Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 6-May-14 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'Gastar Exploration Inc. | ' |
Entity Central Index Key | '0001431372 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 61,818,331 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $26,913 | $32,393 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $507, respectively | 18,329 | 21,656 |
Commodity derivative contracts | 266 | 0 |
Prepaid expenses | 1,064 | 1,145 |
Total current assets | 46,572 | 55,194 |
Oil and natural gas properties, full cost method of accounting: | ' | ' |
Unproved properties, excluded from amortization | 99,351 | 96,220 |
Proved properties | 967,882 | 935,773 |
Total oil and natural gas properties | 1,067,233 | 1,031,993 |
Furniture and equipment | 2,839 | 2,691 |
Total property, plant and equipment | 1,070,072 | 1,034,684 |
Accumulated depreciation, depletion and amortization | -529,553 | -517,171 |
Total property, plant and equipment, net | 540,519 | 517,513 |
OTHER ASSETS: | ' | ' |
Commodity derivative contracts | 6,396 | 7,545 |
Deferred charges, net | 2,986 | 2,950 |
Advances to operators and other assets | 2,244 | 6,733 |
Total other assets | 11,626 | 17,228 |
TOTAL ASSETS | 598,717 | 589,935 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 11,520 | 11,046 |
Revenue payable | 14,536 | 12,514 |
Accrued interest | 10,512 | 3,504 |
Accrued drilling and operating costs | 5,671 | 8,756 |
Advances from non-operators | 14,189 | 9,259 |
Commodity derivative contracts | 5,876 | 3,403 |
Current commodity derivative premium put payable | 728 | 145 |
Asset retirement obligation | 338 | 633 |
Other accrued liabilities | 2,678 | 4,844 |
Total current liabilities | 66,048 | 54,104 |
LONG-TERM LIABILITIES: | ' | ' |
Long-term debt | 313,550 | 312,994 |
Commodity derivative contracts | 166 | 378 |
Commodity derivative premium payable | 6,417 | 7,000 |
Asset retirement obligation | 5,618 | 5,430 |
Total long-term liabilities | 325,751 | 325,802 |
Commitments and contingencies (Note 12) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Common stock | 61 | 61 |
Additional paid-in capital | 463,584 | 464,730 |
Accumulated deficit | -256,788 | -254,823 |
Total stockholders' equity | 206,918 | 210,029 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 598,717 | 589,935 |
Series A Preferred Stock | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock | 40 | 40 |
Series B Preferred Stock | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock | $21 | $21 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | ||
Accounts receivable, net of allowance for doubtful accounts | $0 | $507 | ' | ' | ' | ' |
Preferred stock, shares authorized | 40,000,000,000 | 40,000,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, par value | ' | ' | $0.01 | $0.01 | $0.01 | $0.01 |
Preferred stock, shares issued | ' | ' | 3,995,286 | 3,958,160 | 2,140,000 | 2,140,000 |
Preferred stock, shares outstanding | ' | ' | 3,995,286 | 3,958,160 | 2,140,000 | 2,140,000 |
Liquidation Preference | $25 | ' | $25 | $25 | $25 | $25 |
Common stock, par value | $0.00 | $0.00 | ' | ' | ' | ' |
Common stock, shares authorized | 275,000,000 | 275,000,000 | ' | ' | ' | ' |
Common stock, shares issued | 61,818,331 | 61,211,658 | ' | ' | ' | ' |
Common stock, shares outstanding | 61,818,331 | 61,211,658 | ' | ' | ' | ' |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES: | ' | ' |
Oil and condensate | $16,778 | $5,285 |
Natural gas | 15,419 | 7,601 |
NGLs | 6,644 | 2,380 |
Total oil, condensate, natural gas and NGLs revenues | 38,841 | 15,266 |
Loss on commodity derivatives contracts | -6,514 | -4,002 |
Total revenues | 32,327 | 11,264 |
EXPENSES: | ' | ' |
Production taxes | 1,894 | 643 |
Lease operating expenses | 4,044 | 1,837 |
Transportation, treating and gathering | 625 | 1,164 |
Depreciation, depletion and amortization | 12,382 | 5,365 |
Accretion of asset retirement obligation | 122 | 102 |
General and administrative expense | 4,763 | 3,002 |
Litigation settlement expense | 0 | 1,000 |
Total expenses | 23,830 | 13,113 |
INCOME (LOSS) FROM OPERATIONS | 8,497 | -1,849 |
OTHER INCOME (EXPENSE): | ' | ' |
Interest expense | -6,891 | -609 |
Investment income and other | 7 | 3 |
Foreign transaction loss | -2 | -1 |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 1,611 | -2,456 |
Provision for income taxes | 0 | 0 |
NET INCOME (LOSS) | 1,611 | -2,456 |
Dividends on preferred stock | -3,576 | -2,130 |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | ($1,965) | ($4,586) |
NET LOSS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO COMMON STOCKHOLDERS: | ' | ' |
Basic (in dollars per share) | ($0.03) | ($0.07) |
Diluted (in dollars per share) | ($0.03) | ($0.07) |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: | ' | ' |
Basic (shares) | 58,204,532 | 63,864,527 |
Diluted (shares) | 58,204,532 | 63,864,527 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ||
Net income (loss) | $1,611 | ($2,456) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ||
Depreciation, depletion and amortization | 12,382 | 5,365 | ||
Stock-based compensation | 1,533 | 823 | ||
Total loss on commodity derivatives contracts | 6,514 | 4,002 | ||
Cash settlements of matured commodity derivatives contracts, net | -3,015 | 5,760 | ||
Cash premiums paid for commodity derivatives contracts | -71 | -27 | ||
Amortization of deferred financing costs | 733 | [1] | 78 | [1] |
Accretion of asset retirement obligation | -122 | -102 | ||
Settlement of asset retirement obligation | -257 | 0 | ||
Changes in operating assets and liabilities: | ' | ' | ||
Accounts receivable | -750 | 197 | ||
Prepaid expenses | 81 | 82 | ||
Accounts payable and accrued liabilities | 4,169 | -2,997 | ||
Net cash provided by operating activities | 23,052 | 10,929 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ||
Development and purchase of oil and natural gas properties | -25,812 | -33,829 | ||
Advances to operators | -5,001 | -2,713 | ||
Acquisition of oil and natural gas properties - refund (expenditure) | 4,209 | -7,425 | ||
Payment related to sale of oil and natural gas properties | -341 | 0 | ||
Proceeds from non-operators | 4,930 | 16,090 | ||
Purchase of furniture and equipment | -148 | -19 | ||
Net cash used in investing activities | -22,163 | -27,896 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ||
Proceeds from revolving credit facility | 0 | 19,000 | ||
Repayment of revolving credit facility | 0 | -2,000 | ||
Proceeds from issuance of preferred stock, net of issuance costs | 886 | 0 | ||
Dividends on preferred stock | -3,576 | -1,420 | ||
Deferred financing charges | -135 | -143 | ||
Tax withholding related to restricted stock and PBU vestings | -3,544 | -236 | ||
Net cash (used in) provided by financing activities | -6,369 | 15,201 | ||
NET DECREASE IN CASH AND CASH EQUIVALENTS | -5,480 | -1,766 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 32,393 | 8,901 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $26,913 | $7,135 | ||
[1] | The three months ended MarchB 31, 2014 includes $556,000 of debt discount accretion related to the Notes. |
Description_Of_Business
Description Of Business | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of business | ' |
Description of Business | |
Gastar Exploration Inc. is an independent energy company engaged in the exploration, development and production of oil, condensate, natural gas and NGLs in the U.S. Gastar Exploration Inc.’s principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. Gastar Exploration Inc. is currently pursuing development within the primarily oil-bearing reservoirs of the Hunton Limestone horizontal oil play in Oklahoma and the development of liquids-rich natural gas in the Marcellus Shale play and dry gas in the Utica Shale play in West Virginia. | |
On November 14, 2013, Gastar Exploration Ltd., an Alberta, Canada corporation, changed its jurisdiction of incorporation to the State of Delaware and changed its name to “Gastar Exploration, Inc.” At December 31, 2013, Gastar Exploration, Inc. was a holding company and substantially all of its operations were conducted through, and substantially all of its assets were held by, its primary operating subsidiary, Gastar Exploration USA, Inc. and its wholly-owned subsidiaries. Subsequently, on January 31, 2014, Gastar Exploration, Inc. merged with and into Gastar Exploration USA, Inc. as part of a reorganization to eliminate the holding company corporate structure. Pursuant to the merger agreement, shares of Gastar Exploration, Inc.'s common stock were converted into an equal number of shares of common stock of Gastar USA and Gastar USA changed its name to “Gastar Exploration Inc.” Gastar Exploration Inc., together with its subsidiaries, owns and will continue to conduct business in substantially the same manner as was being conducted by Gastar Exploration, Inc. and its subsidiaries prior to the merger. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Summary Of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
The accounting policies followed by the Company are set forth in the notes to the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”) filed with the SEC. Please refer to the notes to the financial statements included in the 2013 Form 10-K for additional details of the Company’s financial condition, results of operations and cash flows. No material item included in those notes has changed except as a result of normal transactions in the interim or as disclosed within this report. | |
These financial statements are a combined presentation of the condensed consolidated financial statements of the Company. All prior year balances presented are those of Gastar Exploration, Inc. | |
The unaudited interim condensed consolidated financial statements of the Company included herein are stated in U.S. dollars and were prepared from the records of the Company by management in accordance with U.S. GAAP applicable to interim financial statements and reflect all normal and recurring adjustments, which are, in the opinion of management, necessary to provide a fair presentation of the results of operations and financial position for the interim periods. Such financial statements conform to the presentation reflected in the 2013 Form 10-K. The current interim period reported herein should be read in conjunction with the financial statements and accompanying notes, including Item 8. “Financial Statements and Supplementary Data, Note 2 – Summary of Significant Accounting Policies,” included in the 2013 Form 10-K. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates with regard to these financial statements include the estimate of proved oil and natural gas reserve quantities and the related present value of estimated future net cash flows. | |
The unaudited condensed consolidated financial statements of the Company include the consolidated accounts of all of its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Certain reclassifications of prior year balances have been made to conform to the current year presentation; these reclassifications have no impact on net income (loss). | |
The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued and has disclosed certain subsequent events in these condensed consolidated financial statements, as appropriate. | |
Recent Accounting Developments | |
The following recently issued accounting pronouncement may impact the Company in future periods: | |
Income Taxes. In July 2013, the FASB issued an amendment to previously issued guidance regarding the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The amendment requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. This amendment does not require new recurring disclosures. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not impact the Company's operating results, financial position or cash flows. |
Property_Plant_And_Equipment
Property, Plant And Equipment | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant And Equipment | ' | |||||||
Property, Plant and Equipment | ||||||||
The amount capitalized as oil and natural gas properties was incurred for the purchase and development of various properties in the U.S., specifically the states of West Virginia, Pennsylvania, Oklahoma and Texas. The Company sold substantially all of its East Texas assets on October 2, 2013, with an effective date of January 1, 2013. | ||||||||
The following table summarizes the components of unproved properties excluded from amortization for the periods indicated: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Unproved properties, excluded from amortization: | ||||||||
Drilling in progress costs | $ | 2,551 | $ | 4,774 | ||||
Acreage acquisition costs | 90,638 | 86,097 | ||||||
Capitalized interest | 6,162 | 5,349 | ||||||
Total unproved properties excluded from amortization | $ | 99,351 | $ | 96,220 | ||||
For the three months ended March 31, 2014, management's evaluation of unproved properties resulted in an impairment. Due to continued lower natural gas prices for dry gas and no current plans to drill or extend leases in Marcellus East, the Company reclassified $194,000 of unproved properties to proved properties for the three months ended March 31, 2014 related to acreage in Marcellus East. For the three months ended March 31, 2013, management's evaluation of unproved properties resulted in an impairment of $896,000 related to acreage in Marcellus East. | ||||||||
The full cost method of accounting for oil and natural gas properties requires a quarterly calculation of a limitation on capitalized costs, often referred to as a full cost ceiling calculation. The ceiling is the present value of estimated future cash flow from proved oil, condensate, natural gas and NGLs reserves reduced by future operating expenses, development expenditures, abandonment costs (net of salvage) to the extent not included in oil and natural gas properties pursuant to authoritative guidance and estimated future income taxes thereon. To the extent that our capitalized costs (net of accumulated depletion and deferred taxes) exceed the ceiling, the excess must be written off to expense. Once incurred, this impairment of oil and natural gas properties is not reversible at a later date even if oil and natural gas prices increase. The ceiling calculation dictates that the trailing 12-month unweighted arithmetic average of the first-day-of-the-month prices and costs in effect are held constant indefinitely. The 12-month unweighted arithmetic average of the first-day-of-the-month prices are adjusted for basis and quality differentials in determining the present value of the reserves. The table below sets forth relevant pricing assumptions utilized in the quarterly ceiling test computations for the respective periods noted before adjustment for basis and quality differentials: | ||||||||
2014 | ||||||||
Total Impairment | 31-Mar | |||||||
Henry Hub natural gas price (per MMBtu)(1) | $ | 3.99 | ||||||
West Texas Intermediate oil price (per Bbl)(1) | $ | 94.92 | ||||||
Impairment recorded (pre-tax) (in thousands) | $ | — | $ | — | ||||
2013 | ||||||||
Total Impairment | 31-Mar | |||||||
Henry Hub natural gas price (per MMBtu)(1) | $ | 2.95 | ||||||
West Texas Intermediate oil price (per Bbl)(1) | $ | 89.17 | ||||||
Impairment recorded (pre-tax) (in thousands) | $ | — | $ | — | ||||
_________________________________ | ||||||||
-1 | For the respective periods, oil and natural gas prices are calculated using the trailing 12-month unweighted arithmetic average of the first-day-of-the-month prices based on Henry Hub natural gas prices and West Texas Intermediate oil prices. | |||||||
Future declines in the 12-month average of oil, condensate, natural gas and NGLs prices could result in the recognition of future ceiling impairments. | ||||||||
Chesapeake Acquisition | ||||||||
