Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information | |
Entity Registrant Name | Cobalt International Energy, Inc. |
Entity Central Index Key | 1471261 |
Document Type | 10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 411,288,613 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $220,512 | $1,425,815 |
Joint interest and other receivables | 109,853 | 61,592 |
Prepaid expenses and other current assets | 26,423 | 23,941 |
Inventory | 83,225 | 65,286 |
Short-term restricted funds | 228,533 | 90,440 |
Short-term investments | 1,221,552 | 789,668 |
Total current assets | 1,890,098 | 2,456,742 |
Property, plant, and equipment: | ||
Oil and gas properties, successful efforts method of accounting, net of accumulated depletion of $-0- | 1,411,999 | 1,094,464 |
Other property and equipment, net of accumulated depreciation and amortization of $3,865 and $2,533, as of September 30, 2013 and December 31, 2012, respectively | 11,627 | 5,292 |
Total property, plant, and equipment, net | 1,423,626 | 1,099,756 |
Long-term restricted funds | 166,701 | 395,652 |
Long-term investments | 200,597 | 36,267 |
Other assets | 34,809 | 23,042 |
Total assets | 3,715,831 | 4,011,459 |
Current liabilities: | ||
Trade and other accounts payable | 10,418 | 67,876 |
Accrued liabilities | 163,056 | 44,061 |
Short-term contractual obligations | 49,019 | 49,019 |
Total current liabilities | 222,493 | 160,956 |
Long-term debt | 1,024,445 | 991,191 |
Long-term contractual obligations | 124,901 | 168,238 |
Other long-term liabilities | 2,686 | 1,856 |
Total long-term liabilities | 1,152,032 | 1,161,285 |
Stockholders' Equity: | ||
Common stock, $0.01 par value per share; 2,000,000,000 shares authorized, 406,943,582 and 406,596,884 issued and outstanding as of September 30, 2013 and December 31, 2012, respectively | 4,069 | 4,066 |
Additional paid-in capital | 3,631,977 | 3,612,987 |
Accumulated deficit during the development stage | -1,294,740 | -927,835 |
Total stockholders' equity | 2,341,306 | 2,689,218 |
Total liabilities and stockholders' equity | $3,715,831 | $4,011,459 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ||
Oil and gas properties, successful efforts method of accounting, accumulated depletion (in dollars) | $0 | $0 |
Other property and equipment, accumulated depreciation and amortization (in dollars) | $3,865 | $2,533 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 406,943,582 | 406,596,884 |
Common stock, shares outstanding | 406,943,582 | 406,596,884 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | 95 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Condensed Consolidated Statements of Operations | |||||
Oil and gas revenue | $0 | ||||
Operating costs and expenses: | |||||
Seismic and exploration | 14,555 | 6,327 | 41,430 | 35,682 | 431,603 |
Dry hole expense and impairment | 108,321 | 15,041 | 212,199 | 131,720 | 450,931 |
General and administrative | 22,347 | 18,916 | 68,507 | 52,239 | 374,448 |
Depreciation and amortization | 440 | 269 | 1,345 | 782 | 6,097 |
Total operating costs and expenses | 145,663 | 40,553 | 323,481 | 220,423 | 1,263,079 |
Operating income (loss) | -145,663 | -40,553 | -323,481 | -220,423 | -1,263,079 |
Other income (expense): | |||||
Gain on sale of assets | 2,993 | 2,993 | |||
Interest income | 1,465 | 1,339 | 4,610 | 3,955 | 19,653 |
Interest expense | -15,802 | -51,027 | -54,307 | ||
Total other income (expense) | -14,337 | 1,339 | -43,424 | 3,955 | -31,661 |
Net income (loss) before income tax | -160,000 | -39,214 | -366,905 | -216,468 | -1,294,740 |
Income tax expense | 0 | ||||
Net income (loss) | ($160,000) | ($39,214) | ($366,905) | ($216,468) | ($1,294,740) |
Basic and diluted income (loss) per share (in dollars per share) | ($0.39) | ($0.10) | ($0.90) | ($0.54) | |
Basic and diluted weighted average common shares outstanding (in shares) | 406,941,392 | 406,543,628 | 406,803,860 | 402,272,534 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Changes in Partners' Capital and Stockholders' Equity (USD $) | Total | Class A Limited Partners | Class B Limited Partners | Class C Limited Partners | Common Stock | Additional Paid-in Capital | Accumulated Deficit During Development Stage |
In Thousands | |||||||
Balance (Inception) at Nov. 10, 2005 | |||||||
Class A limited partners' contributions | $1,256,738 | $1,256,738 | |||||
Class B & C limited partners' equity compensation | 7,718 | 6,984 | 734 | ||||
Common stock issued upon corporate reorganization | -1,256,738 | -6,984 | -734 | 2,743 | 1,261,713 | ||
Common stock issued at initial public offering, net of offering costs | 807,259 | 630 | 806,629 | ||||
Common stock issued at private placement | 42,188 | 32 | 42,156 | ||||
Common stock issued at the closing of the over-allotment portion of initial public offering, net of offering costs | 101,256 | 80 | 101,176 | ||||
Common stock issued at public offering, net of costs | 967,512 | 538 | 966,974 | ||||
Common stock issued for restricted stock and stock options | 44 | -44 | |||||
Equity based compensation | 52,989 | 52,989 | |||||
Common stock withheld for taxes on equity based compensation | -361 | -1 | -360 | ||||
Exercise of stock options | 338 | 338 | |||||
Conversion option relating to 2.625% convertible senior notes, net of allocated costs | 381,416 | 381,416 | |||||
Net income (loss) | -927,835 | -927,835 | |||||
Balance at Dec. 31, 2012 | 2,689,218 | 4,066 | 3,612,987 | -927,835 | |||
Common stock issued for restricted stock and stock options | 3 | -3 | |||||
Equity based compensation | 18,795 | 18,795 | |||||
Exercise of stock options | 198 | 198 | |||||
Net income (loss) | -366,905 | -366,905 | |||||
Balance at Sep. 30, 2013 | $2,341,306 | $4,069 | $3,631,977 | ($1,294,740) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Changes in Partners' Capital and Stockholders' Equity (Parenthetical) | Dec. 31, 2012 |
Condensed Consolidated Statements of Changes in Partners' Capital and Stockholders' Equity | |
Interest rate (as a percent) | 2.63% |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | 95 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Cash flows provided from operating activities | |||
Net income (loss) | ($366,905) | ($216,468) | ($1,294,740) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization | 1,345 | 782 | 6,097 |
Dry hole expense and impairment of unproved properties | 212,199 | 131,720 | 450,931 |
Gain on sale of assets | -2,993 | -2,993 | |
Equity based compensation | 18,795 | 16,650 | 79,501 |
Amortization of premium (accretion of discount) on investments | 17,043 | 13,269 | 51,584 |
Amortization of debt discount | 34,751 | 36,500 | |
Other | 558 | ||
Changes in operating assets and liabilities: | |||
Joint interest and other receivables | -48,218 | -32,171 | -113,413 |
Inventory | -17,939 | -3,627 | -83,225 |
Prepaid expense and other current assets | -2,482 | 6,919 | -26,423 |
Deferred charges | -13,264 | 2,769 | -13,264 |
Trade and other accounts payable | -57,459 | -53,892 | 10,418 |
Accrued liabilities and other | -14,856 | -7,344 | 22,018 |
Net cash provided by (used in) operating activities | -239,983 | -141,393 | -876,451 |
Cash flows from investing activities | |||
Capital expenditures for oil and gas properties | -80,439 | -130,719 | -927,387 |
Capital expenditures for other property and equipment | -7,689 | -3,376 | -17,733 |
Exploratory wells drilling in process | -356,764 | -228,299 | -956,846 |
Proceeds from sale of oil and gas properties | 3,006 | 342,007 | |
Change in restricted funds | 90,372 | 51,076 | -221,710 |
Proceeds from maturity of investment securities | 1,003,020 | 768,230 | 3,602,074 |
Purchase of investment securities | -1,615,834 | -970,709 | -5,245,771 |
Net cash provided by (used in) investing activities | -964,328 | -513,797 | -3,425,366 |
Cash flows from financing activities | |||
Capital contributions prior to IPO-Class A limited partners | 1,256,180 | ||
Proceeds from initial public offering, net of costs | 950,702 | ||
Proceeds from public offerings, net of costs | 489,309 | 967,513 | |
Proceeds from debt offering, net of costs | -1,190 | 1,347,760 | |
Proceeds from stock option exercises | 198 | 275 | 536 |
Payments for common stock withheld for taxes on equity based compensation | -170 | -362 | |
Net cash provided by (used in) financing activities | -992 | 489,414 | 4,522,329 |
Net increase (decrease) in cash and cash equivalents | -1,205,303 | -165,776 | 220,512 |
Cash and cash equivalents, beginning of period | 1,425,815 | 292,546 | |
Cash and cash equivalents, end of period | 220,512 | 126,770 | 220,512 |
Cash paid for interest | 16,502 | 16,502 | |
Non-Cash Disclosures | |||
Changes in accrued capital expenditures | -92,534 | 270,031 | 135,389 |
Transfer of investment securities to and from restricted funds | $26 | $178,830 | $178,804 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies |
General | |
        Cobalt International Energy, Inc. (the "Company") is incorporated in the state of Delaware. The Company is an independent, oil-focused exploration and production company with an extensive below salt prospect inventory in the deepwater of the U.S. Gulf of Mexico and offshore Angola and Gabon in West Africa. All of the Company's prospects are oil-focused. To date, the Company's drilling efforts have resulted in discoveries in the U.S. Gulf of Mexico at North Platte, Heidelberg and Shenandoah, offshore Angola at Cameia, Lontra and Mavinga, and offshore Gabon at Diaman. The Company's plan is to continue to mature and drill what it believes are its most promising exploration prospects in the deepwater U.S. Gulf of Mexico and the deepwater offshore Angola and Gabon as it further appraises, evaluates and progresses its existing discoveries toward potential project sanction and development. The Company operates its business in two geographic segments: the U.S. Gulf of Mexico and West Africa. | |
        The terms "Company," "Cobalt," "we," "us," "our," "ours," and similar terms refer to Cobalt International Energy, Inc. unless the context indicates otherwise. | |
Basis of Presentation | |
        The accompanying unaudited condensed consolidated financial statements include the financial statements of Cobalt International Energy, Inc. and all of its wholly-owned subsidiaries. All significant intercompany transactions and amounts have been eliminated for all years presented. Because the Company is a development stage enterprise, it has presented its financial statements in accordance with accounting guidance related to "Development Stage Entities." | |
        The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and the appropriate rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, the condensed consolidated financial statements do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be presented for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. | |
Reclassifications | |
        Certain reclassifications have been made to prior periods' financial statements to conform to the current presentation in the unaudited condensed consolidated statements of cash flows. | |
Use of Estimates | |
        The preparation of financial statements in conformity with GAAP requires the Company 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. Significant estimates made by the Company include (i) accruals related to expenses, (ii) assumptions used in estimating fair value of equity based awards and the fair value of the liability component of the convertible senior notes and (iii) assumptions used in impairment testing. Although the Company believes these estimates are reasonable, actual results could differ from these estimates. | |
Investments | |
        The Company's policy on accounting for its investments, which consist entirely of debt securities, is based on the accounting guidance relating to "Accounting for Certain Investments in Debt and Equity Securities." The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. Investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as long-term investments. The debt securities are carried at amortized costs and classified as held-to-maturity securities as the Company has the positive intent and ability to hold them until they mature. The net carrying value of held-to-maturity securities is adjusted for amortization of premiums and accretion of discounts to maturity over the life of the securities. Held-to-maturity securities are stated at amortized cost, which approximates fair market value as of September 30, 2013 and December 31, 2012. Income related to these securities is reported as a component of interest income in the Company's condensed consolidated statement of operations. See Note 5—Investments. | |
