||||
6.875% Senior Notes Due 2024 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 6.875% | |||||||||||
Debt maturity date | Mar. 15, 2024 | |||||||||||
3.0% Senior Convertible Notes due 2018 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 3.00% | |||||||||||
Debt maturity date | Dec. 31, 2018 | |||||||||||
7.50% Senior Notes Due 2021 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 7.50% | |||||||||||
Debt maturity date | Dec. 15, 2021 | |||||||||||
7.75 Percent Senior Notes Due 2019 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 7.75% | |||||||||||
Debt maturity date | Jun. 15, 2019 | |||||||||||
9.25 Percent Senior Notes Due 2017 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, stated interest rate | 9.25% | |||||||||||
Debt maturity date | Dec. 15, 2017 | |||||||||||
Successor [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | $ 73,996 | |||||||||||
Successor [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | 73,996 | |||||||||||
Successor [Member] | Fair Value, Inputs, Level 2 [Member] | Exit Facility [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | 73,996 | |||||||||||
Successor [Member] | Fair Value, Inputs, Level 2 [Member] | Exit Facility [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | $ 73,996 | |||||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | $ 2,859,124 | $ 4,592,573 | ||||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | 795,375 | 2,707,470 | ||||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | Revolving Credit Facility [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 99,836 | 150,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | Revolving Credit Facility [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 99,836 | 150,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 11.0% Senior Secured Second Lien Notes due 2020 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 1,450,000 | 1,398,896 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 11.0% Senior Secured Second Lien Notes due 2020 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 587,250 | 1,276,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 8.25% Senior Notes Due 2018 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 213,677 | 539,459 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 8.25% Senior Notes Due 2018 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 28,633 | 306,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 6.875% Senior Notes Due 2024 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 143,993 | 650,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 6.875% Senior Notes Due 2024 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 16,559 | 211,250 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 3.0% Senior Convertible Notes due 2018 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 363,018 | 354,218 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 3.0% Senior Convertible Notes due 2018 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 1,472 | 94,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 7.50% Senior Notes Due 2021 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 238,071 | 500,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 7.50% Senior Notes Due 2021 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 25,807 | 164,925 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 7.75 Percent Senior Notes Due 2019 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 101,077 | 250,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 7.75 Percent Senior Notes Due 2019 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 9,875 | 92,135 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 9.25 Percent Senior Notes Due 2017 [Member] | Reported Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | 249,452 | 750,000 | |||||||||
Predecessor [Member] | Fair Value, Inputs, Level 2 [Member] | 9.25 Percent Senior Notes Due 2017 [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated fair value | [1] | $ 25,943 | $ 413,160 | |||||||||
