Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AREX | ||
Entity Registrant Name | Approach Resources Inc | ||
Entity Central Index Key | 1,405,073 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 40,842,788 | ||
Entity Public Float | $ 247 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 600,000 | $ 432,000 |
Accounts receivable: | ||
Joint interest owners | 142,000 | 132,000 |
Oil, NGL and gas sales | 11,747,000 | 19,635,000 |
Unrealized gain on commodity derivatives | 6,737,000 | 39,951,000 |
Prepaid expenses and other current assets | 1,212,000 | 929,000 |
Total current assets | 20,438,000 | 61,079,000 |
PROPERTIES AND EQUIPMENT: | ||
Oil and gas properties, at cost, using the successful efforts method of accounting | 1,853,781,000 | 1,708,278,000 |
Furniture, fixtures and equipment | 5,628,000 | 5,561,000 |
Total oil and gas properties and equipment | 1,859,409,000 | 1,713,839,000 |
Less accumulated depletion, depreciation and amortization | (704,863,000) | (382,180,000) |
Net oil and gas properties and equipment | 1,154,546,000 | 1,331,659,000 |
Total assets | 1,174,984,000 | 1,392,738,000 |
CURRENT LIABILITIES: | ||
Accounts payable | 10,799,000 | 33,336,000 |
Oil, NGL and gas sales payable | 4,245,000 | 8,536,000 |
Deferred income taxes - current | 0 | 14,242,000 |
Accrued liabilities | 13,464,000 | 50,738,000 |
Total current liabilities | 28,508,000 | 106,852,000 |
NON-CURRENT LIABILITIES: | ||
Senior secured credit facility, net | 270,748,000 | 147,072,000 |
Senior notes, net | 225,839,000 | 244,239,000 |
Deferred income taxes | 31,779,000 | 110,677,000 |
Asset retirement obligations | 10,143,000 | 9,571,000 |
Total liabilities | $ 567,017,000 | $ 618,411,000 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
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, 40,788,705 and 39,814,199 issued and outstanding, respectively | $ 408,000 | $ 399,000 |
Additional paid-in capital | 580,623,000 | 572,888,000 |
Retained earnings | 26,936,000 | 201,040,000 |
Total stockholders' equity | 607,967,000 | 774,327,000 |
Total liabilities and stockholders' equity | $ 1,174,984,000 | $ 1,392,738,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 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 | 40,788,705 | 39,814,199 |
Common stock, outstanding | 40,788,705 | 39,814,199 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
REVENUES: | ||||
Oil, NGL and gas sales | $ 131,336,000 | $ 258,529,000 | $ 181,302,000 | |
EXPENSES: | ||||
Lease operating | 28,972,000 | 32,701,000 | 19,152,000 | |
Production and ad valorem taxes | 11,085,000 | 15,934,000 | 12,840,000 | |
Exploration | 4,439,000 | 3,831,000 | 2,238,000 | |
General and administrative | [1] | 28,341,000 | 32,104,000 | 26,524,000 |
Termination costs | 1,436,000 | |||
Impairment of oil and gas properties | 220,197,000 | 0 | 0 | |
Depletion, depreciation and amortization | 109,319,000 | 106,802,000 | 76,956,000 | |
Total expenses | 403,789,000 | 191,372,000 | 137,710,000 | |
OPERATING (LOSS) INCOME | (272,453,000) | 67,157,000 | 43,592,000 | |
OTHER: | ||||
Interest expense, net | (25,066,000) | (21,651,000) | (14,084,000) | |
Gain on debt extinguishment | 10,563,000 | |||
Equity in (losses) earnings of investee | (181,000) | 156,000 | ||
Gain on sale of equity method investment | 90,743,000 | |||
Realized gain (loss) on commodity derivatives | 52,489,000 | 2,359,000 | (1,048,000) | |
Unrealized (loss) gain on commodity derivatives | (33,214,000) | 42,113,000 | (4,596,000) | |
Other income | 172,000 | 67,000 | ||
(LOSS) INCOME BEFORE INCOME TAX (BENEFIT) PROVISION | (267,509,000) | 89,864,000 | 114,763,000 | |
INCOME TAX (BENEFIT) PROVISION: | ||||
Current | (265,000) | (25,000) | 429,000 | |
Deferred | (93,140,000) | 33,717,000 | 42,078,000 | |
NET (LOSS) INCOME | $ (174,104,000) | $ 56,172,000 | $ 72,256,000 | |
(LOSS) EARNINGS PER SHARE: | ||||
Basic | $ (4.30) | $ 1.43 | $ 1.85 | |
Diluted | $ (4.30) | $ 1.42 | $ 1.85 | |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic | 40,464,283 | 39,407,733 | 38,997,815 | |
Diluted | 40,464,283 | 39,419,865 | 39,019,149 | |
[1] | Includes non-cash share-based compensation expense as follows: $7,954 $8,247 $5,901 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Includes non-cash share-based compensation expense | $ 7,954 | $ 8,247 | $ 5,901 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Beginning balance, value at Dec. 31, 2012 | $ 633,468 | $ 388 | $ 560,468 | $ 72,612 |
Beginning balance, shares at Dec. 31, 2012 | 38,829,368 | |||
Issuance of common stock upon exercise of options, value | 58 | 58 | ||
Issuance of common stock upon exercise of options, shares | 3,750 | |||
Issuance of common shares to directors for compensation, value | 630 | 630 | ||
Issuance of common shares to directors for compensation, shares | 24,317 | |||
Restricted stock issuance, net of cancellations, value | $ 2 | (2) | ||
Restricted stock issuance, net of cancellations, shares | 245,262 | |||
Share-based compensation expense | 5,271 | 5,271 | ||
Surrender of restricted shares for payment of income taxes, value | (1,188) | (1,188) | ||
Surrender of restricted shares for payment of income taxes, shares | (54,998) | |||
Net income (loss) | 72,256 | 72,256 | ||
Ending balance, value at Dec. 31, 2013 | $ 710,495 | $ 390 | 565,237 | 144,868 |
Ending balance, shares at Dec. 31, 2013 | 39,047,699 | |||
Issuance of common stock upon exercise of options, shares | 0 | |||
Issuance of common shares to directors for compensation, value | $ 749 | $ 1 | 748 | |
Issuance of common shares to directors for compensation, shares | 40,898 | |||
Restricted stock issuance, net of cancellations, value | $ 8 | (8) | ||
Restricted stock issuance, net of cancellations, shares | 782,708 | |||
Share-based compensation expense | 7,498 | 7,498 | ||
Surrender of restricted shares for payment of income taxes, value | (587) | (587) | ||
Surrender of restricted shares for payment of income taxes, shares | (57,106) | |||
Net income (loss) | 56,172 | 56,172 | ||
Ending balance, value at Dec. 31, 2014 | $ 774,327 | $ 399 | 572,888 | 201,040 |
Ending balance, shares at Dec. 31, 2014 | 39,814,199 | |||
Issuance of common stock upon exercise of options, shares | 0 | |||
Issuance of common shares to directors for compensation, value | $ 735 | $ 1 | 734 | |
Issuance of common shares to directors for compensation, shares | 134,783 | |||
Restricted stock issuance, net of cancellations, value | $ 8 | (8) | ||
Restricted stock issuance, net of cancellations, shares | 897,285 | |||
Share-based compensation expense | 7,219 | 7,219 | ||
Surrender of restricted shares for payment of income taxes, value | (210) | (210) | ||
Surrender of restricted shares for payment of income taxes, shares | (57,562) | |||
Net income (loss) | (174,104) | (174,104) | ||
Ending balance, value at Dec. 31, 2015 | $ 607,967 | $ 408 | $ 580,623 | $ 26,936 |
Ending balance, shares at Dec. 31, 2015 | 40,788,705 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES: | |||
Net (loss) income | $ (174,104,000) | $ 56,172,000 | $ 72,256,000 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depletion, depreciation and amortization | 109,319,000 | 106,802,000 | 76,956,000 |
Impairment of oil and gas properties | 220,197,000 | 0 | 0 |
Amortization of debt issuance costs | 1,561,000 | 1,546,000 | 1,048,000 |
Gain on debt extinguishment | (10,563,000) | ||
Unrealized loss (gain) on commodity derivatives | 33,214,000 | (42,113,000) | 4,596,000 |
Gain on sale of equity method investment | (90,743,000) | ||
Exploration expense | 1,836,000 | 3,831,000 | 2,238,000 |
Share-based compensation expense | 7,954,000 | 8,247,000 | 5,901,000 |
Deferred income tax (benefit) expense | (93,140,000) | 33,717,000 | 42,078,000 |
Equity in losses (earnings) of investee | 181,000 | (156,000) | |
Other non-cash items | (172,000) | (179,000) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 7,878,000 | 3,262,000 | (10,239,000) |
Prepaid expenses and other current assets | (325,000) | (179,000) | (45,000) |
Accounts payable | 964,000 | (2,262,000) | 1,478,000 |
Oil, NGL and gas sales payable | (4,291,000) | 2,435,000 | 1,141,000 |
Accrued liabilities | 2,388,000 | 144,000 | 4,186,000 |
Cash provided by operating activities | 102,716,000 | 171,604,000 | 110,695,000 |
INVESTING ACTIVITIES: | |||
Additions to oil and gas properties | (151,178,000) | (390,506,000) | (296,409,000) |
Proceeds from sale of equity method investment, net of contributions | (181,000) | 100,791,000 | |
Change in restricted cash | 7,350,000 | (7,350,000) | |
Additions to furniture, fixtures and equipment, net | (67,000) | (3,024,000) | (429,000) |
Change in working capital related to investing activities | (66,102,000) | 9,189,000 | 16,073,000 |
Cash used in investing activities | (217,347,000) | (377,172,000) | (187,324,000) |
FINANCING ACTIVITIES: | |||
Borrowings under credit facility | 272,000,000 | 353,921,000 | 129,950,000 |
Repayment of amounts outstanding under credit facility | (149,000,000) | (203,921,000) | (235,950,000) |
Proceeds from issuance of senior notes | 242,824,000 | ||
Extinguishment of senior notes | (8,722,000) | ||
Tax withholdings related to restricted stock | (210,000) | (587,000) | (1,188,000) |
Proceeds from issuance of common stock upon exercise of stock options | 58,000 | ||
Loan origination fees | (2,174,000) | (1,071,000) | |
Change in working capital related to financing activities | 731,000 | ||
Cash provided by financing activities | 114,799,000 | 147,239,000 | 134,623,000 |
CHANGE IN CASH AND CASH EQUIVALENTS | 168,000 | (58,329,000) | 57,994,000 |
CASH AND CASH EQUIVALENTS, beginning of year | 432,000 | 58,761,000 | 767,000 |
CASH AND CASH EQUIVALENTS, end of year | 600,000 | 432,000 | 58,761,000 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for income taxes | 404,000 | ||
Cash paid for interest | 23,634,000 | 20,232,000 | 12,392,000 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTION: | |||
Acquisition of oil and gas properties | 510,000 | 132,000 | |
Asset retirement obligations capitalized | $ 151,000 | $ 898,000 | $ 584,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 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 focused on the exploration, development, production and acquisition of unconventional oil and gas properties. We focus on finding and developing oil and natural gas reserves in oil shale and tight gas sands. Our properties are primarily located in the Permian Basin in West Texas. We also own interests in the East Texas Basin. Consolidation, Basis of Presentation and Significant Estimates The accompanying 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 natural 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. Cash and Cash Equivalents We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. At times, the amount of cash and cash equivalents on deposit in financial institutions exceeds federally insured limits. We monitor the soundness of the financial institutions and believe the Company’s risk is negligible. Oil and Gas Properties Capitalized Costs. December 31, 2015 2014 Mineral interests in properties: Unproved leasehold costs $ 37,853 $ 46,240 Proved leasehold costs 44,122 42,409 Wells and related equipment and facilities 1,753,649 1,592,477 Support equipment 9,545 8,518 Uncompleted wells, equipment and facilities 8,612 18,634 Total costs 1,853,781 1,708,278 Less accumulated depreciation, depletion and amortization (702,139 ) (379,892 ) Net capitalized costs $ 1,151,642 $ 1,328,386 We follow the successful efforts method of accounting for our oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties and to drill and equip development wells and related asset retirement costs are capitalized. Costs to drill exploratory wells are capitalized pending determination of whether the wells have proved reserves. If we determine that the wells do not have proved reserves, the costs are charged to exploration expense. There were no exploratory wells capitalized, pending determination of whether the wells have proved reserves, at December 31, 2015 or 2014. Geological and geophysical costs, including seismic studies are charged to exploration expense as incurred. We capitalize interest on expenditures for significant exploration and development projects that last more than six months while activities are in progress to bring the assets to their intended use and while these expenditures are excluded from our depletable base. Through December 31, 2015, we have capitalized no interest costs because our individual wells and infrastructure projects are generally developed in less than six months. Costs incurred to maintain wells and related equipment are charged to expense as incurred. On the sale or retirement of a complete unit of a proved property, the cost and related accumulated depreciation, depletion and amortization are eliminated from the property accounts, and the resulting gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost is charged to accumulated depreciation, depletion and amortization with no gain or loss recognized in income. Capitalized amounts attributable to proved oil and gas properties are depleted by the unit-of-production method over proved reserves using the unit conversion ratio of six Mcf of gas to one barrel of oil equivalent (“Boe”), and one barrel of NGLs to one Boe. The ratios of six Mcf of natural gas to one Boe and one barrel of NGLs to one Boe do not assume price equivalency and, given price differentials, the price for a Boe for natural gas may differ significantly from the price for a barrel of oil. Depreciation, depletion and amortization expense for oil and gas producing property and related equipment was $108.8 million, $106.2 million and $76.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Capitalized costs related to proved oil and gas properties, including wells and related equipment and facilities, are periodically evaluated for impairment based on an analysis of undiscounted future net cash flows in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets, Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value, and a loss is recognized at the time of impairment by providing an impairment allowance. Certain leases that we consider non-core to our development of Project Pangea were impaired during the year ended December 31, 2015, as we do not plan to develop them in the current commodity price environment. As a result, we recorded a non-cash impairment loss of unproved property of $5.5 million for the year ended December 31, 2015. The total impairment loss of $220.2 million for the year ended December 31, 2015, is recorded in impairment of oil and gas properties on our consolidated statements of operations, and in accumulated depletion, depreciation and amortization on our consolidated balance sheets. On the sale of an entire interest in an unproved property for cash or cash equivalent, gain or loss on the sale is recognized, taking into consideration the amount of any recorded impairment if the property had been assessed individually. If a partial interest in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained. Other Property Furniture, fixtures and equipment are carried at cost. Depreciation of furniture, fixtures and equipment is provided using the straight-line method over estimated useful lives ranging from three to 15 years. Gain or loss on retirement or sale or other disposition of assets is included in income in the period of disposition. Depreciation expense for other property and equipment was $563,000, $588,000 and $502,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Equity Method Investment For investments in which we have the ability to exercise significant influence but do not have control, we follow the equity method of accounting. In September 2012, we entered into a joint venture to build an oil pipeline in Crockett and Reagan Counties, Texas, which is used to transport our oil to market. In October 2013, we completed the sale of the joint venture. As of December 31, 2015, we have no investments that are accounted for under the equity method. See Note 2 for equity method investment disclosures. Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value, as of December 31, 2015 and 2014. See Note 7 for fair value disclosures. Income Taxes We are subject to U.S. federal income taxes along with state income taxes in Texas. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the consolidated statement of income. Based on our analysis, we did not have any uncertain tax positions as of December 31, 2015 or 2014. The Company’s income tax returns are subject to examination by the relevant taxing authorities as follows: U.S. Federal income tax returns for tax years 2012 and forward and Texas income and margin tax returns for tax years 2012 and forward. There are currently no income tax examinations underway for these jurisdictions. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the year of the enacted tax rate change. We monitor our deferred tax assets by jurisdiction to assess their potential realization, and a valuation allowance is recognized on deferred tax assets when we believe that certain of these assets are more likely than not to be realized. In performing this review, we make estimates and assumptions regarding projected future taxable income, the expected timing of reversals of existing temporary differences and the implementation of tax planning strategies. To the extent that a valuation allowance is established or changed during any period, we would recognize expense or benefit within our consolidated tax expense. We do not currently have a valuation allowance on our federal net operating loss carryforwards. Derivative Activity We record our open derivative instruments at fair value on our consolidated balance sheets as either unrealized gains or losses on commodity derivatives. We record changes in such fair value in earnings on our consolidated statements of operations under the caption entitled “unrealized (loss) gain on commodity derivatives.” Although we have not designated our derivative instruments as cash-flow hedges, we use those instruments to reduce our exposure to fluctuations in commodity prices related to our natural gas and oil production. 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. Realized gains and losses are also included in income (expense) on our consolidated statements of operations. Accrued Liabilities The following is a summary of our accrued liabilities at December 31, 2015 and 2014 (in thousands): 2015 2014 Capital expenditures accrual $ 3,476 $ 43,870 Operating expenses and other 9,988 6,868 Total $ 13,464 $ 50,738 Asset Retirement Obligations Our asset retirement obligations relate to future plugging and abandonment expenses on oil and gas properties. Based on the expected timing of payments, the full asset retirement obligation is classified as non-current. There were no significant changes to the asset retirement obligations for the years ended December 31, 2015, 2014 and 2013. Share-Based Compensation We measure and record compensation expense for all share-based payment awards to employees and outside directors based on estimated grant date fair values. We recognize compensation costs for awards granted over the requisite service period based on the grant date fair value in general and administrative expense on our consolidated statements of operations. 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 are reconciliations of the numerators and denominators of our basic and diluted earnings per share, (dollars in thousands, except per-share amounts): For the Years Ended December 31, 2015 2014 2013 Income (numerator): Net (loss) income — basic $ (174,104 ) $ 56,172 $ 72,256 Weighted average shares (denominator): Weighted average shares — basic 40,464,283 39,407,733 38,997,815 Dilution effect of share-based compensation, treasury method — (1) 12,132 21,334 Weighted average shares — diluted 40,464,283 39,419,865 39,019,149 Net (loss) income per share: Basic $ (4.30 ) $ 1.43 $ 1.85 Diluted $ (4.30 ) $ 1.42 $ 1.85 (1) Approximately 39,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the year ended December 31, 2015. Oil and Gas Operations Revenue and Accounts Receivable. Accounts receivable, joint interest owners, consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date. Accounts receivable, oil, NGL and gas sales, consist of uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 to 60 days of production. No interest is charged on past-due balances. Payments made on all accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. No such allowance was considered necessary at December 31, 2015 or 2014. Accounts receivable related to oil, NGL and gas sales includes $4.8 million from realized gains on commodity derivatives at December 31, 2015 and 2014. Oil, NGL and Gas Sales Payable. Production Costs. Exploration expenses. Dependence on Major Customers. Segment Reporting The Company presently operates in one business segment, the exploration and production of oil, NGLs and natural gas. 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 July 2015, FASB delayed the effective date one year, making the new standard effective for interim periods and annual periods beginning after December 15, 2017. 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 update 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. We adopted this accounting standard update during the second quarter. The adoption of this new accounting standard update resulted in a reclassification of debt issuance costs from Other assets to Senior secured credit facility, net and Senior notes, net. See Note 3 “Long-Term Debt” for disclosure of debt issuance costs. Adoption of this accounting standard update did not impact our consolidated statements of operations or cash flows. In September 2015, FASB issued an accounting standards update for “Business Combinations,” which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This new update is effective for financial statements issued for fiscal years beginning after December 15, 2015 (and interim periods within those fiscal years). This new guidance will be adopted prospectively in the first quarter of 2016. 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. In November 2015, FASB issued an accounting standards update for “Income Taxes,” which simplifies the presentation of deferred income taxes. This accounting standard update requires that deferred income taxes be classified as noncurrent in the balance sheet. This new update is effective for financial statements issued for fiscal years beginning after December 15, 2016 (and interim periods within those fiscal years), with early adoption permitted and allows prospective or retrospective application. We adopted this accounting standard update prospectively as of December 31, 2015. At December 31, 2015, we had no deferred tax assets or liabilities classified as current, compared to a current deferred tax liability of $14.2 million as of December 31, 2014. Adoption of this accounting standard update did not impact our consolidated statements of operations or cash flows. |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | 2. Equity Method Investment In September 2012, we entered into a joint venture to build an oil pipeline in Crockett and Reagan Counties, Texas, which is used to transport our oil to market. In October 2012, we made an initial contribution of $10 million to the joint venture for pipeline and facilities construction. In 2013, we contributed $8.3 million to the equity joint venture for pipeline and facilities construction prior to its sale in October 2013. Our contributions were recorded at cost and were included in noncurrent assets, “Equity method investment,” on our consolidated balance sheets and in investing activities, “Contribution to equity method investment,” on our consolidated statements of cash flows. Our share of the investee earnings was recorded on our consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012. In October 2013, we completed the sale of the joint venture, and net proceeds to Approach at closing totaled approximately $109.1 million, after deducting our share of transactional costs paid at closing. We recognized a pre-tax gain of $90.7 million related to this transaction, subject to normal post-closing adjustments, in 2013. Of the $109.1 million in proceeds, $7.4 million was restricted pursuant to an escrow agreement and recorded as restricted cash at December 31, 2013. The escrow agreement terminated on June 1, 2014, and the cash held in escrow was subsequently released. We incurred $0.2 million in post-closing working capital adjustments during the year ended December 31, 2014. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 3. Long-Term Debt The following table provides a summary of our long-term debt at December 31, 2015, and December 31, 2014 (in thousands). December 31, December 31, Senior secured credit facility: Outstanding borrowings $ 273,000 $ 150,000 Debt issuance costs (2,252 ) (2,928 ) Senior secured credit facility, net 270,748 147,072 Senior notes: Principal 230,320 250,000 Debt issuance costs (4,481 ) (5,761 ) Senior notes, net 225,839 244,239 Total long-term debt $ 496,587 $ 391,311 Senior Secured Credit Facility At December 31, 2015, the borrowing base and aggregate lender commitments under our amended and restated senior secured credit facility (the “Credit Facility”) were $450 million, with 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 based on our oil, NGL and gas reserves. We, or the lenders, can each request one additional borrowing base redetermination each calendar year. Borrowings under the Credit Facility 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 $273 million of outstanding borrowings under the Credit Facility at December 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 at December 31, 2015, was 2.2%. We also had outstanding unused letters of credit under our Credit Facility totaling $0.3 million at December 31, 2015 and 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 payable semi-annually on June 15 and December 15. We received net proceeds from the issuance of the Senior Notes of approximately $243 million, after deducting fees and expenses. We used a portion of the net proceeds from the offering to repay all outstanding borrowings under the Credit Facility, fund our capital expenditures for the development of our Wolfcamp shale oil resource play and for general working capital needs. During the year ended December 31, 2015, we repurchased Senior Notes in the open market with an aggregate face value of $19.7 million for a purchase price of $8.8 million, including accrued interest. This resulted in a gain on extinguishment of debt of $10.6 million. 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 (x) guarantee of such indebtedness or (y) 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. On December 15, 2015, we made a semi-annual interest payment of $8.6 million. 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 December 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. |
Termination Costs
Termination Costs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Termination Costs | 4. Termination Costs In September 2015, we reduced our workforce to decrease costs and better align our workforce with the needs of the business and current oil and gas prices. In connection with the reduction, we incurred $1.4 million in expenses, which is recorded in termination costs on our consolidated statements of operations. As of December 31, 2015, $0.4 million in termination costs is recorded in current liabilities on our consolidated balance sheets. We also recorded a benefit of $0.3 million in share-based compensation expense related to the forfeiture unvested shares of restricted stock in connection with our workforce reduction, which is recorded in general and administrative expense on our consolidated statements of operations. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 5. Share-Based Compensation In June 2007, the board of directors and stockholders approved the 2007 Stock Incentive Plan (the “2007 Plan”). Under the 2007 Plan, we may grant restricted stock, stock options, stock appreciation rights, restricted stock units, performance awards, unrestricted stock awards and other incentive awards. Under a Third Amendment to the 2007 Plan effective June 2, 2015, the maximum number of shares of common stock available for the grant of awards under the 2007 Plan after June 2, 2015, is 3,625,000. Awards of any stock options are to be priced at not less than the fair market value at the date of the grant. The vesting period of any stock award is to be determined by the board or an authorized committee at the time of the grant. The term of each stock option is to be fixed at the time of grant and may not exceed 10 years. Shares issued upon stock options exercised are issued as new shares. Share-based compensation expense amounted to $8.0 million, $8.2 million and $5.