        Investments are considered to be impaired when a decline in fair value is determined to be other-than-temporary. The Company conducts a regular assessment of its debt securities with unrealized losses to determine whether securities have other-than-temporary impairment ("OTTI"). This assessment considers, among other factors, the nature of the securities, credit rating or financial condition of the issuer, the extent and duration of the unrealized loss, market conditions and whether the Company intends to sell or whether it is more likely than not that the Company will be required to sell the debt securities. As of September 30, 2013 and December 31, 2012, the Company has no OTTI in its debt securities. | |
Capitalized Interest | |
        For exploration and development projects that have not commenced production, interest is capitalized as part of the historical cost of developing and constructing assets. Capitalized interest is determined by multiplying the Company's weighted-average borrowing cost on debt by the average amount of qualifying costs incurred. Once an asset subject to interest capitalization is completed and placed in service, the associated capitalized interest is expensed through depreciation or impairment. See Note 7—Property, Plant, and Equipment and Note 8—Long-term Debt. | |
Earnings (Loss) Per Share | |
        Basic income (loss) per share was calculated by dividing net income or loss applicable to common shares by the weighted average number of common shares outstanding during the periods presented. The calculation of diluted income (loss) per share should include the potential dilutive impact of non-vested restricted shares, non-vested restricted stock units, outstanding stock options and 2.625% convertible senior notes due 2019, during the period, unless their effect is anti-dilutive. For the three months and nine months ended September 30, 2013, 6,744,278 shares of non-vested restricted stock, non-vested restricted stock units, outstanding stock options and 2.625% convertible senior notes due 2019, were excluded from the diluted income (loss) per share because they are anti-dilutive. For the three months and nine months ended September 30, 2012, 5,594,092 shares of non-vested restricted stock, non-vested restricted stock units and outstanding stock options were excluded from the diluted income (loss) per share because they are anti-dilutive. | |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Cash and Cash Equivalents | ||||||||
Cash and Cash Equivalents | 2. Cash and Cash Equivalents | |||||||
        Cash and cash equivalents consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
($ in thousands) | ||||||||
Cash at banks | $ | 34,001 | $ | 65,935 | ||||
Money market funds | 89,497 | 1,105,148 | ||||||
Held-to-maturity securities(1) | 97,014 | 254,732 | ||||||
$ | 220,512 | $ | 1,425,815 | |||||
-1 | ||||||||
These securities mature three months or less from the date of purchase. | ||||||||
Restricted_Funds
Restricted Funds | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Restricted Funds | ||||||||
Restricted Funds | 3. Restricted Funds | |||||||
        Restricted funds consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
($ in thousands) | ||||||||
Short-term: | ||||||||
Ensco 8503 escrow account | $ | 90,315 | $ | 90,440 | ||||
Collateral on letters of credit for Angola | 138,218 | — | ||||||
$ | 228,533 | $ | 90,440 | |||||
Long-term: | ||||||||
Ensco 8503 escrow account | — | 90,440 | ||||||
Collateral on letters of credit for Angola | 166,529 | 304,492 | ||||||
Other vendor restricted deposits | 172 | 720 | ||||||
$ | 166,701 | $ | 395,652 | |||||
Joint_Interest_and_Other_Recei
Joint Interest and Other Receivables | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Joint Interest and Other Receivables | ||||||||
Joint Interest and Other Receivables | 4. Joint Interest and Other Receivables | |||||||
        Joint interest and other receivables result primarily from billing shared costs under the respective operating agreements to the Company's partners. These are usually settled within 30 days of the invoice date. | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
($ in thousands) | ||||||||
Partners in the U.S. Gulf of Mexico | $ | 45,663 | $ | 52,439 | ||||
Partners in West Africa(1) | 53,223 | 2,185 | ||||||
Accrued interest on investment securities | 8,313 | 3,647 | ||||||
Vendors' receivables | 1,582 | 1,526 | ||||||
Other | 1,072 | 1,795 | ||||||
Total | $ | 109,853 | $ | 61,592 | ||||
-1 | ||||||||
The amount of $53.2 million as of September 30, 2013 includes $30.6 million related to our partners on Block 20 offshore Angola and $22.6 million related to our partners on Blocks 9 and 21 offshore Angola. Although we expect to collect these receivables in full, including $11.3 million that is currently past due, the allocation of the receivable amongst our partners on Blocks 9 and 21 offshore Angola may change as a result of the working interest transfers discussed below. | ||||||||
        On September 19, 2013, we received a letter from Sociedade Nacional de CombustÃveis de Angola—Empresa Pública notifying us that Nazaki Oil and Gáz, S.A. had transferred a 15% working interest in each of Blocks 9 and 21 offshore Angola out of its 30% working interest in each block to Sonangol Pesquisa e Produção, S.A. ("Sonangol P&P"). The letter stated that these transfers were effective as of March 14, 2013 for Block 9 and February 18, 2013 for Block 21, corresponding to the dates of the executive decrees from the Angola Ministry of Petroleum authorizing such transfers. As a result of these transfers, Sonangol P&P now has a working interest of 35% and paying interest of 18.75% (which is applicable only during the exploration phase on Blocks 9 and 21) in each of Blocks 9 and 21. Our working interest of 40% and paying interest of 62.5% (which is applicable only during the exploration phase on Blocks 9 and 21) in each of Blocks 9 and 21 remains unchanged as a result of these transfers. We are the operator of Blocks 9 and 21. | ||||||||
Investments
Investments | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Investments | ||||||||||||||
Investments | 5. Investments | |||||||||||||
        The Company's investments in held-to-maturity securities which are recorded at amortized cost and approximate fair market value as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
($ in thousands) | ||||||||||||||
U.S. Treasury securities | $ | 394,690 | $ | 483,775 | ||||||||||
Corporate securities | 936,183 | 510,691 | ||||||||||||
Commercial paper | 512,981 | 562,975 | ||||||||||||
Certificates of deposit | 70,000 | 7,000 | ||||||||||||
Total | $ | 1,913,854 | $ | 1,564,441 | ||||||||||
        The Company's condensed consolidated balance sheet included the following held-to-maturity securities: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
($ in thousands) | ||||||||||||||
Cash and cash equivalents | $ | 97,014 | $ | 254,732 | ||||||||||
Short-term restricted funds | 228,533 | 90,440 | ||||||||||||
Short-term investments | 1,221,552 | 789,668 | ||||||||||||
Long-term restricted funds | 166,158 | 393,334 | ||||||||||||
Long-term investments | 200,597 | 36,267 | ||||||||||||
$ | 1,913,854 | $ | 1,564,441 | |||||||||||
        The contractual maturities of these held-to-maturity securities as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||
($ in thousands) | ||||||||||||||
Within 1Â year | $ | 1,713,257 | $ | 1,713,257 | $ | 1,528,174 | $ | 1,528,174 | ||||||
After 1Â year | 200,597 | 200,597 | 36,267 | 36,267 | ||||||||||
$ | 1,913,854 | $ | 1,913,854 | $ | 1,564,441 | $ | 1,564,441 | |||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Fair Value Measurements | 6. Fair Value Measurements | ||||||||||||||||
        The fair values of the Company's cash and cash equivalents, joint interest and other receivables, restricted funds and investments approximate their carrying amounts due to their short-term duration. The hierarchy below lists three levels of fair value based on the extent to which inputs used in measuring fair value are observable in the market. The Company categorizes each of its fair value measurements as applicable to one of these three levels based on the lowest level input that is significant to the fair value measurement in its entirety. The levels are: | |||||||||||||||||
        Level 1—Quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. This category includes the Company's cash and money market funds. | |||||||||||||||||
        Level 2—Quoted prices in non-active markets or in active markets for similar assets or liabilities, and inputs other than quoted prices that are observable, for the asset or liability, either directly or indirectly, for substantially the full contractual term of the asset or liability being measured. This category includes the Company's U.S. Treasury bills, U.S. Treasury notes, U.S. Government agency securities, commercial paper, corporate bonds, municipal bonds and certificates of deposits. | |||||||||||||||||
        Level 3—Inputs that are generally unobservable and typically reflect management's estimate of assumptions that market participants would use in pricing the asset or liability. The Company does not currently have any financial instruments categorized as Level 3. | |||||||||||||||||
        The following tables summarize the Company's significant financial instruments as categorized by the fair value measurement hierarchy: | |||||||||||||||||
Level 1 | Level 2 | ||||||||||||||||
Balance | |||||||||||||||||
as of | |||||||||||||||||
September 30, | |||||||||||||||||
Carrying | Fair | Carrying | Fair | 2013 | |||||||||||||
Value | Value(1) | Value | Value(1) | ||||||||||||||
($ in thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 34,001 | $ | 34,001 | $ | — | $ | — | $ | 34,001 | |||||||
Money market funds | 89,497 | 89,497 | — | — | 89,497 | ||||||||||||
Commercial paper | — | — | 72,014 | 72,014 | 72,014 | ||||||||||||
Certificate of deposits | — | — | 25,000 | 25,000 | 25,000 | ||||||||||||
Subtotal | 123,498 | 123,498 | 97,014 | 97,014 | 220,512 | ||||||||||||
Short-term restricted funds: | |||||||||||||||||
U.S. Treasury bills | — | — | 90,315 | 90,315 | 90,315 | ||||||||||||
U.S. Treasury notes | — | — | 138,218 | 138,218 | 138,218 | ||||||||||||
Subtotal | — | — | 228,533 | 228,533 | 228,533 | ||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds | — | — | 735,586 | 735,586 | 735,586 | ||||||||||||
Commercial paper | — | — | 440,966 | 440,966 | 440,966 | ||||||||||||
Certificates of deposits | — | — | 45,000 | 45,000 | 45,000 | ||||||||||||
Subtotal | — | — | 1,221,552 | 1,221,552 | 1,221,552 | ||||||||||||
Long-term restricted funds: | |||||||||||||||||
Cash | 172 | 172 | — | — | 172 | ||||||||||||
Money market funds | 371 | 371 | — | — | 371 | ||||||||||||
U.S. Treasury notes | — | — | 166,158 | 166,158 | 166,158 | ||||||||||||
Subtotal | 543 | 543 | 166,158 | 166,158 | 166,701 | ||||||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds | — | — | 200,597 | 200,597 | 200,597 | ||||||||||||
Subtotal | — | — | 200,597 | 200,597 | 200,597 | ||||||||||||
Total | $ | 124,041 | $ | 124,041 | $ | 1,913,854 | $ | 1,913,854 | $ | 2,037,895 | |||||||
Level 1 | Level 2 | ||||||||||||||||
Balance | |||||||||||||||||
as of | |||||||||||||||||
December 31, | |||||||||||||||||
Carrying | Fair | Carrying | Fair | 2012 | |||||||||||||
Value | Value(1) | Value | Value(1) | ||||||||||||||
($ in thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 65,935 | $ | 65,935 | $ | — | $ | — | $ | 65,935 | |||||||
Money market funds | 1,105,148 | 1,105,148 | — | — | 1,105,148 | ||||||||||||
Commercial paper | — | — | 247,206 | 247,206 | 247,206 | ||||||||||||
Corporate bonds | — | — | 7,526 | 7,526 | 7,526 | ||||||||||||
Subtotal | 1,171,083 | 1,171,083 | 254,732 | 254,732 | 1,425,815 | ||||||||||||
Short-term restricted funds: | |||||||||||||||||
U.S. Treasury bills | — | — | 90,440 | 90,440 | 90,440 | ||||||||||||
Subtotal | — | — | 90,440 | 90,440 | 90,440 | ||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds | — | — | 466,898 | 466,898 | 466,898 | ||||||||||||
Commercial paper | — | — | 315,769 | 315,769 | 315,769 | ||||||||||||
Certificates of deposits | — | — | 7,001 | 7,001 | 7,001 | ||||||||||||
Subtotal | — | — | 789,668 | 789,668 | 789,668 | ||||||||||||
Long-term restricted funds: | |||||||||||||||||
Money market funds | 2,318 | 2,318 | — | — | 2,318 | ||||||||||||
U.S. Treasury bills | — | — | 178,216 | 178,216 | 178,216 | ||||||||||||
U.S. Treasury notes | — | — | 215,118 | 215,118 | 215,118 | ||||||||||||
Subtotal | 2,318 | 2,318 | 393,334 | 393,334 | 395,652 | ||||||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds | — | — | 36,267 | 36,267 | 36,267 | ||||||||||||