[1] | In accordance with the Plan, on the Emergence Date, all outstanding obligations under these notes and the related collateral agreements and registration rights, as applicable, were cancelled and the indentures governing such obligations were cancelled. |
Fair Value (Changes to Level 3
Fair Value (Changes to Level 3 Financial Instruments) (Details) - Predecessor [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Balance at beginning of period | $ 33 | $ 6,910 |
Vested | (775) | |
Grants charged to general and administrative expense | 760 | (6,877) |
Balance at end of period | $ 18 | $ 33 |
Prepayments and Accrued Liabi97
Prepayments and Accrued Liabilities (Components of Prepayments and Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Successor [Member] | |||
Prepaid expenses and other current assets | |||
Advances to joint interest partners | $ 650 | ||
Insurance | 9,600 | ||
Inventory | 470 | ||
Royalty deposit | 1,273 | ||
Other | 13,964 | ||
Total prepaid expenses and other current assets | 25,957 | ||
Accrued liabilities | |||
Advances from joint interest partners | 374 | ||
Employee benefits and payroll | 4,491 | ||
Interest payable | 233 | ||
Undistributed oil and gas proceeds | 22,715 | ||
Severance taxes payable | 628 | ||
Escrowed reorganization expenses | 25,987 | ||
Other | 9,232 | ||
Total accrued liabilities | $ 63,660 | ||
Predecessor [Member] | |||
Prepaid expenses and other current assets | |||
Advances to joint interest partners | $ 974 | $ 1,294 | |
Insurance | 13,726 | 3,427 | |
Inventory | 423 | 7,867 | |
Royalty deposit | 2,168 | 3,137 | |
Debt issuance costs | 2,571 | ||
Other | 9,166 | 8,573 | |
Total prepaid expenses and other current assets | 29,028 | 24,298 | |
Accrued liabilities | |||
Advances from joint interest partners | 3,060 | ||
Employee benefits and payroll | 7,377 | 18,927 | |
Interest payable | 83,384 | ||
Accrued hedge payable | 1,399 | ||
Undistributed oil and gas proceeds | 12,611 | 19,776 | |
Severance taxes payable | 619 | 843 | |
Other | 19,821 | 27,917 | |
Total accrued liabilities | $ 40,428 | $ 155,306 |
Comparative Period Informatio98
Comparative Period Information (Schedule of Certain Transitional Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |||||||||||||
Weighted Average Number of Common Shares Outstanding | |||||||||||||||||||||||||||
Gain (loss) on settlement of liabilties subject to compromise | $ 2,008,500 | ||||||||||||||||||||||||||
Predecessor [Member] | |||||||||||||||||||||||||||
Revenues | 153,065 | [1] | $ 142,611 | [2] | $ 147,804 | [3] | $ 116,285 | [4] | $ 184,615 | [5] | $ 257,823 | [6] | $ 219,460 | [3] | $ 221,580 | [7] | $ 502,971 | [8] | $ 461,441 | $ 295,676 | [9] | $ 442,438 | [10] | $ 706,527 | $ 1,405,452 | $ 1,153,123 | |
Operating loss | 11,708 | [1] | (93,737) | [2] | (168,211) | [3] | (417,866) | [4] | (1,513,148) | [5] | (918,200) | [6] | (1,952,080) | [3] | (698,583) | [7] | (168,420) | [8] | 108,192 | (82,029) | [9] | (2,431,348) | [10] | (3,017,425) | (2,710,891) | 217,806 | |
Income (loss) before income taxes | 2,653,903 | [9] | (1,883,924) | [10] | (1,918,838) | (3,047,188) | 53,145 | ||||||||||||||||||||
Income Tax Expense (Benefit) | 51 | [10] | (87) | (613,350) | 35,020 | ||||||||||||||||||||||
Net income (loss) | 2,785,049 | [1] | (131,146) | [2] | (195,552) | [3] | 160,776 | [4] | (1,310,583) | [5] | (573,392) | [6] | (1,690,004) | [3] | (495,061) | [7] | (275,963) | [8] | 27,190 | 2,653,903 | [9] | (1,883,975) | [10] | (1,918,751) | (2,433,838) | 18,125 | |
Preferred Stock Dividends | 352 | [3] | 2,378 | [4] | 2,810 | [5] | 2,854 | [6] | 2,864 | [3] | 2,862 | [7] | 2,870 | [8] | 2,872 | 5,664 | [10] | 8,394 | 11,468 | 11,489 | |||||||
Net Income (Loss) Available for Common Stockholders | $ 2,785,049 | [1] | $ (131,146) | [2] | $ (195,904) | [3] | $ 158,398 | [4] | $ (1,313,393) | [5] | $ (576,246) | [6] | $ (1,692,868) | [3] | $ (497,923) | [7] | $ (278,833) | [8] | $ 24,318 | $ 2,653,903 | [9] | $ (1,889,639) | [10] | $ (1,927,145) | $ (2,445,306) | $ 6,636 | |
Earnings (Loss) per Share | |||||||||||||||||||||||||||
