Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Entity Registrant Name | SRC Energy Inc. | |
Entity Central Index Key | 1,413,507 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 200,828,968 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 33,197 | $ 18,615 |
Accounts receivable: | ||
Oil, natural gas, and NGL sales | 21,924 | 25,728 |
Trade | 18,894 | 6,805 |
Commodity derivative assets | 622 | 297 |
Other current assets | 4,566 | 2,739 |
Total current assets | 79,203 | 54,184 |
Property and equipment: | ||
Unproved properties and land, not subject to depletion | 355,267 | 398,547 |
Proved properties, net of accumulated depletion | 502,329 | 424,082 |
Wells in progress | 82,664 | 81,780 |
Oil and gas properties, net | 940,260 | 904,409 |
Other property and equipment, net | 6,113 | 4,327 |
Total property and equipment, net | 946,373 | 908,736 |
Cash held in escrow and other deposits | 18,219 | 18,248 |
Goodwill | 40,711 | 40,711 |
Other assets | 2,077 | 2,234 |
Total assets | 1,086,583 | 1,024,113 |
Current liabilities: | ||
Accounts payable and accrued expenses | 97,726 | 52,453 |
Revenue payable | 19,044 | 16,557 |
Production taxes payable | 13,097 | 17,673 |
Asset retirement obligations | 1,508 | 2,683 |
Commodity derivative liabilities | 45 | 2,874 |
Total current liabilities | 131,420 | 92,240 |
Revolving credit facility | 0 | |
Notes payable, net of issuance costs | 75,809 | 75,614 |
Asset retirement obligations | 13,955 | 13,775 |
Other liabilities | 1,981 | 1,745 |
Total liabilities | 223,165 | 183,374 |
Commitments and contingencies (See Note 14) | ||
Shareholders' equity: | ||
Preferred stock - $0.01 par value, 10,000,000 shares authorized: no shares issued and outstanding | 0 | 0 |
Common stock - $0.001 par value, 300,000,000 shares authorized: 200,806,149 and 200,647,572 shares issued and outstanding, respectively | 201 | 201 |
Additional paid-in capital | 1,151,899 | 1,148,998 |
Retained deficit | (288,682) | (308,460) |
Total shareholders' equity | 863,418 | 840,739 |
Total liabilities and shareholders' equity | $ 1,086,583 | $ 1,024,113 |
CONDENSED BALANCE SHEETS (Paren
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 200,806,149 | 200,647,572 |
Common stock, shares outstanding | 200,806,149 | 200,647,572 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Oil, natural gas, and NGL revenues | $ 43,790 | $ 18,273 |
Sales of purchased oil | 1,268 | 0 |
Total revenues | 45,058 | 18,273 |
Expenses: | ||
Lease operating expenses | 3,722 | 4,299 |
Production taxes | 1,466 | 1,833 |
Costs of purchased oil | 1,518 | 0 |
Depreciation, depletion, and accretion | 13,229 | 12,092 |
Full cost ceiling impairment | 0 | 45,621 |
Unused commitment charge | 669 | 68 |
General and administrative | 8,200 | 7,443 |
Total expenses | 28,804 | 71,356 |
Operating income (loss) | 16,254 | (53,083) |
Other income (expense): | ||
Commodity derivatives gain | 3,379 | 1,680 |
Interest expense, net of amounts capitalized | 0 | 0 |
Interest income | 11 | 8 |
Other income (expense) | 236 | (6) |
Total other income | 3,626 | 1,682 |
Income (Loss) before income taxes | 19,880 | (51,401) |
Income tax expense | 0 | 0 |
Net income (loss) | $ 19,880 | $ (51,401) |
Net income (loss) per common share: | ||
Basic (in dollars per share) | $ 0.10 | $ (0.42) |
Diluted (in dollars per share) | $ 0.10 | $ (0.42) |
Weighted-average shares outstanding: | ||
Basic (in shares) | 200,707,891 | 121,392,736 |
Diluted (in shares) | 201,309,251 | 121,392,736 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 19,880 | $ (51,401) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depletion, depreciation, and accretion | 13,229 | 12,092 |
Full cost ceiling impairment | 0 | 45,621 |
Stock-based compensation | 2,675 | 2,519 |
Mark-to-market of commodity derivative contracts: | ||
Total gain on commodity derivatives contracts | (3,379) | (1,680) |
Cash settlements on commodity derivative contracts | 81 | 3,059 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,745) | 557 |
Accounts payable and accrued expenses | 5,293 | (1,075) |
Revenue payable | 2,486 | (3,132) |
Production taxes payable | (4,807) | 1,602 |
Other | (2,355) | (40) |
Net cash provided by operating activities | 29,358 | 8,122 |
Cash flows from investing activities: | ||
Acquisitions of oil and gas properties and leaseholds | (25,082) | (10,645) |
Capital expenditures for drilling and completion activities | (55,464) | (22,581) |
Other capital expenditures | (2,416) | (722) |
Land and other property and equipment | (2,101) | (426) |
Cash held in escrow | 29 | 0 |
Proceeds from sales of oil and gas properties | 70,689 | 0 |
Net cash used in investing activities | (14,345) | (34,374) |
Cash flows from financing activities: | ||
Proceeds from equity offerings | 0 | 92,575 |
Offering costs | 0 | (3,409) |
Payment of employee payroll taxes in connection with shares withheld | (431) | (284) |
Payment of employee payroll taxes in connection with shares withheld | 20,000 | 0 |
Principal repayments on revolving credit facility | (20,000) | (78,000) |
Financing fees on amendments to revolving credit facility | 0 | (192) |
Net cash (used in) provided by financing activities | (431) | 10,690 |
Net increase (decrease) in cash and equivalents | 14,582 | (15,562) |
Cash and equivalents at beginning of period | 18,615 | 66,499 |
Cash and equivalents at end of period | $ 33,197 | $ 50,937 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization : Synergy Resources Corporation, doing business as SRC Energy Inc., (the "Company") is a growth-oriented, independent oil and natural gas company engaged in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids ("NGLs"), primarily in the Denver-Julesburg Basin ("D-J Basin") of Colorado. The Company has proposed to its shareholders that they approve a change in its legal name to "SRC Energy Inc." at its 2017 annual meeting. Pending the shareholder vote on the proposal, the Company began using the new name on a "doing business as" basis beginning on March 6, 2017. In addition to using the new name on a "doing business as" basis, the Company’s common stock, which is listed and traded on the NYSE MKT, changed to the new symbol "SRCI." Unless the context otherwise requires, references to "SRC Energy" and "SRC Energy Inc." in this report refer to the registrant, Synergy Resources Corporation and its consolidated subsidiaries. Basis of Presentation: The Company operates in one business segment, and all of its operations are located in the United States of America. At the directive of the Securities and Exchange Commission to use "plain English" in public filings, the Company will use such terms as "we," "our," "us," or the "Company" in place of SRC Energy Inc. When such terms are used in this manner throughout this document, they are in reference only to the corporation, SRC Energy Inc., and are not used in reference to the Board of Directors, corporate officers, management, or any individual employee or group of employees. The condensed consolidated financial statements include the accounts of the Company, including its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Interim Financial Information: The unaudited condensed consolidated interim financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the SEC as promulgated in Rule 10-01 of Regulation S-X. The condensed consolidated balance sheet as of December 31, 2016 was derived from the Company's Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the SEC on February 23, 2017. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such SEC rules and regulations. The Company believes that the disclosures included are adequate to make the information presented not misleading and recommends that these condensed financial statements be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2016 . In our opinion, the unaudited condensed consolidated financial statements contained herein reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company's financial position, results of operations, and cash flows on a basis consistent with that of its prior audited financial statements. However, the results of operations for interim periods may not be indicative of results to be expected for the full fiscal year. Major Customers: The Company sells production to a small number of customers as is customary in the industry. Customers representing 10% or more of its oil, natural gas, and NGL revenue (“major customers”) for each of the periods presented are shown in the following table: Three Months Ended March 31, Major Customers 2017 2016 Company A * 42% Company B 22% 25% Company C 31% * Company D * 12% Company E 23% * * less than 10% Based on the current demand for oil and natural gas, the availability of other buyers and the Company having the option to sell to other buyers if conditions warrant, the Company believes that its oil, natural gas, and NGL production can be sold in the market in the event that it is not sold to the Company’s existing customers. Accounts receivable consist primarily of receivables from oil, natural gas, and NGL sales and amounts due from other working interest owners who are liable for their proportionate share of well costs. The Company typically has the right to withhold future revenue disbursements to recover outstanding joint interest billings on outstanding receivables from joint interest owners. Customers with balances greater than 10% of total receivable balances as of each of the periods presented are shown in the following table: As of As of Major Customers March 31, 2017 December 31, 2016 Company A 24% 43% Company B * 10% Company C 18% 23% Company D 12% * * less than 10% The Company operates exclusively within the United States of America and, except for cash and cash equivalents, all of the Company’s assets are utilized in, and all of its revenues are derived from, the oil and gas industry. Recently Adopted Accounting Pronouncements: In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which intends to improve the accounting for share-based payment transactions. ASU 2016-09 changes several aspects of the accounting for share-based payment award transactions, including: (1) Accounting and Cash Flow Classification for Excess Tax Benefits and Deficiencies, (2) Forfeitures, and (3) Tax Withholding Requirements and Cash Flow Classification. ASU 2016-09 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. We adopted this pronouncement effective January 1, 2017. Upon adoption of this standard, we no longer estimate the total number of awards for which the requisite service period will not be rendered, and effective January 1, 2017, we will account for forfeitures when they occur. We applied this accounting change on a modified retrospective basis with a cumulative-effect adjustment of $0.1 million to retained earnings as of the date of adoption. The adoption of the other provisions did not materially impact the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"), which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. We adopted ASU 2017-04 on January 1, 2017, and it will be applied for any interim or annual goodwill impairment tests subsequent to that date. The adoption of this guidance is not expected to materially impact the consolidated financial statements. Recently Issued Accounting Pronouncements: We evaluate the pronouncements of various authoritative accounting organizations to determine the impact of new accounting pronouncements on us. In November 2016, the FASB issued ASU 2016-18, "Restricted Cash" ("ASU 2016-18"), which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. Key requirements of ASU 2016-18 are as follows: 1) An entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. ASU 2016-18 does not define the terms “restricted cash” and “restricted cash equivalents” but states that an entity should continue to provide appropriate disclosures about its accounting policies pertaining to restricted cash in accordance with other GAAP. ASU 2016-18 also states that any change in accounting policy will need to be assessed under ASC 250; 2) A reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents; 3) Changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, and restricted cash and restricted cash equivalents should not be presented as cash flow activities in the statement of cash flows; and 4) An entity with a material balance of amounts generally described as restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods therein. Early adoption is permitted, and we must apply the guidance retrospectively to all periods presented. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which establishes a comprehensive new lease standard designed to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous US GAAP. ASU 2016-02 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. In March 2016, the FASB released certain implementation guidance through ASU 2016-08 (collectively with ASU 2014-09, the "Revenue ASUs") to clarify principal versus agent considerations. The Revenue ASUs allow for the use of either the full or modified retrospective transition method, and the standard will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that period, with early adoption permitted for annual reporting periods beginning after December 15, 2016. Currently, we have not identified any contracts that would require a change from the entitlements method, historically used for certain domestic natural gas sales, to the sales method of accounting. We are continuing to evaluate the provisions of these ASUs as pertinent to certain sales contracts and in particular as they relates to disclosure requirements. There were various updates recently issued by the FASB, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on our reported financial position, results of operations, or cash flows. Change in estimate: During the three months ended March 31, 2017, the Company reduced its estimate for production taxes based on recent historical experience and additional information received during the period. As a result, the Company decreased the accrual for production taxes to be paid by approximately $2.0 million , which increased our operating income for the three months ended March 31, 2017 by a corresponding amount, or $0.01 per basic and diluted common share. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The capitalized costs related to the Company’s oil and gas producing activities were as follows (in thousands): As of As of March 31, 2017 December 31, 2016 Oil and gas properties, full cost method: Costs of unproved properties and land, not subject to depletion: Lease acquisition and other costs $ 349,036 $ 392,561 Land 6,231 5,986 Subtotal, unproved properties and land 355,267 398,547 Costs of wells in progress 82,664 81,780 Costs of proved properties: Producing and non-producing 1,061,023 969,239 Less, accumulated depletion and full cost ceiling impairments (558,694 ) (545,157 ) Subtotal, proved properties, net 502,329 424,082 Costs of other property and equipment: Other property and equipment 6,939 5,063 Less, accumulated depreciation (826 ) (736 ) Subtotal, other property and equipment, net 6,113 4,327 Total property and equipment, net $ 946,373 $ 908,736 The Company periodically reviews its oil and gas properties to determine if the carrying value of such assets exceeds estimated fair value. For proved producing and non-producing properties, the Company performs a ceiling test each quarter to determine whether there has been an impairment to its capitalized costs. At March 31, 2017, the calculated value of the ceiling limitation exceeded the carrying value of our oil and gas properties subject to the test, and no impairment was necessary. At March 31, 2016, the carrying value of our oil and gas properties subject to the test exceeded the calculated value of the ceiling limitation, resulting in an impairment of $45.6 million . Capitalized Overhead: A portion of the Company’s overhead expenses are directly attributable to acquisition, exploration, and development activities. Under the full cost method of accounting, these expenses, in the amounts shown in the table below, were capitalized in the full cost pool (in thousands): Three Months Ended March 31, 2017 2016 Capitalized overhead $ 2,680 $ 649 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions The Company seeks to acquire developed and undeveloped oil and gas properties, primarily in the core Wattenberg Field. The objective of these acquisitions is to provide additional mineral acres upon which the Company can drill wells and produce hydrocarbons. March 2017 Acquisition In March 2017, we closed an acquisition comprised primarily of developed and undeveloped oil and gas leasehold interests for a total purchase price of $25.7 million, composed of cash and assumed liabilities. Acquisitions in the Second Half of 2016 In August and October 2016, the Company completed four acquisitions of certain assets for a total purchase price of $13.5 million , composed of cash, forgiven receivables, and assumed liabilities. The acquired properties were comprised primarily of undeveloped oil and gas leasehold interests and additional interests in developed properties operated by the Company. June 2016 Acquisition In May 2016, we entered into a purchase and sale agreement (the "GC Agreement") with a large publicly-traded company pursuant to which we agreed to acquire a total of approximately 72,000 gross ( 33,100 net) acres in an area referred to as the Greeley-Crescent development area in the Wattenberg Field for $505.0 million (the "GC Acquisition"). Estimated net daily production from the acquired properties was approximately 2,400 BOE at the time of entering into the GC Agreement. In June 2016, the Company closed on the portion of the assets comprised of the undeveloped oil and gas leasehold interests and non-operated production. The effective date of this part of the transaction was April 1, 2016. A second closing will cover the operated producing properties and is expected to be completed in 2017. The Company has placed $18.2 million in escrow to be released upon the second closing. For the second closing, the effective date will be April 1, 2016 for the horizontal wells to be acquired, and the first day of the calendar month in which the closing for such properties occurs for the vertical wells. The second closing is subject to certain closing conditions including the receipt of regulatory approval. Accordingly, the second closing of the transaction may not close in the expected time frame or at all. The first closing on June 14, 2016 was for a total purchase price of $486.4 million , net of customary closing adjustments. The purchase price was composed of $485.1 million in cash plus the assumption of certain liabilities. The first closing encompassed approximately 33,100 net acres of oil and gas leasehold interests and related assets and net production of approximately 800 BOED at the time of entering into the GC Agreement. The first closing was accounted for using the acquisition method under ASC 805, Business Combinations , which requires the acquired assets and liabilities to be recorded at fair values as of the acquisition date of June 14, 2016. Transaction costs of $0.5 million r elated to the acquisition were expensed as incurred. The following table summarizes the purchase price and final fair values of assets acquired and liabilities assumed (in thousands): Preliminary Purchase Price June 14, 2016 Consideration given: Cash $ 485,141 Net liabilities assumed, including asset retirement obligations 1,273 Total consideration given $ 486,414 Preliminary Allocation of Purchase Price Proved oil and gas properties (1) $ 132,903 Unproved oil and gas properties 353,511 Total fair value of assets acquired $ 486,414 (1) Proved oil and gas properties were measured primarily using an income approach. The fair value measurements of the oil and gas assets were based, in part, on significant inputs not observable in the market and thus represent a Level 3 measurement. The significant inputs included assumed future production profiles, commodity prices (mainly based on observable market inputs), a discount rat e of 11.5% , a nd assumptions regarding the timing and amount of future development and operating costs. For the three months ended March 31, 2017 , the results of operations of the acquired assets, representing approximately $2.2 million of revenue and $1.8 million of operating income, respectively, have been included in the Company's condensed consolidated statements of operations. The following table presents the unaudited pro forma combined results of operations for the three months ended March 31, 2016 as if the first closing had occurred on January 1, 2016. The unaudited pro forma results reflect significant pro forma adjustments related to funding the acquisition through cash, additional depreciation expense, costs directly attributable to the acquisition, and operating costs incurred as a result of the assets acquired. The pro forma results do not include any cost savings or other synergies that may result from the acquisition or any estimated costs that have been or will be incurred by the Company to integrate the properties acquired. The pro forma results are not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of the period, nor are they necessarily indicative of future results. (in thousands) Three Months Ended March 31, 2016 Oil, natural gas, and NGLs revenues $ 20,117 Net loss $ (53,013 ) Net loss per common share Basic $ (0.27 ) Diluted $ (0.27 ) February 2016 Acquisition In February 2016, the Company completed the acquisition of undeveloped oil and gas leasehold interests for a total purchase price of $10.0 million . The purchase price has been allocated as $8.6 million to proved oil and gas properties and $1.4 million to unproved oil and gas properties. This allocation reflects significant use of estimates. Divestitures During the three months ended March 31, 2017, we completed divestitures of acreage outside of the Company's core development area. The transactions resulted in the Company divesting approximately 10,600 net undeveloped acres and approximately 700 BOED of associated production for $76.8 million, comprised of cash and liabilities transferred to the buyers. In April 2016, the Company agreed to divest approximately 3,700 net undeveloped acres and 107 vertical wells primarily in Adams County, Colorado for total consideration of approximately $24.7 million in cash and the assumption by the buyer of $0.5 million in liabilities. The divested assets had associated production of approximately 200 BOED. The vertical well transaction closed in April 2016, and the undeveloped acreage transaction closed in June 2016. In accordance with full cost accounting guidelines, the net proceeds were credited to the full cost pool. |
Depletion, depreciation, and ac
Depletion, depreciation, and accretion ("DDA") | 3 Months Ended |
Mar. 31, 2017 | |
Other Costs and Disclosures [Abstract] | |
Depletion, depreciation, and accretion (DDA) | Depletion, depreciation, and accretion ("DD&A") DD&A consisted of the following (in thousands): Three Months Ended March 31, 2017 2016 Depletion of oil and gas properties $ 12,703 $ 11,743 Depreciation and accretion 526 349 Total DD&A Expense $ 13,229 $ 12,092 Capitalized costs of proved oil and gas properties are depleted quarterly using the units-of-production method based on a depletion rate, which is calculated by comparing production volumes for the quarter to estimated total reserves at the beginning of the quarter. For the three months ended March 31, 2017 , production of 1,597 MBOE represented 1.1% of estimated total proved reserves. For the three months ended March 31, 2016 , production of 1,047 MBOE represented 1.5% of estimated total proved reserves. DD&A expense was $8.28 per BOE and $11.55 per BOE for the three months ended March 31, 2017 and 2016 , respectively. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Upon completion or acquisition of a well, the Company recognizes obligations for its oil and natural gas operations for anticipated costs to remove and dispose of surface equipment, plug and abandon the wells, and restore the drilling site to its original use. The estimated present value of such obligations is determined using several assumptions and judgments about the ultimate settlement amounts, inflation factors, credit-adjusted discount rates, timing of settlement, and changes in regulations. Changes in estimates are reflected in the obligations as they occur. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the capitalized asset retirement cost. The following table summarizes the changes in asset retirement obligations associated with the Company's oil and gas properties (in thousands): Three Months Ended March 31, 2017 Beginning asset retirement obligation, December 31, 2016 $ 16,458 Obligations incurred with development activities 882 Obligations assumed with acquisitions 1,098 Accretion expense 312 Obligations discharged with sales, asset retirements, and settlements (3,287 ) Revisions in previous estimates — Ending asset retirement obligation, March 31, 2017 $ 15,463 |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2017 | |
Line of Credit Facility [Abstract] | |
Revolving Credit Facility | Revolving Credit Facility The Company maintains a revolving credit facility (sometimes referred to as the "Revolver") with a bank syndicate with a maturity date of December 15, 2019 . The Revolver is available for working capital requirements, capital expenditures, acquisitions, general corporate purposes, and to support letters of credit. As of March 31, 2017 , the terms of the Revolver provide for up to $500 million in borrowings, subject to a borrowing base limitation of $160 million . There was no outstanding principal balance as of March 31, 2017 and December 31, 2016. The Company has an outstanding letter of credit of approximately $0.5 million . In April 2017, the lenders under our Revolver completed their regular semi-annual redetermination of our borrowing base. The borrowing base was increased from $160 million to $225 million ; however, the Company chose to limit its elected commitments to $210 million . The next semi-annual redetermination is scheduled for November 2017 . As of April 30, 2017, the Company's outstanding principal balance was $25 million . Interest under the Revolver accrues monthly at a variable rate. For each borrowing, the Company designates its choice of reference rates, which can be either the Prime Rate plus a margin or London InterBank Offered Rate ("LIBOR") plus a margin. The interest rate margin, as well as other bank fees, varies with utilization of the Revolver. The average annual interest rate for borrowings during the three months ended March 31, 2017 and 2016 was 2.8% and 2.5% , respectively. Certain of the Company’s assets, including substantially all of the producing wells and developed oil and gas leases, have been designated as collateral under the Revolver. The borrowing commitment is subject to scheduled redeterminations on a semi-annual basis. If certain events occur or if the bank syndicate or the Company so elects, an unscheduled redetermination could be undertaken. The Revolver contains covenants that, among other things, restrict the payment of dividends and limit our overall commodity derivative position to a maximum position that varies over 5 years as a percentage of estimated proved developed producing or total proved reserves as projected in the semi-annual reserve report. Furthermore, the Revolver requires the Company to maintain compliance with certain financial and liquidity ratio covenants. Under the requirements, the Company, on a quarterly basis, must not (a) at any time permit its ratio of total funded debt as of such time to EBITDAX, as defined in the agreement, to be greater than or equal to 4.0 to 1.0 or (b) as of the last day o f any fiscal quarter permit its current ratio, as defined in the agreement, to be less than 1.0 to 1.0. As of March 31, 2017 , the most recent compliance date, the C ompany was in compliance with these covenants and expects to remain in compliance throughout the next 12-month period. |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable In June 2016, the Company issued $80 million aggregate principal amount of 9% Senior Notes ("Senior Notes") in a private placement to qualified institutional buyers. The maturity for the payment of principal is June 13, 2021. Interest on the Senior Notes accrues at 9% and began accruing on June 14, 2016. Interest is payable on June 15 and December 15 of each year, beginning on December 15, 2016. The Senior Notes were issued pursuant to an indenture dated as of June 14, 2016 (the "Indenture") and are guaranteed on a senior unsecured basis by the Company’s existing and future subsidiaries that incur or guarantee certain indebtedness, including indebtedness under the revolving credit facility. The net proceeds from the sale of the Senior Notes were $75.2 million after deductions of $4.8 million for expenses and underwriting discounts and commissions. The associated expenses and underwriting discounts and commissions are amortized using the interest method at an effective interest rate of 10.6% . The net proceeds were used to fund the GC Acquisition as discussed further in Note 3 . At any time prior to December 14, 2018, the Company may redeem all or a part of the Senior Notes subject to the Make-Whole Price (as defined in the Indenture) and accrued and unpaid interest. On and after December 14, 2018, the Company may redeem all or a part of the Senior Notes at the redemption price at a specified percentage of the principal amount of the redeemed notes ( 104.50% for 2018, 102.25% for 2019, and 100% for 2020 and thereafter, during the twelve-month period beginning on December 14 of each applicable year), plus accrued and unpaid interest. Additionally, prior to December 14, 2018, the Company can, on one or more occasions, redeem up to 35% of the principal amount of the Senior Notes with all or a portion of the net cash proceeds of one or more Equity Offerings (as defined in the Indenture) at a redemption price equal to 109% of the principal amount of the redeemed notes, plus accrued and unpaid interest, subject to certain conditions. The Indenture contains covenants that restrict the Company’s ability and the ability of certain of its subsidiaries to, among other things: (i) incur additional indebtedness; (ii) incur liens; (iii) pay dividends; (iv) consolidate, merge or transfer all or substantially all of its or their assets; (v) engage in transactions with affiliates; or (vi) engage in certain restricted business activities. These covenants are subject to a number of exceptions and qualifications. As of March 31, 2017 , the most recent compliance date, the C ompany was in compliance with these loan covenants and expects to remain in compliance throughout the next 12-month period. |