On June 7, 2013, Gastar USA acquired from Chesapeake Exploration, L.L.C. and Larchmont Resources, L.L.C. (together, the “Chesapeake Parties”) approximately 157,000 net acres of Oklahoma oil and gas leasehold interests, including production from interests in 206 producing wells located in Oklahoma (the “Chesapeake Assets”) for a final adjusted purchase price of $69.4 million, reflecting adjustment for an acquisition effective date of October 1, 2012 (the “Chesapeake Acquisition”). The Company accounted for the Chesapeake Acquisition as a business combination and therefore, recorded the assets acquired at their estimated acquisition date fair values. The Company incurred $2.1 million of transaction and integration costs associated with the acquisition and expensed these costs as general and administrative expenses. The Company utilized relevant market assumptions to determine fair value and allocate the purchase price, such as future commodity prices, projections of estimated natural gas and oil reserves, expectations for future development and operating costs, projections of future rates of production, expected recovery rates and market multiples for similar transactions. Many of the assumptions used were unobservable and as such, represented Level 3 inputs under the fair value hierarchy as described in Note 5, “Fair Value Measurements.” The Company's assessment of the fair value of the Chesapeake Assets resulted in a fair market valuation of $113.1 million. With the completion of the asset valuation during the fourth quarter of 2013, the Company recorded deferred tax attributes associated with the transaction of $16.0 million. As a result of incorporating the final valuation information into the purchase price allocation, a net bargain purchase gain of $27.7 million was recognized in 2013. | ||||||||
Hunton Joint Venture and AMI Election | ||||||||
Effective July 1, 2013, Gastar USA's working interest partner in its original AMI in Oklahoma exercised its rights to acquire approximately 12,800 net acres and certain proved properties that Gastar USA acquired pursuant to the Chesapeake Purchase Agreement for a total payment of $11.8 million, of which $133,000 was deemed to be a reimbursement of transaction and integration costs associated with the acquisition and was recorded as a reduction of general and administrative expense. | ||||||||
Hunton Divestiture | ||||||||
On August 6, 2013, Gastar USA sold approximately 76,000 net acres of oil and gas leasehold interests in Kingfisher and Canadian Counties, Oklahoma to Newfield Exploration Mid-Continent Inc. (“Newfield”) and Gastar USA acquired approximately 1,850 net acres of Oklahoma oil and gas leasehold interests from Newfield for a net cash purchase price of approximately $57.0 million, adjusted for an effective date of May 1, 2013. The Company did not record a gain or loss related to the divestiture as it was not significant to the full cost pool. | ||||||||
WEHLU Acquisition | ||||||||
On November 15, 2013, Gastar USA acquired a 98.3% working interest (80.5% net revenue interest) in 24,000 net acres of the West Edmond Hunton Lime Unit (“WEHLU”) located in Kingfisher, Logan and Oklahoma Counties, Oklahoma from Lime Rock Resources II-A, L.P. and Lime Rock Resources II-C, L.P. (the “Lime Rock Parties”) for an adjusted cash purchase price of $177.8 million, reflecting customary adjustments and adjustment for an acquisition effective date of August 1, 2013 (the “WEHLU Acquisition”). The Company accounted for the WEHLU Acquisition as a business combination and therefore, recorded the assets acquired at their estimated acquisition date fair values. The Company incurred $286,000 of transaction and integration costs associated with the acquisition and expensed these costs as incurred as general and administrative expenses. The Company utilized relevant market assumptions to determine fair value and allocate the purchase price, such as future commodity prices, projections of estimated natural gas and oil reserves, expectations for future development and operating costs, projections of future rates of production, expected recovery rates and market multiples for similar transactions. Many of the assumptions used were unobservable and as such, represent Level 3 inputs under the fair value hierarchy as described in Note 5, “Fair Value Measurements.” The Company's preliminary assessment of the fair value of the WEHLU Assets resulted in a fair market valuation of $176.8 million. As the fair market valuation varied less than 1% from the purchase price allocation recorded, no adjustment was made to the purchase price allocation. | ||||||||
Chesapeake and WEHLU Acquisitions Pro Forma Operating Results | ||||||||
The following unaudited pro forma results for the three months ended March 31, 2013 show the effect on the Company's consolidated results of operations as if the Chesapeake and WEHLU Acquisitions had occurred at the beginning of the respective period presented. Pro forma results are not presented for the period ended March 31, 2014, as the results of operations for the acquisitions are included in the Company's results of operations for the three months ended March 31, 2014. The pro forma results for the period ended March 31, 2013 are the result of combining the statement of operations of the Company with the statements of revenues and direct operating expenses for the properties acquired from the Chesapeake and Lime Rock Parties adjusted for (1) the financing directly attributable to the acquisitions, (2) assumption of ARO liabilities and accretion expense for the properties acquired and (3) additional depreciation, depletion and amortization expense as a result of the Company's increased ownership in the acquired properties. The statements of revenues and direct operating expenses for the Chesapeake and WEHLU assets exclude all other historical expenses of the Chesapeake and Lime Rock Parties. As a result, certain estimates and judgments were made in preparing the pro forma adjustments. | ||||||||
For the Three Months Ended March 31, 2013 | ||||||||
(in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Revenues | $ | 24,623 | ||||||
Net Loss | $ | (7,699 | ) | |||||
Loss per share: | ||||||||
Basic | $ | (0.13 | ) | |||||
Diluted | $ | (0.13 | ) | |||||
The pro forma information above includes numerous assumptions, is presented for illustrative purposes only, and may not be indicative of the future results or results of operations that would have actually occurred had the Chesapeake and WEHLU Acquisitions occurred as presented. Further, the above pro forma amounts do not consider any potential synergies or integration costs that may result from the transaction. In addition, future results may vary significantly from the results reflected in such pro forma information. | ||||||||
Hilltop Area, East Texas Sale | ||||||||
On October 2, 2013, Gastar Exploration Texas, LP (“Gastar Texas”) and Gastar USA sold to Cubic Energy, Inc. (“Cubic Energy”) approximately 31,800 gross (16,300 net) acres of leasehold interests in the Hilltop area of East Texas in Leon and Robertson Counties, Texas, including production from interests in producing wells, for net proceeds of approximately $42.9 million, reflecting adjustment for an effective date of January 1, 2013 and other customary adjustments. The Company did not record a gain or loss related to the divestiture as it was not significant to the full cost pool. | ||||||||
Atinum Joint Venture | ||||||||
In September 2010, Gastar USA entered into a joint venture (the “Atinum Joint Venture”) pursuant to which Gastar USA ultimately assigned to an affiliate of Atinum Partners Co., Ltd. (“Atinum”), for total consideration of $70.0 million, a 50% working interest in certain undeveloped acreage and wells (the “Atinum Joint Venture Assets”). Effective June 30, 2011, an AMI was established for additional acreage acquisitions in Ohio, New York, Pennsylvania and West Virginia, excluding the counties of Pendleton, Pocahontas, Preston, Randolph and Tucker, West Virginia. Within this AMI, Gastar USA acts as operator and is obligated to offer any future lease acquisitions within the AMI to Atinum on a 50/50 basis, and Atinum will pay Gastar USA on an annual basis an amount equal to 10% of lease bonuses and third party leasing costs up to $20.0 million and 5% of such costs on activities above $20.0 million. | ||||||||
The Atinum Joint Venture pursued an initial three-year development program that called for the partners to drill a minimum of 60 operated horizontal wells by year-end 2013. Due to natural gas price declines, Atinum and Gastar USA agreed to reduce the minimum wells to be drilled requirements by nine wells to 51 wells from 60 wells. At March 31, 2014, 57 gross operated horizontal wells were capable of production under the Atinum Joint Venture. |
LongTerm_Debt
Long-Term Debt | 3 Months Ended | |
Mar. 31, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Long-Term Debt | ' | |
Long-Term Debt | ||
Second Amended and Restated Revolving Credit Facility | ||
On June 7, 2013, Gastar USA entered into the Second Amended and Restated Credit Agreement, dated as of June 7, 2013, among Gastar USA, Wells Fargo Bank, National Association, as Administrative Agent, Collateral Agent, Swing Line Lender and Issuing Lender and the lenders named therein (the “Revolving Credit Facility”). The Revolving Credit Facility provided an initial borrowing base of $50.0 million, with borrowings bearing interest, at Gastar USA's election, at the reference rate or the Eurodollar rate plus an applicable margin. The reference rate is the greater of (i) the rate of interest publicly announced by the administrative agent or (ii) the federal funds rate plus 50 basis points. The applicable interest rate margin varies from 1.0% to 2.0% in the case of borrowings based on the reference rate and from 2.0% to 3.0% in the case of borrowings based on the Eurodollar rate, depending on the utilization percentage in relation to the borrowing base. An annual commitment fee of 0.5% is payable quarterly on the unutilized balance of the borrowing base. The Revolving Credit Facility has a scheduled maturity of November 14, 2017. | ||
The Revolving Credit Facility is guaranteed by all of Gastar USA's current domestic subsidiaries and all future domestic subsidiaries formed during the term of the Revolving Credit Facility, in each case with the exception of those subsidiaries the Company has chosen to exclude that are deemed immaterial. Borrowings and related guarantees are secured by a first priority lien on all domestic oil and natural gas properties currently owned by or later acquired by Gastar USA and its subsidiaries, excluding de minimus value properties as determined by the lender. The Revolving Credit Facility is secured by a first priority pledge of the stock of each domestic subsidiary, a first priority interest on all accounts receivable, notes receivable, inventory, contract rights, general intangibles and material property of the issuer and 65% of the stock of each foreign subsidiary of Gastar USA. | ||
The Revolving Credit Facility contains various covenants, including among others: | ||
• | Restrictions on liens, incurrence of other indebtedness without lenders' consent and common stock dividends and other restricted payments; | |
• | Maintenance of a minimum consolidated current ratio as of the end of each quarter of not less than 1.0 to 1.0, as adjusted; | |
• | Maintenance of a maximum ratio of net indebtedness to EBITDA of not greater than 4.0 to 1.0; and | |
• | Maintenance of an interest coverage ratio on a rolling four quarters basis, as adjusted, of EBITDA to interest expense, as of the end of each quarter, to be less than 2.5 to 1.0. | |
All outstanding amounts owed become due and payable upon the occurrence of certain usual and customary events of default, including among others: | ||
• | Failure to make payments; | |
• | Non-performance of covenants and obligations continuing beyond any applicable grace period; and | |
• | The occurrence of a change in control of Gastar USA, as defined in the New Revolving Credit Facility. | |
On July 31, 2013, Gastar USA, together with the parties thereto, entered into the Waiver, Agreement and Amendment No. 1 to Second Amended and Restated Credit Agreement (the “First Amendment”). The First Amendment amended the New Revolving Credit Facility to clarify the current ratio covenant calculation. | ||
On October 18, 2013, Gastar USA, together with the parties thereto, entered into the Agreement and Amendment No. 2 (“Amendment No. 2”) to Second Amended and Restated Credit Agreement, dated as of June 7, 2013. Amendment No. 2 amended the Revolving Credit Facility to, among other things, (i) increase the aggregate principal amount of 8 5/8% Senior Secured Notes due 2018 permitted to be issued from $200.0 million to $325.0 million, (ii) allow for the issuance by Gastar USA of Series B Preferred Stock and (iii) increase the aggregate amount of cash dividends permitted to be paid to preferred stockholders from $12.5 million to $20.0 million. | ||
On December 9, 2013, the borrowing base under the Revolving Credit Facility was increased by the lending participants to $100.0 million. | ||
On March 12, 2014, Gastar USA, together with the parties thereto, entered into the Agreement, Waiver and Amendment No. 3 (“Amendment No. 3”) to Second Amended and Restated Credit Agreement, dated as of June 7, 2013. Amendment No. 3 amended the Revolving Credit Facility to, among other things, (i) permit the Company to exclude current and future subsidiaries that are deemed to be immaterial from becoming guarantors of the Revolving Credit Facility, provided such non-guarantor subsidiaries comply with certain restrictions, (ii) exclude the non-guarantor subsidiaries from the provisions of the negative covenants of the Revolving Credit Facility with respect to mergers and acquisitions, restricted payments and investments and (iii) exclude the non-guarantor subsidiaries from being included in the calculation of the borrowing base under the Revolving Credit Facility. | ||
On March 26, 2014, the borrowing base under the Revolving Credit Facility was increased by the lending participants to $120.0 million. | ||
Borrowing base redeterminations are scheduled semi-annually in May and November of each calendar year. Gastar USA and its lenders may request one additional unscheduled redetermination during any six-month period between scheduled redeterminations. At March 31, 2014, the Revolving Credit Facility had a borrowing base of $120.0 million, with $0 borrowings outstanding and availability of $120.0 million. The next regularly scheduled redetermination is set for November 2014. Future increases in the borrowing base in excess of the original $50.0 million are limited to 17.5% of the increase in adjusted consolidated net tangible assets as defined in the Notes agreement (as discussed below in “Senior Secured Notes”). | ||
At March 31, 2014, Gastar USA was in compliance with all financial covenants under the Revolving Credit Facility. | ||
Amended and Restated Revolving Credit Facility | ||
For the period October 28, 2009 through June 6, 2013, Gastar USA, together with the other parties thereto, was subject to an amended and restated credit facility (the “Prior Amended Revolving Credit Facility”). The Prior Amended Revolving Credit Facility provided for various borrowing base amounts based on an initial borrowing base of $47.5 million and a final borrowing base of $160.0 million effective March 31, 2013. Borrowings bore interest, at Gastar USA’s election, at the prime rate or LIBO rate plus an applicable margin. The applicable interest rate margin varied from 1.0% to 2.0% in the case of borrowings based on the prime rate and from 2.5% to 3.5% in the case of borrowings based on LIBO rate, depending on the utilization percentage in relation to the borrowing base. An annual commitment fee of 0.5% was payable quarterly based on the unutilized balance of the borrowing base. The Prior Amended Revolving Credit Facility had a final scheduled maturity date of September 30, 2015. The Prior Amended Revolving Credit Facility was amended and restated on June 7, 2013. | ||
Senior Secured Notes | ||
On May 15, 2013, Gastar USA issued $200.0 million aggregate principal amount of its 8 5/8% Senior Secured Notes due May 15, 2018 under an indenture (the “Indenture”) by and among Gastar USA, the Guarantors named therein (the “Guarantors”), Wells Fargo Bank, National Association, as Trustee (in such capacity, the “Trustee”) and Collateral Agent (in such capacity, the “Collateral Agent”). On November 15, 2013, Gastar USA issued an additional $125.0 million aggregate principal amount of additional notes under the Indenture. The 8 5/8% Senior Secured Notes due 2018 are collectively referred to as the “Notes.” The Notes bear interest at a rate of 8.625% per year, payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2013. The Notes will mature on May 15, 2018. The Company received net proceeds of approximately $312.3 million, net of debt issuance costs and any original issue discounts. | ||