Basic | $ 28.17 | [1],[11] | $ (1.34) | [2],[11] | $ (2.01) | [3],[11] | $ 1.65 | [4],[11] | $ (13.81) | [5],[11] | $ (6.08) | [6],[11] | $ (17.92) | [3],[11] | $ (5.27) | [7],[11] | $ (2.97) | [8],[11] | $ 0.26 | [11] | $ 26.99 | [9] | $ (19.91) | [10] | $ (20.11) | $ (25.97) | $ 0.09 |
Diluted | $ 26.58 | [1],[11] | $ (1.34) | [2],[11] | $ (2.01) | [3],[11] | $ 1.55 | [4],[11] | $ (13.81) | [5],[11] | $ (6.08) | [6],[11] | $ (17.92) | [3],[11] | $ (5.27) | [7],[11] | $ (2.97) | [8],[11] | $ 0.24 | [11] | $ 25.33 | [9] | $ (19.91) | [10] | $ (20.11) | $ (25.97) | $ 0.09 |
Weighted Average Number of Common Shares Outstanding | |||||||||||||||||||||||||||
Basic | 98,337 | [9] | 94,926 | [10] | 95,822 | 94,167 | 74,375 | ||||||||||||||||||||
Diluted | 104,787 | [9] | 94,926 | [10] | 95,822 | 94,167 | 74,445 | ||||||||||||||||||||
Net Cash (Used in) Provided by Operating Activities | $ (17,473) | $ (89,924) | $ (166,655) | $ 330,753 | $ 545,460 | ||||||||||||||||||||||
Net Cash Used in Investing Activities | 11,706 | (82,872) | (122,913) | (460,448) | (1,544,575) | ||||||||||||||||||||||
Net Cash (Used in) Provided by Financing Activities | (32,123) | (258,162) | (264,022) | 740,737 | 1,144,921 | ||||||||||||||||||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (37,890) | (430,958) | (553,590) | 611,042 | $ 145,806 | ||||||||||||||||||||||
Reorganization expenses | $ 58,000 | $ 32,600 | 90,600 | ||||||||||||||||||||||||
Gain on early extinguishment of debt | $ 777,000 | $ 290,300 | $ 458,300 | 748,600 | 1,525,596 | ||||||||||||||||||||||
Professional fees | 90,568 | 14,201 | |||||||||||||||||||||||||
Total debt (Liabilities subject to compromise) | 2,763,739 | $ 2,764,008 | 2,763,739 | 2,764,008 | |||||||||||||||||||||||
Reorganization items fair value adjustment gains | $ 830,500 | 830,500 | |||||||||||||||||||||||||
Impairment of oil and natural gas properties | $ 142,600 | $ 340,500 | $ 1,425,800 | $ 904,700 | $ 1,852,300 | $ 569,600 | $ 329,300 | $ 86,820 | $ 2,330,500 | $ 2,813,570 | $ 2,421,884 | ||||||||||||||||
[1] | Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | ||||||||||||||||||||||||||
[2] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million. | ||||||||||||||||||||||||||
[3] | Included in Operating income (loss) is impairment of oil and natural gas properties of $142.6 million. | ||||||||||||||||||||||||||
[4] | Included in Operating income (loss) is impairment of oil and natural gas properties of $340.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $777.0 million. | ||||||||||||||||||||||||||
[5] | Included in Operating income (loss) is impairment of oil and natural gas properties of $1,425.8 million and also included in Net income (loss) is gain on early extinguishment of debt of $290.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $904.7 million and also included in Net income (loss) is gain on early extinguishment of debt of $458.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million.Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | ||||||||||||||||||||||||||
[6] | Included in Operating income (loss) is impairment of oil and natural gas properties of $904.7 million and also included in Net income (loss) is gain on early extinguishment of debt of $458.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million.Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | ||||||||||||||||||||||||||
[7] | Included in Operating income (loss) is impairment of oil and natural gas properties of $569.6 million. | ||||||||||||||||||||||||||
[8] | Included in Operating income (loss) is goodwill impairment of $329.3 million. | ||||||||||||||||||||||||||
[9] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. | ||||||||||||||||||||||||||
[10] | Included in Operating income (loss) is impairment of oil and natural gas properties of $2,330.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $748.6 million. | ||||||||||||||||||||||||||
[11] | The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter. |
Selected Quarterly Financial 99
Selected Quarterly Financial Data (Unaudited Quarterly Financial Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |||||||||||||
