Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AREX | |
Entity Registrant Name | Approach Resources Inc | |
Entity Central Index Key | 1405073 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 40,560,219 |
Unaudited_Consolidated_Balance
Unaudited Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $294 | $432 |
Accounts receivable: | ||
Joint interest owners | 154 | 132 |
Oil, NGL and gas sales | 17,394 | 19,635 |
Unrealized gain on commodity derivatives | 30,629 | 39,951 |
Prepaid expenses and other current assets | 1,527 | 929 |
Total current assets | 49,998 | 61,079 |
PROPERTIES AND EQUIPMENT: | ||
Oil and gas properties, at cost, using the successful efforts method of accounting | 1,782,287 | 1,708,278 |
Furniture, fixtures and equipment | 5,613 | 5,561 |
Total oil and gas properties and equipment | 1,787,900 | 1,713,839 |
Less accumulated depletion, depreciation and amortization | -408,598 | -382,180 |
Net oil and gas properties and equipment | 1,379,302 | 1,331,659 |
Other assets | 8,296 | 8,689 |
Total assets | 1,437,596 | 1,401,427 |
CURRENT LIABILITIES: | ||
Accounts payable | 23,831 | 33,336 |
Oil, NGL and gas sales payable | 4,831 | 8,536 |
Deferred income taxes - current | 10,720 | 14,242 |
Accrued liabilities | 49,476 | 50,738 |
Total current liabilities | 88,858 | 106,852 |
NON-CURRENT LIABILITIES: | ||
Senior secured credit facility | 210,000 | 150,000 |
Senior notes | 250,000 | 250,000 |
Deferred income taxes | 110,203 | 110,677 |
Asset retirement obligations | 9,734 | 9,571 |
Total liabilities | 668,795 | 627,100 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY : | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized none outstanding | ||
Common stock, $0.01 par value, 90,000,000 shares authorized, 40,562,699 and 39,814,199 issued and outstanding, respectively | 399 | 399 |
Additional paid-in capital | 575,070 | 572,888 |
Retained earnings | 193,332 | 201,040 |
Total stockholders' equity | 768,801 | 774,327 |
Total liabilities and stockholders' equity | $1,437,596 | $1,401,427 |
Unaudited_Consolidated_Balance1
Unaudited Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, issued | 40,562,699 | 39,814,199 |
Common stock, outstanding | 40,562,699 | 39,814,199 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUES: | ||
Oil, NGL and gas sales | $33,298 | $61,927 |
EXPENSES: | ||
Lease operating | 7,146 | 7,851 |
Production and ad valorem taxes | 2,828 | 4,169 |
Exploration | 1,090 | 738 |
General and administrative | 8,102 | 8,535 |
Depletion, depreciation and amortization | 26,520 | 23,606 |
Total expenses | 45,686 | 44,899 |
OPERATING (LOSS) INCOME | -12,388 | 17,028 |
OTHER: | ||
Interest expense, net | -5,922 | -5,137 |
Realized gain (loss) on commodity derivatives | 15,901 | -1,339 |
Unrealized loss on commodity derivatives | -9,321 | -5,926 |
Other income | 26 | |
(LOSS) INCOME BEFORE INCOME TAX (BENEFIT) PROVISION | -11,704 | 4,626 |
INCOME TAX (BENEFIT) PROVISION | -3,996 | 1,681 |
NET (LOSS) INCOME | ($7,708) | $2,945 |
(LOSS) EARNINGS PER SHARE: | ||
Basic | ($0.19) | $0.08 |
Diluted | ($0.19) | $0.08 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||
Basic | 40,157,164 | 39,243,296 |
Diluted | 40,157,164 | 39,259,480 |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
OPERATING ACTIVITIES: | ||
Net (loss) income | ($7,708) | $2,945 |
Adjustments to reconcile net (loss) income to cash provided by operating activities: | ||
Depletion, depreciation and amortization | 26,520 | 23,606 |
Amortization of loan origination fees | 393 | 217 |
Unrealized loss on commodity derivatives | 9,321 | 5,926 |
Exploration expense, non cash portion | 592 | 738 |
Share-based compensation expense | 2,217 | 2,654 |
Deferred income tax (benefit) expense | -3,996 | 1,681 |
Other non-cash items | 26 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,219 | 1,870 |
Prepaid expenses and other current assets | -625 | -611 |
Accounts payable | 1,697 | 175 |
Oil, NGL and gas sales payable | -3,705 | 1,984 |
Accrued liabilities | 193 | -1,761 |
Cash provided by operating activities | 27,144 | 39,424 |
INVESTING ACTIVITIES: | ||
Additions to oil and gas properties | -74,540 | -101,463 |
Additions to furniture, fixtures and equipment, net | -52 | -1,950 |
Change in working capital related to investing activities | -12,690 | 9,569 |
Cash used in investing activities | -87,282 | -93,844 |
FINANCING ACTIVITIES: | ||
Borrowings under credit facility | 99,500 | 17,500 |
Repayment of amounts outstanding under credit facility | -39,500 | -17,500 |
Cash provided by financing activities | 60,000 | |
CHANGE IN CASH AND CASH EQUIVALENTS | -138 | -54,420 |
CASH AND CASH EQUIVALENTS, beginning of period | 432 | 58,761 |
CASH AND CASH EQUIVALENTS, end of period | 294 | 4,341 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 1,177 | 429 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTION: | ||
Asset retirement obligations capitalized | $62 | $126 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies |
Organization and Nature of Operations | |
Approach Resources Inc. (“Approach,” the “Company,” “we,” “us” or “our”) is an independent energy company engaged in the exploration, development, production and acquisition of oil and gas properties. We focus on finding and developing oil and natural gas reserves in oil shale and tight gas sands. Substantially all of our properties are located in the Permian Basin in West Texas. | |
Consolidation, Basis of Presentation and Significant Estimates | |