Commodity Derivative Instrument
Commodity Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Derivative Instruments | Commodity Derivative Instruments The Company has entered into commodity derivative instruments as described below. Our commodity derivative instruments may include but are not limited to "collars," "swaps," and "put" positions. Our derivative strategy, including the volumes and commodities covered and the relevant strike prices, is based in part on our view of expected future market conditions and our analysis of well-level economic return potential. In addition, our use of derivative contracts is subject to stipulations set forth in the Revolver. A "put" option gives the owner the right, but not the obligation, to sell the underlying commodity at a specified price (strike price) within a specific time period. Depending on market conditions, strike prices, and the value of the contracts, we may, at times, purchase put options, which require us to pay premiums at the time we purchase the contracts. These premiums represent the fair value of the purchased put as of the date of purchase. Conversely, a "call" option gives the owner the right, but not the obligation, to purchase the underlying commodity at a specified price (strike price) within a specific time period. Depending on market conditions, strike prices, and the value of the contracts, we may, at times, sell call options in conjunction with the purchase of put options to create "collars." We regularly utilize "no premium" (a.k.a. zero cost) collars where, at settlement, we receive the difference between the published index price and a floor price if the index price is below the floor. We pay the difference between the ceiling price and the index price if the index price is above the contracted ceiling price. No amounts are paid or received if the index price is between the floor and the ceiling price. Additionally, at times, we may enter into swaps. Swaps are derivative contracts which obligate two counterparties to effectively trade the underlying commodity at a set price over a specified term. The Company may, from time to time, add incremental derivatives to cover additional production, restructure existing derivative contracts or enter into new transactions to modify the terms of current contracts in order to realize the current value of the Company’s existing positions. The Company does not enter into derivative contracts for speculative purposes. The use of derivatives involves the risk that the counterparties to such instruments will be unable to meet the financial terms of such contracts. The Company’s derivative contracts are currently with four counterparties and an exchange. Two of the counterparties are lenders in the Revolver. The Company has netting arrangements with the counterparties that provide for the offset of payables against receivables from separate derivative arrangements with the counterparty in the event of contract termination. The derivative contracts may be terminated by a non-defaulting party in the event of default by one of the parties to the agreement. The Company’s commodity derivative instruments are measured at fair value and are included in the accompanying condensed consolidated balance sheets as commodity derivative assets or liabilities. Unrealized gains and losses are recorded based on the changes in the fair values of the derivative instruments. Both the unrealized and realized gains and losses resulting from contract settlement of derivatives are recorded in the condensed consolidated statements of operations. The Company’s cash flow is only impacted when the actual settlements under commodity derivative contracts result in making or receiving a payment to or from the counterparty. Actual cash settlements can occur at either the scheduled maturity date of the contract or at an earlier date if the contract is liquidated prior to its scheduled maturity. These settlements under the commodity derivative contracts are reflected as operating activities in the Company’s condensed consolidated statements of cash flows. The Company’s commodity derivative contracts as of March 31, 2017 are summarized below: Settlement Period Derivative Instrument Average Volumes (Bbls per month) Floor Price Ceiling Price Oil - NYMEX WTI Apr 1, 2017 - Dec 31, 2017 Collar 30,556 $ 40.00 $ 60.00 Apr 1, 2017 - Dec 31, 2017 Collar 20,000 $ 45.00 $ 70.00 Apr 1, 2017 - Dec 31, 2017 Collar 30,556 $ 40.00 $ 65.00 Apr 1, 2017 - Apr 30, 2017 Put 20,000 $ 50.00 $ — May 1, 2017 - Aug 31, 2017 Put 20,000 $ 55.00 $ — Apr 1, 2017 - Dec 31, 2017 Collar 30,556 $ 40.00 $ 65.00 Apr 1, 2017 - Dec 31, 2017 Collar 15,278 $ 45.00 $ 65.00 Apr 1, 2017 - Dec 31, 2017 Collar 15,278 $ 45.00 $ 65.10 Settlement Period Derivative Instrument Average Volumes (MMBtu per month) Floor Price Ceiling Price Natural Gas - NYMEX Henry Hub Apr 1, 2017 - Dec 31, 2017 Collar 100,000 $ 2.75 $ 4.00 Apr 1, 2017 - Dec 31, 2017 Collar 152,778 $ 2.75 $ 3.90 Sep 1, 2017 - Dec 31, 2017 Collar 91,500 $ 2.75 $ 4.10 Sep 1, 2017 - Dec 31, 2017 Collar 15,250 $ 3.00 $ 4.31 Apr 1, 2017 - Dec 31, 2017 Collar 110,000 $ 3.00 $ 4.30 Natural Gas - CIG Rocky Mountain Apr 1, 2017 - Apr 30, 2017 Collar 100,000 $ 2.80 $ 3.95 May 1, 2017 - Aug 31, 2017 Collar 110,000 $ 2.50 $ 3.06 Apr 1, 2017 - Dec 31, 2017 Collar 200,000 $ 2.50 $ 3.27 Apr 1, 2017 - Dec 31, 2017 Collar 100,000 $ 2.60 $ 3.20 Subsequent to March 31, 2017, the Company added the following positions: Settlement Period Derivative Instrument Average Volumes (MMBtu per month) Floor Price Ceiling Price Natural Gas - NYMEX Henry Hub May 1, 2017 - Dec 31, 2017 Collar 199,063 $ 3.00 $ 3.88 May 1, 2017 - Dec 31, 2017 Collar 199,063 $ 3.00 $ 3.91 Offsetting of Derivative Assets and Liabilities As of March 31, 2017 and December 31, 2016 , all derivative instruments held by the Company were subject to enforceable master netting arrangements held by various financial institutions. In general, the terms of the Company’s agreements provide for offsetting of amounts payable or receivable between the Company and the counterparty, at the election of either party, for transactions that occur on the same date and in the same currency. The Company’s agreements also provide that, in the event of an early termination, each party has the right to offset amounts owed or owing under that and any other agreement with the same counterparty. The Company’s accounting policy is to offset these positions in its condensed consolidated balance sheets. The following table provides a reconciliation between the net assets and liabilities reflected on the accompanying condensed consolidated balance sheets and the potential effect of master netting arrangements on the fair value of the Company’s derivative contracts (in thousands): As of March 31, 2017 Underlying Balance Sheet Location Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets and Liabilities Presented in the Balance Sheet Commodity derivative contracts Current assets $ 1,740 $ (1,118 ) $ 622 Commodity derivative contracts Noncurrent assets $ — $ — $ — Commodity derivative contracts Current liabilities $ 1,163 $ (1,118 ) $ 45 Commodity derivative contracts Noncurrent liabilities $ — $ — $ — As of December 31, 2016 Underlying Balance Sheet Location Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets and Liabilities Presented in the Balance Sheet Commodity derivative contracts Current assets $ 2,045 $ (1,748 ) $ 297 Commodity derivative contracts Noncurrent assets $ — $ — $ — Commodity derivative contracts Current liabilities $ 4,622 $ (1,748 ) $ 2,874 Commodity derivative contracts Noncurrent liabilities $ — $ — $ — The amount of gain (loss) recognized in the condensed consolidated statements of operations related to derivative financial instruments was as follows (in thousands): Three Months Ended March 31, 2017 2016 Realized gain (loss) on commodity derivatives $ (119 ) $ 2,445 Unrealized gain (loss) on commodity derivatives 3,498 (765 ) Total gain $ 3,379 $ 1,680 Realized gains and losses include cash received from the monthly settlement of derivative contracts at their scheduled maturity date and the previously incurred premiums attributable to settled commodity contracts. The following table summarizes derivative realized gains and losses during the periods presented (in thousands): Three Months Ended March 31, 2017 2016 Monthly settlement $ 225 $ 2,955 Previously incurred premiums attributable to settled commodity contracts (344 ) (510 ) Total realized (loss) gain $ (119 ) $ 2,445 Credit Related Contingent Features As of March 31, 2017 , two of the five counterparties to the Company's derivative instruments were members of the Company’s credit facility syndicate. The Company’s obligations under the credit facility and its derivative contracts are secured by liens on substantially all of the Company’s producing oil and gas properties. The agreement with the third and fourth counterparties, which are not lenders under the credit facility, are unsecured and do not require the posting of collateral. The agreement with the fifth counterparty is subject to an inter-creditor agreement between the counterparty and the Company’s lenders under the credit facility. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820, Fair Value Measurements and Disclosure , establishes a hierarchy for inputs used in measuring fair value for financial assets and liabilities that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: • Level 1: Quoted prices available in active markets for identical assets or liabilities; • Level 2: Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; and • Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash or valuation models. The financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The Company’s non-recurring fair value measurements include unproved properties, asset retirement obligations, and purchase price allocations for the fair value of assets and liabilities acquired through business combinations. Please refer to Notes 2 , 3 , and 5 for further discussion of unproved properties, business combinations, and asset retirement obligations, respectively. The Company determines the estimated fair value of its unproved properties using market comparables which are deemed to be a Level 3 input. See Note 2 for additional information. The acquisition of a group of assets in a business combination transaction requires fair value estimates for assets acquired and liabilities assumed. The fair value of assets and liabilities acquired through business combinations is calculated using a net discounted cash flow approach for the producing properties. The discounted cash flows are developed using the income approach and are based on management’s expectations for the future. Unobservable inputs include estimates of future oil and natural gas production from the Company’s reserve reports, commodity prices based on the NYMEX forward price curves as of the date of the estimate (adjusted for basis differentials), estimated operating and development costs, and a risk-adjusted discount rate (all of which are designated as Level 3 inputs within the fair value hierarchy). For unproved properties, the fair value is determined using the same inputs as described in the paragraph above. For the asset retirement liability assumed, the fair value is determined using the same inputs as described in the paragraph below. See Note 3 for additional information. The Company determines the estimated fair value of its asset retirement obligations by calculating the present value of estimated cash flows related to plugging and abandonment liabilities using Level 3 inputs. The significant inputs used to calculate such liabilities include estimates of costs to be incurred, the Company’s credit-adjusted risk-free rate, inflation rates, and estimated dates of abandonment. The asset retirement liability is accreted to its present value each period, and the capitalized asset retirement cost is depleted as a component of the full cost pool using the units-of-production method. See Note 5 for additional information. The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 by level within the fair value hierarchy (in thousands): Fair Value Measurements at March 31, 2017 Level 1 Level 2 Level 3 Total Financial assets and liabilities: Commodity derivative asset $ — $ 622 $ — $ 622 Commodity derivative liability $ — $ 45 $ — $ 45 Fair Value Measurements at December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets and liabilities: Commodity derivative asset $ — $ 297 $ — $ 297 Commodity derivative liability $ — $ 2,874 $ — $ 2,874 Commodity Derivative Instruments The Company determines its estimate of the fair value of commodity derivative instruments using a market approach based on several factors, including quoted market prices in active markets, quotes from third parties, the credit rating of each counterparty, and the Company’s own credit standing. In consideration of counterparty credit risk, the Company assessed the possibility of whether the counterparties to its derivative contracts would default by failing to make any contractually required payments. The Company considers the counterparties to be of substantial credit quality and believes that they have the financial resources and willingness to meet their potential repayment obligations associated with the derivative transactions. At March 31, 2017 , derivative instruments utilized by the Company consist of puts and collars. The oil and natural gas derivative markets are highly active. Although the Company’s derivative instruments are based on several factors including public indices, the instruments themselves are primarily traded with third-party counterparties and are not openly traded on an exchange. As such, the Company has classified these instruments as Level 2. Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, cash held in escrow, accounts receivable, accounts payable, commodity derivative instruments (discussed above), notes payable, and credit facility borrowings. The carrying values of cash and cash equivalents, cash held in escrow, accounts receivable, and accounts payable are representative of their fair values due to their short-term maturities. Due to the variable interest rate paid on the credit facility borrowings, the carrying value is representative of its fair value. The fair value of the notes payable is estimated to be $85.9 million at March 31, 2017 . The Company determined the fair value of its notes payable at March 31, 2017 by using observable market based information for debt instruments of similar amounts and duration. The Company has classified the notes as Level 2. |