In the event of a change of control, as defined in the Indenture, each holder of the Notes will have the right to require Gastar USA to repurchase all or any part of their notes at an offer price in cash equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. | ||
The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by each of Gastar USA's material subsidiaries and certain future domestic subsidiaries (the “Guarantees”). The Notes and Guarantees will rank senior in right of payment to all of Gastar USA's and the Guarantors' future subordinated indebtedness and equal in right of payment to all of Gastar USA's and the Guarantors' existing and future senior indebtedness. The Notes and Guarantees also will be effectively senior to Gastar USA's unsecured indebtedness and effectively subordinated to Gastar USA's and Guarantors' under the Revolving Credit Facility, any other indebtedness secured by a first-priority lien on the same collateral and any other indebtedness secured by assets other than the collateral, in each case to the extent of the value of the assets securing such obligation. | ||
The Indenture contains covenants that, among other things, limit Gastar USA's ability and the ability of its subsidiaries to: | ||
• | Transfer or sell assets or use asset sale proceeds; | |
• | Pay dividends or make distributions, redeem subordinated debt or make other restricted payments; | |
• | Make certain investments; incur or guarantee additional debt or issue preferred equity securities; | |
• | Create or incur certain liens on Gastar USA's assets; | |
• | Incur dividend or other payment restrictions affecting future restricted subsidiaries; | |
• | Merge, consolidate or transfer all or substantially all of Gastar USA's assets; | |
• | Enter into certain transactions with affiliates; and | |
• | Enter into certain sale and leaseback transactions. | |
These and other covenants that are contained in the Indenture are subject to important limitations and qualifications that are described in the Indenture. | ||
On May 15, 2013 and November 15, 2013 , in connection with each issuance and sale of the Notes, Gastar USA and each of the Guarantors entered into a Registration Rights Agreement (together, the “Registration Rights Agreement”) with Imperial Capital, LLC, as representative of the initial purchasers. Under the Registration Rights Agreement, Gastar USA agreed, subject to certain exceptions, to (i) file a registration statement with the SEC with respect to an exchange of the Notes for new notes having terms substantially identical in all material respects to the Notes (except that the exchange notes will not contain terms relating to transfer restrictions), (ii) use its reasonable best efforts to cause the exchange offer registration statement to be declared effective under the Securities Act of 1933, as amended, within 360 days after the issue date of the Notes, (iii) as soon as practicable after the effectiveness of the exchange offer registration statement, offer the exchange notes in exchange for the Notes, and (iv) keep the registered exchange offer open for not less than 30 days (or longer if required by applicable law) after the date of the registered exchange offer is mailed to the holders of the Notes. Gastar USA and the Guarantors also agreed to file a shelf registration statement for the resale of the Notes if an exchange offer cannot be effected within the time period specified above and in other circumstances. On April 21, 2014, pursuant to the Registration Rights Agreement, the Company commenced an offer to exchange any and all outstanding unregistered 8 5/8% Senior Secured Notes due 2018 for new 8 5/8% Senior Secured Notes due 2018 that have been registered under the Securities Act. | ||
On December 23, 2013, Parent entered into the Parent Guarantee Agreement (the “Notes Guarantee”). Pursuant to the Notes Guarantee, Parent jointly and severally, unconditionally guaranteed all notes issued under the indenture governing the Notes. | ||
At March 31, 2014, the Notes reflected a balance of $313.6 million, net of unamortized discounts of $11.4 million, on the condensed consolidated balance sheets. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The Company’s financial assets and liabilities are measured at fair value on a recurring basis. The Company discloses its recognized non-financial assets and liabilities, such as asset retirement obligations, unproved properties and other property and equipment, at fair value on a non-recurring basis. For non-financial assets and liabilities, the Company is required to disclose information that enables users of its financial statements to assess the inputs used to develop these measurements. The Company assesses its unproved properties for impairment whenever events or circumstances indicate the carrying value of those properties may not be recoverable. The fair value of the unproved properties is measured using an income approach based upon internal estimates of future production levels, current and future prices, drilling and operating costs, discount rates, current drilling plans and favorable and unfavorable drilling activity on the properties being evaluated and/or adjacent properties or estimated market data based on area transactions, which are Level 3 inputs. For the three months ended March 31, 2014, management's evaluation of unproved properties resulted in an impairment. Due to continued lower natural gas prices for dry gas and no current plans to drill or extend leases in Marcellus East, the Company reclassified $194,000 of unproved properties to proved properties as of March 31, 2014 related to acreage in Marcellus East. For the three months ended March 31, 2013, management's evaluation of unproved properties resulted in an impairment of $896,000 related to Marcellus East. As no other fair value measurements are required to be recognized on a non-recurring basis at March 31, 2014, no additional disclosures are provided at March 31, 2014. | ||||||||||||||||
As defined in the guidance, fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). To estimate fair value, the Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (“Level 1”) and the lowest priority to unobservable inputs (“Level 3”). The three levels of the fair value hierarchy are as follows: | ||||||||||||||||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. The Company’s cash equivalents consist of short-term, highly liquid investments, which have maturities of 90 days or less, including sweep investments and money market funds. | |||||||||||||||
• | Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. | |||||||||||||||
• | Level 3 inputs are measured based on prices or valuation models that require inputs that are both significant to the fair value measurement and less observable from objective sources. These inputs may be used with internally developed methodologies or third party broker quotes that result in management’s best estimate of fair value. The Company’s valuation models consider various inputs including (a) quoted forward prices for commodities, (b) time value, (c) volatility factors and (d) current market and contractual prices for the underlying instruments. Significant increases or decreases in any of these inputs in isolation would result in a significantly higher or lower fair value measurement. Level 3 instruments are commodity costless collars, index swaps, basis and fixed price swaps and put and call options to hedge natural gas, oil and NGLs price risk. At each balance sheet date, the Company performs an analysis of all applicable instruments and includes in Level 3 all of those whose fair value is based on significant unobservable inputs. The fair values derived from counterparties and third-party brokers are verified by the Company using publicly available values for relevant NYMEX futures contracts and exchange traded contracts for each derivative settlement location. Although such counterparty and third-party broker quotes are used to assess the fair value of its commodity derivative instruments, the Company does not have access to the specific assumptions used in its counterparties valuation models. Consequently, additional disclosures regarding significant Level 3 unobservable inputs were not provided and the Company does not currently have sufficient corroborating market evidence to support classifying these contracts as Level 2 instruments. | |||||||||||||||
As required, financial assets and liabilities are classified in their entirety 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 fair value assets and liabilities and their placement within the fair value hierarchy levels. The determination of the fair values below incorporates various factors, including the impact of the counterparty’s non-performance risk with respect to the Company’s financial assets and the Company’s non-performance risk with respect to the Company’s financial liabilities. The Company has not elected to offset the fair value amounts recognized for multiple derivative instruments executed with the same counterparty, but reports them gross on its consolidated balance sheets. | ||||||||||||||||
Transfers between levels are recognized at the end of the reporting period. There were no transfers between levels during the 2014 and 2013 periods. | ||||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Fair value as of March 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 26,913 | $ | — | $ | — | $ | 26,913 | ||||||||
Commodity derivative contracts | — | — | 6,662 | 6,662 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | — | — | (6,042 | ) | (6,042 | ) | ||||||||||
Total | $ | 26,913 | $ | — | $ | 620 | $ | 27,533 | ||||||||
Fair value as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 32,393 | $ | — | $ | — | $ | 32,393 | ||||||||
Commodity derivative contracts | — | — | 7,545 | 7,545 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | — | — | (3,781 | ) | (3,781 | ) | ||||||||||
Total | $ | 32,393 | $ | — | $ | 3,764 | $ | 36,157 | ||||||||
The table below presents a reconciliation of the assets and liabilities classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2014 and 2013. Level 3 instruments presented in the table consist of net derivatives that, in management’s opinion, reflect the assumptions a marketplace participant would have used at March 31, 2014 and 2013. | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 3,764 | $ | 6,465 | ||||||||||||
Total losses included in earnings | (6,514 | ) | (4,002 | ) | ||||||||||||
Purchases | 71 | — | ||||||||||||||
Issuances | — | — | ||||||||||||||
Settlements (1) | 3,299 | (5,608 | ) | |||||||||||||
Transfers in and (out) of Level 3 | — | — | ||||||||||||||
Balance at end of period | $ | 620 | $ | (3,145 | ) | |||||||||||
The amount of total losses for the period included in earnings attributable to the change in mark to market of commodity derivatives contracts still held at March 31, 2014 and 2013 | $ | (3,155 | ) | $ | (9,637 | ) | ||||||||||
_________________________________ | ||||||||||||||||
-1 | Included in loss (gain) on commodity derivatives contracts on the condensed consolidated statement of operations. | |||||||||||||||
At March 31, 2014, the estimated fair value of accounts receivable, prepaid expenses, accounts and revenue payables and accrued liabilities approximates their carrying value due to their short-term nature. The estimated fair value of the Company’s long-term debt at March 31, 2014 was $334.8 million based on quoted market prices of the senior secured notes (Level 1). | ||||||||||||||||
The Company has consistently applied the valuation techniques discussed above in all periods presented. | ||||||||||||||||
The fair value guidance, as amended, establishes that every derivative instrument is to be recorded on the balance sheet as either an asset or liability measured at fair value. See Note 6, “Derivative Instruments and Hedging Activity.” |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activity | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activity | ' | ||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activity | |||||||||||||||||||||||||||||
The Company maintains a commodity price risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations that may arise from volatility in commodity prices. The Company uses costless collars, index, basis and fixed price swaps and put and call options to hedge oil, condensate, natural gas and NGLs price risk. | |||||||||||||||||||||||||||||
All derivative contracts are carried at their fair value on the balance sheet and all changes in value are recorded in the condensed consolidated statement of operations in loss (gain) on commodity derivatives contracts. For the three months ended March 31, 2014 and 2013, the Company reported losses of $6.5 million and $4.0 million, respectively, in the condensed consolidated statement of operations related to the change in the fair value of its commodity derivative contracts. | |||||||||||||||||||||||||||||
As of March 31, 2014, the following natural gas derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | Floor | Short | Call | Ceiling | |||||||||||||||||||||
Daily | Notional | Fixed | (Long) | Put | (Long) | (Short) | |||||||||||||||||||||||
Volume | Volume | Price | |||||||||||||||||||||||||||
(in MMBtus) | |||||||||||||||||||||||||||||
2014 | Fixed price swap | 10,222 | 2,809,000 | $ | 4.06 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
2014 | Fixed price swap | 2,000 | 550,000 | 3.72 | — | — | — | — | |||||||||||||||||||||
2014 | Fixed price swap | 2,000 | 550,000 | 3.98 | — | — | — | — | |||||||||||||||||||||
2014 | Fixed price swap | 2,000 | 550,000 | 4.07 | — | — | — | — | |||||||||||||||||||||
2014 | Fixed price swap | 2,655 | 730,700 | 4.32 | — | — | — | — | |||||||||||||||||||||
2014 | Short calls | 2,500 | 687,500 | — | — | — | — | 4.59 | |||||||||||||||||||||
2014 | Costless collar | 3,000 | 825,000 | — | 4 | — | — | 4.36 | |||||||||||||||||||||
2014 | Costless collar | 5,000 | 1,375,000 | — | 4 | — | — | 4.55 | |||||||||||||||||||||
2014 | Costless collar | 2,500 | 687,500 | — | 4 | — | — | 4.71 | |||||||||||||||||||||
2014 | Put spread | 2,000 | 555,000 | — | 4 | 3.72 | — | — | |||||||||||||||||||||
2015(1) | Fixed price swap | 10,000 | 900,000 | 4.46 | — | — | — | — | |||||||||||||||||||||
2015 | Fixed price swap | 400 | 146,000 | 4 | — | — | — | — | |||||||||||||||||||||
2015 | Fixed price swap | 2,500 | 912,500 | 4.06 | — | — | — | — | |||||||||||||||||||||
2015 | Protective spread | 2,600 | 949,000 | 4 | — | 3.25 | — | — | |||||||||||||||||||||
2015(1) | Producer three-way collar | 3,750 | 337,500 | — | 4.6 | 3.5 | — | 5.34 | |||||||||||||||||||||
2015 | Producer three-way collar | 2,000 | 760,000 | — | 4 | 3.25 | — | 4.58 | |||||||||||||||||||||
2016 | Protective spread | 2,000 | 732,000 | 4.11 | — | 3.25 | — | — | |||||||||||||||||||||
2016 | Producer three-way collar | 2,000 | 732,000 | — | 4 | 3.25 | — | 4.58 | |||||||||||||||||||||
_______________________________ | |||||||||||||||||||||||||||||
-1 | For the period January to March 2015. | ||||||||||||||||||||||||||||
As of March 31, 2014, the following crude derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | Floor | Short | Ceiling | ||||||||||||||||||||||
Daily | Notional | Fixed | (Long) | Put | (Short) | ||||||||||||||||||||||||
Volume (1) | Volume | Price | |||||||||||||||||||||||||||
(in Bbls) | |||||||||||||||||||||||||||||
2014 (2) | Fixed price swap | 300 | 27,300 | $ | 98.05 | $ | — | $ | — | $ | — | ||||||||||||||||||
2014 (2) | Fixed price swap | 550 | 50,050 | 95.15 | — | — | — | ||||||||||||||||||||||
2014 (2) | Fixed price swap | 900 | 81,900 | 93.21 | — | — | |||||||||||||||||||||||
2014 (3) | Fixed price swap | 750 | 138,000 | 90.35 | — | — | — | ||||||||||||||||||||||
2014 (3) | Fixed price swap | 200 | 36,800 | 93 | — | — | — | ||||||||||||||||||||||
2014 (3) | Fixed price swap | 350 | 64,400 | 91.55 | — | — | — | ||||||||||||||||||||||
2014 | Fixed price swap | 500 | 137,500 | 91.1 | — | — | — | ||||||||||||||||||||||
2014 | Fixed price swap | 250 | 68,750 | 90.77 | — | — | — | ||||||||||||||||||||||
2014 | Costless collar | 200 | 55,000 | — | 98 | — | 98 | ||||||||||||||||||||||
2014 (4) | Put spread | 200 | 24,400 | — | 93 | 73 | — | ||||||||||||||||||||||
2015 | Costless three-way collar | 400 | 146,000 | — | 85 | 70 | 96.5 | ||||||||||||||||||||||
2015 | Costless three-way collar | 345 | 126,100 | — | 85 | 65 | 97.8 | ||||||||||||||||||||||
2015 (5) | Costless three-way collar | 150 | 27,150 | — | 85 | 65 | 96.25 | ||||||||||||||||||||||
2015 (6) | Costless three-way collar | 50 | 9,200 | — | 85 | 65 | 96.25 | ||||||||||||||||||||||