Net income (loss) per share attributable to common stockholders(1) | |||||||||||||||||||||||||||
Gain (loss) on settlement of liabilties subject to compromise | $ 2,008,500 | ||||||||||||||||||||||||||
Predecessor [Member] | |||||||||||||||||||||||||||
Revenues | 153,065 | [1] | $ 142,611 | [2] | $ 147,804 | [3] | $ 116,285 | [4] | $ 184,615 | [5] | $ 257,823 | [6] | $ 219,460 | [3] | $ 221,580 | [7] | $ 502,971 | [8] | $ 461,441 | $ 295,676 | [9] | $ 442,438 | [10] | $ 706,527 | $ 1,405,452 | $ 1,153,123 | |
Operating Income (Loss) | 11,708 | [1] | (93,737) | [2] | (168,211) | [3] | (417,866) | [4] | (1,513,148) | [5] | (918,200) | [6] | (1,952,080) | [3] | (698,583) | [7] | (168,420) | [8] | 108,192 | (82,029) | [9] | (2,431,348) | [10] | (3,017,425) | (2,710,891) | 217,806 | |
Net income (loss) | 2,785,049 | [1] | (131,146) | [2] | (195,552) | [3] | 160,776 | [4] | (1,310,583) | [5] | (573,392) | [6] | (1,690,004) | [3] | (495,061) | [7] | (275,963) | [8] | 27,190 | 2,653,903 | [9] | (1,883,975) | [10] | (1,918,751) | (2,433,838) | 18,125 | |
Preferred Stock Dividends | 352 | [3] | 2,378 | [4] | 2,810 | [5] | 2,854 | [6] | 2,864 | [3] | 2,862 | [7] | 2,870 | [8] | 2,872 | 5,664 | [10] | 8,394 | 11,468 | 11,489 | |||||||
Net income (loss) available for common stockholders | $ 2,785,049 | [1] | $ (131,146) | [2] | $ (195,904) | [3] | $ 158,398 | [4] | $ (1,313,393) | [5] | $ (576,246) | [6] | $ (1,692,868) | [3] | $ (497,923) | [7] | $ (278,833) | [8] | $ 24,318 | $ 2,653,903 | [9] | $ (1,889,639) | [10] | $ (1,927,145) | $ (2,445,306) | $ 6,636 | |
Net income (loss) per share attributable to common stockholders(1) | |||||||||||||||||||||||||||
Basic | $ 28.17 | [1],[11] | $ (1.34) | [2],[11] | $ (2.01) | [3],[11] | $ 1.65 | [4],[11] | $ (13.81) | [5],[11] | $ (6.08) | [6],[11] | $ (17.92) | [3],[11] | $ (5.27) | [7],[11] | $ (2.97) | [8],[11] | $ 0.26 | [11] | $ 26.99 | [9] | $ (19.91) | [10] | $ (20.11) | $ (25.97) | $ 0.09 |
Diluted | $ 26.58 | [1],[11] | $ (1.34) | [2],[11] | $ (2.01) | [3],[11] | $ 1.55 | [4],[11] | $ (13.81) | [5],[11] | $ (6.08) | [6],[11] | $ (17.92) | [3],[11] | $ (5.27) | [7],[11] | $ (2.97) | [8],[11] | $ 0.24 | [11] | $ 25.33 | [9] | $ (19.91) | [10] | $ (20.11) | $ (25.97) | $ 0.09 |
Impairment of oil and natural gas properties | $ 142,600 | $ 340,500 | $ 1,425,800 | $ 904,700 | $ 1,852,300 | $ 569,600 | $ 329,300 | $ 86,820 | $ 2,330,500 | $ 2,813,570 | $ 2,421,884 | ||||||||||||||||
Gain on early extinguishment of debt | $ 777,000 | $ 290,300 | $ 458,300 | $ 748,600 | $ 1,525,596 | ||||||||||||||||||||||
Reorganization expenses | $ 58,000 | $ 32,600 | 90,600 | ||||||||||||||||||||||||
Reorganization items fair value adjustment gains | $ 830,500 | $ 830,500 | |||||||||||||||||||||||||
[1] | Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | ||||||||||||||||||||||||||
[2] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million. | ||||||||||||||||||||||||||
[3] | Included in Operating income (loss) is impairment of oil and natural gas properties of $142.6 million. | ||||||||||||||||||||||||||
[4] | Included in Operating income (loss) is impairment of oil and natural gas properties of $340.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $777.0 million. | ||||||||||||||||||||||||||
[5] | Included in Operating income (loss) is impairment of oil and natural gas properties of $1,425.8 million and also included in Net income (loss) is gain on early extinguishment of debt of $290.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $904.7 million and also included in Net income (loss) is gain on early extinguishment of debt of $458.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million.Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | ||||||||||||||||||||||||||
[6] | Included in Operating income (loss) is impairment of oil and natural gas properties of $904.7 million and also included in Net income (loss) is gain on early extinguishment of debt of $458.3 million.Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) is reorganization expenses of $32.6 million.Included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment gain of $830.5 and reorganization expenses of $58.0 million. | ||||||||||||||||||||||||||