Subtotal | — | — | 36,267 | 36,267 | 36,267 | ||||||||||||
Total | $ | 1,173,401 | $ | 1,173,401 | $ | 1,564,441 | $ | 1,564,441 | $ | 2,737,842 | |||||||
-1 | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company did not record any OTTI on these assets. | |||||||||||||||||
Property_Plant_and_Equipment
Property, Plant, and Equipment | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Property, Plant, and Equipment | ||||||||||
Property, Plant, and Equipment | 7. Property, Plant, and Equipment | |||||||||
        Property, plant, and equipment is stated at cost less accumulated depreciation/amortization and consisted of the following: | ||||||||||
Estimated | September 30, | December 31, | ||||||||
Useful Life | 2013 | 2012 | ||||||||
(Years) | ||||||||||
($ in thousands) | ||||||||||
Oil and Gas Properties: | ||||||||||
Unproved oil and gas properties | $ | 754,909 | $ | 721,853 | ||||||
Less: accumulated valuation allowance | (110,017 | ) | (78,413 | ) | ||||||
644,892 | 643,440 | |||||||||
Exploratory wells in process | 767,107 | 451,024 | ||||||||
Total oil and gas properties, net | 1,411,999 | 1,094,464 | ||||||||
Other Property and Equipment: | ||||||||||
Computer equipment and software | 3 | 4,386 | 3,166 | |||||||
Office equipment and furniture | 3Â -Â 5 | 2,132 | 2,093 | |||||||
Vehicles | 3 | 265 | 268 | |||||||
Leasehold improvements | 3Â -Â 10 | 2,392 | 2,298 | |||||||
Running tools and equipment | 5 | 6,317 | — | |||||||
15,492 | 7,825 | |||||||||
Less: accumulated depreciation and amortization(1) | (3,865 | ) | (2,533 | ) | ||||||
Total other property and equipment, net | 11,627 | 5,292 | ||||||||
Property, plant, and equipment, net | $ | 1,423,626 | $ | 1,099,756 | ||||||
-1 | ||||||||||
During the year ended December 31, 2012, the Company wrote off $2.2 million of old computer equipment and leasehold improvements which were fully depreciated and which had no impact on the consolidated statements of operations and consolidated statements of cash flow. | ||||||||||
        The Company recorded $0.4 million and $0.3 million for the three months ended September 30, 2013 and 2012, respectively, $1.3 million and $0.8 million for the nine months ended September 30, 2013 and 2012, respectively, and $6.1 million of depreciation and amortization for the period November 10, 2005 (inception) through September 30, 2013, respectively. | ||||||||||
Unproved Oil and Gas Properties | ||||||||||
        On December 20, 2011, the Company acquired a 40% working interest in Block 20 offshore Angola for a total consideration of $347.1 million, of which $337.1 million is contractually scheduled to be paid over five years commencing in January 2012. As of September 30, 2013, out of the $337.1 million, $165.7 million has been paid and the remaining $171.4 million was accrued in short-term and long-term contractual obligations. See Note 9—Contractual Obligations. In addition to the Block 20 interests, the Company has $10.8 million of unproved property acquisition costs relating to its 40% interests in Blocks 9 and 21 offshore Angola and its 21.25% working interest in the Diaba block offshore Gabon. | ||||||||||
        As of September 30, 2013, the Company also has $287.0 million of unproved property acquisition costs, net of valuation allowance for impairment, relating to its U.S. Gulf of Mexico properties. On February 26, 2013, the Company executed a Purchase and Sale agreement (the "PSA") to sell its ownership interests on an unproved oil and gas property on Mississippi Canyon Block 209 for a total consideration of $5.6 million. The Company received $1.5 million at closing and an additional $1.5 million in September 2013 when the buyer commenced operations on the property. Pursuant to the terms and conditions of the PSA, the Company will receive the remaining $2.6 million contingent upon the purchaser's commencement of production on this property in the future. For the nine months ended September 30, 2013, the Company recognized a gain of $3.0 million on the sale of assets as a result of this transaction. During the nine months ended September 30, 2013, the Company paid a total consideration of $37.6 million for acquisition of ownership interests in unproved oil and gas properties on Garden Banks Block 822, Mississippi Canyon Block 605 and Walker Ridge Block 232 in the U.S. Gulf of Mexico. | ||||||||||
        As of September 30, 2013 and December 31, 2012, the Company has a net total of $644.9 million and $643.4 million, respectively, of unproved property acquisition costs on the condensed consolidated balance sheets. | ||||||||||
        Acquisition costs of unproved properties are assessed for impairment during the holding period and transferred to proved oil and gas properties to the extent associated with successful exploration activities. There are no impairment indicators to date that would require the Company to impair the unproved properties in Blocks 9, 20, and 21 offshore Angola and in the Diaba block offshore Gabon. Oil and gas leases for unproved properties in the U.S. Gulf of Mexico with carrying value greater than $1.0 million are assessed individually for impairment based on the Company's current exploration plans and an allowance for impairment is provided if impairment is indicated. Leases that are individually less than $1.0 million in carrying value or are near expiration are amortized on a group basis over the average terms of the leases at rates that provide for full amortization of leases upon lease expiration. These leases have expiration dates ranging from 2013 through 2022. As of September 30, 2013 and December 31, 2012, the balance for unproved properties that were subject to amortization before impairment provision was $69.4 million and $69.1 million, respectively. The Company recorded a lease impairment allowance of $31.3 million and $2.3 million for the three months ended September 30, 2013 and 2012, respectively, $36.1 million and $57.8 million for the nine months ended September 30, 2013 and 2012, respectively, and $114.7 million for the period November 10, 2005 (inception) through September 30, 2013. | ||||||||||
Capitalized Costs | ||||||||||
        If an exploratory well provides evidence as to the existence of sufficient quantities of hydrocarbons to justify potential completion as a producing well, drilling costs associated with the well are initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. This determination may take longer than one year in certain areas (generally, deepwater and international locations) depending upon, among other things, (i) the amount of hydrocarbons discovered, (ii) the outcome of planned geological and engineering studies, (iii) the need for additional appraisal drilling activities to determine whether the discovery is sufficient to support an economic development plan and (iv) the requirement for government sanctioning in international locations before proceeding with development activities. | ||||||||||
        The following tables reflect the Company's net changes in and the cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs): | ||||||||||
September 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
($ in thousands) | ||||||||||
Beginning of period | $ | 451,024 | $ | 178,338 | ||||||
Addition to capitalized exploratory and development costs: | ||||||||||
U.S. Gulf of Mexico: | ||||||||||
Exploratory well costs | 111,724 | 178,295 | ||||||||
Development and pre-development well costs | 39,084 | — | ||||||||
Capitalized interest | 5,206 | — | ||||||||
West Africa: | ||||||||||
Exploratory well costs(1) | 320,464 | 168,309 | ||||||||
Pre-development well costs | 9,988 | — | ||||||||
Capitalized interest | 5,685 | — | ||||||||
Reclassifications to wells, facilities, and equipment based on determination of proved reserves | — | — | ||||||||
Amounts charged to expense(2) | (176,068 | ) | (73,918 | ) | ||||||
End of period | $ | 767,107 | $ | 451,024 | ||||||
-1 | ||||||||||
This amount includes $116.0 million of total drilling costs associated with the Mavinga #1 exploratory well, of which $103.5 million has been capitalized as of September 30, 2013 and will remain suspended pending further evaluation of the well to determine possible utilization for the development of the Mavinga field. | ||||||||||
-2 | ||||||||||
The amount of $176.1 million for the nine months ended September 30, 2013 represents $64.1 million of impairment charges on the Ardennes #1 exploratory well which did not encounter commercial hydrocarbons, $82.4 million of impairment charges related to the lowest drilled interval evaluated by the Cameia #2 drill stem test, which failed to flow measurable hydrocarbons, $17.1 million of impairment charges on the Diaman #1 exploratory well which needed to be re-spud due to mechanical problems with the wellbore, and $12.5 million of impairment charges related to the lowest interval beneath the pay zone that was drilled by the Mavinga #1 exploratory well and determined to have no further utility. The amount of $73.9 million for the year ended December 31, 2012 represents impairment charges on exploratory wells, including $4.1 million for the Heidelberg #3 sidetrack well, $8.1 million for the Ligurian #1 exploratory well, $49.0 million for the Ligurian #2 exploratory well and $12.7 million for the Shenandoah #2 appraisal well. | ||||||||||
September 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
($ in thousands) | ||||||||||
Cumulative costs: | ||||||||||
U.S. Gulf of Mexico | ||||||||||
Exploratory well costs | $ | 215,395 | $ | 208,275 | ||||||
Development and pre-development well costs | 79,572 | — | ||||||||
Capitalized interest | 5,206 | — | ||||||||
West Africa | ||||||||||
Exploratory well costs | 447,277 | 242,749 | ||||||||
Pre-development well costs | 13,972 | — | ||||||||
Capitalized interest | 5,685 | — | ||||||||
$ | 767,107 | $ | 451,024 | |||||||
Well costs capitalized for a period greater than one year after completion of drilling (included in table above) | $ | 286,968 | $ | 194,853 | ||||||
        As of September 30, 2013, capitalized well costs that have been suspended longer than one year are associated with the Shenandoah, Heidelberg, North Platte and Cameia discoveries. These well costs except for Heidelberg are suspended pending ongoing evaluation including, but not limited to, results of additional appraisal drilling, well-test analysis, additional geological and geophysical data and approval of a development plan. Management believes these discoveries exhibit sufficient indications of hydrocarbons to justify potential development and is actively pursuing efforts to fully assess them. If additional information becomes available that raises substantial doubt as to the economic or operational viability of these discoveries, the associated costs will be expensed at that time. The Heidelberg discovery has been sanctioned for development and the Heidelberg capitalized exploratory and appraisal well costs were reclassified to development well costs as of September 30, 2013. | ||||||||||
Longterm_Debt
Long-term Debt | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Long-term Debt | ||||||||||||||||||||
Long-term Debt | 8. Long-term Debt | |||||||||||||||||||
        On December 17, 2012, the Company issued $1.38 billion aggregate principal amount of its 2.625% convertible senior notes due 2019 (the "Notes"). The Notes are the Company's senior unsecured obligations and interest is payable semi-annually in arrears on June 1 and December 1 of each year. For the nine months ended September 30, 2013, the Company paid $16.5 million in interest on the notes. The Notes will mature on December 1, 2019, unless earlier repurchased or converted in accordance with the terms of the Notes. The Notes may be converted at the option of the holder at any time prior to 5:00 p.m., New York City time, on the second scheduled trading day immediately preceding the maturity date, in multiples of $1,000 principal amount. The Notes are convertible at an initial conversion rate of 28.023 shares of common stock per $1,000 principal amount, representing an initial conversion price of approximately $35.68 per share for a total of approximately 38.7 million underlying shares. The conversion rate is subject to adjustment upon the occurrence of | ||||||||||||||||||||
certain events, as defined in the indenture governing the Notes, but will not be adjusted for any accrued and unpaid interest except in limited circumstances. Upon conversion, the Company's conversion obligation may be satisfied, at the Company's option, in cash, shares of common stock or a combination of cash and shares of common stock. | ||||||||||||||||||||