Interest Expense
Interest Expense | 3 Months Ended |
Mar. 31, 2017 | |
Interest and Debt Expense [Abstract] | |
Interest Expense | Interest Expense The components of interest expense are (in thousands): Three Months Ended March 31, 2017 2016 Revolving bank credit facility $ 43 $ 141 Notes payable 1,800 — Amortization of issuance costs 500 295 Less, interest capitalized (2,343 ) (436 ) Interest expense, net $ — $ — |
Weighted-Average Shares Outstan
Weighted-Average Shares Outstanding | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares Outstanding | Weighted-Average Shares Outstanding The following table sets forth the Company's outstanding equity grants which have a dilutive effect on earnings per share: Three Months Ended March 31, 2017 2016 Weighted-average shares outstanding - basic 200,707,891 121,392,736 Potentially dilutive common shares from: Stock options 461,103 — Restricted stock units and stock bonus shares 140,257 — Performance-vested stock units 1 — — Weighted-average shares outstanding - diluted 201,309,251 121,392,736 1 The number of awards assumes that the associated vesting condition is met at the respective period end. The final number of shares of the Company’s common stock issued may vary depending on the performance multiplier, which ranges from zero to two , depending on the level of satisfaction of the vesting condition. The following potentially dilutive securities outstanding for the periods presented were not included in the respective weighted-average shares outstanding-diluted calculation above as such securities had an anti-dilutive effect on earnings per share: Three Months Ended March 31, 2017 2016 Potentially dilutive common shares from: Stock options 4,722,500 5,545,500 Restricted stock units and stock bonus shares 605,252 1,136,401 Performance stock units 1 951,884 464,946 Total 6,279,636 7,146,847 1 The number of awards assumes that the associated vesting condition is met at the target amount. The final number of shares of the Company’s common stock issued may vary depending on the performance multiplier, which ranges from zero to two , depending on the level of satisfaction of the vesting condition. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In addition to cash compensation, the Company may compensate employees and directors with equity-based compensation in the form of stock options, performance-vested stock units, restricted stock units, stock bonus shares, warrants, and other equity awards. The Company records its equity compensation by pro-rating the estimated grant date fair value of each grant over the period of time that the recipient is required to provide services to the Company (the "vesting phase"). The calculation of fair value is based, either directly or indirectly, on the quoted market value of the Company’s common stock. Indirect valuations are calculated using the Black-Scholes-Merton option pricing model or a Monte Carlo Model. For the periods presented, all stock-based compensation was either classified as a component within general and administrative expense in the Company's condensed consolidated statements of operations or, for that portion which is directly attributable to individuals performing acquisition, exploration, and development activities, was capitalized to the full cost pool. The amount of stock-based compensation was as follows (in thousands): Three Months Ended March 31, 2017 2016 Stock options $ 1,246 $ 1,410 Performance stock units 525 — Restricted stock units and stock bonus shares 1,346 1,212 Total stock-based compensation $ 3,117 $ 2,622 Less: stock-based compensation capitalized (442 ) (103 ) Total stock-based compensation expensed $ 2,675 $ 2,519 General Description of Stock Award Plans In December 2015, the Company's shareholders approved the 2015 Equity Incentive Plan (the "2015 Plan"). The 2015 Plan replaced three equity compensation plans: (i) a 2011 non-qualified stock option plan, (ii) a 2011 incentive stock option plan, and (iii) a 2011 stock bonus plan (the "2011 Plans"). No additional options or stock bonus shares will be issued under the 2011 Plans. The 2015 Plan authorizes stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses, and other forms of awards that may be granted or denominated in the Company’s common stock or units of the Company’s common stock as well as cash bonus awards. Employees, directors, officers, consultants, and advisors are eligible to receive such awards, provided that bona fide services are rendered by such consultants or advisors (other than services in connection with the offering or sale of securities or as a market maker or promoter of securities of the Company). As of March 31, 2017 , there were 4,500,000 common shares authorized for grant under the 2015 Plan, of which 1,165,432 shares were remaining for future issuance. Stock options During the periods presented, the Company granted the following stock options: Three Months Ended March 31, 2017 2016 Number of options to purchase common shares — 489,500 Weighted-average exercise price $ — $ 7.72 Term (in years) — 10 years Vesting Period (in years) — 3 - 5 years Fair Value (in thousands) $ — $ 1,729 The assumptions used in valuing stock options granted during each of the periods presented were as follows: Three Months Ended March 31, 2017 2016 Expected term — 6.3 years Expected volatility — % 55 % Risk free rate — 1.50 - 1.75% Expected dividend yield — % — % The following table summarizes activity for stock options for the periods presented: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (thousands) Outstanding, December 31, 2016 6,001,500 $ 9.27 8.0 years $ 6,515 Granted — — Exercised (30,000 ) 3.79 140 Expired (30,000 ) 12.35 Forfeited (68,000 ) 11.78 Outstanding, March 31, 2017 5,873,500 $ 9.25 7.7 years $ 5,343 Outstanding, Exercisable at March 31, 2017 2,529,861 $ 8.42 6.8 years $ 3,783 The following table summarizes information about issued and outstanding stock options as of March 31, 2017 : Outstanding Options Exercisable Options Range of Exercise Prices Options Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price per Share Options Weighted-Average Exercise Price per Share Under $5.00 600,000 4.4 years $ 3.49 559,000 $ 3.47 $5.00 - $6.99 1,012,000 7.7 years 6.38 480,000 6.45 $7.00 - $10.99 1,594,500 8.2 years 9.34 484,661 9.48 $11.00 - $13.46 2,667,000 8.2 years 11.57 1,006,200 11.61 Total 5,873,500 7.7 years $ 9.25 2,529,861 $ 8.42 The estimated unrecognized compensation cost from stock options not vested as of March 31, 2017 , which will be recognized ratably over the remaining vesting phase, is as follows: Unrecognized compensation (in thousands) $ 13,891 Remaining vesting phase 3.0 years Restricted stock units and stock bonus awards The Company grants restricted stock units and stock bonus awards to directors, eligible employees, and officers as a part of its equity incentive plan. Restrictions and vesting periods for the awards are determined by the Compensation Committee of the Board of Directors and are set forth in the award agreements. Each restricted stock unit or stock bonus award represents one share of the Company’s common stock to be released from restrictions upon completion of the vesting period. The awards typically vest in equal increments over three to five years . Restricted stock units and stock bonus awards are valued at the closing price of the Company’s common stock on the grant date and are recognized over the vesting period of the award. The following table summarizes activity for restricted stock units and stock bonus awards for the three months ended March 31, 2017 : Number of Shares Weighted-Average Grant-Date Fair Value Not vested, December 31, 2016 890,336 $ 9.55 Granted 531,454 8.61 Vested (180,927 ) 8.86 Forfeited (14,022 ) 10.59 Not vested, March 31, 2017 1,226,841 $ 9.22 The estimated unrecognized compensation cost from restricted stock units and stock bonus awards not vested as of March 31, 2017 , which will be recognized ratably over the remaining vesting phase, is as follows: Unrecognized compensation (in thousands) $ 9,798 Remaining vesting phase 2.7 years Performance-vested stock units The Company grants performance-vested stock units ("PSUs") to certain executives under its long term incentive plan. The number of shares of the Company’s common stock that may be issued to settle PSUs ranges from zero to two times the number of PSUs awarded. The shares issued for PSUs are determined based on the Company’s performance over a three -year measurement period and vest in their entirety at the end of the measurement period. The PSUs will be settled in shares of the Company’s common stock following the end of the three -year performance cycle. Any PSUs that have not vested at the end of the applicable measurement period are forfeited. The vesting criterion for the PSUs is based on a comparison of the Company’s total shareholder return ("TSR") for the measurement period compared with the TSRs of a group of peer companies for the same measurement period. As the vesting criterion is linked to the Company's share price, it is considered a market condition for purposes of calculating the grant-date fair value of the awards. The fair value of the PSUs was measured at the grant date with a stochastic process method using a Monte Carlo simulation. A stochastic process is a mathematically defined equation that can create a series of outcomes over time. These outcomes are not deterministic in nature, which means that by iterating the equations multiple times, different results will be obtained for those iterations. In the case of the Company’s PSUs, the Company cannot predict with certainty the path its stock price or the stock prices of its peers will take over the performance period. By using a stochastic simulation, the Company can create multiple prospective stock pathways, statistically analyze these simulations, and ultimately make inferences regarding the most likely path the stock price will take. As such, because future stock prices are stochastic, or probabilistic with some direction in nature, the stochastic method, specifically the Monte Carlo Model, is deemed an appropriate method by which to determine the fair value of the PSUs. Significant assumptions used in this simulation include the Company’s expected volatility, risk-free interest rate based on U.S. Treasury yield curve rates with maturities consistent with the measurement period as well as the volatilities for each of the Company’s peers. The assumptions used in valuing the PSUs granted were as follows: Three Months Ended March 31, 2017 2016 Weighted average expected term 2.9 years 2.8 years Weighted average expected volatility 59 % 58 % Weighted average risk free rate 1.34 % 0.87 % During the three months ended March 31, 2017 , the Company granted 473,374 PSUs to certain executives. The fair value of the PSUs granted during the three months ended March 31, 2017 was $5.1 million . As of March 31, 2017 , unrecognized compensation expense for PSUs was $7.4 million and will be amortized through 2018. A summary of the status and activity of PSUs is presented in the following table: Number of Units 1 Weighted-Average Grant-Date Fair Value Not vested, December 31, 2016 478,510 $ 8.09 Granted 473,374 10.79 Vested — — Forfeited — — Not vested, March 31, 2017 951,884 $ 9.44 1 The number of awards assumes that the associated vesting condition is met at the target amount. The final number of shares of the Company’s common stock issued may vary depending on the performance multiplier, which ranges from zero to two , depending on the level of satisfaction of the vesting condition. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We evaluate and update our estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and tax laws. Consequently, based upon the mix and timing of our actual earnings compared to annual projections, our effective tax rate may vary quarterly and may make quarterly comparisons not meaningful. The quarterly income tax provision is generally comprised of tax expense on income or benefit on loss at the most recent estimated annual effective tax rate, adjusted for the effect of discrete items. The effective tax rate for the three months ended March 31, 2017 was nil compared to nil for the three months ended March 31, 2016 . The effective tax rate for the three months ended March 31, 2017 and 2016 is based upon a full year forecasted tax provision and differs from the statutory rate, primarily due to the recognition of a valuation allowance recorded against deferred tax assets. There were no significant discrete items recorded during the three months ended March 31, 2017 and 2016 . As of March 31, 2017 , we had no liability for unrecognized tax benefits. The Company believes that there are no new items, nor changes in facts or judgments that should impact the Company’s tax position. Given the substantial NOL carryforwards at both the federal and state levels, it is anticipated that any changes resulting from a tax examination would simply adjust the carryforwards and would not result in significant interest expense or penalties. Most of the Company's tax returns filed since August 31, 2011 are still subject to examination by tax authorities. As of the date of this report, we are current with our income tax filings in all applicable state jurisdictions, and we are not currently under any state income tax examinations. No significant uncertain tax positions were identified as of any date on or before March 31, 2017 . The Company’s policy is to recognize interest and penalties related to uncertain tax benefits in income tax expense. As of March 31, 2017 , the Company has not recognized any interest or penalties related to uncertain tax benefits. Each period, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Based upon our cumulative losses through March 31, 2017 , we have provided a full valuation allowance reducing the net realizable benefits. |