[7] | Included in Operating income (loss) is impairment of oil and natural gas properties of $569.6 million. | ||||||||||||||||||||||||||
[8] | Included in Operating income (loss) is goodwill impairment of $329.3 million. | ||||||||||||||||||||||||||
[9] | Included in Operating income (loss) is impairment of oil and natural gas properties of $86.8 million and also included in Net income (loss) are reorganization items being gain on settlement of liabilities subject to compromise of $2,008.5 million, fair value adjustment of $830.5 and reorganization expenses of $90.6 million. | ||||||||||||||||||||||||||
[10] | Included in Operating income (loss) is impairment of oil and natural gas properties of $2,330.5 million and also included in Net income (loss) is gain on early extinguishment of debt of $748.6 million. | ||||||||||||||||||||||||||
[11] | The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter. |
Supplementary Oil and Gas In100
Supplementary Oil and Gas Information (Narrative) (Details) $ in Thousands | Dec. 31, 2016USD ($)MMBoe | Dec. 31, 2016USD ($)MMBoe$ / agreement | Dec. 31, 2016USD ($)MMBoe | Jun. 30, 2016USD ($)MMBoe | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($)MMBoe | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($)MMBoe | Jun. 30, 2013USD ($)MMBoe |
Reserve Quantities [Line Items] | |||||||||
Proved undeveloped reserves MMBOE | 36.5 | 36.5 | 36.5 | ||||||
Expected, development costs proved undeveloped reserves | $ | $ 443,200 | ||||||||
Previously Excluded Now Re-Included [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Extensions and discoveries | 36,500,000 | ||||||||
Successor [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Proved developed reserves, MMBOE | 85,439 | 85,439 | 85,439 | ||||||
Standardized measure of discounted future net cash flows | $ | $ 135,410 | $ 135,410 | $ 135,410 | ||||||
Oil and natural gas properties - full cost method of accounting, unevaluated properties | $ | $ 376,138 | $ 376,138 | $ 376,138 | ||||||
Proved reserves | 121,937 | 121,937 | 121,937 | ||||||
Extensions and discoveries | 36,852 | ||||||||
Revisions of previous estimates | 6,418 | ||||||||
Production | (7,897) | ||||||||
Predecessor [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Proved developed reserves, MMBOE | 86,564 | 125,345 | 149,942 | 109,493 | |||||
Cost associated with acquisition of proved reserves | $ | $ 1,500 | $ 26,400 | $ 2,046,879 | ||||||
Standardized measure of discounted future net cash flows | $ | 58,353 | $ 2,757,410 | $ 5,947,525 | $ 4,481,522 | |||||
Development costs | $ | $ 22,300 | 57,400 | $ 608,605 | $ 632,262 | |||||
Oil and natural gas properties - full cost method of accounting, unevaluated properties | $ | $ 42,212 | $ 436,357 | |||||||
Proved reserves | 86,564 | 183,496 | 246,198 | 178,500 | |||||
Extensions and discoveries | 1,704 | 17,295 | 20,424 | ||||||
Revisions of previous estimates | (91,031) | (46,333) | (8,537) | ||||||
Production | (19,209) | (21,504) | (16,437) | ||||||
Transferred to the Full Cost Pool [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Oil and natural gas properties - full cost method of accounting, unevaluated properties | $ | $ 336,500 | ||||||||
Oil Reserves [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Average adjusted oil prices | $ / agreement | 41.51 | ||||||||
Oil Reserves [Member] | West Texas Intermediate [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Commodity prices used in determining future cash flows before differentials | $ / agreement | 42.74 | ||||||||
Unweighted average price for first-day-of-the-month | $ / agreement | 42.74 | ||||||||
Differential price | $ / agreement | 1.23 | ||||||||
Natural Gas Reserves [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Average price of Natural Gas Liquids | $ / agreement | 21.63 | ||||||||
Average adjusted Natural Gas price | $ / agreement | 2.29 | ||||||||