        Holders of the Notes who convert their Notes in connection with a "make-whole fundamental change", as defined in the indenture governing the Notes, may be entitled to a make-whole premium in the form of an increase in the conversion rate. Additionally, in the event of a fundamental change, as defined in the indenture governing the Notes, holders of the Notes may require the Company to repurchase for cash all or a portion of their Notes equal to $1,000 or a multiple of $1,000 at a fundamental change repurchase price equal to 100% of the principal amount of Notes, plus accrued and unpaid interest, if any, to, but not including, the fundamental change repurchase date. | ||||||||||||||||||||
        Upon the occurrence of an Event of Default, as defined within the Indenture governing the Notes, the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding may declare 100% of the principal of, and accrued and unpaid interest on, all the Notes to be due and payable immediately. | ||||||||||||||||||||
        In accordance with accounting guidance relating to, "Debt with Conversion and Other Options", the Company separately accounts for the liability and equity conversion components of the Notes due to the Company's option to settle the conversion obligation in cash. The fair value of the debt excluding the conversion feature at the date of issuance was estimated to be approximately $989.5 million and was calculated based on the fair value of similar non-convertible debt instruments. The resulting value of the conversion option of $390.5 million was recognized as a debt discount and recorded as additional paid-in capital on the Company's consolidated balance sheets. Total debt issue cost on the Notes was $32.2 million of which $23.1 million was allocated to the liability component of the Notes and $9.1 million to the equity component of the Notes. The debt discount and the liability component of the debt issue costs are amortized over the term of the Notes. The effective interest rate used to amortize the debt discount and the liability component of the debt issue costs was approximately 8.40% based on the Company's estimated non-convertible borrowing rate as of the date the Notes were issued. Since the Company incurred losses for all periods, the impact of the conversion option would be anti-dilutive to the earnings per share and therefore was not included in the calculation. | ||||||||||||||||||||
        The carrying amounts of the liability components of the Notes were as follows: | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Principal | Unamortized | Carrying | Principal | Unamortized | Carrying | |||||||||||||||
Amount | discount(1) | Amount | Amount | discount | Amount | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Carrying amount of liability component | ||||||||||||||||||||
2.625% convertible senior notes | $ | 1,380,000 | $ | (355,555 | ) | $ | 1,024,445 | $ | 1,380,000 | $ | (388,809 | ) | $ | 991,191 | ||||||
-1 | ||||||||||||||||||||
Unamortized discount will be amortized over the remaining life of the Notes which is 6.25Â years. | ||||||||||||||||||||
        The carrying amounts of the equity components of the Notes were as follows: | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Debt discount relating to value of conversion option | $ | 390,540 | $ | 390,540 | ||||||||||||||||
Debt issue costs | (9,124 | ) | (9,124 | ) | ||||||||||||||||
Total | $ | 381,416 | $ | 381,416 | ||||||||||||||||
        Fair Value    The fair value of the Notes excluding the conversion feature was $1,028.8 million and $989.5 million as of September 30, 2013 and December 31, 2012, respectively, and was calculated based on the fair value of similar non-convertible debt instruments (level 2) since an observable quoted price of the Notes or a similar asset or liability is not readily available. | ||||||||||||||||||||
        Interest expense was as follows: | ||||||||||||||||||||
For the Period | ||||||||||||||||||||
November 10, | ||||||||||||||||||||
2005 | ||||||||||||||||||||
(Inception) | ||||||||||||||||||||
through | ||||||||||||||||||||
Three Months | Nine Months | September 30, | ||||||||||||||||||
Ended | Ended | 2013 | ||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Interest expense associated with accrued interest(1) | $ | 3,956 | $ | — | $ | 16,276 | $ | — | $ | 17,570 | ||||||||||
Interest expense associated with accretion of debt discount | 11,307 | — | 33,254 | — | 35,165 | |||||||||||||||
Interest expense associated with amortization of debt issue costs | 539 | — | 1,497 | — | 1,572 | |||||||||||||||
Total | $ | 15,802 | $ | — | $ | 51,027 | $ | — | $ | 54,307 | ||||||||||
-1 | ||||||||||||||||||||
The $4.0 million and $16.3 million for the three and nine months ended September 30, 2013, respectively, represent interest expense net of capitalized amount of $5.1 million and $10.9 million, respectively. | ||||||||||||||||||||
Contractual_Obligations
Contractual Obligations | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Contractual Obligations | ||||||||
Contractual Obligations | 9. Contractual Obligations | |||||||
        The short-term and long-term contractual obligations consist of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
($ in thousands) | ||||||||
Short-term Contractual Obligations: | ||||||||
Social obligation payments for Block 9, offshore Angola | $ | 150 | $ | 150 | ||||
Social obligation payments for Block 21, offshore Angola | 300 | 300 | ||||||
Social obligation and bonus payments for Block 20, offshore Angola(1) | 48,569 | 48,569 | ||||||
$ | 49,019 | $ | 49,019 | |||||
Long-term Contractual Obligations: | ||||||||
Social obligation payments for Block 9, offshore Angola | $ | 668 | $ | 848 | ||||
Social obligation payments for Block 21, offshore Angola | 1,382 | 1,684 | ||||||
Social obligation and bonus payments for Block 20, offshore Angola(1) | 122,851 | 165,706 | ||||||
$ | 124,901 | $ | 168,238 | |||||
-1 | ||||||||
The total amount of social obligation payments for Block 20 has been capitalized. See Note 7—Property, Plant, and Equipment. | ||||||||
Seismic_and_Exploration_Expens
Seismic and Exploration Expenses | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Seismic and Exploration Expenses | |||||||||||||||||
Seismic and Exploration Expenses | 10. Seismic and Exploration Expenses | ||||||||||||||||
        Seismic and exploration expenses consisted of the following: | |||||||||||||||||
For the Period | |||||||||||||||||
November 10, | |||||||||||||||||
2005 | |||||||||||||||||
(Inception) | |||||||||||||||||
through | |||||||||||||||||
Three Months | Nine Months | September 30, | |||||||||||||||
Ended | Ended | 2013 | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
($ in Thousands) | |||||||||||||||||
Seismic costs | $ | 13,461 | $ | 4,592 | $ | 34,548 | $ | 29,933 | $ | 376,596 | |||||||
Seismic cost recovery(1) | — | — | — | — | (25,126 | ) | |||||||||||
Leasehold delay rentals | 944 | 1,184 | 4,050 | 4,062 | 36,953 | ||||||||||||
Force Majeure expense(2) | — | — | — | — | 13,549 | ||||||||||||
Drilling rig and other exploration expenses | 150 | 551 | 2,832 | 1,687 | 29,631 | ||||||||||||
$ | 14,555 | $ | 6,327 | $ | 41,430 | $ | 35,682 | $ | 431,603 | ||||||||
-1 | |||||||||||||||||
This amount represents reimbursement from partners of past seismic costs incurred by the Company. | |||||||||||||||||
-2 | |||||||||||||||||
This amount represents expenditures resulting from suspension of drilling activities in the U.S. Gulf of Mexico as a result of the explosion and sinking of the Deepwater Horizon drilling rig in the U.S. Gulf of Mexico, the resulting oil spill and the regulatory response thereto and other exploratory expenses. | |||||||||||||||||
Equity_Based_Compensation
Equity Based Compensation | 9 Months Ended |
Sep. 30, 2013 | |
Equity Based Compensation | |
Equity Based Compensation | |
11. Equity Based Compensation | |
        The Company accounts for stock-based compensation at fair value. The Company grants various types of stock-based awards including stock options, restricted stock and performance-based awards. The fair value of stock option awards is determined using the Black-Scholes-Merton option-pricing model. For restricted stock awards with market conditions, the fair value of the awards is measured using the asset-or-nothing option pricing model. Restricted stock awards without market conditions and the performance-based awards are valued using the market price of the Company's common stock on the grant date. The Company records compensation cost, net of estimated forfeitures, for stock-based compensation awards over the requisite service period except for performance-based awards. For performance-based awards, compensation cost is recognized over the requisite service period as and when the Company determines that the achievement of the performance condition is probable, using the per-share fair value measured at grant date. | |
        During the nine months ended September 30, 2013, the Company granted a total of 605,940 shares of restricted stock and 959,023 stock options to employees. During the nine months ended September 30, 2013, the Company also granted 11,056 shares of common stock as retainer awards to non-employee directors who elected to be compensated by stock in lieu of cash payments. In addition, the Company granted a total of 34,833 restricted stock units to non-employee directors during the nine months ended September 30, 2013. | |
        The Company recorded equity based compensation expense, net of forfeitures, of $6.5 million and $4.7 million for the three months ended September 30, 2013 and 2012, respectively, $18.8 million and $16.7 million for the nine months ended September 30, 2013 and 2012, respectively, and $79.5 million for the period November 10, 2005 (inception) through September 30, 2013. | |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Segment Information | |||||||||||
Segment Information | 12. Segment Information | ||||||||||
        The Company currently has two geographic operating segments for its exploratory operations. The operating segments are focused in the deepwater U.S. Gulf of Mexico and offshore West Africa. The following tables provide the geographic operating segment information for the three and nine months ended September 30, 2013 and 2012: | |||||||||||
United States | West Africa | Total | |||||||||
($ in thousands) | |||||||||||
Three months ended September 30, 2013 | |||||||||||
Operating costs and expense | $ | 122,995 | $ | 22,668 | $ | 145,663 | |||||
Operating income (loss) | (122,995 | ) | (22,668 | ) | (145,663 | ) | |||||
Other income (expense) | (14,337 | ) | |||||||||
Net income (loss) | $ | (160,000 | ) | ||||||||
Additions to Property and Equipment, net(1) | $ | 1,329 | $ | 148,262 | $ | 149,591 | |||||
Three months ended September 30, 2012 | |||||||||||
Operating costs and expense | $ | (32,593 | ) | $ | (7,960 | ) | $ | (40,553 | ) | ||
Operating income (loss) | (32,593 | ) | (7,960 | ) | (40,553 | ) | |||||
Other income (expense) | 1,339 | ||||||||||
Net income (loss) | $ | (39,214 | ) | ||||||||
Additions to Property and Equipment, net(1) | $ | 42,851 | $ | 51,946 | $ | 94,797 | |||||
United States | West Africa | Total | |||||||||
($ in thousands) | |||||||||||
Nine months ended September 30, 2013 | |||||||||||
Operating costs and expense | $ | 167,817 | $ | 155,664 | $ | 323,481 | |||||
Operating income (loss) | (167,817 | ) | (155,664 | ) | (323,481 | ) | |||||
Other income (expense) | (43,424 | ) | |||||||||
Net income (loss) | $ | (366,905 | ) | ||||||||
Additions to Property and Equipment, net(1) | $ | 93,657 | $ | 230,212 | $ | 323,869 | |||||
Nine months ended September 30, 2012 | |||||||||||
Operating costs and expense | $ | (189,171 | ) | $ | (31,252 | ) | $ | (220,423 | ) | ||
Operating income (loss) | (189,171 | ) | (31,252 | ) | (220,423 | ) | |||||
Other income (expense) | 3,955 | ||||||||||
Net income (loss) | $ | (216,468 | ) | ||||||||
Additions to Property and Equipment, net(1) | $ | (7,438 | ) | $ | 170,235 | $ | 162,797 | ||||
-1 | |||||||||||
These amounts are net of accumulated allowance for impairment on oil and gas properties and accumulated depreciation and amortization on other property and equipment. | |||||||||||
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Contingencies | |
Contingencies | 13. Contingencies |
        The Company is not currently party to any legal proceedings. However, from time to time the Company may be subject to various lawsuits, claims and proceedings that arise in the normal course of business, including employment, commercial, environmental, safety and health matters. It is not presently possible to determine whether any such matters will have a material adverse effect on the Company's consolidated financial position, results of operations, or liquidity. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation |
        The accompanying unaudited condensed consolidated financial statements include the financial statements of Cobalt International Energy, Inc. and all of its wholly-owned subsidiaries. All significant intercompany transactions and amounts have been eliminated for all years presented. Because the Company is a development stage enterprise, it has presented its financial statements in accordance with accounting guidance related to "Development Stage Entities." | |
        The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("GAAP") for interim financial information and the appropriate rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, the condensed consolidated financial statements do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for interim periods are not necessarily indicative of the results that may be presented for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. | |
Reclassifications | Reclassifications |
        Certain reclassifications have been made to prior periods' financial statements to conform to the current presentation in the unaudited condensed consolidated statements of cash flows. | |
Use of Estimates | Use of Estimates |
        The preparation of financial statements in conformity with GAAP requires the Company 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. Significant estimates made by the Company include (i) accruals related to expenses, (ii) assumptions used in estimating fair value of equity based awards and the fair value of the liability component of the convertible senior notes and (iii) assumptions used in impairment testing. Although the Company believes these estimates are reasonable, actual results could differ from these estimates. | |
Investments | Investments |
        The Company's policy on accounting for its investments, which consist entirely of debt securities, is based on the accounting guidance relating to "Accounting for Certain Investments in Debt and Equity Securities." The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. Investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. Investments with maturities beyond one year are classified as long-term investments. The debt securities are carried at amortized costs and classified as held-to-maturity securities as the Company has the positive intent and ability to hold them until they mature. The net carrying value of held-to-maturity securities is adjusted for amortization of premiums and accretion of discounts to maturity over the life of the securities. Held-to-maturity securities are stated at amortized cost, which approximates fair market value as of September 30, 2013 and December 31, 2012. Income related to these securities is reported as a component of interest income in the Company's condensed consolidated statement of operations. See Note 5—Investments. | |
        Investments are considered to be impaired when a decline in fair value is determined to be other-than-temporary. The Company conducts a regular assessment of its debt securities with unrealized losses to determine whether securities have other-than-temporary impairment ("OTTI"). This assessment considers, among other factors, the nature of the securities, credit rating or financial condition of the issuer, the extent and duration of the unrealized loss, market conditions and whether the Company intends to sell or whether it is more likely than not that the Company will be required to sell the debt securities. As of September 30, 2013 and December 31, 2012, the Company has no OTTI in its debt securities. | |
Capitalized Interest | Capitalized Interest |
        For exploration and development projects that have not commenced production, interest is capitalized as part of the historical cost of developing and constructing assets. Capitalized interest is determined by multiplying the Company's weighted-average borrowing cost on debt by the average amount of qualifying costs incurred. Once an asset subject to interest capitalization is completed and placed in service, the associated capitalized interest is expensed through depreciation or impairment. See Note 7—Property, Plant, and Equipment and Note 8—Long-term Debt. | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share |
        Basic income (loss) per share was calculated by dividing net income or loss applicable to common shares by the weighted average number of common shares outstanding during the periods presented. The calculation of diluted income (loss) per share should include the potential dilutive impact of non-vested restricted shares, non-vested restricted stock units, outstanding stock options and 2.625% convertible senior notes due 2019, during the period, unless their effect is anti-dilutive. For the three months and nine months ended September 30, 2013, 6,744,278 shares of non-vested restricted stock, non-vested restricted stock units, outstanding stock options and 2.625% convertible senior notes due 2019, were excluded from the diluted income (loss) per share because they are anti-dilutive. For the three months and nine months ended September 30, 2012, 5,594,092 shares of non-vested restricted stock, non-vested restricted stock units and outstanding stock options were excluded from the diluted income (loss) per share because they are anti-dilutive. | |
Cash_and_Cash_Equivalents_Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Cash and Cash Equivalents | ||||||||
Cash and cash equivalents | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
($ in thousands) | ||||||||
Cash at banks | $ | 34,001 | $ | 65,935 | ||||
Money market funds | 89,497 | 1,105,148 | ||||||
Held-to-maturity securities(1) | 97,014 | 254,732 | ||||||
$ | 220,512 | $ | 1,425,815 | |||||
-1 | ||||||||
These securities mature three months or less from the date of purchase. | ||||||||
Restricted_Funds_Tables
Restricted Funds (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Restricted Funds | ||||||||
Schedule of restricted funds | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
($ in thousands) | ||||||||
Short-term: | ||||||||
Ensco 8503 escrow account | $ | 90,315 | $ | 90,440 | ||||
Collateral on letters of credit for Angola | 138,218 | — | ||||||
$ | 228,533 | $ | 90,440 | |||||
Long-term: | ||||||||
Ensco 8503 escrow account | — | 90,440 | ||||||
Collateral on letters of credit for Angola | 166,529 | 304,492 | ||||||
Other vendor restricted deposits | 172 | 720 | ||||||
$ | 166,701 | $ | 395,652 | |||||
Joint_Interest_and_Other_Recei1
Joint Interest and Other Receivables (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Joint Interest and Other Receivables | ||||||||
Schedule of joint interest and other receivables | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
($ in thousands) | ||||||||
Partners in the U.S. Gulf of Mexico | $ | 45,663 | $ | 52,439 | ||||
Partners in West Africa(1) | 53,223 | 2,185 | ||||||
Accrued interest on investment securities | 8,313 | 3,647 | ||||||
Vendors' receivables | 1,582 | 1,526 | ||||||
Other | 1,072 | 1,795 | ||||||
Total | $ | 109,853 | $ | 61,592 | ||||
-1 | ||||||||
The amount of $53.2 million as of September 30, 2013 includes $30.6 million related to our partners on Block 20 offshore Angola and $22.6 million related to our partners on Blocks 9 and 21 offshore Angola. Although we expect to collect these receivables in full, including $11.3 million that is currently past due, the allocation of the receivable amongst our partners on Blocks 9 and 21 offshore Angola may change as a result of the working interest transfers discussed below. | ||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Investments | ||||||||||||||
Schedule of fair value of held-to-maturity securities recorded at amortized cost | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
($ in thousands) | ||||||||||||||
U.S. Treasury securities | $ | 394,690 | $ | 483,775 | ||||||||||
Corporate securities | 936,183 | 510,691 | ||||||||||||
Commercial paper | 512,981 | 562,975 | ||||||||||||
Certificates of deposit | 70,000 | 7,000 | ||||||||||||
Total | $ | 1,913,854 | $ | 1,564,441 | ||||||||||
Schedule of held-to-maturity securities included in the entity's condensed consolidated balance sheets | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
($ in thousands) | ||||||||||||||
Cash and cash equivalents | $ | 97,014 | $ | 254,732 | ||||||||||
Short-term restricted funds | 228,533 | 90,440 | ||||||||||||
Short-term investments | 1,221,552 | 789,668 | ||||||||||||
Long-term restricted funds | 166,158 | 393,334 | ||||||||||||
Long-term investments | 200,597 | 36,267 | ||||||||||||
$ | 1,913,854 | $ | 1,564,441 | |||||||||||
Schedule of contractual maturities of held-to-maturity securities | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||
Value | Fair Value | Value | Fair Value | |||||||||||
($ in thousands) | ||||||||||||||
Within 1Â year | $ | 1,713,257 | $ | 1,713,257 | $ | 1,528,174 | $ | 1,528,174 | ||||||
After 1Â year | 200,597 | 200,597 | 36,267 | 36,267 | ||||||||||
$ | 1,913,854 | $ | 1,913,854 | $ | 1,564,441 | $ | 1,564,441 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Significant financial instruments as categorized by the fair value measurement hierarchy | |||||||||||||||||
Level 1 | Level 2 | ||||||||||||||||
Balance | |||||||||||||||||
as of | |||||||||||||||||
September 30, | |||||||||||||||||
Carrying | Fair | Carrying | Fair | 2013 | |||||||||||||
Value | Value(1) | Value | Value(1) | ||||||||||||||
($ in thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 34,001 | $ | 34,001 | $ | — | $ | — | $ | 34,001 | |||||||
Money market funds | 89,497 | 89,497 | — | — | 89,497 | ||||||||||||
Commercial paper | — | — | 72,014 | 72,014 | 72,014 | ||||||||||||
Certificate of deposits | — | — | 25,000 | 25,000 | 25,000 | ||||||||||||
Subtotal | 123,498 | 123,498 | 97,014 | 97,014 | 220,512 | ||||||||||||
Short-term restricted funds: | |||||||||||||||||
U.S. Treasury bills | — | — | 90,315 | 90,315 | 90,315 | ||||||||||||
U.S. Treasury notes | — | — | 138,218 | 138,218 | 138,218 | ||||||||||||
Subtotal | — | — | 228,533 | 228,533 | 228,533 | ||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds | — | — | 735,586 | 735,586 | 735,586 | ||||||||||||
Commercial paper | — | — | 440,966 | 440,966 | 440,966 | ||||||||||||
Certificates of deposits | — | — | 45,000 | 45,000 | 45,000 | ||||||||||||
Subtotal | — | — | 1,221,552 | 1,221,552 | 1,221,552 | ||||||||||||
Long-term restricted funds: | |||||||||||||||||
Cash | 172 | 172 | — | — | 172 | ||||||||||||
Money market funds | 371 | 371 | — | — | 371 | ||||||||||||
U.S. Treasury notes | — | — | 166,158 | 166,158 | 166,158 | ||||||||||||
Subtotal | 543 | 543 | 166,158 | 166,158 | 166,701 | ||||||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds | — | — | 200,597 | 200,597 | 200,597 | ||||||||||||
Subtotal | — | — | 200,597 | 200,597 | 200,597 | ||||||||||||
Total | $ | 124,041 | $ | 124,041 | $ | 1,913,854 | $ | 1,913,854 | $ | 2,037,895 | |||||||
Level 1 | Level 2 | ||||||||||||||||
Balance | |||||||||||||||||
as of | |||||||||||||||||
December 31, | |||||||||||||||||
Carrying | Fair | Carrying | Fair | 2012 | |||||||||||||
Value | Value(1) | Value | Value(1) | ||||||||||||||
($ in thousands) | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 65,935 | $ | 65,935 | $ | — | $ | — | $ | 65,935 | |||||||
Money market funds | 1,105,148 | 1,105,148 | — | — | 1,105,148 | ||||||||||||
Commercial paper | — | — | 247,206 | 247,206 | 247,206 | ||||||||||||
Corporate bonds | — | — | 7,526 | 7,526 | 7,526 | ||||||||||||
Subtotal | 1,171,083 | 1,171,083 | 254,732 | 254,732 | 1,425,815 | ||||||||||||
Short-term restricted funds: | |||||||||||||||||
U.S. Treasury bills | — | — | 90,440 | 90,440 | 90,440 | ||||||||||||
Subtotal | — | — | 90,440 | 90,440 | 90,440 | ||||||||||||
Short-term investments: | |||||||||||||||||
Corporate bonds | — | — | 466,898 | 466,898 | 466,898 | ||||||||||||
Commercial paper | — | — | 315,769 | 315,769 | 315,769 | ||||||||||||
Certificates of deposits | — | — | 7,001 | 7,001 | 7,001 | ||||||||||||
Subtotal | — | — | 789,668 | 789,668 | 789,668 | ||||||||||||
Long-term restricted funds: | |||||||||||||||||
Money market funds | 2,318 | 2,318 | — | — | 2,318 | ||||||||||||
U.S. Treasury bills | — | — | 178,216 | 178,216 | 178,216 | ||||||||||||
U.S. Treasury notes | — | — | 215,118 | 215,118 | 215,118 | ||||||||||||
Subtotal | 2,318 | 2,318 | 393,334 | 393,334 | 395,652 | ||||||||||||
Long-term investments: | |||||||||||||||||