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. Such amounts represent the estimated fair value of stock awards for which the requisite service period elapsed during those periods. Included in share-based compensation expense in 2014 and 2013 is a benefit of $1.1 million and $1 million, respectively, for forfeited stock awards related to the retirement of two of our executive officers. Share-based compensation expense for the years ended December 31, 2015, 2014 and 2013, included $735,000, $749,000 and $630,000, respectively, related to grants to nonemployee directors. Stock Options There were no stock option grants during the years ended December 31, 2015, 2014 and 2013. As of December 31, 2015, 38,525 options were fully vested and outstanding with a weighted average exercise price of $12.00 and a weighted average remaining contractual term of 1.86 years. There were no options exercised during the years ended December 31, 2015 and 2014. The intrinsic value of the options exercised during the year ended December 31, 2013 was $35,000. There was no tax benefit recognized related to the stock option exercises in the year ended December 31, 2013. Nonvested Shares Share grants totaling 1,278,329 shares, 992,919 shares and 377,379 shares with an approximate aggregate fair market value of $6.2 million, $14.4 million and $8.6 million at the time of grant were granted to employees during the years ended December 31, 2015, 2014 and 2013, respectively. Included in the share grants for 2015, 2014 and 2013, are 724,249 shares, 245,157 shares and 183,672 shares, respectively, awarded to our executive officers. The aggregate fair market value of these shares on the grant date was $4.5 million, $4.5 million and $4.4 million, respectively, to be expensed over a remaining service period of approximately two years, subject to certain performance restrictions. A summary of the status of nonvested shares for the years ended December 31, 2015, 2014 and 2013, is presented below: Shares Weighted Grant-Date Fair Value Nonvested at January 1, 2013 753,079 22.35 Granted 377,379 22.77 Vested (299,110 ) 18.79 Canceled (132,117 ) 24.47 Nonvested at December 31, 2013 699,231 23.70 Granted 992,919 14.48 Vested (400,429 ) 20.18 Canceled (169,311 ) 25.57 Nonvested at December 31, 2014 1,122,410 $ 16.52 Granted 1,278,329 4.87 Vested (419,222 ) 15.26 Canceled (246,261 ) 14.30 Nonvested at December 31, 2015 1,735,256 $ 8.60 As of December 31, 2015, unrecognized compensation expense related to the nonvested shares amounted to $7.9 million, which will be recognized over a remaining service period of three years. Subsequent Restricted Share Award Subsequent to December 31, 2015, 1,100,543 cash settled shares, subject to certain performance conditions, and 550,272 shares, subject to three-year total shareholder return (“TSR”) conditions, assuming maximum TSR, were granted to our executive officers. The aggregate fair market value of the cash settled shares and TSR shares on the grant date was approximately $1 million and $0.3 million, respectively, to be expensed over a remaining service period of approximately 3.5 years. Employee Benefit Plan The Company has a defined contribution employee benefit plan covering substantially all of its employees. We make a matching contribution equal to 100% of each pre-tax dollar contributed by the participant on the first 3% of eligible compensation and 50% on the next 2% of eligible compensation. The Company made contributions to the plan of approximately $404,000, $310,000 and $279,000 during the years ended December 31, 2015, 2014 and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes Our provision for income taxes comprised the following (in thousands): Years Ended December 31, 2015 2014 2013 Current: Federal $ (265 ) $ (25 ) $ 429 State — — — Total current provision for income taxes $ (265 ) $ (25 ) $ 429 Deferred: Federal $ (91,716 ) $ 32,754 $ 41,175 State (1,424 ) 963 903 Total deferred provision for income taxes $ (93,140 ) $ 33,717 $ 42,078 Total income tax expense differed from the amounts computed by applying the U.S. Federal statutory tax rates to pre-tax income (in thousands): Years Ended December 31, 2015 2014 2013 Statutory tax at 35% $ (93,628 ) $ 31,452 $ 40,167 State taxes, net of federal impact (1,463 ) 989 709 Share-based compensation tax shortfall 1,939 1,670 — Permanent differences 26 37 34 Other differences (1,035 ) (456 ) 1,597 Valuation allowance 756 — — Total $ (93,405 ) $ 33,692 $ 42,507 In 2015 and 2014, the Company recorded a tax shortfall related to share-based compensation of $1.9 million and $1.7 million, respectively. This shortfall is for grants in which the realized tax deduction was less than the expense booked for these grants due to a decline in share price from the time of grant. Although we had excess tax benefits related to share-based compensation in prior years, this benefit was not recorded as the excess tax benefits were not realized due to our net operating loss carryforwards. Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and tax basis of assets and liabilities. Our net deferred tax assets and liabilities are recorded as a long-term liability of $31.8 million and $110.7 million at December 31, 2015 and 2014, respectively. At December 31, 2014, $14.2 million of deferred taxes expected to be realized within one year were included in current liabilities. Significant components of net deferred tax assets and liabilities are (in thousands): Years Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 88,230 $ 46,730 Other 1,672 1,305 Total deferred tax assets 89,902 48,035 Deferred tax liabilities: Difference in depreciation, depletion and capitalization methods — oil and gas properties (118,534 ) (158,647 ) Unrealized gain on commodity derivatives (2,391 ) (14,307 ) Total deferred tax liabilities (120,925 ) (172,954 ) Valuation allowance (756 ) — Net deferred tax liability $ (31,779 ) $ (124,919 ) Net operating loss carryforwards for tax purposes have the following expiration dates (in thousands): Expiration Dates Amounts Stock Total 2030 $ 4,083 $ 750 $ 4,833 2031 18,642 1,012 19,654 2032 51,931 2,724 54,655 2033 616 503 1,119 2034 56,511 — 56,511 2035 120,298 — 120,298 Total $ 252,081 $ 4,989 $ 257,070 As of December 31, 2015, we had net operating loss carryforwards of approximately $257.1 million, of which approximately $5 million was generated from the benefit of stock options. When these benefits are realized, they will be credited to additional paid-in capital. |
Derivative Instruments and Fair
Derivative Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Fair Value Measurements | 7. Derivative Instruments and Fair Value Measurements At December 31, 2015, we had the following commodity derivatives positions outstanding: Commodity and Period Contract Volume Transacted Contract Price Crude Oil January 2016 — December 2016 Swap 500 Bbls/d $62.50/Bbl January 2016 — December 2016 Swap 250 Bbls/d $62.55/Bbl January 2016 — June 2016 Swap 500 Bbls/d $40.25/Bbl January 2016 — June 2016 Swap 1,000 Bbls/d $40.00/Bbl Natural Gas March 2016 — December 2016 Swap 100,000 MMBtu/month $2.91/MMBtu March 2016 — December 2016 Swap 100,000 MMBtu/month $2.95/MMBtu After December 31, 2015, we entered into natural gas swaps covering 400,000 MMBtu per month at an average price of $2.45/MMBtu for February 2016 through March 2017, and natural gas collars covering 200,000 MMBtu per month with a floor price of $2.30/MMBtu and a ceiling price of $2.60/MMBtu for April 2017 through December 2017. The following summarizes the fair value of our open commodity derivatives as of December 31, 2015 and 2014 (in thousands): Balance Sheet Location Fair Value December 31, December 31, Derivatives not designated as hedging instruments Commodity derivatives Unrealized gain on commodity derivatives $ 6,737 $ 39,951 The following summarizes the change in the fair value of our commodity derivatives (in thousands): Income Statement Location Year Ended December 31, 2015 2014 2013 Derivatives not designated as hedging instruments Commodity derivatives Unrealized (loss) gain on commodity derivatives $ (33,214 ) $ 42,113 $ (4,596 ) Realized gain (loss) on commodity derivatives 52,489 2,359 (1,048 ) $ 19,275 $ 44,472 $ (5,644 ) 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 value 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. 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 December 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 December 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. The fair value of oil and gas properties used in estimating our recognized impairment loss represents a nonrecurring Level 3 measurement. Nonrecurring Fair Value Measurements Due to the impact of the decline in forward commodity prices during the year ended December 31, 2015, there were indications that the carrying values of certain of our oil and gas properties may be impaired and undiscounted cash flows attributable to these assets indicated their carrying amounts were not expected to be recovered. We estimated the fair value of the proved oil and gas properties and equipment using a discounted cash flow model, which is a Level 3 fair value measurement. Significant inputs used to determine the fair value include estimates of (i) future sales prices for oil and gas based on NYMEX strip prices, (ii) pricing adjustments for differentials, (iii) production costs, (iv) capital expenditures, (v) future oil and gas reserves to be recovered and the timing thereof, and (vi) discount rate. For the year ended December 31, 2015, we recognized an impairment loss of $214.7 million related primarily to our vertical Canyon wells, due to the impact of the decline in forward commodity prices. At September 30, 2015, we had $22 million in value recorded for these properties, which is the estimated fair value. Our estimates of future cash flows attributable to our oil and gas properties could decline further with commodity prices which may result in additional impairment losses. 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). December 31, 2015 Carrying Fair Value Senior Notes, net $ 225,839 $ 82,915 The fair value of the Senior Notes is based on quoted market prices, but the Senior Notes are not actively traded in the public market. Accordingly, the fair value of the Senior Notes would be classified as Level 2 in the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies At December 31, 2015, we had outstanding employment agreements with all four of our executive officers that contained automatic renewal provisions providing that such agreements may be automatically renewed for successive terms of one year unless the employment is terminated at the end of the term by written notice given to the employee not less than 60 days prior to the end of such term. Our maximum commitment under the employment agreements, which would apply if the employees covered by these agreements were each terminated without cause, was approximately $6.3 million at December 31, 2015. This estimate assumes the maximum potential bonus for 2016 is earned by each executive officer during 2016. We lease our office space in Fort Worth, Texas, under a non-cancelable agreement that expires on March 31, 2020. We also have non-cancelable operating lease commitments related to office equipment that expire by 2019. The following is a schedule by years of future minimum rental payments required under our operating lease arrangements as of December 31, 2015 (in thousands): 2016 $ 957 2017 967 2018 975 2019 976 2020 246 Total $ 4,121 Rent expense under our lease arrangements amounted to $1,002,000, $717,000 and $734,000 for the years ended December 31, 2015, 2014 and 2013, respectively. Litigation 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. Environmental Issues We are engaged in oil and gas exploration and production and may become subject to certain liabilities or damages as they relate to environmental clean up of well sites or other environmental restoration or ground water contamination, in connection with drilling or operating oil and gas wells. In connection with our acquisition of existing or previously drilled well bores, we may not be aware of what environmental safeguards were taken at the time such wells were drilled or during such time the wells were operated. Should it be determined that a liability exists with respect to any environmental clean up, restoration or contamination, we would be responsible for curing such a violation or paying damages. No claim has been made, nor are we aware of any liability that exists, as it relates to any environmental clean up, restoration, contamination or the violation of any rules or regulations relating thereto. |
Oil and Gas Producing Activitie
Oil and Gas Producing Activities | 12 Months Ended |
Dec. 31, 2015 | |
Extractive Industries [Abstract] | |
Oil and Gas Producing Activities | 9. Oil and Gas Producing Activities Set forth below is certain information regarding the costs incurred for oil and gas property acquisition, development and exploration activities (in thousands): For the Years Ended December 31, 2015 2014 2013 Property acquisition costs: Unproved properties $ 653 $ 4,578 $ 5,857 Proved properties — — 1,000 Exploration costs 4,439 3,831 2,238 Development costs (1) 146,237 382,995 287,898 Total costs incurred $ 151,329 $ 391,404 $ 296,993 (1) For the years ended December 31, 2015, 2014 and 2013, development costs include $151,000, $898,000 and $584,000, respectively, in non-cash asset retirement obligations. Set forth below is certain information regarding the results of operations for oil and gas producing activities (in thousands): For the Years Ended December 31, 2015 2014 2013 Revenues $ 131,336 $ 258,529 $ 181,302 Production costs (40,057 ) (48,635 ) (31,992 ) Exploration expense (4,439 ) (3,831 ) (2,238 ) Depletion (109,319 ) (106,802 ) (76,956 ) Impairment of oil and gas properties (220,197 ) — — Income tax benefit (expense) 86,120 (35,387 ) (24,996 ) Results of operations $ (156,556 ) $ 63,874 $ 45,120 |
Disclosures About Oil and Gas P