The interim consolidated financial statements of the Company are unaudited and contain all adjustments (consisting primarily of normal recurring accruals) necessary for a fair statement of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full year, due in part to the volatility in prices for oil, natural gas liquids (“NGLs”) and gas, future commodity prices for commodity derivative contracts, global economic and financial market conditions, interest rates, access to sources of liquidity, estimates of reserves, drilling risks, geological risks, transportation restrictions, the timing of acquisitions, product supply and demand, market competition and interruptions of production. You should read these consolidated interim financial statements in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 26, 2015. | |
The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions are eliminated. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the financial statements and disclosures of contingencies. Actual results may differ from those estimates. Significant assumptions are required in the valuation of proved oil and gas reserves, which affect our estimate of depletion expense as well as our impairment analyses. Significant assumptions also are required in our estimation of accrued liabilities, commodity derivatives, income tax provision, share-based compensation and asset retirement obligations. It is at least reasonably possible these estimates could be revised in the near term, and these revisions could be material. Certain prior-year amounts have been reclassified to conform to current-year presentation. These classifications have no impact on the net income reported. | |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update for “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition.” This accounting standard update provides new guidance concerning recognition and measurement of revenue and requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. This new guidance permits adoption through the use of either a full retrospective approach or a modified retrospective approach for annual reporting periods beginning on or after December 15, 2016, with early application not permitted. In April 2015, the FASB proposed to delay the effective date one year, beginning in fiscal year 2018. The proposal will be subject to the FASB’s due process requirement, which includes a period for public comments. We have not determined which transition method we will use and are continuing to evaluate our existing revenue recognition policies to determine whether any of our contracts will be affected by the new requirements. | |
In April 2015, FASB issued an accounting standards update for “Interest – Imputation of Interest,” which simplifies the presentation of debt issuance costs. This accounting standard update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 (and interim periods within those fiscal years), with early adoption permitted and retrospective application required. The Company is evaluating the impact of this new guidance and does not expect it to have a significant impact on the consolidated financial statements. |
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Common Share | 2. Earnings Per Common Share | ||||||||
We report basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share, which includes the effect of all potentially dilutive securities unless their impact is antidilutive. The following table provides a reconciliation of the numerators and denominators of our basic and diluted earnings per share (dollars in thousands, except per-share amounts). | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Income (numerator): | |||||||||
Net (loss) income – basic | $ | (7,708 | ) | $ | 2,945 | ||||
Weighted average shares (denominator): | |||||||||
Weighted average shares – basic | 40,157,164 | 39,243,296 | |||||||
Dilution effect of share-based compensation, treasury method | — | (1) | 16,184 | ||||||
Weighted average shares – diluted | 40,157,164 | 39,259,480 | |||||||
Net (loss) income per share: | |||||||||
Basic | $ | (0.19 | ) | $ | 0.08 | ||||
Diluted | $ | (0.19 | ) | $ | 0.08 | ||||
-1 | Approximately 39,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the three months ended March 31, 2015. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | 3. Long-Term Debt | ||||||||
The following table provides a summary of our long-term debt at March 31, 2015, and December 31, 2014 (in thousands). | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Senior secured credit facility | $ | 210,000 | $ | 150,000 | |||||
Senior Notes | 250,000 | 250,000 | |||||||
Total long-term debt | $ | 460,000 | $ | 400,000 | |||||
Senior Secured Credit Facility | |||||||||
At March 31, 2015, our borrowing base under our amended and restated senior secured credit facility (the “Credit Facility”) was $600 million, with aggregate lender commitments of $450 million and maximum commitments from the lenders of $1 billion. The Credit Facility has a maturity date of May 7, 2019. The borrowing base is redetermined semi-annually in April and October based on our oil, NGL and gas reserves. We, or the lenders, can each request one additional borrowing base redetermination each calendar year. | |||||||||
In April 2015, the lenders under the Credit Facility completed their semi-annual borrowing base redetermination, which reaffirmed the aggregate lender commitments of $450 million and decreased the borrowing base to $525 million from $600 million. | |||||||||