Natural Gas Reserves [Member] | Henry Hub [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Commodity prices used in determining future cash flows before differentials | $ / agreement | 2.48 | ||||||||
Proved Developed Reserves [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Increase (decrease) percentage of additions to proved developed reserves from 4 fields | 41.00% | 41.00% | 41.00% | ||||||
Increase (decrease) in proved reserve estimates | 35,400,000 | ||||||||
Proved Undeveloped Reserves [Member] | |||||||||
Reserve Quantities [Line Items] | |||||||||
Proved Developed Reserves upward Revision MMBOE | 6.4 |
Supplementary Oil and Gas In101
Supplementary Oil and Gas Information (Costs Incurred for Oil And Gas Property Acquisition, Exploration And Development Activities) (Detail) - Predecessor [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property acquisitions | ||||
Proved | $ 1,500 | $ 26,400 | $ 2,046,879 | |
Unevaluated | $ 2,304 | 924,882 | ||
Exploration costs | 1,400 | 38,183 | 153,136 | |
Development costs | $ 22,300 | $ 57,400 | $ 608,605 | $ 632,262 |
Supplementary Oil and Gas In102
Supplementary Oil and Gas Information (Estimated Quantities of Proved Domestic Oil and Gas Reserves and Changes in Quantities of Proved Developed and Undeveloped Reserves) (Details) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2016MMBoeMMBblsMMcf | Jun. 30, 2016MMBoeMMBblsMMcf | Jun. 30, 2015MMBoeMMBblsMMcf | Jun. 30, 2014MMBoeMMBblsMMcf | Jun. 30, 2013MMBoeMMBblsMMcf | |
Successor [Member] | |||||
Reserve Quantities [Line Items] | |||||
Production | MMBoe | (7,897) | ||||
Extensions and discoveries | MMBoe | 36,852 | ||||
Revisions of previous estimates | MMBoe | 6,418 | ||||
Proved reserves, ending balance, Total | MMBoe | 121,937 | ||||
Proved developed reserves, MMBOE | MMBoe | 85,439 | ||||
Proved undeveloped reserves, MBOE | MMBoe | 36,498 | ||||
Successor [Member] | Oil Reserves [Member] | |||||
Reserve Quantities [Line Items] | |||||
Production | MMBbls | (5,649) | ||||
Extensions and discoveries | MMBbls | 32,221 | ||||
Revisions of previous estimates | MMBbls | 5,453 | ||||
Proved reserves, ending balance | MMBbls | 98,398 | ||||
Proved developed reserves | MMBbls | 66,505 | ||||
Proved undeveloped reserves | MMBbls | 31,892 | ||||
Successor [Member] | Natural Gas Reserves [Member] | |||||
Reserve Quantities [Line Items] | |||||
Production | MMcf | (13,485) | ||||
Extensions and discoveries | MMcf | 27,788 | ||||
Revisions of previous estimates | MMcf | 5,788 | ||||
Proved reserves, ending balance | MMcf | 141,238 | ||||
Proved developed reserves | MMcf | 113,603 | ||||
Proved undeveloped reserves | MMcf | 27,635 | ||||
Predecessor [Member] | |||||
Reserve Quantities [Line Items] | |||||
Proved reserves, beginning balance, Total | MMBoe | 86,564 | 183,496 | 246,198 | 178,500 | |
Production | MMBoe | (19,209) | (21,504) | (16,437) | ||
Extensions and discoveries | MMBoe | 1,704 | 17,295 | 20,424 | ||
Revisions of previous estimates | MMBoe | (91,031) | (46,333) | (8,537) | ||
Sales of reserves | MMBoe | (12,160) | (4,722) | |||
Purchases of reserves | MMBoe | 11,604 | 76,970 | |||
Proved reserves, ending balance, Total | MMBoe | 86,564 | 183,496 | 246,198 | ||
Proved developed reserves, MMBOE | MMBoe | 86,564 | 125,345 | 149,942 | 109,493 | |
Proved undeveloped reserves, MBOE | MMBoe | 58,151 | 96,256 | 69,007 | ||
Predecessor [Member] | Oil Reserves [Member] | |||||
Reserve Quantities [Line Items] | |||||
Proved reserves, beginning balance | MMBbls | 66,373 | 137,072 | 185,389 | 133,647 | |
Production | MMBbls | (13,547) | (15,259) | (10,978) | ||
Extensions and discoveries | MMBbls | 1,416 | 10,573 | 17,141 | ||
Revisions of previous estimates | MMBbls | (64,584) | (33,730) | (3,567) | ||
Sales of reserves | MMBbls | (9,901) | (4,159) | |||
Purchases of reserves | MMBbls | 6,016 | 53,305 | |||
Proved reserves, ending balance | MMBbls | 66,373 | 137,072 | 185,389 | ||
Proved developed reserves | MMBbls | 66,373 | 94,013 | 112,789 | 80,223 | |