2015 (5) | Put spread | 700 | 126,700 | — | 90 | 70 | — | ||||||||||||||||||||||
2015 | Put spread | 250 | 91,250 | — | 89 | 69 | — | ||||||||||||||||||||||
2015 (6) | Put spread | 600 | 110,400 | — | 87 | 67 | — | ||||||||||||||||||||||
2016 | Costless three-way collar | 275 | 100,600 | — | 85 | 65 | 95.1 | ||||||||||||||||||||||
2016 | Costless three-way collar | 330 | 120,780 | — | 80 | 65 | 97.35 | ||||||||||||||||||||||
2016 | Put spread | 550 | 201,300 | — | 85 | 65 | — | ||||||||||||||||||||||
2016 | Put spread | 300 | 109,800 | — | 85.5 | 65.5 | — | ||||||||||||||||||||||
2017 | Costless three-way collar | 280 | 102,200 | — | 80 | 65 | 97.25 | ||||||||||||||||||||||
2017 | Costless three-way collar | 242 | 88,150 | — | 80 | 60 | 98.7 | ||||||||||||||||||||||
2017 | Put spread | 500 | 182,500 | — | 82 | 62 | — | ||||||||||||||||||||||
2018 (7) | Put spread | 425 | 103,275 | — | 80 | 60 | — | ||||||||||||||||||||||
_______________________________ | |||||||||||||||||||||||||||||
-1 | Crude volumes hedged include oil, condensate and certain components of our NGLs production. | ||||||||||||||||||||||||||||
-2 | For the period April to June 2014. | ||||||||||||||||||||||||||||
-3 | For the period July to December 2014. | ||||||||||||||||||||||||||||
-4 | For the period September to December 2014. | ||||||||||||||||||||||||||||
-5 | For the period January to June 2015. | ||||||||||||||||||||||||||||
-6 | For the period July to December 2015. | ||||||||||||||||||||||||||||
-7 | For the period January to August 2018. | ||||||||||||||||||||||||||||
As of March 31, 2014, the following NGLs derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | |||||||||||||||||||||||||
Daily | Notional | Fixed | |||||||||||||||||||||||||||
Volume | Volume | Price | |||||||||||||||||||||||||||
(in Bbls) | |||||||||||||||||||||||||||||
2014 | Fixed price swap | 250 | 68,750 | $ | 46.1 | ||||||||||||||||||||||||
2014 | Fixed price swap | 250 | 68,750 | 48.11 | |||||||||||||||||||||||||
As of March 31, 2014, all of the Company’s economic derivative hedge positions were with a multinational energy company or large financial institutions, which are not known to the Company to be in default on their derivative positions. The Company is exposed to credit risk to the extent of non-performance by the counterparties in the derivative contracts discussed above; however, the Company does not anticipate non-performance by such counterparties. None of the Company’s derivative instruments contains credit-risk related contingent features. | |||||||||||||||||||||||||||||
In conjunction with certain derivative hedging activity, the Company deferred the payment of certain put premiums for the production month period December 2013 through August 2018. The put premium liabilities become payable monthly as the hedge production month becomes the prompt production month. The Company began amortizing the deferred put premium liabilities in December 2013. The following table provides information regarding the deferred put premium liabilities for the periods indicated: | |||||||||||||||||||||||||||||
March 31, 2014 | 31-Dec-13 | ||||||||||||||||||||||||||||
Current commodity derivative premium put payable | $ | 728 | $ | 145 | |||||||||||||||||||||||||
Long-term commodity derivative premium payable | 6,417 | 7,000 | |||||||||||||||||||||||||||
Total unamortized put premium liabilities | $ | 7,145 | $ | 7,145 | |||||||||||||||||||||||||
The following table provides information regarding the amortization of the deferred put premium liabilities by year as of March 31, 2014: | |||||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
September to December 2014 | $ | 145 | |||||||||||||||||||||||||||
January to December 2015 | 2,298 | ||||||||||||||||||||||||||||
January to December 2016 | 2,408 | ||||||||||||||||||||||||||||
January to December 2017 | 1,460 | ||||||||||||||||||||||||||||
January to August 2018 | 834 | ||||||||||||||||||||||||||||
Total unamortized put premium liabilities | $ | 7,145 | |||||||||||||||||||||||||||
Additional Disclosures about Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||
The tables below provide information on the location and amounts of derivative fair values in the condensed consolidated statement of financial position and derivative gains and losses in the condensed consolidated statement of operations for derivative instruments that are not designated as hedging instruments: | |||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||
Derivative Assets (Liabilities) | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
Balance Sheet Location | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Current assets | $ | 266 | $ | — | ||||||||||||||||||||||||
Commodity derivative contracts | Other assets | 6,396 | 7,545 | ||||||||||||||||||||||||||
Commodity derivative contracts | Current liabilities | (5,876 | ) | (3,403 | ) | ||||||||||||||||||||||||
Commodity derivative contracts | Long-term liabilities | (166 | ) | (378 | ) | ||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 620 | $ | 3,764 | |||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | |||||||||||||||||||||||||||||
Recognized in Income on | |||||||||||||||||||||||||||||
Derivatives For the Three | |||||||||||||||||||||||||||||
Months Ended March 31, | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivatives | 2014 | 2013 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Loss on commodity derivatives contracts | $ | (6,514 | ) | $ | (4,002 | ) | ||||||||||||||||||||||
Total | $ | (6,514 | ) | $ | (4,002 | ) | |||||||||||||||||||||||
Capital_Stock
Capital Stock | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Stockholders' Equity Note [Abstract] | ' | |||
Capital Stock | ' | |||
Capital Stock | ||||
Common Stock | ||||
On November 14, 2013, Parent changed its jurisdiction of incorporation to the State of Delaware and entered into new articles of incorporation pursuant to which 275,000,000 shares of Parent's common stock, $0.001 par value per share, were authorized for issuance. Prior to November 14, 2013, Parent’s articles of incorporation allowed Parent to issue an unlimited number of common shares without par value. | ||||
On January 31, 2014, Parent entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Parent merged with and into Gastar USA, a direct subsidiary of Parent, as part of a reorganization to eliminate Parent's holding company corporate structure. Pursuant to the Merger Agreement, shares of Parent's common stock were converted into the right to receive an equal number of shares of common stock of Gastar USA, which together with its subsidiaries, owns and continues to conduct business in substantially the same manner as it was being conducted by Parent and its subsidiaries immediately prior to the merger. | ||||
Prior to its conversion, as described below, Gastar USA’s articles of incorporation allowed Gastar USA to issue 1,000 shares of common stock, without par value. There were 750 shares issued and outstanding at December 31, 2013, all of which were held by Parent. | ||||
On May 24, 2011, Gastar USA converted from a Michigan corporation to a Delaware corporation (the “Conversion”). Following the Conversion, Gastar USA’s new Delaware certificate of incorporation allows Gastar USA to issue 1,000 shares of common stock, without par value. In connection with the Conversion, the Parent’s 750 shares of common stock in the Michigan corporation were converted to 750 shares of common stock in the new Gastar USA Delaware corporation. | ||||
On October 25, 2013, Gastar USA filed an Amended and Restated Certificate of Incorporation (the “A&R Certificate”) with the Secretary of State of the State of Delaware. Under the A&R Certificate, the capital stock authorized for issuance was increased from 1,000 shares of common stock, without par value, to 275,000,000 shares of common stock, par value $0.001 per share. | ||||
Other Share Issuances | ||||
The following table provides information regarding the issuances and forfeitures of common stock pursuant to the Company's 2006 Long-Term Stock Incentive Plan (the “2006 Plan”) for the periods indicated: | ||||
For the Three Months Ended March 31, 2014 | ||||
Other share issuances: | ||||
Restricted common shares granted | 533,840 | |||
Restricted common shares vested | 1,191,296 | |||
Common shares surrendered upon vesting (1) | 399,356 | |||
Common shares issued upon vesting of PBUs, net of shares surrendered for taxes | 472,189 | |||
__________________ | ||||
-1 | Represents common shares forfeited in connection with the payment of estimated withholding taxes on restricted common shares that vested during the period. | |||
There were 1,368,487 shares available for issuance under the 2006 Plan at March 31, 2014. | ||||
Shares Reserved | ||||
At March 31, 2014, the Company had 874,100 common shares reserved for the exercise of stock options. | ||||
Shares Owned by Chesapeake Energy Corporation | ||||
On March 28, 2013, the Company entered into a Settlement Agreement, dated March 28, 2013, between Chesapeake Exploration, L.L.C. and Chesapeake Energy Corporation (collectively, “Chesapeake”) and the Company, Gastar Exploration Texas, LP and Gastar Exploration Texas, LLC (the “Settlement Agreement”). Pursuant to the Settlement Agreement, the Company settled and resolved all claims of Chesapeake and its subsidiaries against the Company and its subsidiaries made in a previously disclosed lawsuit filed in the U.S. District Court for the Southern District of Texas. In order to effect a mutual full and unconditional release and settlement of all claims made in the lawsuit filed by Chesapeake, the Company paid Chesapeake approximately $10.8 million in cash, approximately $9.8 million of which was paid for the repurchase of 6,781,768 outstanding common shares of Parent held by Chesapeake Energy Corporation upon the closing of the stock repurchase and settlement on June 7, 2013. | ||||
Preferred Stock | ||||
Prior to the Conversion, Gastar USA’s articles of incorporation did not authorize issuance of preferred stock. | ||||
Following the Conversion, Gastar USA’s new Delaware certificate of incorporation allows Gastar USA to issue 10,000,000 shares of preferred stock, with $0.01 par value (the “Preferred Stock”). The Preferred Stock was permitted to be issued from time to time in one or more series. Gastar USA’s Board of Directors (the “Gastar USA Board”) was authorized to fix the number of shares of any series of Preferred Stock and to determine the designation of any such series. The Gastar USA Board was also authorized to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of Preferred Stock and, within the limits and restrictions stated in any resolution or resolutions of the Gastar USA Board originally fixing the number of shares constituting any series, to increase or decrease (but not below the number of shares of any such series outstanding) the number of shares of any series subsequent to the issues shares of that series). Pursuant to the A&R Certificate, the number of shares of Preferred Stock authorized for issuance was increased to 40,000,000 shares. | ||||
Series A Preferred Stock | ||||
For the three months ended March 31, 2014, Gastar USA sold 37,126 shares of its 8.625% Series A Preferred Stock, par value $0.01 per share and liquidation preference $25.00 per share (the “Series A Preferred Stock”) under its at the market preferred share purchase agreement (the “ATM Agreement”) for net proceeds of $865,000. At March 31, 2014, there were 3,995,286 total shares of Series A Preferred Stock issued and outstanding. Subsequent to March 31, 2014, for the period April 1, 2014 to May 2, 2014, the Company sold an additional 42,547 shares of Series A Preferred Stock under the ATM Agreement for net proceeds of $1.0 million. As of May 2, 2014, the Company has an additional 7,167 shares available for issuance under the ATM Agreement. | ||||
The Series A Preferred Stock is subordinated to all of the Company’s existing and future debt and all future capital stock designated as senior to the Series A Preferred Stock. | ||||
The Series A Preferred Stock cannot be converted into common stock, but may be redeemed, at the Company’s option, on or after June 23, 2014 for $25.00 per share plus any accrued and unpaid dividends or in certain circumstances prior to such date as a result of a change in control. Following a change in control, the Company will have the option to redeem the Series A Preferred Stock, in whole but not in part, within 90 days after the date on which the change in control occurs, for cash at the following prices per share, plus accrued and unpaid dividends (whether or not declared), up to the redemption date: | ||||
Redemption Date | Redemption | |||
Price | ||||
Prior to June 23, 2014 | $ | 25.25 | ||
On or after June 23, 2014 | $ | 25 | ||
There is no mandatory redemption of the Series A Preferred Stock. | ||||
The Company pays cumulative dividends on the Series A Preferred Stock at a fixed rate of 8.625% per annum of the $25.00 per share liquidation preference. For the three months ended March 31, 2014, the Company recognized dividend expense of $2.1 million for the Series A Preferred Stock. | ||||
Series B Preferred Stock | ||||
On October 29, 2013, the Company sold 2,000,000 shares of 10.75% Series B Cumulative Preferred Stock, par value $0.01 per share and liquidation preference $25.00 per share (the “Series B Preferred Stock”), in an underwritten public offering. On November 1, 2013, the underwriters partially exercised their option to purchase additional shares of Series B Preferred Stock and purchased an additional 140,000 shares of Series B Preferred Stock. The issuance of the 2,140,000 shares of Series B Preferred Stock closed on November 7, 2013. Net proceeds from the sale of the Series B Preferred Stock were approximately $50.1 million after deducting underwriting commissions and offering expenses. | ||||
The Series B Preferred Stock rank senior to the Company’s common stock and on parity with the Series A Preferred Stock with respect to the payment of dividends and distribution of assets upon liquidation, dissolution or winding up. The Series B Preferred Stock are subordinated to all of the Company’s existing and future debt and all future capital stock designated as senior to the Series B Preferred Stock. | ||||
Except upon a change in ownership or control, the Series B Preferred Stock may not be redeemed before November 15, 2018, at or after which time it may be redeemed at the Company’s option for $25.00 per share in cash. Following a change in ownership or control, the Company will have the option to redeem the Series B Preferred Stock, in whole but not in part for $25.00 per share in cash, plus accrued and unpaid dividends (whether or not declared), up to, but not including the redemption date. If the Company does not exercise its option to redeem the Series B Preferred Stock upon a change of ownership or control, the holders of the Series B Preferred Stock have the option to convert the shares of Series B Preferred Stock into up to an aggregate of 11.5207 shares of the Company’s common stock per share of Series B Preferred Stock, subject to certain adjustments. If the Company exercises any of its redemption rights relating to shares of Series B Preferred Stock, the holders of Series B Preferred Stock will not have the conversion right described above with respect to the shares of Series B Preferred Stock called for redemption. Notwithstanding any of the foregoing, if a change of ownership or control occurs prior to the consummation of the Reorganization Transactions (as defined in the Certificate of Designation), (i) the holders of Series B Preferred Stock shall not have the conversion right described above and (ii) the dividend rate shall increase to 12.75%. | ||||
There is no mandatory redemption of the Series B Preferred Stock. | ||||
The Company pays cumulative dividends on the Series B Preferred Stock at a fixed rate of 10.75% per annum of the $25.00 per share liquidation preference. For the three months ended March 31, 2014, the Company recognized dividend expense of $1.4 million for the Series B Preferred Stock. |
Equity_Compensation_Plans
Equity Compensation Plans | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Equity Compensation Plans | ' | |||||||
Equity Compensation Plans | ||||||||
Share-Based Compensation Plan | ||||||||