Borrowings bear interest based on the agent bank’s prime rate plus an applicable margin ranging from 0.50% to 1.50%, or the sum of the LIBOR rate plus an applicable margin ranging from 1.50% to 2.50%. In addition, we pay an annual commitment fee ranging from 0.375% to 0.50% of unused borrowings available under the Credit Facility. Margins vary based on the borrowings outstanding compared to the borrowing base of the lenders. | |||||||||
We had outstanding borrowings of $210 million under the Credit Facility at March 31, 2015, compared to $150 million of outstanding borrowings at December 31, 2014. The weighted average interest rate applicable to borrowings under the Credit Facility for the three months ended March 31, 2015, was 1.9%. We had outstanding unused letters of credit under the Credit Facility totaling $0.3 million at March 31, 2015, and December 31, 2014, which reduce amounts available for borrowing under the Credit Facility. | |||||||||
Obligations under the Credit Facility are secured by mortgages on substantially all of the oil and gas properties of the Company and its subsidiaries. The Company is required to maintain liens covering the oil and gas properties of the Company and its subsidiaries representing at least 80% of the total value of all oil and gas properties of the Company and its subsidiaries. | |||||||||
Covenants | |||||||||
The Credit Facility contains two principal financial covenants: | |||||||||
• | a consolidated modified current ratio covenant (as defined in the Credit Facility) that requires us to maintain a ratio of not less than 1.0 to 1.0 as of the last day of any fiscal quarter, and | ||||||||
• | a consolidated interest coverage ratio covenant (as defined in the Credit Facility) that requires us to maintain a ratio of consolidated EBITDAX to interest of not less than 2.5 to 1.0 as of the last day of any fiscal quarter. | ||||||||
The Credit Facility also contains covenants restricting cash distributions and other restricted payments, transactions with affiliates, incurrence of other debt, consolidations and mergers, the level of operating leases, asset sales, investment in other entities and liens on properties. | |||||||||
In addition, the obligations of the Company may be accelerated upon the occurrence of an Event of Default (as defined in the Credit Facility). Events of Default include customary events for a financing agreement of this type, including, without limitation, payment defaults, the inaccuracy of representations and warranties, defaults in the performance of affirmative or negative covenants, defaults on other indebtedness of the Company or its subsidiaries, bankruptcy or related defaults, defaults related to judgments and the occurrence of a Change of Control (as defined in the Credit Facility), which includes instances where a third party becomes the beneficial owner of more than 50% of the Company’s outstanding equity interests entitled to vote. | |||||||||
Senior Notes | |||||||||
In June 2013, we completed our public offering of $250 million principal amount of 7% Senior Notes due 2021 (the “Senior Notes”). Annual interest on the Senior Notes is $17.5 million, payable semi-annually on June 15 and December 15. | |||||||||
We issued the Senior Notes under a senior indenture dated June 11, 2013, among the Company, our subsidiary guarantors and Wells Fargo Bank, National Association, as trustee. The senior indenture, as supplemented by a supplemental indenture dated June 11, 2013, is referred to as the “Indenture.” | |||||||||
On and after June 15, 2016, we may redeem some or all of the Senior Notes at specified redemption prices, plus accrued and unpaid interest to the redemption date. Before June 15, 2016, we may redeem up to 35% of the Senior Notes at a redemption price of 107% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. In addition, before June 15, 2016, we may redeem some or all of the Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. If we sell certain of our assets or experience specific kinds of changes of control, we may be required to offer to purchase the Senior Notes from holders. The Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by each of our subsidiaries, subject to certain customary release provisions. A subsidiary guarantor may be released from its obligations under the guarantee: | |||||||||
• | in connection with any sale or other disposition of all or substantially all of the assets of that guarantor (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) the Company or a subsidiary guarantor, if the sale or other disposition otherwise complies with the Indenture; | ||||||||
• | in connection with any sale or other disposition of the capital stock of that guarantor to a person that is not (either before or after giving effect to such transaction) the Company or a subsidiary guarantor, if that guarantor no longer qualifies as a subsidiary of the Company as a result of such disposition and the sale or other disposition otherwise complies with the Indenture; | ||||||||
• | if the Company designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the Indenture; | ||||||||
• | upon defeasance or covenant defeasance of the notes or satisfaction and discharge of the Indenture, in each case, in accordance with the Indenture; | ||||||||
• | upon the liquidation or dissolution of that guarantor, provided that no default or event of default occurs under the indenture as a result thereof or shall have occurred and is continuing; or | ||||||||