Disclosures About Oil and Gas Producing Activities (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Disclosures About Oil and Gas Producing Activities (unaudited) | 10. Disclosures About Oil and Gas Producing Activities (unaudited) Proved Reserves All of our estimated oil and natural gas reserves are attributable to properties within the United States, primarily in the Permian Basin in West Texas. The estimates of proved reserves and related valuations for the years ended December 31, 2015, 2014 and 2013, were prepared by DeGolyer and MacNaughton, independent petroleum engineers. Each year’s estimate of proved reserves and related valuations were also prepared in accordance with then-current rules and guidelines established by the Securities and Exchange Commission and the Financial Accounting Standards Board. The following table summarizes the prices used in the reserve estimates for 2015, 2014 and 2013. Commodity prices used for the reserve estimates, adjusted for basis differentials, grade and quality, are as follows: 2015 2014 2013 Oil (per Bbl) $ 50.16 $ 94.56 $ 97.28 Natural gas liquids (per Bbl) $ 15.13 $ 31.50 $ 30.16 Gas (per Mcf) $ 2.64 $ 4.55 $ 3.66 Oil, NGL and natural gas reserve estimates are subject to numerous uncertainties inherent in the estimation of quantities of proved reserves and in the projection of future rates of production and the timing of development expenditures. The accuracy of such estimates is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of subsequent drilling, testing and production may cause either upward or downward revision of previous estimates. Further, the volumes considered to be commercially recoverable fluctuate with changes in prices and operating costs. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of currently producing oil and natural gas properties. Accordingly, these estimates are expected to change as additional information becomes available in the future. The following table provides a summary of the changes of the total proved reserves for the years ended December 31, 2015, 2014 and 2013, as well as proved developed and proved undeveloped reserves at the beginning and end of each respective year. Total Proved Reserves Oil (MBbls) NGLs (MBbls) Natural Gas Total (MBoe) Balance — December 31, 2012 37,252 29,100 174,760 95,479 Extensions and discoveries 14,252 6,531 38,993 27,282 Purchases of minerals in place 62 14 197 109 Production(1) (1,444 ) (951 ) (6,737 ) (3,517 ) Revisions to previous estimates (4,055 ) (2,102 ) 8,789 (4,692 ) Balance — December 31, 2013 46,067 32,593 216,002 114,661 Extensions and discoveries 19,347 10,658 79,454 43,247 Production(1) (2,024 ) (1,461 ) (10,773 ) (5,281 ) Revisions to previous estimates (8,052 ) (883 ) 15,337 (6,379 ) Balance — December 31, 2014 55,338 40,907 300,020 146,248 Extensions and discoveries 11,054 10,630 79,268 34,895 Production(1) (1,882 ) (1,694 ) (13,262 ) (5,787 ) Revisions to previous estimates (10,014 ) (357 ) 9,962 (8,710 ) Balance — December 31, 2015 54,496 49,486 375,988 166,646 (1) Production includes 560 MMcf, 1,390 MMcf and 1,530 MMcf related to field fuel in 2013, 2014 and 2015, respectively. Total Proved Reserves Oil (MBbls) NGLs (MBbls) Natural Gas Total (MBoe) Proved Developed Reserves: January 1, 2013 8,816 11,761 73,178 32,774 December 31, 2013 13,646 14,919 99,742 45,189 January 1, 2014 13,646 14,919 99,742 45,189 December 31, 2014 17,978 19,082 138,961 60,220 January 1, 2015 17,978 19,082 138,961 60,220 December 31, 2015 15,667 20,414 154,652 61,856 Proved Undeveloped Reserves: January 1, 2013 28,436 17,339 101,582 62,705 December 31, 2013 32,421 17,674 116,260 69,472 January 1, 2014 32,421 17,674 116,260 69,472 December 31, 2014 37,360 21,825 161,059 86,028 January 1, 2015 37,360 21,825 161,059 86,028 December 31, 2015 38,829 29,072 221,335 104,790 The following is a discussion of the material changes in our proved reserve quantities for the years ended December 31, 2015, 2014 and 2013: Year Ended December 31, 2015 Extensions and discoveries for 2015 were 34.9 MMBoe, primarily attributable to our development project in the Wolfcamp shale oil resource play in the Permian Basin. During 2015, we recorded net downward revisions totaling 8.7 MMBoe, including the reclassification of 11.9 MMBoe of proved reserves to unproved reserves. The reserves reclassified are attributable to horizontal and vertical well locations in Project Pangea that are no longer expected to be developed within five years from their initial booking, as required by SEC rules. Revisions also included 13 MMBoe of positive revisions resulting from cost reductions, updated well performance and technical parameters, offset by 9.8 MMBoe of negative revisions due to lower commodity prices. We produced 5.8 MMBoe during 2015. This production included 1,530 MMcf of gas that was produced and used as field fuel (primarily for compressors and artificial lift) before the gas was delivered to a sales point. Year Ended December 31, 2014 Extensions and discoveries for 2014 were 43.2 MMBoe, primarily attributable to our development project in the Wolfcamp shale oil resource play in the Permian Basin. During 2014, we recorded downward revisions totaling 6.4 MMBoe, including the reclassification of 9.3 MMBoe of proved undeveloped reserves to probable undeveloped. The reserves reclassified from proved undeveloped to probable undeveloped included 5.8 MMBoe attributable to vertical Canyon locations in Project Pangea that we do not plan to drill within five years from their initial booking, and 3.5 MMBoe attributable to horizontal Wolfcamp locations that are no longer included in our proved development plan. Revisions also included 6.3 MMBoe of positive net revisions attributable to updated well performance and 0.7 MMBoe of positive revisions due to pricing, offset by 4.1 MMBoe of negative revisions resulting from updated technical parameters and costs. We produced 5.3 MMBoe during 2014. This production included 1,390 MMcf of gas that was produced and used as field fuel (primarily for compressors and artificial lift) before the gas was delivered to a sales point. Year Ended December 31, 2013 Extensions and discoveries for 2013 were 27.3 MMBoe, primarily attributable to our development project in the Wolfcamp shale oil resource play in the Permian Basin. We produced 3.5 MMBoe during 2013. This production included 560 MMcf of gas that was produced and used as field fuel (primarily for compressors and artificial lifts) before the gas was delivered to a sales point. During 2013, we recorded downward revisions totaling 4.7 MMBoe. Revisions included the reclassification of 7.8 MMBoe of proved undeveloped reserves to probable undeveloped, partially offset by 3.1 MMBoe of positive revisions attributable to gas that will be produced and utilized as field fuel. The reserves reclassified from proved undeveloped to probable undeveloped were attributable to vertical Canyon locations in Project Pangea. Due to our horizontal Wolfcamp development project, including pad drilling, postponement of these deeper locations beyond five years from initial booking was necessary to integrate their development with the shallower Clearfork and Wolfcamp target zones. Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves The standardized measure of discounted future net cash flows is computed by applying the 12-month unweighted average of the first-day-of-the-month pricing for oil and natural gas (with consideration of price changes only to the extent provided by contractual arrangements) to the estimated future production of proved oil and natural gas reserves less estimated future expenditures (based on year-end costs) to be incurred in developing and producing the proved reserves, discounted using a rate of 10 percent per year to reflect the estimated timing of the future cash flows. Future income taxes are calculated by comparing undiscounted future cash flows to the tax basis of oil and natural gas properties plus available carryforwards and credits and applying the current tax rates to the difference. Discounted future cash flow estimates like those shown below are not intended to represent estimates of the fair value of oil and natural gas properties. Estimates of fair value would also consider probable and possible reserves, anticipated future oil and natural gas prices, interest rates, changes in development and production costs and risks associated with future production. Because of these and other considerations, any estimate of fair value is necessarily subjective and imprecise. The following table provides the standardized measure of discounted future net cash flows at December 31, 2015, 2014 and 2013 (in thousands): Years Ended December 31, 2015 2014 2013 Future cash flows $ 4,097,568 $ 7,430,368 $ 5,953,060 Future production costs (1,237,888 ) (1,704,333 ) (1,372,005 ) Future development costs (934,814 ) (1,247,446 ) (1,154,685 ) Future income tax expense (307,374 ) (1,267,025 ) (919,454 ) Future net cash flows 1,617,492 3,211,564 2,506,916 10% annual discount for estimated timing of cash flows (1,157,097 ) (2,155,749 ) (1,830,639 ) Standardized measure of discounted future net cash flows $ 460,395 $ 1,055,815 $ 676,277 Future cash flows as shown above were reported without consideration for the effects of commodity derivative transactions outstanding at each period end. Changes in Standardized Measure of Discounted Future Net Cash Flows The changes in the standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves are as follows (in thousands): Years Ended December 31, 2015 2014 2013 Balance, beginning of period $ 1,055,815 $ 676,277 $ 494,220 Net change in sales and transfer prices and in production (lifting) costs related to future production (1,405,864 ) (59,920 ) 74,088 Changes in estimated future development costs 231,900 (388,772 ) (301,132 ) Sales and transfers of oil and gas produced during the period (91,278 ) (209,893 ) (149,310 ) Net change due to extensions, discoveries and improved recovery 156,783 534,231 360,080 Net change due to purchase of minerals in place — — 1,435 Net change due to revisions in quantity estimates (59,305 ) (78,801 ) (61,931 ) Previously estimated development costs incurred during the period 146,237 382,995 287,898 Accretion of discount 105,582 113,188 87,937 Other 6,915 (11,897 ) 1,896 Net change in income taxes 313,610 98,407 (118,904 ) Standardized Measure of discounted future net cash flows $ 460,395 $ 1,055,815 $ 676,277 |
Supplementary Data
Supplementary Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Data | 11. Supplementary Data Selected Quarterly Financial Data (unaudited), (dollars in thousands, except per-share amounts): 2015 Quarters Ended December 31 September 30 June 30 March 31 Net revenue $ 25,492 $ 33,941 $ 38,605 $ 33,298 Net operating expenses (38,671 ) (272,462 ) (46,970 ) (45,686 ) Interest expense, net (6,436 ) (6,465 ) (6,243 ) (5,922 ) Gain on debt extinguishment 9,080 1,483 — — Realized gain on commodity derivatives 14,552 12,755 9,281 15,901 Unrealized (loss) gain on commodity derivatives (10,285 ) 296 (13,904 ) (9,321 ) Other income (expense) 225 (91 ) 12 26 (Loss) income before income tax (benefit) (6,043 ) (230,543 ) (19,219 ) (11,704 ) Income tax benefit (284 ) (81,756 ) (7,369 ) (3,996 ) Net loss $ (5,759 ) $ (148,787 ) $ (11,850 ) $ (7,708 ) Basic net loss applicable to common stockholders per common share $ (0.14 ) $ (3.67 ) $ (0.29 ) $ (0.19 ) Diluted net loss applicable to common stockholders per common share $ (0.14 ) $ (3.67 ) $ (0.29 ) $ (0.19 ) 2014 Quarters Ended December 31 September 30 June 30 March 31 Net revenue $ 55,070 $ 68,124 $ 73,408 $ 61,927 Net operating expenses (50,136 ) (45,525 ) (50,812 ) (44,899 ) Interest expense, net (5,715 ) (5,442 ) (5,357 ) (5,137 ) Equity in earnings (losses) of investee 5 — (186 ) — Realized gain (loss) on commodity derivatives 7,782 (764 ) (3,320 ) (1,339 ) Unrealized gain (loss) on commodity derivatives 36,907 18,810 (7,678 ) (5,926 ) Other income (expense) 176 — (109 ) — Income before income tax 44,089 35,203 5,946 4,626 Income tax provision 17,102 12,756 2,153 1,681 Net income $ 26,987 $ 22,447 $ 3,793 $ 2,945 Basic net income applicable to common stockholders per common share $ 0.68 $ 0.57 $ 0.10 $ 0.08 Diluted net income applicable to common stockholders per common share $ 0.68 $ 0.57 $ 0.10 $ 0.08 2013 Quarters Ended December 31 September 30 June 30 March 31 Net revenue $ 58,565 $ 44,196 $ 42,272 $ 36,269 Net operating expenses (40,402 ) (34,314 ) (31,329 ) (31,665 ) Interest expense, net (5,225 ) (5,179 ) (2,451 ) (1,229 ) Equity in (losses) earnings of investee (4 ) 340 (64 ) (116 ) Gain on sale of Wildcat pipeline 90,743 — — — Realized gain (loss) on commodity derivatives 199 (840 ) (714 ) 307 Unrealized (loss) gain on commodity derivatives (1,348 ) (3,438 ) 4,290 (4,100 ) Income (loss) before income tax (benefit) 102,528 765 12,004 (534 ) Income tax provision (benefit) 38,207 270 4,217 (187 ) Net income (loss) $ 64,321 $ 495 $ 7,787 $ (347 ) Basic net income (loss) applicable to common stockholders per common share $ 1.65 $ 0.01 $ 0.20 $ (0.01 ) Diluted net income (loss) applicable to common stockholders per common share $ 1.65 $ 0.01 $ 0.20 $ (0.01 ) |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 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 focused on the exploration, development, production and acquisition of unconventional oil and gas properties. We focus on finding and developing oil and natural gas reserves in oil shale and tight gas sands. Our properties are primarily located in the Permian Basin in West Texas. We also own interests in the East Texas Basin. |
Consolidation, Basis of Presentation and Significant Estimates | Consolidation, Basis of Presentation and Significant Estimates The accompanying 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 natural 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. At times, the amount of cash and cash equivalents on deposit in financial institutions exceeds federally insured limits. We monitor the soundness of the financial institutions and believe the Company’s risk is negligible. |
Capitalized Costs | Capitalized Costs. December 31, 2015 2014 Mineral interests in properties: Unproved leasehold costs $ 37,853 $ 46,240 Proved leasehold costs 44,122 42,409 Wells and related equipment and facilities 1,753,649 1,592,477 Support equipment 9,545 8,518 Uncompleted wells, equipment and facilities 8,612 18,634 Total costs 1,853,781 1,708,278 Less accumulated depreciation, depletion and amortization (702,139 ) (379,892 ) Net capitalized costs $ 1,151,642 $ 1,328,386 We follow the successful efforts method of accounting for our oil and gas producing activities. Costs to acquire mineral interests in oil and gas properties and to drill and equip development wells and related asset retirement costs are capitalized. Costs to drill exploratory wells are capitalized pending determination of whether the wells have proved reserves. If we determine that the wells do not have proved reserves, the costs are charged to exploration expense. There were no exploratory wells capitalized, pending determination of whether the wells have proved reserves, at December 31, 2015 or 2014. Geological and geophysical costs, including seismic studies are charged to exploration expense as incurred. We capitalize interest on expenditures for significant exploration and development projects that last more than six months while activities are in progress to bring the assets to their intended use and while these expenditures are excluded from our depletable base. Through December 31, 2015, we have capitalized no interest costs because our individual wells and infrastructure projects are generally developed in less than six months. Costs incurred to maintain wells and related equipment are charged to expense as incurred. On the sale or retirement of a complete unit of a proved property, the cost and related accumulated depreciation, depletion and amortization are eliminated from the property accounts, and the resulting gain or loss is recognized. On the retirement or sale of a partial unit of proved property, the cost is charged to accumulated depreciation, depletion and amortization with no gain or loss recognized in income. Capitalized amounts attributable to proved oil and gas properties are depleted by the unit-of-production method over proved reserves using the unit conversion ratio of six Mcf of gas to one barrel of oil equivalent (“Boe”), and one barrel of NGLs to one Boe. The ratios of six Mcf of natural gas to one Boe and one barrel of NGLs to one Boe do not assume price equivalency and, given price differentials, the price for a Boe for natural gas may differ significantly from the price for a barrel of oil. Depreciation, depletion and amortization expense for oil and gas producing property and related equipment was $108.8 million, $106.2 million and $76.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. Capitalized costs related to proved oil and gas properties, including wells and related equipment and facilities, are periodically evaluated for impairment based on an analysis of undiscounted future net cash flows in accordance with ASC 360, Accounting for the Impairment or Disposal of Long-Lived Assets, Unproved oil and gas properties that are individually significant are periodically assessed for impairment of value, and a loss is recognized at the time of impairment by providing an impairment allowance. Certain leases that we consider non-core to our development of Project Pangea were impaired during the year ended December 31, 2015, as we do not plan to develop them in the current commodity price environment. As a result, we recorded a non-cash impairment loss of unproved property of $5.5 million for the year ended December 31, 2015. The total impairment loss of $220.2 million for the year ended December 31, 2015, is recorded in impairment of oil and gas properties on our consolidated statements of operations, and in accumulated depletion, depreciation and amortization on our consolidated balance sheets. On the sale of an entire interest in an unproved property for cash or cash equivalent, gain or loss on the sale is recognized, taking into consideration the amount of any recorded impairment if the property had been assessed individually. If a partial interest in an unproved property is sold, the amount received is treated as a reduction of the cost of the interest retained. |