Pursuant to the 2006 Plan, as amended, the Company's Compensation Committee agreed to allocate a portion of the 2013 long-term incentive grants to executives as performance based units (“PBUs”). The PBUs represent a contractual right to receive shares of Parent's common stock, an amount of cash equal to the fair market value of a share of Parent's common stock, or a combination of shares of Parent's common stock and cash as of the date of settlement based on the number of PBUs to be settled. The settlement of PBUs may range from 0% to 200% of the targeted number of PBUs stated in the agreement contingent upon the achievement of certain share price appreciation targets as compared to a peer group index. The PBUs vest equally and settlement is determined annually over a three year period. Any PBUs not vested at each measurement date will expire. | ||||||||
Compensation expense associated with PBUs is based on the grant date fair value of a single PBU as determined using a Monte Carlo simulation model which utilizes a stochastic process to create a range of potential future outcomes given a variety of inputs. As the Compensation Committee intends to settle the PBUs with shares of Parent's common stock at each measurement date, the PBU awards are accounted for as equity awards and the expense is calculated on the grant date assuming a 100% target number of PBUs and amortized over the life of the PBU award. | ||||||||
The table below provides a summary of PBUs as of the date indicated: | ||||||||
PBUs | Fair Value per Unit | |||||||
Unvested PBUs at December 31, 2013 | 1,065,734 | $ | 1.56 | |||||
Granted | 280,171 | 7.34 | ||||||
Vested (1) | (355,247 | ) | 1.56 | |||||
Forfeited | — | — | ||||||
Unvested PBUs at March 31, 2014 | 990,658 | $ | 3.19 | |||||
_________________________________ | ||||||||
-1 | The first tranche of the January 30, 2013 PBU grant vested on January 30, 2014 and settled at 200% based on the Company's share price appreciation compared to the peer group index. | |||||||
For the three months ended March 31, 2014, the Company recognized $371,091 of compensation expense associated with the PBUs granted on January 30, 2013 and 2014. |
Interest_Expense
Interest Expense | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Interest Expense [Abstract] | ' | |||||||
Interest Expense | ' | |||||||
Interest Expense | ||||||||
The following table summarizes the components of interest expense for the periods indicated: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Interest expense: | ||||||||
Cash and accrued | $ | 7,134 | $ | 900 | ||||
Amortization of deferred financing costs (1) | 733 | 78 | ||||||
Capitalized interest | (976 | ) | (369 | ) | ||||
Total interest expense | $ | 6,891 | $ | 609 | ||||
__________________ | ||||||||
-1 | The three months ended March 31, 2014 includes $556,000 of debt discount accretion related to the Notes. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
For the three months ended March 31, 2014 and 2013, respectively, the Company did not recognize a current income tax benefit or provision due to the Company being in a net operating loss position for both periods. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Earnings Per Share | ' | |||||||
Earnings per Share | ||||||||
In accordance with the provisions of current authoritative guidance, basic earnings or loss per share is computed on the basis of the weighted average number of common shares outstanding during the periods. Diluted earnings or loss per share is computed based upon the weighted average number of common shares outstanding plus the assumed issuance of common shares for all potentially dilutive securities. | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share and share data) | ||||||||
Net loss attributable to common stockholders | $ | (1,965 | ) | $ | (4,586 | ) | ||
Weighted average common shares outstanding - basic | 58,204,532 | 63,864,527 | ||||||
Incremental shares from unvested restricted shares | — | — | ||||||
Incremental shares from outstanding PBUs | — | — | ||||||
Weighted average common shares outstanding - diluted | 58,204,532 | 63,864,527 | ||||||
Net income (loss) per share of common stock attributable to common stockholders: | ||||||||
Basic | $ | (0.03 | ) | $ | (0.07 | ) | ||
Diluted | $ | (0.03 | ) | $ | (0.07 | ) | ||
Common shares excluded from denominator as anti-dilutive: | ||||||||
Unvested restricted shares | 119,496 | 2,631,552 | ||||||
Stock options | — | 949,100 | ||||||
Unvested PBUs | — | 1,192,889 | ||||||
Total | 119,496 | 4,773,541 | ||||||
Commitments_And_Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments And Contingencies | ' |
Commitments and Contingencies | |
Litigation | |
Gastar Exploration USA, Inc., et al v. Williams Ohio Valley Midstream LLC (American Arbitration Association Matter No. 70-198-Y-00461-13). On July 16, 2013, Gastar USA and two similarly situated co-claimants initiated an arbitration proceeding against Williams Ohio Valley Midstream LLC (“Williams OVM”). The claimants allege that Williams OVM has breached various agreements relating to the gathering, processing and marketing of natural gas, NGLs and condensate produced from properties that are owned in part by Gastar USA in the Marcellus Shale in Marshall and Wetzel Counties, West Virginia, and request that an Arbitration Panel assess an unspecified amount of damages against Williams OVM for, among other claims, failure to timely construct certain gathering and processing facilities, maximize the net value of produced condensation, and fractionate and purchase NGLs as provided in the agreements. On August 7, 2013, Williams OVM filed an answering statement and counterclaim for damages in excess of $612,000 in the arbitration matter. On December 31, 2013, the parties informed the Arbitration Panel that they had reached an agreement in principle to settle their disputes. The settlement is subject to final documentation, which has not yet been completed. At the request of both parties, on January 9, 2014, the Arbitration Panel stayed all proceedings, pending completion of the final settlement documentation. | |
Gastar Exploration Ltd vs. U.S. Specialty Ins. Co. and Axis Ins. Co. (Cause No.2010-11236) District Court of Harris County, Texas 190th Judicial District. On February 19, 2010, the Company filed a lawsuit claiming that the Company was due reimbursement of qualifying claims related to the settlement and associated legal defense costs under the Company's directors and officers liability insurance policies related to the ClassicStar Mare Lease Litigation settled on December 17, 2010 for $21.2 million. The combined coverage limits under the directors and officers liability coverage is $20.0 million. The District Court granted the underwriters' summary judgment request by a ruling dated January 4, 2012. The Company appealed the District Court ruling and on July 15, 2013, the Fourteenth Court of Appeals of Texas reversed the summary judgment ruling granted against the Company on the basis of the policies' prior-and-pending litigation endorsement and remanded the case for further proceedings in the District Court. The insurers are seeking discretionary review from the Texas Supreme Court, and their petition for review was filed on February 18, 2014. The Texas Supreme Court has requested that the Company file a response. The Court can either grant or deny the petition. If the Court denies review or affirms the Fourteenth Court of Appeals’ ruling, the case will be remanded to the District Court. The District Court proceedings will include, but not be limited to, a determination of whether the Company's claims are securities claims covered by the insuring agreements. | |
Eagle Natrium LLC, the Gastar Exploration USA, Inc., Cause No. GD-14-7208, In the Court of Common Pleas of Allegheny County, Pennsylvania. On April 22, 2014, Eagle Natrium LLC (“Eagle”), a wholly-owned subsidiary of Axiall Corporation, filed a complaint against Gastar in the Court of Common Pleas of Allegheny County, Pennsylvania seeking to enjoin Gastar's hydraulic fracturing and completion operations on three wells drilled from Gastar's Goudy pad in Marshall County, West Virginia, or conducting any activity that poses a substantial risk of harm to Eagle's brine operations. Gastar is the operator of an approximately 3,300 gross acre oil and gas lease in Marshall County, West Virginia adjacent to Eagle's facilities. Eagle operates a subsurface brine operation which it acquired from the lessor of Gastar's lease. Eagle has asserted its right to relief based on certain of the lessor's rights which were assigned to Eagle by the lessor solely as they relate to the brine and related facilities. The complaint alleges that the contemplated operations of Gastar, which include hydraulic fracturing, pose a danger to the subsurface brine operations of Eagle. Gastar has drilled and completed 15 gross horizontal wells on this lease without any apparent incident or interference with Eagle's facilities. All wells drilled to date on this lease, including the wells principally involved in the complaint, were previously approved pursuant to the terms of Gastar's lease. Proved undeveloped well locations on this lease accounted for 39.5 Bcfe, or 12%, of the Gastar's total company proved reserves at December 31, 2013. A hearing on a preliminary injunction is set for May 22, 2014. Management of Gastar believes the allegations to be without merit and intends to vigorously defend this matter. | |
The Company has been expensing legal costs on these proceedings as they are incurred. | |
The Company is party to various legal proceedings arising in the normal course of business. The ultimate outcome of each of these matters cannot be absolutely determined, and the liability the Company may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued for with respect to such matters. Net of available insurance and performance of contractual defense and indemnity obligations, where applicable, management does not believe any such matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. |
Statement_Of_Cash_Flows_Supple
Statement Of Cash Flows - Supplemental Information | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Statement Of Cash Flows - Supplemental Information | ' | |||||||
Statement of Cash Flows – Supplemental Information | ||||||||
The following is a summary of the supplemental cash paid and non-cash transactions for the periods indicated: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Cash paid for interest, net of capitalized amounts | $ | (697 | ) | $ | 509 | |||
Non-cash transactions: | ||||||||
Capital expenditures excluded from accounts payable and accrued drilling costs | (299 | ) | (4,167 | ) | ||||
Capital expenditures excluded from accounts receivable | 4,077 | 929 | ||||||
Capital expenditures excluded from prepaid expenses | — | 24 | ||||||
Asset retirement obligation included in oil and natural gas properties | 28 | 100 | ||||||
Asset retirement obligation sold | — | (362 | ) | |||||
Application of advances to operators | 9,490 | 4,835 | ||||||
Other | 78 | (192 | ) | |||||
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy | ' |
The unaudited interim condensed consolidated financial statements of the Company included herein are stated in U.S. dollars and were prepared from the records of the Company by management in accordance with U.S. GAAP applicable to interim financial statements and reflect all normal and recurring adjustments, which are, in the opinion of management, necessary to provide a fair presentation of the results of operations and financial position for the interim periods. Such financial statements conform to the presentation reflected in the 2013 Form 10-K. The current interim period reported herein should be read in conjunction with the financial statements and accompanying notes, including Item 8. “Financial Statements and Supplementary Data, Note 2 – Summary of Significant Accounting Policies,” included in the 2013 Form 10-K. |
Property_Plant_And_Equipment_T
Property, Plant And Equipment (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Business Acquisition [Line Items] | ' | |||||||
Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization | ' | |||||||
The following table summarizes the components of unproved properties excluded from amortization for the periods indicated: | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(in thousands) | ||||||||
Unproved properties, excluded from amortization: | ||||||||
Drilling in progress costs | $ | 2,551 | $ | 4,774 | ||||
Acreage acquisition costs | 90,638 | 86,097 | ||||||
Capitalized interest | 6,162 | 5,349 | ||||||
Total unproved properties excluded from amortization | $ | 99,351 | $ | 96,220 | ||||
Schedule Of Relevant Assumptions Used In Ceiling Test Computations | ' | |||||||
The table below sets forth relevant pricing assumptions utilized in the quarterly ceiling test computations for the respective periods noted before adjustment for basis and quality differentials: | ||||||||
2014 | ||||||||
Total Impairment | 31-Mar | |||||||
Henry Hub natural gas price (per MMBtu)(1) | $ | 3.99 | ||||||
West Texas Intermediate oil price (per Bbl)(1) | $ | 94.92 | ||||||
Impairment recorded (pre-tax) (in thousands) | $ | — | $ | — | ||||
2013 | ||||||||
Total Impairment | 31-Mar | |||||||
Henry Hub natural gas price (per MMBtu)(1) | $ | 2.95 | ||||||
West Texas Intermediate oil price (per Bbl)(1) | $ | 89.17 | ||||||
Impairment recorded (pre-tax) (in thousands) | $ | — | $ | — | ||||
_________________________________ | ||||||||
-1 | For the respective periods, oil and natural gas prices are calculated using the trailing 12-month unweighted arithmetic average of the first-day-of-the-month prices based on Henry Hub natural gas prices and West Texas Intermediate oil prices. | |||||||
WEHLU Purchase Agreement | ' | |||||||
Business Acquisition [Line Items] | ' | |||||||
Business Acquisition, Pro Forma Information | ' | |||||||
The following unaudited pro forma results for the three months ended March 31, 2013 show the effect on the Company's consolidated results of operations as if the Chesapeake and WEHLU Acquisitions had occurred at the beginning of the respective period presented. Pro forma results are not presented for the period ended March 31, 2014, as the results of operations for the acquisitions are included in the Company's results of operations for the three months ended March 31, 2014. The pro forma results for the period ended March 31, 2013 are the result of combining the statement of operations of the Company with the statements of revenues and direct operating expenses for the properties acquired from the Chesapeake and Lime Rock Parties adjusted for (1) the financing directly attributable to the acquisitions, (2) assumption of ARO liabilities and accretion expense for the properties acquired and (3) additional depreciation, depletion and amortization expense as a result of the Company's increased ownership in the acquired properties. The statements of revenues and direct operating expenses for the Chesapeake and WEHLU assets exclude all other historical expenses of the Chesapeake and Lime Rock Parties. As a result, certain estimates and judgments were made in preparing the pro forma adjustments. | ||||||||
For the Three Months Ended March 31, 2013 | ||||||||
(in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Revenues | $ | 24,623 | ||||||
Net Loss | $ | (7,699 | ) | |||||
Loss per share: | ||||||||
Basic | $ | (0.13 | ) | |||||
Diluted | $ | (0.13 | ) |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring | ' | |||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2014 and December 31, 2013: | ||||||||||||||||
Fair value as of March 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 26,913 | $ | — | $ | — | $ | 26,913 | ||||||||
Commodity derivative contracts | — | — | 6,662 | 6,662 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | — | — | (6,042 | ) | (6,042 | ) | ||||||||||
Total | $ | 26,913 | $ | — | $ | 620 | $ | 27,533 | ||||||||
Fair value as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 32,393 | $ | — | $ | — | $ | 32,393 | ||||||||
Commodity derivative contracts | — | — | 7,545 | 7,545 | ||||||||||||
Liabilities: | ||||||||||||||||
Commodity derivative contracts | — | — | (3,781 | ) | (3,781 | ) | ||||||||||
Total | $ | 32,393 | $ | — | $ | 3,764 | $ | 36,157 | ||||||||
Fair Value Assets And Liabilities Measured On Recurring Basis Unobservable Input Reconciliation | ' | |||||||||||||||