Proved undeveloped reserves | MMBbls | 43,059 | 72,600 | 53,424 | ||
Predecessor [Member] | Natural Gas Reserves [Member] | |||||
Reserve Quantities [Line Items] | |||||
Proved reserves, beginning balance | MMcf | 121,147 | 278,543 | 364,856 | 269,121 | |
Production | MMcf | (33,973) | (37,472) | (32,754) | ||
Extensions and discoveries | MMcf | 1,729 | 40,330 | 19,703 | ||
Revisions of previous estimates | MMcf | (158,681) | (75,617) | (29,822) | ||
Sales of reserves | MMcf | (13,554) | (3,378) | |||
Purchases of reserves | MMcf | 33,529 | 141,986 | |||
Proved reserves, ending balance | MMcf | 121,147 | 278,543 | 364,856 | ||
Proved developed reserves | MMcf | 121,147 | 187,993 | 222,916 | 175,623 | |
Proved undeveloped reserves | MMcf | 90,550 | 141,940 | 93,498 |
Supplementary Oil and Gas In103
Supplementary Oil and Gas Information (Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Gas Reserves) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Successor [Member] | |||||
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Total | $ 135,410 | ||||
Predecessor [Member] | |||||
Future cash inflows | 4,344,985 | $ 2,966,317 | $ 10,641,151 | $ 20,162,506 | |
Production costs | 2,648,363 | 2,223,645 | 4,131,526 | 5,500,669 | |
Development and abandonment costs | 1,587,527 | 1,033,717 | 1,970,526 | 2,959,994 | |
Income taxes | 168,655 | 2,546,155 | |||
Future net cash flows | 109,095 | (291,045) | 4,370,444 | 9,155,688 | |
Less: Ten percent annual discount for estimated timing of cash flows | $ (26,315) | (349,398) | 1,613,034 | 3,208,163 | |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Total | $ 58,353 | $ 2,757,410 | $ 5,947,525 | $ 4,481,522 |
Supplementary Oil and Gas In104
Supplementary Oil and Gas Information (Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows Applicable to Proved Crude Oil and Natural Gas Reserves) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Successor [Member] | ||||
End of year | $ 135,410 | |||
Predecessor [Member] | ||||
Beginning of year | 58,353 | $ 2,757,410 | $ 5,947,525 | $ 4,481,522 |
Changes in prices and costs | (104,993) | (3,287,459) | (2,959,883) | (196,159) |
Changes in quantities | 53,585 | (214,631) | (2,390,099) | (389,570) |
Additions to proved reserves resulting from extensions, discoveries and improved recovery, less related costs | 325,892 | 26,911 | 201,234 | 533,133 |
Purchases (sales) of reserves in place | 212,961 | (244,507) | 1,735,957 | |
Accretion of discount | (893) | 215,297 | 760,175 | 614,964 |
Sales, net of production and gathering and transportation costs | (131,947) | (212,581) | (676,949) | (836,019) |
Net change in income taxes | 77,025 | 1,576,954 | 14,134 | |
Changes in rate of production and other | (2,704) | 4,189 | (191,668) | (253,290) |
Development costs incurred | 11,283 | 10,493 | 237,173 | 247,865 |
Changes in estimated future development and abandonment costs | (73,166) | 468,738 | 497,455 | (5,012) |
Net change | $ 77,057 | (2,699,057) | (3,190,115) | 1,466,003 |
End of year | $ 58,353 | $ 2,757,410 | $ 5,947,525 |
Uncategorized Items - egxg-2016
Label | Element | Value |
Successor [Member] | ||
Adjustments to additional paid in capital Successor common stock warrants | exxi_AdjustmentsToAdditionalPaidInCapitalSuccessorCommonStockWarrants | $ 8,056,000 |
Stock Issued During Period Value New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | 872,562,000 |
Retained Earnings [Member] | Successor [Member] | ||
Net Income Loss | us-gaap_NetIncomeLoss | $ (406,275,000) |
Common Stock [Member] | Successor [Member] | ||
Stock Issued During Period Shares New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 33,212,000 |
Stock Issued During Period Value New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 332,000 |
Additional Paid In Capital [Member] | Successor [Member] | ||
Adjustments to additional paid in capital Successor common stock warrants | exxi_AdjustmentsToAdditionalPaidInCapitalSuccessorCommonStockWarrants | 8,056,000 |
Stock Issued During Period Value New Issues | us-gaap_StockIssuedDuringPeriodValueNewIssues | $ 872,230,000 |