• | in the case of any restricted subsidiary that, after the issue date of the notes is required under the Indenture to guarantee the notes because it becomes a guarantor of indebtedness issued or an obligor under a credit facility with respect to the Company and/or its subsidiaries, upon the release or discharge in full from its (i) guarantee of such indebtedness or (ii) obligation under such credit facility, in each case, which resulted in such restricted subsidiary’s obligation to guarantee the notes. | ||||||||
The Indenture restricts our ability, among other things, to (i) sell certain assets, (ii) pay distributions on, redeem or repurchase, equity interests, (iii) incur additional debt, (iv) make certain investments, (v) enter into transactions with affiliates, (vi) incur liens and (vii) merge or consolidate with another company. These restrictions are subject to a number of important exceptions and qualifications. If at any time the Senior Notes are rated investment grade by both Moody’s Investors Service and Standard & Poor’s Ratings Services and no default (as defined in the Indenture) has occurred and is continuing, many of these restrictions will terminate. The Indenture contains customary events of default. | |||||||||
Subsidiary Guarantors | |||||||||
The Senior Notes are guaranteed on a senior unsecured basis by each of our consolidated subsidiaries. Approach Resources Inc. is a holding company with no independent assets or operations. The subsidiary guarantees are full and unconditional and joint and several, and any subsidiaries of the Company other than the subsidiary guarantors are minor. There are no significant restrictions on the Company’s ability, or the ability of any subsidiary guarantor, to obtain funds from its subsidiaries through dividends, loans, advances or otherwise. | |||||||||
At March 31, 2015, we were in compliance with all of our covenants, and there were no existing defaults or events of default, under our debt instruments. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 4. Commitments and Contingencies |
Our contractual obligations include long-term debt, a daywork drilling contract, operating lease obligations, asset retirement obligations and employment agreements with our executive officers. At March 31, 2015, outstanding borrowings under the Credit Facility were $210 million, compared to $150 million at December 31, 2014. In February 2015, we exercised our early termination option related to one of our daywork drilling contracts. We incurred $0.5 million in expenses related to the early termination of this contract, which is recorded in exploration expense on our consolidated statements of operations. Since December 31, 2014, there have been no other material changes to our contractual obligations. | |
We are involved in various legal and regulatory proceedings arising in the normal course of business. While we cannot predict the outcome of these proceedings with certainty, we do not believe that an adverse result in any pending legal or regulatory proceeding, individually or in the aggregate, would be material to our consolidated financial condition or cash flows. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes |
The effective income tax rate for the three months ended March 31, 2015 and 2014, was 34.1% and 36.3%, respectively. Total income tax expense for the three months ended March 31, 2015, differed from the amount computed by applying the U.S. federal statutory tax rate to pre-tax income due primarily to a tax shortfall related to share-based compensation of $0.2 million and state taxes. Total income tax expense for the three months ended March 31, 2014, differed from the amount computed by applying the U.S. federal statutory tax rate to pre-tax income due primarily to state taxes. |
Fair_Value_of_Financial_and_De
Fair Value of Financial and Derivative Instruments | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Fair Value of Financial and Derivative Instruments | 6. Fair Value of Financial and Derivative Instruments | ||||||||||
The following table provides our outstanding commodity derivative positions at March 31, 2015. | |||||||||||
Commodity and Period | Contract | Volume Transacted | Contract Price | ||||||||
Type | |||||||||||
Crude Oil | |||||||||||
April 2015 – December 2015 | Collar | 1,600 Bbls/d | $84.00/Bbl - $91.00/Bbl | ||||||||
April 2015 – December 2015 | Collar | 1,000 Bbls/d | $90.00/Bbl - $102.50/Bbl | ||||||||
April 2015 – December 2015 | Three-Way Collar | 500 Bbls/d | $75.00/Bbl - $84.00/Bbl - | ||||||||
$94.00/Bbl | |||||||||||
April 2015 – December 2015 | Three-Way Collar | 500 Bbls/d | $75.00/Bbl - $84.00/Bbl - | ||||||||
$95.00/Bbl | |||||||||||
Natural Gas | |||||||||||
April 2015 – June 2015 | Collar | 80,000 MMBtu/month | $4.00/MMBtu - $4.74/MMBtu | ||||||||
April 2015 – December 2015 | Swap | 200,000 MMBtu/month | $4.10/MMBtu | ||||||||
April 2015 – December 2015 | Collar | 130,000 MMBtu/month | $4.00/MMBtu - $4.25/MMBtu | ||||||||
The following table summarizes the fair value of our open commodity derivatives as of March 31, 2015, and December 31, 2014 (in thousands). | |||||||||||
Asset Derivatives | |||||||||||
Balance Sheet Location | Fair Value | ||||||||||
March 31, | December 31, | ||||||||||
2015 | 2014 | ||||||||||
Derivatives not designated as hedging instruments | |||||||||||
Commodity derivatives | Unrealized gain on commodity derivatives | $30,629 | $39,951 | ||||||||
The following table summarizes the change in the fair value of our commodity derivatives (in thousands). | |||||||||||