The table below presents a reconciliation of the assets and liabilities classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2014 and 2013. Level 3 instruments presented in the table consist of net derivatives that, in management’s opinion, reflect the assumptions a marketplace participant would have used at March 31, 2014 and 2013. | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
(in thousands) | ||||||||||||||||
Balance at beginning of period | $ | 3,764 | $ | 6,465 | ||||||||||||
Total losses included in earnings | (6,514 | ) | (4,002 | ) | ||||||||||||
Purchases | 71 | — | ||||||||||||||
Issuances | — | — | ||||||||||||||
Settlements (1) | 3,299 | (5,608 | ) | |||||||||||||
Transfers in and (out) of Level 3 | — | — | ||||||||||||||
Balance at end of period | $ | 620 | $ | (3,145 | ) | |||||||||||
The amount of total losses for the period included in earnings attributable to the change in mark to market of commodity derivatives contracts still held at March 31, 2014 and 2013 | $ | (3,155 | ) | $ | (9,637 | ) | ||||||||||
_________________________________ | ||||||||||||||||
-1 | Included in loss (gain) on commodity derivatives contracts on the condensed consolidated statement of operations. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activity (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||||||||||||
The following table provides information regarding the deferred put premium liabilities for the periods indicated: | |||||||||||||||||||||||||||||
March 31, 2014 | 31-Dec-13 | ||||||||||||||||||||||||||||
Current commodity derivative premium put payable | $ | 728 | $ | 145 | |||||||||||||||||||||||||
Long-term commodity derivative premium payable | 6,417 | 7,000 | |||||||||||||||||||||||||||
Total unamortized put premium liabilities | $ | 7,145 | $ | 7,145 | |||||||||||||||||||||||||
Schedule of Future Amortization of Deferred Put Premium Liabilities | ' | ||||||||||||||||||||||||||||
The following table provides information regarding the amortization of the deferred put premium liabilities by year as of March 31, 2014: | |||||||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
September to December 2014 | $ | 145 | |||||||||||||||||||||||||||
January to December 2015 | 2,298 | ||||||||||||||||||||||||||||
January to December 2016 | 2,408 | ||||||||||||||||||||||||||||
January to December 2017 | 1,460 | ||||||||||||||||||||||||||||
January to August 2018 | 834 | ||||||||||||||||||||||||||||
Total unamortized put premium liabilities | $ | 7,145 | |||||||||||||||||||||||||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | ||||||||||||||||||||||||||||
The tables below provide information on the location and amounts of derivative fair values in the condensed consolidated statement of financial position and derivative gains and losses in the condensed consolidated statement of operations for derivative instruments that are not designated as hedging instruments: | |||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||
Derivative Assets (Liabilities) | |||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
Balance Sheet Location | March 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Current assets | $ | 266 | $ | — | ||||||||||||||||||||||||
Commodity derivative contracts | Other assets | 6,396 | 7,545 | ||||||||||||||||||||||||||
Commodity derivative contracts | Current liabilities | (5,876 | ) | (3,403 | ) | ||||||||||||||||||||||||
Commodity derivative contracts | Long-term liabilities | (166 | ) | (378 | ) | ||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 620 | $ | 3,764 | |||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Income on Derivatives | |||||||||||||||||||||||||||||
Amount of Gain (Loss) | |||||||||||||||||||||||||||||
Recognized in Income on | |||||||||||||||||||||||||||||
Derivatives For the Three | |||||||||||||||||||||||||||||
Months Ended March 31, | |||||||||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income on Derivatives | 2014 | 2013 | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||
Commodity derivative contracts | Loss on commodity derivatives contracts | $ | (6,514 | ) | $ | (4,002 | ) | ||||||||||||||||||||||
Total | $ | (6,514 | ) | $ | (4,002 | ) | |||||||||||||||||||||||
Natural Gas | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||||||||||||||||||
As of March 31, 2014, the following natural gas derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | Floor | Short | Call | Ceiling | |||||||||||||||||||||
Daily | Notional | Fixed | (Long) | Put | (Long) | (Short) | |||||||||||||||||||||||
Volume | Volume | Price | |||||||||||||||||||||||||||
(in MMBtus) | |||||||||||||||||||||||||||||
2014 | Fixed price swap | 10,222 | 2,809,000 | $ | 4.06 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
2014 | Fixed price swap | 2,000 | 550,000 | 3.72 | — | — | — | — | |||||||||||||||||||||
2014 | Fixed price swap | 2,000 | 550,000 | 3.98 | — | — | — | — | |||||||||||||||||||||
2014 | Fixed price swap | 2,000 | 550,000 | 4.07 | — | — | — | — | |||||||||||||||||||||
2014 | Fixed price swap | 2,655 | 730,700 | 4.32 | — | — | — | — | |||||||||||||||||||||
2014 | Short calls | 2,500 | 687,500 | — | — | — | — | 4.59 | |||||||||||||||||||||
2014 | Costless collar | 3,000 | 825,000 | — | 4 | — | — | 4.36 | |||||||||||||||||||||
2014 | Costless collar | 5,000 | 1,375,000 | — | 4 | — | — | 4.55 | |||||||||||||||||||||
2014 | Costless collar | 2,500 | 687,500 | — | 4 | — | — | 4.71 | |||||||||||||||||||||
2014 | Put spread | 2,000 | 555,000 | — | 4 | 3.72 | — | — | |||||||||||||||||||||
2015(1) | Fixed price swap | 10,000 | 900,000 | 4.46 | — | — | — | — | |||||||||||||||||||||
2015 | Fixed price swap | 400 | 146,000 | 4 | — | — | — | — | |||||||||||||||||||||
2015 | Fixed price swap | 2,500 | 912,500 | 4.06 | — | — | — | — | |||||||||||||||||||||
2015 | Protective spread | 2,600 | 949,000 | 4 | — | 3.25 | — | — | |||||||||||||||||||||
2015(1) | Producer three-way collar | 3,750 | 337,500 | — | 4.6 | 3.5 | — | 5.34 | |||||||||||||||||||||
2015 | Producer three-way collar | 2,000 | 760,000 | — | 4 | 3.25 | — | 4.58 | |||||||||||||||||||||
2016 | Protective spread | 2,000 | 732,000 | 4.11 | — | 3.25 | — | — | |||||||||||||||||||||
2016 | Producer three-way collar | 2,000 | 732,000 | — | 4 | 3.25 | — | 4.58 | |||||||||||||||||||||
_______________________________ | |||||||||||||||||||||||||||||
-1 | For the period January to March 2015. | ||||||||||||||||||||||||||||
Crude Oil | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||||||||||||||||||
As of March 31, 2014, the following crude derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | Floor | Short | Ceiling | ||||||||||||||||||||||
Daily | Notional | Fixed | (Long) | Put | (Short) | ||||||||||||||||||||||||
Volume (1) | Volume | Price | |||||||||||||||||||||||||||
(in Bbls) | |||||||||||||||||||||||||||||
2014 (2) | Fixed price swap | 300 | 27,300 | $ | 98.05 | $ | — | $ | — | $ | — | ||||||||||||||||||
2014 (2) | Fixed price swap | 550 | 50,050 | 95.15 | — | — | — | ||||||||||||||||||||||
2014 (2) | Fixed price swap | 900 | 81,900 | 93.21 | — | — | |||||||||||||||||||||||
2014 (3) | Fixed price swap | 750 | 138,000 | 90.35 | — | — | — | ||||||||||||||||||||||
2014 (3) | Fixed price swap | 200 | 36,800 | 93 | — | — | — | ||||||||||||||||||||||
2014 (3) | Fixed price swap | 350 | 64,400 | 91.55 | — | — | — | ||||||||||||||||||||||
2014 | Fixed price swap | 500 | 137,500 | 91.1 | — | — | — | ||||||||||||||||||||||
2014 | Fixed price swap | 250 | 68,750 | 90.77 | — | — | — | ||||||||||||||||||||||
2014 | Costless collar | 200 | 55,000 | — | 98 | — | 98 | ||||||||||||||||||||||
2014 (4) | Put spread | 200 | 24,400 | — | 93 | 73 | — | ||||||||||||||||||||||
2015 | Costless three-way collar | 400 | 146,000 | — | 85 | 70 | 96.5 | ||||||||||||||||||||||
2015 | Costless three-way collar | 345 | 126,100 | — | 85 | 65 | 97.8 | ||||||||||||||||||||||
2015 (5) | Costless three-way collar | 150 | 27,150 | — | 85 | 65 | 96.25 | ||||||||||||||||||||||
2015 (6) | Costless three-way collar | 50 | 9,200 | — | 85 | 65 | 96.25 | ||||||||||||||||||||||
2015 (5) | Put spread | 700 | 126,700 | — | 90 | 70 | — | ||||||||||||||||||||||
2015 | Put spread | 250 | 91,250 | — | 89 | 69 | — | ||||||||||||||||||||||
2015 (6) | Put spread | 600 | 110,400 | — | 87 | 67 | — | ||||||||||||||||||||||
2016 | Costless three-way collar | 275 | 100,600 | — | 85 | 65 | 95.1 | ||||||||||||||||||||||
2016 | Costless three-way collar | 330 | 120,780 | — | 80 | 65 | 97.35 | ||||||||||||||||||||||
2016 | Put spread | 550 | 201,300 | — | 85 | 65 | — | ||||||||||||||||||||||
2016 | Put spread | 300 | 109,800 | — | 85.5 | 65.5 | — | ||||||||||||||||||||||
2017 | Costless three-way collar | 280 | 102,200 | — | 80 | 65 | 97.25 | ||||||||||||||||||||||
2017 | Costless three-way collar | 242 | 88,150 | — | 80 | 60 | 98.7 | ||||||||||||||||||||||
2017 | Put spread | 500 | 182,500 | — | 82 | 62 | — | ||||||||||||||||||||||
2018 (7) | Put spread | 425 | 103,275 | — | 80 | 60 | — | ||||||||||||||||||||||
_______________________________ | |||||||||||||||||||||||||||||
-1 | Crude volumes hedged include oil, condensate and certain components of our NGLs production. | ||||||||||||||||||||||||||||
-2 | For the period April to June 2014. | ||||||||||||||||||||||||||||
-3 | For the period July to December 2014. | ||||||||||||||||||||||||||||
-4 | For the period September to December 2014. | ||||||||||||||||||||||||||||
-5 | For the period January to June 2015. | ||||||||||||||||||||||||||||
-6 | For the period July to December 2015. | ||||||||||||||||||||||||||||
-7 | For the period January to August 2018. | ||||||||||||||||||||||||||||
Natural Gas Liquids | ' | ||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||||||||||||||||||
As of March 31, 2014, the following NGLs derivative transactions were outstanding with the associated notional volumes and weighted average underlying hedge prices: | |||||||||||||||||||||||||||||
Settlement Period | Derivative Instrument | Average | Total of | Base | |||||||||||||||||||||||||
Daily | Notional | Fixed | |||||||||||||||||||||||||||
Volume | Volume | Price | |||||||||||||||||||||||||||
(in Bbls) | |||||||||||||||||||||||||||||
2014 | Fixed price swap | 250 | 68,750 | $ | 46.1 | ||||||||||||||||||||||||
2014 | Fixed price swap | 250 | 68,750 | 48.11 | |||||||||||||||||||||||||
Capital_Stock_Tables
Capital Stock (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Stockholders' Equity Note [Abstract] | ' | |||
Schedule of Issuances And Forfeitures Of Common Shares | ' | |||
The following table provides information regarding the issuances and forfeitures of common stock pursuant to the Company's 2006 Long-Term Stock Incentive Plan (the “2006 Plan”) for the periods indicated: | ||||
For the Three Months Ended March 31, 2014 | ||||
Other share issuances: | ||||
Restricted common shares granted | 533,840 | |||
Restricted common shares vested | 1,191,296 | |||
Common shares surrendered upon vesting (1) | 399,356 | |||
Common shares issued upon vesting of PBUs, net of shares surrendered for taxes | 472,189 | |||
__________________ | ||||
-1 | Represents common shares forfeited in connection with the payment of estimated withholding taxes on restricted common shares that vested during the period. | |||
Schedule of Auction Market Preferred Securities by Stock Series | ' | |||
Following a change in control, the Company will have the option to redeem the Series A Preferred Stock, in whole but not in part, within 90 days after the date on which the change in control occurs, for cash at the following prices per share, plus accrued and unpaid dividends (whether or not declared), up to the redemption date: | ||||
Redemption Date | Redemption | |||
Price | ||||
Prior to June 23, 2014 | $ | 25.25 | ||
On or after June 23, 2014 | $ | 25 | ||
Equity_Compensation_Plans_Tabl
Equity Compensation Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||
The table below provides a summary of PBUs as of the date indicated: | ||||||||
PBUs | Fair Value per Unit | |||||||
Unvested PBUs at December 31, 2013 | 1,065,734 | $ | 1.56 | |||||
Granted | 280,171 | 7.34 | ||||||
Vested (1) | (355,247 | ) | 1.56 | |||||
Forfeited | — | — | ||||||
Unvested PBUs at March 31, 2014 | 990,658 | $ | 3.19 | |||||
_________________________________ | ||||||||
-1 | The first tranche of the January 30, 2013 PBU grant vested on January 30, 2014 and settled at 200% based on the Company's share price appreciation compared to the peer group index. |
Interest_Expense_Tables
Interest Expense (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Interest Expense [Abstract] | ' | |||||||
Schedule Of Components Of Interest Expense | ' | |||||||
The following table summarizes the components of interest expense for the periods indicated: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Interest expense: | ||||||||
Cash and accrued | $ | 7,134 | $ | 900 | ||||
Amortization of deferred financing costs (1) | 733 | 78 | ||||||
Capitalized interest | (976 | ) | (369 | ) | ||||
Total interest expense | $ | 6,891 | $ | 609 | ||||
__________________ | ||||||||
-1 | The three months ended March 31, 2014 includes $556,000 of debt discount accretion related to the Notes. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | |||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share and share data) | ||||||||
Net loss attributable to common stockholders | $ | (1,965 | ) | $ | (4,586 | ) | ||
Weighted average common shares outstanding - basic | 58,204,532 | 63,864,527 | ||||||
Incremental shares from unvested restricted shares | — | — | ||||||
Incremental shares from outstanding PBUs | — | — | ||||||
Weighted average common shares outstanding - diluted | 58,204,532 | 63,864,527 | ||||||
Net income (loss) per share of common stock attributable to common stockholders: | ||||||||
Basic | $ | (0.03 | ) | $ | (0.07 | ) | ||
Diluted | $ | (0.03 | ) | $ | (0.07 | ) | ||
Common shares excluded from denominator as anti-dilutive: | ||||||||
Unvested restricted shares | 119,496 | 2,631,552 | ||||||
Stock options | — | 949,100 | ||||||
Unvested PBUs | — | 1,192,889 | ||||||
Total | 119,496 | 4,773,541 | ||||||
Statement_Of_Cash_Flows_Supple1
Statement Of Cash Flows - Supplemental Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||
Statement Of Cash Flows Supplemental Information | ' | |||||||
The following is a summary of the supplemental cash paid and non-cash transactions for the periods indicated: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Cash paid for interest, net of capitalized amounts | $ | (697 | ) | $ | 509 | |||
Non-cash transactions: | ||||||||
Capital expenditures excluded from accounts payable and accrued drilling costs | (299 | ) | (4,167 | ) | ||||
Capital expenditures excluded from accounts receivable | 4,077 | 929 | ||||||
Capital expenditures excluded from prepaid expenses | — | 24 | ||||||
Asset retirement obligation included in oil and natural gas properties | 28 | 100 | ||||||
Asset retirement obligation sold | — | (362 | ) | |||||
Application of advances to operators | 9,490 | 4,835 | ||||||
Other | 78 | (192 | ) | |||||
Property_Plant_And_Equipment_N
Property, Plant And Equipment (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Aug. 07, 2013 | Jun. 07, 2013 | Mar. 31, 2013 | Aug. 07, 2013 | Nov. 15, 2013 | Apr. 19, 2013 | Oct. 02, 2013 | Jun. 27, 2013 | Jul. 02, 2013 | Sep. 30, 2010 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 07, 2013 | |
Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | ||||
Hunton Divestiture | Chesapeake Assets | Chesapeake Assets | Oklahoma Oil and Gas Leasehold Interests | WEHLU Purchase Agreement | East Texas | East Texas | Hunton Joint Venture | Hunton Joint Venture | Atinum Joint Venture | Atinum Joint Venture | Atinum Joint Venture | Atinum Joint Venture | General and administrative expenses | ||||
acre | well | acre | acre | acre | acre | well | Maximum | Maximum | Chesapeake Assets | ||||||||
acre | well | well | |||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount reclassified from unproved to proved properties | $194,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of unproved properties | ' | 896,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net acres (acres) | ' | ' | ' | 76,000 | 157,000 | ' | 1,850 | 24,000 | ' | 16,300 | ' | 12,800 | ' | ' | ' | ' | ' |
Productive conventional wells (wells) | ' | ' | ' | ' | 206 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjusted purchase price | ' | ' | ' | ' | 69,400,000 | ' | ' | 177,800,000 | ' | ' | ' | ' | 70,000,000 | ' | ' | ' | ' |
Transaction and integration costs | ' | ' | ' | ' | ' | ' | ' | 286,000 | ' | ' | 133,000 | ' | ' | ' | ' | ' | 2,100,000 |