Corporate bonds | — | — | 36,267 | 36,267 | 36,267 | ||||||||||||
Subtotal | — | — | 36,267 | 36,267 | 36,267 | ||||||||||||
Total | $ | 1,173,401 | $ | 1,173,401 | $ | 1,564,441 | $ | 1,564,441 | $ | 2,737,842 | |||||||
-1 | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company did not record any OTTI on these assets. | |||||||||||||||||
Property_Plant_and_Equipment_T
Property, Plant, and Equipment (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Property, Plant, and Equipment | ||||||||||
Schedule of Property, Plant, and Equipment | ||||||||||
Estimated | September 30, | December 31, | ||||||||
Useful Life | 2013 | 2012 | ||||||||
(Years) | ||||||||||
($ in thousands) | ||||||||||
Oil and Gas Properties: | ||||||||||
Unproved oil and gas properties | $ | 754,909 | $ | 721,853 | ||||||
Less: accumulated valuation allowance | (110,017 | ) | (78,413 | ) | ||||||
644,892 | 643,440 | |||||||||
Exploratory wells in process | 767,107 | 451,024 | ||||||||
Total oil and gas properties, net | 1,411,999 | 1,094,464 | ||||||||
Other Property and Equipment: | ||||||||||
Computer equipment and software | 3 | 4,386 | 3,166 | |||||||
Office equipment and furniture | 3Â -Â 5 | 2,132 | 2,093 | |||||||
Vehicles | 3 | 265 | 268 | |||||||
Leasehold improvements | 3Â -Â 10 | 2,392 | 2,298 | |||||||
Running tools and equipment | 5 | 6,317 | — | |||||||
15,492 | 7,825 | |||||||||
Less: accumulated depreciation and amortization(1) | (3,865 | ) | (2,533 | ) | ||||||
Total other property and equipment, net | 11,627 | 5,292 | ||||||||
Property, plant, and equipment, net | $ | 1,423,626 | $ | 1,099,756 | ||||||
-1 | ||||||||||
During the year ended December 31, 2012, the Company wrote off $2.2 million of old computer equipment and leasehold improvements which were fully depreciated and which had no impact on the consolidated statements of operations and consolidated statements of cash flow. | ||||||||||
Schedule of net changes in capitalized exploratory well costs | ||||||||||
September 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
($ in thousands) | ||||||||||
Beginning of period | $ | 451,024 | $ | 178,338 | ||||||
Addition to capitalized exploratory and development costs: | ||||||||||
U.S. Gulf of Mexico: | ||||||||||
Exploratory well costs | 111,724 | 178,295 | ||||||||
Development and pre-development well costs | 39,084 | — | ||||||||
Capitalized interest | 5,206 | — | ||||||||
West Africa: | ||||||||||
Exploratory well costs(1) | 320,464 | 168,309 | ||||||||
Pre-development well costs | 9,988 | — | ||||||||
Capitalized interest | 5,685 | — | ||||||||
Reclassifications to wells, facilities, and equipment based on determination of proved reserves | — | — | ||||||||
Amounts charged to expense(2) | (176,068 | ) | (73,918 | ) | ||||||
End of period | $ | 767,107 | $ | 451,024 | ||||||
-1 | ||||||||||
This amount includes $116.0 million of total drilling costs associated with the Mavinga #1 exploratory well, of which $103.5 million has been capitalized as of September 30, 2013 and will remain suspended pending further evaluation of the well to determine possible utilization for the development of the Mavinga field. | ||||||||||
-2 | ||||||||||
The amount of $176.1 million for the nine months ended September 30, 2013 represents $64.1 million of impairment charges on the Ardennes #1 exploratory well which did not encounter commercial hydrocarbons, $82.4 million of impairment charges related to the lowest drilled interval evaluated by the Cameia #2 drill stem test, which failed to flow measurable hydrocarbons, $17.1 million of impairment charges on the Diaman #1 exploratory well which needed to be re-spud due to mechanical problems with the wellbore, and $12.5 million of impairment charges related to the lowest interval beneath the pay zone that was drilled by the Mavinga #1 exploratory well and determined to have no further utility. The amount of $73.9 million for the year ended December 31, 2012 represents impairment charges on exploratory wells, including $4.1 million for the Heidelberg #3 sidetrack well, $8.1 million for the Ligurian #1 exploratory well, $49.0 million for the Ligurian #2 exploratory well and $12.7 million for the Shenandoah #2 appraisal well. | ||||||||||
Schedule of cumulative costs of capitalized exploratory well costs | ||||||||||
September 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
($ in thousands) | ||||||||||
Cumulative costs: | ||||||||||
U.S. Gulf of Mexico | ||||||||||
Exploratory well costs | $ | 215,395 | $ | 208,275 | ||||||
Development and pre-development well costs | 79,572 | — | ||||||||
Capitalized interest | 5,206 | — | ||||||||
West Africa | ||||||||||
Exploratory well costs | 447,277 | 242,749 | ||||||||
Pre-development well costs | 13,972 | — | ||||||||
Capitalized interest | 5,685 | — | ||||||||
$ | 767,107 | $ | 451,024 | |||||||
Well costs capitalized for a period greater than one year after completion of drilling (included in table above) | $ | 286,968 | $ | 194,853 | ||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Long-term Debt | ||||||||||||||||||||
Schedule of the carrying amounts of the liability components of the Notes | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Principal | Unamortized | Carrying | Principal | Unamortized | Carrying | |||||||||||||||
Amount | discount(1) | Amount | Amount | discount | Amount | |||||||||||||||
($ in thousands) | ||||||||||||||||||||
Carrying amount of liability component | ||||||||||||||||||||
2.625% convertible senior notes | $ | 1,380,000 | $ | (355,555 | ) | $ | 1,024,445 | $ | 1,380,000 | $ | (388,809 | ) | $ | 991,191 | ||||||
-1 | ||||||||||||||||||||
Unamortized discount will be amortized over the remaining life of the Notes which is 6.25Â years. | ||||||||||||||||||||
Schedule of carrying amounts of the equity components of the Notes | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Debt discount relating to value of conversion option | $ | 390,540 | $ | 390,540 | ||||||||||||||||
Debt issue costs | (9,124 | ) | (9,124 | ) | ||||||||||||||||
Total | $ | 381,416 | $ | 381,416 | ||||||||||||||||
Schedule of interest expense | ||||||||||||||||||||
For the Period | ||||||||||||||||||||
November 10, | ||||||||||||||||||||
2005 | ||||||||||||||||||||
(Inception) | ||||||||||||||||||||
through | ||||||||||||||||||||
Three Months | Nine Months | September 30, | ||||||||||||||||||
Ended | Ended | 2013 | ||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Interest expense associated with accrued interest(1) | $ | 3,956 | $ | — | $ | 16,276 | $ | — | $ | 17,570 | ||||||||||
Interest expense associated with accretion of debt discount | 11,307 | — | 33,254 | — | 35,165 | |||||||||||||||
Interest expense associated with amortization of debt issue costs | 539 | — | 1,497 | — | 1,572 | |||||||||||||||
Total | $ | 15,802 | $ | — | $ | 51,027 | $ | — | $ | 54,307 | ||||||||||
-1 | ||||||||||||||||||||
The $4.0 million and $16.3 million for the three and nine months ended September 30, 2013, respectively, represent interest expense net of capitalized amount of $5.1 million and $10.9 million, respectively. | ||||||||||||||||||||
Contractual_Obligations_Tables
Contractual Obligations (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Contractual Obligations | ||||||||
Summary of components of short-term and long-term contractual obligations | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
($ in thousands) | ||||||||
Short-term Contractual Obligations: | ||||||||
Social obligation payments for Block 9, offshore Angola | $ | 150 | $ | 150 | ||||
Social obligation payments for Block 21, offshore Angola | 300 | 300 | ||||||
Social obligation and bonus payments for Block 20, offshore Angola(1) | 48,569 | 48,569 | ||||||
$ | 49,019 | $ | 49,019 | |||||
Long-term Contractual Obligations: | ||||||||
Social obligation payments for Block 9, offshore Angola | $ | 668 | $ | 848 | ||||
Social obligation payments for Block 21, offshore Angola | 1,382 | 1,684 | ||||||
Social obligation and bonus payments for Block 20, offshore Angola(1) | 122,851 | 165,706 | ||||||
$ | 124,901 | $ | 168,238 | |||||
-1 | ||||||||
The total amount of social obligation payments for Block 20 has been capitalized. See Note 7—Property, Plant, and Equipment. | ||||||||
Seismic_and_Exploration_Expens1
Seismic and Exploration Expenses (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Seismic and Exploration Expenses | |||||||||||||||||
Schedule of seismic and exploration expenses | |||||||||||||||||
For the Period | |||||||||||||||||
November 10, | |||||||||||||||||
2005 | |||||||||||||||||
(Inception) | |||||||||||||||||
through | |||||||||||||||||
Three Months | Nine Months | September 30, | |||||||||||||||
Ended | Ended | 2013 | |||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
($ in Thousands) | |||||||||||||||||
Seismic costs | $ | 13,461 | $ | 4,592 | $ | 34,548 | $ | 29,933 | $ | 376,596 | |||||||
Seismic cost recovery(1) | — | — | — | — | (25,126 | ) | |||||||||||
Leasehold delay rentals | 944 | 1,184 | 4,050 | 4,062 | 36,953 | ||||||||||||
Force Majeure expense(2) | — | — | — | — | 13,549 | ||||||||||||
Drilling rig and other exploration expenses | 150 | 551 | 2,832 | 1,687 | 29,631 | ||||||||||||
$ | 14,555 | $ | 6,327 | $ | 41,430 | $ | 35,682 | $ | 431,603 | ||||||||
-1 | |||||||||||||||||
This amount represents reimbursement from partners of past seismic costs incurred by the Company. | |||||||||||||||||
-2 | |||||||||||||||||
This amount represents expenditures resulting from suspension of drilling activities in the U.S. Gulf of Mexico as a result of the explosion and sinking of the Deepwater Horizon drilling rig in the U.S. Gulf of Mexico, the resulting oil spill and the regulatory response thereto and other exploratory expenses. | |||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Segment Information | |||||||||||
Schedule of segment information by geographic operating segment | |||||||||||
United States | West Africa | Total | |||||||||
($ in thousands) | |||||||||||
Three months ended September 30, 2013 | |||||||||||
Operating costs and expense | $ | 122,995 | $ | 22,668 | $ | 145,663 | |||||
Operating income (loss) | (122,995 | ) | (22,668 | ) | (145,663 | ) | |||||
Other income (expense) | (14,337 | ) | |||||||||
Net income (loss) | $ | (160,000 | ) | ||||||||
Additions to Property and Equipment, net(1) | $ | 1,329 | $ | 148,262 | $ | 149,591 | |||||
Three months ended September 30, 2012 | |||||||||||
Operating costs and expense | $ | (32,593 | ) | $ | (7,960 | ) | $ | (40,553 | ) | ||
Operating income (loss) | (32,593 | ) | (7,960 | ) | (40,553 | ) | |||||
Other income (expense) | 1,339 | ||||||||||
Net income (loss) | $ | (39,214 | ) | ||||||||
Additions to Property and Equipment, net(1) | $ | 42,851 | $ | 51,946 | $ | 94,797 | |||||
United States | West Africa | Total | |||||||||
($ in thousands) | |||||||||||
Nine months ended September 30, 2013 | |||||||||||
Operating costs and expense | $ | 167,817 | $ | 155,664 | $ | 323,481 | |||||
Operating income (loss) | (167,817 | ) | (155,664 | ) | (323,481 | ) | |||||
Other income (expense) | (43,424 | ) | |||||||||
Net income (loss) | $ | (366,905 | ) | ||||||||
Additions to Property and Equipment, net(1) | $ | 93,657 | $ | 230,212 | $ | 323,869 | |||||
Nine months ended September 30, 2012 | |||||||||||
Operating costs and expense | $ | (189,171 | ) | $ | (31,252 | ) | $ | (220,423 | ) | ||
Operating income (loss) | (189,171 | ) | (31,252 | ) | (220,423 | ) | |||||
Other income (expense) | 3,955 | ||||||||||
Net income (loss) | $ | (216,468 | ) | ||||||||
Additions to Property and Equipment, net(1) | $ | (7,438 | ) | $ | 170,235 | $ | 162,797 | ||||
-1 | |||||||||||
These amounts are net of accumulated allowance for impairment on oil and gas properties and accumulated depreciation and amortization on other property and equipment. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 17, 2012 | |
Segment | 2.625% convertible senior notes due 2019 | 2.625% convertible senior notes due 2019 | 2.625% convertible senior notes due 2019 | |||||
Summary of Significant Accounting Policies | ||||||||
Number of geographic segments | 2 | |||||||
Investments | ||||||||
Maximum term of maturity to classify highly liquid interest earning investments as cash equivalent | 3 months | |||||||
Minimum term of maturity to classify an investment as short-term investment | 3 months | |||||||
Maximum term of maturity to classify an investment as short-term investment | 1 year | |||||||
OTTI in debt securities | $0 | $0 | $0 | |||||
Earnings (Loss) Per Share | ||||||||
Shares of non-vested restricted stock, non vested restricted stock units, outstanding stock options and 2.625% convertible senior notes due 2019 excluded from the diluted income (loss) per share calculation | 6,744,278 | 6,744,278 | ||||||