Other Property | Other Property Furniture, fixtures and equipment are carried at cost. Depreciation of furniture, fixtures and equipment is provided using the straight-line method over estimated useful lives ranging from three to 15 years. Gain or loss on retirement or sale or other disposition of assets is included in income in the period of disposition. Depreciation expense for other property and equipment was $563,000, $588,000 and $502,000 for the years ended December 31, 2015, 2014 and 2013, respectively. |
Equity Method Investment | Equity Method Investment For investments in which we have the ability to exercise significant influence but do not have control, we follow the equity method of accounting. In September 2012, we entered into a joint venture to build an oil pipeline in Crockett and Reagan Counties, Texas, which is used to transport our oil to market. In October 2013, we completed the sale of the joint venture. As of December 31, 2015, we have no investments that are accounted for under the equity method. See Note 2 for equity method investment disclosures. |
Financial Instruments | Financial Instruments The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value, as of December 31, 2015 and 2014. See Note 7 for fair value disclosures. |
Income Taxes | Income Taxes We are subject to U.S. federal income taxes along with state income taxes in Texas. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the consolidated statement of income. Based on our analysis, we did not have any uncertain tax positions as of December 31, 2015 or 2014. The Company’s income tax returns are subject to examination by the relevant taxing authorities as follows: U.S. Federal income tax returns for tax years 2012 and forward and Texas income and margin tax returns for tax years 2012 and forward. There are currently no income tax examinations underway for these jurisdictions. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the tax rate in effect for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the year of the enacted tax rate change. We monitor our deferred tax assets by jurisdiction to assess their potential realization, and a valuation allowance is recognized on deferred tax assets when we believe that certain of these assets are more likely than not to be realized. In performing this review, we make estimates and assumptions regarding projected future taxable income, the expected timing of reversals of existing temporary differences and the implementation of tax planning strategies. To the extent that a valuation allowance is established or changed during any period, we would recognize expense or benefit within our consolidated tax expense. We do not currently have a valuation allowance on our federal net operating loss carryforwards. |
Derivative Activity | Derivative Activity We record our open derivative instruments at fair value on our consolidated balance sheets as either unrealized gains or losses on commodity derivatives. We record changes in such fair value in earnings on our consolidated statements of operations under the caption entitled “unrealized (loss) gain on commodity derivatives.” Although we have not designated our derivative instruments as cash-flow hedges, we use those instruments to reduce our exposure to fluctuations in commodity prices related to our natural gas and oil production. 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. Realized gains and losses are also included in income (expense) on our consolidated statements of operations. |
Accrued Liabilities | Accrued Liabilities The following is a summary of our accrued liabilities at December 31, 2015 and 2014 (in thousands): 2015 2014 Capital expenditures accrual $ 3,476 $ 43,870 Operating expenses and other 9,988 6,868 Total $ 13,464 $ 50,738 |
Asset Retirement Obligations | Asset Retirement Obligations Our asset retirement obligations relate to future plugging and abandonment expenses on oil and gas properties. Based on the expected timing of payments, the full asset retirement obligation is classified as non-current. There were no significant changes to the asset retirement obligations for the years ended December 31, 2015, 2014 and 2013. |
Share-Based Compensation | Share-Based Compensation We measure and record compensation expense for all share-based payment awards to employees and outside directors based on estimated grant date fair values. We recognize compensation costs for awards granted over the requisite service period based on the grant date fair value in general and administrative expense on our consolidated statements of operations. |
Earnings Per Common Share | 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 are reconciliations of the numerators and denominators of our basic and diluted earnings per share, (dollars in thousands, except per-share amounts): For the Years Ended December 31, 2015 2014 2013 Income (numerator): Net (loss) income — basic $ (174,104 ) $ 56,172 $ 72,256 Weighted average shares (denominator): Weighted average shares — basic 40,464,283 39,407,733 38,997,815 Dilution effect of share-based compensation, treasury method — (1) 12,132 21,334 Weighted average shares — diluted 40,464,283 39,419,865 39,019,149 Net (loss) income per share: Basic $ (4.30 ) $ 1.43 $ 1.85 Diluted $ (4.30 ) $ 1.42 $ 1.85 (1) Approximately 39,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the year ended December 31, 2015. |
Revenue and Accounts Receivable from Purchasers and Joint Interest Owners | Revenue and Accounts Receivable. Accounts receivable, joint interest owners, consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date. Accounts receivable, oil, NGL and gas sales, consist of uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 to 60 days of production. No interest is charged on past-due balances. Payments made on all accounts receivable are applied to the earliest unpaid items. We review accounts receivable periodically and reduce the carrying amount by a valuation allowance that reflects our best estimate of the amount that may not be collectible. No such allowance was considered necessary at December 31, 2015 or 2014. Accounts receivable related to oil, NGL and gas sales includes $4.8 million from realized gains on commodity derivatives at December 31, 2015 and 2014. |
Oil and Gas Sales Payable | Oil, NGL and Gas Sales Payable. |
Production Costs | Production Costs. |
Exploration expenses | Exploration expenses. |
Dependence on Major Customer | Dependence on Major Customers. |
Segment Reporting | Segment Reporting The Company presently operates in one business segment, the exploration and production of oil, NGLs and natural gas. |
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 July 2015, FASB delayed the effective date one year, making the new standard effective for interim periods and annual periods beginning after December 15, 2017. 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 update 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. We adopted this accounting standard update during the second quarter. The adoption of this new accounting standard update resulted in a reclassification of debt issuance costs from Other assets to Senior secured credit facility, net and Senior notes, net. See Note 3 “Long-Term Debt” for disclosure of debt issuance costs. Adoption of this accounting standard update did not impact our consolidated statements of operations or cash flows. In September 2015, FASB issued an accounting standards update for “Business Combinations,” which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. This new update is effective for financial statements issued for fiscal years beginning after December 15, 2015 (and interim periods within those fiscal years). This new guidance will be adopted prospectively in the first quarter of 2016. 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. In November 2015, FASB issued an accounting standards update for “Income Taxes,” which simplifies the presentation of deferred income taxes. This accounting standard update requires that deferred income taxes be classified as noncurrent in the balance sheet. This new update is effective for financial statements issued for fiscal years beginning after December 15, 2016 (and interim periods within those fiscal years), with early adoption permitted and allows prospective or retrospective application. We adopted this accounting standard update prospectively as of December 31, 2015. At December 31, 2015, we had no deferred tax assets or liabilities classified as current, compared to a current deferred tax liability of $14.2 million as of December 31, 2014. Adoption of this accounting standard update did not impact our consolidated statements of operations or cash flows. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Oil and Gas Properties | Our oil and gas properties comprised the following (in thousands): December 31, 2015 2014 Mineral interests in properties: Unproved leasehold costs $ 37,853 $ 46,240 Proved leasehold costs 44,122 42,409 Wells and related equipment and facilities 1,753,649 1,592,477 Support equipment 9,545 8,518 Uncompleted wells, equipment and facilities 8,612 18,634 Total costs 1,853,781 1,708,278 Less accumulated depreciation, depletion and amortization (702,139 ) (379,892 ) Net capitalized costs $ 1,151,642 $ 1,328,386 |
Summary of Accrued Liabilities | The following is a summary of our accrued liabilities at December 31, 2015 and 2014 (in thousands): 2015 2014 Capital expenditures accrual $ 3,476 $ 43,870 Operating expenses and other 9,988 6,868 Total $ 13,464 $ 50,738 |
Reconciliations of Numerators and Denominators of Basic and Diluted Earnings Per Share | The following are reconciliations of the numerators and denominators of our basic and diluted earnings per share, (dollars in thousands, except per-share amounts): For the Years Ended December 31, 2015 2014 2013 Income (numerator): Net (loss) income — basic $ (174,104 ) $ 56,172 $ 72,256 Weighted average shares (denominator): Weighted average shares — basic 40,464,283 39,407,733 38,997,815 Dilution effect of share-based compensation, treasury method — (1) 12,132 21,334 Weighted average shares — diluted 40,464,283 39,419,865 39,019,149 Net (loss) income per share: Basic $ (4.30 ) $ 1.43 $ 1.85 Diluted $ (4.30 ) $ 1.42 $ 1.85 (1) Approximately 39,000 options to purchase our common stock were excluded from this calculation because they were antidilutive for the year ended December 31, 2015. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | The following table provides a summary of our long-term debt at December 31, 2015, and December 31, 2014 (in thousands). December 31, December 31, Senior secured credit facility: Outstanding borrowings $ 273,000 $ 150,000 Debt issuance costs (2,252 ) (2,928 ) Senior secured credit facility, net 270,748 147,072 Senior notes: Principal 230,320 250,000 Debt issuance costs (4,481 ) (5,761 ) Senior notes, net 225,839 244,239 Total long-term debt $ 496,587 $ 391,311 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Status of Nonvested Shares | A summary of the status of nonvested shares for the years ended December 31, 2015, 2014 and 2013, is presented below: Shares Weighted Grant-Date Fair Value Nonvested at January 1, 2013 753,079 22.35 Granted 377,379 22.77 Vested (299,110 ) 18.79 Canceled (132,117 ) 24.47 Nonvested at December 31, 2013 699,231 23.70 Granted 992,919 14.48 Vested (400,429 ) 20.18 Canceled (169,311 ) 25.57 Nonvested at December 31, 2014 1,122,410 $ 16.52 Granted 1,278,329 4.87 Vested (419,222 ) 15.26 Canceled (246,261 ) 14.30 Nonvested at December 31, 2015 1,735,256 $ 8.60 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | Our provision for income taxes comprised the following (in thousands): Years Ended December 31, 2015 2014 2013 Current: Federal $ (265 ) $ (25 ) $ 429 State — — — Total current provision for income taxes $ (265 ) $ (25 ) $ 429 Deferred: Federal $ (91,716 ) $ 32,754 $ 41,175 State (1,424 ) 963 903 Total deferred provision for income taxes $ (93,140 ) $ 33,717 $ 42,078 |
Total Income Tax Expense Differed from Amounts Computed by Applying U.S. Federal Statutory Tax Rates to Pre-Tax Income | Total income tax expense differed from the amounts computed by applying the U.S. Federal statutory tax rates to pre-tax income (in thousands): Years Ended December 31, 2015 2014 2013 Statutory tax at 35% $ (93,628 ) $ 31,452 $ 40,167 State taxes, net of federal impact (1,463 ) 989 709 Share-based compensation tax shortfall 1,939 1,670 — Permanent differences 26 37 34 Other differences (1,035 ) (456 ) 1,597 Valuation allowance 756 — — Total $ (93,405 ) $ 33,692 $ 42,507 |
Significant Components of Net Deferred Tax Assets and Liabilities | Significant components of net deferred tax assets and liabilities are (in thousands): Years Ended December 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 88,230 $ 46,730 Other 1,672 1,305 Total deferred tax assets 89,902 48,035 Deferred tax liabilities: Difference in depreciation, depletion and capitalization methods — oil and gas properties (118,534 ) (158,647 ) Unrealized gain on commodity derivatives (2,391 ) (14,307 ) Total deferred tax liabilities (120,925 ) (172,954 ) Valuation allowance (756 ) — Net deferred tax liability $ (31,779 ) $ (124,919 ) |
Net Operating Loss Carryforwards for Tax Purposes | Net operating loss carryforwards for tax purposes have the following expiration dates (in thousands): Expiration Dates Amounts Stock Total 2030 $ 4,083 $ 750 $ 4,833 2031 18,642 1,012 19,654 2032 51,931 2,724 54,655 2033 616 503 1,119 2034 56,511 — 56,511 2035 120,298 — 120,298 Total $ 252,081 $ 4,989 $ 257,070 |
Derivative Instruments and Fa24