Income Statement Location | Three Months Ended | ||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Derivatives not designated as hedging instruments | |||||||||||
Commodity derivatives | Unrealized loss on commodity derivatives | $ | (9,321 | ) | $ | (5,926 | ) | ||||
Realized gain (loss) on commodity derivatives | 15,901 | (1,339 | ) | ||||||||
$ | 6,580 | $ | (7,265 | ) | |||||||
Unrealized gains and losses, at fair value, are included on our consolidated balance sheets as current or non-current assets or liabilities based on the anticipated timing of cash settlements under the related contracts. Changes in the fair value of our commodity derivative contracts are recorded in earnings as they occur and included in income (expense) on our consolidated statements of operations. We estimate the fair values of swap contracts based on the present value of the difference in exchange-quoted forward price curves and contractual settlement prices multiplied by notional quantities. We internally valued the option contracts using industry-standard option pricing models and observable market inputs. We use our internal valuations to determine the fair values of the contracts that are reflected on our consolidated balance sheets. Realized gains and losses are also included in income (expense) on our consolidated statements of operations. Accounts receivable related to oil, NGL and gas sales includes $5.1 million and $4.8 million from realized gains on commodity derivatives at March 31, 2015, and December 31, 2014, respectively. | |||||||||||
We are exposed to credit losses in the event of nonperformance by the counterparties on our commodity derivatives positions and have considered the exposure in our internal valuations. However, we do not anticipate nonperformance by the counterparties over the term of the commodity derivatives positions. | |||||||||||
To estimate the fair value of our commodity derivatives positions, we use market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the market approach for recurring fair value measurements and attempt to use the best available information. We determine the fair value based upon the hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and lowest priority to unobservable inputs (Level 3 measurement). The three levels of fair value hierarchy are as follows: | |||||||||||
• | Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. At March 31, 2015, we had no Level 1 measurements. | ||||||||||
• | Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Our derivatives, which consist primarily of commodity swaps and collars, are valued using commodity market data, which is derived by combining raw inputs and quantitative models and processes to generate forward curves. Where observable inputs are available, directly or indirectly, for substantially the full term of the asset or liability, the instrument is categorized in Level 2. At March 31, 2015, all of our commodity derivatives were valued using Level 2 measurements. | ||||||||||
• | Level 3 — Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At March 31, 2015, we had no Level 3 measurements. | ||||||||||
Financial Instruments Not Recorded at Fair Value | |||||||||||
The following table sets forth the fair values of financial instruments that are not recorded at fair value on our financial statements (in thousands). | |||||||||||
March 31, 2015 | |||||||||||
Carrying | Fair Value | ||||||||||
Amount | |||||||||||
Senior Notes | $ | 250,000 | $ | 225,000 | |||||||
The fair value of the Senior Notes uses pricing that is readily available in the public market. Accordingly, the fair value of the Senior Notes would be classified as Level 2 in the fair value hierarchy. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 7. Share-Based Compensation |
In February 2015, we awarded an aggregate of 724,249 restricted shares to our executive officers, of which 482,833 shares are subject to certain performance conditions and 241,416 shares are subject to three-year total shareholder return (“TSR”) conditions, assuming maximum TSR is achieved. The aggregate fair market value of the award, assuming target TSR is achieved, is $4.5 million, which will be expensed over a service period of approximately three years, subject to performance and three-year TSR conditions. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations |
Approach Resources Inc. (“Approach,” the “Company,” “we,” “us” or “our”) is an independent energy company engaged in the exploration, development, production and acquisition of oil and gas properties. We focus on finding and developing oil and natural gas reserves in oil shale and tight gas sands. Substantially all of our properties are located in the Permian Basin in West Texas. | |
Consolidation, Basis of Presentation and Significant Estimates | Consolidation, Basis of Presentation and Significant Estimates |
The interim consolidated financial statements of the Company are unaudited and contain all adjustments (consisting primarily of normal recurring accruals) necessary for a fair statement of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full year, due in part to the volatility in prices for oil, natural gas liquids (“NGLs”) and gas, future commodity prices for commodity derivative contracts, global economic and financial market conditions, interest rates, access to sources of liquidity, estimates of reserves, drilling risks, geological risks, transportation restrictions, the timing of acquisitions, product supply and demand, market competition and interruptions of production. You should read these consolidated interim financial statements in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on February 26, 2015. | |