Fair market valuation | ' | ' | ' | ' | 113,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax attributes associated with completion of asset valuation | ' | ' | ' | ' | ' | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bargain purchase gain | ' | ' | ' | ' | 27,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire oil and gas property | 341,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 11,800,000 | ' | ' | ' | ' | ' | ' |
Total consideration | ' | ' | ' | 57,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working interest in wells (percentage) | ' | ' | ' | ' | ' | ' | ' | 98.30% | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' |
Net revenue interest in wells | ' | ' | ' | ' | ' | ' | ' | 80.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preliminary assessment of the fair value of assets acquired | ' | ' | ' | ' | ' | ' | ' | 176,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross acres (acres) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,800 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from (payment related to) sale of oil and natural gas properties | ' | ' | ' | ' | ' | ' | ' | ' | 42,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of reimbursements for lease bonuses and third party lease costs up to 20 million (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Percentage of lease operating expenses covered (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' |
Term of development program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Total wells to be drilled (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60 | ' |
Total reduction in minimum wells to be drilled (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' |
Required exploratory wells drilled net productive to be drilled in current fiscal year (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51 | ' | ' |
Total revised gross wells on production in current year (wells) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57 | ' |
Impairment of Oil and Gas Properties | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property_Plant_And_Equipment_S
Property, Plant And Equipment (Schedule of Capitalized Costs of Unproved Properties Excluded from Amortization) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Unproved properties, excluded from amortization: | ' | ' |
Drilling in progress costs | $2,551 | $4,774 |
Acreage acquisition costs | 90,638 | 86,097 |
Capitalized interest | 6,162 | 5,349 |
Total unproved properties excluded from amortization | $99,351 | $96,220 |
Property_Plant_And_Equipment_A
Property, Plant And Equipment (Average Sales Price and Production Costs Per Unit of Production) (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' | ' | ||
Impairment recorded (pre-tax) (in thousands) | $0 | $0 | $0 | ||
Henry Hub natural gas price (per MMBtu) | ' | ' | ' | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' | ' | ||
Average price per Mcfe | ' | 3.99 | [1] | 2.95 | [1] |
West Texas Intermediate oil price (per Bbl) | ' | ' | ' | ||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | ' | ' | ' | ||
Average price per Mcfe | ' | 94.92 | [1] | 89.17 | [1] |
[1] | For the respective periods, oil and natural gas prices are calculated using the trailing 12-month unweighted arithmetic average of the first-day-of-the-month prices based on Henry Hub natural gas prices and West Texas Intermediate oil prices. |
Property_Plant_And_Equipment_S1
Property, Plant And Equipment (Schedule of Pro Forma Information) (Details) (Gastar Exploration USA, WEHLU Purchase Agreement, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Gastar Exploration USA | WEHLU Purchase Agreement | ' |
Business Acquisition [Line Items] | ' |
Revenues | $24,623 |
Net Loss | ($7,699) |
Basic | ($0.13) |
Diluted | ($0.13) |
LongTerm_Debt_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 26, 2014 | Mar. 31, 2014 | Oct. 18, 2013 | Oct. 17, 2013 | Jun. 07, 2013 | Mar. 31, 2014 | Dec. 09, 2013 | Jun. 07, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 07, 2013 | Jun. 07, 2013 | Jun. 07, 2013 | Jun. 07, 2013 | Jun. 07, 2013 | Oct. 29, 2013 | Mar. 31, 2013 | Oct. 28, 2009 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Oct. 29, 2013 | Nov. 15, 2013 | 15-May-13 | Oct. 18, 2013 | Oct. 17, 2013 |
Second Amended and Restated Revolving Credit Facility | Senior Secured Notes Due 2018 | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | |||
Senior Secured Notes | Federal Funds Rate | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Second Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Amended and Restated Revolving Credit Facility | Senior Secured Notes Due 2018 | Senior Secured Notes Due 2018 | Senior Secured Notes Due 2018 | Senior Secured Notes Due 2018 | ||||||
Minimum | Maximum | Federal Funds Rate | Prime Rate | Prime Rate | Eurodollar Rate | Eurodollar Rate | Prime Rate | Prime Rate | Prime Rate | LIBO Rate | LIBO Rate | LIBO Rate | Senior Secured Notes | Senior Secured Notes | Senior Secured Notes | Senior Secured Notes | ||||||||||||||
Each quarter thereafter | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility borrowing base | ' | ' | $120,000,000 | ' | ' | ' | ' | $120,000,000 | $100,000,000 | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $160,000,000 | $47,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate description | ' | ' | ' | ' | ' | ' | 'federal funds rate plus | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'prime rate | ' | ' | 'LIBO | ' | ' | ' | ' | ' | ' |
Applicable interest margin (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500.00% | 1.00% | 2.00% | 2.00% | 3.00% | ' | ' | ' | ' | 1.00% | 2.00% | ' | 2.50% | 3.50% | ' | ' | ' | ' |
Annual commitment fee (percentage) | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock foreign subsidiary pledged as collateral for credit facility (percentage) | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility covenant compliance Current Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility covenant compliance indebtedness to EBITDA Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility covenant compliance EBITDA to Interest Expense Ratio on a four quarter rolling basis | ' | ' | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | 200,000,000 | 325,000,000 | 200,000,000 |
Aggregate amount of cash dividends permitted to be paid to preferred stockholders | ' | ' | ' | ' | 20,000,000 | 12,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing availability | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in adjusted consolidated net tangibles assets | ' | ' | ' | ' | ' | ' | ' | 17.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.63% | ' | ' |
Net proceeds received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 312,300,000 | ' | ' | ' |
Percentage of aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' |
Long-term debt | 313,550,000 | 312,994,000 | ' | 313,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discounts | ' | ' | ' | $11,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Amount reclassified from unproved to proved properties | $194,000 | ' |
Impairment of unproved properties | ' | 896,000 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair value of long-term debt | $334,800,000 | ' |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Measurements, Recurring and Nonrecurring) (Details) (Fair Value, Measurements, Recurring, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Assets [Abstract] | ' | ' |
Assets, Commodity derivative contracts | $6,662 | $7,545 |
Liabilities: | ' | ' |
Liabilities, Commodity derivative contracts | -6,042 | -3,781 |
Total | 27,533 | 36,157 |
Level 1 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Assets, Commodity derivative contracts | 0 | 0 |
Liabilities: | ' | ' |
Liabilities, Commodity derivative contracts | 0 | 0 |
Total | 26,913 | 32,393 |
Level 2 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Assets, Commodity derivative contracts | 0 | 0 |
Liabilities: | ' | ' |
Liabilities, Commodity derivative contracts | 0 | 0 |
Total | 0 | 0 |
Level 3 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Assets, Commodity derivative contracts | 6,662 | 7,545 |
Liabilities: | ' | ' |
Liabilities, Commodity derivative contracts | -6,042 | -3,781 |
Total | 620 | 3,764 |
Cash and Cash Equivalents | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Cash and cash equivalents | 26,913 | 32,393 |
Cash and Cash Equivalents | Level 1 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Cash and cash equivalents | 26,913 | 32,393 |
Cash and Cash Equivalents | Level 2 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents | Level 3 | ' | ' |
Derivative Assets [Abstract] | ' | ' |
Cash and cash equivalents | $0 | $0 |
Fair_Value_Measurements_Net_Ch
Fair Value Measurements (Net Change in the Assets and Liabilities Measured at Fair Value on a Recurring Basis and Included in the Level 3 Fair Value Category) (Details) (Level 3, Commodity, Fair Value, Measurements, Recurring, USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
Balance at beginning of period | $3,764 | $6,465 | ||
Total losses included in earnings | -6,514 | -4,002 | ||
Purchases | 71 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 3,299 | [1] | -5,608 | [1] |
Transfers in and (out) of Level 3 | 0 | 0 | ||
Balance at end of period | 620 | -3,145 | ||
Loss on commodity derivatives contracts | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ||
The amount of total losses for the period included in earnings attributable to the change in mark to market of commodity derivatives contracts still held at March 31, 2014 and 2013 | ($3,155) | ($9,637) | ||
[1] | Included in loss (gain) on commodity derivatives contracts on the condensed consolidated statement of operations. |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activity (Narrative) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Loss on commodity derivatives contracts | ($6,514) | ($4,002) |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activity (Schedule of Notional Amounts and Weighted Average Underlying Hedge Prices of Outstanding Derivative Positions) (Details) | 3 Months Ended | |
Mar. 31, 2014 | ||
MMBTU | ||
Natural Gas | 2014 | Short calls | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 687,500 | |
Ceiling (Short) (Price per MMBtu) | 4.59 | |
Natural Gas | 2015 | Protective Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,600 | |
Total of Notional Volume (MMBtu's or Bbls) | 949,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4 | |
Short Put (Price per MMBtu) | 3.25 | |
Natural Gas | 2016 | Protective Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 732,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.11 | |
Short Put (Price per MMBtu) | 3.25 | |
Natural Gas | 2016 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 732,000 | |
Floor (Long) (Price per MMBtu) | 4 | |
Short Put (Price per MMBtu) | 3.25 | |
Ceiling (Short) (Price per MMBtu) | 4.58 | |
Crude Oil | 2014 | Costless collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 200 | |
Total of Notional Volume (MMBtu's or Bbls) | 55,000 | |
Floor (Long) (Price per MMBtu) | 98 | |
Ceiling (Short) (Price per MMBtu) | 98 | |
Crude Oil | 2015 | Costless Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 400 | |
Total of Notional Volume (MMBtu's or Bbls) | 146,000 | |
Floor (Long) (Price per MMBtu) | 85 | |
Short Put (Price per MMBtu) | 70 | |
Ceiling (Short) (Price per MMBtu) | 96.5 | |
Crude Oil | 2016 | Costless Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 275 | |
Total of Notional Volume (MMBtu's or Bbls) | 100,600 | |
Floor (Long) (Price per MMBtu) | 85 | |
Short Put (Price per MMBtu) | 65 | |
Ceiling (Short) (Price per MMBtu) | 95.1 | |
Crude Oil | 2017 | Costless Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 280 | |
Total of Notional Volume (MMBtu's or Bbls) | 102,200 | |
Floor (Long) (Price per MMBtu) | 80 | |
Short Put (Price per MMBtu) | 65 | |
Ceiling (Short) (Price per MMBtu) | 97.25 | |
Fixed Price Swap 1 | Natural Gas | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 10,222 | |
Total of Notional Volume (MMBtu's or Bbls) | 2,809,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.06 | |
Fixed Price Swap 1 | Natural Gas | 2015 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 10,000 | [1] |
Total of Notional Volume (MMBtu's or Bbls) | 900,000 | [1] |
Base Fixed Price (Price per MMbtu or Bbl) | 4.46 | [1] |
Fixed Price Swap 1 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 300 | [2] |
Total of Notional Volume (MMBtu's or Bbls) | 27,300 | [2] |
Base Fixed Price (Price per MMbtu or Bbl) | 98.05 | [2] |
Fixed Price Swap 1 | Natural Gas Liquids | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 250 | |
Total of Notional Volume (MMBtu's or Bbls) | 68,750 | |
Base Fixed Price (Price per MMbtu or Bbl) | 46.1 | |
Fixed Price Swap 2 | Natural Gas | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 550,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 3.72 | |
Fixed Price Swap 2 | Natural Gas | 2015 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 400 | |
Total of Notional Volume (MMBtu's or Bbls) | 146,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4 | |
Fixed Price Swap 2 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 550 | [2] |
Total of Notional Volume (MMBtu's or Bbls) | 50,050 | [2] |
Base Fixed Price (Price per MMbtu or Bbl) | 95.15 | [2] |
Fixed Price Swap 2 | Natural Gas Liquids | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 250 | |
Total of Notional Volume (MMBtu's or Bbls) | 68,750 | |
Base Fixed Price (Price per MMbtu or Bbl) | 48.11 | |
Fixed Price Swap 3 | Natural Gas | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 550,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 3.98 | |
Fixed Price Swap 3 | Natural Gas | 2015 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 912,500 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.06 | |
Fixed Price Swap 3 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 900 | [2] |
Total of Notional Volume (MMBtu's or Bbls) | 81,900 | [2] |
Base Fixed Price (Price per MMbtu or Bbl) | 93.21 | [2] |
Fixed Price Swap 4 | Natural Gas | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 550,000 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.07 | |
Fixed Price Swap 4 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 750 | [3] |
Total of Notional Volume (MMBtu's or Bbls) | 138,000 | [3] |
Base Fixed Price (Price per MMbtu or Bbl) | 90.35 | [3] |
Fixed Price Swap 5 | Natural Gas | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,655 | |
Total of Notional Volume (MMBtu's or Bbls) | 730,700 | |
Base Fixed Price (Price per MMbtu or Bbl) | 4.32 | |
Fixed Price Swap 5 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 200 | [3] |
Total of Notional Volume (MMBtu's or Bbls) | 36,800 | [3] |
Base Fixed Price (Price per MMbtu or Bbl) | 93 | [3] |
Fixed Price Swap 6 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 350 | [3] |
Total of Notional Volume (MMBtu's or Bbls) | 64,400 | [3] |
Base Fixed Price (Price per MMbtu or Bbl) | 91.55 | [3] |
Fixed Price Swap 7 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 500 | |
Total of Notional Volume (MMBtu's or Bbls) | 137,500 | |
Base Fixed Price (Price per MMbtu or Bbl) | 91.1 | |
Fixed Price Swap 8 | Crude Oil | 2014 | Fixed price swap | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 250 | |
Total of Notional Volume (MMBtu's or Bbls) | 68,750 | |
Base Fixed Price (Price per MMbtu or Bbl) | 90.77 | |
Costless Collar 1 | Natural Gas | 2014 | Costless collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 3,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 825,000 | |
Floor (Long) (Price per MMBtu) | 4 | |
Ceiling (Short) (Price per MMBtu) | 4.36 | |
Costless Collar 2 | Natural Gas | 2014 | Costless collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 5,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 1,375,000 | |
Floor (Long) (Price per MMBtu) | 4 | |
Ceiling (Short) (Price per MMBtu) | 4.55 | |
Costless Collar 3 | Natural Gas | 2014 | Costless collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,500 | |
Total of Notional Volume (MMBtu's or Bbls) | 687,500 | |
Floor (Long) (Price per MMBtu) | 4 | |
Ceiling (Short) (Price per MMBtu) | 4.71 | |
Put Spread 1 | Natural Gas | 2014 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 555,000 | |
Floor (Long) (Price per MMBtu) | 4 | |
Short Put (Price per MMBtu) | 3.72 | |
Ceiling (Short) (Price per MMBtu) | 0 | |
Put Spread 1 | Crude Oil | 2014 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 200 | [4] |