Shares of non-vested restricted stock, non-vested restricted stock units and outstanding stock excluded from the diluted income (loss) per share calculation | 5,594,092 | 5,594,092 | ||||||
Earnings (Loss) Per Share | ||||||||
Interest rate (as a percent) | 2.63% | 2.63% | 2.63% | 2.63% |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Cash and Cash Equivalents | ||||
Cash at banks | $34,001 | $65,935 | ||
Money market funds | 89,497 | 1,105,148 | ||
Held-to-maturity securities | 97,014 | 254,732 | ||
Total | $220,512 | $1,425,815 | $126,770 | $292,546 |
Maturity period of held-to-maturity securities | 3 months | 3 months |
Restricted_Funds_Details
Restricted Funds (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted Funds | ||
Short-term restricted funds | $228,533 | $90,440 |
Long-term restricted funds | 166,701 | 395,652 |
Ensco 8503 escrow account | ||
Restricted Funds | ||
Short-term restricted funds | 90,315 | 90,440 |
Long-term restricted funds | 90,440 | |
Collateral on letters of credit for Angola | ||
Restricted Funds | ||
Short-term restricted funds | 138,218 | |
Long-term restricted funds | 166,529 | 304,492 |
Other vendor restricted deposits | ||
Restricted Funds | ||
Long-term restricted funds | $172 | $720 |
Joint_Interest_and_Other_Recei2
Joint Interest and Other Receivables (Details) (USD $) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 19, 2013 | Sep. 30, 2013 | Sep. 19, 2013 | Sep. 30, 2013 | Sep. 19, 2013 | Sep. 30, 2013 | Sep. 19, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Block 9, offshore Angola | Block 9, offshore Angola | Block 9, offshore Angola | Block 9, offshore Angola | Block 21, offshore Angola | Block 21, offshore Angola | Block 21, offshore Angola | Block 21, offshore Angola | Partners in the U.S. Gulf of Mexico | Partners in the U.S. Gulf of Mexico | Partners in West Africa | Partners in West Africa | Partners in West Africa | Partners in West Africa | |||
Sonangol P&P | Sonangol P&P | Sonangol P&P | Sonangol P&P | Block 20, offshore Angola | Blocks 9 and 21 offshore Angola | |||||||||||
Joint Interest and Other Receivables | ||||||||||||||||
Settlement period for bills under operating agreements | 30 days | |||||||||||||||
Joint Interest Receivables | ||||||||||||||||
Receivable attributable to joint interest partners | $45,663,000 | $52,439,000 | $53,223,000 | $2,185,000 | $30,600,000 | $22,600,000 | ||||||||||
Accrued interest on investment securities | 8,313,000 | 3,647,000 | ||||||||||||||
Vendors' receivables | 1,582,000 | 1,526,000 | ||||||||||||||
Other | 1,072,000 | 1,795,000 | ||||||||||||||
Total | 109,853,000 | 61,592,000 | ||||||||||||||
Joint interest and other receivables which became past due | $11,300,000 | |||||||||||||||
Percentage of working interest transferred | 15.00% | 15.00% | ||||||||||||||
Percentage of working interest held | 40.00% | 30.00% | 35.00% | 40.00% | 30.00% | 35.00% | ||||||||||
Percentage of working paying interest | 62.50% | 18.75% | 62.50% | 18.75% |
Investments_Details
Investments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments | ||
Fair market value | $1,913,854 | $1,564,441 |
Held-to-maturities, Carrying value | ||
Within 1 year | 1,713,257 | 1,528,174 |
After 1 year | 200,597 | 36,267 |
Total | 1,913,854 | 1,564,441 |
Held-to-maturity securities, Estimated fair value | ||
Within 1 year | 1,713,257 | 1,528,174 |
After 1 year | 200,597 | 36,267 |
Total | 1,913,854 | 1,564,441 |
Cash and cash equivalents | ||
Investments | ||
Fair market value | 97,014 | 254,732 |
Short-term restricted funds | ||
Investments | ||
Fair market value | 228,533 | 90,440 |
Short-term investments | ||
Investments | ||
Fair market value | 1,221,552 | 789,668 |
Long-term restricted funds | ||
Investments | ||
Fair market value | 166,158 | 393,334 |
Long-term investments | ||
Investments | ||
Fair market value | 200,597 | 36,267 |
U.S. Treasury securities | ||
Investments | ||
Fair market value | 394,690 | 483,775 |
Corporate securities | ||
Investments | ||
Fair market value | 936,183 | 510,691 |
Commercial paper | ||
Investments | ||
Fair market value | 512,981 | 562,975 |
Certificates of deposit | ||
Investments | ||
Fair market value | $70,000 | $7,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | $1,913,854 | $1,564,441 |
Fair Value | 1,913,854 | 1,564,441 |
Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 2,037,895 | 2,737,842 |
Cash and cash equivalents | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Fair Value | 97,014 | 254,732 |
Cash and cash equivalents | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 220,512 | 1,425,815 |
Cash and cash equivalents | Cash | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 34,001 | 65,935 |
Cash and cash equivalents | Money market funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 89,497 | 1,105,148 |
Cash and cash equivalents | Commercial paper | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 72,014 | 247,206 |
Cash and cash equivalents | Corporate bonds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 7,526 | |
Cash and cash equivalents | Certificates of deposits | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 25,000 | |
Short-term restricted funds | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Fair Value | 228,533 | 90,440 |
Short-term restricted funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 228,533 | 90,440 |
Short-term restricted funds | U.S. Treasury bills | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 90,315 | 90,440 |
Short-term restricted funds | U.S. Treasury notes | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 138,218 | |
Short-term investments | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Fair Value | 1,221,552 | 789,668 |
Short-term investments | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 1,221,552 | 789,668 |
Short-term investments | Commercial paper | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 440,966 | 315,769 |
Short-term investments | Corporate bonds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 735,586 | 466,898 |
Short-term investments | Certificates of deposits | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 45,000 | 7,001 |
Long-term restricted funds | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Fair Value | 166,158 | 393,334 |
Long-term restricted funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 166,701 | 395,652 |
Long-term restricted funds | Cash | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 172 | |
Long-term restricted funds | Money market funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 371 | 2,318 |
Long-term restricted funds | U.S. Treasury bills | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 178,216 | |
Long-term restricted funds | U.S. Treasury notes | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 166,158 | 215,118 |
Long-term investments | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Fair Value | 200,597 | 36,267 |
Long-term investments | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 200,597 | 36,267 |
Long-term investments | Corporate bonds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Total | 200,597 | 36,267 |
Level 1 | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 124,041 | 1,173,401 |
Fair Value | 124,041 | 1,173,401 |
Level 1 | Cash and cash equivalents | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 123,498 | 1,171,083 |
Fair Value | 123,498 | 1,171,083 |
Level 1 | Cash and cash equivalents | Cash | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 34,001 | 65,935 |
Fair Value | 34,001 | 65,935 |
Level 1 | Cash and cash equivalents | Money market funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 89,497 | 1,105,148 |
Fair Value | 89,497 | 1,105,148 |
Level 1 | Long-term restricted funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 543 | 2,318 |
Fair Value | 543 | 2,318 |
Level 1 | Long-term restricted funds | Cash | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 172 | |
Fair Value | 172 | |
Level 1 | Long-term restricted funds | Money market funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 371 | 2,318 |
Fair Value | 371 | 2,318 |
Level 2 | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 1,913,854 | 1,564,441 |
Fair Value | 1,913,854 | 1,564,441 |
Level 2 | Cash and cash equivalents | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 97,014 | 254,732 |
Fair Value | 97,014 | 254,732 |
Level 2 | Cash and cash equivalents | Commercial paper | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 72,014 | 247,206 |
Fair Value | 72,014 | 247,206 |
Level 2 | Cash and cash equivalents | Corporate bonds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 7,526 | |
Fair Value | 7,526 | |
Level 2 | Cash and cash equivalents | Certificates of deposits | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 25,000 | |
Fair Value | 25,000 | |
Level 2 | Short-term restricted funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 228,533 | 90,440 |
Fair Value | 228,533 | 90,440 |
Level 2 | Short-term restricted funds | U.S. Treasury bills | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 90,315 | 90,440 |
Fair Value | 90,315 | 90,440 |
Level 2 | Short-term restricted funds | U.S. Treasury notes | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 138,218 | |
Fair Value | 138,218 | |
Level 2 | Short-term investments | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 1,221,552 | 789,668 |
Fair Value | 1,221,552 | 789,668 |
Level 2 | Short-term investments | Commercial paper | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 440,966 | 315,769 |
Fair Value | 440,966 | 315,769 |
Level 2 | Short-term investments | Corporate bonds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 735,586 | 466,898 |
Fair Value | 735,586 | 466,898 |
Level 2 | Short-term investments | Certificates of deposits | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 45,000 | 7,001 |
Fair Value | 45,000 | 7,001 |
Level 2 | Long-term restricted funds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 166,158 | 393,334 |
Fair Value | 166,158 | 393,334 |
Level 2 | Long-term restricted funds | U.S. Treasury bills | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 178,216 | |
Fair Value | 178,216 | |
Level 2 | Long-term restricted funds | U.S. Treasury notes | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 166,158 | 215,118 |
Fair Value | 166,158 | 215,118 |
Level 2 | Long-term investments | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 200,597 | 36,267 |
Fair Value | 200,597 | 36,267 |
Level 2 | Long-term investments | Corporate bonds | Recurring basis | ||
Significant financial instruments as categorized by the fair value measurement hierarchy | ||
Carrying Value | 200,597 | 36,267 |
Fair Value | $200,597 | $36,267 |
Property_Plant_and_Equipment_D
Property, Plant, and Equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 95 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 95 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 26, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 26, 2013 | Dec. 20, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Garden Banks Block 822, Mississippi Canyon Block 605 and Walker Ridge Block 232 | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Unproved oil and gas properties, net | Exploratory wells in process | Exploratory wells in process | Computer equipment and software | Computer equipment and software | Office equipment and furniture | Office equipment and furniture | Office equipment and furniture | Office equipment and furniture | Vehicles | Vehicles | Leasehold improvements | Leasehold improvements | Leasehold improvements | Leasehold improvements | Running tools and equipment | |||||||
Mississippi Canyon Block 209 | Block 20 offshore Angola | Block 20 offshore Angola | Blocks 9 and 21 offshore Angola and Gabon | Blocks 9 and 21 offshore Angola | Diaba block offshore Gabon | U.S. Gulf of Mexico | Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||||||||||
Property, Plant, and Equipment | |||||||||||||||||||||||||||||||||||||
Estimated Useful Life | 3 years | 3 years | 5 years | 3 years | 3 years | 10 years | 5 years | ||||||||||||||||||||||||||||||
Unproved oil and gas properties | $754,909,000 | $754,909,000 | $721,853,000 | $754,909,000 | |||||||||||||||||||||||||||||||||
Less: accumulated valuation allowance | -110,017,000 | -110,017,000 | -78,413,000 | -110,017,000 | |||||||||||||||||||||||||||||||||
Total oil and gas properties, net | 1,411,999,000 | 1,411,999,000 | 1,094,464,000 | 1,411,999,000 | 644,892,000 | 644,892,000 | 644,892,000 | 644,892,000 | 643,440,000 | 767,107,000 | 451,024,000 | ||||||||||||||||||||||||||