The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions are eliminated. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the financial statements and disclosures of contingencies. Actual results may differ from those estimates. Significant assumptions are required in the valuation of proved oil and gas reserves, which affect our estimate of depletion expense as well as our impairment analyses. Significant assumptions also are required in our estimation of accrued liabilities, commodity derivatives, income tax provision, share-based compensation and asset retirement obligations. It is at least reasonably possible these estimates could be revised in the near term, and these revisions could be material. Certain prior-year amounts have been reclassified to conform to current-year presentation. These classifications have no impact on the net income reported. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update for “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition.” This accounting standard update provides new guidance concerning recognition and measurement of revenue and requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. This new guidance permits adoption through the use of either a full retrospective approach or a modified retrospective approach for annual reporting periods beginning on or after December 15, 2016, with early application not permitted. In April 2015, the FASB proposed to delay the effective date one year, beginning in fiscal year 2018. The proposal will be subject to the FASB’s due process requirement, which includes a period for public comments. We have not determined which transition method we will use and are continuing to evaluate our existing revenue recognition policies to determine whether any of our contracts will be affected by the new requirements. | |
In April 2015, FASB issued an accounting standards update for “Interest – Imputation of Interest,” which simplifies the presentation of debt issuance costs. This accounting standard update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 (and interim periods within those fiscal years), with early adoption permitted and retrospective application required. The Company is evaluating the impact of this new guidance and does not expect it to have a significant impact on the consolidated financial statements. |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the numerators and denominators of our basic and diluted earnings per share (dollars in thousands, except per-share amounts). | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Income (numerator): | |||||||||
Net (loss) income – basic | $ | (7,708 | ) | $ | 2,945 | ||||
Weighted average shares (denominator): | |||||||||
Weighted average shares – basic | 40,157,164 | 39,243,296 | |||||||
Dilution effect of share-based compensation, treasury method | — | (1) | 16,184 | ||||||
Weighted average shares – diluted | 40,157,164 | 39,259,480 | |||||||
Net (loss) income per share: | |||||||||
Basic | $ | (0.19 | ) | $ | 0.08 | ||||
Diluted | $ | (0.19 | ) | $ | 0.08 | ||||
-1 | Approximately 39,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the three months ended March 31, 2015. |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Long Term Debt | The following table provides a summary of our long-term debt at March 31, 2015, and December 31, 2014 (in thousands). | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Senior secured credit facility | $ | 210,000 | $ | 150,000 | |||||
Senior Notes | 250,000 | 250,000 | |||||||
Total long-term debt | $ | 460,000 | $ | 400,000 | |||||
Fair_Value_of_Financial_and_De1
Fair Value of Financial and Derivative Instruments (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Commodity Derivative Volumes and Prices | The following table provides our outstanding commodity derivative positions at March 31, 2015. | ||||||||||
Commodity and Period | Contract | Volume Transacted | Contract Price | ||||||||
Type | |||||||||||
Crude Oil | |||||||||||
April 2015 – December 2015 | Collar | 1,600 Bbls/d | $84.00/Bbl - $91.00/Bbl | ||||||||
April 2015 – December 2015 | Collar | 1,000 Bbls/d | $90.00/Bbl - $102.50/Bbl | ||||||||
April 2015 – December 2015 | Three-Way Collar | 500 Bbls/d | $75.00/Bbl - $84.00/Bbl - | ||||||||
$94.00/Bbl | |||||||||||
April 2015 – December 2015 | Three-Way Collar | 500 Bbls/d | $75.00/Bbl - $84.00/Bbl - | ||||||||
$95.00/Bbl | |||||||||||
Natural Gas | |||||||||||
April 2015 – June 2015 | Collar | 80,000 MMBtu/month | $4.00/MMBtu - $4.74/MMBtu | ||||||||
April 2015 – December 2015 | Swap | 200,000 MMBtu/month | $4.10/MMBtu | ||||||||
April 2015 – December 2015 | Collar | 130,000 MMBtu/month | $4.00/MMBtu - $4.25/MMBtu | ||||||||
Summary of Fair Value of Open Commodity Derivatives | The following table summarizes the fair value of our open commodity derivatives as of March 31, 2015, and December 31, 2014 (in thousands). | ||||||||||
Asset Derivatives | |||||||||||
Balance Sheet Location | Fair Value | ||||||||||
March 31, | December 31, | ||||||||||
2015 | 2014 | ||||||||||
Derivatives not designated as hedging instruments | |||||||||||
Commodity derivatives | Unrealized gain on commodity derivatives | $30,629 | $39,951 | ||||||||
Summary of Change in Fair Value of Commodity Derivatives | The following table summarizes the change in the fair value of our commodity derivatives (in thousands). | ||||||||||
Income Statement Location | Three Months Ended | ||||||||||