Other Commitments and Contingen
Other Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments and Contingencies | Other Commitments and Contingencies Volume Commitments During 2014, the Company entered into firm sales agreements for its oil production with three counterparties. Deliveries under two of the agreements commenced in 2015. Deliveries under the third agreement commenced in 2016. Pursuant to these agreements, we must deliver specific amounts of oil either from our own production or from oil that we acquire from third parties. If we are unable to fulfill all of our contractual obligations, we may be required to pay penalties or damages pursuant to these agreements. Our commitments over the next five years, excluding the contingent commitment described below, are as follows: Year ending December 31, Oil (MBbls) Remainder of 2017 3,030 2018 4,255 2019 4,255 2020 3,700 2021 1,672 Thereafter — Total 16,912 During the three months ended March 31, 2017 , the Company incurred deficiency charges of $0.7 million as we were unable to meet all of the obligations during the period. We anticipate that our current gross operated production will meet our delivery obligations beginning in the second quarter of 2017. In collaboration with several other producers and DCP Midstream, we have agreed to participate in the expansion of natural gas gathering and processing capacity in the D-J Basin. The plan includes a new 200 MMcf per day processing plant as well as the expansion of a related gathering system, both currently expected to be completed by late 2018, although the start-up date is undetermined at this time. Our share of the commitment will require 46.4 MMcf per day to be delivered after the plant in-service date for a period of 7 years. This contractual obligation can be reduced by the collective volumes delivered to the plant by other producers in the D-J Basin that are in excess of such producers' total commitment. Office leases In September 2016, the Company entered into a new sixty-five-month lease for the Company’s principal office space located in Denver, which commenced in the first quarter of 2017. Rent under the new lease is approximately $62,000 per month. In July 2016, the Company entered into a field office lease in Greeley which requires monthly payments of $7,500 through October 2021. A schedule of the minimum lease payments under non-cancelable operating leases as of March 31, 2017 follows (in thousands): Year ending December 31, Rent Remainder of 2017 $ 377 2018 840 2019 859 2020 878 2021 875 Thereafter 477 Total $ 4,306 Rent expense for offices leases was $0.4 million and $0.1 million for three months ended March 31, 2017 and 2016 , respectively. Litigation From time to time, the Company is a party to various commercial and regulatory claims, pending or threatened legal action, and other proceedings that arise in the ordinary course of business. It is the opinion of management that none of the current matters of contention are reasonably likely to have a material adverse impact on our business, financial position, results of operations, or cash flows. In July 2016, the Company was informed by the CDPHE that it expects to expand its inspection of the Company's facilities in connection with a Compliance Advisory previously issued by the CDPHE and subsequent inspections conducted by the CDPHE. The Compliance Advisory alleged issues at five Company facilities regarding leakages of volatile organic compounds from storage tanks, all of which were promptly addressed. A subsequent February 2017 tolling agreement between the Company and CDPHE addressed alleged similar storage tank leakage issues at other Company facilities in Colorado. We are working with the CDPHE to respond to any continuing concerns. We cannot predict the outcome of this matter, but we expect that any potential resolution of these claims would be on a field-wide basis. |
Supplemental Schedule of Inform
Supplemental Schedule of Information to the Condensed Consolidated Statements of Cash Flows | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Schedule of Information to the Condensed Consolidated Statements of Cash Flows | Supplemental Schedule of Information to the Condensed Consolidated Statements of Cash Flows The following table supplements the cash flow information presented in the condensed consolidated financial statements for the periods presented (in thousands): Three Months Ended March 31, Supplemental cash flow information: 2017 2016 Interest paid $ 43 $ 146 Non-cash investing and financing activities: Accrued well costs as of period end $ 81,722 $ 15,324 Obligations incurred with development activities 882 — Obligations assumed with acquisitions 1,098 — Obligations discharged with asset retirements and divestitures (3,287 ) — |
Organization and Summary of S21
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation: The Company operates in one business segment, and all of its operations are located in the United States of America. At the directive of the Securities and Exchange Commission to use "plain English" in public filings, the Company will use such terms as "we," "our," "us," or the "Company" in place of SRC Energy Inc. When such terms are used in this manner throughout this document, they are in reference only to the corporation, SRC Energy Inc., and are not used in reference to the Board of Directors, corporate officers, management, or any individual employee or group of employees. The condensed consolidated financial statements include the accounts of the Company, including its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Interim Financial Information | Interim Financial Information: The unaudited condensed consolidated interim financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the SEC as promulgated in Rule 10-01 of Regulation S-X. The condensed consolidated balance sheet as of December 31, 2016 was derived from the Company's Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the SEC on February 23, 2017. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such SEC rules and regulations. The Company believes that the disclosures included are adequate to make the information presented not misleading and recommends that these condensed financial statements be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2016 . In our opinion, the unaudited condensed consolidated financial statements contained herein reflect all adjustments, consisting solely of normal recurring items, which are necessary for the fair presentation of the Company's financial position, results of operations, and cash flows on a basis consistent with that of its prior audited financial statements. However, the results of operations for interim periods may not be indicative of results to be expected for the full fiscal year. |
Major Customers | Accounts receivable consist primarily of receivables from oil, natural gas, and NGL sales and amounts due from other working interest owners who are liable for their proportionate share of well costs. The Company typically has the right to withhold future revenue disbursements to recover outstanding joint interest billings on outstanding receivables from joint interest owners. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which intends to improve the accounting for share-based payment transactions. ASU 2016-09 changes several aspects of the accounting for share-based payment award transactions, including: (1) Accounting and Cash Flow Classification for Excess Tax Benefits and Deficiencies, (2) Forfeitures, and (3) Tax Withholding Requirements and Cash Flow Classification. ASU 2016-09 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016, with early adoption permitted. We adopted this pronouncement effective January 1, 2017. Upon adoption of this standard, we no longer estimate the total number of awards for which the requisite service period will not be rendered, and effective January 1, 2017, we will account for forfeitures when they occur. We applied this accounting change on a modified retrospective basis with a cumulative-effect adjustment of $0.1 million to retained earnings as of the date of adoption. The adoption of the other provisions did not materially impact the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"), which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. We adopted ASU 2017-04 on January 1, 2017, and it will be applied for any interim or annual goodwill impairment tests subsequent to that date. The adoption of this guidance is not expected to materially impact the consolidated financial statements. Recently Issued Accounting Pronouncements: We evaluate the pronouncements of various authoritative accounting organizations to determine the impact of new accounting pronouncements on us. In November 2016, the FASB issued ASU 2016-18, "Restricted Cash" ("ASU 2016-18"), which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. Key requirements of ASU 2016-18 are as follows: 1) An entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. ASU 2016-18 does not define the terms “restricted cash” and “restricted cash equivalents” but states that an entity should continue to provide appropriate disclosures about its accounting policies pertaining to restricted cash in accordance with other GAAP. ASU 2016-18 also states that any change in accounting policy will need to be assessed under ASC 250; 2) A reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents; 3) Changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, and restricted cash and restricted cash equivalents should not be presented as cash flow activities in the statement of cash flows; and 4) An entity with a material balance of amounts generally described as restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods therein. Early adoption is permitted, and we must apply the guidance retrospectively to all periods presented. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which establishes a comprehensive new lease standard designed to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous US GAAP. ASU 2016-02 is effective for public businesses for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which establishes a comprehensive new revenue recognition standard designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In doing so, companies may need to use more judgment and make more estimates than under current revenue recognition guidance. In March 2016, the FASB released certain implementation guidance through ASU 2016-08 (collectively with ASU 2014-09, the "Revenue ASUs") to clarify principal versus agent considerations. The Revenue ASUs allow for the use of either the full or modified retrospective transition method, and the standard will be effective for annual reporting periods beginning after December 15, 2017 including interim periods within that period, with early adoption permitted for annual reporting periods beginning after December 15, 2016. Currently, we have not identified any contracts that would require a change from the entitlements method, historically used for certain domestic natural gas sales, to the sales method of accounting. We are continuing to evaluate the provisions of these ASUs as pertinent to certain sales contracts and in particular as they relates to disclosure requirements. There were various updates recently issued by the FASB, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on our reported financial position, results of operations, or cash flows. |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Oil and Gas Revenues [Member] | |
Concentration Risk [Line Items] | |
Schedule of Customers With Balances Greater Than 10% of Total Receivables | The Company sells production to a small number of customers as is customary in the industry. Customers representing 10% or more of its oil, natural gas, and NGL revenue (“major customers”) for each of the periods presented are shown in the following table: Three Months Ended March 31, Major Customers 2017 2016 Company A * 42% Company B 22% 25% Company C 31% * Company D * 12% Company E 23% * * less than 10% |
Accounts receivable [Member] | |
Concentration Risk [Line Items] | |
Schedule of Customers With Balances Greater Than 10% of Total Receivables | Customers with balances greater than 10% of total receivable balances as of each of the periods presented are shown in the following table: As of As of Major Customers March 31, 2017 December 31, 2016 Company A 24% 43% Company B * 10% Company C 18% 23% Company D 12% * * less than 10% |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Capitalized Costs | The capitalized costs related to the Company’s oil and gas producing activities were as follows (in thousands): As of As of March 31, 2017 December 31, 2016 Oil and gas properties, full cost method: Costs of unproved properties and land, not subject to depletion: Lease acquisition and other costs $ 349,036 $ 392,561 Land 6,231 5,986 Subtotal, unproved properties and land 355,267 398,547 Costs of wells in progress 82,664 81,780 Costs of proved properties: Producing and non-producing 1,061,023 969,239 Less, accumulated depletion and full cost ceiling impairments (558,694 ) (545,157 ) Subtotal, proved properties, net 502,329 424,082 Costs of other property and equipment: Other property and equipment 6,939 5,063 Less, accumulated depreciation (826 ) (736 ) Subtotal, other property and equipment, net 6,113 4,327 Total property and equipment, net $ 946,373 $ 908,736 |