Property, plant, and equipment, gross | 15,492,000 | 15,492,000 | 7,825,000 | 15,492,000 | 4,386,000 | 3,166,000 | 2,132,000 | 2,093,000 | 265,000 | 268,000 | 2,392,000 | 2,298,000 | 6,317,000 | ||||||||||||||||||||||||
Less: accumulated depreciation and amortization | -3,865,000 | -3,865,000 | -2,533,000 | -3,865,000 | |||||||||||||||||||||||||||||||||
Total other property and equipment | 11,627,000 | 11,627,000 | 5,292,000 | 11,627,000 | |||||||||||||||||||||||||||||||||
Total property, plant, and equipment, net | 1,423,626,000 | 1,423,626,000 | 1,099,756,000 | 1,423,626,000 | |||||||||||||||||||||||||||||||||
Old computer equipment and leasehold improvements written off during the period | 2,200,000 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 440,000 | 269,000 | 1,345,000 | 782,000 | 6,097,000 | ||||||||||||||||||||||||||||||||
Percentage of working interest acquired | 40.00% | 40.00% | 21.25% | ||||||||||||||||||||||||||||||||||
Consideration for the acquisition | 347,100,000 | ||||||||||||||||||||||||||||||||||||
Consideration payable over five years on acquisition | 337,100,000 | ||||||||||||||||||||||||||||||||||||
Period over which consideration is payable | 5 years | ||||||||||||||||||||||||||||||||||||
Consideration paid on acquisition | 37,600,000 | 165,700,000 | |||||||||||||||||||||||||||||||||||
Short-term and long-term contractual obligations | 171,400,000 | ||||||||||||||||||||||||||||||||||||
Unproved | 10,800,000 | ||||||||||||||||||||||||||||||||||||
Unproved property acquisition costs, net of valuation allowance, relating to properties offshore | 287,000,000 | ||||||||||||||||||||||||||||||||||||
Total consideration for the sale | 5,600,000 | ||||||||||||||||||||||||||||||||||||
Consideration for the sale received at closing date | 1,500,000 | ||||||||||||||||||||||||||||||||||||
Additional consideration for the sale receivable on commencement of operations | 1,500,000 | ||||||||||||||||||||||||||||||||||||
Contingent consideration for the sale to be receivable on commencement of production | 2,600,000 | ||||||||||||||||||||||||||||||||||||
Gain on sale of assets | 2,993,000 | 2,993,000 | 3,000,000 | ||||||||||||||||||||||||||||||||||
Lower limit of unproved leasehold costs assessed individually for impairment | 1,000,000 | ||||||||||||||||||||||||||||||||||||
Upper limit of unproved leasehold costs on individual properties included in group amortization | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||||||||
Carrying amount of unproved properties subject to amortization before impairment provision | 69,400,000 | 69,400,000 | 69,400,000 | 69,400,000 | 69,100,000 | ||||||||||||||||||||||||||||||||
Lease impairment allowance | $31,300,000 | $2,300,000 | $36,100,000 | $57,800,000 | $114,700,000 |
Property_Plant_and_Equipment_D1
Property, Plant, and Equipment (Details 2) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Beginning of period | $451,024 | $178,338 |
Addition to capitalized exploratory and development costs | 176,100 | |
Amounts charged to expense | -176,068 | -73,918 |
End of period | 767,107 | 451,024 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 767,107 | 451,024 |
Well costs capitalized for a period greater than one year after completion of drilling | 286,968 | 194,853 |
Mavinga #1 Exploratory Well | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Amounts charged to expense | -12,500 | |
Diaman #1 Exploratory Well | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Amounts charged to expense | -17,100 | |
Cameia #2 Drill Stem Test | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Amounts charged to expense | -82,400 | |
Ligurian #1 Exploratory Well | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Amounts charged to expense | -8,100 | |
Shenandoah #2 Appraisal Well | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Amounts charged to expense | -12,700 | |
Ligurian #2 Exploratory Well | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Amounts charged to expense | -49,000 | |
Heidelberg #3 Appraisal Well Side Track | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Amounts charged to expense | -4,100 | |
Ardennes #1 Exploratory Well | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Amounts charged to expense | -64,100 | |
U.S. Gulf of Mexico | Exploratory well costs | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Beginning of period | 208,275 | |
Addition to capitalized exploratory and development costs | 111,724 | 178,295 |
End of period | 215,395 | 208,275 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 215,395 | 208,275 |
U.S. Gulf of Mexico | Development and pre-development well costs | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Addition to capitalized exploratory and development costs | 39,084 | |
End of period | 79,572 | |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 79,572 | |
U.S. Gulf of Mexico | Capitalized interest | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Addition to capitalized exploratory and development costs | 5,206 | |
End of period | 5,206 | |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 5,206 | |
West Africa | Exploratory well costs | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Beginning of period | 242,749 | |
Addition to capitalized exploratory and development costs | 320,464 | 168,309 |
End of period | 447,277 | 242,749 |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 447,277 | 242,749 |
West Africa | Capitalized interest | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Addition to capitalized exploratory and development costs | 5,685 | |
End of period | 5,685 | |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 5,685 | |
West Africa | Pre-development well costs | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Addition to capitalized exploratory and development costs | 9,988 | |
End of period | 13,972 | |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | 13,972 | |
West Africa | Mavinga #1 Exploratory Well | ||
Net changes in capitalized exploratory well costs (excluding any related leasehold costs) | ||
Addition to capitalized exploratory and development costs | 116,000 | |
End of period | 103,500 | |
Cumulative costs of capitalized exploratory well costs (excluding any related leasehold costs) | ||
Cumulative costs | $103,500 |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 9 Months Ended | 95 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 17, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Notes | Notes | Notes | ||||
Debt instrument | ||||||
Aggregate principal amount of notes issued | $1,380,000,000 | |||||
Interest rate (as a percent) | 2.63% | 2.63% | 2.63% | 2.63% | ||
Interest paid | 16,502,000 | 16,502,000 | 16,500,000 | |||
Initial conversion rate of common stock | 0.028023 | |||||
Initial conversion price per share of common stock (in dollars per share) | $35.68 | |||||
Number of underlying shares that the holder of the debt instrument would receive upon conversion | 38.7 | |||||
Repurchase price as a percentage of principal amount of debt instrument | 100.00% | |||||
Specified minimum percentage of principal amount, the holders of which may declare all principal, accrued and unpaid interest to be due and payable immediately, upon the occurrence of an Event of Default | 25.00% | |||||
Percentage of principal amount, which may be declared by holders of a specified principal amount to be due and payable immediately upon occurrence of an Event of Default | 100.00% | |||||
Fair value of the notes excluding conversion feature at the date of issuance | 989,500,000 | |||||
Effective interest rate used to amortize liability component of debt issue costs (as a percent) | 8.40% | |||||
Debt issue cost | 32,200,000 | |||||
Debt issue cost allocated to the liability component | 23,100,000 | |||||
Debt issue cost allocated to the equity component | 9,100,000 | 9,124,000 | 9,124,000 | |||
Carrying amounts of the liability components | ||||||
Principal Amount | 1,380,000,000 | 1,380,000,000 | ||||
Unamortized discount | -355,555,000 | -388,809,000 | ||||
Carrying amount of the liability components | 1,024,445,000 | 1,024,445,000 | 991,191,000 | 1,024,445,000 | 991,191,000 | |
Remaining term of debt | 6 years 3 months | |||||
Carrying amounts of the equity components | ||||||
Debt discount relating to value of conversion option | 390,540,000 | 390,540,000 | ||||
Debt issue costs | -9,100,000 | -9,124,000 | -9,124,000 | |||
Carrying amount of the equity components | 381,416,000 | 381,416,000 | ||||
Fair value of the notes excluding conversion feature | $1,028,800,000 | $989,500,000 |
Longterm_Debt_Details_2
Long-term Debt (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 95 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Long-term Debt | |||
Interest expense associated with accrued interest | $3,956,000 | $16,276,000 | $17,570,000 |
Interest expense associated with accretion of debt discount | 11,307,000 | 33,254,000 | 35,165,000 |
Interest expense associated with amortization of debt issue costs | 539,000 | 1,497,000 | 1,572,000 |
Total | 15,802,000 | 51,027,000 | 54,307,000 |
Capitalized interest costs | $5,100,000 | $10,900,000 |
Contractual_Obligations_Detail
Contractual Obligations (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Contractual obligations | ||
Short-term Contractual Obligations: Social obligation payments | $49,019 | $49,019 |
Long-term Contractual Obligations: Social obligation payments | 124,901 | 168,238 |
Block 9, offshore Angola | ||
Contractual obligations | ||
Short-term Contractual Obligations: Social obligation payments | 150 | 150 |
Long-term Contractual Obligations: Social obligation payments | 668 | 848 |
Block 21, offshore Angola | ||
Contractual obligations | ||
Short-term Contractual Obligations: Social obligation payments | 300 | 300 |
Long-term Contractual Obligations: Social obligation payments | 1,382 | 1,684 |
Block 20, offshore Angola | ||
Contractual obligations | ||
Short-term Contractual Obligations: Social obligation payments | 48,569 | 48,569 |
Long-term Contractual Obligations: Social obligation payments | $122,851 | $165,706 |
Seismic_and_Exploration_Expens2
Seismic and Exploration Expenses (Details) (USD $) | 3 Months Ended | 9 Months Ended | 95 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Seismic and Exploration Expenses | |||||
Seismic costs | $13,461 | $4,592 | $34,548 | $29,933 | $376,596 |
Seismic cost recovery | -25,126 | ||||
Leasehold delay rentals | 944 | 1,184 | 4,050 | 4,062 | 36,953 |
Force Majeure expense | 13,549 | ||||
Drilling rig and other exploration expenses | 150 | 551 | 2,832 | 1,687 | 29,631 |
Total seismic and exploration expenses | $14,555 | $6,327 | $41,430 | $35,682 | $431,603 |
Equity_Based_Compensation_Deta
Equity Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 95 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Number of Stock Options | |||||
Equity based compensation expense, net of forfeitures recognized | $6,500 | $4,700 | $18,795 | $16,650 | $79,501 |
Restricted Stock | |||||
Number of shares relating to award | |||||
Granted (in shares) | 605,940 | ||||
Restricted Stock | Non-employee directors | |||||
Number of shares relating to award | |||||
Granted (in shares) | 34,833 | ||||
Retainer awards | Non-employee directors | Common Stock | |||||
Number of shares relating to award | |||||
Granted (in shares) | 11,056 | ||||
Stock options | |||||
Number of Stock Options | |||||
Granted (in shares) | 959,023 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 86 Months Ended | 95 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 |
Segment | ||||||
Segment Information | ||||||
Number of geographic operating segments | 2 | |||||
Segment Information | ||||||
Operating costs and expense | $145,663 | $40,553 | $323,481 | $220,423 | $1,263,079 | |
Operating income (loss) | -145,663 | -40,553 | -323,481 | -220,423 | -1,263,079 | |
Other income (expense) | -14,337 | 1,339 | -43,424 | 3,955 | -31,661 | |
Net income (loss) | -160,000 | -39,214 | -366,905 | -216,468 | -927,835 | -1,294,740 |
Additions to Property and Equipment, net | 149,591 | 94,797 | 323,869 | 162,797 | ||
United States | ||||||
Segment Information | ||||||
Operating costs and expense | 122,995 | -32,593 | 167,817 | -189,171 | ||
Operating income (loss) | -122,995 | -32,593 | -167,817 | -189,171 | ||
Additions to Property and Equipment, net | 1,329 | 42,851 | 93,657 | -7,438 | ||
West Africa | ||||||
Segment Information | ||||||
Operating costs and expense | 22,668 | -7,960 | 155,664 | -31,252 | ||
Operating income (loss) | -22,668 | -7,960 | -155,664 | -31,252 | ||
Additions to Property and Equipment, net | $148,262 | $51,946 | $230,212 | $170,235 |