Total of Notional Volume (MMBtu's or Bbls) | 24,400 | [4] |
Floor (Long) (Price per MMBtu) | 93 | [4] |
Short Put (Price per MMBtu) | 73 | [4] |
Put Spread 1 | Crude Oil | 2015 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 700 | [5] |
Total of Notional Volume (MMBtu's or Bbls) | 126,700 | [5] |
Floor (Long) (Price per MMBtu) | 90 | [5] |
Short Put (Price per MMBtu) | 70 | [5] |
Put Spread 1 | Crude Oil | 2016 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 550 | |
Total of Notional Volume (MMBtu's or Bbls) | 201,300 | |
Floor (Long) (Price per MMBtu) | 85 | |
Short Put (Price per MMBtu) | 65 | |
Put Spread 1 | Crude Oil | 2017 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 500 | |
Total of Notional Volume (MMBtu's or Bbls) | 182,500 | |
Floor (Long) (Price per MMBtu) | 82 | |
Short Put (Price per MMBtu) | 62 | |
Put Spread 2 | Crude Oil | 2015 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 250 | |
Total of Notional Volume (MMBtu's or Bbls) | 91,250 | |
Floor (Long) (Price per MMBtu) | 89 | |
Short Put (Price per MMBtu) | 69 | |
Ceiling (Short) (Price per MMBtu) | 0 | |
Put Spread 2 | Crude Oil | 2016 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 300 | |
Total of Notional Volume (MMBtu's or Bbls) | 109,800 | |
Floor (Long) (Price per MMBtu) | 85.5 | |
Short Put (Price per MMBtu) | 65.5 | |
Put Spread 2 | Crude Oil | 2018 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 425 | [6] |
Total of Notional Volume (MMBtu's or Bbls) | 103,275 | [6] |
Floor (Long) (Price per MMBtu) | 80 | [6] |
Short Put (Price per MMBtu) | 60 | [6] |
Put Spread 3 | Crude Oil | 2015 | Put Spread | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 600 | [7] |
Total of Notional Volume (MMBtu's or Bbls) | 110,400 | [7] |
Floor (Long) (Price per MMBtu) | 87 | [7] |
Short Put (Price per MMBtu) | 67 | [7] |
Ceiling (Short) (Price per MMBtu) | 0 | [7] |
Producer Three Way Collar 1 | Natural Gas | 2015 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 3,750 | [1] |
Total of Notional Volume (MMBtu's or Bbls) | 337,500 | [1] |
Floor (Long) (Price per MMBtu) | 4.6 | [1] |
Short Put (Price per MMBtu) | 3.5 | [1] |
Ceiling (Short) (Price per MMBtu) | 5.34 | [1] |
Producer Three Way Collar 2 | Natural Gas | 2015 | Producer Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 2,000 | |
Total of Notional Volume (MMBtu's or Bbls) | 760,000 | |
Floor (Long) (Price per MMBtu) | 4 | |
Short Put (Price per MMBtu) | 3.25 | |
Ceiling (Short) (Price per MMBtu) | 4.58 | |
Costless Three Way Collar 2 | Crude Oil | 2015 | Costless Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 345 | |
Total of Notional Volume (MMBtu's or Bbls) | 126,100 | |
Floor (Long) (Price per MMBtu) | 85 | |
Short Put (Price per MMBtu) | 65 | |
Ceiling (Short) (Price per MMBtu) | 97.8 | |
Costless Three Way Collar 2 | Crude Oil | 2016 | Costless Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 330 | |
Total of Notional Volume (MMBtu's or Bbls) | 120,780 | |
Floor (Long) (Price per MMBtu) | 80 | |
Short Put (Price per MMBtu) | 65 | |
Ceiling (Short) (Price per MMBtu) | 97.35 | |
Costless Three Way Collar 2 | Crude Oil | 2017 | Costless Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 242 | |
Total of Notional Volume (MMBtu's or Bbls) | 88,150 | |
Floor (Long) (Price per MMBtu) | 80 | |
Short Put (Price per MMBtu) | 60 | |
Ceiling (Short) (Price per MMBtu) | 98.7 | |
Cost Less Three Way Collar 3 | Crude Oil | 2015 | Costless Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 150 | [5] |
Total of Notional Volume (MMBtu's or Bbls) | 27,150 | [5] |
Floor (Long) (Price per MMBtu) | 85 | [5] |
Short Put (Price per MMBtu) | 65 | [5] |
Ceiling (Short) (Price per MMBtu) | 96.25 | [5] |
Cost Less Three Way Collar 4 | Crude Oil | 2015 | Costless Three Way Collar | ' | |
Derivative [Line Items] | ' | |
Average Daily Volume (MMBtus or Bbls) | 50 | [7] |
Total of Notional Volume (MMBtu's or Bbls) | 9,200 | [7] |
Floor (Long) (Price per MMBtu) | 85 | [7] |
Short Put (Price per MMBtu) | 65 | [7] |
Ceiling (Short) (Price per MMBtu) | 96.25 | [7] |
[1] | For the period January to March 2015. | |
[2] | For the period April to June 2014. | |
[3] | For the period July to December 2014. | |
[4] | For the period September to December 2014. | |
[5] | For the period January to June 2015. | |
[6] | For the period January to August 2018. | |
[7] | For the period July to December 2015. |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activity Schedule of Unamortized Put Premium Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Current commodity derivative premium put payable | $728 | $145 |
Long-term commodity derivative premium payable | 6,417 | 7,000 |
Total unamortized put premium liabilities | $7,145 | $7,145 |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activity (Schedule of Future Amortization of Put Premium) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
September to December 2014 | $145 | ' |
January to December 2015 | 2,298 | ' |
January to December 2016 | 2,408 | ' |
January to December 2017 | 1,460 | ' |
January to August 2018 | 834 | ' |
Total unamortized put premium liabilities | $7,145 | $7,145 |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activity (Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Loss on commodity derivatives contracts | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Amount of Gain (Loss) Recognized in Income on Derivatives | ($6,514) | ($4,002) | ' |
Derivatives not designated as hedging instruments | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Total derivatives not designated as hedging instruments | 620 | ' | 3,764 |
Amount of Gain (Loss) Recognized in Income on Derivatives | -6,514 | -4,002 | ' |
Derivatives not designated as hedging instruments | Current assets | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Commodity derivative contracts, Assets | 266 | ' | 0 |
Derivatives not designated as hedging instruments | Other assets | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Commodity derivative contracts, Assets | 6,396 | ' | 7,545 |
Derivatives not designated as hedging instruments | Current liabilities | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Commodity derivative contracts, Liabilities | -5,876 | ' | -3,403 |
Derivatives not designated as hedging instruments | Long-term liabilities | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' |
Commodity derivative contracts, Liabilities | ($166) | ' | ($378) |
Capital_Stock_Narrative_Detail
Capital Stock (Narrative) (Details) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Nov. 13, 2013 | Mar. 31, 2014 | Jun. 07, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | 3-May-14 | 1-May-14 | Nov. 07, 2013 | Oct. 29, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 01, 2013 | Dec. 31, 2013 | Oct. 25, 2013 | Oct. 24, 2013 | 24-May-11 | Mar. 31, 2014 | Mar. 31, 2014 | |
At The Market Sales Agreement | Chesapeake Energy Corporation | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Gastar Exploration USA | Parent's 2006 Long-Term Stock Incentive Plan | |||||
At The Market Sales Agreement | At The Market Sales Agreement | Series A Preferred Stock | |||||||||||||||||||
Subsequent Event | Subsequent Event | At The Market Sales Agreement | |||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares authorized for issuance (shares) | 275,000,000 | ' | 275,000,000 | 275,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 275,000,000 | 1,000 | 1,000 | ' | ' |
Common stock, par value | $0.00 | ' | $0.00 | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' |
Common shares issued (shares) | 61,818,331 | ' | 61,211,658 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750 | ' | ' | 750 | ' | ' |
Common stock, shares outstanding | 61,818,331 | ' | 61,211,658 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750 | ' | ' | ' | ' | ' |
Common shares reserved for the exercise of stock options (shares) | 874,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,368,487 |
Payment to settle legal claim | ' | ' | ' | ' | ' | $10,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for repurchase of outstanding common shares | ' | ' | ' | ' | ' | 9,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of outstanding common shares (shares) | ' | ' | ' | ' | ' | 6,781,768 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares authorized for issuance (shares) | 40,000,000,000 | ' | 40,000,000,000 | ' | ' | ' | 10,000,000 | 10,000,000 | ' | ' | ' | ' | 10,000,000 | 10,000,000 | ' | ' | 40,000,000 | ' | 10,000,000 | ' | ' |
Preferred stock par value per share | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | ' | ' | ' | $0.01 | $0.01 | $0.01 | ' | ' | ' | ' | $0.01 | ' | ' |
Shares issued of Series A Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | 7,167 | 42,547 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,126 | ' |
Proceeds from issuance of preferred stock, net of issuance costs | 886,000 | 0 | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 865,000 | ' |
Preferred stock, shares sold (shares) | ' | ' | ' | ' | ' | ' | 3,995,286 | 3,958,160 | ' | ' | 2,140,000 | 2,000,000 | 2,140,000 | 2,140,000 | ' | ' | ' | ' | ' | 3,995,286 | ' |
Liquidation Preference | $25 | ' | ' | ' | ' | ' | $25 | $25 | ' | ' | ' | $25 | $25 | $25 | ' | ' | ' | ' | ' | ' | ' |
Period after change in control to redeem preferred stock (days) | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, dividend rate, percentage (percentage) | ' | ' | ' | ' | ' | ' | 8.63% | ' | ' | ' | ' | 10.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends on preferred stock | -3,576,000 | -2,130,000 | ' | ' | ' | ' | -2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock redemption price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional shares under option to purchase shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000 | ' | ' | ' | ' | ' | ' |
Net proceeds expected from offering of Series B Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option to convert shares of Series B Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.5207 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend rate upon change in control (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recognized dividend expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Capital_Stock_Schedule_of_Issu
Capital Stock (Schedule of Issuances and Forfeitures of Common Shares) (Details) (Unvested restricted shares) | 3 Months Ended | |
Mar. 31, 2014 | ||
Unvested restricted shares | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Restricted common shares granted (shares) | 533,840 | |
Restricted common shares vested (shares) | 1,191,296 | |
Common shares forfeited (shares) | 399,356 | [1] |
Common shares issued upon vesting of PBUs, net of shares surrendered for taxes | 472,189 | |
[1] | Represents common shares forfeited in connection with the payment of estimated withholding taxes on restricted common shares that vested during the period. |
Capital_Stock_Schedule_of_Pref
Capital Stock (Schedule of Preferred Stock Redemption Dates) (Details) (USD $) | Mar. 31, 2014 |
Auction Market Preferred Securities, Stock Series [Line Items] | ' |
Redemption Price | $25 |
Prior to June 23, 2014 | ' |
Auction Market Preferred Securities, Stock Series [Line Items] | ' |
Redemption Price | $25.25 |
On or after June 23, 2014 | ' |
Auction Market Preferred Securities, Stock Series [Line Items] | ' |
Redemption Price | $25 |
Equity_Compensation_Plans_Narr
Equity Compensation Plans (Narrative) (Details) (Unvested PBUs, USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Compensation expense | $371,091 |
2006 Long-Term Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Settlement of PBU's (percentage) | 100.00% |
2006 Long-Term Stock Incentive Plan | Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Settlement of PBU's (percentage) | 0.00% |
2006 Long-Term Stock Incentive Plan | Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Settlement of PBU's (percentage) | 200.00% |
Equity_Compensation_Plans_Summ
Equity Compensation Plans (Summary of PBUs) (Details) (Unvested PBUs, USD $) | 3 Months Ended | |
Mar. 31, 2014 | ||
Unvested PBUs | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | |
Unvested PBUs at December 31, 2013 | 1,065,734 | |
Granted | 280,171 | |
Vested (1) | -355,247 | [1] |
Forfeited | 0 | |
Unvested PBUs at March 31, 2014 | 990,658 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | |
Fair Value per Unit, Unvested PBUs at December 31, 2013 | $1.56 | |
Fair Value per Unit, Granted | $7.34 | |
Fair Value per Unit, Vested | $1.56 | [1] |
Fair value per unit, Forfeited | $0 | |
Fair Value per Unit, Unvested PBUs at March 31, 2014 | $3.19 | |
[1] | The first tranche of the January 30, 2013 PBU grant vested on January 30, 2014 and settled at 200% based on the Company's share price appreciation compared to the peer group index. |
Interest_Expense_Schedule_of_C
Interest Expense (Schedule of Components of Interest Expense) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Interest Expense [Abstract] | ' | ' | ||
Cash and accrued | $7,134 | $900 | ||
Amortization of deferred financing costs | 733 | [1] | 78 | [1] |
Capitalized interest | -976 | -369 | ||
Total interest expense | 6,891 | 609 | ||
Accretion of debt discount | $556 | ' | ||
[1] | The three months ended MarchB 31, 2014 includes $556,000 of debt discount accretion related to the Notes. |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Net loss attributable to common stockholders | ($1,965) | ($4,586) |
Weighted average common shares outstanding basic (shares) | 58,204,532 | 63,864,527 |
Weighted average common shares outstanding diluted (shares) | 58,204,532 | 63,864,527 |
Basic (dollars per share) | ($0.03) | ($0.07) |
Diluted (dollars per share) | ($0.03) | ($0.07) |
Common shares excluded from denominator as anti-dilutive (shares) | 119,496 | 4,773,541 |
Unvested restricted shares | ' | ' |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0 | 0 |
Common shares excluded from denominator as anti-dilutive (shares) | 119,496 | 2,631,552 |
Stock options | ' | ' |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Common shares excluded from denominator as anti-dilutive (shares) | 0 | 949,100 |
Unvested PBUs | ' | ' |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Incremental Common Shares Attributable to Share-based Payment Arrangements | 0 | 0 |
Common shares excluded from denominator as anti-dilutive (shares) | 0 | 1,192,889 |
Commitments_And_Contingencies_
Commitments And Contingencies (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||
Dec. 17, 2010 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 22, 2014 | Aug. 07, 2013 | |
Gastar Exploration Ltd vs US Speciality Ins Co and Axis Ins Co | Eagle Natrium LLC In the Court of Common Pleas of Allegheny County Pennsylvania | Eagle Natrium LLC In the Court of Common Pleas of Allegheny County Pennsylvania | Eagle Natrium LLC In the Court of Common Pleas of Allegheny County Pennsylvania | Gastar Exploration USA | |
well | Mcfe | Subsequent Event | Gastar Exploration USA Inc v Williams Ohio Valley Midstream LLC | ||
acre | well | ||||
Mcfe | |||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Counterclaim for damages | ' | ' | ' | ' | $612,000 |
Settlement aggregate amount | 21,200,000 | ' | ' | ' | ' |
Combined coverage limits under directors and officers insurance | $20,000,000 | ' | ' | ' | ' |
Number of wells drilled in which Eagle Natrium LLC is seeking to enjoin | ' | ' | ' | 3 | ' |
Gross acres (acres) | ' | 3,300 | ' | ' | ' |
Gross horizontal wells drilled without incident | ' | 15 | ' | ' | ' |
Proved undeveloped well locations, proved undeveloped reserves (Bcfe) | ' | ' | 39,500 | ' | ' |
Percentage of total proved reserves | ' | ' | 12.00% | ' | ' |
Statement_Of_Cash_Flows_Supple2
Statement Of Cash Flows - Supplemental Information (Schedule of Supplemental Cash Paid and Non-cash Transactions) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Cash paid for interest, net of capitalized amounts | ($697) | $509 |
Non-cash transactions: | ' | ' |
Capital expenditures excluded from accounts payable and accrued drilling costs | -299 | -4,167 |
Capital expenditures excluded from accounts receivable | 4,077 | 929 |
Capital expenditures excluded from prepaid expenses | 0 | 24 |
Asset retirement obligation included in oil and natural gas properties | 28 | 100 |
Asset retirement obligation sold | 0 | -362 |
Application of advances to operators | 9,490 | 4,835 |
Other | $78 | ($192) |