Schedule of Capitalized Overhead | Under the full cost method of accounting, these expenses, in the amounts shown in the table below, were capitalized in the full cost pool (in thousands): Three Months Ended March 31, 2017 2016 Capitalized overhead $ 2,680 $ 649 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) - GC Agreement [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Fair Value of Acquisition | The following table summarizes the purchase price and final fair values of assets acquired and liabilities assumed (in thousands): Preliminary Purchase Price June 14, 2016 Consideration given: Cash $ 485,141 Net liabilities assumed, including asset retirement obligations 1,273 Total consideration given $ 486,414 Preliminary Allocation of Purchase Price Proved oil and gas properties (1) $ 132,903 Unproved oil and gas properties 353,511 Total fair value of assets acquired $ 486,414 (1) Proved oil and gas properties were measured primarily using an income approach. The fair value measurements of the oil and gas assets were based, in part, on significant inputs not observable in the market and thus represent a Level 3 measurement. The significant inputs included assumed future production profiles, commodity prices (mainly based on observable market inputs), a discount rat e of 11.5% , a nd assumptions regarding the timing and amount of future development and operating costs. |
Schedule of Pro Forma Results | The pro forma results are not necessarily indicative of what actually would have occurred if the acquisition had been completed as of the beginning of the period, nor are they necessarily indicative of future results. (in thousands) Three Months Ended March 31, 2016 Oil, natural gas, and NGLs revenues $ 20,117 Net loss $ (53,013 ) Net loss per common share Basic $ (0.27 ) Diluted $ (0.27 ) |
Depletion, depreciation, and 25
Depletion, depreciation, and accretion ("DDA") (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Costs and Disclosures [Abstract] | |
Schedule of Depletion, Depreciation and Amortization | DD&A consisted of the following (in thousands): Three Months Ended March 31, 2017 2016 Depletion of oil and gas properties $ 12,703 $ 11,743 Depreciation and accretion 526 349 Total DD&A Expense $ 13,229 $ 12,092 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The following table summarizes the changes in asset retirement obligations associated with the Company's oil and gas properties (in thousands): Three Months Ended March 31, 2017 Beginning asset retirement obligation, December 31, 2016 $ 16,458 Obligations incurred with development activities 882 Obligations assumed with acquisitions 1,098 Accretion expense 312 Obligations discharged with sales, asset retirements, and settlements (3,287 ) Revisions in previous estimates — Ending asset retirement obligation, March 31, 2017 $ 15,463 |
Commodity Derivative Instrume27
Commodity Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Commodity Derivative Contracts | The Company’s commodity derivative contracts as of March 31, 2017 are summarized below: Settlement Period Derivative Instrument Average Volumes (Bbls per month) Floor Price Ceiling Price Oil - NYMEX WTI Apr 1, 2017 - Dec 31, 2017 Collar 30,556 $ 40.00 $ 60.00 Apr 1, 2017 - Dec 31, 2017 Collar 20,000 $ 45.00 $ 70.00 Apr 1, 2017 - Dec 31, 2017 Collar 30,556 $ 40.00 $ 65.00 Apr 1, 2017 - Apr 30, 2017 Put 20,000 $ 50.00 $ — May 1, 2017 - Aug 31, 2017 Put 20,000 $ 55.00 $ — Apr 1, 2017 - Dec 31, 2017 Collar 30,556 $ 40.00 $ 65.00 Apr 1, 2017 - Dec 31, 2017 Collar 15,278 $ 45.00 $ 65.00 Apr 1, 2017 - Dec 31, 2017 Collar 15,278 $ 45.00 $ 65.10 Settlement Period Derivative Instrument Average Volumes (MMBtu per month) Floor Price Ceiling Price Natural Gas - NYMEX Henry Hub Apr 1, 2017 - Dec 31, 2017 Collar 100,000 $ 2.75 $ 4.00 Apr 1, 2017 - Dec 31, 2017 Collar 152,778 $ 2.75 $ 3.90 Sep 1, 2017 - Dec 31, 2017 Collar 91,500 $ 2.75 $ 4.10 Sep 1, 2017 - Dec 31, 2017 Collar 15,250 $ 3.00 $ 4.31 Apr 1, 2017 - Dec 31, 2017 Collar 110,000 $ 3.00 $ 4.30 Natural Gas - CIG Rocky Mountain Apr 1, 2017 - Apr 30, 2017 Collar 100,000 $ 2.80 $ 3.95 May 1, 2017 - Aug 31, 2017 Collar 110,000 $ 2.50 $ 3.06 Apr 1, 2017 - Dec 31, 2017 Collar 200,000 $ 2.50 $ 3.27 Apr 1, 2017 - Dec 31, 2017 Collar 100,000 $ 2.60 $ 3.20 Subsequent to March 31, 2017, the Company added the following positions: Settlement Period Derivative Instrument Average Volumes (MMBtu per month) Floor Price Ceiling Price Natural Gas - NYMEX Henry Hub May 1, 2017 - Dec 31, 2017 Collar 199,063 $ 3.00 $ 3.88 May 1, 2017 - Dec 31, 2017 Collar 199,063 $ 3.00 $ 3.91 |
Schedule of Fair Value of Derivatives | The following table provides a reconciliation between the net assets and liabilities reflected on the accompanying condensed consolidated balance sheets and the potential effect of master netting arrangements on the fair value of the Company’s derivative contracts (in thousands): As of March 31, 2017 Underlying Balance Sheet Location Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets and Liabilities Presented in the Balance Sheet Commodity derivative contracts Current assets $ 1,740 $ (1,118 ) $ 622 Commodity derivative contracts Noncurrent assets $ — $ — $ — Commodity derivative contracts Current liabilities $ 1,163 $ (1,118 ) $ 45 Commodity derivative contracts Noncurrent liabilities $ — $ — $ — As of December 31, 2016 Underlying Balance Sheet Location Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Balance Sheet Net Amounts of Assets and Liabilities Presented in the Balance Sheet Commodity derivative contracts Current assets $ 2,045 $ (1,748 ) $ 297 Commodity derivative contracts Noncurrent assets $ — $ — $ — Commodity derivative contracts Current liabilities $ 4,622 $ (1,748 ) $ 2,874 Commodity derivative contracts Noncurrent liabilities $ — $ — $ — |
Schedule of Loss Recognized in Statements of Operations | The amount of gain (loss) recognized in the condensed consolidated statements of operations related to derivative financial instruments was as follows (in thousands): Three Months Ended March 31, 2017 2016 Realized gain (loss) on commodity derivatives $ (119 ) $ 2,445 Unrealized gain (loss) on commodity derivatives 3,498 (765 ) Total gain $ 3,379 $ 1,680 |
Schedule of Hedge Realized Gains (Losses) | The following table summarizes derivative realized gains and losses during the periods presented (in thousands): Three Months Ended March 31, 2017 2016 Monthly settlement $ 225 $ 2,955 Previously incurred premiums attributable to settled commodity contracts (344 ) (510 ) Total realized (loss) gain $ (119 ) $ 2,445 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured on a Recurring Basis | The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 by level within the fair value hierarchy (in thousands): Fair Value Measurements at March 31, 2017 Level 1 Level 2 Level 3 Total Financial assets and liabilities: Commodity derivative asset $ — $ 622 $ — $ 622 Commodity derivative liability $ — $ 45 $ — $ 45 Fair Value Measurements at December 31, 2016 Level 1 Level 2 Level 3 Total Financial assets and liabilities: Commodity derivative asset $ — $ 297 $ — $ 297 Commodity derivative liability $ — $ 2,874 $ — $ 2,874 |
Interest Expense (Tables)
Interest Expense (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Interest and Debt Expense [Abstract] | |
Schedule of the Components of Interest Expense | The components of interest expense are (in thousands): Three Months Ended March 31, 2017 2016 Revolving bank credit facility $ 43 $ 141 Notes payable 1,800 — Amortization of issuance costs 500 295 Less, interest capitalized (2,343 ) (436 ) Interest expense, net $ — $ — |
Weighted-Average Shares Outst30
Weighted-Average Shares Outstanding (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table sets forth the Company's outstanding equity grants which have a dilutive effect on earnings per share: Three Months Ended March 31, 2017 2016 Weighted-average shares outstanding - basic 200,707,891 121,392,736 Potentially dilutive common shares from: Stock options 461,103 — Restricted stock units and stock bonus shares 140,257 — Performance-vested stock units 1 — — Weighted-average shares outstanding - diluted 201,309,251 121,392,736 1 The number of awards assumes that the associated vesting condition is met at the respective period end. The final number of shares of the Company’s common stock issued may vary depending on the performance multiplier, which ranges from zero to two , depending on the level of satisfaction of the vesting condition. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities outstanding for the periods presented were not included in the respective weighted-average shares outstanding-diluted calculation above as such securities had an anti-dilutive effect on earnings per share: Three Months Ended March 31, 2017 2016 Potentially dilutive common shares from: Stock options 4,722,500 5,545,500 Restricted stock units and stock bonus shares 605,252 1,136,401 Performance stock units 1 951,884 464,946 Total 6,279,636 7,146,847 1 The number of awards assumes that the associated vesting condition is met at the target amount. The final number of shares of the Company’s common stock issued may vary depending on the performance multiplier, which ranges from zero to two , depending on the level of satisfaction of the vesting condition. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock-based Compensation Expense Recognized | The amount of stock-based compensation was as follows (in thousands): Three Months Ended March 31, 2017 2016 Stock options $ 1,246 $ 1,410 Performance stock units 525 — Restricted stock units and stock bonus shares 1,346 1,212 Total stock-based compensation $ 3,117 $ 2,622 Less: stock-based compensation capitalized (442 ) (103 ) Total stock-based compensation expensed $ 2,675 $ 2,519 |
Schedule of Employee Stock Options Granted During the Period | During the periods presented, the Company granted the following stock options: Three Months Ended March 31, 2017 2016 Number of options to purchase common shares — 489,500 Weighted-average exercise price $ — $ 7.72 Term (in years) — 10 years Vesting Period (in years) — 3 - 5 years Fair Value (in thousands) $ — $ 1,729 |
Schedule of Assumptions Used In Valuing Stock Options | The assumptions used in valuing stock options granted during each of the periods presented were as follows: Three Months Ended March 31, 2017 2016 Expected term — 6.3 years Expected volatility — % 55 % Risk free rate — 1.50 - 1.75% Expected dividend yield — % — % |
Summary of Stock Option Activity Under Stock Option | The following table summarizes activity for stock options for the periods presented: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (thousands) Outstanding, December 31, 2016 6,001,500 $ 9.27 8.0 years $ 6,515 Granted — — Exercised (30,000 ) 3.79 140 Expired (30,000 ) 12.35 Forfeited (68,000 ) 11.78 Outstanding, March 31, 2017 5,873,500 $ 9.25 7.7 years $ 5,343 Outstanding, Exercisable at March 31, 2017 2,529,861 $ 8.42 6.8 years $ 3,783 |
Schedule of Issued and Outstanding Stock Options | The following table summarizes information about issued and outstanding stock options as of March 31, 2017 : Outstanding Options Exercisable Options Range of Exercise Prices Options Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price per Share Options Weighted-Average Exercise Price per Share Under $5.00 600,000 4.4 years $ 3.49 559,000 $ 3.47 $5.00 - $6.99 1,012,000 7.7 years 6.38 480,000 6.45 $7.00 - $10.99 1,594,500 8.2 years 9.34 484,661 9.48 $11.00 - $13.46 2,667,000 8.2 years 11.57 1,006,200 11.61 Total 5,873,500 7.7 years $ 9.25 2,529,861 $ 8.42 |
Schedule of Unrecognized Compensation Cost | The estimated unrecognized compensation cost from stock options not vested as of March 31, 2017 , which will be recognized ratably over the remaining vesting phase, is as follows: Unrecognized compensation (in thousands) $ 13,891 Remaining vesting phase 3.0 years |
Summary of Restricted Stock Awards | The following table summarizes activity for restricted stock units and stock bonus awards for the three months ended March 31, 2017 : Number of Shares Weighted-Average Grant-Date Fair Value Not vested, December 31, 2016 890,336 $ 9.55 Granted 531,454 8.61 Vested (180,927 ) 8.86 Forfeited (14,022 ) 10.59 Not vested, March 31, 2017 1,226,841 $ 9.22 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Unrecognized Compensation Cost | The estimated unrecognized compensation cost from restricted stock units and stock bonus awards not vested as of March 31, 2017 , which will be recognized ratably over the remaining vesting phase, is as follows: Unrecognized compensation (in thousands) $ 9,798 Remaining vesting phase 2.7 years |
Performance Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Assumptions Used In Valuing Stock Options | The assumptions used in valuing the PSUs granted were as follows: Three Months Ended March 31, 2017 2016 Weighted average expected term 2.9 years 2.8 years Weighted average expected volatility 59 % 58 % Weighted average risk free rate 1.34 % 0.87 % |
Schedule of Performance Share Units | A summary of the status and activity of PSUs is presented in the following table: Number of Units 1 Weighted-Average Grant-Date Fair Value Not vested, December 31, 2016 478,510 $ 8.09 Granted 473,374 10.79 Vested — — Forfeited — — Not vested, March 31, 2017 951,884 $ 9.44 1 The number of awards assumes that the associated vesting condition is met at the target amount. The final number of shares of the Company’s common stock issued may vary depending on the performance multiplier, which ranges from zero to two , depending on the level of satisfaction of the vesting condition. |
Other Commitments and Conting32
Other Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Fiscal Year Maturity Schedule of Contractual Obligations | Our commitments over the next five years, excluding the contingent commitment described below, are as follows: Year ending December 31, Oil (MBbls) Remainder of 2017 3,030 2018 4,255 2019 4,255 2020 3,700 2021 1,672 Thereafter — Total 16,912 |
Operating Leases of Lessee Disclosure | A schedule of the minimum lease payments under non-cancelable operating leases as of March 31, 2017 follows (in thousands): Year ending December 31, Rent Remainder of 2017 $ 377 2018 840 2019 859 2020 878 2021 875 Thereafter 477 Total $ 4,306 |
Supplemental Schedule of Info33