March 31, | |||||||||||
2015 | 2014 | ||||||||||
Derivatives not designated as hedging instruments | |||||||||||
Commodity derivatives | Unrealized loss on commodity derivatives | $ | (9,321 | ) | $ | (5,926 | ) | ||||
Realized gain (loss) on commodity derivatives | 15,901 | (1,339 | ) | ||||||||
$ | 6,580 | $ | (7,265 | ) | |||||||
Summary of Financial Instruments Not Recorded at Fair Value | The following table sets forth the fair values of financial instruments that are not recorded at fair value on our financial statements (in thousands). | ||||||||||
March 31, 2015 | |||||||||||
Carrying | Fair Value | ||||||||||
Amount | |||||||||||
Senior Notes | $ | 250,000 | $ | 225,000 | |||||||
Earnings_Per_Common_Share_Reco
Earnings Per Common Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net (loss) income - basic | ($7,708) | $2,945 |
Weighted average shares - basic | 40,157,164 | 39,243,296 |
Dilution effect of share-based compensation, treasury method | 16,184 | |
Weighted average shares - diluted | 40,157,164 | 39,259,480 |
Basic | ($0.19) | $0.08 |
Diluted | ($0.19) | $0.08 |
Earnings_Per_Common_Share_Reco1
Earnings Per Common Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) (Stock Option [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from computation of earnings per common share | 39,000 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long Term Debt (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Senior secured credit facility | $210,000 | $150,000 |
Senior notes | 250,000 | 250,000 |
Total long-term debt | $460,000 | $400,000 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2015 | |
Line of Credit Facility [Line Items] | |||
Maturity period of senior secured credit facility | 7-May-19 | ||
Aggregate lender commitments | $450,000,000 | ||
Senior secured credit facility, borrowing base | 600,000,000 | ||
Senior secured facility, maximum borrowing capacity | 1,000,000,000 | ||
Senior secured credit facility | 210,000,000 | 150,000,000 | |
Interest rate applicable of senior secured credit facility | 1.90% | ||
Production from liens covering the oil and gas properties | 80.00% | ||
Minimum current ratio | 1 | ||
Interest coverage ratio | 2.5 | ||
Outstanding equity interests ownership percentage | 50.00% | ||
Senior notes | 250,000,000 | 250,000,000 | |
Debt instrument redemption description | Before June 15, 2016, we may redeem some or all of the Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. | ||
Debt instrument, redemption of principal amount percentage | 100.00% | ||
Subsequent Event [Member] | |||
Line of Credit Facility [Line Items] | |||
Aggregate lender commitments | 450,000,000 | ||
Senior secured credit facility, borrowing base | 525,000,000 | ||
Covenants Agreements One [Member] | |||
Line of Credit Facility [Line Items] | |||
Covenant description | A consolidated modified current ratio covenant (as defined in the Credit Facility) that requires us to maintain a ratio of not less than 1.0 to 1.0 as of the last day of any fiscal quarter | ||
Covenants Agreements Two [Member] | |||
Line of Credit Facility [Line Items] | |||
Covenant description | A consolidated interest coverage ratio covenant (as defined in the Credit Facility) that requires us to maintain a ratio of consolidated EBITDAX to interest of not less than 2.5 to 1.0 as of the last day of any fiscal quarter. | ||
Senior Secured Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior secured credit facility, interest rate description | Borrowings bear interest based on the agent bankbs prime rate plus an applicable margin ranging from 0.50% to 1.50%, or the sum of the LIBOR rate plus an applicable margin ranging from 1.50% to 2.50%. In addition, we pay an annual commitment fee ranging from 0.375% to 0.50% of unused borrowings available | ||
Unused letters of credit outstanding | 300,000 | 300,000 | |
Senior Secured Credit Facility [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Annual commitment fee of unused borrowings | 0.38% | ||
Senior Secured Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Annual commitment fee of unused borrowings | 0.50% | ||
Senior Secured Credit Facility [Member] | Interest Rate Calculation One [Member] | Minimum [Member] | Prime Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior secured credit facility, marginal percentage | 0.50% | ||
Senior Secured Credit Facility [Member] | Interest Rate Calculation One [Member] | Maximum [Member] | Prime Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior secured credit facility, marginal percentage | 1.50% | ||
Senior Secured Credit Facility [Member] | Interest Rate Calculation Two [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior secured credit facility, marginal percentage | 1.50% | ||
Senior Secured Credit Facility [Member] | Interest Rate Calculation Two [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior secured credit facility, marginal percentage | 2.50% | ||
7% Senior Notes Originated June 11, 2013 [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior Notes maturity date | 15-Jun-21 | ||
Senior notes | 250,000,000 | ||
Stated interest rate | 7.00% | ||
Debt instrument payment of interest | Semi-annually on June 15 and December 15. | ||
Annual interest expense | $17,500,000 | ||
7% Senior Notes Originated June 11, 2013 [Member] | Debt Instrument, Redemption, Period One [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt instrument redemption description | Before June 15, 2016, we may redeem up to 35% of the Senior Notes at a redemption price of 107% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. | ||