Derivative Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivatives Volumes and Prices | At December 31, 2015, we had the following commodity derivatives positions outstanding: Commodity and Period Contract Volume Transacted Contract Price Crude Oil January 2016 — December 2016 Swap 500 Bbls/d $62.50/Bbl January 2016 — December 2016 Swap 250 Bbls/d $62.55/Bbl January 2016 — June 2016 Swap 500 Bbls/d $40.25/Bbl January 2016 — June 2016 Swap 1,000 Bbls/d $40.00/Bbl Natural Gas March 2016 — December 2016 Swap 100,000 MMBtu/month $2.91/MMBtu March 2016 — December 2016 Swap 100,000 MMBtu/month $2.95/MMBtu |
Summary of Fair Value of Open Commodity Derivatives | The following summarizes the fair value of our open commodity derivatives as of December 31, 2015 and 2014 (in thousands): Balance Sheet Location Fair Value December 31, December 31, Derivatives not designated as hedging instruments Commodity derivatives Unrealized gain on commodity derivatives $ 6,737 $ 39,951 |
Summary of Change in Fair Value of Commodity Derivatives | The following summarizes the change in the fair value of our commodity derivatives (in thousands): Income Statement Location Year Ended December 31, 2015 2014 2013 Derivatives not designated as hedging instruments Commodity derivatives Unrealized (loss) gain on commodity derivatives $ (33,214 ) $ 42,113 $ (4,596 ) Realized gain (loss) on commodity derivatives 52,489 2,359 (1,048 ) $ 19,275 $ 44,472 $ (5,644 ) |
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). December 31, 2015 Carrying Fair Value Senior Notes, net $ 225,839 $ 82,915 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Years of Future Minimum Rental Payments Required Under Operating Lease Arrangements | The following is a schedule by years of future minimum rental payments required under our operating lease arrangements as of December 31, 2015 (in thousands): 2016 $ 957 2017 967 2018 975 2019 976 2020 246 Total $ 4,121 |
Oil and Gas Producing Activit26
Oil and Gas Producing Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Extractive Industries [Abstract] | |
Schedule of Information Regarding Costs Incurred for Oil and Gas Property Acquisition, Development and Exploration Activities | Set forth below is certain information regarding the costs incurred for oil and gas property acquisition, development and exploration activities (in thousands): For the Years Ended December 31, 2015 2014 2013 Property acquisition costs: Unproved properties $ 653 $ 4,578 $ 5,857 Proved properties — — 1,000 Exploration costs 4,439 3,831 2,238 Development costs (1) 146,237 382,995 287,898 Total costs incurred $ 151,329 $ 391,404 $ 296,993 (1) For the years ended December 31, 2015, 2014 and 2013, development costs include $151,000, $898,000 and $584,000, respectively, in non-cash asset retirement obligations. |
Schedule of Information Regarding Results of Operations for Oil and Gas Producing Activities | Set forth below is certain information regarding the results of operations for oil and gas producing activities (in thousands): For the Years Ended December 31, 2015 2014 2013 Revenues $ 131,336 $ 258,529 $ 181,302 Production costs (40,057 ) (48,635 ) (31,992 ) Exploration expense (4,439 ) (3,831 ) (2,238 ) Depletion (109,319 ) (106,802 ) (76,956 ) Impairment of oil and gas properties (220,197 ) — — Income tax benefit (expense) 86,120 (35,387 ) (24,996 ) Results of operations $ (156,556 ) $ 63,874 $ 45,120 |
Disclosures About Oil and Gas27
Disclosures About Oil and Gas Producing Activities (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Commodity Prices Inclusive of Adjustments for Quality and Location Used in Determining Future Net Revenues Related to Standardized Measure Calculation | The following table summarizes the prices used in the reserve estimates for 2015, 2014 and 2013. Commodity prices used for the reserve estimates, adjusted for basis differentials, grade and quality, are as follows: 2015 2014 2013 Oil (per Bbl) $ 50.16 $ 94.56 $ 97.28 Natural gas liquids (per Bbl) $ 15.13 $ 31.50 $ 30.16 Gas (per Mcf) $ 2.64 $ 4.55 $ 3.66 |
Summary of Changes in Quantities of Proved Oil, NGL and Natural Gas Reserves | The following table provides a summary of the changes of the total proved reserves for the years ended December 31, 2015, 2014 and 2013, as well as proved developed and proved undeveloped reserves at the beginning and end of each respective year. Total Proved Reserves Oil (MBbls) NGLs (MBbls) Natural Gas Total (MBoe) Balance — December 31, 2012 37,252 29,100 174,760 95,479 Extensions and discoveries 14,252 6,531 38,993 27,282 Purchases of minerals in place 62 14 197 109 Production(1) (1,444 ) (951 ) (6,737 ) (3,517 ) Revisions to previous estimates (4,055 ) (2,102 ) 8,789 (4,692 ) Balance — December 31, 2013 46,067 32,593 216,002 114,661 Extensions and discoveries 19,347 10,658 79,454 43,247 Production(1) (2,024 ) (1,461 ) (10,773 ) (5,281 ) Revisions to previous estimates (8,052 ) (883 ) 15,337 (6,379 ) Balance — December 31, 2014 55,338 40,907 300,020 146,248 Extensions and discoveries 11,054 10,630 79,268 34,895 Production(1) (1,882 ) (1,694 ) (13,262 ) (5,787 ) Revisions to previous estimates (10,014 ) (357 ) 9,962 (8,710 ) Balance — December 31, 2015 54,496 49,486 375,988 166,646 (1) Production includes 560 MMcf, 1,390 MMcf and 1,530 MMcf related to field fuel in 2013, 2014 and 2015, respectively. Total Proved Reserves Oil (MBbls) NGLs (MBbls) Natural Gas Total (MBoe) Proved Developed Reserves: January 1, 2013 8,816 11,761 73,178 32,774 December 31, 2013 13,646 14,919 99,742 45,189 January 1, 2014 13,646 14,919 99,742 45,189 December 31, 2014 17,978 19,082 138,961 60,220 January 1, 2015 17,978 19,082 138,961 60,220 December 31, 2015 15,667 20,414 154,652 61,856 Proved Undeveloped Reserves: January 1, 2013 28,436 17,339 101,582 62,705 December 31, 2013 32,421 17,674 116,260 69,472 January 1, 2014 32,421 17,674 116,260 69,472 December 31, 2014 37,360 21,825 161,059 86,028 January 1, 2015 37,360 21,825 161,059 86,028 December 31, 2015 38,829 29,072 221,335 104,790 |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves | The following table provides the standardized measure of discounted future net cash flows at December 31, 2015, 2014 and 2013 (in thousands): Years Ended December 31, 2015 2014 2013 Future cash flows $ 4,097,568 $ 7,430,368 $ 5,953,060 Future production costs (1,237,888 ) (1,704,333 ) (1,372,005 ) Future development costs (934,814 ) (1,247,446 ) (1,154,685 ) Future income tax expense (307,374 ) (1,267,025 ) (919,454 ) Future net cash flows 1,617,492 3,211,564 2,506,916 10% annual discount for estimated timing of cash flows (1,157,097 ) (2,155,749 ) (1,830,639 ) Standardized measure of discounted future net cash flows $ 460,395 $ 1,055,815 $ 676,277 |
Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves | The changes in the standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves are as follows (in thousands): Years Ended December 31, 2015 2014 2013 Balance, beginning of period $ 1,055,815 $ 676,277 $ 494,220 Net change in sales and transfer prices and in production (lifting) costs related to future production (1,405,864 ) (59,920 ) 74,088 Changes in estimated future development costs 231,900 (388,772 ) (301,132 ) Sales and transfers of oil and gas produced during the period (91,278 ) (209,893 ) (149,310 ) Net change due to extensions, discoveries and improved recovery 156,783 534,231 360,080 Net change due to purchase of minerals in place — — 1,435 Net change due to revisions in quantity estimates (59,305 ) (78,801 ) (61,931 ) Previously estimated development costs incurred during the period 146,237 382,995 287,898 Accretion of discount 105,582 113,188 87,937 Other 6,915 (11,897 ) 1,896 Net change in income taxes 313,610 98,407 (118,904 ) Standardized Measure of discounted future net cash flows $ 460,395 $ 1,055,815 $ 676,277 |
Supplementary Data (Tables)
Supplementary Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | Selected Quarterly Financial Data (unaudited), (dollars in thousands, except per-share amounts): 2015 Quarters Ended December 31 September 30 June 30 March 31 Net revenue $ 25,492 $ 33,941 $ 38,605 $ 33,298 Net operating expenses (38,671 ) (272,462 ) (46,970 ) (45,686 ) Interest expense, net (6,436 ) (6,465 ) (6,243 ) (5,922 ) Gain on debt extinguishment 9,080 1,483 — — Realized gain on commodity derivatives 14,552 12,755 9,281 15,901 Unrealized (loss) gain on commodity derivatives (10,285 ) 296 (13,904 ) (9,321 ) Other income (expense) 225 (91 ) 12 26 (Loss) income before income tax (benefit) (6,043 ) (230,543 ) (19,219 ) (11,704 ) Income tax benefit (284 ) (81,756 ) (7,369 ) (3,996 ) Net loss $ (5,759 ) $ (148,787 ) $ (11,850 ) $ (7,708 ) Basic net loss applicable to common stockholders per common share $ (0.14 ) $ (3.67 ) $ (0.29 ) $ (0.19 ) Diluted net loss applicable to common stockholders per common share $ (0.14 ) $ (3.67 ) $ (0.29 ) $ (0.19 ) 2014 Quarters Ended December 31 September 30 June 30 March 31 Net revenue $ 55,070 $ 68,124 $ 73,408 $ 61,927 Net operating expenses (50,136 ) (45,525 ) (50,812 ) (44,899 ) Interest expense, net (5,715 ) (5,442 ) (5,357 ) (5,137 ) Equity in earnings (losses) of investee 5 — (186 ) — Realized gain (loss) on commodity derivatives 7,782 (764 ) (3,320 ) (1,339 ) Unrealized gain (loss) on commodity derivatives 36,907 18,810 (7,678 ) (5,926 ) Other income (expense) 176 — (109 ) — Income before income tax 44,089 35,203 5,946 4,626 Income tax provision 17,102 12,756 2,153 1,681 Net income $ 26,987 $ 22,447 $ 3,793 $ 2,945 Basic net income applicable to common stockholders per common share $ 0.68 $ 0.57 $ 0.10 $ 0.08 Diluted net income applicable to common stockholders per common share $ 0.68 $ 0.57 $ 0.10 $ 0.08 2013 Quarters Ended December 31 September 30 June 30 March 31 Net revenue $ 58,565 $ 44,196 $ 42,272 $ 36,269 Net operating expenses (40,402 ) (34,314 ) (31,329 ) (31,665 ) Interest expense, net (5,225 ) (5,179 ) (2,451 ) (1,229 ) Equity in (losses) earnings of investee (4 ) 340 (64 ) (116 ) Gain on sale of Wildcat pipeline 90,743 — — — Realized gain (loss) on commodity derivatives 199 (840 ) (714 ) 307 Unrealized (loss) gain on commodity derivatives (1,348 ) (3,438 ) 4,290 (4,100 ) Income (loss) before income tax (benefit) 102,528 765 12,004 (534 ) Income tax provision (benefit) 38,207 270 4,217 (187 ) Net income (loss) $ 64,321 $ 495 $ 7,787 $ (347 ) Basic net income (loss) applicable to common stockholders per common share $ 1.65 $ 0.01 $ 0.20 $ (0.01 ) Diluted net income (loss) applicable to common stockholders per common share $ 1.65 $ 0.01 $ 0.20 $ (0.01 ) |
Summary of Significant Accoun29
Summary of Significant Accounting Policies - Summary of Oil and Gas Properties (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mineral interests in properties: | ||
Unproved leasehold costs | $ 37,853 | $ 46,240 |
Proved leasehold costs | 44,122 | 42,409 |
Wells and related equipment and facilities | 1,753,649 | 1,592,477 |
Support equipment | 9,545 | 8,518 |
Uncompleted wells, equipment and facilities | 8,612 | 18,634 |
Total costs | 1,853,781 | 1,708,278 |
Less accumulated depreciation, depletion and amortization | (702,139) | (379,892) |
Net capitalized costs | $ 1,151,642 | $ 1,328,386 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)WellsSegment | Dec. 31, 2014USD ($)Wells | Dec. 31, 2013USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of exploratory wells capitalized | Wells | 0 | 0 | |
Capitalized interest cost | $ 0 | ||
Depreciation depletion and amortization for oil & gas | 108,800,000 | $ 106,200,000 | $ 76,500,000 |
Impairment of oil and gas properties and equipment | 220,197,000 | 0 | 0 |
Depreciation expense for other property and equipment | 563,000 | 588,000 | 502,000 |
Equity method investments | $ 0 | ||
Tax benefit | 50.00% | ||
Uncertain tax positions | $ 0 | 0 | |
Number of days in which payment is to be made | 30 days | ||
Realized gains on commodity derivatives | $ 4,800,000 | 4,800,000 | |
Exploration expenses | $ 4,439,000 | 3,831,000 | $ 2,238,000 |
Number of operating segment | Segment | 1 | ||
Deferred tax assets current | $ 0 | 14,200,000 | |
Deferred tax liabilities current | $ 0 | $ 14,242,000 | |
Customer Concentration Risk [Member] | Wildcat Permian Services, LLC [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Sales to customers | 30.00% | ||
Customer Concentration Risk [Member] | DCP Midstream, LLC [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Sales to customers | 36.00% | 30.00% | 27.00% |
Customer Concentration Risk [Member] | JP Energy Permian, LLC [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Sales to customers | 63.00% | 69.00% | 23.00% |
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of furniture, fixtures and equipment | 3 years | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of furniture, fixtures and equipment | 15 years | ||
Oil and Gas [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of days in which payment is to be made | 30 days | ||
Oil and Gas [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of days in which payment is to be made | 60 days | ||
Drilling Contracts [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Exploration expenses | $ 2,200,000 | ||
Proved Property Impairment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of oil and gas properties and equipment | 214,700,000 | ||
Unproved Property Impairment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Impairment of oil and gas properties and equipment | $ 5,500,000 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Regulatory Assets [Abstract] | ||
Capital expenditures accrual | $ 3,476 | $ 43,870 |
Operating expenses and other | 9,988 | 6,868 |
Total | $ 13,464 | $ 50,738 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Reconciliations of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net (loss) income - basic | $ (5,759) | $ (148,787) | $ (11,850) | $ (7,708) | $ 26,987 | $ 22,447 | $ 3,793 | $ 2,945 | $ 64,321 | $ 495 | $ 7,787 | $ (347) | $ (174,104) | $ 56,172 | $ 72,256 |
Weighted average shares - basic | 40,464,283 | 39,407,733 | 38,997,815 | ||||||||||||
Dilution effect of share-based compensation, treasury method | 12,132 | 21,334 | |||||||||||||
Weighted average shares - diluted | 40,464,283 | 39,419,865 | 39,019,149 | ||||||||||||
Basic | $ (0.14) | $ (3.67) | $ (0.29) | $ (0.19) | $ 0.68 | $ 0.57 | $ 0.10 | $ 0.08 | $ 1.65 | $ 0.01 | $ 0.20 | $ (0.01) | $ (4.30) | $ 1.43 | $ 1.85 |
Diluted | $ (0.14) | $ (3.67) | $ (0.29) | $ (0.19) | $ 0.68 | $ 0.57 | $ 0.10 | $ 0.08 | $ 1.65 | $ 0.01 | $ 0.20 | $ (0.01) | $ (4.30) | $ 1.42 | $ 1.85 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Reconciliations of Numerators and Denominators of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015shares | |
Employee 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 |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Results Related To Equity Accounted Investees [Line Items] | ||||||
Contribution to joint venture | $ 10,000 | $ 8,300 | ||||
Proceeds from sale of joint venture | $ 109,100 | |||||
Escrow termination date | Jun. 1, 2014 | |||||
Post-closing working capital adjustments | $ 200 | |||||
Pre-Tax Gain on sale of equity interest joint venture | $ 90,700 | $ 90,743 | 90,743 | |||
Escrow [Member] | ||||||
Schedule Of Results Related To Equity Accounted Investees [Line Items] | ||||||