Supplemental Schedule of Information to the Condensed Consolidated Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Information to the Statements of Cash Flows | The following table supplements the cash flow information presented in the condensed consolidated financial statements for the periods presented (in thousands): Three Months Ended March 31, Supplemental cash flow information: 2017 2016 Interest paid $ 43 $ 146 Non-cash investing and financing activities: Accrued well costs as of period end $ 81,722 $ 15,324 Obligations incurred with development activities 882 — Obligations assumed with acquisitions 1,098 — Obligations discharged with asset retirements and divestitures (3,287 ) — |
Organization and Summary of S34
Organization and Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)segment$ / shares | Mar. 31, 2016 | Dec. 31, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of segments | segment | 1 | ||
Change in Accrual for Production Taxes [Member] | |||
Change in Accounting Estimate [Line Items] | |||
Decrease in production taxes accrual | $ 2 | ||
Impact of EPS,basic and diluted, based on change in accrual (in dollars per share) | $ / shares | $ 0.01 | ||
Customer Concentration Risk [Member] | Oil and Gas Revenues [Member] | Company A [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 42.00% | ||
Customer Concentration Risk [Member] | Oil and Gas Revenues [Member] | Company B [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 22.00% | 25.00% | |
Customer Concentration Risk [Member] | Oil and Gas Revenues [Member] | Company C [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 31.00% | ||
Customer Concentration Risk [Member] | Oil and Gas Revenues [Member] | Company D [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 12.00% | ||
Customer Concentration Risk [Member] | Oil and Gas Revenues [Member] | Company E [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 23.00% | ||
Customer Concentration Risk [Member] | Accounts receivable [Member] | Company A [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 24.00% | 43.00% | |
Customer Concentration Risk [Member] | Accounts receivable [Member] | Company B [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 10.00% | ||
Customer Concentration Risk [Member] | Accounts receivable [Member] | Company C [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 18.00% | 23.00% | |
Customer Concentration Risk [Member] | Accounts receivable [Member] | Company D [Member] | |||
Concentration Risk [Line Items] | |||
Risk percentage | 12.00% | ||
Accounting Standard Update 2016-09 [Member] | Retained Earnings [Member] | |||
Change in Accounting Estimate [Line Items] | |||
Cumulative effect of new accounting principle | $ 0.1 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Full cost ceiling impairment | $ 0 | $ 45,621 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Capitalized Costs) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Oil and gas properties, full cost method: | ||
Subtotal, unproved properties and land | $ 355,267 | $ 398,547 |
Costs of wells in progress | 82,664 | 81,780 |
Costs of proved properties: | ||
Producing and non-producing | 1,061,023 | 969,239 |
Less, accumulated depletion and full cost ceiling impairments | (558,694) | (545,157) |
Subtotal, proved properties, net | 502,329 | 424,082 |
Costs of other property and equipment: | ||
Other property and equipment | 6,939 | 5,063 |
Less, accumulated depreciation | (826) | (736) |
Other property and equipment, net | 6,113 | 4,327 |
Total property and equipment, net | 946,373 | 908,736 |
Lease acquisition, land, and other costs [Member] | ||
Oil and gas properties, full cost method: | ||
Subtotal, unproved properties and land | 349,036 | 392,561 |
Land [Member] | Wells in progress [Member] | ||
Oil and gas properties, full cost method: | ||
Subtotal, unproved properties and land | $ 6,231 | $ 5,986 |
Property and Equipment (Sched37
Property and Equipment (Schedule of Capitalized Overhead) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Capitalized overhead | $ 2,680 | $ 649 |
Acquisitions and Divestitures38
Acquisitions and Divestitures (Narrative) (Details) $ in Thousands | Jun. 14, 2016USD ($)abbl / d | Mar. 31, 2017USD ($)a | May 31, 2016USD ($)aBoe | Apr. 30, 2016USD ($)aBoewell | Feb. 29, 2016USD ($) | Mar. 31, 2017USD ($)aBoe | Oct. 31, 2016USD ($)acquisition | Mar. 31, 2016USD ($)Boe | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||
Production of BOE (in Boe's) | Boe | 1,597,000 | 1,047,000 | |||||||
Cash held in escrow and other deposits | $ 18,219 | $ 18,219 | $ 18,248 | ||||||
Cash paid to acquire business | 25,082 | $ 10,645 | |||||||
Proceeds from sales of oil and gas properties | $ 70,689 | $ 0 | |||||||
Disposed of by Sale, Not Discontinued Operations [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Mineral acres, net (in acres) | a | 10,600 | 10,600 | |||||||
Production of BOE (in Boe's) | Boe | 700 | ||||||||
Proceeds from sales of oil and gas properties | $ 76,800 | ||||||||
Adams County, Colorado [Member] | Disposed of by Sale, Not Discontinued Operations [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Mineral acres, net (in acres) | a | 3,700 | ||||||||
Production of BOE (in Boe's) | Boe | 200 | ||||||||
Cash held in escrow and other deposits | $ 500 | ||||||||
Number of vertical wells | well | 107 | ||||||||
Proceeds from sales of oil and gas properties | $ 24,700 | ||||||||
GC Agreement [Member] | D-J Basin [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price | $ 486,414 | ||||||||
Mineral acres, net (in acres) | a | 33,100 | ||||||||
Cash held in escrow and other deposits | $ 18,200 | ||||||||
Cash paid to acquire business | $ 485,141 | ||||||||
Production of barrels of oil equivalent per day | bbl / d | 800 | ||||||||
Transaction costs | $ 500 | ||||||||
Pro forma revenue since acquisition date | 2,200 | ||||||||
Pro forma net income since acquisition date | $ 1,800 | ||||||||
Proved oil and gas properties | 132,903 | ||||||||
Unproved oil and gas properties | $ 353,511 | ||||||||
GC Agreement [Member] | Wattenberg Field [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Total purchase price | $ 505,000 | ||||||||
Area acquired gross (in acres) | a | 72,000 | ||||||||
Mineral acres, net (in acres) | a | 33,100 | ||||||||
Production of BOE (in Boe's) | Boe | 2,400 | ||||||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of acquisitions | acquisition | 4 | ||||||||
Total purchase price | $ 25,700 | $ 10,000 | $ 13,500 | ||||||
Proved oil and gas properties | 8,600 | ||||||||
Unproved oil and gas properties | $ 1,400 |
Acquisitions and Divestitures39
Acquisitions and Divestitures (Schedule of Fair Value of Acquisition) (Details) - USD ($) $ in Thousands | Jun. 14, 2016 | Mar. 31, 2017 | Mar. 31, 2016 |
Preliminary Purchase Price | |||
Cash | $ 25,082 | $ 10,645 | |
GC Agreement [Member] | D-J Basin [Member] | |||
Preliminary Purchase Price | |||
Cash | $ 485,141 | ||
Net liabilities assumed, including asset retirement obligations | 1,273 | ||
Total consideration given | 486,414 | ||
Preliminary Allocation of Purchase Price | |||
Proved oil and gas properties | 132,903 | ||
Unproved oil and gas properties | 353,511 | ||
Total fair value of assets acquired | $ 486,414 | ||
Net cash flows, discount rate (percent) | 11.50% |
Acquisitions and Divestitures40
Acquisitions and Divestitures (Schedule of Pro Forma Results) (Details) - GC Agreement [Member] - D-J Basin [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Oil and gas revenues | $ | $ 20,117 |
Net loss | $ | $ (53,013) |
Net loss per common share | |
Basic (in dollars per share) | $ / shares | $ (0.27) |
Diluted (in dollars per share) | $ / shares | $ (0.27) |
Depletion, depreciation, and 41
Depletion, depreciation, and accretion ("DDA") (Details) Boe in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)Boe$ / Boe | Mar. 31, 2016USD ($)Boe$ / Boe | |
Other Costs and Disclosures [Abstract] | ||
Depletion of oil and gas properties | $ 12,703 | $ 11,743 |
Depreciation and accretion | 526 | 349 |
Total DDA Expense | $ 13,229 | $ 12,092 |
Production of BOE (in Boe's) | Boe | 1,597 | 1,047 |
Percentage of total reserves | 1.10% | 1.50% |
DDA expense per BOE (in dollars per BOE) | $ / Boe | 8.28 | 11.55 |
Asset Retirement Obligations (S
Asset Retirement Obligations (Schedule of Asset Retirement Obligations) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
Beginning asset retirement obligation | $ 16,458 |
Obligations incurred with development activities | 882 |
Obligations assumed with acquisitions | 1,098 |
Accretion expense | 312 |
Obligations discharged with sales, asset retirements, and settlements | (3,287) |
Revisions in previous estimates | 0 |
Ending asset retirement obligation | $ 15,463 |
Revolving Credit Facility (Deta
Revolving Credit Facility (Details) | 3 Months Ended | ||||
Mar. 31, 2017USD ($) | Mar. 31, 2016 | May 04, 2017USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | |||||
Amount outstanding | $ 0 | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Total borrowing commitment | 500,000,000 | ||||
Borrowing base | 160,000,000 | ||||
Outstanding principal balance | $ 0 | $ 0 | |||
Average interest rate | 2.80% | 2.50% | |||
Term of covenants | 5 years | ||||
Maximum funded debt to EBITDAX | 4 | ||||
Current ratio covenant | 1 | ||||
Line of Credit [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing base | $ 210,000,000 | ||||
Outstanding principal balance | $ 25,000,000 | ||||
Line of Credit [Member] | Letter of Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Amount outstanding | $ 500,000 | ||||
Maximum [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing base | $ 225,000,000 |
Notes Payable (Details)
Notes Payable (Details) - Senior Notes [Member] - 9% Senior Notes Due 2021 [Member] | Jun. 14, 2016USD ($) |
Debt Instrument [Line Items] | |
Debt instrument principal amount | $ 80,000,000 |
Debt instrument stated interest rate (percent) | 9.00% |
Proceeds from sale of Senior Notes | $ 75,200,000 |
Debt issuance costs | $ 4,800,000 |
Effective interest rate (percent) | 10.60% |
2018 [Member] | |
Debt Instrument [Line Items] | |
Redemption price (percent) | 104.50% |
2019 [Member] | |
Debt Instrument [Line Items] | |
Redemption price (percent) | 102.25% |
2020 [Member] | |
Debt Instrument [Line Items] | |
Redemption price (percent) | 100.00% |
Prior to December 14, 2018 [Member] | |
Debt Instrument [Line Items] | |
Redemption price (percent) | 109.00% |
Amount of principal that can be redeemed (percent) | 35.00% |
Commodity Derivative Instrume45
Commodity Derivative Instruments (Schedule of Commodity Derivative Contracts) (Details) | 3 Months Ended | |
Mar. 31, 2017MMBTU / mobbl / mo$ / bbl$ / MMBTU | May 04, 2017MMBTU / mo$ / MMBTU | |
Crude Oil [Member] | Purchased Put [Member] | Apr 1, 2017 - Apr 30, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volume (BBl's per month) | bbl / mo | 20,000 | |
Floor Price (in USD) | $ / bbl | 50 | |
Ceiling Price (in USD) | $ / bbl | 0 | |
Crude Oil [Member] | Purchased Put [Member] | May 1, 2017 - Aug 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volume (BBl's per month) | bbl / mo | 20,000 | |
Floor Price (in USD) | $ / bbl | 55 | |
Ceiling Price (in USD) | $ / bbl | 0 | |
Crude Oil [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volume (BBl's per month) | bbl / mo | 30,556 | |
Floor Price (in USD) | $ / bbl | 40 | |
Ceiling Price (in USD) | $ / bbl | 60 | |
Crude Oil [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volume (BBl's per month) | bbl / mo | 20,000 | |
Floor Price (in USD) | $ / bbl | 45 | |
Ceiling Price (in USD) | $ / bbl | 70 | |
Crude Oil [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volume (BBl's per month) | bbl / mo | 30,556 | |
Floor Price (in USD) | $ / bbl | 40 | |
Ceiling Price (in USD) | $ / bbl | 65 | |
Crude Oil [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volume (BBl's per month) | bbl / mo | 30,556 | |
Floor Price (in USD) | $ / bbl | 40 | |
Ceiling Price (in USD) | $ / bbl | 65 | |
Crude Oil [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volume (BBl's per month) | bbl / mo | 15,278 | |
Floor Price (in USD) | $ / bbl | 45 | |
Ceiling Price (in USD) | $ / bbl | 65 | |
Crude Oil [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volume (BBl's per month) | bbl / mo | 15,278 | |
Floor Price (in USD) | $ / bbl | 45 | |
Ceiling Price (in USD) | $ / bbl | 65.10 | |
Natural Gas [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 100,000 | |
Floor Price (in USD) | 2.75 | |
Ceiling Price (in USD) | 4 | |
Natural Gas [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 152,778 | |
Floor Price (in USD) | 2.75 | |
Ceiling Price (in USD) | 3.90 | |
Natural Gas [Member] | Collar [Member] | Sep 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 91,500 | |
Floor Price (in USD) | 2.75 | |
Ceiling Price (in USD) | 4.10 | |
Natural Gas [Member] | Collar [Member] | Sep 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 15,250 | |
Floor Price (in USD) | 3 | |
Ceiling Price (in USD) | 4.31 | |
Natural Gas [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 110,000 | |
Floor Price (in USD) | 3 | |
Ceiling Price (in USD) | 4.30 | |
Natural Gas [Member] | Collar [Member] | Apr 1, 2017 - Apr 30, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 100,000 | |
Floor Price (in USD) | 2.80 | |
Ceiling Price (in USD) | 3.95 | |
Natural Gas [Member] | Collar [Member] | May 1, 2017 - Aug 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 110,000 | |
Floor Price (in USD) | 2.50 | |
Ceiling Price (in USD) | 3.06 | |
Natural Gas [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 200,000 | |
Floor Price (in USD) | 2.50 | |
Ceiling Price (in USD) | 3.27 | |
Natural Gas [Member] | Collar [Member] | Apr 1, 2017 - Dec 31, 2017 [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 100,000 | |
Floor Price (in USD) | 2.60 | |
Ceiling Price (in USD) | 3.20 | |
Natural Gas [Member] | Collar [Member] | May 1, 2017 - Dec 31, 2017 [Member] | Subsequent Event [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 199,063 | |
Floor Price (in USD) | 3 | |
Ceiling Price (in USD) | 3.88 | |
Natural Gas [Member] | Collar [Member] | May 1, 2017 - Dec 31, 2017 [Member] | Subsequent Event [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average Volumes (MMBtu per month) | MMBTU / mo | 199,063 | |
Floor Price (in USD) | 3 | |
Ceiling Price (in USD) | 3.91 |
Commodity Derivative Instrume46
Commodity Derivative Instruments (Schedule of Fair Value of Derivatives) (Details) - Commodity Derivative Contracts [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Gross Amount Recognized | $ 1,740 | $ 2,045 |
Derivative asset, Gross Amounts Offset in the Balance Sheet | (1,118) | (1,748) |