Debt instrument, redemption percentage | 35.00% | ||
Debt instrument, redemption of principal amount percentage | 107.00% |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | |||
Contractual obligation | $500,000 | ||
Senior secured credit facility | $210,000,000 | $150,000,000 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 34.10% | 36.30% |
Share-based compensation tax shortfall | $0.20 |
Fair_Value_of_Financial_and_De2
Fair Value of Financial and Derivative Instruments - Commodity Derivative Volumes and Prices (Detail) | 3 Months Ended |
Mar. 31, 2015 | |
bbl | |
Crude - Oil April 2015 - December 2015 Contract One [Member] | Collar [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | 1,600 |
Crude - Oil April 2015 - December 2015 Contract One [Member] | Collar [Member] | Minimum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 84 |
Crude - Oil April 2015 - December 2015 Contract One [Member] | Collar [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 91 |
Crude - Oil April 2015 - December 2015 Contract Two [Member] | Collar [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | 1,000 |
Crude - Oil April 2015 - December 2015 Contract Two [Member] | Collar [Member] | Minimum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 90 |
Crude - Oil April 2015 - December 2015 Contract Two [Member] | Collar [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 102.5 |
Crude - Oil April 2015 - December 2015 Contract Three [Member] | Three-Way Collar [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | 500 |
Contract Price | 84 |
Crude - Oil April 2015 - December 2015 Contract Three [Member] | Three-Way Collar [Member] | Minimum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 75 |
Crude - Oil April 2015 - December 2015 Contract Three [Member] | Three-Way Collar [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 94 |
Crude - Oil April 2015 - December 2015 Contract Four [Member] | Three-Way Collar [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | 500 |
Contract Price | 84 |
Crude - Oil April 2015 - December 2015 Contract Four [Member] | Three-Way Collar [Member] | Minimum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 75 |
Crude - Oil April 2015 - December 2015 Contract Four [Member] | Three-Way Collar [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 95 |
Natural Gas - April 2015 - June 2015 [Member] | Collar [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | 80,000 |
Natural Gas - April 2015 - June 2015 [Member] | Collar [Member] | Minimum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 4 |
Natural Gas - April 2015 - June 2015 [Member] | Collar [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 4.74 |
Natural Gas - April 2015 - December 2015 Contract One [Member] | Swap [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 4.1 |
Volume Transacted | 200,000 |
Natural Gas - April 2015 - December 2015 Contract Two [Member] | Collar [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | 130,000 |
Natural Gas - April 2015 - December 2015 Contract Two [Member] | Collar [Member] | Minimum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 4 |
Natural Gas - April 2015 - December 2015 Contract Two [Member] | Collar [Member] | Maximum [Member] | |
Derivatives, Fair Value [Line Items] | |
Contract Price | 4.25 |
Fair_Value_of_Financial_and_De3
Fair Value of Financial and Derivative Instruments - Summary of Fair Value of Open Commodity Derivatives (Detail) (Derivative Not Designated as Hedging Instruments, Fair Value of Assets Derivative [Member], Commodity Derivatives [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative Not Designated as Hedging Instruments, Fair Value of Assets Derivative [Member] | Commodity Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gain on commodity derivatives | $30,629 | $39,951 |
Fair_Value_of_Financial_and_De4
Fair Value of Financial and Derivative Instruments - Summary of Change in Fair Value of Commodity Derivatives (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Unrealized loss on commodity derivatives | ($9,321) | ($5,926) |
Realized gain (loss) on commodity derivatives | 15,901 | -1,339 |
Commodity Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized loss on commodity derivatives | -9,321 | -5,926 |
Realized gain (loss) on commodity derivatives | 15,901 | -1,339 |
Derivatives not designated as hedging instruments, total (loss) gain | $6,580 | ($7,265) |
Fair_Value_of_Financial_and_De5
Fair Value of Financial and Derivative Instruments - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Accounts receivable related to oil, NGL and gas sales | $17,394 | $19,635 |
Realized Gain on Commodity Derivatives [Member] | ||
Derivative Instruments And Hedging Activities [Line Items] | ||
Accounts receivable related to oil, NGL and gas sales | $5,100 | $4,800 |
Fair_Value_of_Financial_and_De6
Fair Value of Financial and Derivative Instruments - Summary of Financial Instruments Not Recorded at Fair Value (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Senior notes | $250,000 | $250,000 |
Senior Notes, Fair Value | $225,000 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted shares award | 724,249 |
Fair market value of award assuming target TSR achieved | $4.50 |
Service period | 3 years |
Performance Condition Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted shares award | 482,833 |
Total Shareholder Return Performance Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted shares award | 241,416 |