Restricted cash | $ 7,400 | $ 7,400 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Senior secured credit facility, net | $ 270,748 | $ 147,072 |
Senior notes, net | 225,839 | 244,239 |
Total long-term debt | 496,587 | 391,311 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 230,320 | 250,000 |
Debt issuance costs | (4,481) | (5,761) |
Senior notes, net | 225,839 | 244,239 |
Senior Secured Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 273,000 | 150,000 |
Debt issuance costs | (2,252) | (2,928) |
Senior secured credit facility, net | $ 270,748 | $ 147,072 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Dec. 15, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||||||
Senior notes, net | $ 225,839,000 | $ 225,839,000 | $ 244,239,000 | |||
Proceeds from issuance of senior notes | $ 242,824,000 | |||||
Gain on extinguishment of debt | 9,080,000 | $ 1,483,000 | 10,563,000 | |||
Semi-annual interest payment amount | $ 8,600,000 | |||||
Senior Notes [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Senior notes, net | 225,839,000 | $ 225,839,000 | 244,239,000 | |||
Senior Notes [Member] | 7% Senior Notes Originated June 11, 2013 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Senior Notes maturity date | Jun. 15, 2021 | |||||
Senior notes, net | $ 250,000,000 | $ 250,000,000 | ||||
Stated interest rate | 7.00% | 7.00% | ||||
Debt instrument payment of interest | Semi-annually on June 15 and December 15. | |||||
Proceeds from issuance of senior notes | $ 243,000,000 | |||||
Repurchased price of senior notes | 8,800,000 | |||||
Repurchased senior notes face value | $ 19,700,000 | 19,700,000 | ||||
Gain on extinguishment of debt | $ 10,600,000 | |||||
Senior Notes [Member] | 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% | |||||
Senior Notes [Member] | 7% Senior Notes Originated June 11, 2013 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
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% | |||||
Senior Secured Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Maturity period of senior secured credit facility | May 7, 2019 | |||||
Senior secured credit facility, borrowing base | 450,000,000 | $ 450,000,000 | ||||
Aggregate lender commitments | 450,000,000 | 450,000,000 | ||||
Senior secured facility, maximum borrowing capacity | 1,000,000,000 | $ 1,000,000,000 | ||||
Senior secured credit facility, interest rate description | Borrowings under the Credit Facility 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 | |||||
Senior secured credit facility | 273,000,000 | $ 273,000,000 | 150,000,000 | |||
Interest rate applicable of senior secured credit facility | 2.20% | |||||
Unused letters of credit outstanding | $ 300,000 | $ 300,000 | $ 300,000 | |||
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% | 50.00% | ||||
Senior Secured Credit Facility [Member] | 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 | |||||
Senior Secured Credit Facility [Member] | 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] | Minimum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Annual commitment fee of unused borrowings | 0.375% | |||||
Senior Secured Credit Facility [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] | 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] | Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Annual commitment fee of unused borrowings | 0.50% | |||||
Senior Secured Credit Facility [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] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Senior secured credit facility, marginal percentage | 2.50% |
Termination Costs - Additional
Termination Costs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance expenses | $ 1,436 | |
Current Liabilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Termination costs recorded in current liabilities | $ 1,400 | |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance expenses | 400 | |
Employee Severance [Member] | General and Administrative Expense [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Benefit recorded in share-based compensation expense | $ 300 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term of stock option | 10 years | ||
Amendment effective date | Jun. 2, 2015 | ||
Share-based compensation expense | $ 7,954,000 | $ 8,247,000 | $ 5,901,000 |
Shares subject to stock options, granted | 0 | 0 | 0 |
Shares subject to stock options, shares exercisable | 38,525 | ||
Weighted average exercise price, outstanding | $ 12 | ||
Weighted average remaining contractual term, outstanding | 1 year 10 months 10 days | ||
Number of stock options exercised | 0 | 0 | |
Intrinsic value of the options exercised | $ 35,000 | ||
Tax benefit recognized related to the stock option exercises | 0 | ||
Service period | 3 years 6 months | ||
Current fiscal year employer matching contribution description | We make a matching contribution equal to 100% of each pre-tax dollar contributed by the participant on the first 3% of eligible compensation and 50% on the next 2% of eligible compensation | ||
Contributions to employee benefit plan | $ 404,000 | $ 310,000 | 279,000 |
Primary [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer matching contribution, percentage | 100.00% | ||
Secondary [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer matching contribution, percentage | 50.00% | ||
Non Employee Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 735,000 | 749,000 | 630,000 |
2007 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
The maximum number of common stock | 3,625,000 | ||
Forfeiture Benefit Adjustments Member [Member] | Executive Officers [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeited stock awards | $ 1,100,000 | $ 1,000,000 | |
Nonvested Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares grant | 1,278,329 | 992,919 | 377,379 |
Average grant date fair value | $ 6,200,000 | $ 14,400,000 | $ 8,600,000 |
Unrecognized compensation expense related to nonvested shares | $ 7,900,000 | ||
Nonvested outstanding weighted average remaining service period | 3 years | ||
Nonvested Shares [Member] | Executive Officers [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares grant | 724,249 | 245,157 | 183,672 |
Additional share grant fair value | $ 4,500,000 | $ 4,500,000 | $ 4,400,000 |
Total Shareholder Return Performance Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Subsequent restricted share award | 550,272 | ||
Fair market value of shares subject to performance conditions | $ 300,000 | ||
Cash Settled Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Subsequent restricted share award | 1,100,543 | ||
Fair market value of shares subject to performance conditions | $ 1,000,000 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Status of Nonvested Shares (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Nonvested Shares, Beginning Balance | 1,122,410 | 699,231 | 753,079 |
Nonvested Shares, Granted | 1,278,329 | 992,919 | 377,379 |
Nonvested Shares, Vested | (419,222) | (400,429) | (299,110) |
Nonvested Shares, Canceled | (246,261) | (169,311) | (132,117) |
Nonvested Shares, Ending Balance | 1,735,256 | 1,122,410 | 699,231 |
Weighted Average Grant-Date Fair Value, Nonvested, Beginning Balance | $ 16.52 | $ 23.70 | $ 22.35 |
Weighted Average Grant-Date Fair Value, Nonvested, Granted | 4.87 | 14.48 | 22.77 |
Weighted Average Grant-Date Fair Value, Nonvested, Vested | 15.26 | 20.18 | 18.79 |
Weighted Average Grant-Date Fair Value, Nonvested, Canceled | 14.30 | 25.57 | 24.47 |
Weighted Average Grant-Date Fair Value, Nonvested, Ending Balance | $ 8.60 | $ 16.52 | $ 23.70 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ (265) | $ (25) | $ 429 |
State | 0 | 0 | 0 |
Total current provision for income taxes | (265) | (25) | 429 |
Deferred: | |||
Federal | (91,716) | 32,754 | 41,175 |
State | (1,424) | 963 | 903 |
Total deferred provision for income taxes | $ (93,140) | $ 33,717 | $ 42,078 |
Income Taxes - Total Income Tax
Income Taxes - Total Income Tax Expense Differed from Amounts Computed by Applying U.S. Federal Statutory Tax Rates to Pre-Tax Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||||||
Statutory tax at 35% | $ (93,628) | $ 31,452 | $ 40,167 | ||||||||||||
State taxes, net of federal impact | (1,463) | 989 | 709 | ||||||||||||
Share-based compensation tax shortfall | 1,939 | 1,670 | |||||||||||||
Permanent differences | 26 | 37 | 34 | ||||||||||||
Other differences | (1,035) | (456) | 1,597 | ||||||||||||
Valuation allowance | 756 | ||||||||||||||
Total | $ (284) | $ (81,756) | $ (7,369) | $ (3,996) | $ 17,102 | $ 12,756 | $ 2,153 | $ 1,681 | $ 38,207 | $ 270 | $ 4,217 | $ (187) | $ (93,405) | $ 33,692 | $ 42,507 |
Income Taxes - Total Income T42
Income Taxes - Total Income Tax Expense Differed from Amounts Computed by Applying U.S. Federal Statutory Tax Rates to Pre-Tax Income (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax rate | 35.00% | 35.00% | 35.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Share-based compensation tax shortfall | $ 1,939,000 | $ 1,670,000 |
Net deferred tax assets and liabilities recorded as long-term liability | 31,800,000 | 110,700,000 |
Deferred taxes expected to be realized within one year | 0 | $ 14,200,000 |
Net operating loss carryforwards | 257,100,000 | |
Benefit of stock options | $ 5,000,000 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 88,230 | $ 46,730 |
Other | 1,672 | 1,305 |
Total deferred tax assets | 89,902 | 48,035 |
Difference in depreciation, depletion and capitalization methods-oil and gas properties | (118,534) | (158,647) |
Unrealized gain on commodity derivatives | (2,391) | (14,307) |
Total deferred tax liabilities | (120,925) | (172,954) |
Valuation allowance | (756) | |
Net deferred tax liability | $ (31,779) | $ (124,919) |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards for Tax Purposes (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Amounts | $ 252,081 |
Stock Adjustments | 4,989 |
Total | 257,070 |
Expiration Dates 2030 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amounts | 4,083 |
Stock Adjustments | 750 |
Total | $ 4,833 |
Expiration Dates | 2,030 |
Expiration Dates 2031 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amounts | $ 18,642 |
Stock Adjustments | 1,012 |
Total | $ 19,654 |
Expiration Dates | 2,031 |
Expiration Date 2032 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amounts | $ 51,931 |
Stock Adjustments | 2,724 |
Total | $ 54,655 |
Expiration Dates | 2,032 |
Expiration Date 2033 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amounts | $ 616 |
Stock Adjustments | 503 |
Total | $ 1,119 |
Expiration Dates | 2,033 |
Expiration Date 2034 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amounts | $ 56,511 |
Total | $ 56,511 |
Expiration Dates | 2,034 |
Expiration Date 2035 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Amounts | $ 120,298 |
Total | $ 120,298 |
Expiration Dates | 2,035 |
Derivative Instruments and Fa46
Derivative Instruments and Fair Value Measurements - Commodity Derivative Volumes and Prices (Detail) - Swap [Member] | 12 Months Ended |
Dec. 31, 2015MMBTU$ / MMBTU$ / bblbbl | |
Natural Gas March 2016 - December 2016 Contract One [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | MMBTU | 100,000 |
Contract Price | $ / MMBTU | 2.91 |
Natural Gas March 2016 - December 2016 Contract Two [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | MMBTU | 100,000 |
Contract Price | $ / MMBTU | 2.95 |
Crude - Oil January 2016 - December 2016 Contract One [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | bbl | 500 |
Contract Price | $ / bbl | 62.50 |
Crude - Oil January 2016 - December 2016 Contract Two [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | bbl | 250 |
Contract Price | $ / bbl | 62.55 |
Crude - Oil January 2016 - June 2016 Contract One [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | bbl | 500 |
Contract Price | $ / bbl | 40.25 |
Crude - Oil January 2016 - June 2016 Contract Two [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume Transacted | bbl | 1,000 |
Contract Price | $ / bbl | 40 |
Derivative Instruments and Fa47
Derivative Instruments and Fair Value Measurements - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)MMBTU$ / MMBTU | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Impairment of oil and gas properties and equipment | $ | $ 220,197,000 | $ 0 | $ 0 | |
Proved oil and gas property fair value | $ | $ 22,000,000 | |||
Swap [Member] | Natural Gas February 2016 - March 2017 Contract One [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Volume Transacted | MMBTU | 400,000 | |||
Contract Price | $ / MMBTU | 2.45 | |||
Collars [Member] | Natural Gas April 2017 through December 2017 Contract [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Volume Transacted | MMBTU | 200,000 | |||
Floor Price | $ / MMBTU | 2.3 | |||
Ceiling Price | $ / MMBTU | 2.6 | |||
Proved Property Impairment [Member] | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Impairment of oil and gas properties and equipment | $ | $ 214,700,000 |
Derivative Instruments and Fa48
Derivative Instruments and Fair Value Measurements - Summary of Fair Value of Open Commodity Derivatives (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Unrealized Gain on Commodity Derivatives [Member] | Commodity Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives not designated as hedging instruments, fair value of assets derivative | $ 6,737 | $ 39,951 |
Derivative Instruments and Fa49
Derivative Instruments and Fair Value Measurements - Summary of Change in Fair Value of Commodity Derivatives (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives, Fair Value [Line Items] | |||||||||||||||
Total gain (loss) on commodity derivatives | $ 14,552 | $ 12,755 | $ 9,281 | $ 15,901 | $ 7,782 | $ (764) | $ (3,320) | $ (1,339) | $ 199 | $ (840) | $ (714) | $ 307 | $ 52,489 | $ 2,359 | $ (1,048) |
Derivatives Not Designated as Hedging Instruments [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Total gain (loss) on commodity derivatives | 19,275 | 44,472 | (5,644) | ||||||||||||
Derivatives Not Designated as Hedging Instruments [Member] | Unrealized Gain (Loss) on Commodity Derivatives [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Total gain (loss) on commodity derivatives | (33,214) | 42,113 | (4,596) | ||||||||||||
Derivatives Not Designated as Hedging Instruments [Member] | Realized Gain (Loss) on Commodity Derivatives [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Total gain (loss) on commodity derivatives | $ 52,489 | $ 2,359 | $ (1,048) |
Derivative Instruments and Fa50
Derivative Instruments and Fair Value Measurements - Summary of Financial Instruments Not Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Senior notes, net | $ 225,839 | $ 244,239 |
Senior Notes, net, Fair Value | $ 82,915 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Commitments [Line Items] | |||
Non-Cancelable operating lease expiration date | 2,019 | ||
Non-Cancelable lease agreement for office space, expiration date | Mar. 31, 2020 | ||
Rent expense under lease arrangements | $ 1,002 | $ 717 | $ 734 |
Employment Agreements [Member] | |||