Derivative asset, Net | 622 | 297 |
Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Gross Amount Recognized | 0 | 0 |
Derivative asset, Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Derivative asset, Net | 0 | 0 |
Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Gross Amount Recognized | 1,163 | 4,622 |
Derivative liability, Gross Amounts Offset in the Balance Sheet | (1,118) | (1,748) |
Derivative liability, Net | 45 | 2,874 |
Noncurrent Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, Gross Amount Recognized | 0 | 0 |
Derivative liability, Gross Amounts Offset in the Balance Sheet | 0 | 0 |
Derivative liability, Net | $ 0 | $ 0 |
Commodity Derivative Instrume47
Commodity Derivative Instruments (Schedule of Gain (Loss) Recognized in Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Realized gain (loss) on commodity derivatives | $ (119) | $ 2,445 |
Unrealized gain (loss) on commodity derivatives | 3,498 | (765) |
Total gain | $ 3,379 | $ 1,680 |
Commodity Derivative Instrume48
Commodity Derivative Instruments (Derivative Gains (Losses) Realized) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Monthly settlement | $ 225 | $ 2,955 |
Previously incurred premiums attributable to settled commodity contracts | (344) | (510) |
Total realized (loss) gain | $ (119) | $ 2,445 |
Commodity Derivative Instrume49
Commodity Derivative Instruments (Narrative) (Details) - counterparty | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of counterparties | 5 | |
Credit Facility Syndicate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of counterparties | 2 | 2 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Fair value of notes payable | $ 85,900 | |
Recurring [Member] | ||
Financial Assets: | ||
Commodity derivative asset | 622 | $ 297 |
Financial Liabilities: | ||
Commodity derivative liability | 45 | 2,874 |
Recurring [Member] | Level 1 [Member] | ||
Financial Assets: | ||
Commodity derivative asset | 0 | 0 |
Financial Liabilities: | ||
Commodity derivative liability | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Financial Assets: | ||
Commodity derivative asset | 622 | 297 |
Financial Liabilities: | ||
Commodity derivative liability | 45 | 2,874 |
Recurring [Member] | Level 3 [Member] | ||
Financial Assets: | ||
Commodity derivative asset | 0 | 0 |
Financial Liabilities: | ||
Commodity derivative liability | $ 0 | $ 0 |
Interest Expense (Details)
Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Debt Instrument [Line Items] | ||
Amortization of issuance costs | $ 500 | $ 295 |
Less, interest capitalized | (2,343) | (436) |
Interest expense, net | 0 | 0 |
Notes payable [Member] | ||
Debt Instrument [Line Items] | ||
Interest from debt | 1,800 | 0 |
Revolving bank credit facility [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Interest from debt | $ 43 | $ 141 |
Weighted-Average Shares Outst52
Weighted-Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-average shares outstanding - basic | 200,707,891 | 121,392,736 |
Potentially dilutive common shares from: | ||
Stock options | 461,103 | 0 |
Restricted stock units and stock bonus shares | 140,257 | 0 |
Performance-vested stock units | 0 | 0 |
Weighted-average shares outstanding - diluted | 201,309,251 | 121,392,736 |
Total potentially dilutive common shares (in shares) | 6,279,636 | 7,146,847 |
Performance Stock Units [Member] | Minimum [Member] | ||
Potentially dilutive common shares from: | ||
Award vesting rights (percent) | 0.00% | |
Performance Stock Units [Member] | Maximum [Member] | ||
Potentially dilutive common shares from: | ||
Award vesting rights (percent) | 200.00% | |
Stock Options [Member] | ||
Potentially dilutive common shares from: | ||
Total potentially dilutive common shares (in shares) | 4,722,500 | 5,545,500 |
Restricted Stock Units and Stock Bonus Shares [Member] | ||
Potentially dilutive common shares from: | ||
Total potentially dilutive common shares (in shares) | 605,252 | 1,136,401 |
Performance Stock Units [Member] | ||
Potentially dilutive common shares from: | ||
Total potentially dilutive common shares (in shares) | 951,884 | 464,946 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2015plan | Mar. 31, 2017USD ($)shares | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of plans | plan | 3 | ||
Vesting period | 0 years | ||
Unrecognized compensation, net of estimated forfeitures | $ | $ 13,891 | ||
Remaining vesting phase | 2 years 11 months 19 days | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation, net of estimated forfeitures | $ | $ 9,798 | ||
Remaining vesting phase | 2 years 8 months 23 days | ||
Granted (shares) | shares | 531,454 | ||
Restricted Stock [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Restricted Stock [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 5 years | ||
Performance Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Unrecognized compensation, net of estimated forfeitures | $ | $ 7,400 | ||
Granted (shares) | shares | 473,374 | ||
Grants in period fair value | $ | $ 5,100 | ||
Performance Stock Units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights (percent) | 0.00% | ||
Performance Stock Units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights (percent) | 200.00% | ||
2015 Equity Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (shares) | shares | 4,500,000 | ||
Number of shares available for grant (shares) | shares | 1,165,432 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 3,117 | $ 2,622 |
Less: stock-based compensation capitalized | (442) | (103) |
Total stock-based compensation expensed | 2,675 | 2,519 |
Stock options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 1,246 | 1,410 |
Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 525 | 0 |
Restricted Stock Units and Stock Bonus Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 1,346 | $ 1,212 |
Stock-Based Compensation (Non-Q
Stock-Based Compensation (Non-Qualified Stock Options Granted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of options to purchase common shares (shares) | 0 | 489,500 |
Weighted-average exercise price (in dollars per share) | $ 0 | $ 7.72 |
Term | 0 years | 10 years |
Vesting Period | 0 years | |
Fair Value | $ 0 | $ 1,729 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Period | 3 years | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Period | 5 years |
Stock-Based Compensation (Sto56
Stock-Based Compensation (Stock Option Assumptions) (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 0 years | 6 years 3 months 18 days |
Expected volatility (percent) | 0.00% | 55.00% |
Expected dividend yield (percent) | 0.00% | 0.00% |
Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 years 10 months 7 days | 2 years 10 months 6 days |
Expected volatility (percent) | 59.00% | 58.00% |
Risk-free rate (percent) | 1.34% | 0.87% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free rate (percent) | 1.50% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free rate (percent) | 1.75% |
Stock-Based Compensation (Sto57
Stock-Based Compensation (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Summary of activity for stock options (in shares): | |||
Outstanding, Beginning balance (shares) | 6,001,500 | ||
Granted (shares) | 0 | 489,500 | |
Exercised (shares) | (30,000) | ||
Expired (shares) | (30,000) | ||
Forfeited (shares) | (68,000) | ||
Outstanding, Ending balance (shares) | 5,873,500 | 6,001,500 | |
Weighted Average Exercise Price (in dollars per share): | |||
Beginning balance, Weighted average exercise price (in dollars per share) | $ 9.27 | ||
Granted, weighted average exercise price (in dollars per share) | 0 | $ 7.72 | |
Exercised, weighted average exercise price (in dollars per share) | 3.79 | ||
Expired, weighted average exercise price (in dollars per share) | 12.35 | ||
Forfeited, weighted average exercise price (in dollars per share) | 11.78 | ||
Ending balance, Weighted average exercise price (in dollars per share) | $ 9.25 | $ 9.27 | |
Weighted-Average Remaining Contractual Life | |||
Weighted average remaining contractual life | 7 years 8 months 12 days | 8 years | |
Aggregate Intrinsic Value: | |||
Beginning balance, aggregate intrinsic value | $ 6,515 | ||
Exercised | 140 | ||
Ending balance, aggregate intrinsic value | $ 5,343 | $ 6,515 | |
Outstanding, Exercisable at end of period (shares) | 2,529,861 | 2,529,861 | |
Outstanding, exercisable, weighted average exercise price (in dollars per share) | $ 8.42 | $ 8.42 | |
Outstanding, Exercisable Weighted-Average Remaining Contractual Life | 6 years 9 months 18 days | ||
Outstanding, Exercisable at end of period, Aggregate Intrinsic Value | $ 3,783 |
Stock-Based Compensation (Issue
Stock-Based Compensation (Issued and Outstanding Option Details) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding options (in shares) | 5,873,500 | |
Weighted average remaining contractual life | 7 years 8 months 12 days | 8 years |
Weighted average exercise price (in dollars per share) | $ 9.25 | $ 9.27 |
Exercisable options (in shares) | 2,529,861 | 2,529,861 |
Exercisable options, weighted average exercise price (in dollars per share) | $ 8.42 | $ 8.42 |
Under $5.00 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range maximum (in dollars per share) | $ 5 | |
Outstanding options (in shares) | 600,000 | |
Weighted average remaining contractual life | 4 years 4 months 21 days | |
Weighted average exercise price (in dollars per share) | $ 3.49 | |
Exercisable options (in shares) | 559,000 | |
Exercisable options, weighted average exercise price (in dollars per share) | $ 3.47 | |
$5.00 - $6.99 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range minimum (in dollars per share) | 5 | |
Exercise price range maximum (in dollars per share) | $ 6.99 | |
Outstanding options (in shares) | 1,012,000 | |
Weighted average remaining contractual life | 7 years 8 months 1 day | |
Weighted average exercise price (in dollars per share) | $ 6.38 | |
Exercisable options (in shares) | 480,000 | |
Exercisable options, weighted average exercise price (in dollars per share) | $ 6.45 | |
$7.00 - $10.99 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range minimum (in dollars per share) | 7 | |
Exercise price range maximum (in dollars per share) | $ 10.99 | |
Outstanding options (in shares) | 1,594,500 | |
Weighted average remaining contractual life | 8 years 2 months 9 days | |
Weighted average exercise price (in dollars per share) | $ 9.34 | |
Exercisable options (in shares) | 484,661 | |
Exercisable options, weighted average exercise price (in dollars per share) | $ 9.48 | |
$11.00 - $13.46 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range minimum (in dollars per share) | 11 | |
Exercise price range maximum (in dollars per share) | $ 13.46 | |
Outstanding options (in shares) | 2,667,000 | |
Weighted average remaining contractual life | 8 years 2 months 1 day | |
Weighted average exercise price (in dollars per share) | $ 11.57 | |
Exercisable options (in shares) | 1,006,200 | |
Exercisable options, weighted average exercise price (in dollars per share) | $ 11.61 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock and Performance Stock Unit Activity) (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Restricted Stock [Member] | |
Number of Shares | |
Nonvested, Beginning balance (shares) | shares | 890,336 |
Granted (shares) | shares | 531,454 |
Vested (shares) | shares | (180,927) |
Forfeited (shares) | shares | (14,022) |
Nonvested, Ending balance (shares) | shares | 1,226,841 |
Weighted Average Grant Date Fair Value (in dollars per share) | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 9.55 |
Granted (in dollars per share) | $ / shares | 8.61 |
Vested (in dollars per share) | $ / shares | 8.86 |
Forfeited (in dollars per share) | $ / shares | 10.59 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 9.22 |
Performance Stock Units [Member] | |
Number of Shares | |
Nonvested, Beginning balance (shares) | shares | 478,510 |
Granted (shares) | shares | 473,374 |
Vested (shares) | shares | 0 |
Forfeited (shares) | shares | 0 |
Nonvested, Ending balance (shares) | shares | 951,884 |
Weighted Average Grant Date Fair Value (in dollars per share) | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 8.09 |
Granted (in dollars per share) | $ / shares | 10.79 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 9.44 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective rate expressed as a percentage | 0.00% | 0.00% |
Other Commitments and Conting61
Other Commitments and Contingencies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Jul. 31, 2016USD ($)facility | Mar. 31, 2017USD ($)MMcfe | Mar. 31, 2016USD ($) | Dec. 31, 2015counterparty | Dec. 31, 2014counterparty | |
Long-term Purchase Commitment [Line Items] | ||||||
Transport agreement number of counterparties | counterparty | 2 | 3 | ||||
Unused commitment charge | $ 669,000 | $ 68,000 | ||||
Processing plant capacity (in MMcfe) | MMcfe | 200 | |||||
Share of the commitment (in MMcfe) | MMcfe | 46.4 | |||||
Commitment term | 7 years | |||||
Rent expense | $ 400,000 | $ 100,000 | ||||
CHDPHE [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Number of facilities that allegedly were in violation | facility | 5 | |||||
Greeley [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Monthly rent expense | $ 7,500 | |||||
Denver [Member] | ||||||
Long-term Purchase Commitment [Line Items] | ||||||
Lease term for new office | 65 months | |||||
Monthly rent expense | $ 62,000 |
Other Commitments and Conting62
Other Commitments and Contingencies (Volume Commitments) (Details) bbl / yr in Thousands | Mar. 31, 2017bbl / yr |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2017 | 3,030 |
2,018 | 4,255 |
2,019 | 4,255 |
2,020 | 3,700 |
2,021 | 1,672 |
Thereafter | 0 |
Total | 16,912 |
Other Commitments and Conting63
Other Commitments and Contingencies (Minimum Lease Payments Under Non-Cancelable Operating Leases) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2017 | $ 377 |
2,018 | 840 |
2,019 | 859 |
2,020 | 878 |
2,021 | 875 |
Thereafter | 477 |
Total | $ 4,306 |
Supplemental Schedule of Info64
Supplemental Schedule of Information to the Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Supplemental cash flow information: | ||
Interest paid | $ 43 | $ 146 |
Non-cash investing and financing activities: | ||
Accrued well costs as of period end | 81,722 | 15,324 |
Obligations incurred with development activities | 882 | 0 |
Obligations assumed with acquisitions | 1,098 | 0 |
Obligations discharged with asset retirements and divestitures | $ (3,287) | $ 0 |