Other Commitments [Line Items] | |||
Commitment under contracts | $ 6,300 |
Commitments and Contingencies52
Commitments and Contingencies - Schedule of Years of Future Minimum Rental Payments Required Under Operating Lease Arrangements (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 957 |
2,017 | 967 |
2,018 | 975 |
2,019 | 976 |
2,020 | 246 |
Total | $ 4,121 |
Oil and Gas Producing Activit53
Oil and Gas Producing Activities - Schedule of Information Regarding Costs Incurred for Oil and Gas Property Acquisition, Development and Exploration Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Extractive Industries [Abstract] | |||
Unproved properties | $ 653 | $ 4,578 | $ 5,857 |
Proved properties | 1,000 | ||
Exploration costs | 4,439 | 3,831 | 2,238 |
Development costs | 146,237 | 382,995 | 287,898 |
Total costs incurred | $ 151,329 | $ 391,404 | $ 296,993 |
Oil and Gas Producing Activit54
Oil and Gas Producing Activities - Schedule of Information Regarding Costs Incurred for Oil and Gas Property Acquisition, Development and Exploration Activities (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Development costs | $ 146,237 | $ 382,995 | $ 287,898 |
Non-cash Asset Retirement Obligations [Member] | |||
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Development costs | $ 151,000 | $ 898,000 | $ 584,000 |
Oil and Gas Producing Activit55
Oil and Gas Producing Activities - Schedule of Information Regarding Results of Operations for Oil and Gas Producing Activities (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Extractive Industries [Abstract] | |||
Revenues | $ 131,336,000 | $ 258,529,000 | $ 181,302,000 |
Production costs | (40,057,000) | (48,635,000) | (31,992,000) |
Exploration expense | (4,439,000) | (3,831,000) | (2,238,000) |
Depletion | (109,319,000) | (106,802,000) | (76,956,000) |
Impairment of oil and gas properties | (220,197,000) | 0 | 0 |
Income tax benefit (expense) | 86,120,000 | (35,387,000) | (24,996,000) |
Results of operations | $ (156,556,000) | $ 63,874,000 | $ 45,120,000 |
Disclosures About Oil and Gas56
Disclosures About Oil and Gas Producing Activities - Commodity Prices Inclusive of Adjustments for Quality and Location Used in Determining Future Net Revenues Related to Standardized Measure Calculation (Detail) - Reserve Estimate [Member] | 12 Months Ended | ||
Dec. 31, 2015$ / bbl$ / Mcf | Dec. 31, 2014$ / bbl$ / Mcf | Dec. 31, 2013$ / bbl$ / Mcf | |
Oil (MBbls) [Member] | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Commodity Prices | 50.16 | 94.56 | 97.28 |
NGLs (MBbls) [Member] | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Commodity Prices | 15.13 | 31.50 | 30.16 |
Natural Gas (MMcf) [Member] | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Commodity Prices | $ / Mcf | 2.64 | 4.55 | 3.66 |
Disclosures About Oil and Gas57
Disclosures About Oil and Gas Producing Activities - Summary of Changes in Quantities of Proved Oil, NGL and Natural Gas Reserves (Detail) | 12 Months Ended | ||
Dec. 31, 2015MBoeMBblsMMcf | Dec. 31, 2014MBoeMBblsMMcf | Dec. 31, 2013MBoeMBblsMMcf | |
Reserve Quantities [Line Items] | |||
Production | MMcf | (1,530) | (1,390) | (560) |
Proved Developed and Proved Undeveloped Reserves, MBoe Beginning Balance | MBoe | 146,248 | 114,661 | 95,479 |
Extensions and discoveries, MBoe | MBoe | 34,895 | 43,247 | 27,282 |
Purchases of minerals in place, MBoe | MBoe | 109 | ||
Production, MBoe | MBoe | (5,787) | (5,281) | (3,517) |
Revisions to previous estimates, MBoe | MBoe | (8,710) | (6,379) | (4,692) |
Proved Developed and Proved Undeveloped Reserves, MBoe Ending Balance | MBoe | 166,646 | 146,248 | 114,661 |
Natural Gas (MMcf) [Member] | |||
Reserve Quantities [Line Items] | |||
Proved Developed and Proved Undeveloped Reserves, Beginning Balance | MMcf | 300,020 | 216,002 | 174,760 |
Extensions and discoveries | MMcf | 79,268 | 79,454 | 38,993 |
Purchases of minerals in place | MMcf | 197 | ||
Production | MMcf | (13,262) | (10,773) | (6,737) |
Revisions to previous estimates | MMcf | 9,962 | 15,337 | 8,789 |
Proved Developed and Proved Undeveloped Reserves, Ending Balance | MMcf | 375,988 | 300,020 | 216,002 |
NGLs (MBbls) [Member] | |||
Reserve Quantities [Line Items] | |||
Proved Developed and Proved Undeveloped Reserves, Beginning Balance | 40,907 | 32,593 | 29,100 |
Extensions and discoveries | 10,630 | 10,658 | 6,531 |
Purchases of minerals in place | 14 | ||
Production | (1,694) | (1,461) | (951) |
Revisions to previous estimates | (357) | (883) | (2,102) |
Proved Developed and Proved Undeveloped Reserves, Ending Balance | 49,486 | 40,907 | 32,593 |
Oil (MBbls) [Member] | |||
Reserve Quantities [Line Items] | |||
Proved Developed and Proved Undeveloped Reserves, Beginning Balance | 55,338 | 46,067 | 37,252 |
Extensions and discoveries | 11,054 | 19,347 | 14,252 |
Purchases of minerals in place | 62 | ||
Production | (1,882) | (2,024) | (1,444) |
Revisions to previous estimates | (10,014) | (8,052) | (4,055) |
Proved Developed and Proved Undeveloped Reserves, Ending Balance | 54,496 | 55,338 | 46,067 |
Disclosures About Oil and Gas58
Disclosures About Oil and Gas Producing Activities - Summary of Changes in Quantities of Proved Oil, NGL and Natural Gas Reserves (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2015MBoeMBblsMMcf | Dec. 31, 2014MBoeMBblsMMcf | Dec. 31, 2013MBoeMBblsMMcf | |
Reserve Quantities [Line Items] | |||
Beginning Balance, Proved Developed Reserves, MBoe | MBoe | 60,220 | 45,189 | 32,774 |
Ending Balance, Proved Developed Reserves, MBoe | MBoe | 61,856 | 60,220 | 45,189 |
Beginning Balance, Proved Undeveloped Reserves, MBoe | MBoe | 86,028 | 69,472 | 62,705 |
Ending Balance, Proved undeveloped Reserves, MBoe | MBoe | 104,790 | 86,028 | 69,472 |
Field fuel | MMcf | 1,530 | 1,390 | 560 |
Natural Gas (MMcf) [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning Balance, Proved Developed Reserve, MMcf | MMcf | 138,961 | 99,742 | 73,178 |
Ending Balance, Proved Developed Reserve, MMcf | MMcf | 154,652 | 138,961 | 99,742 |
Beginning Balance, Proved Undeveloped Reserves, MMcf | MMcf | 161,059 | 116,260 | 101,582 |
Ending Balance, Proved Undeveloped Reserves, MMcf | MMcf | 221,335 | 161,059 | 116,260 |
Field fuel | MMcf | 13,262 | 10,773 | 6,737 |
NGLs (MBbls) [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning Balance, Proved Developed Reserves, MBbls | 19,082 | 14,919 | 11,761 |
Ending Balance, Proved Developed Reserves, MBbls | 20,414 | 19,082 | 14,919 |
Beginning Balance, Proved Undeveloped Reserves, MBbls | 21,825 | 17,674 | 17,339 |
Ending Balance, Proved Undeveloped Reserves, MBbls | 29,072 | 21,825 | 17,674 |
Field fuel | 1,694 | 1,461 | 951 |
Oil (MBbls) [Member] | |||
Reserve Quantities [Line Items] | |||
Beginning Balance, Proved Developed Oil Reserves, MBbls | 17,978 | 13,646 | 8,816 |
Ending Balance, Proved Developed Oil Reserves, MBbls | 15,667 | 17,978 | 13,646 |
Beginning Balance, Proved Undeveloped Oil Reserves, MBbls | 37,360 | 32,421 | 28,436 |
Ending Balance, Proved Undeveloped Oil Reserves, MBbls | 38,829 | 37,360 | 32,421 |
Field fuel | 1,882 | 2,024 | 1,444 |
Disclosures About Oil and Gas59
Disclosures About Oil and Gas Producing Activities - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015MBoeMMcf | Dec. 31, 2014MBoeMMcf | Dec. 31, 2013MBoeMMcf | |
Reserve Quantities [Line Items] | |||
Extensions and discoveries | 34,900 | 43,200 | 27,300 |
Downward revisions | 8,700 | 6,400 | 4,700 |
Economic revisions | 11,900 | 9,300 | |
Production | 5,800 | 5,300 | 3.5 |
Field fuel | MMcf | 1,530 | 1,390 | 560 |
Significant changes in reserves | Extensions and discoveries for 2015 were 34.9 MMBoe, primarily attributable to our development project in the Wolfcamp shale oil resource play in the Permian Basin. During 2015, we recorded net downward revisions totaling 8.7 MMBoe, including the reclassification of 11.9 MMBoe of proved reserves to unproved reserves. The reserves reclassified are attributable to horizontal and vertical well locations in Project Pangea that are no longer expected to be developed within five years from their initial booking, as required by SEC rules. Revisions also included 13 MMBoe of positive revisions resulting from cost reductions, updated well performance and technical parameters, offset by 9.8 MMBoe of negative revisions due to lower commodity prices. | Extensions and discoveries for 2014 were 43.2 MMBoe, primarily attributable to our development project in the Wolfcamp shale oil resource play in the Permian Basin. During 2014, we recorded downward revisions totaling 6.4 MMBoe, including the reclassification of 9.3 MMBoe of proved undeveloped reserves to probable undeveloped. The reserves reclassified from proved undeveloped to probable undeveloped included 5.8 MMBoe attributable to vertical Canyon locations in Project Pangea that we do not plan to drill within five years from their initial booking, and 3.5 MMBoe attributable to horizontal Wolfcamp locations that are no longer included in our proved development plan. Revisions also included 6.3 MMBoe of positive net revisions attributable to updated well performance and 0.7 MMBoe of positive revisions due to pricing, offset by 4.1 MMBoe of negative revisions resulting from updated technical parameters and costs. | Extensions and discoveries for 2013 were 27.3 MMBoe, primarily attributable to our development project in the Wolfcamp shale oil resource play in the Permian Basin. During 2013, we recorded downward revisions totaling 4.7 MMBoe. Revisions included the reclassification of 7.8 MMBoe of proved undeveloped reserves to probable undeveloped, partially offset by 3.1 MMBoe of positive revisions attributable to gas that will be produced and utilized as field fuel. The reserves reclassified from proved undeveloped to probable undeveloped were attributable to vertical Canyon locations in Project Pangea. Due to our horizontal Wolfcamp development project, including pad drilling, postponement of these deeper locations beyond five years from initial booking was necessary to integrate their development with the shallower Clearfork and Wolfcamp target zones. |
Period for reclassification of proved reserves to unproved reserves | 5 years | ||
Positive revisions due to cost reduction, updated well Performance and technical parameters | 13,000 | ||
Downward revisions due to lower commodity prices | 9,800 | ||
Positive revisions | (8,710) | (6,379) | (4,692) |
Positive/(Negative) revision due to pricing | 700 | ||
Southeast Project Pangea [Member] | |||
Reserve Quantities [Line Items] | |||
Downward revisions | 4,100 | ||
Economic revisions | 5,800 | 7,800 | |
Positive revisions | 3,100 | ||
Wolfcamp Shale Oil Resources [Member] | |||
Reserve Quantities [Line Items] | |||
Economic revisions | 3,500 | ||
Positive revisions | 6,300 |
Disclosures About Oil and Gas60
Disclosures About Oil and Gas Producing Activities - Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Extractive Industries [Abstract] | ||||
Future cash flows | $ 4,097,568 | $ 7,430,368 | $ 5,953,060 | |
Future production costs | (1,237,888) | (1,704,333) | (1,372,005) | |
Future development costs | (934,814) | (1,247,446) | (1,154,685) | |
Future income tax expense | (307,374) | (1,267,025) | (919,454) | |
Future net cash flows | 1,617,492 | 3,211,564 | 2,506,916 | |
10% annual discount for estimated timing of cash flows | (1,157,097) | (2,155,749) | (1,830,639) | |
Standardized measure of discounted future net cash flows | $ 460,395 | $ 1,055,815 | $ 676,277 | $ 494,220 |
Disclosures About Oil and Gas61
Disclosures About Oil and Gas Producing Activities - Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Extractive Industries [Abstract] | |||
Standardized measure of discounted future net cash flows, Beginning balance | $ 1,055,815 | $ 676,277 | $ 494,220 |
Net change in sales and transfer prices and in production (lifting) costs related to future production | (1,405,864) | (59,920) | 74,088 |
Changes in estimated future development costs | 231,900 | (388,772) | (301,132) |
Sales and transfers of oil and gas produced during the period | (91,278) | (209,893) | (149,310) |
Net change due to extensions, discoveries and improved recovery | 156,783 | 534,231 | 360,080 |
Net change due to purchase of minerals in place | 1,435 | ||
Net change due to revisions in quantity estimates | (59,305) | (78,801) | (61,931) |
Previously estimated development costs incurred during the period | 146,237 | 382,995 | 287,898 |
Accretion of discount | 105,582 | 113,188 | 87,937 |
Other | 6,915 | (11,897) | 1,896 |
Net change in income taxes | 313,610 | 98,407 | (118,904) |
Standardized Measure of discounted future net cash flows | $ 460,395 | $ 1,055,815 | $ 676,277 |
Supplementary Data - Selected Q
Supplementary Data - Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Oct. 31, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Net revenue | $ 25,492 | $ 33,941 | $ 38,605 | $ 33,298 | $ 55,070 | $ 68,124 | $ 73,408 | $ 61,927 | $ 58,565 | $ 44,196 | $ 42,272 | $ 36,269 | $ 131,336 | $ 258,529 | $ 181,302 | |
Net operating expenses | (38,671) | (272,462) | (46,970) | (45,686) | (50,136) | (45,525) | (50,812) | (44,899) | (40,402) | (34,314) | (31,329) | (31,665) | (403,789) | (191,372) | (137,710) | |
Interest expense, net | (6,436) | (6,465) | (6,243) | (5,922) | (5,715) | (5,442) | (5,357) | (5,137) | (5,225) | (5,179) | (2,451) | (1,229) | (25,066) | (21,651) | (14,084) | |
Gain on debt extinguishment | 9,080 | 1,483 | 10,563 | |||||||||||||
Equity in earnings (losses) of investee | 5 | (186) | (4) | 340 | (64) | (116) | (181) | 156 | ||||||||
Gain on sale of Wildcat pipeline | $ 90,700 | 90,743 | 90,743 | |||||||||||||
Realized gain (loss) on commodity derivatives | 14,552 | 12,755 | 9,281 | 15,901 | 7,782 | (764) | (3,320) | (1,339) | 199 | (840) | (714) | 307 | 52,489 | 2,359 | (1,048) | |
Unrealized (loss) gain on commodity derivatives | (10,285) | 296 | (13,904) | (9,321) | 36,907 | 18,810 | (7,678) | (5,926) | (1,348) | (3,438) | 4,290 | (4,100) | (33,214) | 42,113 | (4,596) | |
Other income (expense) | 225 | (91) | 12 | 26 | 176 | (109) | 172 | 67 | ||||||||
(LOSS) INCOME BEFORE INCOME TAX (BENEFIT) PROVISION | (6,043) | (230,543) | (19,219) | (11,704) | 44,089 | 35,203 | 5,946 | 4,626 | 102,528 | 765 | 12,004 | (534) | (267,509) | 89,864 | 114,763 | |
Income tax provision (benefit) | (284) | (81,756) | (7,369) | (3,996) | 17,102 | 12,756 | 2,153 | 1,681 | 38,207 | 270 | 4,217 | (187) | (93,405) | 33,692 | 42,507 | |
NET (LOSS) INCOME | $ (5,759) | $ (148,787) | $ (11,850) | $ (7,708) | $ 26,987 | $ 22,447 | $ 3,793 | $ 2,945 | $ 64,321 | $ 495 | $ 7,787 | $ (347) | $ (174,104) | $ 56,172 | $ 72,256 | |
Basic net income (loss) applicable to common stockholders per common share | $ (0.14) | $ (3.67) | $ (0.29) | $ (0.19) | $ 0.68 | $ 0.57 | $ 0.10 | $ 0.08 | $ 1.65 | $ 0.01 | $ 0.20 | $ (0.01) | $ (4.30) | $ 1.43 | $ 1.85 | |
Diluted net income (loss) applicable to common stockholders per common share | $ (0.14) | $ (3.67) | $ (0.29) | $ (0.19) | $ 0.68 | $ 0.57 | $ 0.10 | $ 0.08 | $ 1.65 | $ 0.01 | $ 0.20 | $ (0.01) | $ (4.30) | $ 1.42 | $ 1.85 |